Feasibility study for establishment of multiplexes in Jaunpur and Mughalsarai
Student name: Mr Thangal Luwang
Guide: Dr Umesh Gulla
Year of completion: 2011
Host Organisation: Insight Development Consultancy Group
Supervisor (Host Organisation): Mr Himanshu Dube
Abstract: Market feasibility study was conducted for a well know multiplex operator from Eastern Uttar Pradesh to
understand the market feasibility of developing multiplex in the towns of Jaunpur and Mughalsarai in UP. The
company currently operates two multiplexes in Varanasi and now wants to establish a chain of multiplexes in
Central India.
Mughalsarai is a city and a municipal board in Chandauli district in the Indian state of Uttar Pradesh and Jaunpur
is a city and a municipal board in Jaunpur district in the Indian state of Uttar Pradesh.
Quantitative survey was conducted in these cities using survey questionnaires (see Annexure 1). A sample 100
respondents was conducted in Mughalsarai and 110 sample respondents in Jaunpur. Exit Interview technique was
used in various location of the town such as cinema halls, restaurants, colleges and market place. The sample
survey was done by the surveyor appointed by the IDCG. On basis of this survey the conclusion has been drawn on
whether or not the firm should establish a multiplex in any on this city.
After conducting the market feasibility of the cities it was found that Varanasi is the city which the people of
Jaunpur and Mughalsarai go to for shopping and entertainment purpose. On basis of the analysis following
conclusions drawn are;
• In Mughalsarai, 95% respondents have visited a multiplex at least once to watch a movie mostly in
Varanasi which is just 10 km away from Mughalsarai. Although 96% of the respondent would like a
multiplex to be established in Mughalsarai, only 7% are willing to pay a price for it. Therefore keeping in
mind the short distance from Mughalsarai to Varanasi which is just 10 km, the firm should not establish
multiplex there. Moreover, the firm already has two multiplex in Varanasi which can cater to the need of
the population in Mughalsarai.
• In Jaunpur, all the respondents are aware of the and out of them 75% have watched a movie in a multiplex
at least once mostly in Varanasi which is 58 km away from Jaunpur. Around 98% of the respondents would
like a multiplex to be established in Jaunpur and 96% of them are willing to pay a premium price to watch
a movie in multiplex. Therefore the firm should establish a multiplex in Jaunpur city as the population in
the city are willing to pay a premium price to watch a movie.
