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Direct To Home

ESSENTIALS OF
MARKETING
DTH (Direct to Home)

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INDEX
Topic Page No.

1. Introduction – Direct To Home. 3


2. Current Players in Direct To Home market. 4
3. Market Share. 7
4. Dish TV 8
• Segmentation 8
Geographic 8
Demographic 9
Behavioral 10
Psychographic 11
• Positioning 12
• Targeting 13
• Strategies 13
Are the current strategies successful? 15
5. Tata Sky 16
• Segmentation 16
Geographic 16
Demographic 17
Behavioral 18
Psychographic 19
• Positioning 19
• Targeting 20
• Strategies 20
Are the current strategies successful? 22
6. Alternative Strategies 23
7. References 23
8. BCG matrix – Essel Group 25
9. Strategic Business Units 36
10. BCG matrix Plot 37
11. Product Portfolio 38
12. References 39

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Direct to Home (DTH)


India has about 130 million TV homes of which, Cable & Satellite (C&S) services are
present in 97 million (74%) of the homes (www.financialexpress.com/news/thats-
entertainment-direct-to-home/497502/).The DTH market in India comprises 11% of the
total market with almost 15 million homes. The DTH industry growth lagged to 10.3% in
2008 from 16.7% a year earlier. But industry 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 that’s the number that every DTH brand has set its
sights on. By 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog
cable will follow with only 20% market share. The DTH service market in India has
emerged as one of the most lucrative markets which have successfully resisted the
impacts of the current economic slowdown. The slowdown has certainly proved a boon
for the Indian DTH industry as people have now started to cut on their entertainment
expenditure and instead of viewing movies at theatres, they are preferring to stay at home
with their television sets.

The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009 and
the numbers are forecasted to surge further at around 30% through 2012.So apart from
Tata Sky, Dish TV, Airtel Digital and Reliance BIG, southern heavyweight Sun TV has
entered the fray with Direct, while Videocon has entered the market in June 2009.

Still, as DTH is still a relatively new category and most people were hesitant to
experiment with it. While Indian consumers were not completely satisfied with their
cable services, they did not feel the need to switch over to any other means of
entertainment. It was therefore imperative for companies such as Tata Sky, Dish TV, and
Reliance BIG TV to educate the consumers about the advantages of the service and in
turn create an urge to invest in it.

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Current Players:
The current players in DTH industry are:

1. Dish TV - Zee group

Dish TV is a venture by the Essel Group and was launched in 2004. Dish TV is
India’s first private player in DTH industry with a presence in 19 states. It has a
subscriber base of 5.07 million (March2009).
(http://voicendata.ciol.com/content/service_provider/109080102.asp).It has a bouquet
of over 240 channels to choose from. Recently Dish TV has launched an entry-level
subscription at Rs. 99 per month with the largest offering of 110 channels

2. TATA Sky – Joint venture between Tata Group and UK-based British Sky

Tata Sky was incorporated in 2004. TATA is one of India's largest and most
respected business conglomerates and the SKY brand, owned by the UK-based
British Sky Broadcasting Group has over 20 years of experience in satellite
broadcasting. It launched its services pan-India in August 2006.Within a short
span of time it garnered a subscriber base of nearly 4 million (Aug 2009)
(www.tvnext.in/news/155/ARTICLE/2142/2009-08-06.html).It has over 168
channels to choose from. Tata Sky has launched an entry-level subscription plan
called ‘Super Hit Pack’ at Rs. 99 per month with a bouquet of 53 channels. Tata
Sky recently launched Tata Sky Plus which uses the personal video recording
(PVR) technology that allows consumers to record live.

3. DD-Direct + -Owned by parent company Doordarshan

DD Direct Plus was launched in December 2004 by Doordarshan. It was India’s


first DTH service offering about 59 TV channels and 21 radio stations. DD DTH is
a free service and has acquired a subscriber base of 60–70 lakh connections (July
2009). (www.dnaindia.com/money/report_prasar-bharati-dth-moving-to-pay-
mode_1277779)

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4. Sun Direct - Rs 1000-crore Indian DTH television network based in Chennai


from Sun group.

Sun Direct is a DTH service in India headquartered in Chennai, Tamil. Sun Direct
is an 80:20 joint venture between the Maran family and Astro Group of Malaysia.
With 170+ TV channels and 31 Radio channels, Sun Direct has a subscriber base
of 3 million (April 2009) (www.topnews.in/sun-direct-launches-hd-services-
crosses-3-million-activesubscriber-base-mark-2149664). Sun Direct has a basic
pack of Rs 75 monthly subscription which is the lowest price-point compared to
the other service providers.

5. Reliance BIG TV Limited – a part of Reliance Anil Dhirubhai Ambani


Group.

Reliance Communication a more recent entrant in the DTH space has the brand
name ‘Big TV’. It has aggressively priced packages as low as Rs. 1490 with an
offering of 64 channels and a three month free subscription in addition to 20
video-on-demand movie channels. Within a short span of time it garnered a
subscriber base of nearly 1.8 million (Aug2009)
(www.livemint.com/2009/06/21231941/Big-TV-to-go-on-a-content-acqu.html).
Big TV currently offers 202 channels. BIG TV focuses on VAS and claims to
have a next generation user guide which is indexed.

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6. Airtel DTH - Bharti Airtel Limited


The recent and much talked about player in the market is Bharti- Airtel. A teaser
campaign ‘See you at home’ was followed up by a multi-starrer campaign with
celebrities like Saif Ali Khan and Kareena, Vidya Balan and Madhavan and Indian
cricketers Gautam Gambhir etc.It has a subscriber base of 1 million (June 2009)
(www.indiandth.com/2009/08/airtel-digital-tv-mops-up-one-million.html) and has a
bouquet of over 138 channels and world space satellite radio to choose from. Airtel
Digital has a basic pack of Rs 99 monthly for South and Rs 125 monthly for north.

7. Videocon D2H

Videocon – the big Indian consumer durable player launched itself in the DTH market in
June 2009 through its media arm Bharat Business Channel (BBCL). Right now it has
offered services in Punjab, J&K, Chandigarh, Haryana and Himachal Pradesh with
packages as low as 150 per month. Advantage over other players is that Videocon already
makes analog set top box hence they are likely to manufacture Set Top Box for their
DTH service as well.

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MARKET SHARE:
The current Market Share is:

• Dish TV – 32.56%
• Tata Sky – 25.69
• Sun Direct – 19.27%
• Big TV – 11.56%
• Airtel Digital TV – 6.42%
• Others – 4.5%

PROJECTED GROWTH RATE:

(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)

TOP TWO COMPANIES:


The two major companies vying for the top slot in DTH are Dish TV and Tata Sky.

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Dish TV is India’s first direct to home entertainment service started in 2004. It is an Essel
Group initiative using MPEG-2 digital compression technology. Dish TV provides 240
digital channels and 40 services.

SEGMENTATION:
GEOGRAPHIC SEGMENTATION:
Urban and Rural:
Dish TV has equal distribution of subscribers in urban and rural markets. The cable-dry
rural markets had been their strength when they launched their services first in these
markets. In rural areas, Dish TV runs fleet of vans for demos, installation as well as
selling hardware and pre-paid vouchers.

Region and States:


It has come up with special offers for the southern region where regional and sports
channels are viewed the most. Like Ultimate sports bonanza offer - Rs 1890 with 3
Months of South Silver subscription available in Tamil Nadu, Kerala, Karnataka &
Pondicherry only. Ultimate sports bonanza offer - Rs 2490 with 12 Months of Silver
subscription available in Andhra Pradesh only. Dish TV has structured a basic bouquet of
customized package of channels which are in demand in a particular state at a very
affordable price pack like North diamond pack and South diamond pack. Dishtv also
added two more Marathi channels namely Star Pravah and Star Majha on its platform for
its Marathi speaking customers. Besides these Dish TV has also launched Rest of India
and South pack in scheme of new packages, targeting north and south India consumers
separately.

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DEMOGRAPHIC SGMENTATION:

AGE and GENDER:


As the market gets fragmented, niche channels will become more and more desirable.
The increased interest in unique content channels is in line with the international trend,
where once the market matures, consumer needs come into focus. Thus channels on
Education, Women, Gardening, a variety of Sports, Wellness and Religion, etc. make
their appearance, dishtv will be launching several of these niche channels to create a
unique and exciting offering for its viewers of every age and gender segment. Dish TV
recently launched ‘Children Films Festival’ with a bouquet of over 25 super-hit films
across various categories priced at Rs. 25/- per movie thus targeting the children segment.
Besides this value added services like Games Active, Bhakti active services etc carters to
needs of customers from various age groups and gender.

INCOME:
Recognizing the vast differences in tastes and pocket sizes of different consumer
segments, content has been aggregated and classified into 4 different packages namely
MAXI, WELCOME, FREEDOM PLUS and FREEDOM packages .While the Maxi and
Welcome packs are price drivers and target high ARPU consumers, the value pack
offerings in Freedom and Freedom Plus packages are volume drivers that inspire new
subscribers to come on board through a low price point and basic channel offering. The
strategy is to gradually upgrade the low ARPU subscriber too, through tailor made add on
packs on a-la-carte like movies, business, etc. basis for specific entertainment needs.
Keeping income levels of consumers in mind, Dishtv apprises the consumer of its three-
tier pricing. It gives a choice to the consumer to select from a three level flexi plan that
bundle three, six or 12 months of subscription along with the initial box.

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FAMILY SIZE:
Dish TV came out with the “HAPPY HOME” pack offering Dish TV with 12 months for
Rs 1990 aimed at families where the number of viewers is less and watch only niche
channels. Happy Home pack caters to entertainment needs of all the members of the
family in all age groups.

BEHAVIOURIAL SEGMENTATION:
OCCASIONS:
Dish TV comes out with new offers of channels or new buyer schemes at relatively
cheaper rates on occasions of festivals or major sports events. In the past Dish TV has
come with schemes like Pay for Welcome and Watch Maxi (October 2006), ‘Diwali
Double Dhamaka’ (November 2007), the IPL Pack (April 2008), 'Summer Sports
Bonanza' (June 2008), Special Onam Offer for Kerela (August 2007), World cup offer
(March 2007).

BENEFITS:
Dish TV offers benefits to customers like:
• In a cricket match choosing the language of the commentary, camera angles,
know player statistics and watch match highlights at our will.
• Surf through hundreds of channels using a mosaic screen showcasing all channels
of a single genre.

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• Subscribers can order and watch Hollywood, Bollywood and Regional


blockbusters whenever they want, with no ad breaks and the subscriber can watch
it multiple times within 24 hours.

• Using EPG, one gets an easy and friendly display of the program schedule on all
channels and is loaded with amazing features such as programme alert, parental
lock, channel sorting, creating lists of favorites and so on.

• Unique feature where subscribers can choose from multiple languages on select
channels.

USER STATUS:
Every product has its non users, ex-users, potential users, first time users and regular
users. In order to attract the non users and potential users Dishtv with a finger on the
consumer pulse has time and again brought innovative and exciting consumer promotion
offers into the market. Schemes like World Cup Free Offer, Free bhi Zyaada bhi, Ab Sab
Sikandar, and the landmark Set Top Box Free Offer, have not only added to the pace of
acquisitions but attracted specific consumer audiences like sports lovers and kids into its
fold.

PSYCHOGRAPHIC SEGMENTATION:
Dish TV has successfully segmented the market through an expanded product range at
appropriate price points. By offering packages like cinema active, khel active, movie
active, music active is targeting people with specific lifestyles. Premiering new movies
within weeks of their releases is targeted at people who want to see latest movies at
affordable prices. Dish TV premiered movies like Delhi-6 and Aa Dekhen Zara within
weeks of their release. Dish TV has also targeted the youth segment with offers like
“Michael Jackson Live in Bucharest tour” for just Rs 25, Microsoft Xbox 360
Arcade.

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POSITIONING:
“Dish Karo, Wish Karo
Thoda aur wish karo
Dish karo”
With this Dishtv made a very confident entry into the psyche of every Indian viewer by
asserting itself as the clear DTH champion. Moreover it positioned itself as a far better
and a smarter option to cable TV which apparently is enjoying a relatively a larger
viewership. The brand ambassador of Dish TV, Shah Rukh Khan urges the viewers not to
be complacent with the smudgy and faulty cable service. A simple line, “Santusht with
your cable TV? Thoda aur wish karo, dish kar” inspired millions of Indians to shed their
inhibitions and move up in life. The entire nation wished with dishtv, through a
breakthrough campaign that not only amplified dishtv's image, but revamped the entire
DTH category as a whole. It questioned the attitude of our countrymen who are ever
satisfied with sub optimal services. It further encouraged them to switch from poor
service of cable TV and start wishing for much better quality entertainment with dishtv.

But Dish TV has repositioned itself with a new tag line which says “Sabse Zyaada”
means:
” Dishtv Offers Sabse Zyaada Entertainment
Sabse Zyaada - Number of Channels
Sabse Zyaada – Regional Channels
Sabse Zyaada Genre
Sabse Zyaada - Value at Every Price Point”
The reason for this being that two years back, when Dishtv launched the Wish karo
campaign, they were competing with cable operators and the poor quality of delivered
content but now with rising competition among DTH players, there was a need to re-
establish their brand as the largest content provider. “Sabse Zyaada” is a positioning that
clearly brings together the differentiation of Maximum Entertainment and Maximum no.
of Channels and Maximum Value offered by Dishtv in a powerful way.

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TARGETING:
At the start when Dish TV was making an entry into the Indian market, it targeted DD
Direct+ customers.

But now being an established player in DTH market reigning at no.1 slot, Dish TV has
revamped its targeting strategy. Dishtv has become a brand to reckon with. The name
dishtv is highly salient and almost generic to the category. Due to aggressive advertising
and media presence, today the brand enjoys top-of-mind recall and recognition by
consumers across markets. Dishtv has the king of entertainment- Shah Rukh Khan, as the
ambassador to endorse its brand. An iconic figure and a mass drawer, SRK signifies all
that dishtv stands for - entertainment personified tech savvy, family appeal and leadership
status. This association has resulted in an enhanced brand recall and brand image, which
is also reflected in the incessantly growing sales figures. Besides this, giving new
connections at a reasonable price, Dish TV also offers hosts of active services for their
value-added channels — which air things other than the usual television programmes,
such as, gaming, education, virtual pilgrimage, and so on. But Dish, in addition to the
others, has ICICI Active. It is a co-branded channel that tells you all about ICICI Bank,
the country’s second-largest lender after State Bank of India, and its services, including
an EMI. From time to time Dish TV comes up with various promotional offers in form of
coupons or set top box free to encourage customers to make mental commitment to buy
their product which increases the brand purchase intention of the customer.

Dish has set aggressive targets for 2009-10. It aims to add another 2.5 million
subscribers, to take the gross subscriber base to over 7.5 million subscribers. The
company is also looking at additional revenue through carriage fees and advertising
generated on the clean-feed of select foreign channels.
(http://www.business-standard.com/india/storypage.php?autono=351678)

STRATEGIES:

Since its launch, Dish TV has leveraged the first mover advantage be it with “dish-har-
chhat-par" in April 2005 and Dish Freedom Package” plan in January 2006. The aim was
quite clear - the slashed pricing will lure more customers to the Dish TV service, while
increasing the penetration and aimed at making DTH entertainment affordable to
everybody. At the Start, Dish TV did not worry about profitability. Their main concern
was to allow the market to expand, acquire customers, keep them locked over a longer
period, and then make them pay more for various services. The strategy was to mobilize
the cable dark and rural subscribers.

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Now that Dish TV is the ruling player in the DTH market, the strategy has changed
because before Dish TV was competing with cable operators and trying to acquiring a
foothold in the DTH market but now with rising competition among DTH players, there
was a need to re-establish their brand as the largest content provider from other new
players. Some of the Dish TV’s current strategies are:

 Dish TV has not only used its existing substantial transponder capacity to its
advantage, but also planned to augment it in the mid to long run. In a market of
400 plus channels that is rapidly getting further crowded, coupled with dearth of
carriage capacity, this strategy will definitely pay off in the future.
 Teleport services for up linking the channels. The company is also in the business
of providing teleport services (up linking and space segments) to the broadcasters
of various channels.

 For acquiring advertisers:

1. SMS campaign to entire Dish TV sub-base.


2. Providing advertising options - Sponsorship opportunities on Movie on Demand
(6 break free movie channels), Branding opportunities on Active Services, Promo
options on Interactive channel 999, Interactive targeted contests.
3. EPG Branding on Dish TV Information bar.
4. E-mailers to Dish TV sub-base.
5. Presence on the Dish TV website.
6. Sponsored Product / Brand Catalogue on News Active.

 Customer Acquisition strategy:


1. Focused marketing leading to creation of a BRAND – SRK campaign.
2. Largest content offering and digital viewing experience.
3. Aligned dealer incentive structure-Higher incentives for subscriber at higher
packs.
4. Competitive pricing, A-la carte offerings and ease of making payments.
5. Distribution and after sales service. Pan-India presence through 800 distributors &
48,000 dealers across 6600 towns as of Jun 09.
6. Dish TV's attractive pricing strategy

 Customer retention strategy:


1. Promotions and dealer incentives offered on an ongoing basis to retain customers
through innovative packages.
2. Packages to suit every palate.
3. Niche Content.
4. Providing Value-Added Services (VAS) – foray into e-banking, ticketing, job
search, matrimony services, sharing infrastructure with other service providers.
5. Over 350 Dish Care Centers (DCCs) & service franchisees providing installation
and after sale-service as of Mar-09.
6. In-house call centre, operating 24*7 with capacity of up to 800 operators.

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ARE THE CURRENT STRATEGIES SUCCESSFUL?

A charismatic brand ambassador coupled with a good product has made Dish TV India’s
No. 1 direct-to-home company. The strategies applied by the company are attracting new
customers to its fold and thus increasing its subscriber base.

• With marketers constantly clamoring for innovative means to break through the
clutter and reach their target audiences accurately with minimal wastage and cost
effective media, Dish TV presents a great opportunity. The sheer volume reach
along with low clutter, customer segmentation opportunities, product interactivity,
and effective costs has made Dish TV an attractive proposition for advertisers and
agencies alike.
• Pricing, value-added-services like movie-on-demand (MOD) and pay per view
(PPV) are features are successfully adding to brand value of Dish TV.
• The ‘showcase’ strategies of Dish TV which aired movies Fashion & Hancock ,A
Wednesday, Da Vinci Code and premiered Dev D, within 3 weeks of its
Theatrical Release on a pay-to-view model worked with great success.
• Many potential subscribers, particularly in rural areas, are wary of subscribing to
DTH in the absence of a good after-sales network. Dish TV has successfully
countered this problem by pan-India presence through 800 distributors & 48,000
dealers across 6600 towns.
• The companies focus on aggressive subscriber customer acquisition strategy
through offers like ‘Set Top Box Free’, ‘Happy Home’, ‘Aapki Wish Aapka Pack’
and ‘Recharge Free’ has paid off. Dish being relatively cheaper is being favored
by the largely rural families and those in remote areas.
• Dish TV brought Annitikanna Ekkuaa – A Mega offer customized for Andhra
Pradesh offering unmatched Telegu entertainment with 12 months subscription of
the South Silver Pack better then what other DTH players are offering in this
region.

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TATA SKY is a DTH Satellite Television provider in India, using MPEG-2 digital
compression technology. It is a joint venture between Tata Group that owns 80% and Star
TV that owns a 20% stake. TATASKY was incorporated in 2004 but was launched only
in August 2006.

SEGMENTATION:
GEOGRAPHIC SEGMENTATION:
Urban and Rural:

Tata Sky Primarily targeted urban audience but later Tata Sky has seen demands from
smaller cities grow after the introduction of its electronic programming guide (EPG) in
hindi. Tata Sky has been focusing on tapping various avenues to further its network,
particularly in the rural markets. Tata Sky, with presence across 35,000 outlets in 5,000
towns and cities, had earlier tied up with ITC e-choupal to. To expand its distribution
network and penetrate the rural market, the company has tied-up with ITC's e-Chaupal.
Further Tata Sky had introduced a Rs 99-a-month low-value pack for 53 channels to
increase penetration in smaller towns of the country. It also has B2B tie-ups with Infiniti
Retail's Croma, Tata Indicom and Pantaloon Retail in urban India. Tata Sky also offers a
Multi Dwelling Unit (MDU) solution for multi-storied buildings (common in urban
areas), with the option of using a single mini dish for the entire building.

Region and States:

Tata Sky has a pan-India presence. The company has climbed mountains and crossed the
oceans in its first few months it has installed services in Ladakh, Leh, and Kargil; and
also a first 'at sea' installation on an oil rig. It has come up with separate packs for north
like super hit or super value packs and south offering packs like south jumbo or south
value packs. Keeping in mind their diverse audiences, Tata Sky have several regional
channels covering Tamil, Malayalam, Telugu, Kannada, Oriya, Bengali, Punjabi,
Gujarati, Marathi and many more languages. SUN channels are also available on Tata
Sky as a part of the South Starter Pack, the South Value Pack and the South Jumbo Pack.
Also making cartoon network available in telgu.

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DEMOGRAPHIC SGMENTATION:

AGE and GENDER:

Tata Sky has offered host of services for its customers from every age and gender. Like:
Active Stories: For 2 - 7 year olds
A TV based story book that children can read and listen to at their own pace. Enjoy new
stories from the likes of Panchatantra, Jataka Tales and Indian mythology everyday on
your TV, at the press of a button.
Active Wiz kids: For 3 - 6 year olds
Designed specifically for preschoolers, Active Wiz kids is a television based service that
aims to continue a child’s learning process at home through a host of fun learning games,
rhymes and art & craft activities.
Active Learning: For 7 - 12 year olds
A quiz based education service with 50 new questions daily on Math’s, GK and Science.
Active Games: Interactive games for all ages on the TV.
Active Darshan: Essentially focused on customers belonging to older age groups.
24x7 darshan of the following temples: Shirdi Sai Baba, Mumbai’s SiddhiVinayak &
ISKCON and Kashi Vishwanath.
Besides this, active services like Active Matrimony, Active Cooking, Active Sports etc
carters to needs of customers from various age groups and gender.

INCOME:
In its constant endeavor to offer its subscribers with maximum choice and value, Tata
Sky offers multiple channel packages giving subscribers the freedom of genuine choice at
affordable prices. Recognizing the vast differences in tastes and pocket sizes of different
consumer segments, content has been aggregated and classified into following packages
namely:

FAMILY SIZE:
Tata Sky has something for everyone in a typical Indian family. Like Active Wiz kids for
the children, Active Darshan for grandparents, Showcase for the younger people, Active
Cooking for mother, Active Sports for father. Tata Sky has just started “The Friends &
Family” programme which is a reward based referral programme for eligible Tata Sky
subscribers where huge discounts are given to the refereed person and referring person.
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BEHAVIOURIAL SEGMENTATION:
OCCASIONS:

Tata Sky has offered new schemes at discounted rates on occasions of festivals or major
sports events. In the past Tata TV has come with schemes like watch the cricket world
cup final with Hrithik Roshan, round-the-clock service guarantee, match highlights
available on-demand after the match, commentary in regional languages (2007), sale of
digicomp set top boxes at discounted rates (diwali offer 2007), launch of Digital Video
Recorder (diwali 2008).

BENEFITS:

Tata Sky offers benefits to customers like:


• DVD Quality Picture & Sound: Enjoy over 170 TV channels and services in
DVD quality picture and CD quality sound.
• Customer support: 24x7 call centre’s & over 3000 engineers support in 11
languages.
• With Guide you can:
 Find out what’s playing on any channel up to 4 days in advance.
 Programme details of all channels can be viewed in English and Hindi.
 Set reminders for up to 50 programmes you wish to watch.
 Get synopsis of programmes.

• 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.

• Search & Scan Banner: Find out what’s playing on another channel without
changing the channel you are watching.

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USER STATUS:

In order to attract the non users and potential users Tata Sky has time and again brought
innovative and exciting consumer promotion offers into the market like Tata Sky+,
attractive active services, 99 a month value pack, 5 months of free viewing, Tata Sky
hardware for Rs 1,499, family and friends offer, 50% off on installation, 0% EMI
schemes.

PSYCHOGRAPHIC SEGMENTATION:
Tata Sky has successfully segmented the market through an expanded product range at
appropriate price points. By offering active services and by launching Tata Sky+, Tata
Sky is targeting people with specific lifestyles. Tata Sky offered movies like Slumdog
millionaire and 1920 in its showcase channel for people who want a private multiplex at
home. Tata Sky targeted the youth segment with by showing concerts like Beyonce –
Live at Wembley, AC/DC – No Bull concerts in their showcase channel. Active cooking
targets women where they can get nine new easy-to-cook recipes daily, from master chefs
across the country along with handy kitchen tips at the press of a button. Similarly Active
Mall is targeted at people who would like to shop for electronic appliances, household
goods and even mobile ringtones and wallpapers at attractive prices - from the comfort of
their home at any time most convenient to them.

POSITIONING:
With an aim to connect to all television viewers and create interactivity amongst its
audience, and dispel the fear that technological fuss creates in the mind of the layman,
Tata Sky redefined the language of technology. To this end, Tata Sky adopted its current
tagline "Isko laga daala, toh life jingalala!" (If you use this, life will be great!).

The brand's positioning is based on three aspects – better picture quality, the interactive
offering and customer service which can be seen in the advertisements like ‘elderly’
Khan virtually condemning Tata Sky for being so addictive (with a superior quality
viewing experience) that his son has started neglecting him, a dual role of a bickering
Punjabi husband and wife where Khan tells us about the pedigree of Tata Sky and inform
potential customers about Sky-the leading British Broadcasting along with the benefits of
Tata Sky and how it makes our life “Jingalala” or the Tata Sky plus advertisement where
Khan playing a mischievous husband to Gul Panag tells us about the benefits of plus,
Asins campaign down south tells us about the 24x7 customer service.

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Be it for a family or students Tata Sky has something for everybody. One can view the
schedule for the next 4 days for most of the channels, scroll down the list and put alerts
for the favorite programs, while watching one channel, we can get to know in a box at the
bottom what’s going on in other channels, we can watch channels like Pogo, Jetix in
regional languages (Telugu, Tamil) and we can select any language out of English, Hindi,
Telugu or Tamil. Tata Sky with its wide bouquet of services and unique offering has
indeed made life jingalala for many Indian families.

TARGETING:
As Aamir Khan, and rightly so, points it in the advertisement that Tata Sky has the trust
of brand TATA and the technology of Sky has made Tata Sky a brand to reckon with.
The name Tata is a well known brand which commands respect and trust among its
Indian consumers which gives an identity to the brand of Tata Sky and an edge in the
market. Also, due to its creative advertising, the brand enjoys top-of-mind recall and
recognition by consumers across markets. Tata Sky has Aamir Khan and Asin, as the
ambassador to endorse its brand. An iconic figure and a mass drawer, Aamir Khan makes
a perfect fit with the Tata Sky brand values of trust, high-quality entertainment and
innovation. While Asin, campaigning down south, is a young, energetic achiever and
enjoys a high degree of credibility with consumers down south. This association has
resulted in an enhanced brand recall and brand image. Tata Sky also offers hosts of
active services for their value-added channels — which air things other than the usual
television programmes, such as, gaming, education, flower delivery, virtual pilgrimage,
and so on. From time to time Tata Sky has come up with various promotional offers like
‘Family and Friends referral scheme’ and new products like Tata Sky plus to encourage
customers to make mental commitment to buy their product which increases the brand
purchase intention of the customer.

Tata Sky is targeting 8-million subscriber base by the year 2012.

(www.livemint.com/2008/10/14181532/Tata-Sky-launches-PVR-tech-ey.html)

STRATEGIES:

Tata Sky’s strategy is to capture the market by offering superior value. Consumer insight
shows that television is the only affordable family entertainment option available for
middle-class Indians today and they would appreciate any enhancement in their viewing
experience.

 Tata Sky gives people a new dimension in TV viewing, thanks to its 3Cs strategy:

• Choice: It offers more than 170 channels, with DVD picture quality and CD
sound quality.

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• Control: Viewers can control the content; watch four news channels
simultaneously, find out what's playing on all channels without changing channels
and, most important, parents can regulate what their children watch.
• Convenience: The viewer gets 4-day listing of all programmes on TV.

 The X factor — the excitement of interactive services. Tata Sky offers a bouquet
of interactive news, sports and games to subscribers all easily accessible with
some simple hardware.
 Using the DTH platform and its large subscriber base for generating revenue
through advertising like coca cola used the Tata Sky platform to promote its new
product Minute Maid Pulpy Orange.

 Tata Sky has adopted a 360-degree communication approach for its customers
through television, print, web, radio, outdoor media, call centre’s and direct
mailers, both in urban and rural areas. It has also made it a point to demonstrate
the service at high-traffic sites like airports, malls and exhibitions.
 Only TV service in this country which not only provides entertainment to kids
through toon channels but also educates them through its interactive channels.

 It undertook the most interactive step by walking into schools directly and
convincing teachers that children could learn multiplications and divisions
directly from TV.

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 Customer Acquisition strategy:


• Focused marketing campaign.
• Launch of Tata Sky Plus.
• Distribution and after sales service.
• Interactive services for all family members.
• Multi Dwelling Unit (MDU) solution.

 Customer retention strategy:


• Upgrade to Tatasky + by exchanging regular Tatasky.
• Active services.
• Alliance with Walt Disney Company India to bring Disney characters on its
interactive platform.
• Cartoon network in telgu for its subscribers down south.
• Tata Sky subscribers can suspend their viewing services temporarily on account
of vacation, travel, exams etc.
• 24x7 call centres and over 3000 engineers.

ARE THE CURRENT STRATEGIES SUCCESSFUL?

Tata Sky though launching late as compared to Dish TV has gained more than 4million
subscribers which indicates it’s growing at a healthy rate. Tata Sky’s growth has been
helped by strategies like:

 Multi Dwelling Unit (MDU) solution for multi-storied buildings, with the option
of using a single mini dish for the entire building has worked in favour of Tata
Sky.
 Tata Sky added the Sun TV bouquet of channels in Tamil Nadu which resulted in
a good surge in its subscriptions.
 It offers “Active” services pertaining to religion, sports and education. Its
Bangalore R&D centre produces original content in science, general knowledge
and mathematics, which is becoming popular in schools.
 Tata Sky plus is getting Tata Sky new customers. With Tata Sky plus the viewers
can pause+ record+ rewind LIVE TV.
 Tata Sky exchange offer for Tata Sky Plus at a discounted rate has gone down
successfully with its customers.
 Schemes like 50% off on installation; friends and family referral programs have
been adding to its customer’s numbers.

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ALTERNATE STRATEGIES:

 Generate TRP’s – 24 hr broadcast for Roadies, Indian idol and other most
watched TV serials (VAS).
 Prevent switching – free coupons to existing subscribers.
 Product differentiation – various packages.
 High switching cost – subscriber have to pay when they switch to other brand.
 Target single channel viewers.
 Variety in Movie Listing with Bollywood, Hollywood and Regional Channels.
 Combined Product with Television - Rural areas, especially and niche segment
targeting if combined with LCDs.
 Including the local cable operators as distributors would be an extremely useful
way of reaching out to the target market.

 Strategies for the rural sector can be:


• Customizing offering
• Combination of various national channels with regional channels
• Educational Package
• Appointing the village head as Distributor and the promoter as the villagers tend
to listen to
• village head
• This can be supplemented by giving the connection to village head free for initial
period

 Another avenue that can be explored is Mini – Theatres.


• Setting up Mini – Theatres in rural sector to promote the Product
• Events like Cricket matches, movies etc.
• These Mini – Theatres can be the Point of Sales.

 Promotion
The promotional strategies suggested are:
1. Packages for Special Events like the cricket World Cup.
2. Targeting Tata employees could be a useful way pr promoting the product.
3. Give the option of installments and other promotional schemes to the new users.
4. Tie up with real estate developers to target the new constructions
• The number of old buildings being demolished and being reconstructed
are also on the rise. This could be a major target for promotions.
5. Door to door marketing should be used to heighten the awareness levels 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 for placing
Hoardings of Tata Sky Ads.
• Finding the strategic building in the locality
• Consideration can be in form of cash payment to the Housing society
• Providing free connections to Households in these buildings
8. Another new avenue that can be explored is the railway stations:

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• Posters on railway station roofs.


• Tickers at Major suburban Railway stations.

 Use of Internet- Applications which involve sharing of videos on how one


consumes TV, benefits of DTH over cable TV, etc. across social networking sites
like Orkut, ibibo, etc.

References:

http://www.tatasky.com/index.html
http://www.dishtv.in/default.asp
http://www.indiabroadband.net/
http://www.cellbharat.com/blog/tag/dth/
http://www.saveondish.com/
http://www.dishtracking.com/forum/index.php
http://www.indiandth.com/

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ESSEL GROUP
Essel Group ( of the US $ 1.7 billion Zee Group fame) has a vast range of national and
global business interests, encompassing media programming, broadcasting &
distribution, communication, packaging, online lottery, entertainment parks, telecom and
trading, movie production, multiplexes, education, animation, publishing and satellite
with particularly close synergies with ventures active in the areas of content,
distribution/reach and infrastructure/logistics such as Zee Telefilms, Siticable, Zee
Interactive Learning Systems, Agrani, E-city, Essel Propack, Esselworld, Cyquator, Dish
TV, Playwin, Water Kingdom, Intrex India, Zee Turner, Padmalaya Telefilms, ETC
Networks & others. Essel Group is a transnational enterprise with Indian soul and
global spirit and is India’s largest vertically integrated group.

-------------------------THE ESSEL PHILOSOPHY--------------------

The Essel Group strives to offer the best to the communities that it serves —
shareholders, customers, employees and vendors. ‘Faith in innovative and organised
growth’ is the dictum that drives all business decisions. A multicultural organization with
a strong customer focus, Essel Group companies reach out every day to millions of
consumers across the globe.

INDIA’S IMPORTANCE FROM STRATEGIC POINT OF VIEW.


With nearly 17 per cent of the world's population, a fast-growing economy, and a middle
class that has tripled in size in the last twenty years to some 300 million, the Indian
market represents a tremendous opportunity for ESSEL GROUP and reinforces our
strong market position in the Asia Pacific region and globally.

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MEDIA

ZEEL (Zee Entertainment Enterprise Ltd)


SBU FORMATION REASON:

TV have been identified as the strongest medium to reach the early 20s target group,
which is the most active media consumer & highest purchasing power.
India's TV advertising pie is continually growing, with the maximum ad revenues being
absorbed by Hindi soaps and movies. FICCI-PwC's 2007 report on the media &
entertainment industry states that the nation's total advertising pie today stands at
about $4 billion. With an economy growing at 9%, advertising expenditures are bound to
soar and analysts estimate that just this year advertising revenues are all set to go past the
$4.5 billion mark.
All over the world the total advertising and marketing money that gets circulated is
about 3% of the GDP, in India the figure stands at a measly 0.7%. Digital democracy
waiting to unfold across the nation is another factor driving players to jump into the
television well. Once implemented, if a channel is delivering good content, people for
sure would pay to watch it – and media hubs would also save hugely on distribution. Add
the 5-6 new players to the cacophony and the audience fragmentation is slated to rise to
unprecedented levels. Going forward, the competitive fireworks will only intensify,
with content, distribution and marketing becoming the reigning kings and queens of
this epic battle for supremacy in the consumer mind space.
First mover advantage and strong financial muscle of worth Rs. 110 bn gives advantage.
But the devil is in the detail. Entertainment channels require big budgets, on an average
Rs 1 to 1.5 crores on a daily basis. Most of the new players have deep pockets, but many
may not last the distance. With Sun TV Network, buying 49% stake in NDTV's Red FM
radio network; Walt Disney purchasing UTV's children's entertainment channel Hungama
et al, the consolidation has already started. As pressure on advertising rates and the
analog distribution systems increases, smaller players will be further get edged out.

Advertising revenue is the major source of income for broadcasting companies, and in the
case of ZEEL, revenues are less heavily skewed towards the Real estate and Auto sectors.
The major contribution of advertising revenue is done through FMCG (50%),
Telecom (20%) and others (30%).ZEEL is the 3rd largest television network in
India and has a complete entertainment portfolio

The company has 16domestic channels in its bouquet, consisting of Zee TV with a
market share of 20% at No. 3 position (recently replaced by COLORS which is at No. 2
Position), Zee Cinema with a market share of 39% at No.3 position, English
Entertainment (3 channels) with a market share of 21%, Music (3 Channels) with a
market share of 24% and lifestyle with a market share of 24%..

1HFY09 performance: 1HFY09, company has posted a growth of 41% y-o-y to Rs


1,113 crore. The growth was mainly driven from advertising of 33% to ~Rs 565 crore,
subscription of 33% to Rs 439 crore and the remaining contribution from other operating
income.
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GROWTH STRATEGY:

ZEEL strategy is growth intensive creating complex network of channel in a multitude of


language, each to a select audience, covering a diverse range of cultures, geographic and
demographics.
Promoting theme—ENTERTAINMENT UNLIMITED
Advertising revenue—14 % growth
Subscription revenue—22 % growth
International subscription added 21% to revenue.

Company has taken a series of initiatives to consolidate the talent management initiatives.
The Board has recommended issuing of Employee Stock Options Plan (ESOPs) to
deserving employees
to create a greater degree of ownership. We have also initiated creation of a talent map
for all positions which will be synchronized with talent map of employees holding these
positions. These efforts have shown positive results in the Company

ZEE programming architecture is unique enabling them to groove on the sharp side of
leading edge production. Shaped and cut to suit various requirements, innovation in
product design and development offer viewers a diverse menu of channel options. ZEE
offer programming for every viewer palate and every conceivable taste bringing joy to
millions across the globe.

ZEE’S workforce, an electric mix of various points of view and talent from all over the
world is highly valued and rewarded. Almost 80% of employees at ZEEL are less than
35 years of age.

Product initiative such as general entertainment, reality shows, lifestyle, talent, fashion, movies
and film production have created a unique and invigorating viewing culture making to touch lives
everywhere.

Apart from Star India that has been grossing in excess of Rs 1,000-crore advertising revenue for
the past four years, Subhash Chandra-promoted Zee Entertainment Enterprises was the first
broadcaster to cross this mark this year. Zee Entertainment’s net advertising revenue for 2007-08
(April-March period) stood at Rs 930 crore.By virtue of market share too, Zee TV is the second
ranked entertainment channel after Star Plus.

REFERENCE- http://www.media-partners-asia.com/mpanews240608b.asp

Company Name ZEEL Sun TV TV 18 India TV Today


Network
Market Cap.
(Rs cr) 6,507.9 7,272.7 1,200.2 470.4

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Source: Company, KRC Research - REFERENCE-ZEE Management Meet Note1.PDF

CHANNELS BOLLYWOOD- SUSTAINING LEADERSHIP

ZEE CINEMA- The channel boasts of one of the largest libraries having an eclectic mix
of programmes, blockbusters and hits. Since its launch, Zee Cinema has been a leader in
its channel genre with over 30% market share. In the year gone by, the properties that
have captivated audiences are Dopahar Zee Cinema Par and Shanivaar Ki Raat Sitaron
Ke Saath. Innovative offerings such as Rok Sako Toh Rok Lo and Double Mazaa, which
show back to back movies have been immensely appreciated and viewed brands for over
five years. Zee Cinema’s sprucing up premiers & specials with innovative break content
have been widely appreciated.
------------------------------------------------------------------------------------------------------------

Zee Premier has been specifically designed to address viewers of of a specific


demographic. Now movie buffs, addicts and cinema lovers can feast of our library, which
boasts of over a collection of exclusive entertainment and art value. Zee Premier range
includes blockbusters from modern Indian cinema, an industry which has been in a
continuous state of evolution with every passing year. The collection contains the world
premiers of many award winning movies such as Taare Zameen Par, Dhool, Dhammal,
Jodha Akbar and Race
------------------------------------------------------------------------------------------------------------

Zee Classic, boasts of an outstanding library of Indian cinematic classics. It’s the most
popular after
Zee Cinema. Zee Classic was created to air only classics and blockbusters of the yester
years, to revive nostalgic moments and memories
------------------------------------------------------------------------------------------------------------

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CHANNELS-SPORTS

Ten Sports and Zee Sports combine have given the viewers a lot of action in the past
years and have become a force to reckon with in the sports entertainment business.
Popular events like WWE, UEFA Champions and League Football have made inroads
into the Indian market. Tennis fans enjoy the grand slams with a series of ATP 500 and a
multitude of other events. For the indoor sports fan, the channel has showcased the World
Poker Tour and Darting events. Cricket being nothing less than a religion in India, Ten
Sports has acquired the rights to five of the ten cricket boards, giving it over 100 days of
cricket a year. This is the maximum number of days of cricket across sports channels.
The rights to these 5 boards; Sri Lanka, Pakistan, South Africa, West Indies and
Zimbabwe are with Ten Sports for the next 4 years.
------------------------------------------------------------------------------------------------------------
CHANNELS-ENGLISH CONTENT (BRINGING THE BEST OF INTERNATIONAL
CONTENT TO INDIAN AUDIENCES)

The English GEC channel was launched in 2000. Being the most widely viewed English
Channel in India, it has garnered a large market share among the English speaking and
viewing audience. Zee has focused on sourcing the best international content which
appeals to the young and urban Indian palate. Some of the most popular shows on this
channel are The Best of F.R.I.E.N.D.S., Gossip Girl, Sex and the City, The Tonight
Show, The Big Bang Theory and many alike. The only Indian show to capture all the
existing & worthwhile party actions in after hours. Broadcasting the most happening
international events like the World Music Awards, Emmy’s and leading fashion shows is
one of the channels strategic prerogatives. In recent times, Zee Café acquired exclusive
live telecast rights to the most prestigious beauty pageant – Miss World 2008.
------------------------------------------------------------------------------------------------------------

Zee Trendz is the leading fashion and lifestyle property in India. Following Indian as well
as global trends, this channel brings to you the latest in style, fashion, music and people.
Some of the remarkably successful shows that were acquired are: Ultimate Gadgets is a
program on audio, video, interactive and communication, bringing the audience the latest
on trends and products, especially designed for the viewers. Music Retro is an

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introspective retrospect of various styles of musics- from pock, rock and hip-hop to R&B.
For music lovers, Music Retro is flowing with reviews and video clips.
Power Players profiles the most influential men and women from fields where power,
talent and moral example have touched and transformed lives, around the world.
------------------------------------------------------------------------------------------------------------

Zee Studio has brought quality cinema to the discerning Indian audience. Catering
primarily to movie buffs among the of programmes includes a potent mix of Hollywood’s
hottest block busters, animation flicks, golden classics, musicals, comedies and the finest
of world cinema. Zee studio acquires the exclusive telecast rights to the prestigious
awards ceremonies such as, The Screen Actors Guild Awards ‘09 and Live from the Red
Carpet Academy Awards ‘09.

CHANNELS- MUSIC , LIFESTYLE & ENTERTAINMENT.

ETC has etched its unique identity as India’s only Bollywood trade channel.
Some of the prime time shows on the channel are:
ETC Bollywood Business: Taran Adarsh interviews directors, producers, corporate
heads, actors and everyday celebrities
Bada Parda: Reviews the hottest films of the fortnight
Star Giraftar: Showcases stars and their upcoming films, an indepth look at the films and
their characters
ETC Xtras: Catch all the superhits on this program
ETC Nautanki: Bollywood’s biggest Suresh Menon gag show
ETC Karaoke: A unique program with lyrics displayed on screen.
------------------------------------------------------------------------------------------------------------

Year 2009 saw an exciting development in the field of music for Zee. Now called Zing,
the channel presents movies, music and madness to an audience of fifteen years and
above. Some of the channel’s key properties are Eye Candy, Face to Face, Chillax
Morning, Flix @ 2, After 8 and Bollywood Chakkar.
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Zee Jagran forays into the spiritual and religious entertainment genre, aimed at
awakening people to realize the spiritual aspects in their life and hence enriching lives.
This lifestyle channel attempts to provide holistic entertainment to the audience through
alternate lifestyle programs, interactive astro solutions, spiritual content and mythological
and socially relevant movies and serials. A 24 hour socio-spiritual offering the channel
offers a content creation standard that puts it above any other channel in this genre.

------------------------------------------------------------------------------------------------------------

Another offering by the company in the entertainment genre Zee Smile, brings to its
viewers original content and some which is shown on Zee TV.The channel is accessible
to viewers on free-to-air basics this in turn provides it a vast viewership.

DNA –(DAILY NEWS ANALYSIS ) (DILIGENT MEDIA CORPORATION)


-Joint Venture b/w Essel group & Bhaskar group.
-DNA readership growing at 22.5% in market where market leader is growing 8% over
IRS (Indian Readership Survey)

PACKAGING

PROPACK:
SBU FORMATION REASON:

At present, India’s packaging industry across all materials is estimated at Rs 20,000 crore. Indian
packaging industry is highly fragmented, with unorganized and small scale industry constituting
60-70% of the total size. About 32% is plastic packaging, while another 32% is paper packaging.
Rest is metal and glass. The compounded annual growth rate is roughly 22%.

Chandrasekhar said though it is difficult to put a figure to the size of the industry, it is
close to $14 billion and growing at around 15% annually.

REFERENCE-http://www.dnaindia.com/money/report_packagers-feel-cost-pricing-
heat_1195177

As FMCG products get more and more branded and aspire to become a brand from a mere
commodity, packaging will connote more than just a secure receptacle and convenient container.
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It will convey brand character, personality and contain a wealth of information about the brand,
its size, contents and ingredients. It will also help differentiate a product from the others in the
same category.

Slow and steady movement to greater product awareness, branding and better retailing
formats follows an evolution from ‘loose’ product sales to branded & packaged products
with greater information to consumers about choices, ingredients and precautions.
Customers today demand variety and change sometimes desiring uniformity, sometimes
dazzling variety, utilitarian, convenience, or even dual usage etc. All this drives changes
in packaging, materials, colours, decorative effects, formats, shapes and sizes

STRATEGY:

Core competencies of superior technology, knowledge of product and marketing intimacy


with global client base.

Success Factors

Inorganic Growth Route

Essel Propack owes its global recognition and current market share in the packaging
industry to its policy of focusing on acquisitions and JVs. Pursuing its strategy of
inorganic growth in the EU, the company has acquired subsidiaries such as Arista Tubes
and Telcon Packaging in the UK, and Lami tube Technologies (Cyprus) Limited in
Cyprus. It also set up its subsidiary, Essel Deutschland, in Germany. These acquisitions
and the JV have helped it to attain brand recognition and attract new clientele.

In 2004, Essel Propack acquired a 100 per cent stake in Arista Tubes, UK, for EUR 8
million

In 2005, Essel Propack also acquired Telcon Packaging Limited in the UK (now renamed
‘Essel Propack U.K. Limited’)
In 2006 they company had 85% stake in two medical devices companies Tacpro Inc
(USA) and Avalon (Singapore).

TECHNOLOGY:

DISH TV:
SBU FORMATION REASON:
India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in
97 million (74%) of the homes (www.financialexpress.com/news/thats-entertainment-direct-to-
home/497502/).The DTH market in India comprises 11% of the total market with almost 15
million homes. The DTH industry growth lagged to 10.3% in 2008 from 16.7% a year earlier. But
industry 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 that’s the number that
every DTH brand has set its sights on. By 2015, DTH will enjoy a market share of 40%, digital
cable 40% and analog cable will follow with only 20% market share. The DTH service market in
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India has emerged as one of the most lucrative markets which have successfully resisted the
impacts of the current economic slowdown. The slowdown has certainly proved a boon for the
Indian DTH industry as people have now started to cut on their entertainment expenditure and
instead of viewing movies at theatres, they are preferring to stay at home with their television
sets.

The industry is anticipated to add nearly 5 lakh subscribers per month during 2009 and
the numbers are forecasted to surge further at around 30% through 2012.So apart from
Tata Sky, Dish TV, Airtel Digital and Reliance BIG, southern heavyweight Sun TV has
entered the fray with Direct, while Videocon has entered the market in June 2009.

Dish TV Financial Highlights

(2008)
REVENUE INR 4,127.44 Million

Number of Subscribers (Gross) Nos. 3.00 Million

DMCL (Digital Media Convergence Ltd.):


SBU FORMATION REASON:

Digital Media Convergence Limited (DMCL) is an Essel Group company. The company
constantly explores unrealized avenues for the provisioning of entertainment. DMCL is wagering
on entertainment opportunities, in the digital platform (web, mobile et al). DMCL acquires,
digitizes and delivers a wide variety of content on digital platforms.

Future of entertainment - convergence of devices and of networks. Consequently, our


business focus is to leverage the opportunities arising out of the convergence trend and at
the forefront of providing compelling content over mobile networks

The core business focus of DMCL is to facilitate end-to-end products and services related
to digital content for emerging entertainment content consumption devices using wired or
wireless telecom platforms such as Mobile, Internet, Podcasting and IPTV.

STRATEGY

The DMCL team focuses on capitalizing the continuously evolving digital entertainment
landscape by using its technology and content-based research expertise to guide and
collaborate with content creators and telecom operators. DMCL is equipped with cutting
edge technologies for archiving content in digital format.

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ENTERTAINMENT

FUN MULTIPLEX-
SBU FORMATION REASON:
The entertainment industry in India is growing at a fair clip amongst which multiplex
segment is touted to be one of the fastest growing segments. Though these multiplexes
have mushroomed in the metro cities such as Delhi and Mumbai, non-metros are still to
catch up with the similar momentum. The concept of multiplexes has matured to the next
level wherein, it is positioned as a complete entertainment centre for the families with
other recreational facilities along with the multiplex.
Estimates says in 2013 total number of TV owing household in India is estimated to 149
mn, up from 123 mn in 2008. The film industry has experience a growth rate of 9.1%
over last 5 years and reaching size of 169 bn by 2013. India sells 3.7 bn movie tickets
compare to 1.4 bn of US.
REFERENCE –INDIA TODAY, AUG 2009.
In a huge market like India, there is just one screen per one million people and this
includes the single screens. If only multiplexes are considered, the figure is even less. So
the Indian players don't seem to mind the prospect of increased competition. There are
only 11 multiplexes for every million people in the country as compared to 117 in USA
ad 77 in France. Major cities of the State have a high demand for malls due to the rising
employment, increasing disposable income, outing spots of the families on weekends etc.
There are just 747 multiplex screens in India; they contribute around 40-45 per cent to the
revenue basket of any movie.
REVENUE SOURCE: Improving average ticket price, strength in food and beverages
sales and continuing strength in garnering advertising revenues are key positives for FUN
Multiplex.

󲐀 Recreation Zone:

󲐀 Games Zone including bowling alley, simulators, kiddie’s rides, battle tanks, carnival
games etc.
󲐀 Multi-cuisine or specialty restaurants
󲐀 Outlets of national/ international food chains
󲐀 Shopping arcade having various outlets of different brands
󲐀 Handicraft mela exhibiting the art and crafts of different states of the country

󲐀 Other Facilities:
󲐀 ATM centers of different bank
󲐀 Parking space
󲐀 Administrative room

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INFRASTRUCTURE_____________________________________________________

Essel Infraprojects Limited – With Esselworld and Water Kingdom, among the largest
amusement theme parks, EIL is also engaged in the development of roads, power plants,
Sports complexes and Special Economic Zones.

E-City Real Estate Pvt. Ltd – The Company behind the successful lifestyle brand Fun
Republic – plans to develop and operate 20 million sq ft of retail real estate by 2011.

E-City Property Management & Services (India) Pvt Ltd (EPMS)– An E-City
Venture company that provides the most comprehensive and reliable mall/property
management and retail services in India, including overall operations, marketing,
consultancy, occupant management, retail leasing services and advisory services.

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BCG:

SBU MARKET COMPETITR RELATIVE MARKET QUADRANT


SHARE MARKET MARKET GROWTH IN WHICH
SHARE SHARE RATE SBU LIES
DISH TV 32% TATA SKY- 1.3% 6.5% CASH COW
24%
Essel Propack 21% ITC-30% 0.7% 25 % QUESTION

MARK
ZEE 6% STAR-11% 0.54% 17% QUESTION

MARK
FUN 8.9% PVR-14.45% 0.61% 10% DOGS
MULTIPLEX
ZEEL 42.12% SUN TV-47% 1.12% 12.5% STAR

BCG matrix

20 %
M
A
R
K
E
Build
??
Build
T
10 %
G
R Cash Cow Dogs
O
W Hold Divest
T
H

Relative Market Share

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PRODUCT PORT-FOLIO

Essel Group is one of India’s prominent business houses with a diverse portfolio of
companies in media, entertainment, technology-enabled services, education,
infrastructure development and packaging. The Group’s publicly listed companies
include Zee Entertainment Enterprises Ltd, Zee News Ltd, Wire & Wireless India Ltd,
Dish TV India Ltd, Essel Propack Ltd and ETC Networks Ltd. In India, Zee TV is the
first satellite channel, Siticable is the first multi-system operator, Esselworld is the first
amusement park, Water Kingdom is the first theme park and Playwin is the first online
gaming company. Essel Propack, the world’s No. 1 in packaging, was also a
revolutionary concept in India. It has metamorphosed into a conglomerate that is a
symbol of the ingenuity and power of Indian entrepreneurship, with worldwide
operations.

As per the BCG Matrix two of the SBU’s (ZEE & ESSEL PROPACK) lies in the
question mark quadrant and the SBU’s (Dish TV & Fun Multiplex) lies in the cash cow
and dog’s quadrant respectively. ZEEL lies in the star quadrant. Dish TV is the market
leader in India. The product portfolio is healthy with ESSEL group diversifying and
attracting a large amount of investments in its various ventures and at the same time
offering a lucrative return, creating share holder wealth.

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References:

http://www.thehindubusinessline.com/2008/08/09/stories/2008080951130500.htm
http://bx.businessweek.com/packaging-industry/turnover-of-packaging-industry-
in-india/14677494993074838105-3337e6e8d1c96270e99ad370b1d24aff/
http://docs.google.com/gview?a=v&q=cache%3AW6r_xybd-
dMJ%3Adspace.mdi.ac.in%2Fdspace%2Fbitstream%2F123456789%2F467%2F1
%2FInternationalisation%2Bof%2BEssel%2BPropack%2BLtd.pdf+market+share
+of+propack+in+packaging+industry&hl=en&gl=in&pli=1
http://www.onlineequitycalls.com/2009/02/indian-entertainment-industry-worth-
1168-billion/
http://www.itcportal.com/newsroom/press_31jan06b.htm
www.scribd.com/doc/18454053/DTH-Industry-in-India
(www.financialexpress.com/news/thats-entertainment-direct-to-home/497502/)
(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)
http://www.ficci.com/news/viewnews1.asp?news_id=1766
http://media247.co.uk/bizasia/newsarchive/2008/04/star_plus_widen.php
http://media247.co.uk/bizasia/newsarchive/2008/07/star_plus_comma.php
www.researchandmarkets.com/reports/836895/multiplex_india.pdf
www.businessofcinema.com/news.php?newsid=12488
www.pvrcinemas.com/investor

Essentials Of Marketing Page 39