 "Inox works on screen presence")
In the past six months, Mumbai-headquartered Inox has opened up 10 new multiplexes, not one of them in the four big metros and the latest one in Rajkot, Gujarat. Fifty more are scheduled for the rest of FY17 and it is most likely the chain will go even further into the hinterland. The multiplex, known for its all-vegetarian policy for food sold on its premises, is focusing on regional growth to combat the growing clout of market leader PVR Cinemas and keep competitors, Cinepolis and Carnival Cinemas, at bay.
Inox today is the second largest multiplex chain in the country. CEO Alok Tandon explains that expansion is at the core of his strategy. But that is not the only tool at his disposal. He says that the chain is using technology and innovation - in terms of the ambience within multiplexes and food and beverage offerings - to build its brand.
Inox has earmarked 60 screens for expansion in FY17. This is similar to what PVR Cinemas has planned too. But Inox says it is thinking long term and has pre-signed contracts for as many as 258 screens for the next three odd years. It plans to reach around 720 screens by 2020. Besides most of its screens are coming up in places where there is no multiplex at all.
Charging into the hinterland
"We are not region-centric when it comes to expansion. We are a pan-India chain, and wherever we see an opportunity, we will start a multiplex. That is the reason we have a significant presence in West Bengal and the North East," explains Tandon. He says, however the opportunity to scale up lies in tier II and III towns.
Tandon and team say they have a clear idea of the aspiration that they are trying to tap into, among such moviegoers. "Anyone going to any Inox property should and will have the same experience. That is the aspiration we promote. A person from a non-metro can experience the same thing as a person in Mumbai or Delhi," Tandon says.
The chain says that it has not lost sight of its metro viewers, however. As evidence Tandon cites the fact that the share of both regional and Hollywood films went up significantly in FY16. The two together commanded around 35 per cent share of box office revenue for Inox. This year, with films like Sairat and Hollywood movies, The Jungle Book, and Captain America: Civil War doing well, the two are expected to be big contributors too.
Cinema advertising presents a huge opportunity and Inox is working out ways to maximise its potential. One way to do that, the company says, is by investing in technology that allows for an integrated network. Inox says it done that and as a result, has been able to put in place a more flexible advertising strategy that allows advertisers to manage and monitor their ads playing at Inox cinemas better.
"Our clients who do cinema advertising at our properties have definitely benefitted. Apart from providing flexibility in programming the ads, we also encourage brands to make use of the property for experiential innovations. While playing the ad on the screen is an option, the communication can be amplified by having demos in case of products around the lobby area or the food court,"Tandon explains. The experiential advertising bit is popular as it allows for integration of brands with the movies playing at the theatre. It helps brands create an experience and thereby reach out to consumers in a more meaningful manner.
The integrated system also helps maintain a standard quality across multiplexes. Tandon says, the server room in Mumbai monitors the working of every projector and can pick up even the slightest discrepencies.
Playing to the palate
All multiplex owners have honed in on food and beverage (F&B) as a potential money spinner. They have wooed big brands and worked out menus that cater to the special tastes of a region or a segment of the population, depending on the location of multiplexes.
F&B has seen significant growth in revenues for all cinema exhibition players over the past few quarters. Inox is raising its game up a notch in this space by creating special events and offers with the F&B menu around an ongoing film. For example, for the movie Singh is Bling, the chain had customised its menu to include big portions, a play on the 'patiala peg' associated with the manner in which people consume their alcohol in the region. Similarly, during the screening of 2 States, the menu was customised to include a samosa-idli combo, drawing from the theme of the movie where a North Indian boy and a South Indian girl fall in love.
Increasingly in the coming months, F&B is expected to play an even more important role. Especially as the chain moves away from the metros into areas where going to the movies is the only form of entertainment available. And for such movie goers, adding a dash of fun in their food and drink is not just a novel idea, but also one that is guaranteed to hit the right spot.
