A case of Unjustified ROI

I finally could make it to the much hyped "The Dark Knight Rises" & found the movie enjoyable to watch. Though, I'd say I liked the previous part - "The Dark Knight" more. Nevertheless, a movie that was worth the hype. For more explanation on how the previous movie was better, one could read this lovely piece written by Mr. Ray.

This was the first time I bought tickets using group discount sites. Until now, bookmyshow.com had been my gateway for movie tickets. The tickets were made available at half the actual prices by the Indian subsidiary of Groupon, the group discount site that made a big-bang entry into the US capital markets last year. The Indian subsidiary is called Crazeal (Crazy + Deal). Surprisingly, I'd not heard of the name before I got the tickets delivered to my place.  Nevertheless, I got a good deal and could watch the movie at a good cinema hall at half the price.

However, when I thought about the company offering me discount, I began to wonder at the cost it had incurred to successfully organize the occasion. A rough estimate of the costs can be easily done:

1. I do not think PVR would have offered any discount to crezeal.com on the tickets since the movie was in its first week and would have run full even if crazeal.com was not involved. So, I think the organizing group had to pay PVR full ticket prices. Considering there were 600 seats all worth Rs. 350 (Actually there were 590 seats and around 25 were premium tickets. But for estimating, I think 600 shall do) and considering crazeal.com would have paid for half out of its own pocket, that would amount to Rs. 175 x 600 = Rs. 1,05,000 only for the tickets.
2. As an additional promotion measure, key-chains of batman were gifted to each member of the audience. Considering a cost (rough estimate of Rs 10 per key-chain), that would have amounted to Rs. 10 x 600 = Rs. 6000. 
3. A crew of 6 people (I could spot 6 people in their crazeal T-shirts) for ensuring the event goes smoothly would have also cost. Say Rs. 400 per hour. So, that amounts to Rs. 400 x 6 x 3 = Rs. 7200 (T-Shirt cost included).
4. The tickets were couriered for those who booked the tickets 3 days in advance. Say 30 % people preferred to get the tickets before (I believe the count would have been higher looking at the less rush at the counter to collect the tickets but a conservative estimate). So, around 180 couriers at around Rs. 15 per courier (Along with the flashy ticket cover), that amounts to Rs. 180 x 15 = Rs. 2700. 
5. I could see atleast 3 large sized posters of crazeal.com in the cinema hall. Say the total cost there for printing and accessories was Rs. 1000.


There are the visible costs. There would have been a lot of invisible costs in terms of internet marketing costs and other losses due to payment gateways, but lets say those have been included above. Still, the minimum cost which I estimate would have been incurred to organize the event would have been Rs. 1,21,900 say Rs. 1.22 Lakhs. As against this, what as the brand achieved:


What have the organizers achieved? Made me aware of the existence of such the Groupon, Inida subsidiary. I shall once or twice visit the site, see if I've anything interesting (I didn't find the site exciting today when I went through it. I would prefer snapdeal.com to find more about discounts). I seriously don't care where I get discounts from as long as I'm getting them & yes, they managed to make me write this. :P


So much was spent for a group of 600 visitors (A few of them were kids as well & most were in groups of 3. So, on an average around 200 unique families) to make aware of a site called crazeal.com. Isn't the cost too much. I shall be glad to know how the managers convinced the management to allow so much expenditure, I would be glad to see their justification on Returns On Investment? Is this the right strategy to develop a sustainable group discount brand in India?

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Thoughts on Urban Indian Youth

A lot is said about the demographic dividend in South East Asian countries, especially India. A lot of growth is projected based on this young population that exists and that is going to exist in the decade to come. However, when I see the youth, especially the urban, learned youth, I'm afraid India might lose out on this amazing opportunity and the demographic dividend might become a population problem.
I have come to a conclusion that the urban youth of today has become lazy, impatient, demanding and indifferent.

The urban youth of today does not want to do any work himself/herself. He (Shall keep it to "he" but it is equally applicable to "she") would like to direct someone else to do the work for him. He considers himself to know-it-all even before getting hands on experience. Today's youth wants more money, wants annual (if not half-yearly) double-digit increment, more facilities, favorable working conditions, etc; yet his productivity is not even equal to that given by the older generation. Agreed that the older generation was not so highly educated, but being educated doesn't mean only demanding things. He should also show that the quality of his work and his productivity deserves the amount of resources demanded.
One person who joined a well-known investment banking firm started talking about the expected increment & bonus in the 1st month into work (Mind you, he was a fresher) & started making plans of his next job if the increment was not up to his expectations. I mean, he still didn't know which department he would be in, the work he would be doing; yet all that mattered was the level of bonus / increment to be earned, irrespective of the level of output given.

I myself consider me lazy. When I consider to the number of tasks done by my parents regularly even at this age, I feel ashamed and humbled by my inferiority.

The youth of today, especially the urban youth has become highly demanding. While it is good to demand and know what you want (Customer is king and all), being unreasonable in demands is what it has come to. An uneducated house servant was given a lot many tasks and when he missed out on one insignificant task, he was made to listen to loud lecture without even  knowing the reason behind him not performing the task. Mind you that insignificant task was so simple to be done that the master could have done it in 2 mins without any major troubles. Yet, he didn't do it and gave a big 5 mins lecture to the servant instead.


The level of indifference in today's youth can be seen in any of the shopping malls of any urban/ suburban metro city. The way people communicate to the attendants in restaurants and shops says it all. Apathy is the word when I see a lot of people faking accents in the shopping malls in front of the shop attendants who have a tough time understanding them.


This is the behaviour I've been seeing lately in general in Mumbai among educated young people. I will not even comment on the time wasted by the youth in their places of work. That's a different story altogether. I also shall not say anything on cultural change, parental neglect, etc which I believe depends on youth's upbringing.


There are exceptions to all generalizations and thankfully there are quite a few people who are exceptions to the rule. Hope the youth of today gives up its laziness, indifference and starts to become more tolerant and starts working hard to make true the demographic dividend promise.