Buyer Awareness of Tata Sky

7/30/2019 Buyer Awareness of Tata Sky

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A PROJECT REPORT ON(CONSUMER AWARENESS ON TATA

SKY)

SUBMITTED BY(AKIL SHETTY)

FOR THE DEGREE OFTHE BACHELOR OF MANAGEMENT

STUDIESUNIVERSITY OF MUMBAI

UNDER THE GUIDANCE OF(MR.ABHISHEK NIKAM)

S.K SOMAIYA COLLEGE OF ARTS,SCIENCE & COMMERCE

VIDHYAVIHAR(E), MUMBAI 400022ACADEMIC YEAR 2010-2011


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ACKNOWLEDEGEMENT

I would like to express my gratitude and sincere thanks to my ProjectGuide (Mr. Abhishek Nikam), S.K Somaiya College Of Arts, Science& Commerce for instilling confidence in me to carry out this studyand extending valuable guidance and encouragement from time totime, without which it would not have been possible to undertake andcomplete this project.

I also wish to extend my appreciation, specially to our Principal Mrs.Parvati Venkatesh, and also the BMS Co-ordinator Mrs. Mrs. AparnaJain for their kind co-ordination and support. Last but not the least mycolleagues for their valuable comments and suggestions for makingthis a cherishable experience for me.


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Index


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Serial Particular Page

Nos.

1 Executive Summary 5

2 Introduction 6

2 History of DTH in India 7

3 DTH INDUSTRY An Overview 11

4 DTH Market

a. Entry barriers in Indian DTH

Industry

b. challenges faced by the DTH

Industry

13

5 Company Profile Tata Sky

a. A Birds view of Tata Sky

b. Vision

c. Achievement

d. Milestone

15

6 1. SWOT Analysis 20

7 Product Matrix

a. Product

b. Price

c. Place

d. Promotion

22

8 Market Segmentation 32

9 Porters5 forces 34

10 PRODUCT COMPARISON

a. TATA SKY

b. RELIANCE BIG TV

c. AIRTEL DIGITAL TV

37

11 Product Differentiation 41

12 Objective of The Study 43

13 Research Methodology 44

14 Analysis of Data 50


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EXECUTIVE SUMMARY


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This project i.e. Consumer Awareness on TATA SKY is purely

focused on how tough awareness is going in the current market.Nowadays, more and more companies are coming up with their newDTH services to entertain the people in their life.

The introduction of the industry includes some vital detail about thehistory of DTH service. Soon after the beginning of the DTH service,in the opening only DD direct plus and Dish TV was successivelydoing their business but at the moment TATA SKY is also second-hand as DTH services.

The introduction of the company includes the details of the TATASKY, its milestones, its new schemes and services etc..

The objective of the project report is to conduct a survey to find outthe awareness of the consumer or people towards Tata Sky.

I used the simple random sampling research design for the project as Itried to know the awareness of consumers while using the DTH

service as their entertainment. I have collected primary data by fillingquestionnaire which have analyzed; tabulated and meaningfulconclusion are drawn out of it.

The sample size used for conducting the field survey was 60respondents. I will try my best in preparing this project report, stillthere may be some obstacles that comes in the way and stop me to100% accurate result.

Analysis and findings includes tables and graphs which were followedby meaningful interpretation.

Conclusion of the project includes the expression expressed byvarious respondents from whom the data are collected.

Introduction


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With the Indian economy booming at a GDP growth rate of 8.7%,there is sense of growth prevailing everywhere. The average Indiansdisposable income and purchasing power has risen to never beforelevels. The Indian Entertainment & Media industry is also not far

behind. It is currently estimated at a worth of Rs. 450 billion with aCAGR of 18% over next 5 years. Terms which were alien to Indianslike DTH, Digital Cable, and IPTV are suddenly finding presence ofcountrys journals.

India would overtake Japan as Asias largest DTH by next year and beAsias leading cable market by 2011 and the most-profitable Pay-TVmarket by 2015. This growth presents a lot of interesting scenarios.

With the 'CAS' issue not yet resolved, there's 'DTH' coming up tomuddle things up for you and me.

Doordarshan launched its Direct-To-Home telecast from April 1,2006Broadcasters like Star and Zee are now leaders in DTH Industry.

So what is this DTH all about? How, if at all, does it help the

customer? Is it good?

Let's show some detail for DTH service.

What is DTH?

DTH stands for Direct-To-Home television. DTH is defined as thereception of satellite programmes with a personal dish in an individual

home.DTH does away with the need for the local cable operator andputs the broadcaster directly in touch with the consumer. Only cableoperators can receive satellite programmes and they then distributethem to individual homes.

The History of DTH in India


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DTH services were first proposed in India in 1996. But they did notpass approval because there were concerns over national security anda cultural invasion. In 1997, the government even imposed a banwhen the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB)was about to launch its DTH services in India.

Finally in 2000, DTH was allowed. The new policy requires alloperators to set up earth stations in India within 12 months of gettinga license. DTH licenses in India will cost $2.14 million and will bevalid for 10 years. The companies offering DTHservice will have to have an Indian chief and foreign equity has beencapped at 49 per cent. There is no limit on the number of companies

that can apply for the DTH license.

How does DTH really differ from cable TV?

The way DTH reaches a consumer's home is different from the waycable TV does. In DTH, TV channels would be transmitted from thesatellite to a small dish antenna mounted on the window or rooftop ofthe subscriber's home. So the broadcaster directly connects to the user.The middlemen like local cable operators are not there in the picture.

DTH can also reach the remotest of areas since it does away with theintermediate step of a cable operator and the wires (cables) that comefrom the cable operator to your house. As we explained above, inDTH signals directly come from the satellite toyour DTH dish.

Also, with DTH, a user can scan nearly 700 channels!

Why DTH is is being discussed now?

Doordarshan plans to launch its DTH telecast from April 1. Thegovernment has said it will provide 10,000 dishes free across eight

states for increased community viewing of the DTH service. Thegovernment is estimated to be investing over Rs 300 crore (Rs 3

billion) in this DTH venture.


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There are four serious contenders for DTH services in India:Doordarshan, Star, Zee, and Data Access.

DTH superior to cable TV?Yes. DTH offers better quality picture than cable TV. This is becausecable TV in India is analog. Despite digital transmission andreception, the cable transmission is still analog. DTH offersstereophonic sound effects. It can also reach remote areas whereterrestrial transmission and cable TV have failed to penetrate. Apartfrom enhanced picture quality, DTH has also allows for interactiveTV services such as movie-on-demand, Internet access, videoconferencing and e-mail. But the thing that DTH has going for it is

that the powerful broadcasting companies like Star, Zee, etc arepushing for it.

So why are broadcasters pushing for DTH?

In DTH, the payments will be made directly by the subscriber to the

satellite company offering the service.

A big problem that broadcasters face in India is the issue of under-

reporting of subscribers by cable operators.

Consider the cable operators pyramid. Right at the top is thebroadcaster. Next comes the Multi Service Cable Operator (MSOs)like Siticable, In Cable, etc. Below themare the Access CableOperators (ACOs) or your local cable guy who actually lays the wiresto your house.

The local cable operators or the ACOs then allegedly under-report the

number of subscribers they have bagged because they have to pay theMSOs something like Rs 30-45 per household. Showing a lessernumber of households benefits ACOs.

With no way to actually cross check, the MSOs and the broadcasterslose a lot. Broadcasters do not earn much in subscription fees and aremostly dependent on advertisement revenue to cover their costs,which is not sustainable and does not offer high growth in revenuesfor broadcasters.


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The way out of this is to use a set-top box so that it will be clear howmany households are actually using cable or going for DTH where

broadcasters directly connect to consumers and can actually growrevenues with a growth in the subscriber base.

Why do Doordarshan, Zee, Star think DTH will work in

India?

Today, broadcasters believe that the market is ripe for DTH. The

prices of the dish and the set-top box have come down significantly.

Overall investments required in putting up a DTH infrastructure has

dropped and customers are also reaping the benefits of more attractive

tariffs.

The major thing that DTH operators are betting on is that the serviceis coming at a time when the government is pushing for CAS(conditional access system), which will make cable television moreexpensive, narrowing the tariff gap between DTH and cable.

Will DTH be cheaper than cable or more expensive?

DTH will be definitely more expensive than cable as it exists today.

A set-top box is a must for DTH. Earlier, when CAS made set-topbox mandatory for households, the costs between DTH and cablewould not have been too wide.

But CAS on the backburner now -- which means no set-top box (amust for DTH), the price gap between DTH and cable, will be wide.

In Oct 2002, Siticable, which is owned by Zee, said that the cost ofthe installation equipment, which includes the receiver dish and the

set-top box, would be priced at around Rs 3,900. Siticable is lookingto rope in 1 million subscribers in 15 months.

Other estimates say that digital cable set-top box may cost Rs 4,000, aDTH decoder dish is unlikely to cost less than Rs 7,000.

DTH's minimum subscription could be priced around Rs 500 permonth.


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Some reports say that an entry level DTH STB will cost about Rs7,000 (including taxes and installation cost at consumers end). A moreadvanced STB with value addedfeatures like PVR (Personal Video Recorder), PSTN connectivity,

Gamming console, channel management system, etc. may cost asmuch as Rs 15,000.

So, what's the buzz? Will DTH finally be the one that

rules?

The cable system is well entrenched in India and is showing quite

rapid growth. If DTH had come to India in 1996-97 (like Star had

originally attempted), then it could have made a significant

breakthrough.

Europe is an example of this. DTH developed there before cable andnow controls nearly 80 per cent of the total satellite televisionsubscriber base. But in US, cable rules because it came before DTH.

DTH will definitely cut into the existing cable user base. It will makethe local cable operator less important and take business away fromhim. It will give consumers greater choice.

But it is likely to be an up market premium product and most middleclass households will stick to cable.


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DTH INDUSTRY An Overview:

DTH services were first proposed in India in 1996. But they did notpass approval because there were concerns over national security and

a cultural invasion. In 1997, the government even imposed a banwhen the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB)was about to launch its DTH services in India.

Finally in 2000, DTH was allowed. The new policy required alloperators to set up earth stations in India within 12 months of gettinga license. DTH licenses in India cost $2.14 million and will be validfor 10 years. The companies offering DTH service will have to havean Indian chief and foreign equity has been capped at 49 per cent.

Today, broadcasters believe that the market is ripe for DTH. Theprices of the dish and the set top box have come down significantly.Overall investments required in putting up a DTH Infrastructure hasdropped and customers are also reaping the benefits of more attractivetariffs.

The major thing that DTH operators are betting on is that the serviceis coming at a time when the government is pushing for CAS(conditional access system), which will make cable television moreexpensive, narrowing the tariff gap between DTH and cable.

Some of the features of DTH service are as following:

DTH offers better quality picture than Cable TV.

DTH can reach remote areas where terrestrial transmission andcable TV have failed to penetrate.

DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail.

In DTH, the payments will be made directly by the subscriber tothe satellite company offering the service.

In DTH, the payments will be made directly by the subscriber tothe satellite company offering the service.

India currently has 6 major DTH service providers and a total of over5 million subscriber households.


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I. Tata group and Star network owned Tata Sky

II. Zee group owned Dish TV

III. Sun network owned SUNDIRECT DTH.

IV. Reliance owned BIG TV

V. Bharti Airtels DTH

VI. DD Direct Plus

DTH Market


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The DTH industry in India can be categorized as an OLIGOPOLY.The HHI index and the market share of firms indicate the amount ofcompetition among them.

OLIGOPOLY: Oligopoly is a Greek word which means for fewentities with the right to sell.It is a market structure in which themarket or the industry is dominated by a small number of large

players who are called oligopolist.

In this type of market the degree of market concentration is very high,with barriers to entry in the market.

Important features of Oligopoly Market:

Small number of large players dominates the market.

The oligopolists produce branded products.

There exists interdependence between firms.

Each oligopolist is aware of the actions of the others.

There are significant entry barriers in this market.

Entry barriers in Indian DTH Industry

The Indian DTH industry is a high tech industry requiring hugecapital investment. The initial cost required for setting up thecompany is very high as it requires transponders and other hi techequipment.

Following entry barriers exist in the DTH Industry.

DTH Industry is a high volume low margin industry: Any newentrant in the DTH industry has to make sure that it builds significantcustomer base as soon as possible to ensure its profits.

High set up cost of satellite, transponder and other high

techequipment: the huge initial cost of setting up the business acts as a

huge entry barrier for the new entrants.


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High Cost of the set top boxes

Long gestation period and high break even period

Multilingual & Multicultural differences in India.

High Cost of the set top boxes.

CHALLENGES

The challenges faced by the DTH Industry are:

High License Fee

Organization of taxation regime , particularly state levied entertainment

tax

Technology Neutrality as a policy needs to be consistently followed by

the Government

Content differentiation through bringing in a Self regulatory regime

and technological controls

Control of Content Cost for DTH to make it a level playing field

There exist sales and distribution challenges in India. Although India isa very big country, the trade is relatively unorganized. Products go into

tens of thousands of shops in large geographies, and getting set-top

boxes and remote controllers in good shape across the length and

breadth of India is a significant challenge

Massive logistical challenge.

COMPANY PROFILE


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TATA SKY

Introduction

Type Joint venture between Tata Group(80% stake) and STAR TV (20%stake)

Founded 2004

Headquarter Kirloskar Business Park, Bangalore,India

Industry DTH Pay TV

Products Direct broadcast satellite

Slogan Isko laga daala, toh life jingalala

Website www.TataSky.com

COMPANY ANALYSIS A Birds view of Tata

Sky:

Tata Sky launched its services pan-India in August 2006. It resulted asa joint venture between the TATA group and the STAR group. Withina short span of time it garnered a subscriber base of nearly 2.5 million(Aug 2008). It has over 147 channels to choose from. Tata Sky haslaunched an entry-level subscription plan called Super Hit Pack atRs. 99 per month with a bouquet of 53 channels.

Tata Sky recently launched Tata Sky Plus which uses the personalvideo recording (PVR) technology that allows consumers to recordlive. It is available at a price of Rs. 8999/-Tata Sky, though a late entrant created a mark as a first mover in theminds of the customers, as it was the first DTH service to beadvertised in India. Few salient features of the company are:

Strongly innovative product offerings Tata Sky has takenthe responsibility on itself to invest in more interactive services todifferentiate it from other service providers. It was the first DTHcompany in the world to offer its subscribers interactive VAS underthe umbrella


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Kick started the category advertising - Although it was the3rd player to enter the market it sought to create consumer educationabout the category with focused advertising.

Focus on heritage Tata Sky latest campaign featuressuperstar Aamir Khan. The focus of the campaign was to establish thelineage of Tata Sky and inform potential customers about Sky.

Low cost packages to increase penetration - Tata Sky hasrecently introduced a Rs 99-a-month low-value pack for 53 channelsto increase penetration of Tata Sky in smaller towns of the country.

Tata Sky has also gone a step further and enhance the service

delivery by introducing an electronic program guide (EPG) in Hindiespecially for people in small towns who are more comfortable withHindi. This is the new quality standard for Indian pay TV againstwhich other companies as well as future entrants will be judged.

Tata sky, in order to increase its rural penetration, has tied upwith ITC e-Choupal and Godrej Aadhar.

For Effective distribution Tata Sky has tied up with ITCinternational Business Division.

With the adoption of360 degree marketing campaign whichincludes television, print, outdoor, radio, on ground activities, Tatasky has been able to pursue marketing on a digital platform.

Tata Sky's satellite service brings home a whole new entertainmentexperience with its direct-to-home (DTH) television service.Subscribers can now choose from a variety of popular and new

channels and enjoy interactive features. Some of the highlights of theservice are:

Entertainment and Media channelsTata Sky offers subscribers popular channels such as STAR groupchannels, Sony, Discovery, Disney, MTV, NDTV, ESPN STARSports, National Geographic, Eenadu, TV Today, Asianet and manymore.

Digital quality service


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The service provides viewers with DVD-quality picture and CD-quality sound enhancing their viewing experience.

Television goes interactive

Ever thought of playing interactive games on your television? Orgetting weekly channel schedules right on the TV screen withsynopses of programmes? Interactive features on Tata Sky make allthis and more possible.

Features like Active STAR News, Active Newsroom and ActiveKhabar allow viewing multiple channels on a single screen. For kidsthere is a special Active Wiz kids learning service. With parentalcontrol functions it's also easy to lock channels with special PIN

numbers.

Customer service and infrastructure support

Tata Sky has set up a pan-India distribution network of popularconsumer electronic stores and mobile phone outlets that retail itshardware and prepaid recharge vouchers. The company has also tiedup with LG, ITC International Business Divisionand Indian OilCorporation to support its distribution network.

Tata Sky undertakes installation and servicing of hardware at

subscribers' homes, ensuring high levels of customer service. Thecompany has engaged a field force of qualified professionalscomplemented by multi-lingual customer service associatesadequately trained to solve all customer problems.

Vision


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Tata Sky plans to launch its DTH service with top-of-the-lineinfrastructure and revolutionize Indian entertainment through itssuperior DVD quality picture and CD quality sound. The serviceenvisions to:

Connect every television home

Empower every television viewer

Revolutionize home entertainment

Achievement

Within a span of one year, Tata Sky has:

Established itself as the fastest growing Pay TV platform inIndia. Established Tata Sky as a trusted and premium brand: achieved

87% brand awareness within the first six months of launch.

Expanded its product offering from 55 television channels at

the time of launch to over 120 channels and interactive services

(Active Games, Active Sports, Active STAR News, Active Khabar,

Active Newsroom and Active Wiz kids). Launched Active Wiz kids, the first-of-its-kind education based

interactive service in the world that teaches children through learning

games.

Set up state-of-the-art digital infrastructure including an uplink

centre in Gurgaon and three high-end 24x7 call centres in Hyderabad,

Mohali and Pune supporting 11 languages (English, Hindi, Marathi,

Gujarati, Punjabi, Malayalam, Kannada, Tamil, Telegu, Oriya and

Bengali). Expanded its distribution network from 300 towns and 10,000

dealers at the Time of launch to 4,500 towns and 30,000 dealers

across the country and operating through 245 exclusive distributors.

Simultaneously trained 5000 people in a span of 6 months across 180

cities (the largest corporate training initiative in India).

Become the gold standard in customer service: achieved globally best-

in-class (durable and telecom industries) customer satisfaction scores.


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Introduced first-time ever interactive television promotions

across popular television channels including Sony (Indian Idol

highlights on-demand), STAR.

Current Situation - SWOT Analysis

Milestone

2005

TATA - STAR DTH venture signs lease agreement with ISRO(IndianSpace research organization)

TATA - STAR DTH Venture Receives Ministry's Clearance

2006

Tata Sky selects NDS systems to create India's most advanceddigital and interactive DTH service

Tata Sky launches ACTVE WIZKIDS - a unique edutainment

service

Tata Sky launches pay-per-view service - SHOWCASE Tata Sky Launches ACTVE SPORTS on ESPN STAR Sports

Television finally becomes interactive with Tata Sky

Tata Sky Satellite Television Service Launches Across the

Country

Zee-Turner channels now on Tata Sky

2007

Tata Sky introduces three new interactive services: ActiveDarsan, Active Learning and Active Stories

Tata Sky expands offering to 140 channels

Tata Sky crosses 1 million marks in record time

Unparalleled World Cup cricket viewing experience on Tata Sky

Tata Sky launches three new channel packages

Watch ICC World Cup on Tata Sky with Hrithik Roshan

Tata Sky offers 5 months of free viewing


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SWOT Analysis

1. Strengths

1. Leveraging on brand TATA and High brand recall

2. Technological expertise with Newscorps DTH arm Sky

3. Superior Picture quality4. Leads in introducing new packages & Services

5. Customer service

6. Rural penetration through ITC E-Choupal and Godrej

Aadhar

7. Interactive channels and program guides

8. Innovative Product offering Tata Sky Plus

2. Weaknesses

1.Second Mover after Dish TV who captured Market Share

2.Cannot match free service like DD

3.Currently Does not offer free Set Top Box like Dish TV

4.Litigation due to issues related to sports channels which it lost5.Dependency on broadcaster and had issues with Sun TV

3. Opportunities

1. Larger disposable incomes with India

2. Tapping niche markets with Better service and Product offering

3. Expansion of distribution network through exclusive store


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4. Interactive advertising Tie up of with Samsung

5. Increase in number of TVs sold

6. Increase in the geographical boundaries with Rural Market

untapped7. Growing demand for quality of service in the form of DTH over

Cable

8. CAS being made Compulsory would encourage switch

9. Value Added Services are gaining steam.

4. Threats

1. IPTV provides superior technology if implemented

2. Cable Set top Boxes provide easy switching due to negligible

switching costs

3. Increasing Competition internally

4. Dependency on CPE suppliers to some extent

5. High dependence for transponders on ISRO

6. Dependency on broadcasters for their channel content and thus

increase in cost

7. Videocon may enter DTH by building its own set top boxes.

8. No Exclusivity in Content and Rule of Must Carry

9. Cap on Investment (20%)

10. Interoperability Regulations

11. Cap on foreign Investment (49%)


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Product Matrix

TATA Skys target customers include various strata of the society,with different service packages available to each one. To improve its

performance in the competitive DTH market, TATA Sky managementshould assess its brand positioning among its target segment byestablishing a distinctive image for the company compared tocompeting companies.

But these initiatives presents challenges, which TATA Sky iscurrently facing squeezed by rising costs, sporadic nature of demand,and relentless downward pricing pressure due to competition. Addingto it, slackening of demand, and higher interest rates are not welcomesigns for it. With this in mind, TATA Sky should try to be rapid-pacedand highly competitive.

To counter these challenges and still be profitable, we have tried tosuggest various strategies based on what will suit demands in theIndian market and its consumer behaviour to increase TATA Sky

market share.

Current situation

Tata Sky crossed the two million connections mark in a periodof 20 months, thus retaining its position as the fastest growingdirect-to-home serviceprovider across the globe.

The marketing budget that TATA Sky begun with was 15% ofsales. This included around 5% for advertisements, 7% discounts and

promotions and 1% sponsorships.

Currently TATA Sky has roped in Aamir Khan as its brandambassador. Aamir Khan would feature in all TATA Sky brand and

product communication, including advertisements in TV, print andradio.


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Further, tie ups with ITC E-Choupal and Godrej Aadhar giveit wider rural reach. Also for its distribution, TATA Sky has a tie upwith ITC International Business Division.

The 24X7 guru.com has joined hands with TATA Sky toprovide content for Active Learning.

Tata Sky has adopted a 360 degree marketing campaignapproach that encapsulates television, print, outdoor and radio alongwith on-ground activities and marketing on the digital platform.

Tata Sky plans tie-ups with Sony Pictures, Fox for content- Payper View service for exclusive events.

1. Product

Tata Sky launches itself as a DTH services requiring a Dish, A set topbox and network access card per television. Later variant likeCommunity dish for entire building were launched. Latest the TataSky Plus with Personal Video Recording technology has beenlaunched. Various services provided by

TATA Sky include:

Active Services

Active Cooking

Active Stories

Active Newsroom

Active Darshan

Active WizKids

Active Sports

Active Learning

Active Games

Active Astrology


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Parental Control

Search and Scan Banner

Guide (including Hindi Display)

Customer Service- 24 x 7 help. Support in 11 languages

Factors Affecting Consumer buying Behaviours:

1. Price: Tata Sky has offered competitive pricing but has been on the

higher end and its due to promotional campaigns it has added inincentives leading to increase in customer base. In search of neweraudiences in smaller towns, DTH operator Tata Sky is introducing anew Rs 99 package Super Hit Pack

2. Customer Services: Tata sky offers an excellent website anddedicated customer line. They have the concept of registered mobilenumber providing easy communication. But their Customer servicelines are always busy and the waiting period is usually very long. Thismay be an irritant for existing customers.

3. Reception: The reception is usually excellent in comparison toexisting cable TV. But during monsoons and Cloudy days they areaffected. The rate of signal distortion is more for Community dishesin comparison to Individual dishes. This technical problem should besorted.

4. Program Choices: After litigations, Tata sky is able to offer hugebouquet of channels but it is still less compared to the Cable TV. They

should ensure extensive program choices to induce switching fromCable to DTH

5. New Technology: Tata sky Plus is an initiative in this direction.Various services under Active are part of this Technology game.Being a interactive and dynamic offering would increase its appeal.

6. Technical Support: Technical support system of Tata sky iswell establishes. If a 24 hrs limit can be provided for all complaints

and work on holidays when people are generally home could be soldas a USP.


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Tata Sky as a product has evolved from the time to inception.

Further to enhance the product, newservices and technologies can be imbibed like:

1. Common Dish per house for Multiple Television sets

2. Combined Product with Television - Rural Areas , especially andNiche Segment Targeting if Combined with LCDs

3. Connectivity with otherdigital Monitors like Laptops for

Commercial Usage

4. Guide can be displayed in Multiple Regional Languages

5. Voice over in Multiple Languages (Currently limited availability infor some programs)

6. Interactive Video Games (with consol)

7. Inclusion of Radio Reception. Development ofVisual Radio service.

8. Variety in Movie Listing with Bollywood, Hollywood and RegionalChannels

9. Special channels for Songs Request like Jukebox could be launched

10. Stock Market related interactive service on Active


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2. Price

Competition has increased may fold with completion providingfreebies and slashing prices. The following price related strategiescould be adopted, which may lead to a short term loss but a mediumterm break even and profit:

1. Free Set Top: Following the line of Dish TV, Set top Boxes can begiven free while ensuring lock in by providing base pack free forlimited time duration, thus inducing update to next level.

2. Lock in of 1 year: Ensure long term lock ins by providing incentivesfor pre payment of long term charges. Continue with current strategyof providing 2 months free on payment of 10 months services.

3. Multiple Connections: Provide discounts for consumers buyingsecond Tata Sky Connection (up to 50% off)

4. Encourage References: Provide discounts on Monthly charges if

reference from existing consumer becomes a new customer.

5. Regional Disparity: Provide free regional packs in local areas toensure switch from Cable TV to DTH service, i.e. provide free southJumbo pack for customers in all Southern States.

6. Community Dish: Provide Incentives in the form of Free Monthscharges for first 3-6 months and reduce the Installation charges perflat.

7. Payment Options: Allow multiple points of payment, ensuringtimely payment and convenience to the customer Credit Cardthrough Website (implemented), Pre Paid cards from Retail shops to

be activated using Telephone (Implemeneted) and Drop Boxes atSocieties.

8. Postpaid: Some clients depending upon few background checkcriteria can be given Billing service i.e. Payment at end of Month


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3. Place

Clearly, there is a lot of scope of increase in the number of customersacross all the states. Looking at the current distribution system that

Tata Sky has adopted:

States Share (%)Maharashtra 12.1

Gujurat 10.5

Karnataka 7.2

Uttar Pradesh 6.9

Tamil Nadu 6.6Punjab 6.4

Orrisa 5.3

West Bengal 4.7

Kerala 4.6

Andra Pradesh 4.6

Rajastan 4.5

Assam 4.0

Madhya Pradesh 3.8

Others 18.8

Total 100


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Including the local cable operators as distributors would be an

extremely useful way of reaching out to the target market:

a. Staff of cable operators be made the distributors for Tata Sky

(familiarity with people)b. All distributors be given a status of Tata Sky employees

c. Attractive options be given to them to become distributors

Another focus could be the rural market. A snapshot of the ruralmarket:

a. 199 million total household in Indiab. 119 million (60% of total house holds) TV households

c. 50 million are having Cable

d. 55 million TV sets in rural area

e. Rural TV households growing by 3-4 million each year.

f. Only 2-3 % of rural household have access to Cable

g. Growing focus towards more satellite channels


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Strategies for the rural sector can be:

a. Customizing offering

b. Combination of various national channels with regional channels

c. Educational Package

d. Appointing the village head as Distributor and the promoter as the

villagers tend to listen to village head

e. This can be supplemented by giving the connection to village head free

for initial period

Another avenue that can be explored is Mini Theatres(Class B towns)

a. Setting up Mini Theatres in rural sector to promote the Product

b. Events like Cricket matches, movies etc.

c. These Mini Theatres can be the Point of Sales for Tata Sky


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4. Promotion

The promotional strategies suggested are:

1. Packages forSpecial Events like the cricket World Cup

2. Targeting Tata employees could be a useful way PR promoting theproduct

3. Give the option ofinstalments and other promotional schemes tothe new users

4. Tie up with real estate developers to target the new constructions

a. The number of old buildings being demolished and beingreconstructed are also on the rise. This could be a major target for

promotions

5. Door to door marketing should be used to heighten the awarenesslevels 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 forplacing Hoardings of Tata Sky Ads:

a. Finding the strategic building in the locality

b. Consideration can be in form of cash payment to the

Housing society

c. Providing free connections to Households in these

buildings

8. Another new avenue that can be explored is the railway stations:

a. Posters on railway station roofs

b. Tickers at Major suburban Railway stations

9. Use of Internet- Applications which involve sharing of videos on howone consumes TV, benefits of DTH over cable TV, etc. across social

networking sites like Orkut, ibibo, etc.


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10. 'Ek-pe-Teen and Do-pe-Paanch' the offer entails three months offree subscription on the purchase of one connection, and five monthsof free subscription on purchase of two or more connections.

11. Tata Sky launched an interactive game quiz featured around MSDhoni to coincide with the Twenty20 World Cup. In the past, theDTH operator has been test-piloting feature by running severalcontests around programmes and the interactive features were madeavailable to its customers.


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MARKET SEGMENTATION

Geographic segmentationIn terms of geographical location, North India and Western Indiatogether contribute over 8 million DTH subscribers, while thesouthern market contributes 3 million. The states of Maharashtra,Goa, Punjab, Uttar Pradesh, and Rajasthan are the leaders in DTHsubscription, contributing over 6.5 million DTH connections to the

overall base.

Urban and Rural:

In order to cater to the diverse taste and needs of both urban and ruralpeople operators provide entirely different range of services andofferings. In rural areas, fleet of vans for demos, installation as well asselling hardware and pre-paid vouchers are being used. Most playersare building up their subscriber base by targeting viewers outside the

big cities, which suggests that about 60 per cent of DTH subscribers

reside in rural areas and towns with a population under a million.

Region and States:

DTH service providers give special offers where regional and sportschannels are viewed the most. Silver subscription available in Tamil

Nadu, Kerala Karnataka & Pondicherry only, ultimate sports bonanzaoffer - Rs 2490 with 12 Months of Silver subscription available inAndhra Pradesh only.


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Demographic segmentation

AGE and GENDER:

Most of the players in DTH offer niche channels to create a uniqueand exciting offering for its viewers of every age and gender segment.

DTH industry mainly concentrates on women who dont like missingtheir daily soap and news more ever women are able to learn Englishspeaking which is a very special feature of DTH. DTH alsoconcentrates on children also by providing them games, dictionary,some discovery videos specially inbuilt, maths, and science andsocial knowledge. It also focuses on old people as it has updatedvideos of various holy and religious places. Example- Dish TVrecently launched Children Films Festival with a bouquet of over 25super-hit films across various categories priced at Rs. 25/- per movie.

thus targeting the children segment. Besides this value added serviceslike Games Active, Bhakti active services etc carters to needs ofcustomers from various age groups and gender.

INCOME:

DTH service provider gives various recharge options to consumeraccording to the income like silver pack, golden pack, diamond packetc.

Behavioural Segmentation

OCCASIONS:

DTH operators come out with new offers of channels or new buyerschemes at relatively cheaper rates on occasions of festivals or majorsports events. For example it offers benefits to customers like: In acricket match choosing the language of the commentary, cameraangles, know player statistics and watch match highlights at our will


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Porters5 forces

orces

Bargaining Power of Supplier HighDTH relies on three major suppliers: Customer Premise Equipment Satellite dish, Set top box and Access card, Ku Band Transponder andcontent. Bargaining power of DTH operator with CPE supplier hasincreased due to supply. Transponder is provided by Astrix, ISROhence dependency exists and due to no regulations in channel pricing,

DTH operators are at mercy of Broadcasters.

Bargaining Power of Buyer-High

Consumer has the power to choose in this industry with variety.Unless players can differentiate against each other, the market shallremain mostly homogeneous. Customers will have high bargaining

power and will beinfluenced by costs versus services.

Threat of Substitutes- Medium

DTH faces major competition from Terrestrial, Cable & IPTV.

Doordarshan is worlds largest Terrestrial broadcaster with over1400 transmitters and covering 88% of India geographical area. Theyoffer Digital service in collaboration with BBC resources. This widereach and low cost approach are offset by its lack of attractive content.


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Cable TVoperates in 2 modes: CASwhich requiresseparate set top box and Non Addressable system. The cost variesfrom Rs. 100 Rs. 350 to customers depending upon location. Due toits phenomenal reach, there is bound to be a resistance from Local

Cable operators.

IPTVis service where television signals are digitally sent overTelecommunications line. MTNL & BSNL plan to tap this line. Evenwith strict regulations (not yet enforced) it is a considerable threat dueto its newlevel of interactivity.

Threat of New Entrants- Low

With 7 players in the DTH space, threat of new entrants is relatively

low due to enough competition. Getting a license is relatively low butissues related to pricing of CPE and getting required transponders.Also first mover advantage exists in this industry.

Competitive Rivalry- Medium

With 7 players established in the market inter firm rivalry is intense.

DD offers free service but has a very small bouquet of channels. DishTV got first movers advantage and has a highest market share in themarket. The new players have very big brand names and have startedwith extensive publicity. There is also competition with respect toacquiring content. There are also regional discrepancies.


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DTH Industry Five Forces Model

Threat of New

Entrant

LOW

DTH market is

alread crowded with

Threat of Substitutes

VERY HIGH

Cable TV Very High

IPTV High

Terrestial - Low

Bargaining power of

Suppliers

VERY HIGH

Transponders Very

High

CPE Suppliers Low

Bargaining power of

Buyers

HIGH

Lots of opinion &

substitutes

Price sensitive buyer

Inter Firm Rivalry

VERY HIGH

Price Wars


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PRODUCT COMPARISON

1. TATA SKY

Tata Sky Features:

Joint venture with International DTH Brand-Sky, famous for itsexquisite technology.

Uniform volume level across all channels

Stable set-top-box with less bugs or issues

Provides good Customer service and after-sales support

Exclusive access to some authentic international channels likeBBC entertainment, Ceebebies Tata Sky Product Review Tata Skyhas made constant innovation and technology enhancements whichare the main reasons that the company could provide a very stable settop box.

As a result its customers have to worry less about themaintenance issues regarding the Set-Top Box.

Another important feature which can be of great value to thecustomer is - the uniform volume level across all channels.

This feature ensures that the customers dont have to wastetime on adjusting the volume levels as they surf the channels.

Tata Sky has customized its packages which enable thecustomer to choose and pay for onlythose channels which theyrequire.

Tata Sky provides excellent picture/audio quality.

Tata Sky also provides installation services within 24 hours ofthe purchase of the product


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2. RELIANCE BIG TV

Reliance BIG TV Features:

Reliance Big TV uses MPEG-4 technology which can carrymore number of channels

Good picture and audio quality

The company makes its packages cost effective by providinglots of channels in base pack itself.

It also provides a feature of viewing 12 channels at a time onsingle screen

Good performance even during the monsoon season.Reliance Big TV Product Review

Reliance BIG TV is a cost-effective service whose basepackage comes with large number of channels.

The customers get to select regional package based on theirlanguage/regional/cultural preferences.

This entitles the customer to get an option to make apackage having base package and any one of the regionallanguages like kannada, malayalam, telugu, hindi/Punjabior oriya/Bengali Packages

. The set-top box of Big TV is little unstable. This acts as adisadvantage for the customers

For the installation of the set-top box the customer has towait for 3-4 days from the time of Purchase


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3. AIRTEL DIGITAL TV

Airtel Digital TV Features:

Airtel digital tv has good DVD Quality picture and CD quality

It provides a universal remote which works both with TV andSet top box

One of the major features of Airtel digital is that it exclusivelyoffers World-space satellite radio channels.

The set-top box provided by Airtel Digital is Sleek and stylish

It provides better connectivity as provides a larger dish antenna

Airtel Digital TV Product Review:

Although Airtel Digital is a late entrant in DTH space it has

come up with a completely flawless DVD quality picture and sound.

At the time when the other players were providing differentremotes for set top box and television , Digital Tv has completelyundone that issue by coming up with universal remote.

It provides a sleek and stylish looking set top box.

It also provides exclusive access to World-space channels

While Airtel Digital tried to differentiate its product from therest the high cost associated with it acted as a big negative aspect forthe company

The are many other players in the market providing lots ofchannels at a lower price, Digital TV by Airtel stands out as a lotcostlier.


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Few Inferences from the above comparison:

Tata Sky is the only DTH which provides uniform volume levelacross channels.

Tata Sky and Big TV are better choice for rainy areas becauseof bigger antenna size.

Incase the customer is very selective about channels, Tata Skyis the best fit as it has lots of small packages and add-on packages sothat the customers can customize the package as per their needs.

To start enjoying DTH experience from today, go for Tata Sky

because thats the only DTH which will be delivered and installed thesame day after you place the order

.


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PRODUCT DIFFERENTIATION

Tata Sky launches itself as a DTH services requiring a Dish, A set topbox and network access card per television.

Tata Sky as a product provides to its customers a large bouquet ofchannels at different pricing packages. These packages are formedaccording to ensure user convenience. Customers can select any of thevarious attractive package of channels available.

Thus Tata Sky has all features to compete well with the existing

players in the market. However Tata sky recently launched a newvariant called Tata Sky +. This product contained some additionalfeatures over the original Tata Sky. Tata Sky+ is a premium set-top

box with a personal video recorder that allows you to record up to 45hours of live TV. Tata Sky+ gives you the power to record one

program while watching another, pause a live telecast and evenrewind a TV program that you are watching. Thus Tata sky gained anedge over its customers by adapting Product Differentiation. To

protect its existing customer base using Tata Sky, it also introduced a

special offer of up gradation to the premium product at reasonablecost.


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For its new customer the cost of Tata Sky Plus is given as below:

Tata Sky Plus Cost

Rs 8,999 for the hardware (Digicomp) + Rs 1,000 installation &activation charges + Rs 50 per month Tata Sky+ usage fees + Cost ofthe channel package.In order to stay ahead of its competitors, TataSky has always followed an aggressive promotion strategy. WhenTata Sky was about to be launched, it earmarked approximately Rs1.5 billion for marketing the DTH service across all platforms,traditional and non-traditional.

They invested not only in the pilot MDU (multi-dwelling unit)projects in some cities of Indiabut also planned to educate an averageIndian about the advantages of a DTH service supported by the Tatasand Star.

A major part of the Rs 1.5 billion marketing budget was planned to bespent during the festival season in India, starting late September andlasting till Christmas-New Year, when consumers have a tendency tosplurge on goodies.

Meanwhile, apart from Zee Turner family of channels, most othermajor TV channels found a place on the Tata Sky platform


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OBJECTIVES OF THE PROJECT

It is obvious that every task has some objectives. My objectivesbehind working on this project are:

I. Primary Objective

The main objective of this project is making the consumeraware of His/Her rights.

To understand penetration of various DTH and cableoperators in Kalwa & Thane

II. Secondary Objectives

To understand preferences of TV Viewers of Kalwa & Thaneregarding DTH and Cable Services

To understand purchase criteria of customers for selectingDTH or Cable Services

To understand competition between various players

To Find Out Opportunity & Threats In Indian DTH Industry.

To Study The Reason Behind Growth Of DTH Market.


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RESEARCH METHODOLOGY

1. ORIGIN & FORMULATION OF RESEARCH

OBJECTIVE

It is the first and the most important stage in applied research. Theobjective of the project is to know the consumer awareness is makingthe consumer aware of His/Her rights. It means that consumers not orare aware of products or services, its characteristics and the othermarketing P's (place to buy, price, and promotion)

.At this stage, I will try to define following one thing;

Time & Space boundaries:-In this project, the time period is 1st January, 2008 to 5th march,2008. The study is to be carried out part timely.

2. FORMULATING OF RESEARCH

DESIGNResearch design specifies the methods and procedures for conductinga particular study.

Research design is a plan, structure and strategy of investigation so asto obtain answer to the problem.

Research designs are mainly three types.

Exploratory Research Design:

Exploratory research design focuses on discovery of ideas andgenerally is based on secondary data.

Descriptive Research Design:

Descriptive research is more rigid than exploratory research andseeks to describe users of a product, determine the proportion of the

population that uses a product, or predict future demand for a product.


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Descriptive research study is undertaken when the researcherwants to know the characteristics of certain groups; gender; educationlevel; income; occupation etc.

Causal Research DesignCausal research is undertaking when the researcher want to studythe cause and effect relationships between two or more variables. Itaccomplishes this goal through laboratory and field experiments. I amapplying Descriptive Research Design; it means a type of conclusiveresearch that has its major objective descriptive of something. In thisDescriptive research, I use longitudinal research to Study my project,as I m collect one time information from the unknown sample.

3. SELECTION OF SOURCES OF DATA

The choice of the source of data should be according to the objectiveand suitability to the information required. There can be two mainclassifications of data sources.

Primary data

Secondary data

Primary data means the data, which is collected by the researchfor the first time; in this project I am using this method by conductinga field survey.

The secondary data is collected from article from the internetsite. The detail regarding secondary data is mentioning in the

bibliography.

4. DECISION ON DATA COLLECTION

TECHNIQUES

Once the decision in the favors of collection of primary data is taken,the researcher has to decide the made of collecting data.There are two modes of collecting data.

Observation Method


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Survey Method

To collect information through the survey method, I had to select thetool through which I would gather information one choose the

questionnaire.

I am using survey method as the data collection form. The data werecollected through survey method by personal interview.

Hence Data collection tool is Questionnaire.

PERSONAL SURVEYI am using this survey because of its suitability to my project, personal

survey is suitable to my research and I will get an opportunity to meet

consumer face to face.

The description regarding designs the questionnaire is as follows:-

Types of information to be collected:

I have decided to collect the information regarding the consumerawareness on tata sky.

Types of question:

I have used open-ended, Rating, Dichotomous (yes/no), Single choice,Scaling and multiple choice question in questionnaire

Phrasing question:I have used simple language while formulation questionnaire so that

the respondents do not confused.

Order of question:

The simple questions were put in the starting to make the respondentfamiliar with the subject and to gain his interest to fill up the

questionnaire.


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Layout of questionnaire:

I have prepared the questionnaire which can be read and interpretedeasily. The questionnaire as prepared using the front Times New

Roman with front size 14 with 1.5 line spacing.

5. SAMPLE DESIGNLooking at the vast geographic area of the Thane city, I have selectedthe simple random sampling method for conducting survey. (convincemethod to access easily.The sampling method that I will be choosing is the probability. Thesample size for the survey is 60 (20 from each section)

6. ORGANIZING AND CONDUCTING

THE FIELD SURVEY

After preparing the questionnaire and taking the sample decisionthe next step is to organize and conduct field survey. There are 2aspect related to survey which have to be considered. .

Interviewing

Supervision of field work

Interviewing:- As I am collecting the information from thepeople. I am using field survey for collect the data, it is very necessaryto supervise the fieldwork as the time providing. At some place I gotresponses after 4 to 5 visit as in starting.

But this also helped me to remove my fear of meeting people.

7. ANALYZING THE COLLECTED DATAOnce the field survey is over and the questionnaire have beenreceived, the next task is to aggregate the data in to a meaningfulmanner to bring out the main characteristics of the data collection. Itis necessary to interpretation of data because faulty and improve dataanalysis will not give proper insight into the research object.


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This phase is divided in three as below;

Edition

The first task in data processing is edition. It is the process by whichthe data are prepared for subsequent code after review ofquestionnaire with the object.

Coding

It is the process of classifying the answer to question into meaningfulcategories. The symbol used to indicate these categories are codewhich is systematic.

Tabulation

Tabulation comprises of sorting of the data into different categoriesand counting the number of cases that belong to easy categories. Ihave used different types of tabulation and frequency distributions anddifferent types of graphs for analyzing the data collected for and usedfor the percentage method and CHI square test for findings.

8. PREPARING THE RESEARCH REPORT

Ihave used charts and tables are prepared using different colors andtexture so that the finding & analysis can be interpreted with lesseffort. The typical content of the research report are formulated in astandard format which is as follow:-

Executive summary

Introduction of industry and company

Objective of the project

Research methodology

Limitation of the project

Analysis

Findings of research

Bibliography

Annexure


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Limitations

The sampling plan was based on non-probability method and no

scientific methods were adopted.

Data collected may not be 100 % reliable.

The universe selection and sample size is not sufficient to

represent the whole population.

Due to time constraint the survey has been done on the basis of

convenience.

The data is been restricted to only Kharegaon, Manisha Nagar,and Karwalo Nagar.


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ANALYSIS OF DATA

The analysis is required to come on any conclusion. This analysis ismade from the data collected from the Questionnaire, which is fillingup by various consumers who are aware and not aware about TATASKY.

Q-1. Do you watch TV?

About asking this question I got the result as follow.

ANSWER RESPONDENT PERCENTAGE

Yes 95 95

No 5 5

0

10

2030

40

50

60

70

80

90

100

Yes No

Yes

No

So from this survey I have found that 95% of people are watching TV

and just 5% of people are not watching TV.


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Q-2 How frequently you watch the T.V.?


ANSWER RESPONDENT PERCENTAGE

Regularly 45 45

Rarely 21 21

Once in week 21 21

Twice in week 13 13

0

5

10

15

20

25

3035

40

45

Regularly Rarely Once in

week

Twice in

week

Regularly

Rarely

Once in week

Twice in week

So from this survey I have found that 45% of people watch TVregularly and 21% of people watch TV rarely. Whereas 21% & 13%of people watch TV Once in week & Twice in week respectively.


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Q.3 Which connection you use for your entertainment?


Answer Respondent Percentage

DTH 40 40

Doordarshan 5 5

Cable Connection 45 45

Internet 5 5

Other 5 5

0

5

10

15

20

25

30

35

40

45

DTH Doordarshan Cable

Connection

Internet Any Other

DTH

Doordarshan

Cable Connection

Internet

Any Other

From this survey I have found that 45% of respondents prefer Cable

Connection but 5% of respondents still prefer Doordarshan.


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Q.4 Which DTH connection do you have?


DTH Services Percentage

Tata Sky 42

Dish TV 35

Big TV 13

Videocon D2H 5

Sun Direct 5

0

510

1520

25

3035

4045

Tata Sky Dish TV Big TV Videocon

D2H

Sun Direct

Tata SkyDish TV

Big TV

Videocon D2H

Sun Direct

Interpretation

Tata Sky is the market leader with 42% of market share, followed byDish TV and Big TV with 35% & 13% of market share respectively.


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Q-5. From which sources you comes to know about Tata

Sky ?


SOURCES PERCENTAGE OF USERS

Advertisement 71

Hoardings 12

Newspaper 2

Mouth Publicity 15

0

10

20

30

40

50

60

70

80

Advertisement Hoardings Newspaper Mouth

Publicity

Advertisement

Hoardings

Newspaper

Mouth Publicity

Thus by these analysis of Tata Sky, I have found that 71% of peopleknow about the Tata Sky company through an Advertisement, and12% by Hoarding or Banner. There 15% of people is havingawareness by Mouth publicity or communicating with other people.

Q.6 Where did you obtain/ take the connection from?


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About asking this question I got the results as follows

LOCATION PERCENTAGE OF USER

Company Shop 50

Exclusive dealers 25

Vendor shop 25

0

10

20

30

40

50

Company

Shop

Exclusive

dealers

Vendor

shop

Company Shop

Exclusive dealers

Vendor shop

As people are more trusted towards company shop so they would liketo get connection from company shop. And survey also tells that 50%connection was taken from the company shop while 25% ofconnections were taken from exclusive dealers.

Some people are taking connection from retailers or Vendor shops;they believe that from retailers they will get selected numbers. Also Ihave seen in too many cases that they were got the selected numbersfrom the retailers which were not found in the company shop.

Q.7 .How long did it take for your service to get activated and

function?


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About asking this question I got the results as follows

0

10

20

30

40

50

60

70

80

02-06 h 06-12h 12-24h Above 24 Not Sure

02-06 h

06-12h

12-24h

Above 24

Not Sure

Most of the services has been activated within 02-06 hours of purchasing. Butin case of late submission of documents or misplaced of documents it might

take more then 12 hours. Research also suggests that 74% of services hadbeen activated within 02-06 hours of purchased and it was functionalproperly. And only 19% were taken more than 06 but less than 12 hours toget functional. Whiles as I said that sometimes documents might bemisplaced so might take more time. And that 4% suggest that because ofmisplaced of documents the activation might be delayed, and 3% ofcustomers was not sure or they forgot about there activation period.

Q.8 If yes, then for what period you have used the Tata

Sky service?

TIME IN HOUR PERCENTAGE OF USER

02-06 74

06-12 19

12-24 04

Above 24 00

Not sure 03


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About asking this question I got the result as follow

0

5

10

15

20

25

30

35

40

Less then

month

1month to

6 months

Up to year Above

years

Less then month

1month to 6 months

Up to yearAbove years

As per these analysis one think which is clear about Tata Sky that

there out 58 customer 38 customers are using these service from morethan year or we can say 3-4 years, and 16 customers are using TataSky service up to year, thus the Tata Sky has maintain there goodservice against the customers, thats why the customers prefer thisBrand.

Q.9 Rate the following parameter of Tata sky to other

service provider?

About asking this question I got the results as follows.

PERIOD RESPONDENT RESPONDENT

Less then month 00

1month to 6 months 04

Up to year 16

Above years 38


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PERCENTAGE OF USERS

PARAMETERS Very

Good

Good Average Poor Very

Poor

Coverage 98 02

Value Added

Services

55 40 05

Customer Services 90 08 02

Brand Image 90 10

Tariffs &

Schemes

65 25 10


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01020

30405060708090

100

Coverage Value

Added

Services

Customer

Services

Brand

Image

Tariffs &

Schemes

Coverage

Value Added Services

Customer Services

Brand Image

Tariffs & Schemes

In case of coverage, Tata sky customers satisfaction is highest. There98% of customers finds that the coverage or network is very good ofTata sky, and just 2% of users of Tata sky think that the coverage forTata Sky is good.

In case of Value added service of Tata sky 55% of customers findsthat the Value added service is very good of Tata sky , 40% ofcustomers find that the Tata sky is providing a good Value addedservice and just 5% of users of Tata sky think that the Value addedservice for Tata sky is Average.


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In case of Customer service of Tata sky 90% of customers finds thatthe Customer service is very good of Tata Sky, 8% of customers findthat the Tata sky is providing a good Customer service and just 2% ofusers of Tata sky think that the Customer service for Tata sky is

Average.

In case of Brand Image, Tata sky customers satisfaction is highest.There 90% of customers finds that the Brand Image is very good ofTata sky , and 10% of users of Tata sky think that the Brand Imagefor Tata sky is good.

In case of Tariffs & Schemes of Tata sky 65% of customersfinds that the Tariffs & Schemes is very good of Tata sky , 25% of

customers find that the Tata sky is providing a good Tariffs &Schemes and 10% of users of Tata sky think that the Tariffs &Schemes for Tata sky is Average.Q.10 Whats the reasons for which you are not using

Tata Sky?

About asking this question I got the results as follows.

REASONS PERCENTAGE OF USERS

Poor Service 02

Expensive Service 58

Poor Network 00

Other Operator 40


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0

10

20

30

40

50

60

Poor

Service

Expensive

Service

Poor

Network

Other

Operator

Poor Service

Expensive Service

Poor Network

Other Operator

Thus by this survey or research I have found some negative points of TataSky that its service is little bit expensive then other operating service inThane. There here another drawback is that companys like Airtel, Relianceand Dish TV is also providing good service in the market, so 40% ofcustomers are grab by other operating service.

Findings On survey

Maximum Person keep Tata Sky kit and recharge facility.

Awareness of new connection and new rechargeoffers of Tata Sky is similar to Dish TV and AirtelDigital.

There is a communication gap between the company and thecustomers. This doesnt seem to be the case with other DTH

providers.

Availability of vouchers lie between price ranges from Rs100 to 1000.

Availability of voucher is one of the major issues amongTata Sky dealers, approximately 40% of persons in Kharegaon,Manisha Nagar, and Karwalo Nagar facing this problem. For smallamount of recharge they use vouchers, but use other modes ofrecharge for large amounts. Due to the shortage of stock they are not

able to retain their customer for long time.


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EPRS system seems to be the most troublesome rechargeoption for Dish TV.

Customer care service is considered to be very poor as dealers

often complain of problems in recharge process managed by Tata Sky.

Many persons say they recommend Tata Sky because they getthe installation done much faster in comparison to Dish TV &competitors with Tata Sky, it takes up to 2-6 hrs.

The company have been able to keep up the promises made tothe customers, like installation and activation commitments are oftennot met.

Connect between the Call Center and the Service center is good.

Customer Care is reachable on Toll-Free easily, waiting time iscomparatively less on toll-free numbers Dish TV changes the price plans and offers more frequently ascompared to other DTH providers. This along with impropercommunication confuses customers which beings down the consumersatisfaction levels.

There has been a growing trend of Dish TV customers anddealers being shifting to other major brands like Tata Sky and AirtelDigital as they provide better value added services like after saleservice, recharge facilities and customer care.

Other DTH brand provides best support facility, quick rechargeand installation facility, which provides them with the competitiveadvantage.

Good thing which i found in Dish TV according to dealerfeedback is offer, dealers and customer like their but same time theyshows un satisfaction with frequent changes in offer.

Specific Comments By customers:-

a) Due to the bad EPRS system of Dish TV, they are not able torecharge higher amount and as they face such problems frequently,they try to recommend other DTH brands to their customers.

b) The dealers mostly prefer to sell Tata Sky and Airtel becausetheir installation system is very fast. Also if dealers are committed to


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their customers regarding any specific time limit, the other DTHbrands never let them feel down, which helps the dealers to keep goodrelation with their customers.

c) The dealers generally sell recharge vouchers of Tata sky worthRs 1lac per month, but in case of Dish TV they only sell vouchersworth Rs 5-10k. The main reason behind it is lack of availability andalso poor EPRS system. It took long time to recharge. So dealers pushits customer towards Tata sky and Airtel Digital.

d) There has been problem on the behalf of the distributers front,distributer have been setting there own price and negotiating

according, this has been matter of loss for the dealers in most the casethe profit got is not up to the mark.

RECOMMEDATIONS

The following price related strategies could be adopted, which maylead to a short term loss but a medium term break even and profit.

1) Increase awareness: Since there is lack in communication channel, it should be

tackled with care and dealers should be constantly madeaware about the offers and new plans through meetingswith company executives at regular intervals.

2) Improve processes and techniques: In order to make recharge or activation process more

transparent and user friendly, the EPRS technology needsto be upgraded consistently.

3) Give more value added services: Since Tata sky and Airtel have clear edge over value added

services like free installation DTH needs to mend itsstrategy to face these competition. One way of doing thiswould be to offer at least the same service as these twocompetitors are trying to eat the market share.


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4) Improvement in after Sales Services:Arrangeproper training for customer care executives asDish TV lacks proper after sale service.

5) Standardized the price plans and avoid frequencychanging

Frequent changes in price and offers is proving no good forDish TV as it is in way frustrates the customers withchanges in offers without being informed about it. So DishTV needs to watch out for this and should pre inform thecustomers about the offers and changes well in advance.This in a way, I feel would create more brand loyalty andpreference.

6) Voucher Availability Make proper channel of Distribution of voucher.

7) Visibility

Danglers create more impact on customer mind, it alwaysvisible and promote offer and help to recall brandresonance.

Also,

Free Set Top: Set top Boxes can be given free while ensuringlock in by providing base pack free for limited time duration, thusinducing update to next level.

Multiple Connections: Provide discounts for consumers buyingsecond Tata Sky Connection (up to 50% off)

Encourage References: Provide discounts on Monthly chargesif a reference from existing consumer becomes a new customer.

Payment Options: Allow multiple points of payment, ensuringtimely payment and convenience to the customer Credit Card through

Website, Pre Paid cards from Retail shops to be activated usingTelephone and Drop Boxes at Societies


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Annexure

Questionnaire

Q 1 Do you watch the T.V.?

Yes No

Q 2 How frequently you watch the T.V.?

Regularly Rarely

Q.3 Which connection you are use for your entertainment?

Dish T.V Cable connection


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Door Darsan Internet

Any other_____________

Q.4 Which DTH connection do you have?

Tata Sky Big TV Sun Direct

Dish TV Videocon D2H

Q.5 From which sources you comes to know about Tata

Sky?

TV Holdings Relatives

Advertisement News papers

Q.6 Where did you obtain/ take the connection from?

Company Shop

Exclusive dealers

Vendor shop

Q.7 How long did it take for your card to get activatedand function?


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02-06 hrs Not sure

06-12 hrs Above 24 hrs12-24 hrs

Q.8 For what period you have used the Tata Sky service

Last 1 month Less then 12 month

Last 6 to 12 month More than 12 month

Q.9 Rate the following parameter of Tata Sky to other Service

Provider?


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PERCENTAGE OF USERS

PARAMETERS VeryGood

Good Average PoorVeryPoor

Coverage

Value Added

Services

Customer Services

Brand Image

Tariffs & Schemes


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Q.10. Whats the reasons for which you are not using Tata

Sky?

Dont want to change with regular service

Poor service

High price

Low signals

Additional facility provided by other operator

High rent per month


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Bibliography

http://en.wikipedia.org/wiki/Television_in_India

http://www.indiandth.in/

www.sundirect.in/mediaDetails.php?mediaId=1

http://realinfo.info/index.php?topic=810.0;topicseen

http://www.media-partners-asia.com/mpanews120809.asp

http://www.mumbaispace.com/dth/airtel-dth.htm

www.simplymalayalees.com/forum_posts.asp?TID=696 http://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760 http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor- advertising-india http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-In- India/995277

http://www.tatasky.com/why-tata-sky.html http://en.wikipedia.org/wiki/Tata_Sky
http://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760http://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor-http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor-http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-In-http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-In-http://en.wikipedia.org/wiki/Tata_Skyhttp://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760http://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor-http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor-http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-In-http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-In-http://en.wikipedia.org/wiki/Tata_Sky


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http://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.html

http://www.tatasky.com/why-tata-sky.html

http://en.wikipedia.org/wiki/Tata_Sky
http://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.htmlhttp://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.htmlhttp://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.htmlhttp://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.html

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Buyer Awareness of Tata Sky

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