Hotstar notches up 200 million views in IPL 8-Case Study
The 8th edition of the Indian Premier League(IPL) ended in triumph not just for Champions
Mumbai Indians but also the mobile streaming app hotstar with over 200 million views
compared to 61 million views in the last season(A threefold
jump)The app also drew 340 million views for all the 49 matches of
the recently concluded ICC Cricket World Cup as the 50-
over tournament’s 2015 edition became the largest sporting event on digital media
Hotstar has won the digital rights for IPL for a three-
year period ending in 2017.The advertiser base for IPL-8 grew nearly 200% to 62 brands compared with 21
brands that advertised on Starsports.com in IPL-7.
Brands advertising this year included Hindustan Unilever
Ltd, Housing.com, Arvind Brands, Samsung, Bharti
Airtel, Vodafone, Levi’s & Karbonn
Media buyers estimate Hotstar made Rs.50 Crore in advertising revenue in IPL-8(a 25% increase
over the last season)Hotstar not only beamed in all 60 IPL Games but also created sports shows for the tournament including a made-for-digital pre-
show called 20-Minute 20 Second T20 & in addition it
extended its weekly show ‘Juicy Half Volley’ launched for the ICC Cricket World Cup 2015
This is the App’s second major boost
from cricket this year after it drew 340
million views during the cricket “World Cup”
Innovation Checklist
BudgetDevote a well-
protected & well deployed budget to experiment & R&D Time
Spend more-time in the earlier part of the
innovation funnel with a formal
process for shortlisting
USPIdentify ‘winning
characteristics that can be grafted onto
your innovation pipeline
Fast entryGet to market with
the entire range faster, resist that
temptation to discount early
CollaborationInvolve retailers & other partners in the
ideation process
Every business has to concentrate on above 5 Formulae's for breakthrough Innovations
Key characteristics of breakthrough Innovations
1.Multiple reasons to believeSuperior innovation must possess more
& deliver more. This happens when companies offer consumers multiple
benefits & proof points instead of focusing only on a singular
benefit/functional aspect
2.Popularizing the premium offeringBreakthrough innovations is often created by making some premium features available at a more approachable price instead of reserving more aspirational features for a select section
of customers
3.Being within ‘Palms Reach’Use Technology like online ordering/Apps
4.Accelerated & frequent interaction during the buying cycle
Reducing consumer anxiety from the moment of purchase up to the time of delivery. Frequent updates to
reassure customers of the delivery of their purchase through the use of technology
Ex: Flipkart messages giving live status of the items purchased5.Adding more to an existing occasion
While many try too hard to create entirely new occasions, breakthrough innovations
are more adapt at taking existing occasions & elevating them by addressing consumers
anxieties & amplifying positives
6.Ease of access & operationWinning innovations communicate &
exemplify a new found ease in operation & use making the most of them relative
to their competitors
7.Culturally adaptedSuccessful innovations
adapt their formulations/communicat
ion to address local needs/tastes/preferences
8.Whether as a service/product,
wining innovations demonstrate &
encourage tactile interaction depicting it in their messages making it integral to
the product use
A study by Nielsen reveals only 23 brands out of 16,914 launches from the yaer 2012 qualified as breakthrough Innovations
These 23 launches are culled from more than 80 FMCG categories including food, personal care, houlsehold
care,over-the-counter products & soft drinks
16,891 brands got slapped with a scarlet
Innovation
According to survey by Nielsen, Indian
innovators are dealing with 4 key elements
Why 99% of FMCG Innovations Fail?
A narrow category view-The launch of Fair & Handsome(a fairness cream for men) is often cited as a breakthrough product
launch that shrewdly grabbed pre-existing opportunity everyone seemed to have missed
-Given a large population & a growing awareness about personal hygiene, ‘sanitary napkins ought to catch the imagination of the masses’. The industry
need to find a more economical product so adoption can happen at a large scale. These companies are probably happy with the growth they have but the
base at which they are growing vis-à-vis, the Indian population proves they have still got only the
middle class/urban set & not masses
If Surf carried on thinking other detergents are the competition, it would innovate less. When Surf started thinking of water & its quantum of use for washing as its competition, it
moved ahead. Hence “Do Bucket Paani Bachaana Hai Campaign” was formulated
Why do low-involvement categories call for high levels of innovation
Being a low involvement category ought not to be equated with being low on innovation since many brands in Nielsen ‘s Breakthrough Innovation Report
2015 has shown. These low involvement products include categories like toothbrush, candies, mosquito repellents & condoms among others
Skore Condoms
Durex(a product of Reckitt Benkiser)had unveiled a campaign “DoTheRex” featuring bollywood actor ‘Ranveer Singh’ as the Brand Ambassador or Sunny Leone’s skill at smearing herself with
gooey chocolate(for Manforce)-The innovation template typically was aimed at flavors & textures but Chennai based Skore (from TTK-PDL) managed to stand apart & gain market share
with its orientation towards user experience.•USP-Skore claims to be the first to launch color & flavor together, others have done so separately.•M-Commerce-Skore unveiled India’s first M-Commerce platform for condom shopping•Disposal Pouch-To address the issue of getting rid of a used condom, the brand introduced a disposal pouch with the pack
In the edible confectionary category, Alpenliebe, the flagship brand of Perfetti Van Melle in india has been offering products which are suitably localized & customized. Three of its
brands Juzt Jelly, Alpenliebe Spicy 1 & Alpenliebe2ChocoEclairs.This category is characterized with ‘low entry barrier & low levels of involvement’ which means that
consumers rapidly switch from one brand to another
Alpenliebe Spicy1I case of Alpenliebe Spicy1 what worked is its localized concoction of a sweet candy filled with locally blended spices. The idea was to use spices that appeal to the Indian paletteAlpenliebe Juzt JellyIn the case of this brand,the hook is a vegetarian jelly product for the Indian market using natural fruit pulp & launched in real fruit shapes with a
distinctive soft bite. Typically “Jelly”- internationally is a big segment but had registered negligible presence in India largely owing to the prevalent usage of non-vegetarian ingredients & product instability in extreme weather conditions & on both parameters ,the brand has innovated successfully & became the largest brand in market share in the candies segment by end 2014-according to Industry Sources
Parachute Advances Body LotionoBeing a relative late entrant in a Rs.800 Crores + category with well-entrenched players like Vaseline, Pond’s, Nivea & Emami did not make Marico break into proverbial cold sweat when it set out to launch parachute Advanced Body LotionoThe brand managed to create a differentiated proposition made relevant for the Indian ConsumeroAdaptability: Prachute Advanced Body Lotion has been designed for Indian skin. It encapsulates the goodness of coconut & has world class sensorialsoPackaging: The differentiated packaging & engaging advertising has been able to drive trials for the brand
Sensodyne(GSK Consumer Healthcare)
Mantra of “Sensitivity in Oral Care”:The toothbrush portfolio is essentially reaping the benefits of the parent brand taking the leadership stance on ‘sensitivity in oral care’ & in the process democratizing the idea of sensitivity in the countrySensodyne is seen as owing the benefit in the consumer’s mind even as it goes about building the franchise on sensitive teeth with not just toothpaste but even toothbrushGSK Positioning of Sensodyne: The idea was to further drive & entrench the brand into everyday habit of teeth b rushing thereby strengthening the presence of the brand amongst existing users as well as reaching out to new onesTeeth-Cleaning experience: The Sensodyne (Toothbrush)product design was enhanced to provide better grip & angle to ensure a better cleaning experience to meet the identified unmet needs of the category-”Cleaning with Care” & “Maximum Protection”. The brand has shown the power of differentiation & innovation in a mature category
In the case of toothbrush, one of the 3 brands that have emerged winners is Sensodyne along with Colgate & Pepsodent. The reasons for Sensodyne’s
success are quite revealing since the brand has never really gone out & spent mega marketing dollars for the toothbrush portfolio
Innovation MantraOpinion by Devdutt Pattanaik (Indian Mythologist)
Startups V/s Corporation In a startup, the risk is taken by an individual or perhaps a bunch of individuals who stake their career & comfort to take a risk & are answerable to no one but themselves
but in a Corporation there is a whole bunch of shareholders who want quarter-by-quarter success & have hawk-eyed auditors & regulators checking if their investment
is safe. Both these two ecosystems are different
We are always told successful stories of startups & innovators. No one really tells us the failure rates. More than hundreds & thousands of ‘Garage Enterprises’ have failed
despite promising starts & great investments
Startups can handle the failure but in corporations, someone needs to be held responsible for the loss of shareholder money. Who will it be? CEO. Will the CEO sacrifice his bonus if the innovation do not manifest or fail to deliver a promise
An innovator usually innovates so that he can benefit from the innovation. He is spellbound by the glamour associated with innovation-the million of dollars, the
invitation to give talks at entrepreneur summits, the standard talk of hard work & risk taking & perseverance which meets with standing ovation but in a corporation who will benefit from the innovation-the individual, the team or will they get just a silver of the
profitwith the larger lions share going to the investor
In Indian Brahmin was expected to stay poor in the persuit of knowledge & the trader was expected to stay rich in the persuit of wealth. But in the
new world order, every brahmin functions like a trader & every trader functions like a brahmin. Innovation is not its own reward, the money
matters. The developer/innovator is constantly afraid if the large corporation will appropriate his idea& he will be left with the scraps. Its a real fear that makes many smart developers want to leave & start their
own start-ups
Corporations can use a share of their wealth to support startups outside their controlled ecosystem. To support inside the corporation requires a
great deal of courage
Ex: Google & Apple Inc is striding forth in this direction by investing in entrepreneurship within the company by encouraging the employees to
start on their own. This also requires courage on the part of the shareholders & the willingness to gamble/even fail. Failures is something
only few Management Boards would approve