Death of Differentiation

“Differentiate or Die” is the mantra given by the great branding gurus Al Ries and Jack Trout. It was the year 1992; the whole marketing world embraced the concept of “Brand Differentiation” and put it in the same league as “USP” and “Positioning”. Till today, no marketing plan is complete without the mention of “Brand Differentiation”. Marketers compare their brands with the competition to get the key differentiators, so that they can stand out in the marketplace. But the question is, does brand differentiation still matter to the consumers or are we in an era where it has lost its relevance?

Few days back, a friend asked me, “I want to open a savings account. Which bank do you recommend?” My answer was simple: “The bank that is closest to your home.” He said, “There are 3 banks within 100 meters of my home – HDFC Bank, Axis Bank & Kotak Bank. Which one do you recommend?” Now, this was a tough call to take as all 3 banks are big, private banks with nation-wide branches and ATMs everywhere. So, I said, “Visit all of them and the one that’s friendlier should be the one you go for.” He called me after a few hours and said, “All the three banks seem good. The staff at each of the banks was happy to help me with opening a new account.” Why not, new business is always welcome. We realized that most of the big banks offer almost the same set of products and services, so what differentiates one bank from the others?

HSBC was the first bank to introduce the ATM concept in India way back in 1987. It was a unique brand differentiator for quite a while and the banking industry took time in embracing this concept. But today, all banks have a wide network of ATMs. In the recent past, Kotak Bank heavily advertised 6% interest rate for Savings Account, and in no time, quite a few banks started offering the same rate. Last year IndusInd Bank launched a campaign highlighting a unique service where customers could choose any denomination while withdrawing money from an IndusInd Bank ATM and these days it is running another ad campaign offering a novel feature that allows a customer to choose 10 out of the 12 digits of the account number. I am sure if this feature gets wider customer acceptance, other banks will soon follow suit. So, where is the differentiator?

This is true for other industries as well. Say for example, the telecom industry. Most of the mobile service providers offer almost the same rates. Their coverage is as good or as bad as their competitors. Their customer service executives are as helpful or as ignorant as their competitors. If one company offers a new value-added service or reduced rates, then the competitors are soon offering the same goodies. And same is the case with toothpastes, shampoos or any consumer durable brands where it’s difficult for consumers to differentiate one brand from the other purely based on product features.

So, differentiation that once gave an edge to a brand has now become a short-lived phenomenon. This is because most of the brand differentiations are easily copied by competitors and very few brands can manage to sustain the differentiation for a long time. And what happens when the competition copies your differentiation? You are then forced to find another differentiation, and in that process you end up confusing your customers.

The big question is: why should a brand try to be different if the competitor can quickly copy its differentiator and reduce it to nothing significantly different? In reality, differentiation is a selfish concept. It matters more to the brand manager than to the customer. And more often than not, in the process of creating a unique differentiator, brand managers focus too much on insignificant features which differentiate their brands from the competition, ignoring the message that really matters to the customers. 

The need is to focus on consumers, instead of focusing on the competition. And the focus should not just be on creating functional or promotional differentiation for products or services. You can’t occupy unique positioning in the consumer’s mind by simply being different from the others. You need to create something that customers want to passionately talk about, regardless of what the competition is doing. 

Go for unique brand positioning, rather than short-lived brand differentiation. In the battle between positioning and differentiation, positioning will certainly outlive differentiation. Because death of differentiation is inevitable, but your brand positioning can be timeless!

1,000-crore Bollywood Blockbuster: Dream or Reality?

The year was 1943, the movie – Kismet, the hero – Ashok Kumar, the box office earning – Rs. 1 crore and India had its first all time blockbuster film. So what if the Indian Film Industry was born three decades ago in 1913, it was at this time that it had come into maturity. Kismet was followed by many more Boxoffice Blockbusters including Mother India (1957), Mughal-e-Azam (1960) and Sholay (1975). Post-liberalisation, Hum Aapke Hain Kaun (1994) changed film business forever to become one of the biggest blockbusters of the modern era. But it was Gajini (2008) that redefined Hindi Film business by becoming the first Rs.100 crore Hindi film i.e. a film with Net Collection (after deducting entertainment tax) of Rs.100 cr from Indian Boxoffice. Since then, almost 20 Hindi films are a part of the exclusive 100-crore club. But one film that stands out amongst all is 3 Idiots (2009) which is the only film to earn Rs. 200 cr+ Net from Indian Boxoffice and Rs.100 cr+ from overseas market. Only time can tell which movie will be able to break the record set by 3 Idiots (Total Worldwide Boxoffice Collection: Rs.325 cr plus!)

The  100-cr club: not exclusive anymore

From film critics to paanwalas and from stars to spotboys, everyone talks about how and how soon a big-budget film will be able to cross the Rs. 100 cr mark. From one film each in 2008 & 2009 to two in 2010 to five in 2011 to nine in 2012, and two films in 2013 (till date), the Bollywood’s 100-cr Club is slowly losing its exclusivity over the last few years. It is clearly the result of a paradigm shift in the business of Bollywood. There are four key contributing factors for this shift:

1. Multiplex Mania: From the first multiplex by PVR in 1997 to almost 1,400 multiplex screens in 2013, the multiplexes transformed the film business in India. Though they hardly account to 12% of total 12,000+ screens in India, they contribute almost 70% of a film’s box-office collection. By offering a better film viewing experience, mutliplexes have brought the film lovers back to the silver screens.
2. More Prints:  Mughal-e-Azam was released in 150 theatres across India. Thanks to the advent of digital technology, 3 Idiots released with 1,000 prints and Ek Tha Tiger (2012) with 3,400 prints in India and 500-600 prints overseas, which explains how Ek Tha Tiger took just 6 days to cross Rs. 100 cr mark!
3. High Ticket Prices: When Mughal-e-Azam released in 1960, “Maratha Mandir”, a leading theatre in Mumbai, charged Rs.1.60 for the balcony while the average cost of a ticket then was around 50 paise. When Hum Aapke Hain Kaun was released in 1994, it forced theatre owners to upgrade their systems and to increase ticket prices. Today the average ticket price in multiplexes is Rs.140-150, compared to Rs.60-65 in single-screen theatres. And on weekends, leading multiplex chains charge almost Rs.300-350 for a new release. For 3D films, the rate is even higher.  
4. Longer Weekends: Friday-release has been replaced by Wednesday- or Thursday-release as many big budget films take advantage of long weekends because of festivals or holidays. In fact, Ek Tha Tiger released on a Tuesday and benefited hugely because of a six-day weekend! Most of the 100-cr films enjoyed this kind of longer weekends. Though a longer weekend is no guarantee for a film’s success, it certainly provides a head start.

Importance of Overseas Boxoffice Collection 

While domestic Boxoffice collection may be the only criteria to be eligible for 100-cr club, the importance of overseas market cannot be overlooked. And Shahrukh Khan starring in 7 out of the top 10 highest grossing Bollywood movies in the overseas market, clearly rules the overseas market, followed by Aamir Khan, Hritik Roshan and now Ranbir Kapoor. US, UK and UAE are key markets for Hindi films, besides South-east Asia and rest of the world where South-Indian Superstars Rajnikant and Kamal Hassan enjoy immense popularity. 

From Dil Se (1998), which was the 1st Hindi Film to be in the top 10 UK Boxoffice charts, to Jab Tak Hai Jaan, the contribution of overseas Boxoffice collection has been steadily increasing. 3 Idiots earned $25 mn from overseas market which is more than 30% of films total box office collection. Jab Tak Hai Jaan made almost equal amount from domestic and overseas market. And yet the overseas market is relatively untapped for Bollywood Blockbusters. 

Hollywood blockbuster, Avatar - the highest grossing movie in the history of world cinema, earned more than $2 bn from ticket sales out of which just 30% ($600mn) came from US and rest 70% came from non-US markets. How was this made possible? Internationally, Avatar opened on a total of 14,604 screens in 106 territories! Bollywood has a long way to go before it can match the marketing muscles of Hollywood studios, but Bollywood can certainly aim to cross the $100 mn mark from overseas market in the foreseeable future.

1000 Cr Blockbuster – The Holy Grail of Bollywood

The writing on the wall is clear. 100 crore clubs don’t excite anyone anymore. If we combine Indian and overseas Boxoffice collections, we observe that a lot of films have managed to cross Rs.200 cr mark and very soon we will certainly see a film crossing the Rs.500 cr mark at worldwide Boxoffice collection. So, why not set a new benchmark for Bollywood Blockbusters. Why not think of the unthinkable but not the improbable. How about a 1000-cr Bollywood Blockbuster which will change the business of Bollywood forever!

Although it may seem too ambitious to aim for a Rs.1,000 cr Bollywood Blockbuster, it may happen in the near future. There are 3 supporting theories:

1. Theory 1: With 1,000 prints, 3 Idiots managed to cross Rs.200 cr mark solely from Indian Boxoffice.  Thus, with 3000+ prints at the time of release as well as increased ticket rates; we can very well expect a “good film” with similar audience appeal to cross the Rs.300 cr mark at the Indian Boxoffice with a successful run of 4 to 5 weeks. 
2. Theory 2: The Indian Film industry is obsessed with Boxoffice collection & now with the 100-cr club. But we hardly ever track audience footfalls. Titanic was watched by approximately 12 cr people, compared to half that number who watched Avatar in theatres. It is estimated that Mughal-E-Azam and Sholay were viewed in theatre by 3-cr plus film lovers at the time when Indian population was just 43 cr and 60 cr respectively which means that almost 5% of the Indian population watched Sholay in theatres. And if we can manage to come close to that number in today’s time, then just do the numbers!
3. Theory 3: The overseas market plays a crucial role for a lot of Bollywood films. Given the current rupee depreciation, the net collection from overseas market is bound to increase substantially. We already have a Bollywood movie crossing $25mn mark in the overseas market. If we can manage to “correctly” capture US, UK, China and other key overseas market, then there is a high probability of crossing $100mn+ mark from overseas market.

So, while on paper, it may look possible to work out a plan to achieve Rs.1,000 cr magic mark, business of Bollywood does not  follow pure mathematics. What we need now is a talented and committed team who, besides getting the mathematics right, can also strike the right balance between the art and science of film making to deliver a Mega-Blockbuster of all times. Though there can’t be any magic formula for success in Bollywood, the following ingredients are a must to deliver a 1,000-cr Blockbuster:

1. Ingredient 1 – Indian Story with Global Appeal: Story was, is and will remain the most crucial element for the global success of any film. The storyline has to have the perfect mix of emotions that appeal to Indian heartland and at the same time manages to strike the right chord with global audiences. And we can explore 3 genres that may appeal to both the audiences: 1) a period film in the Indian set up, 2) a sci-fi film probably with characters inspired from Indian mythology, and 3) a “save-the-world-from-baddies” film based in India. And if the storyline gives opportunity to have 3D version, then it will certainly boost the Boxoffice collection. 
2. Ingredient 2 – Stellar Indian Superstar cast: Casting will play a super role in the success of the movie. A superstar is a must for a super-film of this size and scale. Shah Rukh Khan, Aamir Khan and Hritik Roshan may provide the needed star power to this venture, though Salman Khan and Ranbir Kapoor can’t be ruled out completely. The film will also need stellar supporting cast with the likes of Amitabh Bachchan, Aishwariya Rai Bachchan, Om Puri, Anupam Kher, Anil Kapoor , etc. may also help to reach out to wider audiences. A vital role in the film by Rajnikant or Kamal Hassan can provide the necessary boost, given their huge overseas fan base.
3. Ingredient 3 – Presence of an International Star: An all-Indian star cast will not be able to break into the lucrative overseas market. Butan international star will. Though an A-lister Hollywood star may not be financially viable, but an important part (equal to the main lead) in the film must be played by a popular International star. If a popular male star is too expensive, then a top-notch actress can add a lot of value to the film, provided her role is more than just singing and dancing. 
4. Ingredient 4 – Different versions for different audiences: The film should be written and shot in a way that we can have two versions of it. One version for Indian audiences (150 min) with usual song and dance routine and second version for the international audiences (100-120 mins) without compromising on the essence of the film with minimal or none of the Bollywood routines. 
5. Ingredient 5 - Money: An equally important ingredient in this mix is money. Once Bollywood manages to break into the overseas market like Chinese films, we may not always need big budget releases for global audience., But the first Rs.1,000 cr Bollywood film may require substantial investment. We have seen films like Ra One with budget of around Rs.150 cr and Rajnikant starred Robot spent almost Rs.200 cr (including marketing expenses). A truly international film shot mostly in India can be made with the budget of Rs.100 cr. Now let’s add around $15 mn for an international star and $25 mn for marketing and promotions. (Avatar spent $150mn to market the movie!). Bollywood filmmakers have their own ways of cost optimization, but we may still need a budget of around Rs.300-350 cr to make a Bollywood film for the international market.

These are no secret ingredients. What we need is a Bollywood Magician who can combine them to create magic. The only question remains that in the process of making a truly global Bollywood film, will it remain a Bollywood movie with an international star or will it become a Hollywood movie with Bollywood tadka? Who cares as long as we have a Rs.1000 cr Bollywood Blockbuster!!!

The Art of Being Productive

Have you ever wondered why some people always deliver quality work on time and do it with a positive, relaxed attitude, whereas others work hour after hour but fail to accomplish anything substantial? We may assume that it is because of intelligence, education, street-smartness, wealth, family, friends, or luck. But that’s not correct. It’s all about being productive.

So, how do you define a “productive” person? The common notion of productivity is the ability to produce a lot of work in a short span of time. This may be partially true, but not completely. True productivity is the ability to create a lot of high impact work in a short span of time. Therefore, focusing on work that makes a difference is what counts; rather than being busy with empty work that creates little impact in the long term.

To be more productive, you must understand the difference between regular tasks that keep you occupied throughout the day and high value, high impact tasks that help you achieve your goals. While you are working, you may be bombarded with a barrage of random requests throughout the day, each one of which can be finished off in just 10 minutes. However, attending to these requests is in reality siphoning off time from your high value, high impact tasks. You may think you are being very productive when you finish the random tasks, but the truth is that it’s just fake productivity. As Henry David Thoreau said, “it is not enough to be busy... The question is: what are we busy with?”

The key to be more productive is to cut away unimportant tasks and focus on the important ones only.  Every morning write down a list of things to do and then evaluate which ones are the most important of them. Question each task from your list to make sure that whatever tasks you select are the best use of your time. You must know your end objective and do things that serve this objective. There is no point doing something unimportant.

Here you can apply the Pareto Principle (80:20 rule - the Law of Vital Few) to work on 20% high impact tasks and allocate substantial time for doing those tasks. And then allocate a time slot, may be at the end of the day, to clear other 80% “not-so-important” tasks. You can always clear those tasks in less than an hour or so, compared with few hours you would have spent attending them in the day. Moreover, from your to-do list, you can automate certain tasks using available technology – for example, bill payments. You may also delegate some tasks that do not require your expertise. By doing this, your time is reserved for the absolute important things.  

Once you have identified the key tasks, it is equally important to set timelines for each task. By Parkinson’s Law, work expands so as to fill the time available for its completion. This means if you don’t set a timeline, you can take forever to complete what you are doing. If you set a timeline of say 8 hours to finish a task, you will take 8 hours. If you set 4 hours, you will take 4 hours. And interestingly, if you set 1 hour, you can actually complete it within one hour, if you really want to.

Once you are left with only critical tasks with deadlines, how do you go about finishing them more efficiently? Should you work non-stop like a robot to complete those high impact tasks? The answer is NO. Research shows that when you work non-stop without breaks, productivity keeps slipping as time passes. However, when you take short breaks at the right intervals, they help you start on a high note, resulting in high output that makes up for the lost time. So, whenever you are tired or feel unproductive, take a quick break. Walk away from the desk, have coffee, listen to music, talk to your friend. You will be charged up when you return which will enable you to get more work done.

While you must take the strategic breaks that increase productivity, you must remove distractions that limit your productivity. Make a note of things that interrupt your work – unwanted phone calls / SMSs, continuous alerts from your mailbox / BBM / Twitter / Whatsapp, the urge to log on to Face Book or check out videos on YouTube, have pointless small talks with your colleagues, or to take unnecessary tea breaks. These interruptions prevent you from getting things done and distract you from doing what matters. So spot these distractions and shun them, especially when you are doing an important task.

When you have completed the important tasks of the day with a focused approach, you will be amazed to know how much time you have to attend to things that you have missed while working. Calls to friends can be more leisurely, FB status updates more witty, reply to emails more meaningful.

In today’s competitive world, you will always have too many things to do and not enough time to do it. However, the best way to get more done is to spend more time doing less. As Peter Drucker said, efficiency is doing things right; effectiveness is doing the right things. But excellence is doing the right things right. Remember, no one achieves productivity by accident. It is the result of meticulous planning and focused efforts. So, work smart and be happy!