Storm the Norm

by Anisha Motwani

  Third, how brands have chosen to define their success metrics is itself not a universal format. So across the rich spectrum of companies covered, you will read versatile definitions of success. Growth, share, behaviour change, external recognition, consumer take-up rate are just a few of the ways different brands have expressed their accomplishments. And rightly so, given that each organization is unique and so is its culture, stage of life and character, so how can success be one-dimensional?

  However, the lessons one can learn from each account as well as the key strategies that made achievements possible have uniformly been highlighted across the stories. Often, when a story is being told chronologically, it is possible that the big picture gets missed or the critical decisions and ideas seem obvious in retrospect. But that is where the real lessons lie for others. Hence the effort has been made to bring those out very clearly.

  The result? A diverse assortment of stories that give insight into what kind of levers can be used to create a winner brand. Take for example chocolate maker and market leader, Cadbury. Everyone has savoured the taste of Cadbury Dairy Milk, and nearly every marketer worth his/her salt would be aware of the brand’s successful integration into the traditional sweet-eating habit of Indians. But what strategies and actions went into achieving this? The Cadbury story documents how it all began with a big shift in thinking about business and growth. It is a lesson at many levels: a lesson on how a large and potent target audience can slowly become a roadblock for future business; a reminder that the path to growth need not always be through growing market share; a story of how it is possible for a foreign brand to become part of the cultural fabric without localizing the product too much. Equally the story showcases the magic that ensued when the brand adapted itself and created new codes that fitted more seamlessly with category and culture.

  Another example of a legacy brand is The Times of India (TOI), a brand that has been around more than 175 years. The TOI is a shining example of thriving and not just surviving in the marketplace. Its story documents a remarkable journey from being a marker of news and change to becoming an influencer of change for the nation. By taking bold bets and initiatives that were first of their kind, the brand not only helped its own business but also positively impacted and grew the entire sector. It is also a fascinating story of the much-less-talked-about business lever— pricing. The TOI’s continuous innovation on pricing helped boost its profitability in a cost-loaded business. There are other important lessons to be learnt such as how to refresh the product to attract new consumers without alienating existing ones in a category that is strongly habit-driven. The TOI story depicts how razor-sharp identification of target audience and subsequent ways of connecting with it ensure that the brand is and will remain an indispensible part of millions of Indian lives.

  Let’s change gears to a challenger brand now. When you think of great products, bathing soap is hardly the first thing that comes to mind. However, that is exactly what the Indian Tobacco Company (ITC) aimed to do, when it decided to penetrate the category with Fiama Di Wills. A really late entrant into one of the oldest categories in the country, the brand was clear that its foremost intent was to challenge the typical soap and create a sensational new product—one that was differentiated not merely by form, colour or fragrance, but also a concoction of ingredients and technology that Indians had never witnessed before. The Fiama Di Wills story illustrates how some companies are clear that first it is critical to create a hero product. The bells and whistles and propositions and campaigns can come much later. In its endeavour to deliver a new, unmatched experience to consumers, there were so many stumbling blocks that the Fiama team had to face, so many occasions when it could have given up and created a me-too product and just used the ITC muscle to push sales. But it didn’t. It persisted every time it was tested, to ultimately emerge with a winner.

  Moving to another league of brands altogether—the young entrepreneurial businesses. While there are plenty of such success stories in India today, I have selected a few that have made a mark in more ways than one. These are businesses whose success is not simply measured in terms of business valuation or the fact that they are media darlings, but those whose start-to-date journeys hold vital lessons in doing business for everyone. For instance, MakeMyTrip. This is an extraordinary story of pursuing the dream of forever changing the way Indians researched, planned and booked their travel. From the days where vacation planning was a tedious project and life without travel agents and long ticketing queues unthinkable, to now, when online travel planning and purchasing is common practice, this brand has had a pioneering role in shaping the change. By riding emerging trends, taking sensible decisions when a large bulk of the market was not ready for their dream and fostering deep relationships with allied partners, Deep Kalra and his team strategized their way to success. Like a great movie, the journey had several twists and turns and a few occasions when the founder was tempted to sell or shut shop but chose to keep faith instead. What adds to the excitement is that the MakeMyTrip story is packed with not one or two but so many innovations across product offerings, service standards, technology, marketing and operations that one is constantly looking out for what next they did differently!

  Such remarkable lessons continue across other entrepreneurial brands as well. What these kinds of brands do best is to open up refreshing ways of thinking and going about their business, so they naturally offer many valuable lessons along the way. Like PVR, where Ajay Bijli turned the whole expectation from cinema theatre upside down. Until the 1990s, cinema theatres were mostly just a destination, and movies were the real deal. The theatre itself was just a venue for stories to unfold. But he changed all that. Not only did he introduce the country to the multiplex, he created a new era in movie watching, where choice, comfort, luxury and entertainment all came together to take the movie-goer’s experience to a new high.

  There are several more examples of such category transformation. Radio Mirchi, for instance, is a story of a turnaround of the radio medium itself; of how a boring medium from which expectations had remained unchanged for decades, turned cool and irreverent; and how entertainment found a new source. It is also a great lesson on how you can win many fans by experimenting all the way through.

  Many of you may not know this, but Raymond’s ‘The Complete Man’ broke the conventions of fashion advertising in its time. Then there is Honda two wheelers—a fabulous story of storming the norm in scooters and making Activa a resounding success, and then of how it carried with it its winning strategies post its joint venture with Hero coming to an end. On a completely different note is the story of Sprite, a brand built on communication, on strongly marrying youth insights with product truth, of turning an absolutely niche lime category into a mass brand.

  Similarly there are Ford EcoSport, Axis Bank, Kissan, MTR Foods, Saffola, Dabur Real, Sensodyne, Tata Tea and Mahindra XUV500. Each of their growth stories provides insights into creating a storm in their respective categories and achieving outstanding results. Some successes are based on distribution, some on product, some on communication, while others are based on core business models. There are stories of reinvention, of strategies on market expansion, and some even of using weaker siblings in the brand portfolio to fortify overall business.

  So choose what interests you and make your start. I hope you will find something of value to help put your brand or business on fast track. It does not matter what stage your business or the organization that you work for is at—nascent, young, middle-aged or old. You will find a strategy and lesson that could help you storm the norm. On the way, you might pick up ideas for strengthening relationships with your customers and prospects, gather some insights on decision-making and become aware of strategies that are bound to fail and those that have high potential for succeeding. You will also see how consumers reject you when you go unprepared and try to market yourself as the best they have ever seen. You will learn about the consequences that the strongest of brand
s faced when they moved too far from their brand’s core. Last, but certainly not the least, you will see how some companies identified hidden opportunities while others leveraged the most obvious of consumer trends to great advantage.

  Whatever approach you choose to take, I hope that Storm the Norm proves useful and the thoughts presented in the book trigger ideas to help strengthen your own way of working and lead to you creating or boosting a winning business. Happy reading, happy storming.

  Anisha Motwani

  Entrepreneur

  THE MULTIPLEX REVOLUTION

  One of the earliest and most enduring success stories of Indian liberalization is that of brand PVR, powered by its multi-talented Chairman and Managing Director (MD) Ajay Bijli. Ajay Bijli is a Harvard Business School alumnus and has been named in the World Economic Forum’s list of young global leaders besides being awarded the EY Entrepreneur of the Year in Business Transformation in 2013.

  From introducing the first multiplex experience in India, to becoming the undisputed leader in the space, the PVR Group is one of India’s most successful entrepreneurial ventures. The inspiring story of brand PVR—crafted by the forward thinking and vision of Ajay Bijli—is recounted here.

  One of the key traits of a visionary leader is their ability to spot opportunity and take calculated risks and that’s exactly what Ajay Bijli did. Way back in 1997, he launched India’s first multiplex and the rest, as they say, is history. Over a million people visited the multiplex within the first year of its opening. Today, the over ₹1000 crore PVR Group is the largest player in the Indian cinema exhibition space.

  Act 1

  Scene 1: Flashback

  After completing his graduation from Delhi University, Ajay knew his calling was the family business. He joined the transport business set up by his grandfather (Lala Sain Das alias Bijli Pehelwan) in 1939. It was an old company, set in its ways, which may have been the reason he struggled in the business. The Amritsar Transport Company had its office near Rivoli cinema and Ajay would see it every day, little realizing that he would one day be the agent of its transformation. The Amritsar Transport Company also owned Priya Cinema in Vasant Vihar, a single-screen cinema at that time. It had been acquired by Ajay’s father Krishan Mohan Bijli way back in 1976. Ajay frequented Priya often and very soon, triggered by his entrepreneurial itch, he got involved in the single-screen cinema business.

  Scene 2: The idea takes seed

  On a visit to Orlando, Florida, after his marriage in 1990, Ajay had his first experience of world-class cinemas and was fascinated by the new-age facilities of multiplexes. On returning, he renovated and transformed the old and dilapidated Priya cinema, until then screening only Hollywood movies largely for college-going audiences, into a modern, up-market, youth-centric hall. It became the first in India with a Dolby sound system.

  Visionary leaders have a commitment to doing something big and a passion to make it happen. With the support of his mother, who was also his mentor, Ajay decided to pursue his dream and the marketplace was ripe with opportunity. Ajay brought in the next level of film entertainment with choice, comfort and convenience to viewers. In Ajay’s own words: ‘I was passionate about the desire to provide millions of people with impeccable cinema viewing and a wholesome entertainment experience. That was my early evolution as an entrepreneur.’

  Scene 3: A new beginning

  The technical transformation was just the beginning at Priya cinema. The facility experienced innovations and installations which further enhanced viewer comfort. Screening all big-budget Hindi films and Hollywood blockbusters, Priya became a hot destination for cinemagoers and acquired almost cult status.

  This phase was Ajay’s early evolution as an entrepreneur and the hands-on experience helped him develop clarity on the business segments he would focus upon.

  It was the dawn of a new era in cine-viewing in the country—it was time for the country to embrace multiplexes.

  Act 2

  Scene 1: Winning through

  The hurdle was that nobody in the country, including architects, knew how to make multiplexes. Every step was fraught with challenges which required tenacity and courage to overcome. Government permissions were needed to sell tickets and candy bars through computerized operations. Building bylaws were draconian.

  It was at this point that Ajay decided to enter into a joint venture with a technology partner. In April 1995, brand PVR was created with a 60:40 share for Priya Exhibitors Pvt. Ltd and Village Roadshow Ltd of Australia.

  About Village Roadshow Ltd: Based in Melbourne, Australia, Village Roadshow is a leading international entertainment and media company with operations spread across multiple countries. Its core businesses include theme parks, film distribution, cinema exhibition and film production. Village Roadshow has been listed on the Australian Securities Exchange (ASX) since 1988.

  However, the challenges continued. Attracting talent was yet another hurdle that PVR faced. It was the desire to do something big and relevant that kept the momentum going.

  PVR Anupam, which at that time belonged to old Delhi builders, was transformed into the first multiscreen cinema in 1997 and became a runaway success.

  Scene 2: Building a property, building a brand

  Ajay looked at the business through the customer’s prism: what does the customer need and what is the market offering it? This took precedence over the typical emphasis on returns on investment or net profit margins. This shift in focus, backed by market studies, research and interactions with market players led to PVR embarking on its brand building journey.

  Ajay understood that one of the important building blocks of a successful film entertainment and retail business was location. When it came to building multiplexes, PVR chose the location of its properties very carefully. Target market segment, socio-economic strata and catchment area were examined in granular detail.

  Quality of experience was the next critical building block. Right from construction to fittings and styling—everything was fashioned to provide a plush viewing experience. Rich ambient lighting set the perfect mood and ideal temperature controls ensured total comfort. The auditoriums were designed to captivate cine goers with different ambiences and the highest quality of sound engineering made the entertainment experience thoroughly immersive. Special care was taken at every step to ensure that even common areas manifested the chic and premium PVR experience, thus providing all the ingredients that went into making PVR the benchmark for cine viewing.

  PVR also brought in transparency into the system by introducing computerized bookings. Earlier film distributors would open films but were not sure of collections. However, they now had more money in their hands and wholeheartedly welcomed the new concept. It enabled producers to make better productions with good quality content.

  There was significant focus on building a happy professional work environment for all employees with clear mandate to design out-of-the box solutions, so as to allow abundant creativity in key functions. That communicated the essence of what PVR was trying to do.

  There have been tangible results and the brand has been able to garner higher seat occupancy levels in cinemas irrespective of average ticket prices. At the same time, movie goers have utilized the varied services offered by PVR including food and beverages. The intangible benefits have lain in PVR being seen as a thought leader—a company that respects innovation and is at the forefront of new ideas. PVR’s large risk-taking appetite has also resulted in more opportunities coming its way. Its brand equity is also a competitive advantage and has helped PVR attract smarter talent.

  Scene 3: Evolution of the brand and the big acquisition

  Growth is imperative for any business. PVR, too, has systematically scaled up film-exhibition activities through an organic process for nearly seventeen years—be it in product, positioning, promotions or pricing.

  After the 9/11 terror attacks in the United States, Village Roadshow Ltd curtailed its global operations and exited the joi
nt venture. ICICI Venture picked up its entire 40 per cent stake for about 10 million dollars. Other private equity firms pumped in money as PVR branched into film production in 2007 with Taare Zameen Par, made in collaboration with Aamir Khan Productions.

  Ajay’s younger brother Sanjeev Kumar Bijli was instrumental in establishing key relationships with many Hollywood studios including Miramax, Newline, IEG and Zee MGM. He managed the film acquisition and distribution business and programming activities, and identified new business opportunities in areas like digital and franchise operations. A perfectionist and a pragmatic thinker, Sanjeev complemented Ajay’s entrepreneurial streak to create the right balance in the business.

  In November 2012, PVR acquired the entire 69 per cent stake of promoters in Cinemax India Ltd. At that time, Cinemax India was the No. 4 chain in the movie theatre business, with 138 screens across 39 properties all over India. The acquisition was made through PVR’s wholly owned subsidiary Cine Hospitality Pvt. Ltd and made PVR the leader in the Indian cinema-exhibition business.

  This multi-crore deal came with its own share of problems. The Cinemax acquisition was much more than the market cap of PVR Ltd and established PVR as the clear leader in the cinema exhibition business. While the PVR brand had always been committed to providing people excellence in this space, it now had the scale to achieve its goals.

  This acquisition was one of the fastest-paced takeover deals in India’s corporate history. The objective was to create India’s largest movie exhibition chain and also to effectively utilize the synergy potential and cost benefits that would accrue from the larger scale of operations of the combined network, thereby creating value for all stakeholders.

  PVR Pictures Production: Taare Zameen Par

  In 2013, PVR multiplied in size and operations. The company expanded its presence from 27 cities to 41 and its market capitalization was reported to be ₹2,204 crore (as on 1 February 2014). It now owned just under a third of India’s 1,500 odd multiplex screens. While it had long been the undisputed leader in the north, the Cinemax acquisition gave the company an edge in the west and a launching pad in the south.