INTRODUCTION It was started in 2004; Tata sky is the joint venture between Tata group and star group in ratio of 80:20. It currently offers close to 205 channels in Indian viewers a world class television viewing experience through its satellite television service. The Tata group is one of India’s largest and most respected business companies. It includes diversified businesses in sectors such as material, engineering, service, energy, information system and communication, consumer products and chemicals. With over 5 million connections i a very short period, Tata sky has emerged as the faster growing direct to home (DTH) platform across globe. Tata sky offers so much more for everyone in the family to enjoy. Such as: Over 190 TV channels and services in DVD quality. 4 day listing of all programmes on T.V. (in English and Hindi). Educational programmes started for children of all age groups. Religious programmes showing live telecasts from temples. 24x7 call centres and over 3000 engineers for assistance. All favourite channels on single equipment.
Transcript
INTRODUCTION
It was started in 2004; Tata sky is the joint venture between Tata group and
star group in ratio of 80:20. It currently offers close to 205 channels in Indian
viewers a world class television viewing experience through its satellite
television service.
The Tata group is one of India’s largest and most respected business
companies.
It includes diversified businesses in sectors such as material, engineering,
service, energy, information system and communication, consumer products
and chemicals. With over 5 million connections i a very short period, Tata sky
has emerged as the faster growing direct to home (DTH) platform across
globe.
Tata sky offers so much more for everyone in the family to enjoy. Such as:
Over 190 TV channels and services in DVD quality.
4 day listing of all programmes on T.V. (in English and Hindi).
Educational programmes started for children of all age groups.
Religious programmes showing live telecasts from temples.
24x7 call centres and over 3000 engineers for assistance.
All favourite channels on single equipment.
CURRENT SITUATION
Tata sky crossed the 2 million connections in a period of 20 months,
thus retaining its position of fastest growing DTH provider.
Tata sky began with a marketing budget of 15% of sales.
Currently film star Aamir Khan is its brand ambassador.
Tie-ups with ITC E-Chaupal and Godrej Aadhar gave it wider rural reach.
For its distribution, Tata sky has tie-ups with ITC international business
division.
Tie-ups with 24x7 guru.com to provide content for active learning.
Tata sky has adopted a 360 degree marketing campaign approach that
encapsulates TV, print, radio along with on- ground activities and
marketing on the digital ground.
Tata Sky, the joint venture DTH Company between Tata Group and
Star, has already launched its PVR service.
The Boston Consulting Group Box ("BCG Box")
As per BCG matrix, Tata sky product lies in STARS category because it is
having high market share and high market growth.
COMPETATIVE SITUATION
Direct -to-home
The anticipated growth to the effort of dth industry players who are all
trying to attract the customers by cutting down prices as well as offers.
They have started to offer a no. Of value added services such as
“movie-on-demand”, live recording of tv content, matrimonial
matchmaking, etc. Dth is still a relatively new category and people are
hesitated to purchase such products, therefore the companies such as
Tata sky, dish tv, reliance big tv, etc. Are making more effort to make
aware the advantage of the service and create an urg to invest in it.
Major Players: Within the rural markets, it is Dish TV DTH service that has the most penetration. Tata Sky, Dish TV and Sun Direct DTH services are preferred brands in top metros. The southern market is dominated by Sun Direct DTH services, while in high-income households (monthly income above Rs 50,000), Tata Sky is the dominant DTH brand, while the new entrants are BIG TV, Airtel DTH & Videocon D2H. But if we take into consideration the number of subscriber that each Direct to home companies claims to have, then the current big players in DTH industry would be as follows:
Company Subscribers (in millions) (till sep 09)
Revunue (in RS cr) (FY09)
Launched In Distance from Ebitda breakeven
Dish Tv 5.92 737 Oct ‘03 Q1-2010
Tata Sky 4.5 800 Aug ‘06 NA
Sun Direct 4.3 NA Dec ‘07 2.2 mn subs later
Airtel DTH 2 NA Oct ‘08 NA
Big TV 2 NA Aug ‘08 2010
Videocon NA NA May ‘09 NA
Industry competitors: Segment rivalry Presently as on 2010, these are the main DTH service providers in India:
– state owned free service provider - owned by Essel Group, was the first commercial DTH service
provider. – owned by TATA group, largest DTH service provider presently in
India. – owned by Sun group, primary focus is on low income groups
and regional viewers. - Owned by Reliance group, new entrant into the market.
– Owned by Bharti group, new entrant with aggressive marketing strategies.
on D2H – Owned by Videocon group, new entrant into the market.
With 7 operational players, the segment rivalry is quite high. The
competition from state owned DD-Direct to private players is negligible
from the content point of view as the number of channels offered by
DD-Direct is very limited. However, DD-Direct does not charge any
monthly subscription fee which poses a threat to the private players.
Between Dish TV and Tata Sky there is an intense rivalry exhibited by
price wars and discount schemes offered to new connections. Being the
first mover, Dish TV has price advantage in both the STB as well as
procuring the transponders. On the other hand, Tata Sky claims its STB
having superior DVD quality video. There is also a competition at
acquiring the content.
Competitors Analysis:
Competitors
Product Customer Awareness
Pricing Product Availability
Promotion
Place
Dish TV E (excellent)
E VG VG E E
Tata Sky VG (very good)
E VG VG E E
Sun Direct E G (good) E VG VG G
Airtel DTH VG VG A (average)
VG VG E
SWOT ANALYSIS
Strengths:
1. Brand name of Tata group.
2. Technological expertise with Newscorp’s DTH arm sky.
3. Superior picture quality.
4. Leads in introducing new packages & services.
5. After sales services.
6. Innovative product offering Tata sky plus.
7. Interactive channel & program guides.
8. Rural penetration through ITC E-Choupal & Godrej Aadhar.
Weakness:
1. Second mover after DISH TV who captured market share.
2. Dependency on broadcaster & had issues with sun TV.
3. Weak distribution channel.
4. Lack of service centres.
Opportunities:
1. Larger disposable incomes with India.
2. Tapping niche market with better services & product
offering.
3. Expansion in distribution network.
4. Increase in geographical areas with rural market
untapped.
5. Growing demand for quality of service in the form of DTH
over cable.
Threats:
1. IPTV provides superior technology if implemented.
2. Government intervention & policies.
3. Increasing competition internally.
4. Dependency on broadcasters for their channel content and
thus increasing cost.
5. High dependence for transponders on ISRO.
Targeting:
Tata sky limited is targeting 8 million subscribers by 2012.
More emphasis on adding more value-added services.
Investment of Rs. 20 billion as it plans to ramp up its DTH subscribers
over the next 5-7 years.
Increasing the distribution channel up to 300.
Segmentation:
Initially Tata sky targeted rich class category but later they focused on
middle class also.
Targeting rural market also by joining with ITC E-Choupal & Godrej
Aadhar.
It is heavily demanded in metropolitan cities.
MARKETING STRATEGIES
4 P’S OF MARKETING
PRODUCT:
Tata sky plus +
Tata sky + is the first digital video recorder to have
launched in India. the expertise and superiority of the world
class BSkyB Technology has been at the core of cutting edge
services provided by Tata sky +.
Tata sky + was also the first DTH services provide to give
the power to pause, record & rewind live TV and now with
true video on demand, dual access remote recording and
auto standby.
Extra on TV viewing
1. DVD Quality Picture & Sound
Enjoy over 190 TV channels and services in DVD quality
picture and CD quality sound.
2. Customer Service
24x7 help. Support in 11 languages.
3. Guide
Get a 4-day listing of all programmes on Tata Sky DTH in
English and Hindi. You can also set reminders for your
favourite programmes.
4. Parental Control
Regulate what your children watch on your television by
locking movies based on the ratings provided by the
channel or by locking the entire channel.
5. Search & Scan Banner
Find out what’s playing on another channel without
changing the channel you are watching.
More reasons:
Choose from a variety of channel packages and pay only for
what you want to watch. Keeping in mind our diverse
audience, we also offer a range of regional content.
Few examples-
Annual Mega Pack
(Annually at Rs 5,500 per annum: 186 channels* + 12
Showcase movies)
(Semi-Annually at Rs 3,000 for 6 months: 186 channels* +
6 Showcase movies)
The Mega Pack offers all the channels* and services on
Tata Sky ! (*except Topper)
The channels available on the Mega Pack include the
channels available on South Jumbo Pack + Fun Learning
