Entertainment Industry - Stratefix Consulting

Entertainment Industry

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: 

    • 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
      • 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. 
Competitive Landscape
      • 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. 

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. 

Do you have the next big IDEA? Reach out today for personalized strategies and expert guidance.