Thursday, February 26, 2009

Rs.70 million for BIG 70 mm, "This is by far the largest re-branding campaign that has happened in India for any entertainment company.

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Will the BIG strategy for BIG Cinemas, work now that it has officially entered the BIG league? 4Ps B&M's Surbhi Chawla explores

The Anil Dirubhai Ambani Group (ADAG) has chosen the auspicious occasion of Diwali to rechristen their Adlabs Cinemas as Big Cinemas. The basic idea behind this name change is that all the media and entertainment businesses of ADAG were functioning under the umbrella of brand ‘BIG’. Adlabs was the only exception and this move would change that too. But this was no ordinary name change. The company embarked on a huge media exercise to convey this to the unsuspecting consumers. A big budget 360 degree campaign was planned out for which ADAG plans to shell out a mammoth Rs.70 million. "This is by far the largest re-branding campaign that has happened in India for any entertainment company. In the days to come we would be looking at investing at least Rs.60 - 70 million in a 360 degree campaign, comprising of print, TV, OOH, radio, et al. Through the campaigns we would also communicate our new base line – 'Ab Bada Maza Aayega,'" Tushar Dhingra, COO, BIG Cinemas informed 4Ps B&M.

For the uninitiated, it was in June 2005 that ADAG has acquired a majority share in the cinema screening business of Manmohan Shetty-owned Adlabs. At that time Adlabs had only five properties and 20 screens. Three years hence, BIG Cinemas boasts of 73 properties across the country, with 186 screens and a seating capacity of 71,000. One of the key strategies that BIG Cinemas has adopted to grow at this stupendous speed was to rely on both inorganic & organic route to add more cinema screens to its kitty. One such acquisition was that of Rave Entertainment (a JVbetween Kothari group and Jagran) in 2007, which at that time had an operational multiplex in Kanpur and six others under construction in Punjab, Haryana & Uttar Pradesh. This acquisition gave BIG Cinemas a major boost in North India with quick access to the Delhi-UP territory, which contributes a sizeable percentage to the all-India box-office. This move also helped this multiplex operator to add 23 more screens in its basket and enabled it to become the first cinema chain in India to cross the milestone of 100 screens. Dhingra elaborates, “We have been very successful in identifying existing cinemas in smaller towns and branding them and operating them as per BIG Cinemas’ international standards, while giving customers value for money. The latter, especially, has been able to catapult us to becoming India's largest and fastest growing cinema chain by far and has given us a wider reach than anyone else in the country.” Going forward BIG Cinemas plans to chart a similar route of mixing organic and inorganic expansion to add more screens and capacity.


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Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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