PRESENTATION ON- “SUCCESS OF PVR”

SUBMITTED BY- GROUP 3

(SUCHARITA SARKAR, ANUSUA
DAS, RUPALI ROY, MRIDUL
SINHA, SUMIT SAURAV)
ABOUT PVR LTD.
 PVR Ltd. is the largest and the most premium film exhibition company in India. Since its inception in 1997,
the brand has redefined the cinema industry and the way people watch movies in the country. The company
acquired Cinemax in 2012 and had taken over DT Cinemas in the year 2016 serving 76 million patrons
annually. Currently PVR operates a cinema circuit of 748 Screens 161 Properties 64 Cities (21 states and 1
Union Territory).
 PVR offers a grand collection of cinema formats. From its Mainstream to Gold Class Cinemas, Director’s
Cut to the latest sub brands - PVR ICON and PVR Superplex, the company has made exceptional
technology like the IMAX®, 4DX and ECX (Enhanced Cinema Experience) accessible to its audience. VR’s
recent addition has been P[XL] – India’s first premium extra-large home grown big screen format for a truly
enigmatic movie watching experience.
 PVR Ltd, the integrated ‘film and retail brand’ has PVR Cinemas as its major subsidiary. Its other two
subsidiaries are PVR Leisure and PVR Pictures. PVR Pictures has been a prolific distributor of non-studio/
independent international films in India since 2002.
VISION AND MISSION :

 VISION:

“To remain India' most premium and most preferred Retail Entertainment
Company.”
 MISSION:

“A commitment to deliver the best quality cinema viewing Every where, Every
time.”
CORE VALUES

“CREATING MILESTONES THROUGH INNOVATION”

Cinema has shaped India’s culture and PVR has molded how Indian audiences perceive and enjoy movies. Their 20-
year journey is interspersed with dramatic enhancements of viewer experience through innovation and creative use
of technology.
By bringing innovative technologies and truly novel experiences to the discerning masses, they have reimagined and
reinvented modern movie-going. Be it pioneering the multiplex culture in India or curating custom experiences, they
have continuously created milestones throughout our exciting journey.
They are committed to making the Indian movie-going experience progressively better for millions of Indians, with
sound business logic and prudent investments.
CONT…

Besides a customer-centric approach and a

growing business of high-quality cinemas,
the Company devotes undivided focus to
innovation and delivers the best movie-
viewing experience. This makes them not
only the biggest player in the industry, but
also the most preferred.
 SWOT ANALYSIS
STRENGHTS WEAKNESS
1. First mover advantage in multiplex business in India. 1. Ticket sales at higher prices with respect their counter
2. Developing and operate state-of-the-art multiplexes parts who are competing for the same segment.
to create superior quality ambiance. 2. High dependence on distributors.
3. Fully integrated supply chain.
4. Has most number of screen.
5. Acquiring DT cinemas has made the presence of PVR
in Delhi NCR to a greater extent.
6. Very strong brand equity.

OPPORTUNITIES THREATS
1. Expand business by increasing number of screens and 1. Blooming competition from similar multiplexes.
targeting wider audience. 2. Government’s interference with entertainment tax.
2. Collaborate with networking sites and Franchises. 3. Alternate mediums like DTH, DVD or VCDs can become
3. Multiplex market penetration is quiet low compared to popular making the business unattractive.
developed and developing nation (8 screens/ mn 4. Changing technology.
population). And the demand for multiplex is quiet 5. Film piracy.
high. (Motilal Oswal Securities Ltd., 2015)
4. People spending on entertainment is increasing.
5. Presence of large Indian diaspora.
THE TOP
COMPETITORS
OF PVR LTD.
ANALYIS OF INOX (MAJOR COMPETITOR OF PVR):

STRENGTHS WEAKNESS
 1. Controls the largest multiplex screen capacity 1. Low presence in Tier-2 towns and also
in India with over60 properties, nearly 250 margins affected by piracy.
screens spread across Indian cities
2. Increasing competition means market share
 2. One of the highest market share, Market
and margins are limited
capitalization in India
3. INOX was also chosen post a nationwide
tender to design, construct and operate the
prestigious multiplex in Goa.
4. State of the art facilities.
 5. Top of the mind brand recall and excellent
customer services offered.
5 FORCES MODEL FOR PVR LTD.

 THREAT OF SUBSTITUTES:
 Price performance of substitute.  THREAT OF NEW ENTRANTS:
 Switching costs of buyer.  Barriers to entry that includes copy
 Products substitute available in the
rights and patents.
market.  High capital requirement.
 Reduction of quality.  Government restricted polices
 Switching cost
 Access to suppliers and distributions
 CONT….
 BARGAINING POWER OF BUYERS:
 Bargaining leverage
 Switching cost of buyer
 BARGANING POWER OF SUPPLIERS:
 Buyer price sensitivity
 Input differentiation
 Competitive advantage of company’s product
 Impact of cost on differentiation
 Strength of distribution centers
 Input substitute’s availability
CONT….
 DEGREE OF INDUSTRY RIVALRY:
 Competitive advantage
 Continuous innovation
 Sustainable position in competitive
 Level of advertising
 Competitive strategy
 PESTLE ANALYSIS

PVR OPERATES IN A DYNAMIC ENVIRONMENT WHERE IT IS INFLUENCED BY

INCREASING ENVIRONMENTAL ACTIVISM AMONG CONSUMERS, INCREASING
REGULATORY FRAMEWORK FOR ENVIRONMENTAL FACTORS, GOVERNMENT
DECISIONS, REGULATORY FRAMEWORK, TECHNOLOGICAL CHANGES, CONSUMER
SPENDING BEHAVIOUR, COLLECTIVE SOCIAL TRENDS, AND EVER EVOLVING LEGAL
SYSTEM.
 WHAT ARE POLITICAL FACTORS IN PESTEL
ANALYSIS?
 Government of India has come under increasing global pressures to adhere to World Trade Organization’s
regulations on Motion Pictures industry.
 Armed Conflict – There are no imminent threats to India from the disruption in the business environment because of
military policies, terrorist threats and other political instability. PVR has experience of handling operations in difficult
circumstances.
 Changing policies with new government – Studying the current trends it seems that there can be a transition of
government in India in next election. PVR has to prepare for this eventuality as it will lead to change in governance
priorities of Services sector.
 Other stakeholders such as non-government organizations, protest & pressure groups, activist movements play
critical role in policy making in India. PVR should closely collaborate with these organizations so that it can
contribute better to the community goals as well as with corporate goals.
 Political stability in the existing markets – PVR operates in numerous countries so it has to make policies each
country based on the Motion Pictures industry specific requirements. Given the recent rise in populism across the
world we believe that India can see similar trends and may lead to greater instability in the India market.
 WHAT ARE ECONOMIC FACTORS?

 Efficiency of financial markets in India - PVR can access vibrant financial markets and easy availability of liquidity in
the equity market of India to expand further globally.
 Downward pressure on consumer spending - Even though the consumer disposable income has remain stable,
the growing inequality in the society will negatively impact consumer sentiment and thus impact consumer spending
behaviour.
 Government intervention in the Services sector and in particular Motion Pictures industry can impact the fortunes
of the PVR in the India.
 Economic Cycles - The performance of PVR in India is closely correlated to the economic performance of the India's
economy. The growth in last two decades is built upon increasing globalization and utilizing local resources to cater to
global markets.
 Increasing liberalization of trade policy of India can help PVR to invest further into the regions which are so far
off limits to the firm.
 Availability of core infrastructure in India – Over the years India government has increased the investment in
developing core infrastructure to facilitate and improve business environment. PVR can access the present infrastructure
to drive growth in sector name sector in India.
 WHAT ARE SOCIAL FACTORS?

 Media outlets play a critical role in influencing the public opinion India. Both traditional media and social
media are rapidly growing in India. PVR can leverage this trend to better market and position its products.
 Access to essential services – By and large over the last decade and half the wider population in getting
access to essential services in India. This has been a result of increasing investment in public services.
 Leisure interests – the customers in the India are giving higher preferences to experiential products rather than
traditional value proposition in Services sector. PVR can leverage this trend to build products that provide
enhanced customer experience.
 Societal norms and hierarchy – the society of India is different from the home market of PVR. It should
strive to build a local team that understands the societal norms and attitudes better to serve the customers in
India.
 Power structure – There is an increasing trend of income inequality in India. This has altered the power
structure that has been persistent in the society for over last 6-7 decades.
 WHAT ARE TECHNOLOGICAL FACTORS?
 5G and its potential – PVR has to keep a close eye on the development and enhancement of user experience
with increasing speed and access. This can completely transform the customer user experience in the Motion
Pictures industry.
 Maturity of technology – The technology in the Motion Pictures sector is still not reached maturity and most
players are vying for new innovations that can enable them to garner higher market share in India.
 Latest technology based innovations implemented by competitors of PVR – This can provide a good
insight into what the competitors are thinking and where Motion Pictures business model future is.
 Developments and dissemination of mobile technology has transformed customer expectations in the
Services sector. PVR has to not only meet and manage these expectations but also have to innovate to stay
ahead of the competition.
 Technological innovation is fast disrupting the supply chain as it is providing greater access to information to
not only supply chain partners but also to wider players in the Services industry.
 WHAT ARE ENVIRONMENTAL FACTORS ?

 - Renewable technology is also another interesting area for PVR. It can leverage the trends in this
sector. India is providing subsidies to invest in the renewable sector.
 - Customer activism – Greater awareness among customers have also put environmental factors
at the center of PVR strategy. Customers expects PVR to adhere to not only legal standards but also
to exceed them to become responsible stakeholder in the community.
 - Extreme weather is also adding to the cost of operations of the PVR as it has to invest in making
its supply chain more flexible.
 - Waste management especially for units close to the urban cities has taken increasing importance
for players such as PVR. India government has come up with strict norms for waste management in
the urban areas.
 - Recycling is fast emerging as a norm rather than a good thing to do in India economy. PVR has to
make plans to adhere to regulations and expectations in the Services sector.
 FINANCIAL PERFORMANCE OF PVR LTD.(2017-2018)

 Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
 The company's operating profit increased by 28.1% YoY during the fiscal. Operating profit margins witnessed
a fall and down at 17.2% in FY18 as against 14.8% in FY17.
 Depreciation charges increased by 11.1% and finance costs increased by 3.9% YoY, respectively.
 Other income declined by 49.7% YoY.
 Net profit for the year grew by 29.4% YoY.
 Net profit margins during the year grew from 4.4% in FY17 to 5.2% in FY18.
 The Company entertained 7.6 crores patrons in its cinemas, up by 1.20% compared to the previous year;
revenue has increased by 8% from ` 2,182 crores to ` 2,365 crores; net box office revenue grew by 11%,
food and beverage revenue showed a growth of 8%, and sponsorship income showed a rise of 18% vis-à-vis
previous year.
FIVE YEAR FINANCIAL PERFORMANCE
STRATEGIES FOR THE NEXT 5 YEARS:

 Since platforms like NETFLIX, AMAZON PRIME etc. are on the rage now, PVR should also come up with such
kind of innovative platforms which will attract more customer base thus achieving Economies of Scope.
 PVR should use its core competencies to differentiate themselves from the competitors. currently there is no
place that provides dining with entertainment. PVR should establish their brand as a combination of dining ,
entertainment & ambience. People should perceive PVR brand as a place for anything social be it food,
entertainment or party.
 PVR should make alliance with international film festivals to grab international market.
 PVR usually targets its customer who belong to high socio-economic status but to achieve Economies of Scale it
should equally focus on the demography of middle-income range and boost footfall.