Manjunath-0540-Mktg. of Entertainment Services at ADLABS

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Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT 1

MARKETING OF ENTERTAINMENT SERVICES AT ADLABS,

BANGALORE

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF

BANGALORE UNIVERSITY

BY

MANJUNATHA S.P.

Reg.No-05XQCM6045

Under the guidance and supervision

Of

DR K.V PRABHAKAR

Senior Professor

M P Birla Institute of Management

Bangalore

M P BIRLA INSTITUTE OF MANAGEMENT

(ASSOCIATE BHARATIYA VIDYA BHAVAN)

#43, Race Course Road, BANGALORE. 560001

May 2007





DECLARATION

I hereby declare that this dissertation entitled “MARKETING OF

ENTERTAINMENT SERVICES AT ADLABS, BANGALORE”

is the result of my own research work carried out under the guidance and

supervision of Dr. K V Prabhakar, Senior Professor, M P Birla

Institute of Management, Bangalore

I also declare that this dissertation has not been submitted earlier to any

Institute/organization for the award of any degree or diploma

Place: Bangalore

Date: (MANJUNATHA S.P)





CERTIFICATE

This is to certify that this dissertation entitled “MARKETING OF


is the result of research work carried out by Mr. Manjunatha S.P under

the guidance and supervision of Dr K V Prabhakar, Senior Professor,

M.P. Birla Institute of Management, Bangalore.

Place: Bangalore (DR. Nagesh S Malavalli)

Date: Principal





CERTIFICATE

I hereby certify that this dissertation entitled “MARKETING OF


is the project work carried out by Mr. Manjunatha S.P under my

guidance and supervision

Place: Bangalore (Dr K V Prabhakar)

Date: Senior Professor





ACKNOWLEDGEMENT

I am happy to express my gratitude to Dr. N. S. Malavalli, Principal, M.

P. Birla Institute of Management, Bangalore for having imparted many

valuable ideas to me for my project for my project.

I extend my sincere thanks to Professor Dr. K. V. Prabhakar Senior

Professor, M.P.Birla Institute of Management, Bangalore for

providing me all the Information required and the guidance throughout

the project without which this project would not have been possible.

Place: Bangalore

Date: (MANJUNATHA S.P)





LIST OF CONTENTS

CHAPTERS TITLE PAGE NO.

1 EXECUTIVE SUMMARY 1-2

2 INTRODUCTION TO ENTERTAINMENT

AND MEDIA INDUSTRY

3-9

3 PROFILE OF ADLABS 10-14

4 ANALYTICAL FRAMEWORK OF

MARKETING OF ENTERTAINMENT

SERVICES

15-25

5 LITERATURE SURVEY 26-35

6 RESEARCH METHODOLOGY 36-40

7 PROFILE OF THE RESPONDENTS 41-43

8 DATA ANALYSIS AND INFERENCES 44-56

9 MAJOR RESEARCH FINDINGS,

CONCLUSIONS AND

RECOMMENDATIONS

57-59

10 ANNEXURE

SELECT BIBLIOGRAPHY

QUESTIONNAIRE

DIRECTIONS FOR FURTHER

RESEARCH

60-65





LIST OF TABLES

SL.NO TABLE TITLESPAGE

NO.

1TABLE SHOWING HOW RESPONDENTS ARE

AWARE OF ADLABS

44

2TABLE SHOWING SOURCES THROUHG WHICH

RESPONDENTS CAME TO KNOW ABOUT ADLABS45

3

TABLE SHOWING NUMBER OF RESPONDENTS

WHO ARE SATISFIED WITH THE SERVICES

OFFERED BY ADLABS

46

4


WHO ARE HAPPY WITH ADLABS IMAX AND

EXCLUSIVE THEATRE SERVICES

47

5


WHO STATED ADLABS PROMOTIONAL

ACTIVITIES ARE EFFECTIVE

48

6

TABLE SHOWING RATINGS GIVEN BY THE

RESPONDENTS FOR PROMOTIONAL ACTIVITIESOF ADLABS IN TERMS OF EFFECTIVENESS

49

7

TABLE SHOWING THE NUMBER OF

RESPONDENTS WHO STATED THAT ADLAB'S

FUN INNOVATION IS VERY EFFECTIVE FOR

DIFFERENT AGE GROUPS OF PEOPLE

50

8


WHO STATED THAT ADLABS IS THE MARKET

LEADER IN THE PROCESSING OF THE LARGEST

NUMBER OF HINDI FILMS EVERY YEAR

51

9

TABLE SHOWING NUMBER OF RESPONDENTSWHO STATED THAT ADLABS 3D IMAX FLAT

SCREEN IS VERY EFFECTIVE52

10


WHO INDICATED THE FREQUENCY OF THEIR

VISITS TO ADLABS (MONTHLY)

53





11


WHO AGREED THAT ADLABS TELEVISION

CAREERS ARE YOUTH- ORIENTED

54

12

TABLE SHOWING NUMBER OF RESPONDENTSWHO HOLD THE OPINION THAT ADLABS

PROVIDES THE ENTERTAINMENT SERVICES AT

LOWER COST OF PRICE

55

13


WHO STATED THAT THE ADLABS

ENTERTAINMENT HUB HAS THE CUTTING THE

EDGE TECHNOLOGY

56





LIST OF GRAPHS

SL.NO GRAPHS TITLE PAGE NO

1 GRAPH SHOWING DIFFERENT AGEGROUPS OF RESPONDENTS WHO ARE

AWARE OF ADLABS ENTERTAINMENT

INDUSTRY

41

2 GRAPH SHOWING NUMBER OF

OCCUPATIONAL RESPONDENTS SHOULD

AWARE OF ADLABS ENTERTAINMENT

INDUSTRY.

42

3 GRAPH SHOWING NUMBER OF MALES

AND FEMALES WHO ARE AWARE OF

ADLABS ENTERTAINMENT INDUSTRY

43

4 GRAPH SHOWING THE NUMBER OF

RESPONDENTS WHO ARE AWARE OF

ADLABS

44

5 GRAPH SHOWING SOURCES THROUGH

THE RESPONDENTS HAVE COME TO

KNOW OF ADLABS ENTERTAINMENT

SERVICES

45


RESPONDENTS WHO ARE SATISFIED

WITH THE SERVICES OFFERED BYADLABS

46


RESPONDENTS WHO ARE HAPPY WITH

ADLABS IMAX AND EXCLUSIVE

THEATRE SERVICES

47


RESPONDENTS WHO SAID THAT ADLABS

PROMOTIONAL ACTIVITIES ARE

EFFECTIVE

48

9 GRAPH SHOWING RATINGS GIVEN BY

THE RESPONDENTS FOR PROMOTIONAL

ACTIVITIES OF ADLABS IN TERMS OF

EFFECTIVENESS

49





10 GRAPH SHOWING THE NUMBER OF

RESPONDENTS WHO STATED THAT

ADLAB'S FUN INNOVATION IS VERY

EFFECTIVE FOR DIFFEENT AGE GROUPS

OF PEOPLE

50



ADLABS IS THE MARKET LEADER IN

THE PROCESSING OF THE LARGEST

NUMBER OF HINDI FILMS EVERY YEAR

51



ADLABS 3D IMAX FLAT SCREEN IS VERY

EFFECTIVE

52


RESPONDENTS WHO INDICATED THE

FREQUENCY OF THEIR VISITS TO THE

ADLABS (MONTHLY)

53


RESPONDENTS WHO OPINIONED THAT

ADLABS TELEVISION CAREER IS

YOUTH- ORIENTED

54



ADLABS IS PROVIDING THE

ENTERTAINMENT SERVICES AT LOWER

PRICE

55


RESPONDENTS WHO STATED THAT THE

ADLABS ENTERTAINMENT HUB HAS THE

CUTTING THE EDGE TECHNOLOGY

56





EXECUTIVE SUMMARY

Entertainment Industry today is being re-defined…in terms of content,

delivery mechanisms and the emerging technologies. The Film Industry is

overwhelmed by the growth of multiplexes, which has changed not only the

entire entertainment experience for the consumers but also impacted the movie-

making business. The Television Industry continues to boom - new channels

being launched and new content formats emerging such as reality shows, niche

and kid’s channels. Here again, emerging technologies such as broadband and

digitalization will pave the way for growth in this segment.

The Indian entertainment and media (E&M) industry has out-performed

the Indian economy and is one of the fastest growing sectors in India. The

E&M industry generally tends to grow faster when the economy is expanding.

The Indian economy has been growing at a fast clip over the last few years, and

the income levels too have been experiencing a high growth rate. Above that,

consumer spending is also on the rise, due to a sustained increase in disposable

incomes, brought about by reduction in personal income tax over the last

decade. All these factors have given an impetus to the E&M industry and are

likely to contribute to the growth of this industry in the future.

Based on industry feedback, additional sections showcasing the

emerging International Trends in each segment have been included in this

year’s report. We thank Adlabs for drawing the necessary knowledge from

their global resources for this endeavor. Their effort to present the content of

the report in a form that is interesting and useful, not only to the industry

people but also the public at large is greatly appreciated.





The crux of the problem is the Formulation of Innovative Marketing

Strategies of Entertainment Services at Adlabs, Bangalore. The research

objectives include examination the services offered by Adlabs IMAX and

Exclusives, ascertaining the customer satisfaction level and explore the fun

innovation of Adlabs.

Our research investigation indicated that the Adlabs promotional

activities are very effective; services are youth-oriented and have the cutting

edge technology. However constant innovation is needed to sustain its

distinctive competitive advantage.





INTRODUCTION TO ENTERTAINMENT &

MEDIA INDUSTRYToday, new media of all types must be considered when considering the

scope of the entertainment and media industry. The number of broadband

Internet connections in the U.S. has reached true mass market in size, at about

50 million lines as 2006 ended. Comcast (the cable TV provider) alone has 11

million high-speed Internet subscribers. Advertising on the Internet is now a

$16 billion industry. Most recently, the "Third Screen" (cell phone-based

entertainment including video and music) is becoming a major factor inentertainment and media. Total spending (including advertising) in the U.S. on

media of all types was about $900 billion in 2006. U.S. advertising spending

alone was about $296 billion.

Broadly measured, the entertainment and media industry spans multiple

sectors, from America's 9,042 FM radio stations, to the 1.4 billion movie

tickets sold each year. The gambling sector with $57 billion in annual revenues

is often included when considering entertainment as a whole.

Meanwhile, revenues are mixed at traditional entertainment and media

segments. Book sales were up about 10% in the U.S. for 2005, at $25 billion,

after falling slightly in 2004. Movie theater attendance is up, reversing a sharp

fall after 1999. The traditional, storefront video rental sector is suffering due to

alternatives including Netflix, TiVo and video-on-demand services.

Newspapers are finding it increasingly difficult to compete against Internet

news and advertising delivery rivals. Recorded music sales on CD-ROM

continue to suffer while sales of digital music files are soaring. Traditional

radio broadcasting is suffering, finding it increasingly difficult to gather





listeners for advertising-based radio programming due to such

alternatives as satellite radio and digital MP3 players.

The burning issue affecting all sectors of the entertainment and media

industry is maintaining control of content and audiences while taking

advantage of myriad new electronic delivery venues. Competition in the

entertainment sector is fierce. Gone are the days when television and radio

programmers enjoyed captive audiences who happily sat through ad after ad, or

planned their schedules around a favorite show. Consumers, especially

consumers in younger demographics, now demand more and more control over

what they watch, read and listen to.

Issues related to control include:

1) Pricing for content (including free-of-charge access; illegal

downloads versus authorized downloads; and full ownership of a paid

download versus pay-per-view).

2) Portability (including the ability for a consumer to download once,

and then use a file on multiple platforms and devices including iPods and cell

phones, or the ability to share a download with friends).

3) And delayed viewing or listening (such as viewing TV programming

at the consumer's convenience via TiVo and similar personal video recorders).

The competition among entertainment delivery platforms has

intensified; all sectors face daunting challenges from alternative delivery

methods. For example, satellite radio delivery (XM and Sirius) of subscription-

based music and talk programming has hit its stride multimillion subscriber

counts for Sirius and its competitor XM. Another example: telecommunications

companies such as AT&T (formerly known as SBC Communications) are now





delivering television programming to the home via telephone wires,

battling cable and satellite TV firms for market share.

Today, electronic offerings such as DVDs, personal video recorders

(PVRs), video-on-demand (VOD) and MP3 players have vastly altered the way

consumers enjoy entertainment. People watch and listen according to their own

desires and whims. Miss the finale to a favorite television show? Rent or buy it

on DVD or record it to watch later. Interested in only one track from a

recording artist's new CD? Buy and download just the one song via the

Internet. Love a prime-time drama on a major network but hate commercials?

Record the show while skipping over the commercials with a PVR.

The implications of these changes are staggering. The business models

upon which most entertainment companies have traditionally run are becoming

obsolete. Revenue from traditional advertising is in jeopardy while revenue

from subscription-based business models is soaring. Online advertising is

growing at supersonic speed. Television programming schedules are losing

relevance while electronic program guides are becoming more and more vital.

Traditional media are losing share while new digital media are becoming the

norm. Entertainment companies are being forced to radically change to deal

with new technologies and new demands from consumers.

Rapid changes in viewing habits are already occurring. Network TV

news, radio news and newspapers all find that they have to compete fiercely

against Internet-based news content. A large portion of sports programming has

migrated away from "free" broadcasts on TV and onto paid cable channels andpay-per-view systems.

Meanwhile, platforms and delivery are evolving quickly. Multipurpose

cell phones are now used for more and more entertainment purposes, including

video and TV-like programming. Game machines are going multipurpose with





the ability to connect to the Internet and play DVDs. Broadband to the home

has reached the mass-market tipping point, while wireless broadband systems

such as Wi-Fi are enhancing the mobility of entertainment and media access. A

serious evolution of access and delivery methods will continue at a rapid-fire

pace, and media companies will be forced to be more nimble than ever.

Sony's new PlayStation 3 utilizes a supercomputer-like chip called

"Cell" that has the potential to revolutionize the electronic games industry due

to its ability to run highly realistic, advanced software at amazing speed.

Recommendation software that learns the habits and tastes of consumers

will evolve and will do a better job of pushing appropriate entertainment

choices toward audiences. Amazon.com has long been a leader in the use of

such software. Netflix has created an admirable package of its own. Likewise,

Apple's iTunes software is strong on recommending content to customers.

Some interesting mergers might be driven by the potential to use extremely

powerful recommendation software to attract and better serve consumers across

multiple types of entertainment media.

The gambling sector remains strong, with massive new projects in Las

Vegas and Macau, along with experienced operators rushing to rebuild the Gulf

Coast casinos that were wiped out by 2005's hurricanes.

Advertising, long the main revenue source for much of the media

industry, is rapidly moving to the Internet, as shown by the incredible financial

success of Yahoo! and Google, among other search sites that offer advertisingservices.

You should count on continued, rapid changes: The revolution in new

media continues, platforms will evolve quickly, consumers will obtain even

greater control and competition will become even hotter.





Entertainment and media industry in India

Today’s India is seen as one of the most happening market place in the

global market. Currently India is one of the best performing economies in the

world.

The magnitude of The Indian Entertainment and Media Industry can be

made out from the fact that it has out-performed the Indian economy and is one

of the fastest growing sectors in India, riding on the back of economic growth

and rising income levels that India has been experiencing in the past years with

the onus of global entertainment industry expected to touch $1.8 trillionshifting towards the Asian region, India is well poised to garner a sizable share

of it. India’s film industry is already the largest producer of feature films in the

world.

In the context of Indian Entertainment and Media industry, the Filmed

Entertainment and Television segment dominate the industry followed by the

Print, Radio and the Music segments. The Indian Entertainment and Media

Industry offers ample opportunities for investing be it animation, films,

dubbing, music etc. This report covers all the important aspects related to the

industry with useful and important data thus offering a useful insight to the

investor/reader looking to invest in this sector.





Entry of new players

The year 2005 saw the entry of new players across all segments of theE&M industry. The most prominent entry was that of the Reliance Group in the

filmed entertainment and radio segment. During 2005, Reliance Capital bought

a majority stake in Adlabs which enabled it to have a presence across the entire

value chain of the filmed entertainment segment ranging from film production,

exhibition and distribution. Through Adlabs, Reliance also made its entry into

the radio segment by bidding for over 50 FM radio stations across the country

with aggregate bids of over INR 1.5 billion. The other significant entry into the

entertainment and media segment was that of the Tata group, through its

subsidiary Videsh Sanchar Nigam Limited (VSNL). VSNL tied up with the

Paris-based Thomson Group in 2005 with the objective of identifying

opportunities in managing and delivering content for third parties, including

broadcasters and content providers. Thomson Group also recently announced

its partnership with Tata Sky Limited for manufacturing set-top-boxes and

providing sales service and support network for their DTH customers. Foreign

investment Owing to the strong impetus for growth from the economic and

demographic factors coupled with some regulatory corrections, the sector also

recently witnessed increasing foreign investment inflows in most segments of

the E&M industry, especially the print media. Recent examples include foreign

investment in English dailies such as Hindustan Times and Business Standard

by Henderson Global and Financial Times respectively. Vernacular media too

saw its share of foreign investment with a strategic equity investment by

Independent News & Media in Dainik Jagran, a leading Hindi Daily. In the

broadcasting space, most channels beaming into India (such as Walt Disney,

ESPN-Star Sports, Star, Discovery, BBC etc.) have established foreign

investment subsidiary companies for content development and advertisement

airtime sales. In the television distribution space arena, foreign investment is

being drawn by the larger cable operators referred to as ‘multi-system operators





(MSO)’ such as Hathway and Hindujas. In the television content space, the

recent investment in Nimbus Communications by a foreign private equity

player is seen as the start of a significant trend of foreign investment inflows.





PROFILE OF ADLABS

Adlabs is by far the largest entertainment conglomerate in the country.

Thought leaders in every sense of the word, they have been the defining force

in every sphere of the entertainment industry - production, distribution,

processing or in cinemas - for over three decades now. Be it pioneering the

concept of multiplexes, giving a corporate face to movie making, or

introducing the IMAX experience, it has always been Adlabs first - in short, it

was 'never a dull moment' for the industry.

June 2005, marked the milestone in Adlabs when Reliance ADAG

stepped into the company and became majority promoter shareholders. With

this move Adlabs was catapulted to being part of one of the leading business

groups in India with a combined market capitalization exceeding One Lakh

crores.

This management expertise and resources acted as a catalyst in

synergizing various interrelated businesses: animation, distribution, radio and

digital cinema to name a few. Today we are the entertainment hub for top notch

talent and cutting edge technology.

Adlabs offers you the opportunity to be part of India’s fastest and

largest growing entertainment conglomerate. In other words, a chance to work

with the best in the industry, as part of world-class teams, comprising nearly1100 motivated individuals, that tackle new challenges every day; in a

company that is as committed to its employee’s growth as it is about its own

success





Business Description

Adlabs Film Ltd. The Company's principal activities are to provide

feature films, television, entertainment and other related services in India. The

Company operates in two segments Commissioned programmes which

includes the sale of television serials to channels and Sponsored programmes

which includes the telecasting of television serials on channels.

Founder:

Adlabs was founded by Manmohan Shetty, widely accepted as a

visionary in the Indian film industry. In 1978 along with Vasanji Mamania, he

started Adlabs a small film processing unit that catered to ad films. In 1989, the

firm entered mainstream cinema processing and has never looked back since.

Today, we process more than 60 percent of all Hindi films produced in India.

Mr. Shetty pioneered many technological advances at Adlabs, including

blowing up 16mm film to 35 mm and introducing advanced color correction

processes in India.

An ardent film buff, he believed in nurturing talent and this led to a

separate division for movie production. With the economy on the upswing, and

fast-changing lifestyles in the metropolises, he also anticipated great scope for

the multiplex business and made a timely entry into this segment in 2001 by

launching India's first IMAX theatre in Mumbai. Today, various Adlabs

Cinemas constitute some of the country's most popular and premium

entertainment destinations.

ManMohan Shetty has recently completed his term as Chairman of the

National Film Development Corporation.





OVERVIEW

MOVIES

Besides live action films we have entered the world of animation

starting with a full-length feature on South Indian superstar, Rajnikanth, and a

film on the apparel brand characters Gini & Jony.

Our endeavour is to constantly develop, produce and distribute highly

entertaining films across various genres. While we continue to be a dominant

player in this industry, we are also well on our way towards playing a key role

in transforming the Indian film industry into a global industry using innovative

business models.

CAREERS

Adlabs offers you the opportunity to be part of India’s fastest and largest

growing entertainment conglomerate. In other words, a chance to work with the

best in the industry, as part of world-class teams, comprising nearly 1100

motivated individuals, that tackle new challenges every day; in a company that

is as committed to its employee’s growth as it is about its own success.

If Adlabs excites you as a career option, send us a brief note about yourself.

Evan Menezes, our Corporate Head, HR, will get back to you the moment we

have something promising.





TELEVISION

Adlabs forayed into television content creation, initially focusing on a

repertoire of youth-oriented, reality-based programmes, by becoming majority

stakeholders of Siddhartha Basu's Synergy Communications. Synergy, a wellknown name in the business, has been associated with some of the most

popular and groundbreaking programmes on Indian television - Kaun Banega

Crorepati, Mastermind and now Jhalak Dikhhla Jaa.

The new entity Synergy Adlabs will use our combined forces, abilities

and expertise to create exciting and varied fare for television, both in India and

the world.

SERVICES

Today Adlabs is the market leader, processing the largest number of

Hindi films every year with a record-breaking number of prints.

Long-standing business relationships and a technologically advanced

facility (including a high quality lab for processing raw exposed films, colour

correction, editing and making multiple prints for final distribution, and a well-

appointed preview theatre at Film City, Goregaon) have made us the most

sought-after film processing laboratory in India.

Currently, Adlabs enjoys a 70% market share in the Hindi films in the

film processing and printing business. Along with films, we continue to focus

on quality negative processing for the advertising industry.

In 2005, Adlabs received the prestigious Kodak Image care Program

Negative Processing Accreditation. With it, Adlabs joined an elite club of





processing labs in the world recognized for the highest quality and standards in

motion picture film handling and processing, and most efficient practices.

They have further consolidated our dominant position with numerous

other prestigious awards for the quality of our film processing.

CINEMAS

In the year to come, 13 million people are expected to watch a movie on

an Adlabs screen. With two IMAX theaters, 13 cinemas, 50 screens and

counting, Adlabs cinemas is one of the largest motion picture exhibitors in the

country.

In keeping with Adlabs' reputation for innovating and introducing high-

end technologies to enhance the movie experience, we recently added a 3D

IMAX flat screen in NCR and there is a third IMAX screen in Kolkata in the

pipeline.

All in all, plans are underway for a large chain of cinemas in the top 10

cities including Delhi, Kolkata, Hyderabad and Bangalore. We are also looking

at ramping up operations in northern India and the second phase will include

expansion to tier 2 cities.





ANALYTICAL FRAMEWORK OF

MARKETING OF ENTERTAINMENT

SERVICES

Entertainment services include all those services that help a person feel

entertained and relaxed. The various forms of entertainment include music,

movies, sports, animation, television shows, and the more modern forms such

as go-karting, bowling alleys, theme parks and family entertainment centers.

Music and movies have a worldwide appeal and provide the service providers

with a lot of scope for growing their business.

An understanding of how entertainment services influence consumer

behavior is essential for marketers of entertainment services to promote their

services. The global music and movie industry has been segmented on the basis

of revenue generated and geographic territory or location of markets. The free

MP3 downloads and piracy of content has been the concern of music and

movie producers across the world.

In order to counter the threat from these sources, entertainment service

providers have to devise strategies that will help them counter the threats they

face as well enhance the growth of their business. After having developed a

marketing strategy, entertainment service firms must exploit all the seven

marketing mix elements (product, price, place, promotion, people, physical

evidence and process) to differentiate themselves from their competitors and

attract new consumers to their service.

The recent trends taking place in the global entertainment sector include

the online availability of entertainment content, piracy or unauthorized

duplication of content, mergers and consolidation taking place among





entertainment companies, both at a global as well as domestic level, and the

evolving forms of media, digitization and other media technologies.

These trends in entertainment services make it crucial for entertainment

service providers to develop new strategies to take advantage of these trends

and counter threats, if any.

Compared to the entertainment industry in other parts of the world,

especially that in the USA, the entertainment industry is relatively fragmented

and disorganized and makes it necessary for the Indian companies in the

industry to adopt an entirely new business model in order to achieve growth in

the industry.

India is witnessing the growth of multiplexes that offer better viewing

experience to the customers. The growth prompted many players such as PVR,

INOX, Satyam Cineplexes, and Shringar Films to enter this segment. The

caselet provides details about the features of INOX multiplexes that set them

apart from the competition. It outlines the expansion strategy of INOX which

wants to become a national player in this segment.

The Indian music and entertainment industry witnessed unprecedented

momentum in the late 1990s and early 2000s. Improvements in packaging,

branding and sale of the final products were accompanied by rapid acceleration

in the areas of technological development and customer centric innovations

characterized by modern multiplexes and music stores. Changing lifestyles and

increasing disposable income had given a boost to the media and entertainmentindustry. According to 2004 estimates, around 68% of the total adult

population in the country had access to the conventional forms of media. Some

of the fastest growing segments in the domestic entertainment industry include

music, cable and satellite television, animation and FM.





A report compiled jointly by FICCI and Ernst and Young forecasted that

the size of the Indian entertainment industry would more than double from Rs

192,000 million in 2003 to Rs 423,000 million in 2008. With the opening up of

global entertainment avenues to domestic consumers, the growth in this

segment was expected to continue at a steady pace in the coming years. Several

positive developments like the accordance of the 'industry' status to the film

industry, satellite channel penetration, the retail boom in the channels for music

sales (Music World & Planet M), the use of digital technology in all spheres of

entertainment, customer centric innovations like 'hamaraCD', 'Qjam', video-

parlors and the growth of multiplexes had contributed to the growth of this

sector.

The entertainment industry was entering a consolidation phase as

borders between films, music and television were fast disappearing. Skills and

resources were being pooled extensively and multiplexes which included a host

of entertainment paraphernalia were growing phenomenally. Besides

adaptation to high-end digital technology, the entertainment industry was also

witnessing rapid development of state-of-the-art studios and post production

facilities. Layout planning, publicity and advertisement efforts and the creation

of a user-friendly ambience to attract customers were being given a great deal

of importance. In the selling of recorded music, the main areas of growth were

the chain -stores such as Music World and Planet M, promoted by large

corporate groups like the RPG group and the Times Group respectively. A

majority of the marketing efforts of these retail chains were directed towards

building shop-in-shops - Music World called them 'Unplugged stores', while

Planet M referred to them as 'satellites' - in a conscious attempt to reach out tocustomers, increase visibility and encourage impulse purchases.

Before organized retailing was established, music cassettes and CDs

were sold through a huge network of distributors and retailers spread all over

the country. These ranged from small kiosks selling cigarettes and tobacco to





general stores that 'also sold music and from gift/stationery and electronic

goods shops to local chains of music stores. Though there were outlets such as

Rhythm House in Mumbai (Maharashtra), Sangeet Sagar in Hyderabad

(Andhra Pradesh) and Rhythms in Bangalore (Karnataka), they catered only to

customers in a particular city. The issues of piracy and counterfeit products

were also a major problem, hampering the industry from reaching its full

growth potential. Given this backdrop, the establishment of outfits such as

Music World was a welcome change for the industry. These specially laid-out,

customer-friendly outlets allowed companies to not only maximize their profit

margins and reduce their dependency on the distribution channels, but also to

gauge consumers' changing perceptions and revamp their product offerings

accordingly. The outfits also helped to put up substantial resistance to piracy by

tracking customer preferences and ensuring ready stocks.

The new brick and mortar setups in the legal music industry also

provided an answer to the challenge of illegal online download formats. Most

retail stores made conscious efforts to tackle the situation and create viable

opportunities out of the perceived threat. Once the download format attained

maturity in the Indian market, Music World was ready to host a site at short

notice. The inputs for the site, musicworld4u.com, were fed on a continuous

basis. Driving on the strength of the group's portal, Planet M was also reputed

to have a significant online presence. A major breakthrough in this field was

the creation of hamaracd.com by Saregama India Ltd. (the erstwhile

Gramophone Company of India Ltd). Hamaracd.com was a unique site where

Indian music lovers could access a vast database of more than 25,000 songs

across 16 genres and create their own music CD with their favorite songs,image and a CD title.

Industry analysts believed that complete customization, comfort,

convenience and quality were becoming the redefining traits that characterized

the music and entertainment industry in India in the early 2000s.





As more forms of media and entertainment become digitized, content

producers and distributors face new challenges brought on by file-sharing

programs such as Napster, and the vast opportunities created by multi-channel

distribution. Media and entertainment companies can now explore new

strategies for generating additional revenues from media assets by distributing

and marketing them across a wide spectrum of devices and channels. To

leverage content across multiple channels and personalize it for targeted

delivery, these companies require sophisticated tools that will allow efficient

management of content and audience relationships. To eliminate patchworks of

diverse divisions and disparate systems, large multinational media

organizations can align and integrate assets, technologies, and business

processes to reduce costs. Using more cost-effective digital marketing tools

will help these companies to achieve better ROI on marketing effort

Current status of the industry and its growth potential

The Indian economy continues to perform strongly and one of the key

sectors that benefits from this fast economic growth is the E&M industry. This

is because the E&M industry is a cyclical industry that grows faster when the

economy is expanding. It also grows faster than the nominal GDP during all

phases of economic activity due to its income elasticity wherein when incomes

rise, more resources get spent on leisure and entertainment and less on

necessities. Further, consumption spending itself is increasing due to rising

disposable incomes on account of sustained growth in income levels, and this

also builds the case for a strong bullish growth in the sector.

The size of E&M in India is currently estimated at INR 353

billion and is expected to grow at a compounded annual growth rate of 19

percent over the next five years.





The television industry continues to dominate the E&M industry by

garnering a share of over 42 percent, which is expected to increase by a further

9 percent to reach about 51 percent. The share of the film industry, which

currently stands at 19 percent, is not expected to change materially over the

next five years. Print media, which stands at over 31 percent, is projected to

lose some of its share in favour of the emerging segments.

The Indian entertainment and media industry today has everything going

for it - be it regulations that allow foreign investment, the impetus from the

economy, the digital lifestyle and spending habits of the consumers and the

opportunities thrown open by the advancements in technology. All it has to do

is to cash in on the growth potential and the opportunities. The government, on

its part, needs to play a more active role in sorting out policy-related

impediments to growth. The industry needs to fight all roadblocks- such as

piracy- in a concerted manner, while churning out high-quality, world class end

products. The entertainment and media industry has all that it takes to be a star

performer of the Indian economy.

Key growth drivers

Television

Subscription revenues are projected to be the key growth driver for the

Indian television industry over the next five years. Subscription revenues will

increase both from the number of pay TV homes as well as increased

subscription rates. The buoyancy of the Indian economy will drive the homes,

both in rural and urban (second TV set homes) areas to buy televisions and

subscribe for the pay services. New distribution platforms like DTH and IPTV

will only increase the subscriber base and push up the subscription revenues.





Filmed entertainment

Indians love to watch movies. And advancements in technology are

helping the Indian film industry in all the spheres – film production, film

exhibition and marketing. The industry is increasingly getting more

corporative. Several film production, distribution and exhibition companies are

coming out with public issues. More theatres across the country are getting

upgraded to multiplexes and initiatives to set up more digital cinema halls in

the country are already underway. This will not only improve the quality of

prints and thereby make film viewing a more pleasurable experience, but also

reduce piracy of prints.

Print media

A booming Indian economy, growing need for content and government

initiatives that have opened up the sector to foreign investment are driving

growth in the print media. With the literate population on the rise, more people

in rural and urban areas are reading newspapers and magazines today. Also,





there is more interest in India amongst the global investor community. This

leads to demand for more Indian content from India. Foreign media too is

evincing interest in investing in Indian publications. And the internet today

offers a new avenue to generate more advertising revenues

Radio

The cheapest and oldest form of entertainment in the country, which was

hitherto dominated by the AIR, is going to witness a sea-change very shortly.

In 2005, the government opened up the sector to foreign investment – and this

is the key factor that will drive growth in this sector. As many as 338 licenses

are being given out by the Indian government for FM radio channels in 91 big

and small towns and cities. This deluge of radio stations will result in rising

need for content and professionals. New concepts like satellite, internet and

community radio have also begun to hit the market. Increasingly, radio is

making a comeback in the lifestyles of Indians.

Music

The industry has been plagued by piracy and had been showing very

sluggish growth over the last few years, both in India and globally. However,

‘mobile music’ and ‘licensed digital distribution’ services are projected to fuel

the recovery of the music industry the world-over. The pace of growth in

mobile music reflects the fact that consumers increasingly view their wireless

device as an entertainment medium, using those devices to play games and

listen to music, while carriers are actively promoting ancillary services such as

ringtones to boost average revenue per user. Ringtones currently constitute thedominant component of the mobile music market. Licensed digital distribution

services are also contributing significantly to growth in all regions.





Live entertainment

This segment of the entertainment industry, also known as event

management, is growing at a fast and steady rate. While this industry is stillevolving, Indian event managers have clearly demonstrated their capabilities in

successfully managing several mega national and international events over the

past few years. In fact, event managers are also developing properties around

events. The growing number of corporate awards, television and sports events

are helping this sector. With rising incomes, people are also spending more on

wedding, parties and other personal functions. However, issues like high

entertainment taxes in certain states, lack of world-class infrastructure and the

unorganized nature of most event management companies, continue to

somewhat check the potential growth in this segment of the industry.





Barriers to investment in the entertainment and media industry

A lot more investment can be drawn into the entertainment and media

industry if certain sectoral policy barriers can be addressed. Some of the issues

that need to be addressed which commonly impacts all segments and need to be

addressed urgently include:

1. Piracy

The problem of piracy assumes a different proportion in a country such

as India with an area of 3.3 million sq. km. and a population of over 1 billion

speaking 22 different languages. It impacts all segments of the industry

especially films, music and television. Most of the credible efforts today to

combat piracy have been initiated by industry bodies themselves. On part of the

government, lack of empowered officers for enforcement of anti-piracy laws

remains the key issue that is encouraging the menace of piracy. This, coupled

with the lengthy legal and arbitration process, is being viewed as a deterrent to

the crusade against pirates. The current Copyrights Act too is dated in terms of

technology improvements, and above all, it does not address the needs of the

electronic media which has maximum instances of piracy today. The draft of





the Optical Disc Law to address the need for regulating piracy at the

manufacturing stage is still lying with the ministry for approval.

2. Lack of a uniform media policy for foreign investment

The sector currently lacks a consistent and uniform media policy for

foreign investment. Some of the inconsistencies include different caps in

foreign direct investment in various segments. This is enumerated below:

Television distribution: DTH 49% (strategic FDI only 20%); cable 49%

(ownership can only be with India citizens). Content (news): Television and

print - 26%; radio - nil• Content (non-news): Television and print - 100%; radio

20% (only portfolio)

3. Level playing field with incumbents Most Sectors of the Indian E&M industry have traditionally operated under

various agencies of the Indian government, which were later opened to the

private players in various stages. FM radio is one such example where the

incumbent All India Radio (AIR) was the sole player in the medium of both

AM and FM radio broadcasting. Limited frequencies of FM broadcasting have

been opened to the private players but with a licence fee, which is not currently

applicable to the incumbent AIR. Similarly, in television segment, all terrestrial

broadcasting rights continue to be with the incumbent Doordarshan.





LITERATURE SURVEY

1.ADLABS TO SPIN DISTRIBUTION NETWORK

BY: MEENAKSHI VERMA ON TIMES NEWS NETWORK [TUESDAY,

APRIL 24, 2007 03:19:01 AM

NEW DELHI: ADAG-owned Adlabs Films is foraying into distribution of

non-Indian movies with Spiderman-3, in collaboration with Percept Picture

Company. Adlabs, which plans to distribute about 15-18 movies every year,

expects non-Indian movies to contribute 15% to the total distribution revenues

.

Says Adlabs Distribution COO Sunir Kheterpal: “We expect the

distribution business to contribute over Rs 100 crore this year, with about Rs 15

-18 crore expected to come from distribution of non-Indian movies.” Adlabs

will release over 250 prints — a major percentage of the total 600 prints being

distributed all over India — in territories like Mumbai, Gujarat, Delhi-NCR,

Uttar Pradesh and Punjab

.Adlabs has established overseas distribution offices in US and the UK in

2006, and domestic distribution offices in Delhi, UP, Punjab and Mumbai more

recently. The company aims to distribute six-eight Eng-lish movies every year,

of the total 15-18 films it would distribute in these territories.

“For a blockbuster English movie like Spiderman-3, rights are as ex-

pensive as that for any big budget Indian movie. But we also expect the number

of screens showcasing English movies to increase considerably,” Mr Kheterpal

said. Adlabs would be acquiring the DVD and satellite rights of the movies in

bulk and would sell it to broadcasters and DVD manufacturers as part of its

distribution model.





Having started its domestic distribution business with Mani Ratnam's Guru

in January 2007, Adlabs also released Black Friday (February 2007) and the

recent hit, Bheja Fry (April 2007). Adlabs' future re-leases include

Priyadarshan's Dhol, Anubhav Sinha's CASH, Mudassar Aziz's Dulha Mil

Gaya and Anurag Basu's Suicide Bomber.

According to the latest Ficci-PricewaterhouseCoopers report, the Indian film

entertainment industry, which currently stands at Rs 8,500 crore, will touch Rs

17,500-crore by 2011. Also, the home box office collection will increase to Rs

11,900 crore from Rs 6,400 crore and the home video market will grow to Rs

2,500 crore by 2011.

[email protected]

2. ADLABS ENTERS HOLLYWOOD

BY: BUSINESS LINE NEWS PAPER (THE HINDU GROUP OF

PUBLICATION) FRIDAY, JUNE 16, 2006

Mumbai, June 15

Adlabs Films Ltd is entering into mainstream Hollywood.

The Anil Ambani Group company has informed BSE that it has entered

into a co-production, film financing deal with Hyde Park Entertainment Group,

a production, financing and international sales company promoted by Mr

Ashok Amritraj.

Adlabs Films Ltd has earlier set up wholly owned subsidiaries in the UK

and the US for its overseas distribution of Indian films, film co-production and

post production business.





Mr Amritraj had announced at Frames 2006 that his company, Hyde Park

Entertainment Group, was looking at tie-ups with Indian companies for

producing films.

Shares of Adlabs moved up by Rs 14.75 to Rs 204.20 on BSE

3. BOX OFFICE HITS BRING HIGH RETURNS FOR MULTIPLEXES

BY: VIJAY GURAV AND SHUCHI VYAS ON TIMES NEWS

NETWORK [THURSDAY, APRIL 13, 2006 12:00:23 AM

MUMBAI: Multiplexes are not just about providing quality entertainment.

They also offered considerable money-making opportunities to investors on the

Indian bourses thanks to a sharp rally in the stocks of the country’s largest film

exhibition firms

Investors have earned handsome returns on their investments in shares of

listed companies like PVR, Inox Leisure, Shringar Cinemas and Adlabs Films.

Most of these stocks, except Shringar Cinemas, are currently quoting at new

highs. Of these companies, PVR and Inox Leisure were listed only in recent

months.

PVR is currently quoting at Rs 316, a 40% premium to the offer price of

Rs 225 per share. Inox Leisure gained significantly in less than two months of

its listing. At Monday’s closing of Rs 215, the share price has jumped 80%

over the offer price of Rs 120 per share

.

Adlabs Films is currently trading at Rs 405 against the offer price of Rs 120per share, while Shringar Cinemas at Rs 73 against Rs 53. Analysts say the film

exhibition business has a tremendous growth potential with the country’s

cinema-viewing people becoming more conscious about quality of

entertainment.





A lot of opportunities exist in the entertainment segment, which is also

reflected in the fact that large corporates like the ADAG have entered the field

with big investments. In ’05, ADAG acquired a 50.2% stake in Adlabs Films.

ADAG plans to expand its presence across the entertainment value-chain.

“The film exhibition segment is growing leaps and bounds due to the high

demand for quality family entertainment, as watching movies is one of the

foremost entertainment options in India. With the corporatisation of film

production, better movies targeted at a specific audience are increasing in

number, attracting more movie buffs,” said India Infoline in its report on the

prospects of film exhibition companies

.

Factors like retail boom, changing demographic profile, rising disposable

income and entertainment tax exemptions will drive the future growth of

companies running multiplexes, it said. Though prospects look promising, the

quality of cinemas and their box office collection will play a major role in

performance of multiplexes

.

There are also concerns that the industry may face an overcapacity. “With

operators eyeing the same catchment areas, it could lead to fragmentation of

the viewers and may lead to low occupancy and price wars,” the report stated.

“All the good news has been factored in as of now for the multiplex

industry, but future growth will be seen only if there is a blockbuster film with

an occupancy rate of 5.5 shows a day for a few months. Also, the expansion

plans will be on full steam in FY09 when capacity will triple,” says PhaniSekhar, analyst, Angel Broking.





MEDIA & ENTERTAINMENT

Block buster

The Rs 1,700-crore that investors have pumped into the sector is

changing the face of media & entertainment in India.

BY: BUSINESS WORLD SEPTEMBER 5, 2006

There is some fear and lots of apprehension in the PVR Cinemas head

office in Gurgaon, on the outskirts of Delhi. It is just a day after Reliance

Lands bought a majority stake in rival Adlabs for a whopping Rs 360 crore in

the biggest media deal in years. A nattily dressed Ajay Bijli looks unconcerned.

But the managing director of PVR has already cancelled a business trip abroad

to confabulate with his team. "I am not going to change focus. We will

continue to do what we are best at doing. We are a specialised exhibition

company that dabbles in distribution," he says.

At Rs 87 crore, PVR Cinemas is about the same size as Adlabs, in termsof screens and revenues. However, unlike Adlabs, which is into film

processing, production and distribution, PVR is focused on multiplexes. Now

suddenly, Bijli's rival has a Rs 250-crore fillip - the rest goes to one of the

promoters - and the backing of Anil Ambani's Reliance Lands. It seems

daunting against the Rs 76 crore Bijli raised from the Russia-based Sun Group

earlier this year. For PVR, the multiplex game is no longer about reaching 100

screens by 2006 because Reliance Adlabs is targeting 1,000.

Now Bijli is rethinking both, the speed of his expansion plans and his

capital needs. In December this year, PVR will hit the stockmarkets for an

initial





Public offering (IPO) of Rs 150 crore-180 crore. There are also reports that

Reliance Adlabs is in talks to acquire PVR Cinemas. Expect it to look for more

companies to acquire in its bid for scale.

In publishing, the same fear has a different colour. The launch of DNA

and Hindustan Times in Mumbai probably did not shake Bennett, Coleman and

Company (BCCL) as much as the HT Media IPO has. In August this year, HT

Media raised about Rs 400 crore, catapulting it among the top ten media IPOs

in Asia over 2004 and 2005. This follows two rounds of private equity funding

and gives HT Media a valuation of Rs 2,495 crore or over 90 times earnings.

This is very worrying for the Rs 1,808-crore BCCL, India's largest

media company. For decades, its biggest strength has been its cash reserves.

BCCL has used it to batter Hindustan Times in Delhi, or bleed rivals in other

cities. For decades, nobody could match its brute cash power. Now as investors

fall in love with media and entertainment (M&E), the money wall is crumbling.

This is evident in the shift of regional newspapers into the bastions of national

brands and vice versa. It is evident in the mammoth raises BCCL gave its

employees this year, the kind of people it is hiring. It is also evident in the

urgency with which it is stitching up many issues on its agenda - media space-

for-equity deals (called 'private treaties'), joint ventures with foreign partners

like BBC Worldwide and Dow Jones, and deals with investors like West

Bridge-Sequoia in Indiatimes.

And the love affair between media & entertainment companies and

investors has only just begun.





As investors' interest in the sector moves past its necking phase, it will

irrevocably change the landscape of the business in India. These are just the

first signs of the domestic havoc it could wreak. First, a low-down on the affair.

For years, investors have wanted to lay their hands on M&E companies

in India. But everything from bad regulation to shy owners kept them away. As

the over Rs 25,000-crore, old-fashioned industry expands plugging into the

potential of a young market full of spenders, capital is reaching out to it at just

the right time.

In the first eight months of 2005, M&E companies have raised over Rs

1,700 crore in venture capital, private equity and IPO money. In 30 deals across

the industry - spanning films, publishing, broadcasting and radio - companies

are in hush-hush negotiations with investment bankers or doing road shows for

their IPOs or courting other companies. Every week brings news of at least one

deal, usually in private equity. On an average, BW gets a call a week from

investment bankers looking for some of our past work on a media company or

asking what we make of a company. Two of the top five deals in 2005 -





Reliance-Adlabs and Nimbus-3i - have been from the M&E sector. (The

remaining have been in telecom, steel and liquor, according to India Advisory

Partners.

The deals and IPOs in Indian M&E are among the largest across Asia.

That makes India one of the most active M&E markets in the region after

China and Korea. The only parallels to the Reliance-Adlabs deal we could find

were in Korean Cable deals or Japanese mergers and acquisitions (M&As). The

only IPOs in Asia comparable with HT Media are Beijing Media (Rs 494

crore) and TV Tokyo (Rs 447 crore), both of which took place in 2004. "No

other market has seen such an explosion of private equity in Asia," says Vivek

Couto, executive director, Media Partners Asia, a Hong-Kong-based mediaconsulting firm.

Indeed, the biggest surprise is the private equity action. As a proportion

of the total private equity action across Asia, M&E has remained one per cent

or so for the last 2-3 years, according to Asian Venture Capital Journal (AVCJ)

data. Last year, the sector in India formed roughly 5 per cent of all private

equity deals. That figure has already doubled this year. "2005 is turning out to

be a blockbuster year for media sector investments," says Arun Natarajan,

editor, TSJ Media. It tracks private equity and M&A deals in India and Indian-

founded companies worldwide.

What makes India attractive is not just size or spending power, but its

chaotic democracy. It means we can read, write, make, watch and listen to

whatever we want. So investors have variety, and the market has a depth unlike

China or Korea. M&E has the potential to become to the Indian economy what

telecom already is - a beacon of its strong economic fundamentals and its rising

spending power.





The Flashback

Why is there so much scepticism about media and entertainment (M&E)

stocks? If you ignore the stockmarkets for a moment, you'll notice that the

fundamentals of the business have never been in better shape. For one, as V.

Devarajan, chief financial officer, Balaji Telefilms, notes: "The spending

pattern of Indians has changed." KSA Technopak data shows that the share of

M&E in the consumer's shopping basket went up from 9 per cent in 1999 to

14.3 per cent in 2003. So why are investors noticing it now? They had noticed

and responded to it earlier, but to disastrous results. That should explain the

current skepticism.

In 2000, when film companies began corporatising, there was a lot of

interest in M&E. Mukta Arts, Pritish Nandy Communications, Adlabs among

others raised money. But many failed to perform and the scrips started sliding

down. One reason was investors' immaturity, especially in understanding the

companies and segments. The second was that most companies that had listed

were film production houses. Globally, studios or film production companies

do not use IPOs for capital because of the unstable nature of the industry. They

opt for project finance or debt. With these options unavailable in India, many

hit the markets without understanding what it involved - corporate governance,

scaling up and lots of investor expectations.

Things changed in India with the TV Today and the NDTV listing. Both

consistently delivered on operating margins and stock price returns, and forced

the attention back to the sector. Add Balaji and Television Eighteen, earlier

listings, that were doing well.





"There has been a re-rating, not only because cash flows have increased,

but because more stable players are coming in," says Amol Dhariya of Karvy

Investor Services. Kapil Bagla, executive director, Centrum Capital, links it

also to the rise of mid-cap stocks. Soon, murmurs turned to a clamour and IPOs

like Deccan Chronicle, Cybermedia and UTV were oversubscribed. Finally,

"The Reliance-Adlabs deal put fuel into the fire," says Shravan Shroff, MD,

Shringar Cinemas.





RESEARCH METHODOLOGY

RESEARCH DESIGN

This research investigation is company-specific and highly qualitative innature. We generated data through a structured questionnaire blended with personal

interactions with all the key personnel of Adlabs and also with the group of 100

customers, selected on the basis of stratified random sampling method. The data so

generated are subject to qualitative treatment, by using the rating sales; and inferences

have been drawn accordingly.

TYPES OF RESEARCH

The type of research method used for this project IS Quantitative

research technique. In this methodology, people have been chosen randomly

and have been asked to respond to the questionnaires.

SAMPLING TECHNIQUE

In this project two types of sampling techniques have been used.

1. Simple random sampling.

2. Stratified Sampling.

Simple random sampling technique has been used for general questionnaire

as it avoids any kind of bias in choosing the sample. Stratified sampling has

been used in case of interaction with dealers as those dealers only were to be

interviewed who dealt with entertainment industry.

SAMPLE SIZE

The sample size chosen for the research is 100 out of which 96 are

general public and the rest 04 are dealers or people associated to entertainment

industry.





RESEARCH INSTRUMENTS

The research instrument used for this survey is questionnaire. The

reasons why this instrument is chosen are:-

• It is free from all bias.

• It covers a wide area.

• It helps in getting original data.

• Not expensive.

• It is easy to tabulate and understand.

DATA COLLECTION PROCESS:

Primary Research:

The primary data is collected through interviews and questionnaire.

Interviews:-

An interview can be qualitative, quantitative or a combination of both.

In a quantitative interview, the questions are predetermined and presented

together with multiple choice answers. Quantitative means that there must be

measurable results. A quantitative interview is conducted in an investigating

situation, which resembles an every day situation and an ordinary conversation.

The answer to the questions shall be spontaneous and be a result of the

interviewee’s own opinion.

Both, quantitative and qualitative interviews are opposite of each other.

In a quantitative interview the difficulty is in preparing the questionnaire

whereas in qualitative interview a lot of effort is required in analysis.





The approach used in this research is quantitative interview

methodology. We selected this methodology because it is found easier to get

the responses from the sample within a limited time frame.

SECONDARY RESEARCH

The major source of secondary data is Internet from where collected all

the relevant information available about this product, about the companies

which brought this product in the existing market.

We also collected information regarding the boom in entertainment

industry in India and the growth of this industry in Indian market. Various

other information of interest has also been collected.

RESEARCH LIMITATIONS

• This research investigation is company-specific and is limited to one

geographical area. It is also restricted to a limited to sample size. The

problem of generalization is, therefore, obvious

• Time and resource constraints

• An interpretation of the study is based on the assumption thatrespondents have given correct information.

As the basis to achieve the above objectives, we sought to validate the

following customer satisfaction/dissatisfaction matrices:





Customer Satisfaction

Customer delivered value

Customer expectations

Customer delivered value

Satisfaction

Dissatisfaction

satisfactionsatisfaction

dissatisfactiondissatisfaction

Motivation tosearch for variety/ better performance

Boredom withthe familiar/new

comparisons

The Dissatisfaction Cycle





The Dissatisfaction Cycle

attention Z o

n e o f

C o m p

e t i t i v e

v u l n e

r a b i l i t y

time

n e w

m a r k e t i

n g i n i t i

a t i v e

n e w

m a r k e t i n

g i n i t i

a t i v e

S a t i s

f a c t i o

n

r e n e w a ls a t i s f a c t i o n d e c a y

s a t i s f a c t i o n d e c a y

e x

c i t e

m e

n t

attention

dissatisfaction dissatisfaction

S a t i s

f a c t i o

n

r e n e w

a l

boredom boredom





PROFILE OF THE RESPONDENTS

Age Profile:

Graph 1

Graph showing different age groups of respondents who are

aware of Adlabs Entertainment Industry

Age (in years)

<20

6%

20-30

42%

30-40

34%

40-50

15%

>50

3%

<20 20-30 30-40 40-50 >50





Occupation Profile

Graph no: 2

Graph showing number of occupational respondents should

aware of Adlabs Entertainment Industry.

Occupation profile

Self Employed,

2

Service

person, 64

Students, 18

Unemployed, 6

Others, 10

Self Employed Service person Students Unemployed Others

Gender profile





Graph no 3

Graph showing the total number of males and females who are

aware of Adlabs Entertainment Industry

70%

30%

male

female





DATA ANALYSIS & INFERENCE

Table No: 1

AWAREMESS LEVEL

Table showing the number of respondents who are aware of Adlabs

Yes 73%

No 27%

Source: Field Investigation

INFERENCE:

73% people stated that they are aware of Adlabs and 27% of people

stated that they are not aware of Adlabs; the bar chart shows that out of 100,

73% of the people do aware of adlabs entertainment industry

Graph No: 4

Graph showing the number of respondents who are aware of Adlabs

73

27

0

20

40

60

80

exact percentage

of respondents

no of respondents

yes

no





Table No.2

SOURCES OF AWARENESS

Table showing the sources through which the respondents came to

know about Adlabs

Friends 20%

Neighbours 18%

Family members 28%

Advertisements 30%

others 04%


INFERENCE:

The above table shows the majority of the respondents came to know

about Adlabs through advertisements and family members.

Graph No: 5

Graph showing the sources through which the respondents came to

know about Adlabs.

20%

18%

28%

30%

4%

Friends

Neighbours

Family Members

Advertisements

others





Table No: 3

SATISFACTION/DISSATISFACTION WITH THE ADLAB'S

SERVICES

Table showing the number of respondents who are satisfied with the

services offered by Adlabs

Yes 58%

No 42%


INFERENCE:

The above table shows 58% of the customers are satisfied with the

services offered by Adlabs and 42% of the customers are not satisfied with

the services of Adlabs,

Graph No: 6

Graph showing number of respondents satisfied/dissatisfied with the

services offered by Adlabs Entertainment Industry

58%

42%

0%

10%

20%

30%

40%

50%

60%

exactperce

ntage of

respondent

s

total no of respondents





Table no: 4

HAPPINESS OR OTHERISE WITH ADLABS IMAX AND

EXCLUSIVE THEATRE SERVICES

Table showing the number of respondents who are happy or otherwise

with Adlab's IMAX and exclusive theatre services

yes 67%

No 33%


INFERENCE:

The above table shows 67% of people are happy with Adlabs IMAX

and exclusive theatre services where as 33% people stated that they are not

happy with the Adlabs IMAX,

Graph no: 7

Graph showing the number of respondents who are happy with Adlab's

IMAX and Exclusive Theater Services

67%

33%

0%10%

20%

30%

40%

50%

60%

70%

exact

percentage

of

respondent

s


Yes

No





Table No: 5

EFFECTIVENSS OF ADLABS PROMOTIONAL ACTIVITIES

Table showing the number of respondents who stated that Adlabs

promotional activities are effective

Yes 62%

No 38%


INFERENCE:

The above table shows that 62% of the respondents stated that Adlabs

promotional activities are effective whereas 38% of people stated that

Adlabs promotional activities are ineffective.

Graph No: 8

Graph showing the number of respondents who said that Adlabs

promotional activities are effective.

62%

38%

0%

10%

20%

30%

40%

50%

60%

70%

exact

percentage of

respondents


yes

No





Table No: 6

RANKINGS OF EFFECTIVENESS

Table showing rating given by the respondents for promotional

activities of Adlabs in terms of effectiveness

Mark 1 to be the least and 5 to be highly effective.

Rate 1 21%

Rate 2 18%

Rate 3 15%

Rate 4 23%

Rate 5 23%


INFERENCE:

The above table shows that 23% of respondents rated 5 for promotional

activities of Adlabs in terms of effectiveness whereas 21% and 18%

respondents rated 1 and 2 for promotional activities of Adlabs in terms of

effectiveness.

Graph No: 9

Graph showing the ratings given by the respondents for promotional

activities of Adlabs in terms of effectiveness

23%

15%

18%

21%23% Rated 1

Rated 2

Rated 3

Rated 4

Rated 5





Table No: 7

EFFECTIVENESS OF ADLAB'S FUN INNOVATION

Table showing the number of respondents who stated that Adlab's fun

innovation is very effective for different age groups

Between 15-25 63%

Between 26-35 21%

Between 36-45 9%

Between 46-55 5%

Above 55 2%


INFERENCE:

The above table shows that 63% of respondents stated that Adlabs fun

innovation is very effective for the age group between 15 and 25 and

whereas only 5% of people stated that Adlabs fun innovation is effective for

the age group of 46 and 55; we can infer that Adlabs fun innovation is very

much effective for the youth.

Graph No: 10

Graph showing the number of respondents who stated that Adlab's fun

innovation is very effective for different age groups of people

63%21%

9%5%

2%

Between 15-25

Between 26-35

Between 36-45

Between 46-55Above 55





Table No: 8

MARKET LEADERSHIP IN THE PROCESSING OF HINDI FILMS

Table showing number of respondents who stated that Adlabs is the

market leader in the processing the largest number of Hindi films every

year

Yes 64%

No 36%


INFERENCE:

The above table shows that 64% of respondents stated that Adlabs is the

market leader in the processing the largest number of Hindi films every year

whereas 36% stated that Adlabs is not the market leader processing the

largest number of Hindi films every year.

Graph No: 11

Graph showing the number of respondents who stated that Adlabs is

the market leader in the processing the largest number of Hindi films

every year

64%

36%

0%10%

20%

30%

40%

50%

60%

70%

exact

percentage of

respondents


Yes

No





Table No: 9

EFFECTIVENESS OF ADLABS 3D IMAX FLAT SCREEN

Table showing number of respondents who stated that Adlabs 3D

IMAX flat screen is very effective

Yes 71%

No 29%


INFERENCE:

The above table shows that 71% of respondents stated that Adlabs 3D

IMAX flat screen is very effective whereas 29% of respondents stated that

Adlabs 3D IMAX flat screen is not effective.

Graph No: 12

Graph showing the number of respondents who stated that Adlabs 3D

IMAX flat screen is very effective

0%

10%

20%

30%

40%

50%

60%

70%

80%

exact

percentage

of

respondent

s

total no.of respondents

Yes

No





Table No: 10

FREQUENCY OF VISITS TO ADLABS

Table showing number of respondents who indicated the frequency of

their visits to Adlabs (monthly)


INFERENCE:

The above table shows that 43% of respondents visit Adlabs once in a

month whereas only 12% of respondents visit Adlabs four times in a month.

Graph No: 13

Graph showing number of respondents who indicated their frequency

of visit to Adlabs (monthly)

43%

25%

20%

12%

Once

Twice

Thrice

Four times

Once 43%

Twice 25%

Thrice 20%

Four times 12%





Table No: 11

YOUTH ORIENTATION OF ADLABS TELEVISION CAREERS

Table showing number of respondents who agreed that Adlabs

television careers are youth -oriented

Yes 58%

No 42%


INFERENCE:

The above table shows 58% of respondents are of the opinion that

Adlabs television career are youth -oriented whereas only 42% of

respondents stated that it is not youth- oriented

Graph No: 14

Graph showing the number of respondents who opinioned that Adlabs

television career is youth-oriented.

58%

42%

0%

10%

20%

30%

40%

50%

60%

exact

percentage of

respondents


Yes

No





Table No: 12

PROVISION OF ENTERTAINMENT SERVICES AT LOWER

PRICE

Table showing the number of respondents who hold the opinion that

Adlabs provides the entertainment services at lower cost of price

Yes 43%

No 57%


INFERENCE:

The above table shows 43% of respondents stated that Adlabs is

providing the entertainment services at lower price whereas 57% of

respondents stated that Adlabs is providing the entertainment services at

higher price.

Graph No: 15

Graph showing the number of respondents who stated that Adlabs is

Providing the entertainment services at lower price

43%

57%

0%

10%

20%

30%

40%

50%

60%

exact

percentage of

respondents


Yes

No





Table No: 13

TECHNOLOGY OF ADLABS ENTERTAINMENT HUB

Table showing the number of respondents who stated that the Adlabs

Entertainment hub has the cutting the edge technology

Yes 43%

No 57%


INFERENCE:

The above table shows that 43% of respondents stated that the Adlabs

entertainment hub has the cutting the edge of technology, whereas 57% of

respondents stated that Adlabs entertainment hub does not possess the

cutting the edge of technology.

Graph no: 16

Graph showing the number of respondents who stated that the Adlabs

Has the cutting edge technology

0%

10%

20%

30%

40%

50%

60%

exact

percentag

e of

responden

ts


Yes

No





MAJOR RESEARCH FINDINGS

The following findings emerge from our data analysis and inference:

1) Most of the respondents are aware of the Adlabs Entertainment Industry

- production, distribution, processing or in cinemas.

2) The respondents have come to know of ADLABS entertainment

services through friends, advertisements, family members

3) Most of the respondents satisfied with the services offered by Adlabs

Entertainment Industry and most of the respondents are satisfied withthe Adlabs IMAX and exclusive theatre services.

4) Most of the respondents stated that Adlabs promotional activities are

very effective and indicated the ratings of Adlabs promotional activities

on the basis of services offered by Adlabs.

5) Most of the respondents stated that Adlabs fun innovation is very much

effective for all types of people including youths to old age people.

6) Most of respondents stated that Adlabs is the market leader in the

processing of the largest number of Hindi films every year and most of

respondents have stated that Adlabs 3D IMAX flat screen is very

effective.

7) Only a few respondents visit Adlabs four times in a month whereas most

of the respondents visit once or twice in a month.





8) Some respondents agreed that Adlabs is providing the entertainment

services at lower price and some of them also stated that the Adlabs

entertainment hub has the cutting the edge technology.

Conclusions:

Adlabs entertainment industry is a market leader in production,

distribution, processing of cinemas by providing 3D IMAX and exclusive

theatre service to the customers. Adlabs promotional activities is very

effective and the respondents have rated Adlabs promotional activities on the

basis of services offered by Adlabs and fun innovation is very much effective

for all types of people including youths.





RECOMMENDATIONS

Adlabs should include all age groups for entertainment services and

it needs to link up with other major players like Zee telefilm etc in

the movie industry for better management of their entertainment

services

They should carry out customer research periodically and conduct

operations according to their customers' perceptions and expectations

They should advertise to a greater extent about their services so to

increase the awareness level of its services

Higher budget allocation is needed for the promotional activities.

They should open branches in cities like Mysore, Hassan (these two

cities carry considerable market potential) and need more banners to

make public more aware of the entertainment services

Constant innovation is needed which will provide distinctive

competitive advantage to the ADLABS

We believe that the aforesaid recommendations would make ADLABS more

vibrant in the market and sustain its market leadership.





ANNEXURE

1. SELECT BIBLIOGRAPHY(a) Books:

• "Services Marketing: People, Technology, Strategy" by Christopher

Lovelock, Jochen Wirtz, and Jayanta Chatterjee ,Pearson Education

Publications 2007

• "Handbook of Services Marketing & Management" by T A Schwartz

and D Iacobucci, Sage Publications, 2000

• "Services Marketing" by Ronald T Rust, Anthony J Zahorik and

Timothy L Keiningham, Addison-Wesley Publications, 2000

• "Services Marketing" by Valarie A Zeithaml and Mary Jo Bitner,

TMH Publications, 2006

• 'Services Marketing" by Helen Woodruff, Macmillan India Ltd.,

Publications, 2000

(b)Entertainment magazines:

1) Indian media

2) Film fare

3) Stardust

4) Femina





©News papers:

1) Times of India

2) Business standard

3) Economic Times

4) Business World

(d) Journals

• Journal of Services Marketing

• Journal of Marketing

• Journal of Marketing Management (ICFAI)

• Survey (Indian Institute of Social Welfare and Business Management

• South Asian Journal of Management

• A & M (Back Volumes)

• Fortune

• Journal of Advertising

• Services Marketing Quarterly (Best Business Books)

• Business India

(e)Websites:

www.adlabsindia.com

www.google.co.in

www.mamma.com www.altavista.com

www.answers.com





2. QUESTIONNAIRE

(Please put mark in the appropriate box provided

1. Personal Information

a. Name :

b. Age :

c. Profession :

d. Place :

2. Are you aware of Adlab's entertainment industry?

Yes No

3. If yes, how did you come to know about this entertainment industry?

Friends neighbours

Family members advertisements

Others (Please specify):

4. Are you satisfied with the services offered by Adlabs entertainment?

Yes No





5. Are you happy with Adlabs IMAX and exclusive theater services?

Yes No

6. Are Adlab's promotional activities effective?

Yes No

7. If yes how much do you rate promotional activities in terms of

effectiveness?

Mark 1 to be the least and 5 to be highly effective.

1 2 3 4 4 5

8. For which age group of people, is Adlab's fun innovation very effective?

Between 15-25 between 26-35

Between 36-45 between 46-55

9. Adlabs is the market leader, processing the largest number of Hindi films

every year with a record-breaking number of prints. Do you agree to this

statement?

Yes No

10. Is Adlabs 3D IMAX flat screen is very effective?

Yes No





11. How many times will you visit Adlabs entertainment industry (monthly)?

Once twice

Thrice four times

12. Adlabs television, careers, movies contents are only youth- oriented

programs.

Do you agree to this statement?

Yes No

13. Is Adlabs providing the entertainment services at lower cost of price?

Yes No

14. Is Adlabs the entertainment hub for cutting edge technology?

Yes No

15. Please give your recommendations for enhancing the utility of the

Adlabs services------------------------------------------------------------------------

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THANK YOU




3. DIRECTIONS FOR FURTHER RESEARCH:

• A Diagnostic Study of Customers' Perceptions and Expectations

of Entertainment Industry

• Market Gap Analysis of ADLABS Entertainment Services

• Customer Satisfaction of ADLABS Entertainment Services by

using Multi-attribute Analysis

• Customer Delight: Managerial Insights in Entertainment Industry.

• Market Leadership Strategies-- Creating Growth, Profits and

Customer Loyalty in Entertainment Industry

----X---

Manjunath-0540-Mktg. of Entertainment Services at ADLABS

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