FinalProjec on tata sky

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A PROJECT REPORT ONTATA SKY DTH SERVICES

ISKO LAGA DAALA, TOH LIFEJINGALALA

Submitted To Dr. Sanjay Patro

Submitted By

Student: Swapneswar SahuSID- RB11031

Batch- PGCBM-19Branch- Pune, FC Road.

2012


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ContentsContents..................................................................................................................... 2

About Tata Sky DTH....................................................................................................3

Vision.......................................................................................................................5

Mission.................................................................................................................... 5

Objective Of Study......................................................................................................6

Why DTH Sector?........................................................................................................ 6

Background................................................................................................................ 7

DTH Industry an overview:.......................................................................................8

Competitor Analysis..................................................................................................12

Industry competitors: Segment rivalry .................................................................12

Market Leader: ..................................................................................................... 13

Market challengers: ..............................................................................................14

Market followers.................................................................................................... 14

DTH Industry An Oligopolistic Market Structure:.................................................16

A closer look at Tata Sky .........................................................................................17

Analysis of Growth Strategies of Tata Sky ...............................................................18

Environmental Analysis Porters 5 Forces Model:...................................................20

SWOT Analysis..........................................................................................................23

Marketing Strategies................................................................................................ 25

Product:................................................................................................................. 25

Place......................................................................................................................29

Price...................................................................................................................... 29

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Promotion.............................................................................................................. 29

Brand Positioning And Values...................................................................................30

Branding Strategies..................................................................................................31

Five Key Brand Elements Of Tata Sky.......................................................................32

Brand Management Of Tata Sky ..............................................................................36

Analysis of Challenges For Sky TATA........................................................................37

Market Research.......................................................................................................37

Research Methodology..........................................................................................38

Limitations.............................................................................................................38

Analysis of Data(Refer Appendix for survey questions).........................................39

Recommendations....................................................................................................46

Appendices And Annexure Questionnaire ................................................................48

Bibliography............................................................................................................. 51

About Tata Sky DTH

Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR.

Tata Sky DTH endeavors to offer Indian viewers a world-class television viewing

experience through its satellite television service.

The TATA Group is one of Indias largest and most respectedbusiness conglomerates. It comprises diversified businesses in

sectors such as materials, engineering, services, energy,

information systems & communications, consumer products and

chemicals.

The Group and its enterprises have been steadfast and distinctive in their

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adherence to business ethics and their commitment to corporate social

responsibility. This is a legacy that has earned the Group the trust of many

millions of stakeholders in measure few business houses anywhere in the world

can match.

STAR is a leading media and entertainment company in Asia. STARs parent

company, News Corporation, owns an International group of DTH businesses

that include BSkyB in UK, Sky Italia in Italy and Foxtel in Australia.

Tata Sky+

Tata Sky+ is a premium set-top box-cum-Personal Video Recorder or even known asDVR Digital Video Recorder that allows recording up to 130 hours of live TV, recordingone programe while watching another, pause, fast-forward and rewind a live telecastand review a TV programme. Also Tata Sky+ provides service using MPEG-4 digitalcompression technology.

Tata Sky HD

Tata Sky HD was launched on June 14, 2010, and has channels in their nativeresolution of 1080i or 720p. The STB is compatible with 5.1 CH surround sound aswell. The service currently offers four HD channels - National Geographic Channel HD,Discovery HD, Showcase HD (Pay Per View) & Star Plus HD. More channels such asStar Movies HD and other popular sports channels in HD format are expected to beadded soon.

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http://en.wikipedia.org/wiki/MPEG-4http://en.wikipedia.org/wiki/High-definition_televisionhttp://en.wikipedia.org/wiki/National_Geographic_Channel_HDhttp://en.wikipedia.org/wiki/Discovery_HDhttp://en.wikipedia.org/wiki/Star_Plushttp://en.wikipedia.org/wiki/Star_Movieshttp://en.wikipedia.org/wiki/High-definition_televisionhttp://en.wikipedia.org/wiki/National_Geographic_Channel_HDhttp://en.wikipedia.org/wiki/Discovery_HDhttp://en.wikipedia.org/wiki/Star_Plushttp://en.wikipedia.org/wiki/Star_Movieshttp://en.wikipedia.org/wiki/MPEG-4


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Certifications and Honors

ISO 27001:2005 accreditation

In March 2009, Tata Sky, became the first Indian direct-to-home (DTH) service

provider to be awarded the ISO 27001:2005 accreditation, the benchmark forinformation security. ISO 27001:2005 is an international standard that providesspecifications and guidance for the establishment and proper maintenance of anInformation Security Management System (ISMS). This certification confirms that everytransaction carried out through Tata Skys IT systems is highly secure.

SUPERBRAND 2009 2010

Tata Sky was selected as a SUPER BRAND for the year 2009-2010 by an independentand voluntary council of experts known as Super brands Council. It is the only IndianDTH to have won this distinction

Extensive Customer Service Network

It is using 3000 service engineers in call centers to provide good service for their

customers. TATA SKY takes direct responsibility to provide its vouchers, hardware

through popular consumer electronic stores to enhance customer convenience. TATA

SKY offers all popular television channels with local language channels according the

demand.

Vision

Tata Sky aims to revolutionize Indian entertainment by offering superior

DVD quality picture and CD quality sound. T

To connect every television home

Empowering every television viewer Revolutionizing home entertainment

Mission

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Tata Sky is set to revolutionize television viewing in India through its superior

digital quality picture and sound. The service aims to empower the Indian viewer

with Choice, Control and Convenience through its wide array of programming

choices and interactive features.

Objective Of Study

The objective of our project is

Analysis of Indian DTH industry

Marketing mix for Tata Sky

Promotional strategies analysis and evaluation

Pricing Strategy

Brand Management

New product and package development.

The challenges and opportunities present before Tata Sky in Indian DTH

industry. To find the awareness about various brands of DTH systems.

To determine the level of brand recall for various brands of DTHsystems.

To find the most preferred brands of DTH systems.

To determine important attributes and factors that consumer considers

To find the influencing factor in while marketing purchase decision.

Why DTH Sector?

DTH is a very attractive sector, on growth front, it has huge opportunities and

companies will act aggressively to garner subscribers as it happened in mobile space.

Only 5 million homes have DTH connections out of 75 million cable households in India.

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This is a positive aspect for this sector. This sector offers huge investment opportunities

for long term investors, and with coming up of new companies in this sector , it is very

interesting to see how these companies react to each others strategies and how far

they are successful in penetrating the market.

DTH companies need to invest heavily in the initial years and breakeven point is also

high, the fixed cost that a company incurs in this sector includes the license fee,

transponders fee, uplink charges, content charges, etc thus Customer acquisitions skills

assume a very important role in this sector which makes this sector a very interesting

study.

Background

The scenario is changing in India. The income level of an average Indian household is

increasing faster with lot of disposable income. Gone are the days where a typical

Indian household was known for savings attitude. People are seeking more and more

avenues for entertainment. Earlier days, most of the house holds had one picture tube

TV set with state sponsored DOORDARSHAN as the only available channel. It used to

feature a huge individual antenna.

When the liberalization of economy happened, it attracted loads of FII and foreign

direct investments. Many of the stringent state controlled regulations were deregulated

further fuelling investors interest in Indian economy. With the increase in number of

channels as the outcome, it literally changed the way the average Indian watched the

television. Until few years back, there were as many as 1 lakh cable operators across

India. However the services provided by them were poor. There were strikes, changes

in tariff plans, selective broad cast which caused dissatisfaction amongst the customers.

This created market for the DTH (Direct-To-Home television). DTH is defined as the

reception of satellite programmes with a personal dish in an individual home. DTH

service involves distribution of multi-channel TV programmes.

DTH does away with the need for the local cable operator and puts the broadcaster

directly in touch with the consumer. Only cable operators can receive satellite

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programmes and they then distribute them to individual homes. A DTH network consists

of a broadcasting centre, satellites, encoders, multiplexers, modulators

and DTH receivers. A DTH service provider has to lease Ku-band transponders from

the satellite. The encoder converts the audio, video and data signals into the digital

format and the multiplexer mixes these signals. At the user end, there will be a small

dish antenna and set-top boxes to decode and view numerous channels.

DTH Industry an overview:TH services were first proposed in India in 1996. But they did not pass approval

because there were concerns over national security and a cultural invasion.

Finally in 2000, DTH was allowed. The new policy required all operators to set up earth

stations in India within 12 months of getting a license. DTH licenses in India cost $2.14

million and will be valid for 10 years. The companies offering DTH service will have to

have an Indian chief and foreign equity has been capped at 49 per cent. Today,

broadcasters believe that the market is ripe for DTH. The prices of the dish and the

settop 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 service is

coming at a time when the government is pushing for CAS (conditional access system),

which will make cable television more expensive, 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 and cable TV

have failed to penetrate.

DTH has also allows for interactive TV services such as movie-on-demand.

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

company offering the service.

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

company offering the service.

In India it has taken DTH 5 years to get to 6 million plus subscribers! And Tata Skycrossed 2 Million subscribers in 20 months, the fastest subscriber ramp-up ever by aDTH platform

INDIA 165 Mn Pay TV HHs by 2015

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The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Subscribers(Millions)

Year

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Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their

monthly income on cable services. Globally, consumers spend 3 - 4% of their monthly

income on pay television services While this indicates a sizeable growth opportunity,

only a mass service can achieve the economies of scale to fully exploit the market

potential

The following are main drivers for focusing on DTH in India

Rise in Disposable Incomes

75% percent rise in per capita income ( 1990 2007) Appetite for Entertainment is growing

$25 Billion being spent annually by Indians on travel

45 Million credit card subscribers growing at 35% annually

10 Million color TVs sold annually

125 Million TV homes .have doubled in last 6 years

Rapid adoption of new technologies by Indians

5 - 6 Million mobile phone subscribers are added every month

350,000 Satellite TV subscribers added every month

The DTH sector has something for each of the key players as mentioned below.

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The DTH market has been able to acquire around 18 Million subscribers over the pastsix years. With the entry of new players, the number of DTH subscribers has witnessed

a steady growth as the competition in the market increased and people have a widerange of options to choose from according to their requirements.

By 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog cable willfollow with only 20% market share. The DTH service market in India has emerged asone of the most lucrative markets that have successfully sustained the impacts of thecurrent economic slowdown. The slowdown, instead, proved a boon for the Indian DTHindustry as people started to cut on their entertainment expenditure and instead ofviewing movies at theatres, they Prefer to stay at home with their television sets.

India has about 130 million TV homes of which, Cable & Satellite (C&S) services are

present in 97 million (74%) of the home. The DTH market in India comprises 11% of thetotal market with almost 15 million homes. The DTH industry growth lagged to 10.3% inIndustry players agree that the digitization drive is expanding by 35-40% annually.However, industry estimates DTH to touch 35-40 million subscribers by 2012, and thatis the number that every DTH brand has set its sights on.

The anticipated growth to the efforts of DTH industry players who are all trying to lureviewers by cutting down prices as well as offering perquisites even though it translatesinto loss of Rs 1,600-2,000 on each new subscriber acquired by them. They havestarted to offer a number of value-added services such as movie on demand, liverecording of TV content, matrimonial matchmaking, etc. Currently, the Indian DTHmarket is being served by seven private players Doordarshan, Dish TV, Tata Sky, SunDirect, Big TV, Airtel Digital TV and Videocon D2H. Doordarshan is free DTH serviceprovider, which is run by the Indian government.

Competitor Analysis

Industry competitors: Segment rivalry

1The following are the main DTH service providers in India:

DD Direct Govt owned free service provider

Dish TV - owned by Essel Group, was the first commercial DTH service provider.

TATA Sky owned by TATA group, largest DTH service provider presently in India12


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Sun Direct owned by Sun group, primary focus is on low income groups and regionalviewers

Reliance Big TV - Owned by Reliance group, new entrant into the market

Airtel Digital TV Owned by Bharti group, recent entry to the DTH market withaggressive market strategies

With 7 players in foray, the rivalry is quite high. DD direct is a free service but it has verylimited number of channels. Dish TV has capitalized on the first movers advantage.Dish TV usually offers free installation and loads of free add on. TATA Sky is a close

competitor which initially depended upon picture quality and superior technologythereby targeting top segment of the market. But now, both Dish TV and TATA Sky areengaged in price war and trying to achieve economy of scale.

Market Leader:

Dish TV Indias first DTH service provider launched in October 2003 is the marketleader with 7 million subscribers. Dish TV continues to be a market leader with 32%

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market share in 7 player scenario on date, with sizeable sales and distributioninfrastructure of over 650 distributors and 45,000 dealers across 6500 towns onceagain, the largest in the category. This reach into far-flung markets enables building of adiverse subscriber base across consumer segments, which are supported by its richcontent of regional channel offerings.

Dish TV has maintained its leadership position through an improved market share of allDTH subscribers. New offers, extensive marketing campaigns have contributed toimpressive subscriber acquisition and are committed to provide the best value to ourcustomers and investors by enhancing operational efficiencies and by leveragingeconomies of scale.

Market challengers:

The gap between the leader and the challengers is decreasing because of theincreasing competition and promotion strategy followed by each player.

TATA SkyIn the enormous consumer market like India, occasionally an opportunity arises that cancreate incredible growth and profit provided those who seek to capture it could movequickly enough. TATA wanted to capitalize on this opportunity, as there was currentlyonly one player in the DTH market. It was the second Mover after Dish TV leveraging onbrand TATA and high brand recall. Incorporated in 2004, Tata Sky is a JV between theTATA Group and STAR. Tata Sky endeavors to offer Indian viewers an excellenttelevision viewing experience through its satellite television service. The key businesschallenge in a country like India is meeting customer demandswhich are verydynamic under the regulatory purview of the country.

Sun DIRECT

Sun Direct is the fastest growing DTH service provider having garnered over 5 millionsubscribers since its launch in December 2007 and aims to become one of the leadingplayers in the DTH space. Sun Direct challenged the existing players by involving themin the price war by acting as a discounted brand. It started offering subscriptions at aslow as Rs 99 to reach as much at the bottom of the market. The biggest differentiator forthe brand is the pricing point which is lesser than the other brands.The other point of differentiation is with regard to their distribution channels. It isavailable in most basic shops such as telephone booths, cycle repair shops and videoparlors. Sun DTH was the first one to move into the MPEG4 league and soon after thePAN India HD, services were launched; Sun Direct started to roll out the HD service inIndia.

Market followers

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These are late entrants with loads of latest features but may have lost on price war and

market penetration.

Reliance BIG TV

Reliance Big TV uses MPEG-4 technology which can carry more number

of channels

Good picture and audio quality

The company makes its packages cost effective by providing lots ofchannels in base pack itself.

Good performance even during the monsoon season.

Reliance Big TV Product Review:

Reliance BIG TV is a cost-effective service whose base package comeswith large

number of channels.

The customers get to select regional package based on their Language /Regional / cultural preferences.

The set-top box of Big TV is little unstable. This acts as a disadvantagefor the

Customers

For the installation of the set-top box the customer has to wait for 3-4days from the

time of purchase

Airtel Digital

Airtel digital tv has good DVD Quality picture and CD quality

One of the major features of Airtel digital is that it exclusively offers

World-spacesatellite radio channels.

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

t provides better connectivity as provides a larger dish antenna

Airtel Digital TV Product Review:

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Although Airtel Digital is a late entrant in DTH space it has come upwith a completely flawless DVD quality picture and sound.

At the time when the other players were providing different remotes

for set top box and television , Digital Tv has completely undone thatissue 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 the rest thehigh cost

associated with it acted as a big negative aspect for the company

The are many other players in the market providing lots of channels at

a lower price,

DTH Industry An Oligopolistic Market Structure:

The DTH industry in India can be categorized as an OLIGOPOLY. It is a marketstructure in which the market or the industry is dominated by a small number of largeplayers who are called oligopolist. In this type of market the degree of marketconcentration 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 huge capital investment. Theinitial cost required for setting up the company is very high as it requires transpondersand other hi tech equipment. Following entry barriers exist in the DTH Industry.

DTH Industry is a high volume low margin industry: Any new entrant in the DTHindustry has to make sure that it builds significant customer base as soon aspossible to ensure its profits.

High set up cost of satellite, transponder and other high tech equipment: thehuge initial cost of setting up the business acts as a huge entry barrier for thenew entrants.

High Cost of the set top boxes

Long gestation period and high break even period

Multilingual & Multicultural differences in India.

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A closer look at Tata Sky

Innovative product offerings Tata Sky has taken the onus on itself to invest in moreinteractive services to differentiate itself from others. It was the first DTH company in theworld to offer its subscribers interactive VAS under the umbrella Actve.

Kick started the category advertising - Although it was the 3rd player to enter the marketit sought to create consumer education about the category with focused advertising.Initial campaigns featured Hrithik Roshan who promoted multi-angle viewing of theWorld Cup.

Focus on heritage Tata Sky latest campaign features superstar Aamir Khan. Thefocus of the campaign was to establish the pedigree of Tata Sky and inform potentialcustomers about Sky-the leading British Broadcasting

Low cost packages to increase penetration - Tata Sky has recently introduced a Rs 99-a-month low-value pack for 53 channels to increase penetration of Tata Sky in smallertowns of the country.

Tata Sky has also gone a step further and introduced an electronic programme guide(EPG) in Hindi especially for people in small towns who are more comfortable withHindi.

Key deliverables:

The 3 anchors for growth that can be explored are Superior Picture quality

Unlike analog cable, Tata Sky subscribers can view TV through superior digital DVDquality picture and CD quality sound

Wide array of interactive applications

In order to empower the Indian viewer with choice, control and convenience Tata Skyhas a wide array of programming choices and interactive services like Active Cooking,

Active Wizkids, Active Learning, Active Stories, Active Games, Active Sports andActive Doordarshan that can be ordered with any of the basic packages.

Unparalleled customer service

Tata Sky has established an extensive customer service network across the country. Ithas engaged a field force of approximately 3000 service engineers who are

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complemented by high-end 24x7 call centers, manned by multi-lingual customer serviceassociates, trained to solve all customer problems.

Tata Sky takes direct responsibility for installing and servicing the hardware for periodicproblems that exist at every subscriber's home, thereby ensuring the highest levels ofcustomer service.

Tata Sky retails its hardware and prepaid recharge vouchers through popular consumerelectronic stores to enhance customer convenience

Analysis of Growth Strategies of Tata Sky

The success or failure of any business depends on the strategy that they adopt to grow.

In this case, in spite of the fierce competition in Indian DTH market, Tata Sky is able to

increase its subscriber base by 1-2 million each year. They are able to position best-

value brand image among the customer. The growth strategies behind their success

can be analyzed based on the two generic growth strategies viz

In order to evaluate the Internal Growth Strategy of Tata Sky, lets analyze based on the

framework ofAnsoffs Matrix (Product-Market grid):

Market

Product

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1. Market

Penetration

Strategy

2. Market

Developme

nt Strategy

3. ProductDevelopme

nt Strategy

Diversification Strategy

Existing Market New Market

Existing

Product


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As per the case study, we can visualize that Tata Sky has adopted all the three

Intensive Growth Strategies viz. Market Penetration Strategy, Market Development

Strategy and Product Development Strategy as the Internal Growth Strategy. This can

be further analyzed as described below:

Market Penetration Strategies: Tata Sky is seeking to achieve growth with existingproducts in their current market segments, aiming to increase its market share. In order

to increase the market penetration, they are trying to increase both the number of

customers as well as number of uses. To increase the number of customer they are

doing massive ad campaign like 360o ad campaign using TVC, Radio, OOH (out of

home), internet etc, several promotional offers like 50% discount on installation, ,

recharge and win offer, friends and family program, Tata Sky with a Nano car, reduced

price of digicomp, super save pack, a-la-carte offer etc. Similarly to increase the number

of usage they have introduced many value added services like interactive gaming, VoD

(video on demand-Pay Per View) service etc. Similarly they are also showing new

usage of DTH to their customers by showing DTH is not just for TV product but also like

computer/game console. As the result, by introducing new usage they are attracting

more customers/converting non users to users. Their constant effort on quality control is

also churning few of the other competitors customer to their network.

Market Development Strategies: Tata Sky is seeking growth by targeting its existing

products to new market segments. Though they have started with the target of urban

customers but like Airtel and other DTH operators Tata Sky also has started expanding

their network to village and suburban areas throughout India, from North to South, from

East to West. As a result they have strengthen their distribution network to 35,000

outlets and 5,000 towns across India. Moreover they have started SSD (sales and

service dealer) across semi urban and rural markets. This helped the company to

increase its presence in those areas very quickly. In order to develop a new market,

Tata Sky has made a very wide distribution network. For Rural/Sub-urban areas they

have agreement with ITCs e-Choupal, Godrej, Indian Oil Corporation etc. where as for

urban areas they have tie-up with Tata Indicom, Pantaloon etc. This network is helping

them a lot for new market development (geographical expansion).

Similarly, to attract new edge segmentation they have also started ad campaign for

gaming and video streaming (without changing the product, expanding segment).

Product Development Strategies: Tata Sky is also developing new products targeted

to its existing market segments. For example to attract the urban busy customers they

launched a new product in October 2008 called Tata Sky+, where consumers can

record their favorite program (up to 45 hours) while watching another channel,

record/pause/rewind program etc. They had introduced a premium set top box with a

personal video recorder (PVR), first time in India. Similarly they have upgraded their

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picture format to latest MPEG4 technology in Tata Sky+ by introducing innovative

interactive services like Active Sports, Active Khabar, cooking, matrimonial, games and

bilingual programming guide. In March 2009, Tata Sky received the ISO 27001:2005

accreditation, an internationally accepted standard for Information Security. Thus to

attract new customer and retain their current customer Tata Sky seems to be able to

keep their pace with time.

Similarly, Tata Sky also has adopted Integrative Growth Strategy as an External Growth

Strategy. Especially it has focused on Forward integration as the vertical integration e.g.

distribution channel as Tata Indicom (a subsidiary of Tata group) in urban area.

This is how with all the above aggressive marketing strategy Tata Sky is adding more

that 1million customer every year.

Environmental Analysis Porters 5 Forces Model:

Michael Porter has identified five forces that are widely used to assess the structure ofany industry.

Porters five forces are the:

Threat of substitutes. Bargaining power of suppliers. Bargaining power of buyers. Rivalry among competitors Threat of new entrants.

Threat Of Substitutes

DTH faces stiff competition from the Terrestrial, Cable and IPTV. As per the industryestimates, there are 120 million TV homes, of which 71 million are served by cable andaround 6 million served by DTH with the remaining taken by terrestrial transmission. AsIPTV is a new entrant, there is not much data on its subscriber base.

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Terrestrial Television:

Doordarshan is the worlds largest terrestrial broadcaster with over 1400 terrestrial TVtransmitters. It has coverage of 88% of Indian geography. It also provides free DTH but

lack of attractive content is a key disabler for DOORDARSHAN. So it does not posemuch threat.

Cable TV

Cable TV currently operates in 2 modes. One is through CAS (Conditional AccessSystem) covering cities such as Chennai, Parts of Delhi, Mumbai and Kolkata, and theother through Non-addressable system in the rest of the country. As seen in the abovefigure 1, Cable TV enjoys a big share in comparison with other mediums.In case of CAS controlled areas, the subscriber has to either buy or rent the Set TopBox (STB) to see the pay channels. Of course, he can also do without that and see the

70 odd Free-to-Air (FTA) Channels. On the other hand, in areas where non-addressablesystem is used, all the channels are available without the necessity of any separatereceiver. Irrespective of whether CAS or not, the subscriber can comfortably see thechannels by paying anywhere between Rs.100 to Rs.300 per month depending on theplace where he lives. Due to the phenomenal reach of the Cable TV, it poses a seriousthreat to the growth of DTH industry. Also there would be resistance from the LocalCable Operators (LCOs) lobby as DTH totally displaces them.

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Internet Protocol Television (IPTV) :

IPTV is a service where television signals are digitally sent over the telecommunicationsline. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data

(Broadband Internet) services. With widespread adoption of Broadband in the countryand the growing techno savvy population, IPTV has a potential to become a hugesuccess. Telecom companies such as BSNL and MTNL have spotted these earningspotential and have already started with trial implementation in cities like Bangalore andKolkata. Companies like Reliance Communications and Bharti Airtel are also planningto follow soon. IPTV takes the interactivity to a newer level. In regular mediums, all thechannels are pushed to the consumer regardless of his preference. IPTV encourages atwo-way request-response model where the consumer chooses the program he wantsto view. Right now this medium is totally unregulated and hence there is a chance forcustomers being taken for a ride. Cable companies are urging the TRAI to issue aconsultation paper process to include IPTV under the aegis of Cable TV act.

After this small discussion on IPTV, even if strict regulations are enforced on, we see itas a considerable threat to DTH in Urban and Semi Urban areas where broadband hasmade its mark.

Bargaining Power Of Suppliers

DTH industry relies on three major supplies. They are

Customer Premise Equipment (CPE) comprising of the Satellite Dish.

Set Top Box with the necessary Access Card.

The Ku band transponders in the orbiting satellites and content.

With India set to overtake Japan as Asias largest DTH by next year , the bargainingpower of Indian DTH operators with CPE suppliers have been steadily increasing.

However, the availability of transponders is increasingly becoming difficult. With onlytwo domestic satellite launches between 2007 and 2010 and increasing DTH players,

Astrix (the supplier of transponders a subsidiary of ISRO) is in a better position to use

DTH as its cash cow for the next 5 to 10 years. As there is not much of regulationparticularly in terms of channel pricing, acquiring content from the broadcasters is alsodifficult. DTH vendors are at the mercy of the broadcasters.

Bargaining Power Of Buyers

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With enough options to choose both from the point of alternate mediums like Cable,IPTV and Terrestrial broadcast and from the point of increasing DTH operators, theconsumer is at his will to decide. Customers will continue to have a high bargainingpower until DTH platforms try to differentiate them as superior players with better

content and clarity.

Rivalry Among Competitors

With 7 players, the Inter firm 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 ofchannels offered by DD-Direct is very limited.

However, DD-Direct does not charge any monthly subscription fee which poses a threatto the private players who charge monthly subscription charges.

Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars anddiscount schemes offered to new connections. Being the First move, Dish TV had priceadvantage in both the STB as well as in procuring the transponders. On the other hand,Tata Sky claims its STB to offers superior DVD quality video due to its advanced STB.While Dish TV is planning to spend Rs. 850 crore over the next 3 years, the rival TataSky is willing to spend Rs.2000 crore over the medium term. The companies have alsoset ambitious targets with Dish TV aiming to reach 4.5 million subscribers in the next 18to 20 months while Tata Sky aiming for 8 million subscribers by 2012.

Threat Of New Entrants

With already 7 players in the DTH space, threat of new entrants is relatively low. Thereis already enough competition which will discourage new firms to enter this businessand also initial investment as well as breakeven point is very high..While getting a license is relatively easy, the barriers to entry are high when it comes topricing of CPE and getting the required transponders. There is a definite First moveradvantage . So any new entrant will face a high cost when it comes to equipment andtransponders.

SWOT Analysis

Strenghts

1. Leveraging on brand TATA and High brand recall2. Technological expertise with Newscorps DTH arm Sky 3. Superior Picture quality

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4. Leads in introducing new packages & Services5. Customer service6. Rural penetration through ITC E-Choupal and Godrej Aadhar7. Interactive channels and program guides8. Innovative Product offering Tata Sky Plus

Weaknesses

1. Second Mover after Dish TV who captured Market Share2. Cannot match free service like DD3. Currently Does not offer free Set Top Box like Dish TV4. Litigation due to issues related to sports channels which it lost5. Dependency on broadcaster and had issues with Sun TV.

Opportunities

1. Larger disposable incomes with India2.Tapping niche markets with Better service and Product offering3. Expansion of distribution network through exclusive stores4. Interactive advertising Tie up of with Samsung5. Increase in number of TVs sold6. Increase in the geographical boundaries with Rural Market untapped7. Growing demand for quality of service in the form of DTH over Cable8. CAS being made Compulsory would encourage switch.9. Value Added Services are gaining steam.

Threats

1. IPTV provides superior technology if implemented2. Cable Set top Boxes provide easy switching due to negligible switching costs3. Increasing Competition internally4. Dependency on CPE suppliers to some extent 5. High dependence for transponderson ISRO6. Dependency on broadcasters for their channel content and thus increase in cost7. Videocon may enter DTH by building its own set top boxes.8. No Exclusivity in Content and Rule of Must Carry9. Cap on Investment (20%)10. Interoperability Regulations11. Cap on foreign Investment (49%)

Targeting:

Tata sky limited is targeting 8 million subscribers by2012.

More emphasis on adding more value-added services.

Investment of Rs. 20 billion as it plans to ramp up its DTH

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subscribers over the next 5-7 years.Increasing the distribution channel up to 300.

Segmentation:

Initially Tata sky targeted rich class category but laterthey focused on middle class also.

Targeting rural market also by joining with ITC E-Choupal

It is heavily demanded in metropolitan cities.

Marketing Strategies

Analysis of Marketing Mix of TATA Sky

Product:

Tata sky plus +Tata sky + is the first digital video recorder to have launched in India. the expertise andsuperiority of the world class BSkyB Technology has been at the core of cutting edgeservices 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 andauto standby.

Extra on TV viewing1. DVD Quality Picture & Sound9 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 canalso set reminders for your favourite programmes.

4. Parental Control

Regulate what your children watch on your television by locking movies based on theratings provided by the channel or by locking the entire channel.

5. Search & Scan Banner

Find out whats playing on another channel without changing the channel you arewatching.

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Tata sky HD

Tata Sky brings you the latest digital revolution, Tata Sky HD. With great picture quality,

incredibly vivid colours, sharper images and stunning surround sound, this newservice will give you a breathtaking entertainment experience right at your

home. Tata Sky HD gives you a better TV viewing experience with an aspect

ratio of 16:9 and 1080i resolution, which means you get to see a lot more of

what you are watching.

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TATA SKY plus HD

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Place

They have made wide distribution network. They have reached to 5000 towns and

35,000 outlets thorough agreements with ITCs e-Choupal, Godrej etc. for rural areas

and Tata Indicom and Pantaloon for city area retailer. In order to catch the customers of

new area Tata Sky has to expand its network to Rural area and expand its network

even to neighboring countries like Nepal, Bangladesh etc.Price

Tata Sky has offered competitive pricing but has been on the medium range.Initially, it focused on high class but now engaged in price war with Dish TVto penetrate market. It is offering 99 rupees pack to target rural areas. It isalso providing recharge discounts and other value added services atreasonable price.

Promotion

Tata Sky's high-voltage 360 brand and product communications include campaigns on

TV and in the print media, supplemented by aggressive outdoor, radio and internet

advertising. The first TV commercial was a teaser that showed people junking their

electronic devices because they had been rendered redundant by Tata Sky. The

response was so spectacular that the Tata Sky website recorded more than 17.5 million

hits in its first week of launch. In fact, awareness levels of DTH, which were at a low of

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35% in August 2006 before the Tata Sky launch soared to 98% within one year (Source:

TAM Study, GfK Mode Brand Track Study). Not surprisingly, research carried out shows

that Tata Sky continues to lead the DTH category in terms of both advertising and brand

awareness (Source: GfK Mode Brand Track Study). Tata Sky is a proactive brand and

expends vast quantities of energy in promoting its offerings. Its series of television

commercials featuring Aamir Khan have been huge successes. They have been able to

vividly explain features such as pause, record and rewind and the absolute delight of

viewing good picture quality. Its pay-off line Isko Laga Dala Toh Life Jingalala has a

memorable, distinctive and colloquial quality, encapsulating the complete Tata Sky

experience. It creatively explores the web through interactive virals for their various

products and services. Aggressive on-ground promotions include mall and cinema

activations, local festivals and strategic retail tie-ups and van promotions. Each has

helped in accelerating the brand's growth.TataSky's school contact programme was

geared to promote the education services. Over the years,Tata Sky's communicationhas established the brand as a top quality DTH provider with campaigns that remain the

most recalled in the entire category.

Brand Positioning And Values

Positioning: Tata Sky is the DTH service provider with the best customer service toensure no family will ever miss a minute of entertainment and relaxation with loved ones.They have positioned the product with the best pricing offered by the competitors inmarket .Moreover they do offer different kind of packages according to the suitability ofconsumer. For example if a person is from south side he will be talking south economypack which gives channel up to 65 .They offer economy pack which gives 74 channel.supreme pack give economy pack + music channel . Hence they are also positioning itsproduct according to suitability and money of consumer. Now Tata Sky has a quarter of the20 million DTH customers in the country.

Brand Mantra Used By Company

Isko laga dala toe life jingalala

This brand function on principle that consumer satisfaction is must if there is consumersatisfaction then there will be overall growth of business .

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Branding Strategies

It first launched a set-top box with a recorder called Tata Sky Plus in 2008. . Tata Sky ChiefMarketing Officer Vikram Mehra says that as many as 10 per cent of Tata Sky's newcustomers opt for Tata Sky Plus. This has helped the company drop Tata Sky Plus pricesto Rs 5,999.

Pulsing is an effective strategy as it will enable the company to advertising continuously aswell as at low-weight Levels which help reduce the cost. This form is suitable for thecommunication strategy as the strategy involves Educating the target about TataSkyscustomer service initiatives. Considering the increasing competition, it will be important tokeep TataSky fresh in the consumers mind.

The media schedule will consist of:

TVCs in major General Entertainment Channels, regional TV channels and DD;

Insertions a week 2 in mainline print media, 1 in a lifestyle magazine.

Awareness camps should be organized regularly in malls. e-Marketing should be anon-going activity throughout the year.

Promotional campaigns can be held for members of Tata Sky's forums to encourageusers to sign up on them and to generate excitement.

The promotional strategies suggested are:

1. Packages forSpecial Events like the cricket World Cup2. Targeting Tata employees could be a useful way pr promoting the product3. Give the option ofinstallments and other promotional schemes to the new users4. Tie up with real estate developers to target the new constructions5. Door to door marketing should be used to heighten the awareness levels as well6. 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 Hoardingsof Tata SkyAdsa. Finding the strategic building in the localityb. 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 roofsb. Tickers at Major suburban Railway stations

9. Use of Internet- Applications which involve sharing of videos on how one consumesTV, benefits of DTH over cable TV, etc. across social networking sites like Orkut,

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ibibo, etc.10. 'Ek-pe-Teen and Do-pe-Paanch' the offer entails three months of free subscription

on the purchase of one connection, and five months of free subscription on purchaseof two or more connections.

Broadcast: Primarily Television commercials and radio will be used to grab theattention of the target and make them aware about Tata Skys customer serviceinitiatives.

Print: Print ads will be used to educate the target about how can he use customerservices and how Tata Skys superior customer service would enhance his Televisionviewing experience

Awareness Camps: Awareness Camps in the stores and malls will help create a

platform through which awareness, education and promotion can be spread at thesame time. These awareness camps will educate the customer why they need to havea Tata Sky DTH service and how Tata Skys unparalleled customer service will ensureuninterrupted television viewing, when they want it.

Internet: The Internet is used as an online platform through which it can spreadawareness, educate and promote its services to the target group. This is an onlineplatform through which consumers can even address problems to Tata Sky. A forumfor consumers should be maintained on the Tata Sky website. This will not only givethe company advance warning of problems with its products, but also give consumersa feeling of commonality and belonging to a community. Social Networking sites arebeing leveraged to educate customers and solve any problems they may face whileusing Tata Sky.

Five Key Brand Elements Of Tata Sky

Brand Position

TATA SKY positioned themselves as a customer oriented brand. They are providingthe packages for the customer according to their choices. They are trying to providehigh quality DTH service for their customers in comparison than their competitors.

Brand Promise

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The Brand Promise of TATA SKY is that they are providing superior picture quality andquality signals as compared to the other operators , as there were many complains ofsignal distraction during rains which is nil in tata sky.

Brand Personality

They are using TATA & major European DTH player SKY as brand name. MoreoverTATA SKY is a joint venture of star television network. As far as the promotion andadvertising is concerned AAMIR KHAN is promoting the TATA SKY. So By this waythey are trying to make the personality of TATA SKY. Moreover they are using anexclusive logo and distinctive tag line to make the personality of this brand.

Brand Story

The Brand Story illustrates the organization's history, along with how the history addsvalue and credibility to the brand. It also usually includes a summary of products or

services including the core competencies of the brand or the parent company itself. Forexample the parent company of Tata Sky is TATA group and SKY Network which havea long history in the past in India and abroad respectively

Brand Associations

Brand Associations of the Tata Sky are specific physical artifacts that make up thebrand. This is the brand name, logo, colors, taglines, fonts, imagery, etc. The brandassociations of Tata Sky reflect brand promise, all of brand traits of Tata Sky, andsupport brand positioning statement.

The SKY brand owned by the UK based British SKY broadcasting group, brings toTATA SKY the reputation of more than 20 years experience of satellite broadcasting.SKY is well known for the innovative products and services launched by BSKyB.

Brand Traits

1. The brand excels at delivering the benefits customers truly desire

2. The brand stays relevant

3. The pricing strategy is based on consumers' perceptions of value

4. The brand is properly positioned

5. The brand is consistent

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6. The brand portfolio and hierarchy makes sense.Most companies do not have

only one brand; they create and maintain different brands for different market

segments.

8. The brand's managers understand what the brand means to consumers.

9. The brand is given proper support, and that support is sustained over the long

run

10. The company monitors sources of brand equity

Brand awareness:

It includes two things: - Brand recognition and Brand recall.

Brand recognition means how consumers confirm your brand when given the brand asa cue i.e. how they discriminate your brand. Here in DTH services, Tata Sky has setstandards so switching to other brands is less.

Brand recall means how customers retrieve the brand from memory when givenopportunity among different product categories.

Brand Image: - It can be created by marketing campaigns that link strong, favorableand unique associations to the brand. Also brand attributes like learning Englishspeaking, request for favorite movies, regional/local channels, etc. have helped TataSky in terms of positioning itself in the customers and also penetrating more deeplyinto other segments of the society.

However, Brand benefits also help in attaching the customers towards the brand. Thus,Tata Sky provides subscription and recharge benefits to customers and hence makingthem loyal towards the brand.

Brand Associations: - These associations are according to the desire of thecustomers and hence it is necessary to successfully deliver them by products orservices. Tata Sky convey them by marketing campaigns i.e. to make a goodimpression of reliable, efficient, colorful and convenient brand.

Customer Based brand equity: - CBBE is defined as the differential effect that brandknowledge has on consumer response to the marketing of that brand. In other words,the power of a brand lies in what resides in the minds of the customers. Thus a brandwith positive CBBE might result in consumers more accepting/appealing towards abrand extension, less sensitive to price increases.

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CBBE model includes majorly four things into consideration: -

(1) Identity: Who are you?Tata Sky is into the services of DTH services.

(2) Meaning: What are you?

Tata Sky wants to connect every Television home, empowering every television viewer

and revolutionizing home entertainment. Tata Sky also has more than 1,500 exclusive

franchise outlets with a service called BOB, or boy on bicycle, for home deliveries. Tata

Sky has three different call centres at Pune, Mohali and Hyderabad with almost 1,300

people. Over the last one year, the company had four different recharge offers for the

existing consumers such as giving away Rs 300 worth of content free for every

recharge of Rs 300. Some company sources says Only 15 per cent of our recharges

are actually vouchers that people have to buy from a shop; 85 per cent of it happensover SMS, the web or call centres which are even equipped with voice-recognition

software. These are convenient options for the customers. So they have customised

the services to the way subscribers want them to be.

(3) Response: What about you?

Tata Sky is spending a good amount of money on the content, either through one-timepayments or shared revenues. They are the only player who can claim more than 2

million purchases in the three years of operation. Movie after movie, so they realizeany movie which is released on Tata Sky has a much bigger buy-rate than otherplatforms. Movies, interactive services and a programming guide in Hindi, Tata Skybelieves, have widened its base beyond the larger cities. Since 2009, it has beengetting more than 50 per cent of its volumes from outside the 50 top cities.

(4) What about you and me?

It is the only operator which charges for all its interactive services since its launch in2006. It provides these for free with the exception of movies on demand. It was found

that parents wanted their children to learn something out of the themes that they werefond of watching on TV, such as cartoons on Disney and Turner. Tata Sky tried todeliver same content. Apart from nursery rhymes, mathematics and generalknowledge, there are also craft lessons from Pogo, for instance. This service has thusfound 500,000 takers.

They have also introduced the latest service that teaches English. A large number ofhousewives felt their lack of confidence in speaking the language hampered their

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interactions with their children but now they are being benefitted from this initiative ofTata Sky. The mothers were happy to learn in the confines of their bedroom. Researchalso showed that a full course could create tension with the husband who would keep atab on the wife's progress. Sources claim that 100,000 people have signed up for theservice of English teaching and another 1,500 or so are joining every day. These

services have been priced at Rs 30 a month but one on cooking is at a slight premium.

Brand Management Of Tata Sky

1. REVOLUNISE TELEVISION VIEWING

TATA SKY is offering a variety of channels ranging from entertainment, sports, movies,

music, news, documentation in DVD player and CD quality sound.

2. EXTENSIVE CUSTOMER SERVICE NETWORK

It is using 3000 service engineers in call centers to provide the good service for their

customers. TATA SKY takes direct responsibility to provide its vouchers, hardware

through popular consumer electronic stores to enhance customer convenience.

3. OFFERING

TATA SKY offers all popular television channels with local language channels

according to the demand.

4. PARTNERS

It has so many valuable partners for ex. TCS, THOMSON AND HUMAX world leaders

in digital broadcast technology, SUN MICROSYSTEMS, NDS(leading provider of

technology for pay television) etc.

5. INCEPTION AND HERITAGE

TATA SKY is joint venture between the TATA group and STAR. So its providing good

experience to its customer through its satellite TV service.

6. TATA BRANDTATA Group is one of indias largest and most respected business group. It comprises

operating companies in seven business sector Information systems and

communications, engineering, materials, services, energy, consumer products and

chemicals.

7. SKY BRAND

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The SKY brand owned by the UK based British SKY broad casting group, brings to

TATA SKY the reputation of more than 20 years experience of satellite broadcasting.

SKY is well known for the innovative products and services launched by BSKyB.

It is also true that any operator has to acquire 5 to 6 million subscribers, who should

each pay Rs 300 a month, to break even and Tata Sky is about to do that in order to

have a remarkable market share in this DTH industry.

Analysis of Challenges For Sky TATA

Here are some of the major challenges that Tata Sky can face in the near future:

1. IPTV provides superior technology if implemented. MTNL & BSNL has already

planned to tap this line. So, it can be a considerable threat due to its new level ofinteractivity.

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. Cap on Investment (20%)

9. Interoperability Regulations

10. ARPU is reducing, but government/regulator is not relaxing any Tax fee.

Market Research

Design/methodology/approach An online survey was floated to around 140respondents in India out of which a total of 100 responses were collected and analyzed.

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The respondents were surveyed on their Awareness, Knowledge, satisfaction,perceived brand value and Purchasing Behavior of DTH services.

Research limitations/implications The sample space of respondents was limitedlargely to adults between ages 24-35 with majority of them being employees of TCS,Tata Motors, Barclays and Eaton. A larger and more demographically diverse sampleset could have provided more prudent results. Hence, the current study could onlyprovide tentative conclusions. The type of sample was through convenience sampling.

Practical implications The conclusions drawn in this paper can help TATA Skydiscover the important factors impacting buying behavior of Indian consumers. This inturn can help marketers formulate effective promotional strategies for DTH products inIndia to increase market penetration.

Research Methodology

Methods of Data Collection:It details the procedure necessary for obtaining theinformation needed to structure or solve marketing research problems. The presentstudy is a descriptive research and involves the use of Survey Method. Electronicsurvey methods can be used as the mode of administration.

Questionnaire Development:

The questionnaire was structured as follows.

21 questions were asked. The questions were asked to assess consumer knowledge,awareness, brand value, and finally purchase behavior.

The answers were graded on likert scale

Procedures

Since our study was targeted to Indian urban youth, most of whom have access tocomputer, convenient sampling was chosen. Excel sheet based questionnaire wasfloated and sent to respondents fitting the target respondent profile.

Limitations

1- The sample size is restricted to an age group of 24-35. A larger sample covering awider age range could have provided additional insights about the purchasingbehavior of the various age groups. The sample size can also be increased toensure better reliability of responses.

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2- The present survey was self-administered. There is a chance that questions relatedcomparison between cost, brand may have been biased as many respondent wereknown to us and survey was not random.

3- The survey was conducted with people with similar education level, income andprofession. A better variation in terms of education and socio economic class mighthave thrown different lights on this issue.

Analysis of Data(Refer Appendix for survey questions)

Q7. Are you aware of DTH? YES/NO

YES95%

NO

5%

YES

NO

Interpretation: So from the survey, it is evident that 95% of the respondents wereaware of DTH system. Since the survey was conducted mainly in urban areas of puneand Bhubaneswar, most of the educated mass seems to know about these DTHsystems.

Which brands of DTH System are you aware of?

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TATA Sky

60%

Dish TV

27%

Airtel

6%

BIG

6%

SUN Direct

1% DD Direct Plus

0%

TATA Sky

Dish TV

Airtel

BIG

DD Direc

SUN Dire

Interpretation: 60% of the respondents intend to buy TATA sky. So, it is very much aprominent part of consumer consideration set.

Please indicate how important it is to you that a DTH have each of the followingcharacteristics.

0

1

2

3

4

5

6

7

8

9

Price

Durability

Picture Quality

Brand

Technology

Power

Consumption

Innovative

Products

Channel

Packagaing

Customer

Service

Interpretation: Price and technology is the most determinant factor in DTH sector as

many of them provide similar contents. This is closely followed by channel packagingand innovative products. Since only big players have jumped in to DTH sector, brandname is not as important, it is already given considering scale of investment.

Who Influences the most for the purchase of TATA Sky?

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Friends

27%

relatives

10%Media

44%

Spouse

5%

Dealers

9%

Children

5%

Friends

relatives

Media

Spouse

Children

Dealers

Interpretation- Media is clearly winner here closely followed by friends. Most of theurban consumers get influenced by Advertisements, promotional events on internet.

Though channel like active Kids are catching up but still a long way to go beforeinfluencing buying decisions.

Which is the most important attribute that makes you purchase Tata Sky Dish TVconnection ?

Interpretation:As expected, there is heavy completion in DTH market. Surprisingly,many of the consumers feel that picture quality of TATA Sky is lot superior than otherdish TV connections. TATA brand is always associated with value for moneyperception.A combination of this is a determinant of purchase of TATA Sky.

What is the USP of Tata sky ?

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0

5

10

15

20

25

30

35

40

Service HD Tata Sky+ Packages

Interpretation:TATA Sky plus followed by HD is the USP for TATA Sky.

What are those additional things that will make TATA Sky more attractive ?

0

10

20

30

40

50

Rechanrge

Discount

Loyalty

Benefits

Gift

Vouchers

More

customer

service

Interpretation: Consumers will like more discounts on recharge and also benefits ofbeing long term consumers. TATA Sky already provides some discount but Dish TV hasmore discounts than TATA Sky.

Which of the following is a showstopper for Tata Sky Services?

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0

10

20

30

40

50

price Packages Service Technology

Interpretation: Many big players are offering similar contents in lesser price and it isslowly becoming a price sensitive market. TATA Sky channel packages and pricingneeds to improve.

How would you rate technology platform of Tata Sky Services ?

0

10

20

30

40

50

Very

Advanced

Advanced Normal Poor

Interpretation: Users view TATA Sky is advanced. They are pioneers in software

industry thru TCS and TATA InfoTech brand. They also have global tie up with variouscompanies.

Which would be the best medium to inform you about these

products?

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0

20

40

60

%of respondents 5 7 12 10 15 52

Magazin Pamphlet Billoboar Radio Newspap TV

Interpretation: Television is the best mode of communication message to the targetaudience; it is the most influencing means of conversing.

Would you recommend any of the following to your friends and relatives?

0

10

20

3040

50

%of respondents 41 35 5 10 1 10 \

TATA Sky Dish TV Big AirtelDD

Direct

Sun

Direct

Interpretation: Customer satisfaction is high and most of them will recommend TATASky to their friends and relatives.

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Recommendations

PRODUCT:

1. Use common Dish per house for Multiple Television sets

2. Combined Product with Television - Rural Areas, especially and Niche Segment

Targeting if Combined with LCDs

3. Connectivity with other digital Monitors like Laptops for Commercial Usage

4. Guide can be displayed in Multiple Regional Languages

5. Voice over in Multiple Languages (Currently limited availability in for some

programs)

6. Inclusion of Radio Reception. Development of Visual Radio service.

7. Variety in Movie Listing with Bollywood, Hollywood and Regional Channels

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

10. Stock Market related interactive service on Active

PRICE:

1. Free Set Top: Following the line of Dish TV, Set top Boxes can be given free while

ensuring lock in by providing base pack free for limited time duration, thus inducing

update to next level.

2. Lock in of 1 year: Ensure long term lock ins by providing incentives for pre payment

of long term charges. Continue with current strategy of providing 2 months free on

payment of 10 months services.

3. Multiple Connections: Provide discounts for consumers buying second Tata Sky

Connection (up to 50% off)

4. Encourage References: Provide discounts on Monthly charges if reference from

existing consumer becomes a new customer.

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5. Regional Disparity: Provide free regional packs in local areas to ensure switch from

Cable TV to DTH service, i.e. provide free south Jumbo pack for customers in all

Southern States.

6. Community Dish: Provide Incentives in the form of Free Months charges for first 3-6

months and reduce the Installation charges per flat.

7. Postpaid: Some clients depending upon few background check criteria can be given

Billing service i.e. Payment at end of Month

PLACE:

There is a lot of scope of increase in the number of customers across all the states.

Here are some recommendations:

1. Include the local cable operators as distributors. Staff of cable operators can be

made the distributors for Tata Sky (familiarity with people). Attractive options can begiven to them to become distributors.

2. More target on rural market. Because the Rural TV households is growing by 3-4million each year, but only 2-3% of them have access to cable(55 million TV sets inrural area). Strategies for the rural sector can be like Customizing offering,Educational Package, appointing the village head as Distributor and this can besupplemented by giving the connection to village head free for initial period.

3. Setting up Mini Theatres in rural sector to promote the Product with events likeCricket matches, movies etc. and can be the Point of Sales for Tata Sky.

PROMOTION:

The promotional strategies are already suggested in branding strategies section.

MARKET PENETRATION

Tata Sky can penetrate the market by:

1. Proving Competitively Priced Services (because customers feel Tata Skysprice is bit higher than other DTH operators)

2. Innovative and Superior Technology3. Interactive Services4. Better customer Support

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MARKET DEVELOPMENT

Tata Sky can enter new markets by entering:

1. Expansion in Rural Markets2. Entering Neighboring Countries (provided license available), EnterCommercial Space Offices , Coffee Shops, etc.

3. Enter Travel Sector

PRODUCT DEVELOPMENT

The product can be further developed with evolving time:

1. Combined with TV2. Combined Dish for multiple Television (Society or Each Flat)

3. Target at educational needs in Rural areas where it could be used.4. Stock Market Ticker and analysis can be included in Active

Appendices And Annexure Questionnaire

1. Name:

2. Age: Sex: M/F______3. Occupation:

4. Family income in Rupees per annum:

a. Less than 1 lakhs b. 1 lakhs to 5 lakhs

c. 6 lakhs to 10 lakhs d. above 10 lakhs

5. Are you aware of DTH? YES/NO

6. Which brands of DTH System are you aware of?

TATA SKY DISH T.V SUN DIRECT DD DIRECT PLUS BIG TV AIRTEL

DIGITAL

7. Which of the following DTH brands do you recall having seen in any advertisement?

(tick the ones)


DIGITAL

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8. Which DTH System brands do you intend to buy? Select the only one applicable.

TATA SKY DISH T.V SUN DIRECT DD DIRECT PLUS

BIG TV AIRTEL DIGITAL

9. Please indicate how important it is to you that a DTH have each of the following

characteristics.( Check the box for each characteristic)

Not At all Important Extremely Important

Price 1 2 3 4 5 6 7 8 9

Durability 1 2 3 4 5 6 7 8 9

Picture Quality 1 2 3 4 5 6 7 8 9

Brand name 1 2 3 4 5 6 7 8 9

Technology 1 2 3 4 5 6 7 8 9

Power

consumption

1 2 3 4 5 6 7 8 9

Innovative

products

1 2 3 4 5 6 7 8 9

Channel

Packaging

1 2 3 4 5 6 7 8 9

Customer Service 1 2 3 4 5 6 7 8 9

10. Who influences the most for the purchase of your TATA SKY?

Spouse Children Relatives Friends

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Dealers Media

11. Which is the most important attribute that makes you purchase Tata Sky Dish TV

connection ?

Price Picture Quality Brand Suggestion of Relatives Friends

Media Technology Innovative products and packages

12. Which pack you use most of times?

South Sports Dhamaal Mix Pack Supreme Sports Kids Pack Grand Sports

Pack

13. What is the USP of Tata sky ?

Service HD Packages TataSky+

14.What are those additional things that will make TATA Sky more attractive ?

Discount in recharge Loyal customer benefits Gift vouchers

Surprises More customer services

15.How did you learn about TATA Sky brand?

Media (TV, Newspaper, Radio) Internet word of mouth other

16.Which of the following is a showstopper for Tata Sky Services?

Service Technology Packages Price

17.How would you rate technology platform of Tata Sky Services ?

Very Advanced Advanced Normal Outdated

18. Which brand of DTH system do you own?

50


51/52


DIGITAL

19.Which would be the best medium to inform you about these

products?

Magazine Pamphlets Newspapers

TV Advertisements Radio billboards

20. How would you rate the overall performance of your TATA SKY?

Good Fair Poor Bad

21. Would you recommend any of the following to your friends and relatives?


DIGITAL

Bibliography

http://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_prof

ile

http://www.tatasky.com

http://broadbandforum.in/sun-direct-dth/25416-compare-channel-list-price-tatasky

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG225.htm

http://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vs-

tata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.html

http://www.saveondish.com/forum/T-indian-dth-market-forecast-to-2012

http://www.tataskyplus.com/

51
http://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_profilehttp://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_profilehttp://www.tatasky.com/http://broadbandforum.in/sun-direct-dth/25416-compare-channel-list-price-tataskyhttp://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG225.htmhttp://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vs-tata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.htmlhttp://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vs-tata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.htmlhttp://www.saveondish.com/forum/T-indian-dth-market-forecast-to-2012http://www.tataskyplus.com/http://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_profilehttp://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_profilehttp://www.tatasky.com/http://broadbandforum.in/sun-direct-dth/25416-compare-channel-list-price-tataskyhttp://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG225.htmhttp://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vs-tata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.htmlhttp://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vs-tata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.htmlhttp://www.saveondish.com/forum/T-indian-dth-market-forecast-to-2012http://www.tataskyplus.com/


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http://www.managementparadise.comhttp://www.thehindubusinessline.com/today

s-paper/tp-marketing/article1004127.ece

http://www.trueknowledge.com/q/what_is_the_slogan_of_tata_sky
http://www.thehindubusinessline.com/todays-paper/tp-marketing/article1004127.ecehttp://www.thehindubusinessline.com/todays-paper/tp-marketing/article1004127.ecehttp://www.thehindubusinessline.com/todays-paper/tp-marketing/article1004127.ecehttp://www.thehindubusinessline.com/todays-paper/tp-marketing/article1004127.ece

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