Building a Successful Movie Theatre in Surat, Gujarat: A Market Research Case Study
Client: A client seeking to establish a new movie theatre in Surat, Gujarat, approached Stratefix Consulting for market research and strategic guidance.
The client required detailed market research and insights into:
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- Finding Unique Selling Points (USPs) and key differentiators for a new Theatre.
- Market-aligned ticketing prices.
- Effective market positioning strategy.
- Gaps in the current movie theatre market.
- Growth drivers and variations across regions and segments.
- Leading market players, their strategies, and market share.
- Upcoming regulatory changes and player adaptation strategy.
Our Methodology
● Primary Research
- In-depth interviews with the client’s workforce and management to understand operational experience alongside gathering insights into the local market.
- We identified existing Local & National brands. Identified brands holding the largest market share in India.
- Site visits to existing movie theatres in Surat, Gujarat to identify current offerings, gaps, and areas for improvement.
- We gathered insights from different competitors to understand operational experiences. Example: Understanding peak hours, concession preferences, and in-demand movie genres from ticketing and concession staff.
● Secondary Research
- We conducted detailed analysis of market research reports, industry publications, and competitor sites.
- Demographic data analysis to understand the target audience in Surat, Gujarat (age, gender, income, location, etc.). Example: Younger audiences favoured action movies and prefer online ticketing, while families might seek children’s movies and value combo deals.
Market Analysis
● Five Forces Analysis
- Buyer Bargaining Power: High – Moviegoers have multiple options with varying ticket prices and experiences.
- Supplier Bargaining Power: Moderate – Negotiation power exists with film distributors but is balanced by the presence of multiple studios.
- Threat of New Entrants: Moderate – Capital investment and competition can be barriers, but the market is open to new players.
- Threat of Substitutes: High – Streaming services and in-home entertainment options pose a significant threat.
- Competitive Rivalry: High – Existing multiplexes and independent theatres compete for audience share.
● PESTLE Analysis
- We considered Political, Economic, Social, Technological, Legal, and Environmental factors affecting the market. Example: Potential tax breaks for the entertainment industry or changes in licensing regulations could impact the business
● Segmentation Analysis
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- Demographic: Detailed analysis of moviegoers’ age groups, income levels, family status, and location helps tailor offerings and pricing strategies.
- Psychographic: We also analysed movie preferences, genre choices, and desired experiences can guide content selection and promotional strategies.
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- Identifying key players in Surat, Gujarat and nationally.
- A major competitor focuses on luxury experiences and another emphasises on regional content.
- Analysing their USPs, pricing strategies, target audience, and marketing tactics.
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Key Findings
● Gaps in the Market
- Lack of diversity in movie formats (e.g., IMAX, 3D) or alternative viewing experiences (e.g., luxury recliner seats, in-theatre dining).
- Limited options for niche audiences (e.g., independent or art-house films).
- Inconvenient locations or lack of amenities (e.g., parking, dining options).
● Growth Drivers
- Factors like rising disposable income, increasing urbanization, and a growing preference for out-of-home entertainment are driving the market.
- Growing demand for premium viewing experiences.
- Technological advancements in cinema technology.
Client Deliverables
● USP Recommendations: Based on identified gaps, we recommended the client to consider these unique features like:
- Specializing in specific genres or offering a wider variety of independent films.
- Implementing innovative theatre formats or premium amenities.
- Focusing on a family-friendly experience with play areas or in-theatre childcare options.
- Stratefix’s analysis also revealed under-served market segments. The targeted area lacked a theatre specializing in children’s movies and birthday party packages.
● Market Positioning Strategy
- Targeting a specific audience segment (e.g., families, young adults, movie buffs) based on market research and competitor analysis.
- Hosting unique events to gain brand awareness
● Ticketing Price Strategy
- We helped them in analysing competitor pricing and local market trends to determine an optimal price point.
- We recommended offering flexible pricing structures (e.g., discounts for weekdays, matinees, or specific demographics).
- We suggested to offer a lower base ticket price than luxury multiplexes but introducing premium options like recliner seats at a higher cost.
- Developed a detailed business plan outlining the chosen USP, target market, marketing strategy, and financial projections.
- Road map to embrace technological advancements to enhance the movie-going experience. Implementing sustainable practices to reduce the environmental impact.
By implementing data and research-driven approach, Stratefix Consulting empowered the client to make informed decisions, increasing the chances of success in the competitive movie theatres and entertainment industry.
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