PVR, a pioneer and a trailblazer in Multiplex development in India, is the

largest cinema exhibition player in the country today. The company began its commercial operations in June 1997 with the launch of PVR Anupam in Saket, India's first multiplex. By introducing the multiplex concept in the country PVR Cinemas brought in a whole new paradigm shift to cinema viewing experience, high class seating, state of the art screens and audio visual systems. This catapulted the company to command a significant presence in New Delhi, where it currently operates 25 screens. The latest addition being the threescreen multiplex, SRS-PVR, in Faridabad.

PVR SOUTH DELHI

Since its inception, the four-screen multiplex in Saket has broken many national records in cinema exhibition in the country. The Cinema can boast of the highest box office collections in India for five consecutive years since its opening. Located around the Cinema in the same complex are a number of up-market restaurants, pubs and fast-food eateries that make it a popular youth hangout place and indeed an entertainment experience for the entire family. PVR Priya, a 25-year-old cinema still considered the best Cineplex in Delhi, was completely renovated and brought into the fold of PVR in January 2000. PVR Priya boasts of the highest box office collections in the city of Delhi after PVR Saket

PVR WEST DELHI

Following the tremendous success in South Delhi, PVR expanded to West Delhi in 2001 with the launch of two new multiplexes -- PVR Naraina, and PVR Vikaspuri. PVR Naraina, with four screens and 830 seats, was launched in August 2001. PVR Vikaspuri (3 screens, 921 seats) was launched in November 2001

PVR GURGAON
Introducing a luxurious cinema viewing experience with Cinema Europa In May 2003, PVR Cinemas opened North India's largest multiplex - a 7-screen cinema in Gurgaon. Built over an area of 55000sq ft, this multiplex has an avant-garde lobby with studio effect interiors and currently offers a seating capacity of 1300 seats. PVR Gurgaon has also been instrumental in bringing world class cinema viewing experience to the discerning Indian audience. Two luxurious auditoriums called Cinema Europa' have been custom built with vibrant red, plush reclining seats, double armrests and ample legroom offering patrons a comfortable and relaxed cinema viewing environment. The choice of movies played at the Europa is an eclectic mix of tastefully chosen niche Indian films, internationally acclaimed as well as Oscar winning Hollywood films. In addition to the luxury environs of the auditorium, the patrons enjoy a red carpet treatment with preferential access to the bar and restaurant, Europa Lounge'

PVR IN FARIDABAD
Keeping in line with PVR's commitment towards offering best quality cinema viewing, in May 2004, the company inaugurated its sixth multiplex, PVR Faridabad. Located at the popular Ansal Crown Plaza in Faridabad, this two-screen multiplex has a total seating capacity of 522 seats. It is the first of its kind in Faridabad

PVR IN THE HEART OF DELHI

Another addition to the PVR Group is re-opening of Delhi's oldest and most popular cinema hall, Plaza; now known as PVR Plaza. With a seating capacity of 300 seats, the all new single screen auditorium has been renovated and refurbished to bring back its former glory. The cinema, unique in its nature, combines the look and feel of the 50s with the stateof-the-art cinema viewing technologies of today

UNVEILING INDIAS LARGEST MULTIPLEX

Maintaining its leadership as the largest cinema exhibitor in the nation, PVR Cinemas has recently opened India's biggest multiplex (11 screens) in Bangalore. With the opening of PVR Bangalore, the company currently operates 36 screens across the nation. Built over 1,20,000 sq ft of space, this state-of-the-art multiplex is located in the heart of Bangalore at the

Forum Mall in Koramangla. With a seating capacity of 2019 seats the PVR Bangalore will screen movies from regional, hindi and world cinema. This 11 screen multiplex includes two ultra premium cinemas known as the Gold Class and two luxurious auditoriums called Cinema Europa in addition to seven Classic auditoriums. Gold Class Cinemas introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with 32 plush fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages. After the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced the concept of luxury viewing to Bangalore as well. One can expect the very best in world and local cinema to be screened here. In addition, patrons can pamper themselves with delicious food and beverages at the Europa Lounge.

The Growth
PVR FIRST
In a landmark move, PVR Limited (operating as PVR Cinemas) has successfully raised private equity from ICICI Venture as part of funding to support its Rs 100 crore expansion plan. ICICI Venture has invested Rs 38 crore in PVR Limited, the balance coming by way of Rs 40 crore debt funding, and the rest in accruals. This represents the most significant investment in the Indian cinema industry in recent times and bears testimony to the immense faith ICICI has reposed in the business model, promoters and management team of PVR. Announcing the equity partnership with ICICI Venture, Ajjay Bijli, Managing Director, PVR Limited, said, "It is a matter of great pride for us that PVR has been recognised by the financial community as a sound business and funding opportunity. This significant development adds to the long list of pioneering initiatives spearheaded by PVR to successfully institutionalise entertainment business in the country. We are confident that the equity partnership with ICICI Venture will help us rapidly realise our ambition of taking cinema exhibition of international standards across the country."

PVR PICTURES
PVR has also ventured into the business of film distribution and set up PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in acquisition and local distribution of films. This is a strategic business unit aimed at solidifying PVR's exhibition growth and strength. To date, PVR Pictures has successfully released films produced by US-based production house Miramax such as Chicago. PVR Pictures has also signed a 50:50 joint venture with Ram Gopal Verma's Verma Corporation Limited/ K Sera Sera's production company Factory'. The new venture, titled PVR/Factory' operates under the PVR Pictures entity and has exclusive distribution rights in Delhi, Uttar Pradesh and Uttranchal.

Accolades
PVR Cinemas proudly boasts of its hard earned achievements and accolades. In recognition of the successes and pioneering efforts of PVR Limited, Ajjay Bijli, Managing Director, PVR Limited, was conferred The Theatre World Newsmaker of the Year Award for 2003'. It is his vision and outstanding contribution to the cinema exhibition industry that has made PVR the largest cinema exhibition company in the country today. Mr. Manmohan Shetty of Managing Director of Adlabs and Chairman of NFDC presented the award to him, at a glittering ceremony organized as part of the FRAMES 2004 in Mumbai. It has been PVR Cinemas' constant endeavor to provide its patrons a luxurious cinema viewing experience. Not only does PVR give importance to the choice of movies that are screened but it also focuses on providing a safe and comfortable ambience. Keeping with this, PVR Gurgaon was nominated for an award in the Best Retail Environment category at the prestigious Annual Design Week awards. What is yet another achievement is that PVR Cinemas has been invited by CineAsia for a special award. Mr Ajjay Bijli has been invited to Bangkok and will be honoured with a special award during CineAsia 2004 for his significant contribution to the multiplex industry of India. For the first time, CineAsia will be honouring an Indian exhibitor.

The Market Share

Committed to deliver the best quality cinema viewing experience to its patrons, PVR is currently the largest cinema exhibition player in the country, operating four cinema complexes in city of Delhi, enjoying the largest market share in the capital. The company is due to open India's largest cinema complex, a seven-screen multiplex in Gurgaon, the fastest growing suburb in Delhi. Further PVR is also developing an 11- screen multiplex in Bangalore and is planning to set up several new multiplexes in Mumbai including sites already signed up at Juhu (5 screens), Goregoan (10 screens), Phoenix Mills (10 screens), and two more sites of 5 and 10 screens each. Living up to its reputation of constant innovation PVR plans to introduce internationally acclaimed concepts in these multiplexes, which will herald a paradigm shift in cinema going in India. Talking on the occasion, Renuka Ramnath, Managing Director and Chief Executive Officer, ICICI Venture, said, "The entertainment industry is one of the focus sectors for our India Advantage Fund. We believe that the cinema industry is in the midst of a transformation and this creates an opportunity for strong players to consolidate and appropriate disproportionate value and grow the market. Given its depth of experience, the strength of its management team and its brand equity, PVR is best placed to extract maximum benefit from the multiplex revolution and emerge as the leading national chain of cinemas." ICICI Venture will make the investment in PVR from the Rs 7.5 billion (USD 150 Million) India Advantage Fund. The Fund invests in growth sectors and funds companies for expansions, acquisitions and restructuring. PVR is committed to building and managing state-of-the-art cinema complexes, which will serve the increasingly sophisticated cinema market as world-class entertainment destinations. The company's expertise and experience in site selection, technical and interior design, marketing, programming, customer service and management places it in a prime position to capitalise in the anticipated growth in the cinema market nationwide. PVR's brand equity in the Indian cinema industry is second to none, and has been built up over 7 years of successful and profitable operation in Delhi.

PVR also recently set up a film acquisition arm to augment its core business of cinema exhibition. The distribution business, trading as PVR Pictures, specialises in the buying and distribution of English language independent films across the country. The company has identified this as an area of growth as the Indian audiences become more discerning in their viewing demands. The company's most recent release was multiple Oscar winning "Chicago", which garnered six Academy Awards including Best Motion Picture. About ICICI Venture ICICI Venture is the leading private equity and venture fund management company in India with aggregate funds currently under management in excess of Rs 20 billion (USD 400 million). Over the past 15 years, ICICI Venture has followed the philosophy of being a multi-sector player and it believes that in the Indian context, such a strategy ensures an optimum balance of risk and return to its investors.

The Entertainment

Industry
The last decade has seen the Indian entertainment industry grow exponentially. The key drivers for this have been technology and the governments recognition of the importance of the sector. The stage is now set for further evolution with a trend towards convergence, adding a new dimension to entertainment. The industry is expected to grow at a CAGR of 27 per cent. Revenues are projected to increase to US$ 10 billion in 2005 from 3 billion in 2002. India is one of the most media-exposed countries when compared to its Asian counterparts due to its size and consequently a large consumer base. Films The Indian film industry is largest in the world in terms of number of movies produced. India produces 800-900 movies every year in 52 languages and provides direct and indirect employment to 5 million people. The film Sector is one of the oldest industry in India. The first commercially successful film was made in 1913. The exports of Indian films in the last few years have seen a dramatic upward swing with the export earning for the year 2001-02 being in the region of Rs. 9 billion. The Government of India has accorded industry status to the film industry and FIIs are formulating funding mechanisms for financing films. Recently some major film projects have received funding from FIIs and banks. Many large production houses are embracing a corporate structure and there is a trend towards adopting a professional approach in producing and marketing films in India and overseas.

Galloping growth ahead for Entertainment industry

Overseas release of films, along with that in Indian theatres, is likely to emerge as a norm next year. While making this projection, head of media and entertainment practice at Ernst & Young Farokh Balsara told that more and more producers are going to go for it during 2005. The trend has already taken off. Around 40% of Veer Zaaras revenue came from the overseas market this year, according to Mr Balsara. Out of the 15 movies which saw simultaneous release in local and international markets, seven performed really well And that should be an impetus for others, too. While the industry is cashing in on Indian movies popularity across international markets, desi consumption is also rising. Heres how. Consumer spending on entertainment is expected to touch 6.5% in 2005, up from 4%. An upswing is likely in other segments of the media and entertainment sector as well. That includes advertising and subscription revenues on television, foreign investment flow, and even the number of IPOs. While TV advertising revenues are likely to cross the Rs 5000 mark, subscription may earn up to Rs 12,000 crore next year, Currently, TV advertising and subscription revenues are estimated at Rs 4,400 crore and Rs 10,000 crore, respectively. As for FDI, launch of Disney channels is seen as the biggest story so far, besides the inflow into print media companies. In 2005, FDI is expected in the gaming segment, besides the more traditional content, distribution and print media firms, according to additional director of Ficci Siddharth Dasgupta. On the IPO front, a couple of TV and film companies are expected to be active, an industry insider says. Shringar and UTV are among the names doing the rounds. IPO action is likely to pick up in two areascontent/programming and print media. Significantly, along with the overseas thrust, the film industry is also set to witness a technology boom. Greater infusion of technology will be a definite phenomenon in 2005, be it for digital cinema, Imax format or multiplex entertainment zones, . Also, the vertical integration between production, distribution and exhibition of films will continue,. But its not all good news all through. Piracy, for example, would remain a challenge next year too. No big Hollywood companies are likely to invest unless piracy issues are resolved, . Also, in television, regulatory issues will continue to dominate next year. Addressability and transparency in the system will be significant too for

an increase in subscription revenue, as more and more channels are launched and the ad pie shrinks, indicates an industry expert. Agrees Pricewaterhouse Coopers leader (entertainment and media practice) Deepak Kapoor. The industry awaits the governments nod on recommendations on the broadcasting services by the Telecom Regulatory Authority of India (TRAI), which will pave the way for addressability, Mr Kapoor said. As for other segments, Mr Kapoor says: Licensing norms for FM radio are still being mulled over by the government. And the film industry is hoping for another round of rationalisation of entertainment taxes. While on music, look beyond CDs and cassettes, seems to be the mantra. One must focus on models like ringtone and I-tune to shore up fortunes. However, the physical delivery format will remain important in India.

Multiplexes and INDIA

The main issues in Business of Entertainment: 1. The changes facing the 50-year-old distribution network across 12,000 odd theatres. 2. The effect of the failure of the 90 % of the films on the theatres that run them. 3. How are new releases being planned? 4. The trend to catch the weekend business rather than to go in for the Silver and Golden jubilees. 5. The proposal to have a uniform entertainment tax across the country 6. The grant of income tax concessions to multiplexes. 7. The impact of new Digital Technology in Film Exhibition & growth of multiplexes.

Current Scenario
General overview of the industry, in comparison with what was happening around the world. The current status of the infrastructure as it exists. The reasons, in his perception of the state of affairs and some suggestions. The details of each of the above were: OVERVIEW 1. Though the Indian entertainment industry had been growing @ 33 % for the last few years, the number of screens had gone down,

attendance had decreased and box office collections had reduced in real terms. 2. In comparison, during the 90's - directly due to the growth of Multiplexes - the number of screens had increased by 100 %, attendance levels by 150 %, and box office collections by 200 %. 3. He supported the above with statistics for the 90's as under: Attendance in Box ffice per capita collections in visits per million dollars annum 285 to 729 2.5 to 4.7 1.8 to 4.3 0.2 to 0.4 38 to 109 0.64 to 2.63 Rs. 21 to 36 billion*

Country Australia

No. Of Screens 850 to 1800

NewZealan 140 to 320 d Thailand India 180 to 410

13,1010 to 11,272 5.25 to 3.56

*The CAGR of 5.6 % is much lower than the inflation rate, so in real terms there has been a decrease.

EXISTING INFRASTRUCTURE
Characterized by four attributes, namely: 1. Inadequate number of screens. As per a UNESCO report India should have 20,000 screens. Further, most of the developed countries had 40 to 110 screens per million population, whereas in India the number was only 11. 2.Mostly single standalone screens. Could not take advantages of the Multiplex concept to make the theatre more viable. 3. Outdated facilities and technology. General ambience was run down, poor facilities and comfort, shabby interiors, improper seating and run-down air-conditioners 4.Absence of professional management. The film exhibition industry was generally unorganized; most players were proprietors, partnerships, or sole trading concerns.

C. REASONS FOR THE STATE OF AFFAIRS

1. Investor unfriendly fiscal regulations.

 Prohibitively high level of entertainment tax - six states charged more than 100 per cent. In comparison, in Australia & Hong Kong it was zero percent & in Japan and Singapore it was at 3 percent. Different rates of tax. Different methods of computing the tax. Some states had restrictions on free ticket pricing.

2. Very high capital costs. Real estate in India was very expensive. (almost twice as much) Critical equipment's import cost was 50 to 80 % higher than elsewhere. 3. Archaic regulatory provisions (some points were) Multiplicity of regulations: Nearly 17 central Acts, 50 state level Acts, about 75 state level regulations and more than 100 city level development control regulations. Archaic regulations: many were 50 years old. Different regulations from state to state. Conflict between different regulations/acts. Location criteria were discretionary. Licenses were not transferable. Regulations stipulate requirements that were not modern. Most regulations did not account for the concept of Multiplexes. License to operate could be denied in public interest. Regulations required tickets to be sold only at box office. Tickets needed to be preprinted and pre approved. Cinemas could not be put to any other use.

Some recommendations :
Standardize entertainment rates to reasonable levels. Modernize, rationalize, and standardize cinema regulations. Extend the I-Tax holiday to Metros. Provide enhanced depreciation in line with the hotel industry. Reduce customs duties on imported equipment. He concluded by listing the advantages to each segment: Industry: Business becomes viable, more cinemas were set up, more outlets for films, particular regional, small budget films, longer runs for commercial films, overall improved viability led to more films being produced.

Society: More entertainment options were available, increased employment opportunity in the exhibition sector; spin off benefits in the production center. Government: more cinemas meant higher box office collections, meant higher tax collections.

Some sugestions by key MULTIPLEX owners of the country

Mr. Jim Patterson, Vice President, IMAX, South East Asia & India, had opened their first large screen theaters in India, and drawing a parallel from the 1000 such theaters in Canada, was looking to a much greater potential in India, with its much larger population. He explained the fundamental difference of the IMAX form as: They have three types of theaters with very large screens: 1. A flat screen 2D theater 2. A curved screen 2 D Dome theater. 3. The IMAX at Mumbai has a 30-meter Dome - the largest in the world. A 3D theater The film Format was also very large. Each frame was almost 10 times than the conventional 35 mm film for the regular cinema. The film was therefore shot with special large cameras. IN case of 3D film, they were shot with 2 cameras. The film projection was also through very large projectors. They used the world's lightest light bulb of 15 kilowatt, so that the images were not only larger but also sharper, clearer & brighter. IMAX had 230 theaters worldwide, and after the first one in Mumbai their plans for India were (eventually at least 10 in the next 3 years): A 3 D theater in Ahmedabad by May. The next in Hyderabad by November - also a 3D. Bangalore is being planned next. And, several more in other cities alongwith the Zee TV group. He gave a brief history of the growth of the large format film that began in Hollywood, when Disney acquired "Fantasia 200" about three years ago, and grossed an all time high of 75 million US dollars on 64 screens only (this was much higher than the Titanic on a per screen basis). Elaborating that the large screen format was moving away from the traditional educational, documentary style of movies, he listed some recent and proposed Hollywood releases - both in the 2D and the 3 D genre. Very significantly, Disney was planning to release around

November, Treasure Planet, both on the 35 mm and the large screen format simultaneously. He also shared the recent technological developments, where, they had successfully converted a regular 35 mm film to the large Film format without having to re-shoot the film. This was a major breakthrough, as it would reduce the costs, and was very fast, and would enable them to redo the classic blockbusters in the IMAX format. He was confident that the studios were also going to like the large Format, since the higher ticket sales gives them a higher return - as a percentage of the ticket sale. He concluded by saying that with the shift towards mainstream entertainment, and the technological progress enabling Hollywood and Bollywood blockbusters to be brought to the viewer, no one would complain about the extra Rs.50.00 to be paid for the IMAX experience. Mr. Shravan Shroff, Director, Shringar Films Pvt. Ltd, proposed to cover some of the changes that multiplexing as well as renovated theaters would make on the distribution business. He defined distribution very simply as "about bringing your favorite movie to a cinema hall near you". The Distributor, being the link between the producer and the exhibitor had to put up the money to acquire the rights, market the product, and recover his expenses from the exhibitor. In the West, some major studios operated in all the three segments (e.g. Sony), and a similar trend was emerging in India, particularly in the last two segments. He emphasized that the growth of multiplexes and the renovation of the smaller size theatres was good for the consumer and the distributor, as better quality movies were getting a wider exposure e.g. the release of Monsoon Wedding. In the case of the Metro's, the objective had been to get the exhibition and distribution to a localized community. This eliminated the need for the consumer to travel 15 kms to and fro to reach the Theater. Distribution also had to consider the importance of the Niche audience on the national level. Certain movies that would work in certain parts of the country would not work in certain other parts of the country. A very good example of this being Hyderabad Blues & Dil Chahta Hai. As another extreme, he spoke of the crossover movies, e.g. DDDLJ, HAHK, which would do well, irrespective of the region, and the distributor had to recognize that and market accordingly. At the same time, there were very small niche movies that needed to be released selectively and the advent of multiplexes or renovated theatres was actually helping in this regard. Similarly dubbed foreign films could also be released to a niche audience. He also spoke on a new form of piracy which had recently been detectedat two small rural centers - where the licensed exhibitor did not screen

the actual print from the distributor, but had put up a LCD projector, and was screening the pirated copy illegally on the same premises - using the marketing material from the distributor, as well as issuing tickets at the box office. Regarding Territorial descriptions followed by the trade, he agreed that the industry needed to do some very serious work to re-draw the territorial map and do away with terms like CP, Nizam, and East Punjab, which had no bearing to the actual Geography. MR. AJAY BIJLI Multiplexes were an important part of the value chain of the film industry. For a brighter future of the industry, improved quality and better number of theatres would definitely play an important role. With box office revenues remaining the most important source of revenue for the film industry, multiplexes would ensure more revenue generation for the producers, distributors and everybody else. He agreed with Deepak about the entertainment tax being high even after having made 60%. It should ideally be around 24%. He reiterated the stand that metros also should get the benefit of the tax incentive given to multiplexes. He talked of two main issues: 1) With the sure and steady improvement in the regulatory environment in the country, more and more investment would be made in cinema building, and this brought the major issue of content supply to the forefront. The situation of either 20-30% occupancy or all seats sold out in a theatre was not good for the industry. There had to be a constant supply of good movies from the Indian filmmakers and from Hollywood too. 2) The industry needed to be focused about building cinemas at the right locations after sizing up the market properly. This would prevent overbuilding and hence prevent disappointment. The markets in the west had suffered such a plight with many companies going bankrupt. Such a scenario could be very counterproductive and should be avoided at any cost. Mr. Bijli said that to determine the capacity of a multiplex, issues like the understanding of the catchment area of the location, number of people, and the comparative scenario had to be kept in the mind. But, by and large, about 900 seats in a threeplex would be okay. The seats should be divided from 150 in the smallest, going up to 350, 400 or something like that. Varying sizes was the most important feature of multiplexes as it allowed you to have films for select audiences in small theatres, as well as blockbusters in the large auditoriums. He explained that although the regulation of cinema and entertainment tax were state subjects, FICCI had helped the industry in their endeavor to change the regulatory framework in two ways:

1. Assisted them in forming multiplex association providing them with a forum to voice their concerns. 2. Helped in making a presentation to the Union Information and Broadcasting Minister on the need to rationalize entertainment tax levels, to standardize cinema regulations, as also on the need to provide incentives at the central level. The central government had already constituted a state level committee of finance ministers of the states to look into the demands and something positive would definitely come out of it. he also said that multiplexes afforded the flexibility for longer runs to commercial films and also there would be an increase in software made for smaller screens too. He gave the example of Filhal, which did not do well at other places but ran for 7-8 weeks in City Pride multiplex in Pune. Multiplexes would provide better runs for non conventional films, outlets for imported films, outlets for re-runs which will do better on a 300 seater, which cannot run on the 900 seater at all. So the software bank would increase.

Application of 7 Ps of Service Marketing by the MULTIPLEX Industry

After developing your marketing strategy, there is a "Seven P Formula" which should be used to continually evaluate and reevaluate your business activities. These seven are: product, price, promotion, place, process, physical evidence and people. As products, markets, customers and needs change rapidly, one must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's market place. Let us see how the Multiplex industry applies these 7Ps in their business operations

Product
One should develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. Ask critical questions such as, "Is your current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?" The PVR owners are well aware about this concept, they know that a person who is coming to watch movie at their complex is not only interested in watching movie but is also concerned about the quality of service offered to him/her. The PVR owners know that their product is not only the movie played at their theatre but it also includes the quality of the seats,their comfort level,whole environment in the theatre ,the whole experience which the customer will have at their place while watching the movie,because a person coming there is primarily concerned about getting entertained in a tension free environment,where he can relax and get entertained as well. PVR owners are always checking that Is their any product or service theyre offering today that, knowing what they now knows, they would not bring out again today? Compared to there competitors, is their product or service superior in some significant way to anything else available? If so, what is it? If not, could they develop an area of superiority? Should they be offering this product or service at all in the current marketplace? PVR EUROPA is a place where one can watch movie along with refreshments which is included in the price of ticket, but the main difference it has with other PVR offering is that at PVR EUROPA you will

enjoy the experience of watching the movie on not just comfortable seats but on luxurious sofas with steward serving you with refreshments from time to time.

Prices
The second P in the formula is price. PVR owners has the habit of continually examining and reexamining the prices of the products and services they sell to make sure they're still appropriate to the realities of the current market. Sometimes they need to lower their prices. At other times, it may be appropriate to raise their prices. Some Multiplex owners believe that the profitability of their products or services doesn't justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Some says that you need to change your terms and conditions of sale. Sometimes, by spreading your price over a series of months or years, you can sell far more than you are today. PVR at times combine products and services together with special offers and special promotions. Sometimes they include free additional items like combo offers on refreshments etc that cost them very little to produce but make their prices appear far more attractive to your customers. PVR owners are always open to the need to revise their prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace. Movies can be watched at a lower price at PVR VIKAS PURI and NARAINA as compared PVR SAKET.One can watch a movie for Rs 75 at PVR NARIANA and watch the same movie at Rs 160 at PVR EUROPA because of the difference in the quality of service provided at both places.

Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. In Multiplex industry small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. Experienced copywriters can often increase the response rate from advertising by 500 percent by simply changing the headline on an advertisement. PVR continually experiment with different ways of advertising, promoting,

and selling their products and services. PVR has started PVR STAR CLUB for its loyal customers who can avail huge benefits and gifts by becoming its member. They And here is the rule: Whatever method of marketing and sales you're using today will, sooner or later, stop working. Sometimes it will stop working for reasons you know, and sometimes it will be for reasons you don't know. In either case, your methods of marketing and sales will eventually stop working, or you'll have to develop new sales, marketing and advertising approaches, offerings, and strategies.PVR also provide home delivery of tickets,it also toll free number 787 on which one can buy tickets.Apart from that many prominent Newspapers have spaces booked by PVR permanently which not only provide information regarding new release which are being played at PVR but they also act as promotional material for it as well.PVR also have its catalogue about the list of Movies which are screened there during the week at all its centers in Delhi and NCR region.Another example of promotion measure adopted by PVR is like PVR PRIYA is celebrating its 5TH Anniversary so if one goes to watch movie there he/she can play attractive games as well as avail exciting offers as well ,apart for watching the movie.

Place
The fourth P in the marketing mix is the place where your product or service is actually sold. PVR has the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales. This the main reason why PVR has its Multiplex theatres at all the prominent places at Delhi and NCR and is now gone ahead by opening PVR BANGLORE the biggest Multiplex of INDIA PVR is now all set to capture the whole India after ruling the Delhi and NCR region.PVR is planning to open many Multiplexes at major cities of our country as it want to provide its world class service to as many people across the country as possible.

People
PVR has the habit of thinking in terms of the people inside and outside of their business who are responsible for every element of your sales and marketing strategy and activities. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a

specific way. PVR believes that Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. PVR is successful in business, because it has the habit of thinking in terms of exactly who is going to carry out each task and responsibility. In many cases, it's not possible to move forward until you can attract and put the right person into the right position. Many of the best business plans ever developed sit on shelves today because the [people who created them] could not find the key people who could execute those plans. At PVR the staffs are considered not as employees but are considered as family. PVR believes in PEOPLE FIRST whether be it its customers or its employees. Customer satisfaction along with employee satisfaction is the prime goal of PVR pvt. Ltd.

Process
In order to perform a task in an effective and efficient manner on has to do it in a step by step or structured or in a processed way.PVR knows that in the industry where it works the success lies in how easy you make your process be it your service delivery one.Traditionally buying a movie ticket involves waiting in long queues for hours and than also chances are that by the time you reach the ticket window there is HOUSEFULL.But one will never find long queues at PVR for ticket,the reason is simple PVR has made the Ticket delivery process as customer friendly as possible. It has advance booking facility, online ticket booking, Ticket buying by Mobile phones and offcourse the home delivery of tickets. Even for those who go for current ticket buying, there are ample numbers of ticket counters for prompt service delivery. Even inside the theatre there are employees who would guide you towards your seat as per your seat number. The refreshment counters staffs are also at their toes to provide the customers with quick as well as best service possible.

Physical Evidence
Physical evidence are one of the key factors in Marketing Mix of the services.PVR is concerned about its elements of physical evidences. PVR group takes great pains to provide its customers the best possible infrastructure and design of its facilities. Attractiveness and presentation of its Multiplexes are always the best in business. PVR installs the best and the most up-to-date technology in its instrument (Dolby digital sound, Sync sound etc). Signage and promotional materials are also given special care at PVR as they do have considerable influence on customers. The employees also wear uniforms, which gives a good impression about the organisation in the minds of its consumers and also develop a sense of trust as well.The ticket issued at PVR are different from traditional

cinemahall tickets,here computerised tickets are issued which has all the information like the movie you are going to watch,at which auditorium it will be screened,its time,your seat number and line number,the price of ticket etc printed on it.