Inox, PVR plan to leverage sub-brands strategy, expand viewer footprint

The two cinema exhibitors battle it out with differentiated experiences and an array of extensions

To wrest a larger share of the market and the moviegoer’s wallet, the two cinema exhibitors, PVR and Inox, are stripping the parent brand into a basket of sub brands. Taking a cue from consumer brands that have mastered the art of extensions, the two are investing in a brand architecture where the parent  spawns multiple labels; each with an additional or differentiated feature, and thereby hoping to bring more consumers into the fold.
 
For both this is a way to unlock the latent value in their brands without necessarily having to increase the number of screens at their disposal. Both PVR and Inox have undergone phases of organic and inorganic growth over the past few years and have 748 and 557 screens respectively.

 
The next step is nurturing a diversified portfolio of sub-brands. Technology is helping them do that although both have access to the same infrastructure—Dolby sound, LED screens, 4DX, and IMAX to name a few. But while Inox is wrapping the tech around special food festivals, celebrity chefs and plush seating, PVR is layering it with better experiences in terms of air quality, specially curated movie lists and a personalised experience.
 

Alok Tandon, CEO, Inox Leisure says, “Our strategy is focused on creating our multiplex locations as destinations welcoming all segments of customers.” He says that his company “pioneered ‘7-star cinema viewing’, a perfect blend of luxury and technology.” 

 
Tandon is referring to the Inox Insignia properties that are present in 12 locations at present and the company intends to add more. Tandon says that the idea was to present the movie going experience as sheer indulgence.
 
“Movie theatres have undergone a dramatic transformation in the last five years. Now, industry players focus heavily on higher standards of health and sanitation. Starting from  maintaining premium indoor air quality to making cinema theatres an inclusive sector by concentrating on the differently abled section of society to revamping hospitality services to global standards,” says Kamal Gianchandani, CEO, PVR Pictures. PVR has introduced various movie viewing formats and is also retro-fitting existing properties with air purifiers and so on.

 
For both the need to develop a boutique of sub brands is a market imperative say analysts. For one, OTT platforms are emerging as tough competitors to traditional content distributors, not only because they offer a more convenient viewing opportunity but also because the fare appeals to a much wider audience.
 
“While digital releases are becoming a trend, the multiplexes are protected by current market norm of six-eight weeks’ window between theatrical and digital release of movies. However, whether the massive proliferation of OTTs will lead to reduction of the time window remains a larger concern,” says Abneesh Roy, research analyst, Edelweiss Securities.

 
At PVR, one of the sub brands is being positioned to counter the digital onslaught. PVR introduced a service called VKAAO a couple of years back where moviegoers control of their experience. It allows them to select their preferred movie along with the location, date, and time. The uptake has been encouraging says PVR, going from 1,600 screenings in the first year, to almost doubling to 3,000 by the end of the second year of operation.
 
Both PVR and Inox have introduced fast checkout kiosks to order food, reducing the wait time in lines. Additionally, both have also introduced various differentiated pricing options for weekdays, along with discounts on certain days and for certain target groups. Both are also focusing on their respective mobile applications, using the platform to push offers and create a loyal band of patrons.