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What has been the most interesting sales promotion you have engineered so far?
At PVR Cinemas, we routinely explore ways to enhance the viewer's cinema viewing experience. One promotional scheme that stands out is the one we are currently running in conjunction with Kotak Mahindra Bank, the buy-one-get-one-free-ticket offer on Saturdays. Any consumer who books tickets using a Kotak credit or debit card or even a netbanking account, will get a ticket free for every ticket booked as the name suggests. What stands out is the fact that the offer runs on Saturdays, possibly the most convenient day for movie viewing. Many other players have run similar offers in the past or do so even now. But they are all restricted to weekdays.
Who did you primarily target with it - new or existing customers or both?
There was no particular distinction drawn in terms of targeting new customers over existing ones or vice-versa. The idea was to build loyalty for PVR Cinemas and increase consumer stickiness. We have, however, defined the profile of the customer as targeted by us - we call them the cash-rich time-poor audience. This profile when cross mapped with that of Kotak's customer base is a perfect match, making this promotion a perfect fit for both partners.
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How did you go about generating buzz for the promotion?
Getting the word out about the scheme was not much of a challenge due to a large base of registered customers with PVR Cinemas as well as with Kotak. Our partner took care of the bulk of the promotional strategy, sending out emailers to card users via the billing statements sent out monthly and even putting up posters at the automated teller machines. On our part, we put out regular insertions in metros in leading general interest newspapers and entertainment supplements twice a week. Also, social media and our portal were used extensively to spread the word.
What was in it for your partner?
It worked well with Kotak Mahindra Bank. It led to an increase in the usage of Kotak cards. A typical Kotak customer is one with a couple of cards in her wallet today. By giving such enticing offers, she gives preference to the Kotak credit or debit card. With time, this comfort gets translated into a habit of using the card.
What were the challenges?
There haven't been many challenges since this is a scheme, which in its basic structure has been used quite extensively by multiplexes as well as banking partners. Plus the scheme was structured such that it did not conflict with even our co-branded card with Kotak. The card anyway works more on a point system in the benefits it offers. There were no huddles in executing this scheme.
What was its direct and measurable impact on sales and the brand?
It is difficult to calculate the 'measurable' impact of the scheme. Consider this, last month, in June, close to 71 lakh people watched movies across PVR Cinemas. It is difficult to say how many of these came in because of the scheme.
The measurable impact of the scheme will come in the long-term for our partner, who will see spends increase on the cards and customer activity pick up.
Is there a chance you will continue with the offer?
We take stock of all our promotions every four-five months. If the offer works well, it can be extended. This particular scheme has been running for around 12 weeks now (about three months). From the looks of it though, we won't be surprised if it continues longer.
Don't sales promotions incur high long-term costs for the company?
The economics work differently for different sales promotions. With this one, PVR Cinemas is not losing out on any revenues due to the nature of the scheme. The way it works, Kotak pays us for the 'free' tickets. And for the bulk purchase, we offer them a small discount anyway.
FROM THE HORSE'S MOUTH
KOTAK SUPER SATURDAYS BY PVR
Aim
To build loyalty for PVR Cinemas and increase customer stickiness. Attracting new customers for us as well as
our partners
Target
Cash-rich, time-poor audiences; Kotak Bank credit card and debit card holders. Also, those customers who have an account with Kotak Mahindra Bank and use internet banking for online transactions
Plan
Every customer who books tickets using a Kotak credit or debit card or even netbanking account gets a ticket free for every ticket booked. Many other players have run similar offers in the past but they are all restricted to weekdays
Outcome
A significant increase in the usage of Kotak cards. A typical Kotak customer has multiple cards. This offer pushed her to use Kotak card over others
