Creating New Markets!

Some valuable lessons I learnt

» In every problem, there is an opportunity.

» Looking beyond the obvious..

» Do not give up till you have run out of options..

» But then do not hope like hell something works out..

» When you hit a wall…

» Necessity is the mother of all creation!

Creating a market for Organs

India : 0.05 per million ( 50 cadaver donations per year. West -25,000 per year)

( Organs donated per million)

Why Pledge Your Organ?By being an organ donor

Did you know?

» In India every year nearly 500,000 people who die because of non-availability of organs

» 1,50,000 people await a kidney transplant

» 2 lakh people die of liver disease,

» 50,000 from heart disease and

» 10 lakh people suffer from corneal blindness and await transplant

7 50Lives can be saved

by way of organ donation Lives can be enhanced

by way of tissue donation

» The Problem:

» Hope

» Religion

» Emotion

» The task:

» To convince relatives to ‘give up life and give life’

The Objective: Increase awareness of the need for donating organs

Film

Delhi-Bagdogra

Delhi–Kolkata

Hyderabad-Kolkata

And return flights

five

Marketing budgets a big issue..

Optimizing Unsold inventoryThe Problem

» Competition had marketing budgets 100 times more than what we had (Rs. 60cr vis-a-vis Rs. 50 lacs)

» Occupancy was at 48% and we were losing money» 3000 seats going empty every day» Very poor share of voice in media

The Insight» @ 43% load factor we had 102 seats going empty every day

x 30 flights a day = 3078 seats a day = 92, 340 seats a month» Cost of carrying an incremental customer was Rs 112

» Rs 92/- per pax extra fuel burn » Rs 8 to IGT» Rs 2 for the boarding card

» We had to get rid of Perishable seats effectively

Data for Tuesday 12th October, 2004

Collection Analysis across touch points Call Center Analysis

No of Calls %age

Rs % of total

Travel Agents 6822731 45.98 Karnataka 1830

Call Center 1361298 9.17 A.P. 745

Airports 1870292 12.60 Chennai 560

Internet Home User 4511762 30.41 T.N. 74

Head Office 272700 1.84 Mumbai 1372

E-Agency 0 Gujarat 67

Maharashtra 64

Delhi 1043

Total Collection for the day: 14838783 Total Calls received: 5755

Credit card seats booked at call center 569 9.89 % percent of total calls

Revenue Analysis Collection Analysis

Rs Rs %

Day's revenue from tickets: 5,670,559 Dep A/c: 7382545 50Day's PAX flown: 2273 Credit Cd: 7456239 50

Day's Revenue per PAX: Rs 2495 14838784

Max Load Total ATR Load Factor 54.68

Total A-320 Load Factor 32.67

Total 43.34

The harsh reality

Operating expense Rs 75 lacs a day. Death was imminent.

The virality of the idea

Fly for just Rs 500/- or for Re 1/- !Fly for just Rs 500/- or for Re 1/- !

The Outcome

Income Rs 87 lacs a day. Approximately 50% were first time fliers

Data for Tuesday 19th October, 2004

Collection Analysis across touch points Call Center Analysis

No of Calls %age

Rs % of total

Travel Agents 6162409 45.17 Karnataka 1696

Call Center 1272223 9.33 A.P. 879

Airports 2032824 14.90 Chennai 725

Internet Home User 4049953 29.69 T.N. 72

Head Office 124003 0.91 Mumbai 1835

E-Agency 0 Gujarat 126

Maharashtra 73

Delhi 1087

Total Collection for the day: 13641412 Total Calls received: 6493

Credit card seats booked at call center 590 9.09 % percent of total callsRevenue Analysis Collection Analysis

Rs Rs %

Day's revenue from tickets: 8,756,311 Dep A/c: 6892345 51

Day's PAX flown: 3612 Credit Cd: 6749067 49

Day's Revenue per PAX: Rs 2424 13641412

Max Load Total ATR Load Factor 75.41

Total A-320 Load Factor 81.76

Total 78.39

Marketing as a Cost Centre

A New Advertising Opportunity

» US Pizza was a small company expanding through ‘profits’» Capex was major constraint

» Rs 2 lacs rent deposit ( 10 months deposit)» Rs 7- 10 lacs to set up an outlet

» Marketing was a bigger challenge

Collaborate to create new opportunities! Every one has a problem/need

Ask and you shall be given or rejected

The Goal

» Primary» To scale exponentially

» Talk to 1 or 2 companies to do all India rental deal

» Link rental to % of ‘Sales’

» Secondary » High visibility frontage

» High foot fall possibility

At HPCL Petrol PumpsHPCL Outlet – DRDO, Bangalore

» 200 outlet deal ( From 14 – 100 in 32 months ( 1-14 in 17 years))» Rs 10 lacs per outlet capex» 10% of sale with an MG ( rental always higher than MG)

Creating a new market

Creating a new market- for air ambulances

Some valuable lessons I learnt…

» New markets are created when you question the status quo.

» Opportunities are like ships in the dark…

» It not about resources but being resourceful that helps Blue ocean.

» Think positive, but act on the negatives.

» New markets are created when you either disrupt the existing market, or seize a

new opportunity -on the back of great consumer insights.

Thank you

My Inspiration:

• The ‘ant’ can run very quickly. If a human could run as fast, for his size, as the ant can, he could run as fast as a racehorse.

• The ‘ant’ can lift 20 times their own body weight. At an average weight of 60kgs, this would translate to a lift of 1200kgs.

• A colony of ‘ants’ communicate well with each other and very effectively too. That with no e-mails, mobile phones, technology...

• A colony of ‘ants’ operates as a collective, they are intelligent and can do remarkable things, guaranteed.

• The ‘ants’ follow a simple system of division of labour. They know what needs to be done and who will do it. No questions asked.

• The ‘ants’ have an ability to solve complex problems. How’s that for an insect that size.• Ants’ are good at finding new places to live in and very good at finding food. They are great

survivors.• The ‘ant’ is probably the last place one would expect to find a maths whiz, but researchers

have shown that this humble insect can do what a few computer algorithms can.• ‘Ants’ are adept at solving difficult mathematical problems and can adapt the optimal solution

to fit a changing problem. • However, complex the route, ‘ants’ will surely and efficiently find the fastest way to food.

Thank you

Synergizing a common platform