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BUSINESS MODEL OF KBC

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Page 1: KBC - Business Model

BUSINESS MODEL OF KBC

Page 2: KBC - Business Model

• They can suddenly boost the ratings of a channel and draw in new

viewers.

• A top reality show commands 20-25 minutes of viewership in every

hour of telecast. Soaps get about 10 minutes of viewership (for 30

minutes of telecast time).

• They are most efficiently used in marketing the channel’s other

programmes. For example, ad breaks in a reality show like KBC are

mostly used to peddle its own shows.

• The kbc platform in its 4th season reached 81 million viewers in the first

week itself and sony used it to launch two fiction shows — tera mujhse

hay pehle ka nata koi and saas bina sasuraal.

WHY REALITY SHOW

Page 3: KBC - Business Model

• KBC is a game show a reality show

• It is created by Siddhartha Basu

• Presented by Amitabh Bachchan and Shahrukh Khan

• The creators are Keith and Mathew Strachan

• Produced by Big Synergy Productions

• Distributed by Sony

• Broadcasted on Star plus From 200-2007 and there after on sony

INTRODUCTION TO KBC

Page 4: KBC - Business Model

• Kaun Banega Crorepati is an Indian reality/game show based on the

UK game show Who Wants to Be a Millionaire?

• The show first aired in 2000 and was hosted by Amitabh Bachchan.

• The show was popularly received in India

• The show has aired 5 seasons in all till now

• It has received many awards like best game show of the year the ITA

achiever award and many more every year it was conducted

INTRODUCTION TO KBC

Page 5: KBC - Business Model

• The show was first aired in 2000 and was hosted by Amitabh

Bachchan

• On August 5, 2005, the show was restarted after a 4 years hiatus

and was ended when the host fell ill.

• Star Television roped in Shahrukh Khan to host the part 3 of KBC,

which didn’t receive good reviews and the TRP fell drastically

• 4th season onwards the show was aired on Sony Television instead

of Star Television and the first host came back in

INTRODUCTION TO KBC

Page 6: KBC - Business Model

• KBC Season 5 was rated the best reality show this year

• TRP exceeding 4 throughout its 52 episodes

KBC – SEASON 5 PLAYOUT

2-3 2.4 4-4.5

Page 7: KBC - Business Model

• Currently, Sony pays the prize money.

• But not from its own pocket as it charges heavy rates from the advertising companies during the chhota sa break.

• It is no guess who pays for “Kaun Banega Crorepati”- you the consumers.

• Sources indicate that every 10-second ad spot has been sold at Rs 3.5 lakh. With this calculation the average revenue per day is likely to be Rs 2 crore.

WHO PAYS FOR KBC

Page 8: KBC - Business Model

• Aims to utilize mobile and online media to retain consumer interest and earn revenue from the quiz show brand

• Has already unveiled the KBC micro site http://www.kaunbanegacrorepati.org.in

• It uploads videos and games related to the show

• It will also screen special episodes and behind-the-scenes videos

• The game application will be offered for free; but mobile users will be charged (by the mobile phone service provider) for data usage, when they download and play the game

• Revenue will be shared between MSM, UTV Indiagames and the mobile phone operator.

SET KEEPS KBC ALIVE

Page 9: KBC - Business Model

SPONSERS

ASSOCIATE SPONSERS

PRESENTING PARTNER

Each associate partner pays between 16-18 crores for 60 Secs of commercials

KBC 5 – SPONSERS & PARTNERS

Page 10: KBC - Business Model

o Cost estimates were around Rs 100 crore

o Prize money and pays for the host, which is almost 70% of the total cost

o License fees, including hardware and software costs amount around 10%-12% of the production cost

o Bought licenses for six languages—Tamil, Telugu, Kannada, Malayalam, Bengali and Bhojpuri.

KBC 5 – COST ESTIMATES

Page 11: KBC - Business Model

SOURCES OF REVENUE

• One of the major sources through which KBC earns its large chunk

of revenue is through the advertisement space sold in the media at

really high prices

• The co sponsors also contribute to a great extent

• It also earns nearly Rs 1 crore through the redemption insurance

policy

• The sms and calls made by the participants also contribute to huge

amounts

REVENUE GENERATION

Page 12: KBC - Business Model

THROUGH SMS AND CALLS

For IDEA Subscribers

Dial 55456 '01‘/ '02’/ '03‘/ '04' if the answer is Option A/B/C/D*Up to Rs.5 per minute *Available only for Idea Mobile Subscribers.

Similarly IDEA subscribers can SMS their answers to 554567

SMS KBC<space>A / B / C / D to 554567* Upto Rs. 5 per SMS *Available only for Idea Mobile Subscribers

KBC 5 received more that 120 million SMS’ and phone calls

REVENUE GENERATION

Page 13: KBC - Business Model

THROUGH ADVERTISMENTS

1. Presenting sponsor - Cadbury (paid 25 Crore)

2. Telecom Partner - Idea Cellular (Paid 35 Crore)

3. Associate Sponsors – – Samsung Smart TV, – Maruti, – Pepsi, – Just Dial,– Hero MotoCorp and– Axis Bank (Rs 16 and 18 crore for 60 seconds of commercials during each episode)

The remaining ad inventory will be sold to spot buyers for almost Rs 4 lakh per 10 seconds of ad

REVENUE GENERATION

Page 14: KBC - Business Model

THROUGH REDEMPTION INSURANCE POLICY

• It earned close to Rs1 crore by taking an over- redemption policy with

National Insurance Company (NIC).

• This policy, which forms a part of wagering insurance, includes commercial

contracts of insurance or contracts which deal in futures and options

• KBC purchased this policy by paying a one-time premium of Rs7.5 crore to

NIC, in anticipation that they would give out prize money worth Rs7 crore

and more.

REVENUE GENERATION

Page 15: KBC - Business Model

• KBC was confident of giving out prize money worth Rs7 crore and more, but

it didn’t include the prize money given to the 10 invited celebrities

• The contract also suggested that Rs7 crores of prize money that KBC gives

away will include only sums of Rs50 lakh, and above. Players taking home

anything below these will not be included in the amount of Rs7 crore.

• While KBC crossed this limit , the amount claimed was Rs8.5 crore by KBC as

the decision fell in their favour.

REVENUE GENERATION

Page 16: KBC - Business Model

• So KBC according to the claim got the amount of 8.5 crores

• However they had paid a premium of 7.5

• So they earned a revenue of RS1 Crore by the easiest means of taking

insurance.

REVENUE GENERATION

Page 17: KBC - Business Model

• The moment the megastar says about the beginning, a strip appears at the bottom of the television screen, a visual of chocolate maker Cadbury's popular ad campaign, SHUBH AARAMBH.

• When Amitabh asks questions ”Computerji” viewer is drawn to Samsung smart TV.

• Britannia did its popular 50:50 biscuit branding around the lifeline of the same name.

• Ad Campaigns : ‘Koi bhi sawaal chota nahi hota’ & Koi bhi insaan chota nahi hota’

ADVERTISING STRATEGIES

Page 18: KBC - Business Model

• Conceptualized by Leo Burnett and produced by Chrome Pictures• It reiterates the power that lies with the average middle-class man.• The campaign consists of five TVCs• first of which went Live on YouTube on 15 June, 2011.• touching the chord with the aam aadmi (5.4 trp)

"Koi bhi insaan chota nai hota"

Page 19: KBC - Business Model

BUG BRANDING

Page 20: KBC - Business Model

BUG BRANDING

Page 21: KBC - Business Model

STRENGTHS

• Undisputedly most popular reality game show from the past decade

• Included celebrity as players, host, viewers

• Broadcasted in popular family entertainment channel

• Broadcasted in the peak television viewing time frame

• Roped in star charisma and social cause

• Lengthening of telecast time

• High spending from Sony Television (Rs.800-1000 million)

• Humble attitude of the host

SWOT

Page 22: KBC - Business Model

WEAKNESSES

• Absence of the celebrated celebrity of the show brought the TRP of

the show down

• Viewers were not able to connect with Shahrukh Khan

• Still bears the image of the copy cat show “Who wants to be a

Millionaire?”

• Treated as a gamble

• Tax angling to the Winners

SWOT

Page 23: KBC - Business Model

OPPORTUNITIES

• It has a set platform because of the popularity of it’s host- Amitabh

Bachchan

• Opportunity to address global audience

• Endorsement of international celebrity

• Lengthening of telecast time

• The show's positioning has been amplified from "Koi bhi sawaal chota

nai hota" to 'Koi bhi insaan chota nahin hota‘

• Attracting a younger population with a non-fiction base

• Fiction Shows are losing its charm due to the same stereotype and

predicted storylines

SWOT

Page 24: KBC - Business Model

THREATS

• Loss on money in publicity

• Loosing TRP rate to competition

• Viewer’s inclination for fun plus entertainment reality show

SWOT

Page 25: KBC - Business Model

• Biggest innovation in Indian TV shows of entertainment

• 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.

• “ 9 baj gaye kya”

• 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

• New concept was missing

• Not only entertainment but also a chance for winning

BLUE OCEAN STRATEGY

Page 26: KBC - Business Model

• Introduced a new contest for the home viewers

– ‘Ghar Baithe Jeeto Jackpot.

• Ghar Baithe Jeeto Jackpot winner WASchosen randomly from the

correct entries and he/she will get Rs 1, 00,000

• A question for this contest was asked in every episode and there

was a winner in every episode

GHAR BAITHE JEETO JACKPOT

Page 27: KBC - Business Model

• Survey by Vritti i-Media revealed that the ad jingle of Kaun Banega

Crorepati had emerged as the ‘most recalled ad’ at MSRTC owned

bus stands across Maharashtra

• “Koi insaan chota nahi hota” ad messaging - an effort by the

marketing team at Sony to increase the viewership base of people

residing in the semi urban and rural parts of India

• With Vritti’s innovative medium, it has become lot easier for

advertisers to reach the real India effectively through Vritti’s audio

and audio video networks

GOING RURAL WITH VRITTI I-MEDIA

Page 28: KBC - Business Model

Tie up with Movies

Page 29: KBC - Business Model

– The target audience for Kaun Banega Crorepati Season 5 was semi

urban and rural people, who lives in small places but have high dreams.

– The tagline of the show was “Koi Bhi Insaan Chota Nahin Hota” was

created keeping that fact in mind

– Basically, the main theme of the show was to concentrate on emotional

element

– Before starting the game, a movie clip was played about contestants

life highlighting the hardship of the person and why he wants to win

– On Thursday, the special episode of guests who fought hardship in their

life and came up as a champ showcased during the show.

– It was all to target emotional centric audience of India

Emotional Element

Page 30: KBC - Business Model

Lets PLAY KBC Season MMS

Page 31: KBC - Business Model

Lets PLAY KBC Season MMS

Q 1. Who said, “My youth is my biggest strength”

Page 32: KBC - Business Model

Lets PLAY KBC Season MMS

Q 1. Who said, “My youth is my biggest strength”

A. Lauren Crampsie B. Jeff Bezos

C. Randall Stephenson D. Vikram Pandit

Page 33: KBC - Business Model

Lets PLAY KBC Season MMS

Q 1. Who said, “My youth is my biggest strength”

B. Jeff Bezos

C. Randall Stephenson D. Vikram Pandit

A. LAUREN CRAMPSIE

Page 34: KBC - Business Model

Lets PLAY KBC Season MMS

Q 2. How many Indian companies featured in Fortune Global 500 list 2011

Page 35: KBC - Business Model

Lets PLAY KBC Season MMS

Q 2. How many Indian companies featured in Fortune Global 500 list 2011

A. 7 B. 5

C. 6 D. 4

Page 36: KBC - Business Model

Lets PLAY KBC Season MMS

Q 2. How many Indian companies featured in Fortune Global 500 list 2011

A. 7 B. 5

D. 4 C. 6

Page 37: KBC - Business Model

Lets PLAY KBC Season MMS

Q 3. “Subir Raha”, this name was associated with which company?

Page 38: KBC - Business Model

Lets PLAY KBC Season MMS

Q 3. “Subir Raha”, this name was associated with which company?

A. HPCL B. BPCL

C. ONGC D. RIL

Page 39: KBC - Business Model

Lets PLAY KBC Season MMS

Q 3. “Subir Raha”, this name was associated with which company?

A. HPCL B. BPCL

D. RIL C. ONGC

Page 40: KBC - Business Model

Lets PLAY KBC Season MMS

Q 4. Mr. Narayan Murthy did his masters from?

Page 41: KBC - Business Model

Lets PLAY KBC Season MMS

Q 4. Mr. Narayan Murthy did his masters from?

A. IIT Bombay B. IIT Kanpur

C. IIT Kharagpur D. IIT Delhi

Page 42: KBC - Business Model

Lets PLAY KBC Season MMS

Q 4. Mr. Narayan Murthy did his masters from?

A. IIT Bombay

C. IIT Kharagpur D. IIT Delhi

B. IIT KANPUR

Page 43: KBC - Business Model

Lets PLAY KBC Season MMS

Q 5. Only Indian to win “Academy Honorary Award”

Page 44: KBC - Business Model

Lets PLAY KBC Season MMS

Q 5. Only Indian to win “Academy Honorary Award”

A. Dadasaheb Phalke B. Mira Nair

C. D. Satyajit Ray Raj Kapoor

Page 45: KBC - Business Model

Lets PLAY KBC Season MMS

Q 5. Only Indian to win “Academy Honorary Award”

A. Dadasaheb Phalke B. Mira Nair

C. Raj Kapoor D. SATYAJIT RAY

Page 46: KBC - Business Model

धन्यवा�द!!

Thank you!!

` शु�क्रिय�!!