Service Marketing Term Paper

Presentation

Manu Sebastian Luka (131141)

Gabbula Sairam (131117)

Raghvendra Kumar (131206)

G. V. Santosh Kumar (131117)

Hussain. M P (131237)

Introduction

Priya Village Roadshow (PVR) Cinemas is one of the largestcinema chains in India (462 screens, 104 locations in 44 cities panIndia).

The company, which as a joint venture agreement between PriyaExhibitors Private Limited and Village Roadshow Limited in 1995with 60:40 ratio, began its commercial operations in June 1997with the launch of PVR Anupam in Saket Nagar, Delhi, India'sfirst multiplex.

By introducing the multiplex concept in India, PVRCinemas brought in a whole new shift to the cinema viewingexperience: high class seating, state-of-the-art screens and Highquality audio-visual systems.

PVR’s 7 P’s of MarketingService Product:

The core benefit is the MOVIES that a customer comes to acinema hall along with the attendant experience of PVRCinemas. Thus, we can say the following are the expectedproduct in the case of PVR :

Luxury Cinema.

Bulk Cinemas.

Parties at PVR.

Price

PVR when it initially started off had a huge advantage of being onlyone of its kind in Delhi to begin with. Therefore they could charge ahigher amount to its customers as they were willing to pay it for thenew concept. This high pricing helped them make maximum gains.

In the case of PVR, they make use of all their tangible elements toprove to the customers that the movies tickets are worth the pricethey are paying for it.

Prices that had originally started at Rs. 125 (for evening shows) andRs. 90 (for morning shows) have gone up to Rs. 150 and Rs. 100respectively.

New weekend releases are priced at higher rates rangingfrom Rs.250-Rs.300 according to the seating preference.

PVR Priya has a slightly different pricing system whichvaries from Rs.45 to Rs.150 for different slabs ofcustomers.

The pricing at elite PVR Cinemas such as PVR Europa is Rs.160 and Rs. 750 for a Gold Class ticket. It offers superiorambience, environment, seating, viewing etc.

Place/Distribution

The factor of location is very important keeping in view the potentialmarkets in terms of channel selection and distribution.

All PVR cinema halls are stationed at good locations in the city.

This enables them to gather a number of footfalls everyday.

PVR opens its outlets at eventful yet untapped locations.

PVR has no other channel of distribution, as their service is soldsolely at their chains.

Promotion

PVR as a brand indulges into print advertisements on everyFriday giving out the latest movie schedule.

Any new developments are communicated to the customersvia press releases.

They are also in collaboration with cellular services like Airtelwhich have SMS and win contests which promote both brandssignificantly and give out free tickets to the lucky customers.

PVR hosts various premier shows with leading movie starsvisiting the cinema.

People

Employees are internal Customers.

30 employees at the corporate level.

50-60 employees at each cinema headed by a Cinema GeneralManager.

For the customers convenience, The nature of all employees is veryfriendly, informed, helpful, reliable, soothing, cheerful and youth-like. Therefore, the audience can easily relate and communicatewith them.

Physical Evidence

PHYSICAL ENVIRONMENT

• Ambient

Factors

• Air Quality

• Quality of

scent

• Degree of

circulation

• Design Factors

• Architecture colour, scheme

• Layout, comfort

• Social Factors

• Appearance,

Behavior and

number of service

personnel.

• Quality and

quantity.

Physical Evidence

Ambient factors.

Design Factors.

Exterior

Process

It was the first cinema company to introduce computerizedticketing through use of international box office software in itscinemas.

First cinema to accept credit cards in India against tickets.

First to offer cinema tickets on Internet with online paymentgateway for payment.

PVR was the first to install surround sound and Dolby in Delhi.

Gurgaon 7 screen megaplex is equipped with the latest THXapproved sound system for the real life sound effects and thestate of the art Xenon based projection technology.

Service Blueprint

GAPS IN SERVICE

GAP 1 : Listening Gap

Company Perceptions of

Consumer Expectations

Gap 1

EFFORTS MADE TO CLOSE THE GAP:

Interaction through Social Media.Good CRM practices.Good market research.

GAP 2: Standards Gap

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Gap 2

EFFORTS MADE TO CLOSE THE GAP:Well-defined blueprint.Customer oriented service design.Good ambience.Cleanliness.Physical evidence.

GAP 3: Delivery Gap

Service

Delivery

Customer-Driven Service Designs and

Standards

Gap 3

Reasons:Deficiency in HR polices.Some customers who negatively impact other customers.

GAP 4 :Communication Gap

Service

Delivery

External Communications

to CustomersGap 4

Reasons:Lack of education for customersLack of Internal marketing.Absence of customer expectation management

through all forms of communication.

Service Quality DimensionsReliabilityThe movie started as per the timings

Munches are properly served as promised

The seats are relaxing as promised

There is no flaw in quality of food

Assurance

The server know about all the combos

The ticketing person books the ticket without error.

The sales person gives ongoing reviews of the movie

The gate person guided to the right seats

Responsiveness

The attendant is available whenever required

Whenever there is a conflict, it is resolved quickly

The telephone help-line respond when called

The munching order was ready quickly.

Empathy

The gate attendant has an affable deportment

The reservation assistant is courteous at all times

The manager give individual attention for any help required

The employees considered all the appropriate needs

TangibilityThe screens are fully HD quality

The sound is clearly audible and not too loud or slow

The staff is well groomed

The seats in the hall are comfortable

The waiting lounge area and facilities are engaging

The rest rooms are clean and equipped with toiletries

Managing Demand & Capacity for PVR Cinemas• High Demand during:

Weekends

Evening Shows

Public Holidays

Festivals

Summer Vacations

Hit Films

• Low Demand during:

Weekdays

Matinee Shows

Flop films

High Pricing

Special Events

Calamity

Supply

No of Screens

No of shows

Labour

Quality of Films

Strategies for shifting demand to match capacity

Increase Price

Increase no of shows

Reduce price

Decrease no of shows

Flexible Timings

Increase Advertising activities

Demand too high Demand too lowShift Demand

Strategies for adjusting capacity to match demand

Cross-training employees

Part time employees

Maintenance/ Renovation

Employee Vacations

Demand too high Demand too lowAdjust Capacity

These are the three potential bottlenecks:1. Sometimes due to server shutdown ticket booking and

payments get delay.

2. During weekends or during release of vary hit movies, crowdcontrols becomes tough.

3. When customers come in group and create problems toother customers.

Suggestions

• PVR should use extra servers during expected traffic zone overinternet. It will solve problem of server crash during hightraffic.

• PVR should be proactive during weekends and release of newmovies, PVR should hire staffs for temporary basis duringthese times.

• PVR should have strong policy and penalty if single or group ofcustomers create problem to some other customers.