Beyond Beyond EntertainmentEntertainment

Strategy For Tomorrow

Prepared by Prepared by Sai Venkatesh AttaluriSai Venkatesh Attaluri

IntrospectionIntrospection 1) Why only entertainment is selling? 2) Is it only entertainment left to tap or anything else

beyond that? 3) How long we will depend on only Entertainment? 4) If more vendors come into market then revenue

share on entertainment gets diluted among the different Vendors?

5) Why information and other resources are not selling?

6) Truth is without information the globalization and contraction of geographic distances would have not become the order of the day.

7) What is the role of Operators towards this objective in terms of Revenue sharing?

Situational ApproachSituational ApproachIn life, when faced with failure,

sometimes it is appropriate to work harder and put in more effort. Sometimes it is appropriate to change strategy and try something different. And sometimes it is appropriate to do both.

Case StudyCase StudyWhen Roberto Goizueta took over

as CEO of Coco-Cola in the 1980s, he was faced with intense competition from Pepsi that was eating into Coke's growth. His executives were Pepsi-focused and intent on increasing market share 0.1 percent a time.

AnalysisAnalysisRoberto decided to stop competing

against Pepsi and instead compete against the situation of 0.1 percent growth.

He asked his executives what was the average fluid intake of an American per day?◦ The answer was 14 ounces.

What was Coke's share of that?◦ The answer was 2 ounces.

Identifying the situationIdentifying the situationRoberto said Coke needed a

larger share of that market. The competition wasn't only Pepsi but also water, tea, coffee, milk and fruit juices that went in the remaining 12 ounces. The public should reach for a Coke whenever they felt like drinking something.

Coke Market ShareCoke Market Share

Other FluidsCoke SharePepsi

SolutionSolutionTo this end, Coke put up vending

machines at every street corner. Sales took a quantum jump and Pepsi has never quite caught up since.

ResultResult

Other FluidsCoke SharePepsi

Current VAS Revenue Share Current VAS Revenue Share

Entertainment

OtherResources

Situational ApproachSituational ApproachIn life, when faced with failure,

sometimes it is appropriate to work harder and put in more effort. Sometimes it is appropriate to change strategy and try something different. And sometimes it is appropriate to do both.

AnalysisAnalysisHow to increase revenue from other

resources?Why people are showing less interested

in Infotainment & other resources? Is it because of content or high price?Is the value of content worth the price?How about reducing the premium cost

on these services and increase the volume?

ProjectionsProjectionsPresently we are earning 80% of

VAS Revenue from entertainment and 20% from other resources, we need to focus on increasing the contribution of VAS revenues from other resources year on year basis while retaining & increasing entertainment revenue.

Projected VAS Revenue year on Projected VAS Revenue year on year basisyear basis

EntertainmentOther Res

Entertainment

Other Res

Current VAS Revenue

Projected VAS Revenue

Other ResourcesOther Resources

Infotainment◦ Traveling◦ Information provisioning/Directory

Provisioning◦ Health Information ◦ Weather Services◦ Financial Information◦ Business Information◦ Special Priced Ordering Services [Magazine

subscriptions]◦ News◦ Events

Other ResourcesOther Resources Advertising / Mobile Marketing Consultancy Services

◦ Job◦ Marriage◦ Education◦ Real Estates etc

M-Commerce◦ Mobile Ticketing◦ Bill Payment◦ Shopping◦ Banking

M-Education

ConclusionConclusion We believe that while the mobile VAS space is

all set to grow rapidly, all the stakeholders will have to work together and create a self-sustaining ecosystem for this growth to sustain.

The key addressable barriers would be to ensure greater rationality in revenue sharing between Operators & content developers; develop higher quality content which goes beyond Bollywood and cricket and also to have a focused WAP strategy.

More studies are to be conducted to catch the pulse of customers, their interests, tastes, likes , dislikes etc

With good concepts and good ideas, we can do well but if these concepts & ideas are blended with good strategies then there is no doubt to say that sky is the limit.