PVR Ltd.'s Growth and Future Prospects
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Case Code : MKTG127
Case Length : 20 Pages
Period : 1995-2005
Organization : -
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Industry : Film Exhibition Industry
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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PVR was responsible for redefining cinema viewing in India. It made a trip to the movies a complete family outing and included other facilities like food joints, shopping, and games in its multiplexes keeping in view the needs and interests of its target audience - families, youth, and kids. The company tried to make watching movies in its multiplexes an exciting experience for the customer.
PVR multiplexes were mostly located in shopping malls. With the intention of increasing footfalls, shopping malls invited multiplex operators like PVR to set up multiplexes in their premises. PVR, too, benefited from the arrangement because the shopping malls were usually located in prime areas in cities and attracted huge crowds. PVR, with its enticing movie posters and banners, attracted the shoppers to watch movies...
PVR multiplexes provided, for the first time in India, a comfortable stadium-like seating which allowed customers to watch movies without the viewers in the front row obstructing their view. PVR also installed digital sound systems, better air-conditioning, carpeting, and plush interiors. It introduced luxury cinema halls under the sub-brand, Cinema Europa in Gurgaon in May 2003, and in Bangalore in November 2004.
Cinema Europa theaters were luxurious cinema halls with reclining seats, double arm-rests, ample leg room to provide a relaxed cinema experience, and business class treatment. The Europa theater was complemented by the 'Europa Lounge', an island bar and restaurant furnished with plush leather seats and special lighting reflecting a contemporary ambience. Customers were served cocktails and could enjoy music played by an in-house DJ.
PVR also brought in the concept of ultra premium cinemas with PVR Gold Class in PVR Bangalore - a hall with 32 reclining seats providing a lavish cinema viewing experience with personalised service. The audience was pampered with meals and snacks served at their seats while they enjoyed their movies (Refer Exhibit III for PVR's Firsts)...
New Initiatives of PVR
PVR didn't limit itself to the cinema exhibition business. The company entered areas which offered it synergies in the business of entertainment. PVR ventured into film distribution, franchising, and managing multiplexes. It also had plans to enter film production. These ventures were expected to strengthen PVR in its existing exhibition business...