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GET - TV

کی سب گئ کھلقسمت

THE PRODUCT• Basically providing an alternative to Cable Television services

• Introducing Satellite TV in Pakistan

• Features:• HD Quality • Interactive television• Video on Demand• Huge music and games library• More than 200 channels• All local and international channels

• Digital Video recording Service

• Ability to Pause and Rewind Live TV and skip commercials

• Watch Everything, Anywhere with your Smartphone/Tablet (requires broadband connection)

• Parental Control• Search and Scan banner with combo box view

• Multi-TV connections

Survey Results

• Yes77%

No23%

Is there conflict between family members on what channels to watch ?

Survey Results

• Yes62%

No38%

Do you have a need to record Live TV/Channels ?

Survey Results

•

Yes34%

No66%

Are you satisfied with the quality of your cable provider?

Market Research Analysis• There was a gap in the market

• 80% of people were willing to pay for HD in the current price range

• In the long-run, if economies of scale can be achieved, then a greater market can be catered to by reducing price

PLACE• Intensive Distribution concentrated in Punjab, especially Lahore

• Provide Get-TV to the distributers who in turn supply it to dealers

• Dealers will sell and install the initial equipment and request for activation of service from customer care center

• Set up booths in Hypermarkets like Metro and Hyperstar and prominent electronic stores

• Trained salespeople who will help to explain the features of the device and the advantages of it to potential buyers

• Our emphasis is to build capacity in our team to develop subscriber relation management and customer relation management calendars which will help in timely collections and to upgrade offers

• We will also have a website which will allow the customers to buy the device and their required package online

PROMOTION• As it is a new product in the market, we will use a 360 degree marketing approach using multiple platforms

• TV, Print Advertisement, Billboards and Digital Media (Internet etc.)

• Special Packages for events of the year, e.g. Indian Premier League, English Premiere League, Olympics

PRICE• Introduce promotional offers like set top box free for 6-months advance payment

• The initial Cost range from Rs.6000-9650 ; depending on the features you want

• The ultimate package includes installation cost, DVR cost, DTH box cost and the satellite dish receiver cost

• Monthly payment will be Rs. 400 for the greatest number of channels and can be minimized to Rs. 300

• Interactive TV services and Video on Demand available at low cost

• A subscriber can pay through credit card on the Web or through the prepaid cards from the retail stores to be activated by telephone. Some clients depending upon few background check criteria can be given Billing service i.e. Payment at end of Month.

SITUATIONAL ANALYSISCustomer

Category Segment 1 Segment 2 Segment 3

Customer Relationship Groups

Butterflies True Friends Between Strangers And barnacles

Buying Decision Behavior Groups

Complex Buying behavior Dissonance reducing behavior

Between Habitual and variety seeking

Segment Targeting techniques

Focus on new features, its utility, its cost, and higher value delivery. Attack competitors

Focus on “Unlimited features” that we provide.

Focus on creating demand.

• Motivational drives (Benefits increase and costs decrease)

• Buying Process -Impulsive as well as careful comparison.

Company Strengths Affordable price and delivering higher

customer value. Our position is in customer sweet spot.

Great information transfer from grass root level.

No other product in the market is offering such an offer to the customer

First mover advantage

Weaknesses We are not enjoying economies of scale or

scope because we are new firm that is motivated to cover our cost as soon as possible and break even analysis show that it could extend from 6 months to a year.

Financial constraints

Opportunity Customer tastes are changing and switching

toward more portable way of recording and saving their favorite shows

Less red tapes and government terms and conditions on outsourcing from china

Some of the TV manufacturers are also interested in partnering with firms like us. In future we can also enter into an agreement with those

Threats Any change in the copy rights act will be lethal

for us because of nature of our product. There are competitors with deep pockets in

the market that can actually alter their offers that will increase their sales reducing ours.

Company

Positioning

Convenience

Price SMART TV

GET TV Tata Sky

Quality

Competitor •Actual = Smart TV, Dish TV•Potential = Cable television network•Strong Competitors with deep pockets•Competitive Strategy- Focus as well as Differentiation.•Valued disciplines - Customer Intimacy

Collaborator • Upstream (Dealers and Local Agreements)• Downstream (SALT cargo for importing). China Most important first degree manufacturer

Context/Climate

PEST ANALYSIS Political Factors

Copyrights Government policies not a

big deal as they are pretty relaxed for China

Economic Factors Inflation Business Cycle recovering

from recession

Social/Cultural Factors Changing Towards

modernization

Technological Environment China

FinancialsIncome Statement [Quarterly]

Sales Rs96,500,000

Fees Income* Rs9,000,000

Rs105,500,000

Less: Cost of Sales

Transport Costs (Carriage Inwards) Rs7,000,000

Outsourced Purchasing and Assembling Rs52,000,000

Rs59,000,000

Gross Profit Rs46,500,000

Less: Operating Expenses

Advertising Cost Rs4,500,000

Custom Charges and Taxes Rs22,000,000

Wages and Salaries Rs7,290,000

Other Costs** Rs12,500,000

Rs46,290,000

Net Profit Rs210,000

Notes

* Fee is a rough estimate calculated as 10000 x 300 x 3

** Other costs include fuel cost, depriciation costs, call centre costs

Forecasted Sale 1000 units

Price 9650 per unit

Monthly Charges 300

Assembling and Purchasing 5800 per unit

Custom and taxes 20% of selling price

Financial RatiosUnit Cost: variable cost + fixed cost =5200 +2200 + 31290000

Unit sales 10000

= 10529

Contribution Margin = price – variables cost

price

= (9650+ 900) – 7400 = 0.30

(9650+ 900)

Mark up price = unit cost = 10529

(1 – desired return on sales) (1- 0.002)

=10550

Break Even AnalysisBreak Even Volume: fixed cost = 31290 000

Contribution margin 0.30

= 104300 000

Break Even Units: 104300 000 = 9887 units

10550

Break Even Analysis• Break-Even will be in approximately 6 months

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Risk and Contingency• External risk may come from the competitive environment and/or legal challenges (regarding torrents)• Contingency: Diversification

• Labor laws in china • Contingency: Move work to Africa