Direct To Home

ESSENTIALS OF MARKETING
DTH (Direct to Home)
Essentials Of Marketing
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Direct To Home
INDEX
Topic
1. 2. 3. 4. • Introduction – Direct To Home. Current Players in Direct To Home m
arket. Market Share. Dish TV Segmentation Geographic Demographic Behavioral Psyc
hographic • Positioning • Targeting • Strategies Are the current strategies succ
essful? 5. Tata Sky • Segmentation Geographic Demographic Behavioral Psychograph
ic • Positioning • Targeting • Strategies Are the current strategies successful?
6. Alternative Strategies 7. References 8. BCG matrix – Essel Group 9. Strategi
c Business Units 10. BCG matrix Plot 11. Product Portfolio 12. References
Page No.
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
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Direct To Home
Direct to Home (DTH)
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/that
sentertainment-direct-to-home/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 di
gitization drive is expanding by 35-40% annually. However, industry estimates DT
H to touch 35-40 million subscribers by 2012, and that’s the number that every D
TH brand has set its sights on. By 2015, DTH will enjoy a market share of 40%, d
igital cable 40% and analog cable will follow with only 20% market share. The DT
H 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 sl
owdown has certainly proved a boon for the Indian DTH industry as people have no
w started to cut on their entertainment expenditure and instead of viewing movie
s 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 20
09 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 heavywe
ight Sun TV has entered the fray with Direct, while Videocon has entered the mar
ket in June 2009. Still, as DTH is still a relatively new category and most peop
le were hesitant to experiment with it. While Indian consumers were not complete
ly satisfied with their cable services, they did not feel the need to switch ove
r 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 t
he advantages of the service and in turn create an urge to invest in it.
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Direct To Home
Current Players:
The current players in DTH industry are:
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 DTH industry with a presence
in 19 states. It has a subscriber base of 5.07 million (March2009). (http://voi
cendata.ciol.com/content/service_provider/109080102.asp).It has a bouquet of ove
r 240 channels to choose from. Recently Dish TV has launched an entry-level subs
cription 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 bus
iness conglomerates and the SKY brand, owned by the UK-based British Sky Broadca
sting Group has over 20 years of experience in satellite broadcasting. It launch
ed 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/ARTICL
E/2142/2009-08-06.html).It has over 168 channels to choose from. Tata Sky has la
unched an entry-level subscription plan called ‘Super Hit Pack’ at Rs. 99 per mo
nth with a bouquet of 53 channels. Tata Sky recently launched Tata Sky Plus whic
h uses the personal video recording (PVR) technology that allows consumers to re
cord live.
3. DD-Direct + -Owned by parent company Doordarshan DD Direct Plus was launched
in December 2004 by Doordarshan. It was India’s first DTH service offering about
59 TV channels and 21 radio stations. DD DTH is a free service and has acquired
a subscriber base of 60–70 lakh connections (July 2009). (www.dnaindia.com/mone
y/report_prasar-bharati-dth-moving-to-paymode_1277779) Essentials Of Marketing P
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4. Sun Direct - Rs 1000-crore Indian DTH television network based in Chennai fro
m Sun group. Sun Direct is a DTH service in India headquartered in Chennai, Tami
l. 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 subs
criber base of 3 million (April 2009) (www.topnews.in/sun-direct-launches-hd-ser
vicescrosses-3-million-activesubscriber-base-mark-2149664). Sun Direct has a bas
ic pack of Rs 75 monthly subscription which is the lowest price-point compared t
o the other service providers.
5. Reliance BIG TV Limited – a part of Reliance Anil Dhirubhai Ambani Group. Rel
iance Communication a more recent entrant in the DTH space has the brand name ‘B
ig 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-de
mand movie channels. Within a short span of time it garnered a subscriber base o
f nearly 1.8 million (Aug2009) (www.livemint.com/2009/06/21231941/Big-TV-to-go-o
n-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.
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Direct To Home
6. Airtel DTH - Bharti Airtel Limited The recent and much talked about player in
the market is Bharti- Airtel. A teaser campaign ‘See 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 subsc
riber 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 spac
e satellite radio to choose from. Airtel Digital has a basic pack of Rs 99 month
ly for South and Rs 125 monthly for north.
7. Videocon D2H Videocon – the big Indian consumer durable player launched itsel
f in the DTH 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 pl
ayers is that Videocon already makes analog set top box hence they are likely to
manufacture Set Top Box for their DTH service as well.
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Direct To Home
MARKET SHARE:
The current Market Share is:
• • • • • •
Dish TV – 32.56% Tata Sky – 25.69 Sun Direct – 19.27% Big TV – 11.56% Airtel Dig
ital TV – 6.42% Others – 4.5%
PROJECTED GROWTH RATE:
(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)
TOP TWO COMPANIES:
The two major companies vying for the top slot in DTH are Dish TV and Tata Sky.
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Direct To Home
Dish TV is India’s first direct to home entertainment service started in 2004. I
t is an Essel Group initiative using MPEG-2 digital compression technology. Dish
TV provides 240 digital channels and 40 services.
SEGMENTATION:
GEOGRAPHIC SEGMENTATION:
Urban and Rural: Dish TV has equal distribution of subscribers in urban and rura
l markets. The cable-dry rural markets had been their strength when they launche
d their services first in these markets. In rural areas, Dish TV runs fleet of v
ans for demos, installation as well as selling hardware and pre-paid vouchers. R
egion and States: It has come up with special offers for the southern region whe
re regional and sports channels are viewed the most. Like Ultimate sports bonanz
a offer - Rs 1890 with 3 Months of South Silver subscription available in Tamil
Nadu, Kerala, Karnataka & Pondicherry only. Ultimate sports bonanza offer - Rs 2
490 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 i
n demand in a particular state at a very affordable price pack like North diamon
d pack and South diamond pack. Dishtv also added two more Marathi channels namel
y 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.
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DEMOGRAPHIC SGMENTATION:
AGE and GENDER: As the market gets fragmented, niche channels will become more a
nd 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 seve
ral of these niche channels to create a unique and exciting offering for its vie
wers of every age and gender segment. Dish TV recently launched ‘Children Films
Festival’ with a bouquet of over 25 super-hit films across various categories pr
iced at Rs. 25/- per movie thus targeting the children segment. Besides this val
ue 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 p
ack offerings in Freedom and Freedom Plus packages are volume drivers that inspi
re 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, thro
ugh 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, Disht
v apprises the consumer of its threetier pricing. It gives a choice to the consu
mer to select from a three level flexi plan that bundle three, six or 12 months
of subscription along with the initial box.
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Direct To Home FAMILY SIZE: Dish TV came out with the “HAPPY HOME” pack offering
Dish TV with 12 months for Rs 1990 aimed at families where the number of viewer
s 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.
BEHAVIOURIAL SEGMENTATION:
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 t
he past Dish TV has come with schemes like Pay for Welcome and Watch Maxi (Octob
er 2006), ‘Diwali Double Dhamaka’ (November 2007), the IPL Pack (April 2008), S
ummer Sports Bonanza (June 2008), Special Onam Offer for Kerela (August 2007),
World cup offer (March 2007). BENEFITS: Dish TV offers benefits to customers lik
e: • In a cricket match choosing the language of the commentary, camera angles,
know player statistics and watch match highlights at our will. • Surf through hu
ndreds of channels using a mosaic screen showcasing all channels of a single gen
re.
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Direct To Home • Subscribers can order and watch Hollywood, Bollywood and Region
al blockbusters whenever they want, with no ad breaks and the subscriber can wat
ch 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 l
ock, channel sorting, creating lists of favorites and so on.
•
Unique feature where subscribers can choose from multiple languages on select ch
annels.
USER STATUS: Every product has its non users, ex-users, potential users, first t
ime users and regular users. In order to attract the non users and potential use
rs Dishtv with a finger on the consumer pulse has time and again brought innovat
ive and exciting consumer promotion offers into the market. Schemes like World C
up Free Offer, Free bhi Zyaada bhi, Ab Sab Sikandar, and the landmark Set Top Bo
x Free Offer, have not only added to the pace of acquisitions but attracted spec
ific consumer audiences like sports lovers and kids into its fold.
PSYCHOGRAPHIC SEGMENTATION:
Dish TV has successfully segmented the market through an expanded product range
at appropriate price points. By offering packages like cinema active, khel activ
e, movie active, music active is targeting people with specific lifestyles. Prem
iering 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 “Michael Jackson Live in Bucharest tour” for jus
t Rs 25, Microsoft Xbox 360 Arcade. Essentials Of Marketing Page 11
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POSITIONING:
“Dish Karo, Wish Karo Thoda aur wish karo Dish karo” With this Dishtv made a ver
y confident entry into the psyche of every Indian viewer by asserting itself as
the clear DTH champion. Moreover it positioned itself as a far better and a smar
ter option to cable TV which apparently is enjoying a relatively a larger viewer
ship. The brand ambassador of Dish TV, Shah Rukh Khan urges the viewers not to b
e complacent with the smudgy and faulty cable service. A simple line, “Santusht
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 dis
htv, through a breakthrough campaign that not only amplified dishtv s image, but
revamped the entire DTH category as a whole. It questioned the attitude of our
countrymen who are ever satisfied with sub optimal services. It further encourag
ed them to switch from poor service of cable TV and start wishing for much bette
r quality entertainment with dishtv. But Dish TV has repositioned itself with a
new tag line which says “Sabse Zyaada” means: ” Dishtv Offers Sabse Zyaada Enter
tainment Sabse Zyaada - Number of Channels Sabse Zyaada – Regional Channels Sabs
e Zyaada Genre Sabse Zyaada - Value at Every Price Point” The reason for this be
ing 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 DTH players, there was a need to reestablish thei
r brand as the largest content provider. “Sabse Zyaada” is a positioning that cl
early brings together the differentiation of Maximum Entertainment and Maximum n
o. of Channels and Maximum Value offered by Dishtv in a powerful way.
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Direct To Home
TARGETING:
At the start when Dish TV was making an entry into the Indian market, it targete
d DD Direct+ customers. But now being an established player in DTH market reigni
ng at no.1 slot, Dish TV has revamped its targeting strategy. Dishtv has become
a brand to reckon with. The name dishtv is highly salient and almost generic to
the category. Due to aggressive advertising and media presence, today the brand
enjoys top-of-mind recall and recognition by consumers across markets. Dishtv ha
s the king of entertainment- Shah Rukh Khan, as the ambassador to endorse its br
and. An iconic figure and a mass drawer, SRK signifies all that dishtv stands fo
r - entertainment personified tech savvy, family appeal and leadership status. T
his association has resulted in an enhanced brand recall and brand 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 serv
ices for their value-added channels — which air things other than the usual tele
vision programmes, such as, gaming, education, virtual pilgrimage, and so on. Bu
t 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 S
tate Bank of India, and its services, including an EMI. From time to time Dish T
V comes up with various promotional offers in form of coupons or set top box fre
e to encourage customers to make mental commitment to buy their product which in
creases the brand purchase intention of the customer. Dish has set aggressive ta
rgets for 2009-10. It aims to add another 2.5 million subscribers, to take the g
ross subscriber base to over 7.5 million subscribers. The company is also lookin
g at additional revenue through carriage fees and advertising generated on the c
lean-feed of select foreign channels. (http://www.business-standard.com/india/st
orypage.php?autono=351678)
STRATEGIES:
Since its launch, Dish TV has leveraged the first mover advantage be it with “di
sh-harchhat-par" in April 2005 and Dish Freedom Package” plan in January 2006. T
he aim was quite clear - the slashed pricing will lure more customers to the Dis
h TV service, while increasing the penetration and aimed at making DTH entertain
ment affordable to everybody. At the Start, Dish TV did not worry about profitab
ility. 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 s
ervices. The strategy was to mobilize the cable dark and rural subscribers. Esse
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Direct To Home Now that Dish TV is the ruling player in the DTH market, the stra
tegy has changed because before Dish TV was competing with cable operators and t
rying to acquiring a foothold in the DTH market but now with rising competition
among DTH players, there was a need to re-establish their brand as the largest c
ontent 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 ma
rket 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 bu
siness of providing teleport services (up linking and space segments) to the bro
adcasters of various channels. For acquiring advertisers: 1. SMS campaign to e
ntire Dish TV sub-base. 2. Providing advertising options - Sponsorship opportuni
ties 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 s
ub-base. 5. Presence on the Dish TV website. 6. Sponsored Product / Brand Catalo
gue on News Active. 1. 2. 3. Customer Acquisition strategy: Focused marketing
leading to creation of a BRAND – SRK campaign. Largest content offering and digi
tal viewing experience. Aligned dealer incentive structure-Higher incentives for
subscriber at higher packs. 4. Competitive pricing, A-la carte offerings and ea
se of making payments. 5. Distribution and after sales service. Pan-India presen
ce through 800 distributors & 48,000 dealers across 6600 towns as of Jun 09. 6.
Dish TV s attractive pricing strategy Customer retention strategy: 1. Promotio
ns and dealer incentives offered on an ongoing basis to retain customers through
innovative packages. 2. Packages to suit every palate. 3. Niche Content. 4. Pro
viding Value-Added Services (VAS) – foray into e-banking, ticketing, job search,
matrimony services, sharing infrastructure with other service providers. 5. Ove
r 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 ca
pacity of up to 800 operators.
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Direct To Home ARE THE CURRENT STRATEGIES SUCCESSFUL? A charismatic brand ambass
ador coupled with a good product has made Dish TV India’s No. 1 direct-to-home c
ompany. The strategies applied by the company are attracting new customers to it
s fold and thus increasing its subscriber base. • With marketers constantly clam
oring for innovative means to break through the clutter and reach their target a
udiences accurately with minimal wastage and cost effective media, Dish TV prese
nts a great opportunity. The sheer volume reach along with low clutter, customer
segmentation opportunities, product interactivity, and effective costs has made
Dish TV an attractive proposition for advertisers and agencies alike. Pricing,
value-added-services like movie-on-demand (MOD) and pay per view (PPV) are featu
res are successfully adding to brand value of Dish TV. The ‘showcase’ strategies
of Dish TV which aired movies Fashion & Hancock ,A Wednesday, Da Vinci Code and
premiered Dev D, within 3 weeks of its Theatrical Release on a pay-to-view mode
l worked with great success. Many potential subscribers, particularly in rural a
reas, are wary of subscribing to DTH in the absence of a good after-sales networ
k. Dish TV has successfully countered this problem by pan-India presence through
800 distributors & 48,000 dealers across 6600 towns. The companies focus on agg
ressive subscriber customer acquisition strategy through offers like ‘Set Top Bo
x Free’, ‘Happy Home’, ‘Aapki Wish Aapka Pack’ and ‘Recharge Free’ has paid off.
Dish being relatively cheaper is being favored by the largely rural families an
d those in remote areas. Dish TV brought Annitikanna Ekkuaa – A Mega offer custo
mized for Andhra Pradesh offering unmatched Telegu entertainment with 12 months
subscription of the South Silver Pack better then what other DTH players are off
ering in this region.
• • •
•
•
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TATA SKY is a DTH Satellite Television provider in India, using MPEG-2 digital c
ompression technology. It is a joint venture between Tata Group that owns 80% an
d Star TV that owns a 20% stake. TATASKY was incorporated in 2004 but was launch
ed only in August 2006.
SEGMENTATION:
GEOGRAPHIC SEGMENTATION:
Urban and Rural: Tata Sky Primarily targeted urban audience but later Tata Sky h
as seen demands from smaller cities grow after the introduction of its electroni
c programming guide (EPG) in hindi. Tata Sky has been focusing on tapping variou
s avenues to further its network, particularly in the rural markets. Tata Sky, w
ith presence across 35,000 outlets in 5,000 towns and cities, had earlier tied u
p with ITC e-choupal to. To expand its distribution network and penetrate the ru
ral market, the company has tied-up with ITC s e-Chaupal. Further Tata Sky had i
ntroduced 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. Re
gion and States: Tata Sky has a pan-India presence. The company has climbed moun
tains and crossed the oceans in its first few months it has installed services i
n 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 pack
s and south offering packs like south jumbo or south value packs. Keeping in min
d their diverse audiences, Tata Sky have several regional channels covering Tami
l, Malayalam, Telugu, Kannada, Oriya, Bengali, Punjabi, Gujarati, Marathi and ma
ny 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 c
artoon network available in telgu.
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Direct To Home
DEMOGRAPHIC SGMENTATION:
AGE and GENDER: Tata Sky has offered host of services for its customers from eve
ry age and gender. Like: Active Stories: For 2 - 7 year olds A TV based story bo
ok that children can read and listen to at their own pace. Enjoy new stories fro
m 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 spec
ifically for preschoolers, Active Wiz kids is a television based service that ai
ms 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 Sc
ience. Active Games: Interactive games for all ages on the TV. Active Darshan: E
ssentially focused on customers belonging to older age groups. 24x7 darshan of t
he 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 ge
nder. INCOME: In its constant endeavor to offer its subscribers with maximum cho
ice 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 agg
regated and classified into following packages namely:
FAMILY SIZE: Tata Sky has something for everyone in a typical Indian family. Lik
e Active Wiz kids for the children, Active Darshan for grandparents, Showcase fo
r the younger people, Active Cooking for mother, Active Sports for father. Tata
Sky has just started “The Friends & Family” programme which is a reward based re
ferral programme for eligible Tata Sky subscribers where huge discounts are give
n to the refereed person and referring person. Essentials Of Marketing Page 17
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BEHAVIOURIAL SEGMENTATION:
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 r
egional languages (2007), sale of digicomp set top boxes at discounted rates (di
wali offer 2007), launch of Digital Video Recorder (diwali 2008). BENEFITS: Tata
Sky offers benefits to customers like: • DVD Quality Picture & Sound: Enjoy ove
r 170 TV channels and services in DVD quality picture and CD quality sound. • Cu
stomer support: 24x7 call centre’s & over 3000 engineers support in 11 languages
. • With Guide you can: Find out what’s playing on any channel up to 4 days in
advance. Programme details of all channels can be viewed in English and Hindi
. Set reminders for up to 50 programmes you wish to watch. Get synopsis of p
rogrammes.
• Parental Control: Regulate what your children watch on your television by lock
ing 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 chang
ing the channel you are watching.
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Direct To Home USER STATUS: In order to attract the non users and potential user
s 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 v
alue pack, 5 months of free viewing, Tata Sky hardware for Rs 1,499, family and
friends offer, 50% off on installation, 0% EMI schemes.
PSYCHOGRAPHIC SEGMENTATION:
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 mo
vies like Slumdog millionaire and 1920 in its showcase channel for people who wa
nt a private multiplex at home. Tata Sky targeted the youth segment with by show
ing concerts like Beyonce – Live at Wembley, AC/DC – No Bull concerts in their s
howcase channel. Active cooking targets women where they can get nine new easy-t
o-cook recipes daily, from master chefs across the country along with handy kitc
hen tips at the press of a button. Similarly Active Mall is targeted at people w
ho 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.
POSITIONING:
With an aim to connect to all television viewers and create interactivity amongs
t 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 u
se this, life will be great!). The brand s positioning is based on three aspects
– better picture quality, the interactive offering and customer service which c
an be seen in the advertisements like ‘elderly’ Khan virtually condemning Tata S
ky 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 w
ife where Khan tells us about the pedigree of Tata Sky and inform potential cust
omers about Sky-the leading British Broadcasting along with the benefits of Tata
Sky and how it makes our life “Jingalala” or the Tata Sky plus advertisement wh
ere 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.
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Direct To Home Be it for a family or students Tata Sky has something for everybo
dy. One can view the schedule for the next 4 days for most of the channels, scro
ll down the list and put alerts for the favorite programs, while watching one ch
annel, we can get to know in a box at the bottom what’s going on in other channe
ls, 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 jing
alala for many Indian families.
TARGETING:
As Aamir Khan, and rightly so, points it in the advertisement that Tata Sky has
the trust of brand TATA and the technology of Sky has made Tata Sky a brand to r
eckon with. The name Tata is a well known brand which commands respect and trust
among its Indian consumers which gives an identity to the brand of Tata Sky and
an edge in the market. Also, due to its creative advertising, the brand enjoys
top-of-mind recall and recognition by consumers across markets. Tata Sky has Aam
ir Khan and Asin, as the ambassador to endorse its brand. An iconic figure and a
mass drawer, Aamir Khan makes a perfect fit with the Tata Sky brand values of t
rust, high-quality entertainment and innovation. While Asin, campaigning down so
uth, is a young, energetic achiever and enjoys a high degree of credibility with
consumers down south. This association has resulted in an enhanced brand recall
and brand image. Tata Sky also offers hosts of active services for their value-
added channels — which air things other than the usual television programmes, su
ch as, gaming, education, flower delivery, virtual pilgrimage, and so on. From t
ime to time Tata Sky has come up with various promotional offers like ‘Family an
d Friends referral scheme’ and new products like Tata Sky plus to encourage cust
omers to make mental commitment to buy their product which increases the brand p
urchase intention of the customer. Tata Sky is targeting 8-million subscriber ba
se by the year 2012. (www.livemint.com/2008/10/14181532/Tata-Sky-launches-PVR-te
ch-ey.html)
STRATEGIES:
Tata Sky’s strategy is to capture the market by offering superior value. Consume
r insight shows that television is the only affordable family entertainment opti
on available for middle-class Indians today and they would appreciate any enhanc
ement 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.
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•
•
Control: Viewers can control the content; watch four news channels simultaneousl
y, find out what s playing on all channels without changing channels and, most i
mportant, parents can regulate what their children watch. Convenience: The viewe
r gets 4-day listing of all programmes on TV.
The X factor — the excitement of interactive services. Tata Sky offers a bouqu
et of interactive news, sports and games to subscribers all easily accessible wi
th some simple hardware. Using the DTH platform and its large subscriber base
for generating revenue through advertising like coca cola used the Tata Sky plat
form to promote its new product Minute Maid Pulpy Orange.
Tata Sky has adopted a 360-degree communication approach for its customers thr
ough television, print, web, radio, outdoor media, call centre’s and direct mail
ers, both in urban and rural areas. It has also made it a point to demonstrate t
he service at high-traffic sites like airports, malls and exhibitions. Only TV
service in this country which not only provides entertainment to kids through t
oon channels but also educates them through its interactive channels.
It undertook the most interactive step by walking into schools directly and co
nvincing teachers that children could learn multiplications and divisions direct
ly from TV.
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Direct To Home • • • • • • • • • • • Customer Acquisition strategy: Focused
marketing campaign. Launch of Tata Sky Plus. Distribution and after sales servic
e. Interactive services for all family members. Multi Dwelling Unit (MDU) soluti
on. Customer retention strategy: Upgrade to Tatasky + by exchanging regular Tata
sky. Active services. Alliance with Walt Disney Company India to bring Disney ch
aracters on its interactive platform. Cartoon network in telgu for its subscribe
rs down south. Tata Sky subscribers can suspend their viewing services temporari
ly on account of vacation, travel, exams etc. 24x7 call centres and over 3000 en
gineers.
ARE THE CURRENT STRATEGIES SUCCESSFUL? Tata Sky though launching late as compare
d to Dish TV has gained more than 4million subscribers which indicates it’s grow
ing at a healthy rate. Tata Sky’s growth has been helped by strategies like: M
ulti Dwelling Unit (MDU) solution for multi-storied buildings, with the option o
f using a single mini dish for the entire building has worked in favour of Tata
Sky. Tata Sky added the Sun TV bouquet of channels in Tamil Nadu which resulte
d in a good surge in its subscriptions. It offers “Active” services pertaining
to religion, sports and education. Its Bangalore R&D centre produces original c
ontent in science, general knowledge and mathematics, which is becoming popular
in schools. Tata Sky plus is getting Tata Sky new customers. With Tata Sky plu
s the viewers can pause+ record+ rewind LIVE TV. Tata Sky exchange offer for T
ata Sky Plus at a discounted rate has gone down successfully with its customers.
Schemes like 50% off on installation; friends and family referral programs ha
ve been adding to its customer’s numbers.
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Direct To Home ALTERNATE STRATEGIES: Generate TRP’s – 24 hr broadcast for Road
ies, Indian idol and other most watched TV serials (VAS). Prevent switching –
free coupons to existing subscribers. Product differentiation – various packag
es. High switching cost – subscriber have to pay when they switch to other bra
nd. Target single channel viewers. Variety in Movie Listing with Bollywood,
Hollywood and Regional Channels. Combined Product with Television - Rural area
s, especially and niche segment targeting if combined with LCDs. Including the
local cable operators as distributors would be an extremely useful way of reach
ing out to the target market. • • • • • • • • • Strategies for the rural sec
tor can be: Customizing offering Combination of various national channels with r
egional channels Educational Package Appointing the village head as Distributor
and the promoter as the villagers tend to listen to village head This can be sup
plemented by giving the connection to village head free for initial period Anoth
er avenue that can be explored is Mini – Theatres. Setting up Mini – Theatres in
rural sector to promote the Product Events like Cricket matches, movies etc. Th
ese Mini – Theatres can be the Point of Sales.
Promotion The promotional strategies suggested are: 1. Packages for Special Ev
ents like the cricket World Cup. 2. Targeting Tata employees could be a useful w
ay pr promoting the product. 3. Give the option of installments and other promot
ional 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 r
econstructed 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 wel
l. 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 H
oardings of Tata Sky Ads. • Finding the strategic building in the locality • Con
sideration can be in form of cash payment to the Housing society • Providing fre
e connections to Households in these buildings 8. Another new avenue that can be
explored is the railway stations: Essentials Of Marketing Page 23
Direct To Home • • Posters on railway station roofs. Tickers at Major suburban R
ailway stations.
Use of Internet- Applications which involve sharing of videos on how one consu
mes TV, benefits of DTH over cable TV, etc. across social networking sites like
Orkut, ibibo, etc.
References: http://www.tatasky.com/index.html http://www.dishtv.in/default.asp h
ttp://www.indiabroadband.net/ http://www.cellbharat.com/blog/tag/dth/ http://www
.saveondish.com/ http://www.dishtracking.com/forum/index.php http://www.indiandt
h.com/
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ESSEL GROUP
Essel Group ( of the US $ 1.7 billion Zee Group fame) has a vast range of nation
al and global business interests, encompassing media programming, broadcasting &
distribution, communication, packaging, online lottery, entertainment parks, te
lecom and trading, movie production, multiplexes, education, animation, publishi
ng and satellite with particularly close synergies with ventures active in the a
reas of content, distribution/reach and infrastructure/logistics such as Zee Tel
efilms, Siticable, Zee Interactive Learning Systems, Agrani, E-city, Essel Propa
ck, Esselworld, Cyquator, Dish TV, Playwin, Water Kingdom, Intrex India, Zee Tur
ner, 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 —
shareholders, customers, employees and vendors. ‘Faith in innovative and organis
ed growth’ is the dictum that drives all business decisions. A multicultural org
anization with a strong customer focus, Essel Group companies reach out every da
y to millions of consumers across the globe.
INDIA’S IMPORTANCE FROM STRATEGIC POINT OF VIEW.
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 mill
ion, the Indian market represents a tremendous opportunity for ESSEL GROUP and r
einforces our strong market position in the Asia Pacific region and globally.
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MEDIA
ZEEL (Zee Entertainment Enterprise Ltd) SBU FORMATION REASON: TV have been ident
ified 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 pi
e is continually growing, with the maximum ad revenues being absorbed by Hindi s
oaps and movies. FICCI-PwC s 2007 report on the media & entertainment industry s
tates 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 an
alysts 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 mo
ney 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 f
actor driving players to jump into the television well. Once implemented, if a c
hannel is delivering good content, people for sure would pay to watch it – and m
edia 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 lev
els. 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 stron
g 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 cr
ores on a daily basis. Most of the new players have deep pockets, but many may n
ot last the distance. With Sun TV Network, buying 49% stake in NDTV s Red FM rad
io network; Walt Disney purchasing UTV s children s entertainment channel Hungam
a 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 broadcastin
g companies, and in the case of ZEEL, revenues are less heavily skewed towards t
he Real estate and Auto sectors. The major contribution of advertising revenue i
s done through FMCG (50%), Telecom (20%) and others (30%).ZEEL is the 3rd larges
t television network in India and has a complete entertainment portfolio The com
pany 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 Po
sition), Zee Cinema with a market share of 39% at No.3 position, English Enterta
inment (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: 1HF
Y09, 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 R
s 439 crore and the remaining contribution from other operating income. Essentia
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GROWTH STRATEGY: ZEEL strategy is growth intensive creating complex network of c
hannel in a multitude of language, each to a select audience, covering a diverse
range of cultures, geographic and demographics. Promoting theme—ENTERTAINMENT U
NLIMITED Advertising revenue—14 % growth Subscription revenue—22 % growth Intern
ational subscription added 21% to revenue. Company has taken a series of initiat
ives to consolidate the talent management initiatives. The Board has recommended
issuing of Employee Stock Options Plan (ESOPs) to deserving employees to create
a greater degree of ownership. We have also initiated creation of a talent map
for all positions which will be synchronized with talent map of employees holdin
g these positions. These efforts have shown positive results in the Company ZEE
programming architecture is unique enabling them to groove on the sharp side of
leading edge production. Shaped and cut to suit various requirements, innovation
in product design and development offer viewers a diverse menu of channel optio
ns. ZEE offer programming for every viewer palate and every conceivable taste br
inging joy to millions across the globe. ZEE’S workforce, an electric mix of var
ious points of view and talent from all over the world is highly valued and rewa
rded. Almost 80% of employees at ZEEL are less than 35 years of age.
Product initiative such as general entertainment, reality shows, lifestyle, tale
nt, fashion, movies and film production have created a unique and invigorating v
iewing culture making to touch lives everywhere. Apart from Star India that has
been grossing in excess of Rs 1,000-crore advertising revenue for the past four
years, Subhash Chandra-promoted Zee Entertainment Enterprises was the first broa
dcaster to cross this mark this year. Zee Entertainment’s net advertising revenu
e for 2007-08 (April-March period) stood at Rs 930 crore.By virtue of market sha
re too, Zee TV is the second ranked entertainment channel after Star Plus.
REFERENCE- http://www.media-partners-asia.com/mpanews240608b.asp
Company Name Market Cap. (Rs cr)
ZEEL
Sun TV Network 7,272.7
TV 18 India
TV Today
6,507.9
1,200.2
470.4
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Direct To Home Source: Company, KRC Research - REFERENCE-ZEE Management Meet Not
e1.PDF CHANNELS BOLLYWOOD- SUSTAINING LEADERSHIP
ZEE CINEMA- The channel boasts of one of the largest libraries having an eclecti
c mix of programmes, blockbusters and hits. Since its launch, Zee Cinema has bee
n 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 Sh
anivaar 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 apprecia
ted and viewed brands for over five years. Zee Cinema’s sprucing up premiers & s
pecials with innovative break content have been widely appreciated. ------------
--------------------------------------------------------------------------------
----------------
Zee Premier has been specifically designed to address viewers of of a specific d
emographic. 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 whic
h has been in a continuous state of evolution with every passing year. The colle
ction contains the world premiers of many award winning movies such as Taare Zam
een 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
--------------------------------------------------------------------------------
----------------------------
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CHANNELS-SPORTS
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 bu
siness. Popular events like WWE, UEFA Champions and League Football have made in
roads 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 le
ss than a religion in India, Ten Sports has acquired the rights to five of the t
en cricket boards, giving it over 100 days of cricket a year. This is the maximu
m 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 Sport
s for the next 4 years. --------------------------------------------------------
---------------------------------------------------CHANNELS-ENGLISH CONTENT (BRI
NGING THE BEST OF INTERNATIONAL CONTENT TO INDIAN AUDIENCES)
The English GEC channel was launched in 2000. Being the most widely viewed Engli
sh Channel in India, it has garnered a large market share among the English spea
king and viewing audience. Zee has focused on sourcing the best international co
ntent which appeals to the young and urban Indian palate. Some of the most popul
ar shows on this channel are The Best of F.R.I.E.N.D.S., Gossip Girl, Sex and th
e City, The Tonight Show, The Big Bang Theory and many alike. The only Indian sh
ow to capture all the existing & worthwhile party actions in after hours. Broadc
asting the most happening international events like the World Music Awards, Emmy
’s and leading fashion shows is one of the channels strategic prerogatives. In r
ecent times, Zee Café acquired exclusive live telecast rights to the most presti
gious beauty pageant – Miss World 2008. ----------------------------------------
--------------------------------------------------------------------
Zee Trendz is the leading fashion and lifestyle property in India. Following Ind
ian as well as global trends, this channel brings to you the latest in style, fa
shion, music and people. Some of the remarkably successful shows that were acqui
red are: Ultimate Gadgets is a program on audio, video, interactive and communic
ation, bringing the audience the latest on trends and products, especially desig
ned 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 a
nd video clips. Power Players profiles the most influential men and women from f
ields 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. Caterin
g primarily to movie buffs among the of programmes includes a potent mix of Holl
ywood’s hottest block busters, animation flicks, golden classics, musicals, come
dies and the finest of world cinema. Zee studio acquires the exclusive telecast
rights to the prestigious awards ceremonies such as, The Screen Actors Guild Awa
rds ‘09 and Live from the Red Carpet Academy Awards ‘09. CHANNELS- MUSIC , LIFES
TYLE & 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 Adars
h interviews directors, producers, corporate heads, actors and everyday celebrit
ies Bada Parda: Reviews the hottest films of the fortnight Star Giraftar: Showca
ses stars and their upcoming films, an indepth look at the films and their chara
cters 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 displ
ayed 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 y
ears and above. Some of the channel’s key properties are Eye Candy, Face to Face
, Chillax Morning, Flix @ 2, After 8 and Bollywood Chakkar. --------------------
--------------------------------------------------------------------------------
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Zee Jagran forays into the spiritual and religious entertainment genre, aimed at
awakening people to realize the spiritual aspects in their life and hence enric
hing 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 ac
cessible to viewers on free-to-air basics this in turn provides it a vast viewer
ship. 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)
PACKAGING
PROPACK: SBU FORMATION REASON:
At present, India’s packaging industry across all materials is estimated at Rs 2
0,000 crore. Indian packaging industry is highly fragmented, with unorganized an
d small scale industry constituting 60-70% of the total size. About 32% is plast
ic 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 ind
ustry, it is close to $14 billion and growing at around 15% annually.
REFERENCE-http://www.dnaindia.com/money/report_packagers-feel-cost-pricingheat_1
195177 As FMCG products get more and more branded and aspire to become a brand f
rom a mere commodity, packaging will connote more than just a secure receptacle
and convenient container.
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It will convey brand character, personality and contain a wealth of information
about the brand, its size, contents and ingredients. It will also help different
iate a product from the others in the same category.
Slow and steady movement to greater product awareness, branding and better retai
ling formats follows an evolution from ‘loose’ product sales to branded & packag
ed products with greater information to consumers about choices, ingredients and
precautions. Customers today demand variety and change sometimes desiring unifo
rmity, sometimes dazzling variety, utilitarian, convenience, or even dual usage
etc. All this drives changes in packaging, materials, colours, decorative effect
s, formats, shapes and sizes STRATEGY: Core competencies of superior technology,
knowledge of product and marketing intimacy with global client base.
Success Factors
Inorganic Growth Route Essel Propack owes its global recognition and current mar
ket share in the packaging industry to its policy of focusing on acquisitions an
d JVs. Pursuing its strategy of inorganic growth in the EU, the company has acqu
ired 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, Ess
el Deutschland, in Germany. These acquisitions and the JV have helped it to atta
in 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 Propa
ck also acquired Telcon Packaging Limited in the UK (now renamed ‘Essel Propack
U.K. Limited’) In 2006 they company had 85% stake in two medical devices compani
es Tacpro Inc (USA) and Avalon (Singapore).
TECHNOLOGY:
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/that
s-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 di
gitization drive is expanding by 35-40% annually. However, industry estimates DT
H to touch 35-40 million subscribers by 2012, and that’s the number that every D
TH brand has set its sights on. By 2015, DTH will enjoy a market share of 40%, d
igital cable 40% and analog cable will follow with only 20% market share. The DT
H service market in
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India has emerged as one of the most lucrative markets which have successfully r
esisted 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 20
09 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 heavywe
ight Sun TV has entered the fray with Direct, while Videocon has entered the mar
ket in June 2009. Dish TV Financial Highlights (2008) 4,127.44 3.00
REVENUE Number of Subscribers (Gross)
INR Nos.
Million Million
DMCL (Digital Media Convergence Ltd.): SBU FORMATION REASON:
Digital Media Convergence Limited (DMCL) is an Essel Group company. The company
constantly explores unrealized avenues for the provisioning of entertainment. DM
CL is wagering on entertainment opportunities, in the digital platform (web, mob
ile et al). DMCL acquires, digitizes and delivers a wide variety of content on d
igital platforms.
Future of entertainment - convergence of devices and of networks. Consequently,
our business focus is to leverage the opportunities arising out of the convergen
ce trend and at the forefront of providing compelling content over mobile networ
ks The core business focus of DMCL is to facilitate end-to-end products and serv
ices related to digital content for emerging entertainment content consumption d
evices using wired or wireless telecom platforms such as Mobile, Internet, Podca
sting and IPTV.
STRATEGY
The DMCL team focuses on capitalizing the continuously evolving digital entertai
nment landscape by using its technology and content-based research expertise to
guide and collaborate with content creators and telecom operators. DMCL is equip
ped with cutting edge technologies for archiving content in digital format.
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ENTERTAINMENT
FUN MULTIPLEXSBU FORMATION REASON: The entertainment industry in India is growin
g at a fair clip amongst which multiplex segment is touted to be one of the fast
est growing segments. Though these multiplexes have mushroomed in the metro citi
es such as Delhi and Mumbai, non-metros are still to catch up with the similar m
omentum. The concept of multiplexes has matured to the next level wherein, it is
positioned as a complete entertainment centre for the families with other recre
ational 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 rea
ching 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 mult
iplexes 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 ris
ing employment, increasing disposable income, outing spots of the families on we
ekends etc. There are just 747 multiplex screens in India; they contribute aroun
d 40-45 per cent to the revenue basket of any movie. REVENUE SOURCE: Improving a
verage ticket price, strength in food and beverages sales and continuing strengt
h 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 nat
ional/ international food chains Shopping arcade having various outlets of di
fferent brands Handicraft mela exhibiting the art and crafts of different sta
tes of the country Other Facilities: ATM centers of different bank Park
ing space Administrative room
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INFRASTRUCTURE_____________________________________________________ Essel Infrap
rojects Limited – With Esselworld and Water Kingdom, among the largest amusement
theme parks, EIL is also engaged in the development of roads, power plants, Spo
rts complexes and Special Economic Zones. E-City Real Estate Pvt. Ltd – The Comp
any behind the successful lifestyle brand Fun Republic – plans to develop and op
erate 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.
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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 WHI
CH SBU LIES CASH COW QUESTION MARK QUESTION MARK DOGS STAR
DISH TV
Essel Propack 21%
ZEE
6%
STAR-11%
0.54%
17%
8.9% FUN MULTIPLEX ZEEL 42.12%
PVR-14.45% SUN TV-47%
0.61% 1.12%
10% 12.5%
BCG matrix 20 %
M A R K E T
Build 10 %
??
Build
G R O W T H
Cash Cow
Hold
Dogs
Divest
Relative Market Share
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Direct To Home PRODUCT PORT-FOLIO Essel Group is one of India’s prominent busine
ss houses with a diverse portfolio of companies in media, entertainment, technol
ogy-enabled services, education, infrastructure development and packaging. The G
roup’s publicly listed companies include Zee Entertainment Enterprises Ltd, Zee
News Ltd, Wire & Wireless India Ltd, Dish TV India Ltd, Essel Propack Ltd and ET
C Networks Ltd. In India, Zee TV is the first satellite channel, Siticable is th
e first multi-system operator, Esselworld is the first amusement park, Water Kin
gdom is the first theme park and Playwin is the first online gaming company. Ess
el 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 ingenuit
y and power of Indian entrepreneurship, with worldwide operations. As per the BC
G Matrix two of the SBU’s (ZEE & ESSEL PROPACK) lies in the question mark quadra
nt and the SBU’s (Dish TV & Fun Multiplex) lies in the cash cow and dog’s quadra
nt 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 attra
cting a large amount of investments in its various ventures and at the same time
offering a lucrative return, creating share holder wealth.
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Direct To Home
References: http://www.thehindubusinessline.com/2008/08/09/stories/2008080951130
500.htm http://bx.businessweek.com/packaging-industry/turnover-of-packaging-indu
stryin-india/14677494993074838105-3337e6e8d1c96270e99ad370b1d24aff/ http://docs.
google.com/gview?a=v&q=cache%3AW6r_xybddMJ%3Adspace.mdi.ac.in%2Fdspace%2Fbitstre
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H-Industry-in-India (www.financialexpress.com/news/thats-entertainment-direct-to
-home/497502/) (http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-bu
t.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/8368
95/multiplex_india.pdf www.businessofcinema.com/news.php?newsid=12488 www.pvrcin
emas.com/investor
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