1. Case Study
on
Scrilloid Pictures

2. Moments to Consider
1 Scrilloid Pictures
2 Objective of firm
3 Strategic Models
4 Pricing Model
5 Implementation
6 Conclusion

3. Scrilloid Pictures
• Successful film exhibitor chain in North and
West India.
• Beaten market competition.
• Well connected networks.

4. Objective
•Increase the presence in the market
•Expansion in Southern and Eastern Market

5. Expansion plans
• Strategic model
•Sustainability

6. Strategic Model
• Strategy 1 (focus on different model of operation)
• Strategy 2 (development of high technical and
managerial expertise)

7. STRATEGY 1
STRENGTH: WEAKNESS:
•An established firm as a • In initial phase itself, it will be
successful film exhibitor in exposed to stringent competitions.
North and West India. • Unlike the northern region, in
• Well connected networks eastern and southern region it will
from supplier, have to focus on different model of
• Expanding its current operation as here regional films
stream of business. dominate the revenues.
• Acquainted with the
economics and dynamics
of expansion.
• Tax exemptions .
OPPORTUNITIES:
SWOT
THREATS:
• Favorable Demographics.
• Cinema exhibition industry • Alternative modes of
in India is growing at 10% entertainment.
per annum driven by • Uncertainty over entertainment
multiplexes. tax.
• Growth in Film industry. • Television.
• Piracy

8. 3’C ANALYSIS
CONSUMER
3 C’s
COMPETITION COMPANY

9. CONSUMER
HIGH INCOME
YOUNG MIDDLE CLASS GROUP
•Targeted Market is ready to spend on
Entertainment & Leisure

10. MARKET
• Industry Grew 11.5 percent in 2011 to
Rs. 7000 cr.*
• By next year multiplex to increase from around 900
to 1350.
• Screen per people count is very less in India.
*according to the KPMG Media and Entertainment industry report, 2012.

11. COMPETITION
•Exposed to stringent competition in
initial phase.
•Established single screen
•Pirated Digital Cinema
Television

12. COMPANY
•Selectivity and Sequencing
•Foreign Investment

13. STRATEGY 2-PORTER’s
FORCES
BARGAINING THREAT OF
POWER OF NEW
BUYERS
ENTRANTS
COMPETETIVE
RIVALRY
BARGAINING
POWER OF THREAT OF
SUPPLIERS SUBSTITUTE
S

14. BARGAINING POWER OF
BUYERS
•Buyer concentration
•Degree of dependency upon existing channel
of distribution
• Quality
• Buyer Profit.
• RFM (Recency,Frequency,Monetary Value)

15. THREAT OF NEW ENTRANTS:
• Higher capital investment
• Brand Identity
• Switching costs
• Distribution channel
• Delay in clearances

16. COMPETETIVE RIVALRY
• Online Player
•Local Market
•Exit barriers
•Level of Standardization

17. BARGAINING POWER OF SUPPLIERS
•Presence of Substitute input
• Importance of volume to
Supplier
• Supplier concentration

18. THREAT OF SUBSTITUTES
•Consumer Demographics
• Flexibility of prices
• Economic condition of
market

19. COMPARITIVE ANALYSIS
Parameter Multiplex Malls with
Multiplex
Company Expertise High (4) Need to develop
Status (1)
Brand value Good (4) No (1)
Entry Barriers Capital Relatively Very high(1)
Investment low(3)
Market High growth in High growth in
film exhibition Real Estate
industry(4) Market(4)
Government Foreign Less(2) Huge(4)
Policies Direct
Investment
Total 17 11
*Each parameter is rated on a 1-5 scale

20. Pricing Model
• Fixed Cost Price Model
• Variable Cost Price Model

21. Fixed Cost Price Model
800
700
600
500
400
300
200
100
0

22. Fixed Cost Price Model
• Discount Rate 8% (by CAPM)
• Repay of 173 lpa with a payback period of 6
years
Advertise Sales Convenie
ment nce
8% 2%
Food And
beverage
25%
Ticket
Sales
65%

23. Fixed Cost Price Model
• Estimated footfall of 12lpa
• At break even point cost of each ticket is INR
138.5
• Final ticket price of
INR 160
• Total Profit of INR 258 lpa @ INR21.5 profit on
each ticket .

24. Variable Cost Price Model
• Ticket price of INR 140
• 16% Increase in Foot fall
Owner's
share Entertainm
25% ent Tax
30%
Distributors
share
35% Rent
10%
Revenue Distribution

25. • 10% Increase in sales of F & B
• Increased profits of 427lpa from only 258lpa in
the previous strategy