What caused BookMyShow's movie ticket sales to decline by 15% in tier 2 cities compared to the same quarter last year?

Introduction

BookMyShow's 15% decline in movie ticket sales in tier 2 cities compared to the same quarter last year is a concerning trend that requires thorough investigation. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the specific market segment, I'm wondering about the overall performance. Has this decline been observed across all tier 2 cities or are there specific regions showing more significant drops?

Why it matters: Understanding the geographical distribution helps identify localized factors vs. broader trends. Expected answer: The decline is relatively uniform across tier 2 cities. Impact on approach: If uniform, we'd focus on broader market trends; if varied, we'd investigate city-specific factors.

• Considering potential changes in user behavior, have you noticed any shifts in booking patterns, such as last-minute bookings or preference for specific show timings?

Why it matters: Changes in booking behavior could indicate evolving user needs or preferences. Expected answer: There's been a slight increase in last-minute bookings. Impact on approach: This might lead us to investigate the app's performance during peak booking times or explore ways to incentivize early bookings.

• Thinking about the competitive landscape, have there been any significant changes in the market, such as new entrants or aggressive promotions from existing competitors?

Why it matters: External competitive factors could be drawing users away from BookMyShow. Expected answer: No major new entrants, but some competitors have increased their marketing spend. Impact on approach: We'd need to evaluate our marketing strategy and value proposition compared to competitors.

• Reflecting on recent product changes, have there been any significant updates to the BookMyShow app or website that coincide with the start of this decline?

Why it matters: Internal changes could have unintended consequences on user experience or performance. Expected answer: A new UI was rolled out for tier 2 cities about a month before the decline started. Impact on approach: We'd need to closely examine the impact of this UI change on user behavior and conversion rates.