Direct To Home
Direct To Home
Direct To Home
cc
c
c
!
Topic
1. 2. 3. 4. Introduction ± Direct To Home. Current Players in Direct To Home market. Market
Share. Dish TV Segmentation Geographic Demographic Behavioral Psychographic
Targeting Strategies Are the current strategies successful? 5. Tata Sky
Segmentation Geographic Demographic Behavioral Psychographic Targeting
Strategies Are the current strategies successful? 6. Alternative Strategies 7. References 8. BCG
matrix ± Essel Group 9. Strategic Business Units 10. BCG matrix Plot 11. Product Portfolio 12.
References
"
3 4 7 8 8 8 9 10 11 12 13 13 15 16 16 16 17 18 19 19 20 20 22 23 23 25 36 37 38 39
#
c
c c
India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in
97 million (74%) of the homes (www.financialexpress.com/news/thatsentertainment-direct-to-
home/497502/).The c market in India comprises 11% of the total market with almost 15
million homes. The c industry growth lagged to 10.3% in 2008 from 16.7% a year earlier.
But industry players agree that the digitization drive is expanding by 35-40% annually. However,
industry estimates c to touch 35-40 million subscribers by 2012, and that¶s the number that
every c $% has set its sights on. By 2015, c will enjoy a market share of 40%, digital
cable 40% and analog cable will follow with only 20% market share. The c service market in
India has emerged as one of the most lucrative markets which have successfully resisted the
impacts of the current economic slowdown. The slowdown has certainly proved a boon for the
Indian c industry as people have now started to cut on their entertainment expenditure and
instead of viewing movies at theatres, they are preferring to stay at home with their television
sets.
The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009 and the
numbers are forecasted to surge further at around 30% through 2012.So apart from Tata Sky,
Dish TV, Airtel Digital and Reliance BIG, southern heavyweight Sun TV has entered the fray
with Direct, while Videocon has entered the market in June 2009. Still, as c is still a
relatively new category and most people were hesitant to experiment with it. While Indian
consumers were not completely satisfied with their cable services, they did not feel the need to
switch over to any other means of entertainment. It was therefore imperative for companies such
as Tata Sky, Dish TV, and Reliance BIG TV to educate the consumers about the advantages of
the service and in turn create an urge to invest in it.
&
c
'()*
+(,) c %()*
1. Dish TV - Zee group Dish TV is a venture by the Essel Group and was launched in 2004. Dish
TV is India¶s first private player in c industry with a presence in 19 states. It has a subscriber
base of 5.07 million (March2009).
(http://voicendata.ciol.com/content/service_provider/109080102.asp).It has a bouquet of over
240 channels to choose from. Recently Dish TV has launched an entry-level subscription at Rs.
99 per month with the largest offering of 110 channels
2. TATA Sky ± Joint venture between Tata Group and UK-based British Sky Tata Sky was
incorporated in 2004. TATA is one of India's largest and most respected business conglomerates
and the SKY $%, owned by the UK-based British Sky Broadcasting Group has over 20 years
of experience in satellite broadcasting. It launched its services pan-India in August 2006.Within
a short span of time it garnered a subscriber base of nearly 4 million (Aug 2009)
(www.tvnext.in/news/155/ARTICLE/2142/2009-08-06.html).It has over 168 channels to choose
from. Tata Sky has launched an entry-level subscription plan called µSuper Hit Pack¶ at Rs. 99
per month with a bouquet of 53 channels. Tata Sky recently launched Tata Sky Plus which uses
the personal video recording (PVR) technology that allows consumers to record live.
c
4. Sun Direct - Rs 1000-crore Indian c television network based in Chennai from Sun group.
Sun Direct is a c service in India headquartered in Chennai, Tamil. Sun Direct is an 80:20
joint venture between the Maran family and Astro Group of Malaysia. With 170+ TV channels
and 31 Radio channels, Sun Direct has a subscriber base of 3 million (April 2009)
(www.topnews.in/sun-direct-launches-hd-servicescrosses-3-million-activesubscriber-base-mark-
2149664). Sun Direct has a basic pack of Rs 75 monthly subscription which is the lowest price-
point compared to the other service providers.
5. Reliance BIG TV Limited ± a part of Reliance Anil Dhirubhai Ambani Group. Reliance
Communication a more recent entrant in the c space has the $% name µBig TV¶. It has
aggressively priced packages as low as Rs. 1490 with an offering of 64 channels and a three
month free subscription in addition to 20 video-on-demand movie channels. Within a short span
of time it garnered a subscriber base of nearly 1.8 million (Aug2009)
(www.livemint.com/2009/06/21231941/Big-TV-to-go-on-a-content-acqu.html). Big TV
currently offers 202 channels. BIG TV focuses on VAS and claims to have a next generation
user guide which is indexed.
-
c
6. Airtel c - Bharti Airtel Limited The recent and much talked about player in the market is
Bharti- Airtel. A teaser campaign µSee you at home¶ was followed up by a multi-starrer
campaign with celebrities like Saif Ali Khan and Kareena, Vidya Balan and Madhavan and
Indian cricketers Gautam Gambhir etc.It has a subscriber base of 1 million (June 2009)
(www.indiandth.com/2009/08/airtel-digital-tv-mops-up-one-million.html) and has a bouquet of
over 138 channels and world space satellite radio to choose from. Airtel Digital has a basic pack
of Rs 99 monthly for South and Rs 125 monthly for north.
7. Videocon D2H Videocon ± the big Indian consumer durable player launched itself in the c
market in June 2009 through its media arm Bharat Business Channel (BBCL). Right now it has
offered services in Punjab, J&K, Chandigarh, Haryana and Himachal Pradesh with packages as
low as 150 per month. Advantage over other players is that Videocon already makes analog set
top box hence they are likely to manufacture Set Top Box for their c service as well.
.
c
*
+(+ *
//////
Dish TV ± 32.56% Tata Sky ± 25.69 Sun Direct ± 19.27% Big TV ± 11.56% Airtel Digital TV ±
6.42% Others ± 4.5%
0
'
c1
*
1'
*
The two major companies vying for the top slot in c are Dish TV and Tata Sky. Essentials
Of Marketing Page 7
c
Dish TV is India¶s first direct to home entertainment service started in 2004. It is an Essel Group
initiative using MPEG-2 digital compression technology. Dish TV provides 240 digital channels
and 40 services.
*
GEOGRAPHIC SEGMENTATION:
Urban and Rural: Dish TV has equal distribution of subscribers in urban and rural markets. The
cable-dry rural markets had been their strength when they launched their services first in these
markets. In rural areas, Dish TV runs fleet of vans for demos, installation as well as selling
hardware and pre-paid vouchers. Region and States: It has come up with special offers for the
southern region where regional and sports channels are viewed the most. Like Ultimate sports
bonanza offer - Rs 1890 with 3 Months of South Silver subscription available in Tamil Nadu,
Kerala, Karnataka & Pondicherry only. Ultimate sports bonanza offer - Rs 2490 with 12 Months
of Silver subscription available in Andhra Pradesh only. Dish TV has structured a basic bouquet
of customized package of channels which are in demand in a particular state at a very affordable
price pack like North diamond pack and South diamond pack. Dishtv also added two more
Marathi channels namely Star Pravah and Star Majha on its platform for its Marathi speaking
customers. Besides these Dish TV has also launched Rest of India and South pack in scheme of
new packages, targeting north and south India consumers separately.
6
c
c
'
*
AGE and GENDER: As the market gets fragmented, niche channels will become more and more
desirable. The increased interest in unique content channels is in line with the international trend,
where once the market matures, consumer needs come into focus. Thus channels on Education,
Women, Gardening, a variety of Sports, Wellness and Religion, etc. make their appearance,
dishtv will be launching several of these niche channels to create a unique and exciting offering
for its viewers of every age and gender segment. Dish TV recently launched µChildren Films
Festival¶ with a bouquet of over 25 super-hit films across various categories priced at Rs. 25/-
per movie thus targeting the children segment. Besides this value added services like Games
Active, Bhakti active services etc carters to needs of customers from various age groups and
gender.
INCOME: Recognizing the vast differences in tastes and pocket sizes of different consumer
segments, content has been aggregated and classified into 4 different packages namely MAXI,
WELCOME, FREEDOM PLUS and FREEDOM packages .While the Maxi and Welcome packs
are price drivers and target high ARPU consumers, the value pack offerings in Freedom and
Freedom Plus packages are volume drivers that inspire new subscribers to come on board
through a low price point and basic channel offering. The strategy is to gradually upgrade the
low ARPU subscriber too, through tailor made add on packs on a-la-carte like movies, business,
etc. basis for specific entertainment needs. Keeping income levels of consumers in mind, Dishtv
apprises the consumer of its threetier pricing. It gives a choice to the consumer to select from a
three level flexi plan that bundle three, six or 12 months of subscription along with the initial
box.
5
Direct To Home FAMILY SIZE: Dish TV came out with the ³HAPPY HOME´ pack offering
Dish TV with 12 months for Rs 1990 aimed at families where the number of viewers is less and
watch only niche channels. Happy Home pack caters to entertainment needs of all the members
of the family in all age groups.
8
9
:
*
OCCASIONS: Dish TV comes out with new offers of channels or new buyer schemes at
relatively cheaper rates on occasions of festivals or major sports events. In the past Dish TV has
come with schemes like Pay for Welcome and Watch Maxi (October 2006), µDiwali Double
Dhamaka¶ (November 2007), the IPL Pack (April 2008), 'Summer Sports Bonanza' (June 2008),
Special Onam Offer for Kerela (August 2007), World cup offer (March 2007). BENEFITS: Dish
TV offers benefits to customers like: In a cricket match choosing the language of the
commentary, camera angles, know player statistics and watch match highlights at our will. Surf
through hundreds of channels using a mosaic screen showcasing all channels of a single genre.
4
Direct To Home Subscribers can order and watch Hollywood, Bollywood and Regional
blockbusters whenever they want, with no ad breaks and the subscriber can watch it multiple
times within 24 hours.
/
Using EPG, one gets an easy and friendly display of the program schedule on all channels and is
loaded with amazing features such as programme alert, parental lock, channel sorting, creating
lists of favorites and so on.
USER STATUS: Every product has its non users, ex-users, potential users, first time users and
regular users. In order to attract the non users and potential users Dishtv with a finger on the
consumer pulse has time and again brought innovative and exciting consumer promotion offers
into the market. Schemes like World Cup Free Offer, Free bhi Zyaada bhi, Ab Sab Sikandar, and
the landmark Set Top Box Free Offer, have not only added to the pace of acquisitions but
attracted specific consumer audiences like sports lovers and kids into its fold.
<'
'
*
Dish TV has successfully segmented the market through an expanded product range at
appropriate price points. By offering packages like cinema active, khel active, movie active,
music active is targeting people with specific lifestyles. Premiering new movies within weeks of
their releases is targeted at people who want to see latest movies at affordable prices. Dish TV
premiered movies like Delhi-6 and Aa Dekhen Zara within weeks of their release. Dish TV has
also targeted the youth segment with offers like ³Michael Jackson Live in Bucharest tour´ for
just Rs 25, Microsoft Xbox 360 Arcade. Essentials Of Marketing Page 11
c
*
³Dish Karo, Wish Karo Thoda aur wish karo Dish karo´ With this Dishtv made a very confident
entry into the psyche of every Indian viewer by asserting itself as the clear c champion.
Moreover it positioned itself as a far better and a smarter option to cable TV which apparently is
enjoying a relatively a larger viewership. The $% ambassador of Dish TV, Shah Rukh Khan
urges the viewers not to be complacent with the smudgy and faulty cable service. A simple line,
³Santusht with your cable TV? Thoda aur wish karo, dish kar´ inspired millions of Indians to
shed their inhibitions and move up in life. The entire nation wished with dishtv, through a
breakthrough campaign that not only amplified dishtv's image, but revamped the entire c
category as a whole. It questioned the attitude of our countrymen who are ever satisfied with sub
optimal services. It further encouraged them to switch from poor service of cable TV and start
wishing for much better quality entertainment with dishtv. But Dish TV has repositioned itself
with a new tag line which says ³Sabse Zyaada´ means: ´ Dishtv Offers Sabse Zyaada
Entertainment Sabse Zyaada - Number of Channels Sabse Zyaada ± Regional Channels Sabse
Zyaada Genre Sabse Zyaada - Value at Every Price Point´ The reason for this being that two
years back, when Dishtv launched the Wish karo campaign, they were competing with cable
operators and the poor quality of delivered content but now with rising competition among c
players, there was a need to reestablish their $% as the largest content provider. ³Sabse
Zyaada´ is a , that clearly brings together the differentiation of Maximum
Entertainment and Maximum no. of Channels and Maximum Value offered by Dishtv in a
powerful way.
#
c
*
At the start when Dish TV was making an entry into the Indian market, it targeted DD Direct+
customers. But now being an established player in c market reigning at no.1 slot, Dish TV
has revamped its targeting strategy. Dishtv has become a $% to reckon with. The name dishtv
is highly salient and almost generic to the category. Due to aggressive advertising and media
presence, today the $% enjoys top-of-mind recall and recognition by consumers across
markets. Dishtv has the king of entertainment- Shah Rukh Khan, as the ambassador to endorse
its $%. An iconic figure and a mass drawer, SRK signifies all that dishtv stands for -
entertainment personified tech savvy, family appeal and leadership status. This association has
resulted in an enhanced $% recall and $% image, which is also reflected in the incessantly
growing sales figures. Besides this, giving new connections at a reasonable price, Dish TV also
offers hosts of active services for their value-added channels ² which air things other than the
usual television programmes, such as, gaming, education, virtual pilgrimage, and so on. But
Dish, in addition to the others, has ICICI Active. It is a co-branded channel that tells you all
about ICICI Bank, the country¶s second-largest lender after State Bank of India, and its services,
including an EMI. From time to time Dish TV comes up with various promotional offers in form
of coupons or set top box free to encourage customers to make mental commitment to buy their
product which increases the $% purchase intention of the customer. Dish has set aggressive
targets for 2009-10. It aims to add another 2.5 million subscribers, to take the gross subscriber
base to over 7.5 million subscribers. The company is also looking at additional revenue through
carriage fees and advertising generated on the clean-feed of select foreign channels.
(http://www.business-standard.com/india/storypage.php?autono=351678)
*
Since its launch, Dish TV has leveraged the first mover advantage be it with ³dish-harchhat-par"
in April 2005 and Dish Freedom Package´ plan in January 2006. The aim was quite clear - the
slashed pricing will lure more customers to the Dish TV service, while increasing the penetration
and aimed at making c entertainment affordable to everybody. At the Start, Dish TV did not
worry about profitability. Their main concern was to allow the market to expand, acquire
customers, keep them locked over a longer period, and then make them pay more for various
services. The strategy was to mobilize the cable dark and rural subscribers. Essentials Of
Marketing Page 13
Direct To Home Now that Dish TV is the ruling player in the c market, the strategy has
changed because before Dish TV was competing with cable operators and trying to acquiring a
foothold in the c market but now with rising competition among c players, there was a
need to re-establish their $% as the largest content provider from other new players. Some
of the Dish TV¶s current strategies are: Dish TV has not only used its existing substantial
transponder capacity to its advantage, but also planned to augment it in the mid to long run. In a
market of 400 plus channels that is rapidly getting further crowded, coupled with dearth of
carriage capacity, this strategy will definitely pay off in the future. Teleport services for up
linking the channels. The company is also in the business of providing teleport services (up
linking and space segments) to the For acquiring advertisers: 1. SMS campaignbroadcasters of
various channels. to entire Dish TV sub-base. 2. Providing advertising options - Sponsorship
opportunities on Movie on Demand (6 break free movie channels), Branding opportunities on
Active Services, Promo options on Interactive channel 999, Interactive targeted contests. 3. EPG
Branding on Dish TV Information bar. 4. E-mailers to Dish TV sub-base. 5. Presence on the
Dish TV website. 6. Sponsored Product / 8% Catalogue 1. 2. 3. Customer Acquisition
strategy: Focused marketingon News Active. leading to creation of a 8c ± SRK
campaign. Largest content offering and digital viewing experience. Aligned dealer incentive
structure-Higher incentives for subscriber at higher packs. 4. Competitive pricing, A-la carte
offerings and ease of making payments. 5. Distribution and after sales service. Pan-India
presence through 800 distributors & 48,000 dealers across 6600 towns as of Jun 09. 6. Dish TV's
Customer retention strategy: 1. Promotions andattractive pricing strategy dealer incentives
offered on an ongoing basis to retain customers through innovative packages. 2. Packages to suit
every palate. 3. Niche Content. 4. Providing Value-Added Services (VAS) ± foray into e-
banking, ticketing, job search, matrimony services, sharing infrastructure with other service
providers. 5. Over 350 Dish Care Centers (DCCs) & service franchisees providing installation
and after sale-service as of Mar-09. 6. In-house call centre, operating 24*7 with capacity of up to
800 operators.
=
///
-
c
TATA SKY is a c Satellite Television provider in India, using MPEG-2 digital compression
technology. It is a joint venture between Tata Group that owns 80% and Star TV that owns a
20% stake. TATASKY was incorporated in 2004 but was launched only in August 2006.
*
GEOGRAPHIC SEGMENTATION:
Urban and Rural: Tata Sky Primarily targeted urban audience but later Tata Sky has seen
demands from smaller cities grow after the introduction of its electronic programming guide
(EPG) in hindi. Tata Sky has been focusing on tapping various avenues to further its network,
particularly in the rural markets. Tata Sky, with presence across 35,000 outlets in 5,000 towns
and cities, had earlier tied up with ITC e-choupal to. To expand its distribution network and
penetrate the rural market, the company has tied-up with ITC's e-Chaupal. Further Tata Sky had
introduced a Rs 99-a-month low-value pack for 53 channels to increase penetration in smaller
towns of the country. It also has B2B tie-ups with Infiniti Retail's Croma, Tata Indicom and
Pantaloon Retail in urban India. Tata Sky also offers a Multi Dwelling Unit (MDU) solution for
multi-storied buildings (common in urban areas), with the option of using a single mini dish for
the entire building. Region and States: Tata Sky has a pan-India presence. The company has
climbed mountains and crossed the oceans in its first few months it has installed services in
Ladakh, Leh, and Kargil; and also a first 'at sea' installation on an oil rig. It has come up with
separate packs for north like super hit or super value packs and south offering packs like south
jumbo or south value packs. Keeping in mind their diverse audiences, Tata Sky have several
regional channels covering Tamil, Malayalam, Telugu, Kannada, Oriya, Bengali, Punjabi,
Gujarati, Marathi and many more languages. SUN channels are also available on Tata Sky as a
part of the South Starter Pack, the South Value Pack and the South Jumbo Pack. Also making
cartoon network available in telgu.
.
c
c
'
*
AGE and GENDER: Tata Sky has offered host of services for its customers from every age and
gender. Like: Active Stories: For 2 - 7 year olds A TV based story book that children can read
and listen to at their own pace. Enjoy new stories from the likes of Panchatantra, Jataka Tales
and Indian mythology everyday on your TV, at the press of a button. Active Wiz kids: For 3 - 6
year olds Designed specifically for preschoolers, Active Wiz kids is a television based service
that aims to continue a child¶s learning process at home through a host of fun learning games,
rhymes and art & craft activities. Active Learning: For 7 - 12 year olds A quiz based education
service with 50 new questions daily on Math¶s, GK and Science. Active Games: Interactive
games for all ages on the TV. Active Darshan: Essentially focused on customers belonging to
older age groups. 24x7 darshan of the following temples: Shirdi Sai Baba, Mumbai¶s
SiddhiVinayak & ISKCON and Kashi Vishwanath. Besides this, active services like Active
Matrimony, Active Cooking, Active Sports etc carters to needs of customers from various age
groups and gender. INCOME: In its constant endeavor to offer its subscribers with maximum
choice and value, Tata Sky offers multiple channel packages giving subscribers the freedom of
genuine choice at affordable prices. Recognizing the vast differences in tastes and pocket sizes of
different consumer segments, content has been aggregated and classified into following packages
namely:
FAMILY SIZE: Tata Sky has something for everyone in a typical Indian family. Like Active
Wiz kids for the children, Active Darshan for grandparents, Showcase for the younger people,
Active Cooking for mother, Active Sports for father. Tata Sky has just started ³The Friends &
Family´ programme which is a reward based referral programme for eligible Tata Sky
subscribers where huge discounts are given to the refereed person and referring person.
Essentials Of Marketing Page 17
c
8
9
:
*
OCCASIONS: Tata Sky has offered new schemes at discounted rates on occasions of festivals or
major sports events. In the past Tata TV has come with schemes like watch the cricket world cup
final with Hrithik Roshan, round-the-clock service guarantee, match highlights available on-
demand after the match, commentary in regional languages (2007), sale of digicomp set top
boxes at discounted rates (diwali offer 2007), launch of Digital Video Recorder (diwali 2008).
BENEFITS: Tata Sky offers benefits to customers like: DVD Quality Picture & Sound: Enjoy
over 170 TV channels and services in DVD quality picture and CD quality sound. Customer
support: 24x7 call centre¶s & over 3000 engineers support in 11 languages. With Find out
what¶s playing on any channel up to 4 days in advance.uGuide you can: Setu Programme
details of all channels can be viewed in English and Hindi. u Get synopsis ofureminders for up
to 50 programmes you wish to watch. programmes.
Parental Control: Regulate what your children watch on your television by locking movies
based on the ratings provided by the channel or by locking the entire channel.
Search & Scan Banner: Find out what¶s playing on another channel without changing the
channel you are watching.
6
Direct To Home USER STATUS: In order to attract the non users and potential users Tata Sky
has time and again brought innovative and exciting consumer promotion offers into the market
like Tata Sky+, attractive active services, 99 a month value pack, 5 months of free viewing, Tata
Sky hardware for Rs 1,499, family and friends offer, 50% off on installation, 0% EMI schemes.
<'
'
*
Tata Sky has successfully segmented the market through an expanded product range at
appropriate price points. By offering active services and by launching Tata Sky+, Tata Sky is
targeting people with specific lifestyles. Tata Sky offered movies like Slumdog millionaire and
1920 in its showcase channel for people who want a private multiplex at home. Tata Sky targeted
the youth segment with by showing concerts like Beyonce ± Live at Wembley, AC/DC ± No
Bull concerts in their showcase channel. Active cooking targets women where they can get nine
new easy-to-cook recipes daily, from master chefs across the country along with handy kitchen
tips at the press of a button. Similarly Active Mall is targeted at people who would like to shop
for electronic appliances, household goods and even mobile ringtones and wallpapers at
attractive prices - from the comfort of their home at any time most convenient to them.
*
With an aim to connect to all television viewers and create interactivity amongst its audience,
and dispel the fear that technological fuss creates in the mind of the layman, Tata Sky redefined
the language of technology. To this end, Tata Sky adopted its current tagline "Isko laga daala,
toh life jingalala!" (If you use this, life will be great!). The brand's , is based on three
aspects ± better picture quality, the interactive offering and customer service which can be seen
in the advertisements like µelderly¶ Khan virtually condemning Tata Sky for being so addictive
(with a superior quality viewing experience) that his son has started neglecting him, a dual role
of a bickering Punjabi husband and wife where Khan tells us about the pedigree of Tata Sky and
inform potential customers about Sky-the leading British Broadcasting along with the benefits of
Tata Sky and how it makes our life ³Jingalala´ or the Tata Sky plus advertisement where Khan
playing a mischievous husband to Gul Panag tells us about the benefits of plus, Asins campaign
down south tells us about the 24x7 customer service.
5
Direct To Home Be it for a family or students Tata Sky has something for everybody. One can
view the schedule for the next 4 days for most of the channels, scroll down the list and put alerts
for the favorite programs, while watching one channel, we can get to know in a box at the bottom
what¶s going on in other channels, we can watch channels like Pogo, Jetix in regional languages
(Telugu, Tamil) and we can select any language out of English, Hindi, Telugu or Tamil. Tata
Sky with its wide bouquet of services and unique offering has indeed made life jingalala for
many Indian families.
*
As Aamir Khan, and rightly so, points it in the advertisement that Tata Sky has the trust of
$% TATA and the technology of Sky has made Tata Sky a $% to reckon with. The name
Tata is a well known $% which commands respect and trust among its Indian consumers
which gives an identity to the $% of Tata Sky and an edge in the market. Also, due to its
creative advertising, the $% enjoys top-of-mind recall and recognition by consumers across
markets. Tata Sky has Aamir Khan and Asin, as the ambassador to endorse its $%. An iconic
figure and a mass drawer, Aamir Khan makes a perfect fit with the Tata Sky $% values of
trust, high-quality entertainment and innovation. While Asin, campaigning down south, is a
young, energetic achiever and enjoys a high degree of credibility with consumers down south.
This association has resulted in an enhanced $% recall and $% image. Tata Sky also offers
hosts of active services for their value-added channels ² which air things other than the usual
television programmes, such as, gaming, education, flower delivery, virtual pilgrimage, and so
on. From time to time Tata Sky has come up with various promotional offers like µFamily and
Friends referral scheme¶ and new products like Tata Sky plus to encourage customers to make
mental commitment to buy their product which increases the $% purchase intention of the
customer. Tata Sky is targeting 8-million subscriber base by the year 2012.
(www.livemint.com/2008/10/14181532/Tata-Sky-launches-PVR-tech-ey.html)
*
Tata Sky¶s strategy is to capture the market by offering superior value. Consumer insight shows
that television is the only affordable family entertainment option available for middle-class
Indians today and they would appreciate any enhancement in their viewing experience.
Tata Sky gives people a new dimension in TV viewing, thanks to its 3Cs strategy: Choice: It
offers more than 170 channels, with DVD picture quality and CD sound quality.
#4
c
Control: Viewers can control the content; watch four news channels simultaneously, find out
what's playing on all channels without changing channels and, most important, parents can
regulate what their children watch. Convenience: The viewer gets 4-day listing of all
programmes on TV.
The X factor ² the excitement of interactive services. Tata Sky offers a bouquet of interactive
news, sports and games to subscribers all easily Using theaccessible with some simple
hardware. c platform and its large subscriber base for generating revenue through
advertising like coca cola used the Tata Sky platform to promote its new product Minute Maid
Pulpy Orange.
Tata Sky has adopted a 360-degree communication approach for its customers through
television, print, web, radio, outdoor media, call centre¶s and direct mailers, both in urban and
rural areas. It has also made it a point to demonstrate the service at high-traffic sites like airports,
malls and Only TV service in this country which not only providesexhibitions. entertainment
to kids through toon channels but also educates them through its interactive channels.
It undertook the most interactive step by walking into schools directly and convincing teachers
that children could learn multiplications and divisions directly from TV.
#
ARE THE CURRENT STRATEGIES SUCCESSFUL? Tata Sky though launching late as
compared to Dish TV has gained more than 4million subscribers which indicates it¶s growing at
a healthy rate. Tata Sky¶s growth has been helped by strategies Multi Dwelling Unit (MDU)
solution for multi-storied buildings, with thelike: option of using a single mini dish for the
entire building has worked in favour Tata Sky added the Sun TV bouquet of channels in Tamil
Nadu whichof Tata Sky. It offers ³Active´ servicesresulted in a good surge in its
subscriptions. pertaining to religion, sports and education. Its Bangalore R&D centre produces
original content in science, general knowledge and mathematics, which Tata Sky plus is getting
Tata Sky newis becoming popular in schools. customers. With Tata Sky plus the viewers can
pause+ record+ rewind LIVE TV. Tata Sky exchange offer for Tata Sky Plus at a discounted
rate has gone down Schemes like 50% off on installation; friendssuccessfully with its
customers. and family referral programs have been adding to its customer¶s numbers.
##
Promotion The promotional strategies suggested are: 1. Packages for Special Events like the
cricket World Cup. 2. Targeting Tata employees could be a useful way pr promoting the product.
3. Give the option of installments and other promotional schemes to the new users. 4. Tie up with
real estate developers to target the new constructions The number of old buildings being
demolished and being reconstructed are also on the rise. This could be a major target for
promotions. 5. Door to door marketing should be used to heighten the awareness levels as well.
6. Local Games Sponsorships can also be used to increase the awareness levels. 7. Another way
could be using the prominent part of the Building for placing Hoardings of Tata Sky Ads.
Finding the strategic building in the locality Consideration can be in form of cash payment to
the Housing society Providing free connections to Households in these buildings 8. Another
new avenue that can be explored is the railway stations: Essentials Of Marketing Page 23
Use of Internet- Applications which involve sharing of videos on how one consumes TV,
benefits of c over cable TV, etc. across social networking sites like Orkut, ibibo, etc.
#=
c
:
Essel Group ( of the US $ 1.7 billion Zee Group fame) has a vast range of national and global
business interests, encompassing media programming, broadcasting & distribution,
communication, packaging, online lottery, entertainment parks, telecom and trading, movie
production, multiplexes, education, animation, publishing and satellite with particularly close
synergies with ventures active in the areas of content, distribution/reach and
infrastructure/logistics such as Zee Telefilms, Siticable, Zee Interactive Learning Systems,
Agrani, E-city, Essel Propack, Esselworld, Cyquator, Dish TV, Playwin, Water Kingdom, Intrex
India, Zee Turner, Padmalaya Telefilms, ETC Networks & others. Essel Group is a transnational
enterprise with Indian soul and global spirit and is India¶s largest vertically integrated group. ----
---------------------THE ESSEL PHILOSOPHY-------------------The Essel Group strives to offer
the best to the communities that it serves ² shareholders, customers, employees and vendors.
µFaith in innovative and organised growth¶ is the dictum that drives all business decisions. A
multicultural organization with a strong customer focus, Essel Group companies reach out every
day to millions of consumers across the globe.
c
A
'
'
9
1"
With nearly 17 per cent of the world's population, a fast-growing economy, and a middle class
that has tripled in size in the last twenty years to some 300 million, the Indian market represents
a tremendous opportunity for ESSEL GROUP and reinforces our strong market position in the
Asia Pacific region and globally.
#-
c
c
ZEEL (Zee Entertainment Enterprise Ltd) SBU FORMATION REASON: TV have been
identified as the strongest medium to reach the early 20s target group, which is the most active
media consumer & highest purchasing power. India's TV advertising pie is continually growing,
with the maximum ad revenues being absorbed by Hindi soaps and movies. FICCI-PwC's 2007
, on the media & entertainment industry states that the nation's total advertising pie today
stands at about $4 billion. With an economy growing at 9%, advertising expenditures are bound
to soar and analysts estimate that just this year advertising revenues are all set to go past the $4.5
billion mark. All over the world the total advertising and marketing money that gets circulated is
about 3% of the GDP, in India the figure stands at a measly 0.7%. Digital democracy waiting to
unfold across the nation is another factor driving players to jump into the television well. Once
implemented, if a channel is delivering good content, people for sure would pay to watch it ± and
media hubs would also save hugely on distribution. Add the 5-6 new players to the cacophony
and the audience fragmentation is slated to rise to unprecedented levels. Going forward, the
competitive fireworks will only intensify, with content, distribution and marketing becoming the
reigning kings and queens of this epic battle for supremacy in the consumer mind space. First
mover advantage and strong financial muscle of worth Rs. 110 bn gives advantage. But the devil
is in the detail. Entertainment channels require big budgets, on an average Rs 1 to 1.5 crores on a
daily basis. Most of the new players have deep pockets, but many may not last the distance. With
Sun TV Network, buying 49% stake in NDTV's Red FM radio network; Walt Disney purchasing
UTV's children's entertainment channel Hungama et al, the consolidation has already started. As
pressure on advertising rates and the analog distribution systems increases, smaller players will
be further get edged out. Advertising revenue is the major source of income for broadcasting
companies, and in the case of ZEEL, revenues are less heavily skewed towards the Real estate
and Auto sectors. The major contribution of advertising revenue is done through FMCG (50%),
Telecom (20%) and others (30%).ZEEL is the 3rd largest television network in India and has a
complete entertainment portfolio The company has 16domestic channels in its bouquet,
consisting of Zee TV with a market share of 20% at No. 3 position (recently replaced by
COLORS which is at No. 2 Position), Zee Cinema with a market share of 39% at No.3 position,
English Entertainment (3 channels) with a market share of 21%, Music (3 Channels) with a
market share of 24% and lifestyle with a market share of 24%.. 1HFY09 performance: 1HFY09,
company has posted a growth of 41% y-o-y to Rs 1,113 crore. The growth was mainly driven
from advertising of 33% to ~Rs 565 crore, subscription of 33% to Rs 439 crore and the
remaining contribution from other operating income. Essentials Of Marketing Page 26
c
#B
c
'
7+,*22333" % 7,7 " 2 ,3#=4.46$",
' ,) ',"
(93BD#B#"B
9 6 %
9%)
.D-4B"5
D#44"#
=B4"=
#6
"c'
8<1c7:
c
ZEE CINEMA- The channel boasts of one of the largest libraries having an eclectic mix of
programmes, blockbusters and hits. Since its launch, Zee Cinema has been a leader in its channel
genre with over 30% market share. In the year gone by, the properties that have captivated
audiences are Dopahar Zee Cinema Par and Shanivaar Ki Raat Sitaron Ke Saath. Innovative
offerings such as Rok Sako Toh Rok Lo and Double Mazaa, which show back to back movies
have been immensely appreciated and viewed brands for over five years. Zee Cinema¶s sprucing
up premiers & specials with innovative break content have been widely appreciated. ---------------
---------------------------------------------------------------------------------------------
Zee Premier has been specifically designed to address viewers of of a specific demographic.
Now movie buffs, addicts and cinema lovers can feast of our library, which boasts of over a
collection of exclusive entertainment and art value. Zee Premier range includes blockbusters
from modern Indian cinema, an industry which has been in a continuous state of evolution with
every passing year. The collection contains the world premiers of many award winning movies
such as Taare Zameen Par, Dhool, Dhammal, Jodha Akbar and Race ---------------------------------
---------------------------------------------------------------------------
Zee Classic, boasts of an outstanding library of Indian cinematic classics. It¶s the most popular
after Zee Cinema. Zee Classic was created to air only classics and blockbusters of the yester
years, to revive nostalgic moments and memories --------------------------------------------------------
----------------------------------------------------
#5
c
'
7
Ten Sports and Zee Sports combine have given the viewers a lot of action in the past years and
have become a force to reckon with in the sports entertainment business. Popular events like
WWE, UEFA Champions and League Football have made inroads into the Indian market. Tennis
fans enjoy the grand slams with a series of ATP 500 and a multitude of other events. For the
indoor sports fan, the channel has showcased the World Poker Tour and Darting events. Cricket
being nothing less than a religion in India, Ten Sports has acquired the rights to five of the ten
cricket boards, giving it over 100 days of cricket a year. This is the maximum number of days of
cricket across sports channels. The rights to these 5 boards; Sri Lanka, Pakistan, South Africa,
West Indies and Zimbabwe are with Ten Sports for the next 4 years. ----------------------------------
-------------------------------------------------------------------------CHANNELS-ENGLISH
CONTENT (BRINGING THE BEST OF INTERNATIONAL CONTENT TO INDIAN
AUDIENCES)
The English GEC channel was launched in 2000. Being the most widely viewed English Channel
in India, it has garnered a large market share among the English speaking and viewing audience.
Zee has focused on sourcing the best international content which appeals to the young and urban
Indian palate. Some of the most popular shows on this channel are The Best of F.R.I.E.N.D.S.,
Gossip Girl, Sex and the City, The Tonight Show, The Big Bang Theory and many alike. The
only Indian show to capture all the existing & worthwhile party actions in after hours.
Broadcasting the most happening international events like the World Music Awards, Emmy¶s
and leading fashion shows is one of the channels strategic prerogatives. In recent times, Zee Café
acquired exclusive live telecast rights to the most prestigious beauty pageant ± Miss World 2008.
------------------------------------------------------------------------------------------------------------
Zee Trendz is the leading fashion and lifestyle property in India. Following Indian as well as
global trends, this channel brings to you the latest in style, fashion, music and people. Some of
the remarkably successful shows that were acquired are: Ultimate Gadgets is a program on
audio, video, interactive and communication, bringing the audience the latest on trends and
products, especially designed for the viewers. Music Retro is an Essentials Of Marketing Page 30
Direct To Home introspective retrospect of various styles of musics- from pock, rock and hip-
hop to R&B. For music lovers, Music Retro is flowing with reviews and video clips. Power
Players profiles the most influential men and women from fields where power, talent and moral
example have touched and transformed lives, around the world. ---------------------------------------
---------------------------------------------------------------------
Zee Studio has brought quality cinema to the discerning Indian audience. Catering primarily to
movie buffs among the of programmes includes a potent mix of Hollywood¶s hottest block
busters, animation flicks, golden classics, musicals, comedies and the finest of world cinema.
Zee studio acquires the exclusive telecast rights to the prestigious awards ceremonies such as,
The Screen Actors Guild Awards µ09 and Live from the Red Carpet Academy Awards µ09.
CHANNELS- MUSIC , LIFESTYLE & ENTERTAINMENT.
ETC has etched its unique identity as India¶s only Bollywood trade channel. Some of the prime
time shows on the channel are: ETC Bollywood Business: Taran Adarsh interviews directors,
producers, corporate heads, actors and everyday celebrities Bada Parda: Reviews the hottest
films of the fortnight Star Giraftar: Showcases stars and their upcoming films, an indepth look at
the films and their characters ETC Xtras: Catch all the superhits on this program ETC Nautanki:
Bollywood¶s biggest Suresh Menon gag show ETC Karaoke: A unique program with lyrics
displayed on screen. -------------------------------------------------------------------------------------------
-----------------
Year 2009 saw an exciting development in the field of music for Zee. Now called Zing, the
channel presents movies, music and madness to an audience of fifteen years and above. Some of
the channel¶s key properties are Eye Candy, Face to Face, Chillax Morning, Flix @ 2, After 8
and Bollywood Chakkar. --------------------------------------------------------------------------------------
---------------------Essentials Of Marketing Page 31
c
Zee Jagran forays into the spiritual and religious entertainment genre, aimed at awakening people
to realize the spiritual aspects in their life and hence enriching lives. This lifestyle channel
attempts to provide holistic entertainment to the audience through alternate lifestyle programs,
interactive astro solutions, spiritual content and mythological and socially relevant movies and
serials. A 24 hour socio-spiritual offering the channel offers a content creation standard that puts
it above any other channel in this genre. --------------------------------------------------------------------
----------------------------------------
Another offering by the company in the entertainment genre Zee Smile, brings to its viewers
original content and some which is shown on Zee TV.The channel is accessible to viewers on
free-to-air basics this in turn provides it a vast viewership. DNA ±(DAILY NEWS ANALYSIS )
(DILIGENT MEDIA CORPORATION) -Joint Venture b/w Essel group & Bhaskar group. -
DNA readership growing at 22.5% in market where market leader is growing 8% over IRS
(Indian Readership Survey)
'
PROPACK: SBU FORMATION REASON:
At present, India¶s packaging industry across all materials is estimated at Rs 20,000 crore. Indian
packaging industry is highly fragmented, with unorganized and small scale industry constituting
60-70% of the total size. About 32% is plastic packaging, while another 32% is paper packaging.
Rest is metal and glass. The compounded annual growth rate is roughly 22%.
Chandrasekhar said though it is difficult to put a figure to the size of the industry, it is close to
$14 billion and growing at around 15% annually.
REFERENCE-http://www.dnaindia.com/money/report_packagers-feel-cost-
pricingheat_1195177 As FMCG products get more and more branded and aspire to become a
brand from a mere commodity, packaging will connote more than just a secure receptacle and
convenient container.
&#
c
It will convey brand character, personality and contain a wealth of information about the brand,
its size, contents and ingredients. It will also help differentiate a product from the others in the
same category.
Slow and steady movement to greater product awareness, branding and better retailing formats
follows an evolution from µloose¶ product sales to branded & packaged products with greater
information to consumers about choices, ingredients and precautions. Customers today demand
variety and change sometimes desiring uniformity, sometimes dazzling variety, utilitarian,
convenience, or even dual usage etc. All this drives changes in packaging, materials, colours,
decorative effects, formats, shapes and sizes STRATEGY: Core competencies of superior
technology, knowledge of product and marketing intimacy with global client base.
(
Inorganic Growth Route Essel Propack owes its global recognition and current market share in
the packaging industry to its policy of focusing on acquisitions and JVs. Pursuing its strategy of
inorganic growth in the EU, the company has acquired subsidiaries such as Arista Tubes and
Telcon Packaging in the UK, and Lami tube Technologies (Cyprus) Limited in Cyprus. It also
set up its subsidiary, Essel Deutschland, in Germany. These acquisitions and the JV have helped
it to attain brand recognition and attract new clientele. In 2004, Essel Propack acquired a 100 per
cent stake in Arista Tubes, UK, for EUR 8 million In 2005, Essel Propack also acquired Telcon
Packaging Limited in the UK (now renamed µEssel Propack U.K. Limited¶) In 2006 they
company had 85% stake in two medical devices companies Tacpro Inc (USA) and Avalon
(Singapore).
'<*
DISH TV: SBU FORMATION REASON:
India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in
97 million (74%) of the homes (www.financialexpress.com/news/thats-entertainment-direct-
tohome/497502/).The DTH market in India comprises 11% of the total market with almost 15
million homes. The DTH industry growth lagged to 10.3% in 2008 from 16.7% a year earlier.
But industry players agree that the digitization drive is expanding by 35-40% annually. However,
industry estimates DTH to touch 35-40 million subscribers by 2012, and that¶s the number that
every DTH brand has set its sights on. By 2015, DTH will enjoy a market share of 40%, digital
cable 40% and analog cable will follow with only 20% market share. The DTH service market in
&&
c
India has emerged as one of the most lucrative markets which have successfully resisted the
impacts of the current economic slowdown. The slowdown has certainly proved a boon for the
Indian DTH industry as people have now started to cut on their entertainment expenditure and
instead of viewing movies at theatres, they are preferring to stay at home with their television
sets.
The industry is anticipated to add nearly 5 lakh subscribers per month during 2009 and the
numbers are forecasted to surge further at around 30% through 2012.So apart from Tata Sky,
Dish TV, Airtel Digital and Reliance BIG, southern heavyweight Sun TV has entered the fray
with Direct, while Videocon has entered the market in June 2009. Dish TV Financial Highlights
(2008) 4,127.44 3.00
9
:
( $($ $
"
<
The DMCL team focuses on capitalizing the continuously evolving digital entertainment
landscape by using its technology and content-based research expertise to guide and collaborate
with content creators and telecom operators. DMCL is equipped with cutting edge technologies
for archiving content in digital format.
&=
c
FUN MULTIPLEXSBU FORMATION REASON: The entertainment industry in India is
growing at a fair clip amongst which multiplex segment is touted to be one of the fastest growing
segments. Though these multiplexes have mushroomed in the metro cities such as Delhi and
Mumbai, non-metros are still to catch up with the similar momentum. The concept of
multiplexes has matured to the next level wherein, it is positioned as a complete entertainment
centre for the families with other recreational facilities along with the multiplex. Estimates says
in 2013 total number of TV owing household in India is estimated to 149 mn, up from 123 mn in
2008. The film industry has experience a growth rate of 9.1% over last 5 years and reaching size
of 169 bn by 2013. India sells 3.7 bn movie tickets compare to 1.4 bn of US. REFERENCE ±
INDIA TODAY, AUG 2009. In a huge market like India, there is just one screen per one million
people and this includes the single screens. If only multiplexes are considered, the figure is even
less. So the Indian players don't seem to mind the prospect of increased competition. There are
only 11 multiplexes for every million people in the country as compared to 117 in USA ad 77 in
France. Major cities of the State have a high demand for malls due to the rising employment,
increasing disposable income, outing spots of the families on weekends etc. There are just 747
multiplex screens in India; they contribute around 40-45 per cent to the revenue basket of any
movie. REVENUE SOURCE: Improving average ticket price, strength in food and beverages
sales and continuing strength in garnering advertising revenues are key positives for FUN
Multiplex.
Recreation Zone:
Games Zone including bowling alley, simulators, kiddie¶s rides, battle tanks, carnival games etc.
Multi-cuisine or specialty restaurants Outlets of national/ international food chains Shopping
arcade having various outlets of different brands Handicraft mela exhibiting the art and crafts of
different states of the country Other Facilities: ATM centers of different bank Parking space
Administrative room
&-
c
INFRASTRUCTURE_____________________________________________________ Essel
Infraprojects Limited ± With Esselworld and Water Kingdom, among the largest amusement
theme parks, EIL is also engaged in the development of roads, power plants, Sports complexes
and Special Economic Zones. E-City Real Estate Pvt. Ltd ± The Company behind the successful
lifestyle brand Fun Republic ± plans to develop and operate 20 million sq ft of retail real estate
by 2011. E-City Property Management & Services (India) Pvt Ltd (EPMS)± An E-City Venture
company that provides the most comprehensive and reliable mall/property management and
retail services in India, including overall operations, marketing, consultancy, occupant
management, retail leasing services and advisory services.
&.
Direct To Home BCG: SBU MARKET COMPETITR SHARE MARKET SHARE 32% TATA
SKY24% ITC-30% RELATIVE MARKET SHARE 1.3% 0.7% MARKET GROWTH RATE
6.5% 25 % QUADRANT IN WHICH SBU LIES CASH COW QUESTION MARK
QUESTION MARK DOGS STAR
c 9
,# E
.E
7 E
4"-=E
BE
6"5E::
!C
=#" #E
4". E " #E
4E #"-E
8( % 4E
FF
Build
1
'+'3
Hold
c
Divest
&B
Direct To Home PRODUCT PORT-FOLIO Essel Group is one of India¶s prominent business
houses with a diverse portfolio of companies in media, entertainment, technology-enabled
services, education, infrastructure development and packaging. The Group¶s publicly listed
companies include Zee Entertainment Enterprises Ltd, Zee News Ltd, Wire & Wireless India
Ltd, Dish TV India Ltd, Essel Propack Ltd and ETC Networks Ltd. In India, Zee TV is the first
satellite channel, Siticable is the first multi-system operator, Esselworld is the first amusement
park, Water Kingdom is the first theme park and Playwin is the first online gaming company.
Essel Propack, the world¶s No. 1 in packaging, was also a revolutionary concept in India. It has
metamorphosed into a conglomerate that is a symbol of the ingenuity and power of Indian
entrepreneurship, with worldwide operations. As per the BCG Matrix two of the SBU¶s (ZEE &
ESSEL PROPACK) lies in the question mark quadrant and the SBU¶s (Dish TV & Fun
Multiplex) lies in the cash cow and dog¶s quadrant respectively. ZEEL lies in the star quadrant.
Dish TV is the market leader in India. The product portfolio is healthy with ESSEL group
diversifying and attracting a large amount of investments in its various ventures and at the same
time offering a lucrative return, creating share holder wealth.
&6
c
References: http://www.thehindubusinessline.com/2008/08/09/stories/2008080951130500.htm
http://bx.businessweek.com/packaging-industry/turnover-of-packaging-industryin-
india/14677494993074838105-3337e6e8d1c96270e99ad370b1d24aff/
http://docs.google.com/gview?a=v&q=cache%3AW6r_xybddMJ%3Adspace.mdi.ac.in%2Fdspac
e%2Fbitstream%2F123456789%2F467%2F1
%2FInternationalisation%2Bof%2BEssel%2BPropack%2BLtd.pdf+market+share
+of+propack+in+packaging+industry&hl=en&gl=in&pli=1
http://www.onlineequitycalls.com/2009/02/indian-entertainment-industry-worth1168-billion/
http://www.itcportal.com/newsroom/press_31jan06b.htm www.scribd.com/doc/18454053/DTH-
Industry-in-India (www.financialexpress.com/news/thats-entertainment-direct-to-home/497502/)
(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)
http://www.ficci.com/news/viewnews1.asp?news_id=1766
http://media247.co.uk/bizasia/newsarchive/2008/04/star_plus_widen.php
http://media247.co.uk/bizasia/newsarchive/2008/07/star_plus_comma.php
www.researchandmarkets.com/reports/836895/multiplex_india.pdf
www.businessofcinema.com/news.php?newsid=12488 www.pvrcinemas.com/investor
&5