ASSIGNMENT ON EXAMPLE OF BLUE OCEAN STRATEGY IN INDIA

ASSIGNMENT

WRITE-UP ON KBC

STRATEGY FORMULATION

(In partial fulfilment to FTMBA 1st Year)

Submitted to :

Dr. Som Sekhar Bhattacharrya

Faculty: Strategy Formulation

NMIMS University, Mumbai

Submitted by:

Deepak Kumar Goel

(MBA Core NMIMS (2009-11)

Roll No. 425

mailfordeepakgoel@yahoo.com

Div : E
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 ASSIGNMENT ON EXAMPLE OF BLUE OCEAN STRATEGY IN INDIA

Date of Submission: 24th March 2010

Letter of Transmittal

To

Dr. Som Sekhar Bhattacharrya,

Strategy Formulation.

NMIMS University, Mumbai

Sub: Write up on KBC(Blue Ocean Strategy in Indian TV Shows)

Respected Sir,

First I would like to thank you for teaching NMIMS students. I had a great learning from you.
I hope more learning from you in coming trimester. I have made a write up on Kaun Banega
Crorepati directed by Siddharth Basu on Star Plus.

I have self analyzed it by getting knowledge from your classes and a book on Blue Ocean
Strategy by W. Chan Kim and Renée Mauborgne

Regards,
Deepak Kumar Goel
Roll No 425
Div E
FT MBA Core 2009-10
NMIMS

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 ASSIGNMENT ON EXAMPLE OF BLUE OCEAN STRATEGY IN INDIA

Blue ocean strategy

The market universe has never been constant; rather, blue oceans have continuously been
created over time but what is this blue ocean? Why companies now believe in blue ocean
strategy? Why it has become so much important for the company to think out of box and ?
Why it is more important to make the competition irrelevant rather than beat the competition?
Why a combo of value-innovation is a need of today.

Before we begin with an analysis of blue ocean strategy first let us understand what is red
ocean and what is blue ocean?

We regularly hear a lot about Red ocean strategy because Red Oceans are all the industries
in existence today-the known market space. In red oceans industry boundaries are defined
and accepted. Moreover the rules of competition are also known. the companies compete
each other in existing market space and try to beat the competition. Here companies try to
outperform their rivals to grab a greater share of product or service demand. More and more
players enter into the same market and market gets flooded with a lot of companies
competing each other and hence chances of profits and growth gets reduced. Red ocean
strategy aligns the whole system of a company’s activities with its strategic choice of
differentiation or low cost. Competition becomes so intense that products become
commodities or niche, and cutthroat competition turns the ocean bloody. Hence, the term red
oceans

For more than twenty-five years, competition has been at the heart of corporate strategy.
Today, one can hardly speak of strategy without involving the language of competition:
competitive strategy, competitive benchmarking, building competitive advantages, and
beating the competition. Blue ocean denotes the industries that not existence today the
unknown market space or market unattained by competition. Blue Ocean strategy provides a
systematic approach to make the competition irrelevant. Blue ocean creates and capture new
demand. it aligns the whole system of a company’s activities in pursuit of differentiation and
low cost. it is based on the view that market boundaries and industry structure are not given
and can be reconstructed by the actions and beliefs of industry players and that is what we
call it “reconstructionist view”.

The corner-stone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created when
a company achieves value innovation that creates value simultaneously for both the buyer
and the company. The innovation (in product, service, or delivery) must raise and create
value for the market, while simultaneously reducing or eliminating features or services that
are less valued by the current or future market.

There are lot of examples which we can quote here for a blue ocean strategy like
The case of cirque du soleil, a circus;
The case of yellow tail in US wine industry ;

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Deccan airlines-everyday low price concept in Indian airlines;
Kingfisher airlines- Kingfisher redefined the travel experience for business and first-class
travelers;
Toyota kirloskar group - éscort trolley';
Sony's walkman revolutionized the way we listened to music;
Apple ipod;
Dell computers;
starbucks coffee shops;
CNN's real time news 24/7 in 1980;
Tata Docomo(talk per second);
Tata Nano;
IPL;
Marico started Kaya Skin Clinic

And then there is Kaun Banega Crorepati - a breakthrough innovation that leapfrogged Star
TV to the No.1 position. It started with a challenge thrown to the strategy team to come up
with 'a program idea that will have as much viewership as an Indo-Pak cricket match on a
Sunday'. This near-impossible challenge led the team to innovate a successful program in the
US, Who Wants To Be A Millionaire. The team members asked themselves: 'How can we
take this successful quiz program and make it equivalent to an Indo-Pak match?' The
breakthrough idea was Amitabh Bachan; the conventional quiz anchor would have been
Siddharth Basu. This innovation created history.

I choose the blue ocean created by Star plus by introducing a concept of reality TV shows in
indian entertainment industry by making KAUN BANEGA CROREPATI…as I understand it
is one of the biggest innovation in Indian TV shows of entertainment which was not only
innovative in entertainment but also a Value to Indian viewers. Director Siddharth Basu
changed the philosophy of The 'Can't Be Done In India' Mindset. When all were busy in
making same kind of Indian soap and competing in existing market. He thought to make the
competition irrelevant with some value-innovation for Indian viewers.

“ 9 baj gaye kya”

“The biggest gamble ever has arrived”

You are not only a viewer but a participant

too…

It created a new era in TV shows entertainment as a reality TV show by bringing the viewers
as participant in the TV shows which created more entertainment among the viewers and
provided great value not only in terms of entertainment but also giving them a chance to win
a maximum of 1 crore in its beginning. Later on as the craze became so high that team again

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put its series in chain as kaun banega crorepati 2,3 ..…however Kaun banega crorepati 1 was
very innovative if we consider Indian entertainment industry as it was a reality TV show and
it attracted a huge population of viewers because of its “value-innovation” in Indain
entertainment TV shows.

Kaun Banega Crorepati( popularly known as KBC) was an Indian reality/game show based
on the UK gameshow Who Wants to Be a Millionaire? This version's title literally translates
to "Who will be a ten-millionaire?”.The show first aired in 2000 and was hosted by Amitabh
Bachchan. This episode was the first appearance of Amitabh Bachchan on Indian television.
In 2005, the show was restarted after a four-year hiatus, and renamed Kaun Banega Crorepati
Dwitiya (Kaun Banega Crorepati the Second, or KBC2) in which the final prize amount was
doubled to 2 crore rupees. The grand prize amount of 2 crore rupees (approx. $430,000 USD)
was still used in KBC3. It was abruptly ended by STAR Plus after the host Amitabh
Bachchan fell ill in 2006. Bachchan announced he would return after he recovered, but
Shahrukh Khan covered for him in 2007.

The second edition of the show, KBC 2 or KBC "Dwiteeya", began airing in August 2005
and notched up the highest ever opening in the history of Indian television, going on to
sustain its position among the most watched program in the country. The third series of KBC
was hosted by superstar Shah Rukh Khan.

Assuming that structure and market boundaries exist only in managers’ minds, practitioners
who hold this view do not let existing market structures limit their thinking. To them, extra
demand is out there, largely untapped. The crux of the problem is how to create it. This, in
turn, requires a shift of attention from supply to demand, from a focus on competing to a
focus on value innovation—that is, the creation of innovative value to unlock new demand.
This is achieved via the simultaneous pursuit of differentiation and low-cost. As market
structure is changed by breaking the value/cost tradeoff, so are the rules of the game.
Competition in the old game is therefore rendered irrelevant. By expanding the demand side
of the economy new wealth is created. Such a strategy therefore allows firms to largely play a
non–zero-sum game, with high payoff possibilities. So what came in mind of Siddhartha basu
,Director of KBC.how he created a blue ocean in Indian entertainment TV shows? The value
and innovation which he created in Indian TV shows has given a path for more reality TV
shows. Just after kaun banega crorepati a lot of serials came into picture like Dus ka Dum
host by salman khan;sawaal dus crore ka;

it was the participative spirit of "Kaun Banega Crorepati" and not mere Amitabh bacchan
presence that makes the show such a success. ...

What we can analyse…. KBC created a demand by viewers of a reality show in Indian
Entertainment Industry. It was not Amitabh bachchan who made it successful but it was
KBC value and innovation in Indian TV shows that created demand by Indian viewers for
this reality TV show in Indian entertainment TV shows.people were flooded with a lot of
serial like kahani ghar ghar ki, kyunki saas bhi kabhi bahu thi(which was also a hit by star
plus),dulhan, kalash, sautan etc which were more cater to family dramas. These cater to same
market with same value but KBC came with new concept of reality shows as viewers were
not only viewers but they might have a chance to participate in show and moreover win a
huge money.

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The show was being slotted in the every Monday to Thursday at 9 pm. Elaborating further on
the positioning of the show, Sameer Nair, CEO , Star Entertainment India said, " our
weekend slots are already looking very strong with shows like Prithviraj Chauhan, Baa Bahu
aur Baby and others. Right now, we need to look the 9 pm slot. As for now, Viraasat and
Karam Apnaa Apnaa will go off air to make way for KBC”.This shows that sameer nair also
believed in success of KBC.

The success of any TV show is its TRP rating and KBC left all other TV shows behind in TRP rating.
If its 9.00pm-10.00pm and u elsewhere rather then in front of your TV set, either your
moronic, your IQ is the size of my foot or u have a grudge against Amitabh Bachchan
because Star TV and Amitabh bachchan have come together to play a biggest gamble ever
on Indian TV shows

The nation is waiting. The hot seat is ready, so is the Bollywood’s Badshah. As time ticks
away for phrases like lock kiya jaye and the like, made immortal by Amitabh Bachchan to be
mouthed again in his inimitable style, of course with his own variations, the television buff
has started asking, “Nau baj gaye kya? It was a word which created a Buzzzzz…..and
director had no need to spend more on its advertisement..

KBC has proved to be the proverbial cat among the pigeons, sending other prime-time rival
channels scurrying for cover. As Zee TV’s gets its act rite with ‘ Sawaal Dus Crore Ka’, SAB
TV will rely on Karishma to make up a glamorous game show wherein rights have have been
secured from abroad, SONY has already up its sleeve, Chapar Phaad Ke’ with govinda.

And the show becomes a super success in the huge Indian TV audience... the first Indian TV
mega-show is born.. TV budgets will never be the same.. The show has audiences glued to
their TV screens every weeknight for months... It made one person a crorepati.. it also
sparked off several such TV shows which dole out prizes which have to have "the crore
sound" As of now, no other TV show has been able to challenge it.

The show became a huge success in TV shows and created an impression of Reality TV
shows. In just a few week of its promotion it got a large no of big sponsers like Airtel,
Hyundai and Cadbury, Nokia and then Motorola in KBC 2 replaced nokia in bidding, UTI Mutual Fund,
Videocon, Godrej Sara Lee, Jyothi Labs, Pantaloon Retail (Big Bazaar) , the UB group and many
more…

The idea to cater Indian viewers clicked. It created a new value to Indian TV shows by
creating the factors like chance to become a participant and win a huge money which the
industry has never offered. The interest of viewers was kept in mind and the show was also
made up with some guest celebrity in the show at regular interval to eliminate the boredom of
the show. It was more interactive show with the viewers as compared to other shows like
Indian soaps which were based on family issues and religious things and catered mainly
women.Because of its value- innovation in Indian TV shows,it performed with excellence
and the 1st week after the announcement of the show, 30 lakh viewers called in.from this we
can analyse how it made the competition irrelevant. The success of KBC can be verified by
its TRP rating below:-

KBC did leave all the saas bahu serials behind

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1. KBC Star Plus 2130-2200 5.6
2. KBC Star Plus 2100-2130 4.9
3. Kahaani Ghar Ghar Kii Star Plus 2200-2230 4.7
4. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 2230-2300 4.5
5. Kasautii Zindagii Kay Star Plus 2030-2100 3.7
6. Saat Phere Zee TV 2130-2200 2.9
7. Kasamh Se Zee TV 2100-2130 2.6
8. Kahiin To Hoga Star Plus 2300-2330 2.4
9. Ghar Ki Lakshmi Betiyann Zee TV 2200-2230 2.2
10. Banoo Mein Teri Dulhann Zee TV 2000-2030 2.1
11. Maayka Zee TV 2030-2100 1.9
12. Karam Apnaa Apnaa Star Plus 2000-2030 1.6
13. Kumkum – Pyara Sa Bandhan Star Plus 1300-1330 1.6
14. Bhabhi Star Plus 1330-1400 1.5
15. Sinndoor – Tere Naam Ka Zee TV 1930-2000 1.5
16. Woh Rahne Waali Mehlon Ki Sahara One 2100-2130 1.4
17. Mamta Zee TV 1900-1930 1.2
18. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 1500-1530 1.2
19. Jabb Love Hua Zee TV 2230-2300 1.1
20. Saarrthi Star Plus 1430-1500 1.1

TRP rating clearly shows the Value-innovation which Director Siddharth Basu wanted to
deliver to Indian viewers and acceptance by Indian viewers. Where all other were busy with
their regular making of Indian soaps, KBC created a huge interest among viewers in just 1
week and that also the announcement of the show and created uncontested market space.

Today we have a lot of channels entering into reality shows like Big Boss, Hero Honda
Roadies,Splitsvilla,Dance India Dance etc . In blue oceans, demand is created rather than
fought over. There is ample opportunity for growth that is both profitable and rapid. In blue
oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue
ocean is an analogy to describe the wider, deeper potential of market space that is not yet
explored.

So it was my understanding of Blue ocean strategy applied in Indian TV shows which gave a
birth to reality shows.

In the end I would like to Thank Som sir to teach strategy formulation and giving real
examples of strategy in his lectures. So Computer
ji Lock kia jaye is report
ko with a great thanks to Dr. Som Sekhar Bhattacharrya as a lecturer
at NMIMS…

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References
 Blue Ocean Strategy is a business strategy book written by W. Chan Kim and Renée
Mauborgne

 Article on Kaun Banega Crorepati on indicine.com and www.imdb.com/title/tt0250875/

 TRP rating of KBC on http://www.indicine.com/movies/bollywood/trp-ratings-of-kbc-3/

 Kaun Banega review on mouthshut.com

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