Manjunath-0540-Mktg. of Entertainment Services at ADLABS

Marketing Of Entertainment Services At Adlabs, Bangalore
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
M.P.BIRLA INSTITUTE OF MANAGEMENT
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 ENTERTAINMENT SERVICES AT ADLABS, BANGALORE 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 Date:
(DR. Nagesh S Malavalli) Principal
CERTIFICATE
I hereby certify that this dissertation entitled MARKETING OF ENTERTAINMENT SERVICES AT ADLABS, BANGALORE is the project work carried out by Mr. Manjunatha S.P under my guidance and supervision
Place: Bangalore Date:
(Dr K V Prabhakar) 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 2 3 4
EXECUTIVE SUMMARY INTRODUCTION TO ENTERTAINMENT AND MEDIA INDUSTRY PROFILE OF ADLABS ANALYTICAL FRAMEWORK OF MARKETING OF ENTERTAINMENT SERVICES LITERATURE SURVEY RESEARCH METHODOLOGY PROFILE OF THE RESPONDENTS
1-2 3-9 10-14 15-25
5 6 7
26-35 36-40 41-43
DATA ANALYSIS AND INFERENCES
44-56
MAJOR RESEARCH FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ANNEXURE SELECT BIBLIOGRAPHY QUESTIONNAIRE DIRECTIONS FOR FURTHER RESEARCH
57-59
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60-65
LIST OF TABLES
SL.NO 1
TABLE TITLES TABLE SHOWING HOW RESPONDENTS ARE AWARE OF ADLABS TABLE SHOWING SOURCES THROUHG WHICH RESPONDENTS CAME TO KNOW ABOUT ADLABS TABLE SHOWING NUMBER OF RESPONDENTS WHO ARE SATISFIED WITH THE SERVICES OFFERED BY ADLABS TABLE SHOWING NUMBER OF RESPONDENTS WHO ARE HAPPY WITH ADLABS IMAX AND EXCLUSIVE THEATRE SERVICES TABLE SHOWING NUMBER OF RESPONDENTS WHO STATED ADLABS PROMOTIONAL ACTIVITIES ARE EFFECTIVE TABLE SHOWING RATINGS GIVEN BY THE RESPONDENTS FOR PROMOTIONAL ACTIVITIES OF ADLABS IN TERMS OF EFFECTIVENESS TABLE SHOWING THE NUMBER OF RESPONDENTS WHO STATED THAT ADLAB'S FUN INNOVATION IS VERY EFFECTIVE FOR DIFFERENT AGE GROUPS OF PEOPLE TABLE SHOWING NUMBER OF RESPONDENTS WHO STATED THAT ADLABS IS THE MARKET LEADER IN THE PROCESSING OF THE LARGEST NUMBER OF HINDI FILMS EVERY YEAR TABLE SHOWING NUMBER OF RESPONDENTS WHO STATED THAT ADLABS 3D IMAX FLAT SCREEN IS VERY EFFECTIVE TABLE SHOWING NUMBER OF RESPONDENTS WHO INDICATED THE FREQUENCY OF THEIR VISITS TO ADLABS (MONTHLY)
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TABLE SHOWING NUMBER OF RESPONDENTS WHO AGREED THAT ADLABS TELEVISION CAREERS ARE YOUTH- ORIENTED TABLE SHOWING NUMBER OF RESPONDENTS WHO HOLD THE OPINION THAT ADLABS PROVIDES THE ENTERTAINMENT SERVICES AT LOWER COST OF PRICE TABLE SHOWING NUMBER OF RESPONDENTS WHO STATED THAT THE ADLABS ENTERTAINMENT HUB HAS THE CUTTING THE EDGE TECHNOLOGY
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LIST OF GRAPHS
SL.NO 1 GRAPHS TITLE GRAPH SHOWING DIFFERENT AGE GROUPS OF RESPONDENTS WHO ARE AWARE OF ADLABS ENTERTAINMENT INDUSTRY GRAPH SHOWING NUMBER OF OCCUPATIONAL RESPONDENTS SHOULD AWARE OF ADLABS ENTERTAINMENT INDUSTRY. GRAPH SHOWING NUMBER OF MALES AND FEMALES WHO ARE AWARE OF ADLABS ENTERTAINMENT INDUSTRY GRAPH SHOWING THE NUMBER OF RESPONDENTS WHO ARE AWARE OF ADLABS GRAPH SHOWING SOURCES THROUGH THE RESPONDENTS HAVE COME TO KNOW OF ADLABS ENTERTAINMENT SERVICES GRAPH SHOWING NUMBER OF RESPONDENTS WHO ARE SATISFIED WITH THE SERVICES OFFERED BY ADLABS GRAPH SHOWING NUMBER OF RESPONDENTS WHO ARE HAPPY WITH ADLABS IMAX AND EXCLUSIVE THEATRE SERVICES GRAPH SHOWING NUMBER OF RESPONDENTS WHO SAID THAT ADLABS PROMOTIONAL ACTIVITIES ARE EFFECTIVE GRAPH SHOWING RATINGS GIVEN BY THE RESPONDENTS FOR PROMOTIONAL ACTIVITIES OF ADLABS IN TERMS OF EFFECTIVENESS PAGE NO 41
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GRAPH SHOWING THE NUMBER OF RESPONDENTS WHO STATED THAT ADLAB'S FUN INNOVATION IS VERY EFFECTIVE FOR DIFFEENT AGE GROUPS OF PEOPLE GRAPH SHOWING NUMBER OF RESPONDENTS WHO STATED THAT ADLABS IS THE MARKET LEADER IN THE PROCESSING OF THE LARGEST NUMBER OF HINDI FILMS EVERY YEAR GRAPH SHOWING NUMBER OF RESPONDENTS WHO STATED THAT ADLABS 3D IMAX FLAT SCREEN IS VERY EFFECTIVE GRAPH SHOWING NUMBER OF RESPONDENTS WHO INDICATED THE FREQUENCY OF THEIR VISITS TO THE ADLABS (MONTHLY) GRAPH SHOWING NUMBER OF RESPONDENTS WHO OPINIONED THAT ADLABS TELEVISION CAREER IS YOUTH- ORIENTED GRAPH SHOWING NUMBER OF RESPONDENTS WHO STATED THAT ADLABS IS PROVIDING THE ENTERTAINMENT SERVICES AT LOWER PRICE GRAPH SHOWING NUMBER OF RESPONDENTS WHO STATED THAT THE ADLABS ENTERTAINMENT HUB HAS THE CUTTING THE EDGE TECHNOLOGY
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EXECUTIVE SUMMARY
Entertainment Industry today is being re-definedin 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 moviemaking business. The Television Industry continues to boom - new channels being launched and new content formats emerging such as reality shows, niche and kids 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 years 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.
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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.
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INTRODUCTION TO ENTERTAINMENT & MEDIA INDUSTRY

Today, 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 in entertainment 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
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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 subscriptionbased 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
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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 and pay-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
M.P.BIRLA INSTITUTE OF MANAGEMENT 15
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 advertising services.
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

Todays 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 trillion shifting towards the Asian region, India is well poised to garner a sizable share of it. Indias 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.
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Entry of new players

The year 2005 saw the entry of new players across all segments of the E&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.
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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 Indias 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 employees growth as it is about its own success
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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.
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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 Indias 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 employees 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.
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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 well known 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 wellappointed 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
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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 highend 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.
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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
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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 entertainment industry. 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.
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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', videoparlors 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 to customers, 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.
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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.
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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,
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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 the dominant component of the mobile music market. Licensed digital distribution services are also contributing significantly to growth in all regions.
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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 still evolving, 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.
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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.
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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 expensive 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.
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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.
meenakshi.verma@timesgroup.com 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.
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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 countrys 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 Mondays 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 120 per share, while Shringar Cinemas at Rs 73 against Rs 53. Analysts say the film exhibition business has a tremendous growth potential with the countrys cinema-viewing entertainment. people becoming more conscious about quality of
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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 Phani Sekhar, analyst, Angel Broking.
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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 terms of 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
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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 spacefor-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.
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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 -
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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 media consulting 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 Indianfounded 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.
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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.
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"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.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
This research investigation is company-specific and highly qualitative in nature. 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.
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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 interviewees 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.
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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 that respondents have given correct information.
As the basis to achieve the above objectives, we sought to validate the following customer satisfaction/dissatisfaction matrices:
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Customer Satisfaction
Customer delivered value Satisfaction Customer expectations Dissatisfaction Customer delivered value
The Dissatisfaction Cycle
satisfaction satisfaction
Boredom with the familiar/new comparisons Motivation to search for variety/ better performance
dissatisfaction dissatisfaction
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The Dissatisfaction Cycle

at ive in iti g ke tin g ke ti n in iti at ive
lit y of erabi ne Z o v u ln e tiv et i
ar
ne w
attention
ne
ar
attention
Co mp
excitement
Sat isfa ctio
dissatisfaction
dissatisfaction boredom boredom
time
Sa t
isfa ctio
n r ene wal
n r ene wa l
sa ct fa tis n io y ca de
sa tis n io ct fa y ca de
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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)
40-50 15%
>50 <20 3% 6%
20-30 42% 30-40 34%
<20
20-30
30-40
40-50
>50
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Occupation Profile
Graph no: 2
Graph showing number of occupational respondents should aware of Adlabs Entertainment Industry.
Occupation profile
Others, 10 Unemployed, 6
Self Employed, 2
Students, 18
Service person, 64
Self Employed
Service person
Students
Unemployed
Others
Gender profile
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Graph no 3 Graph showing the total number of males and females who are aware of Adlabs Entertainment Industry
30% male female 70%
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DATA ANALYSIS & INFERENCE

Table No: 1 AWAREMESS LEVEL Table showing the number of respondents who are aware of Adlabs Yes No 73% 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 80 60 exact percentage 40 of respondents 20 0 no of respondents 27 yes no
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Table No.2 SOURCES OF AWARENESS Table showing the sources through which the respondents came to know about Adlabs Friends Neighbours Family members Advertisements others
Source: Field Investigation
20% 18% 28% 30% 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.
4%
20% Friends Neighbours Family Members 18% Advertisements others
30%
28%
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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 No Source: Field Investigation 58% 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
60% 50% exactperce 40% ntage of 30% respondent 20% s 10% 0%
58% 42%
total no of respondents
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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 No
67% 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
70% 60% exact 50% percentage 40% of 30% respondent 20% s 10% 0%
67%
33% Yes No
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Table No: 5 EFFECTIVENSS OF ADLABS PROMOTIONAL ACTIVITIES Table showing the number of respondents who stated that Adlabs promotional activities are effective
Yes No
62% 38% Source: Field Investigation
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.
70% 60% 50% exact 40% percentage of 30% respondents 20% 10% 0%
62% 38% yes No
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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 Rate 2 Rate 3 Rate 4 Rate 5 Source: Field Investigation 21% 18% 15% 23% 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%
21%
Rated 1 Rated 2 18% Rated 3 Rated 4 Rated 5
23% 15%
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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 Between 26-35 Between 36-45 Between 46-55 Above 55 Source: Field Investigation
63% 21% 9% 5% 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
2% 5% 9% 21% Between 15-25 Between 26-35 Between 36-45 63% Between 46-55 Above 55
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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 No Source: Field Investigation
64% 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
70% 60% 50% exact 40% percentage of respondents 30% 20% 10% 0%
64%
36% Yes No
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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 No
71% 29%
Source: Field Investigation 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
80% 70% exact 60% percentage 50% of 40% respondent 30% 20% s 10% 0% total no.of respondents
Yes No
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Table No: 10 FREQUENCY OF VISITS TO ADLABS Table showing number of respondents who indicated the frequency of their visits to Adlabs (monthly) Once Twice Thrice Four times Source: Field Investigation 43% 25% 20% 12%
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)
12%
20%
43%
Once Twice Thrice Four times
25%
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Table No: 11 YOUTH ORIENTATION OF ADLABS TELEVISION CAREERS Table showing number of respondents who agreed that Adlabs television careers are youth -oriented
58% 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% 60% 50% 40% exact percentage of 30% respondents 20% 10% 0% total no.of respondents 42%
Yes No
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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
43% 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
57% 60% 50% 40% exact percentage of 30% respondents 20% 10% 0% total no.of respondents 43%
Yes No
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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 No
43% 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
60% exact percentag e of responden ts 50% 40% 30% 20% 10% 0% total no.of respondents Yes No
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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 with the 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.
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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.
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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.
69
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
70
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
71
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
72
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 statement? Yes No year with a record-breaking number of prints. Do you agree to this
10. Is Adlabs 3D IMAX flat screen is very effective? Yes No
73
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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------THANK YOU
74
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---
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Marketing Of Entertainment Services At Adlabs, Bangalore

MARKETING OF ENTERTAINMENT SERVICES AT ADLABS, BANGALORE

BY MANJUNATHA S.P. Reg.No-05XQCM6045

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Place: Bangalore Date: (MANJUNATHA S.P)

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Place: Bangalore Date:

(DR. Nagesh S Malavalli) Principal

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Place: Bangalore Date:

(Dr K V Prabhakar) Senior Professor

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Place: Bangalore Date: (MANJUNATHA S.P)

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

1-2 3-9 10-14 15-25

26-35 36-40 41-43

DATA ANALYSIS AND INFERENCES

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

INTRODUCTION TO ENTERTAINMENT & MEDIA INDUSTRY

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Issues related to control include:

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Marketing Of Entertainment Services At Adlabs, Bangalore

Marketing Of Entertainment Services At Adlabs, Bangalore

Entertainment and media industry in India

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

Entry of new players

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT

Marketing Of Entertainment Services At Adlabs, Bangalore

ANALYTICAL FRAMEWORK OF MARKETING OF ENTERTAINMENT SERVICES

M.P.BIRLA INSTITUTE OF MANAGEMENT