COMPETITIVE STRATEGIES

CASE STUDY-ZEE TELEFILMS

GROUP MEMBERS
SWATI A SWAYAM VARUN J VARUN S VIPIN M

THEORY-A RECAP

PORTERS 5-FORCES MODEL

FIRM

ANALYSIS OF COMPETITORS
Collection of Information about Competitors Competitors strategies regarding 4-Ps Helpful in recognizing threats & opportunities Helps in developing strategies Checklist for Competitor Resource Analysis --Management, Innovation, Financing, Production, Marketing

CLASSES OF COMPETITORS

ADDITIONAL ISSUES

ENERIC COMPETITIVE STRATEGIE

DESIGNING COMPETITIVE STRATEGIES

COMPETITIVE INTELLIGENCE SYSTEM

CASE STUDY-ZEE TELEFILMS

Background
Zee, an Essel group company launched Zee TV in 1992. It was nations first Hindi channel by a private organization. Brought a much wider choice of programs compared to Doordarshan. It captured a vast Hindi speaking Indian audience market.

Zee Initial Success

In 1995, Zee entered into a partnership with Rupert Murdoch, the man behind STAR. Launched nations 1st round the clock channel Zee news.
Launched

a 24 hrs Hindi movie channel called Zee Cinema

 In

the year 1995 Zee made a foray in to the international market by pioneering a venture Zee TV in UK. Zee launched the nations first full scale television and film training body named institute of creative arts(ZICA)at Hyderabad. In the year 1997, Zee launched its music channel named Music Asia.

SMALL TOWN TARGET

ZEE launched a bouquet of regional channels under the Alpha Channels in 1999. It was the only one offering regional channels. It was like reaching out to that segment of the market which its competitors are overlooked.

 In

Competition from STAR and SONY

September 1999, the Star and Zee partnership came to an end. meanwhile, launched its sportscum-movies channel SET MAX in 1999.

Sony,

STAR NETWORK
In

July 2000, Star launched Kaun Banega Crorepati. Star also came up with Kyunki Saas Bhi Kabhi Bahu Thi and Kahani Ghar Ghar Ki. Successfully attracted the viewers in the 7:30 to 11:00 pm time slot.

SONY Entertainment

Television Sony agressively started Jeeto Chappar Phad Ke; which was a big hit.
In 2003, Sony carried out an extensive research called Understanding Women in 7 cities across India to know what women wanted. Result : Launched a serial called Jassi Jaisi Koi Nahi.

Where was the

problem

News
To make matter worse for Zee, the India Today Group launched a 24-Hour Hindi news channel called Aaj Tak in December 2000. A report said that within a month of the launch of Aaj Tak, its viewership shot up nearly five times.

What went wrong

In October 2000, Zee launched Sawaal Dus Crore Ka which turned out abysmal for the channel. In response to competition from Aaj Tak in March 2001, Zee bought the tapes of Tehelka, a sting operation against corrupt government officials, which failed miserably and this resulted in huge losses to the channel.

Zee Fights Back

Sept 2000 onwards, Zee focused on 2 strategies - Programming Content - Redefine the prime time band Launched 2 new channels Zee English and Zee MGM

Zee gave a new look to its news channel in response to Aaj Taks competition. As KBC was showing downfall, and there sole aim was wholesome family entertainment, they launched many serials.

Contd.

Zee ventured into film production GADAR Entered into joint venture with Turner International India a 100% subsidiary of AOL Time Warner, to provide the viewers a blend of international and local channels

KBC went off air in Jan 2001, Zee launched Jeena Isi ka Naam Hai , Khelo Number Khelo etc.

Subhash Chandra direct involvement.

Contd

Introduced movie slot. Catered to niche markets with launch of channels like Zee Trendz, a fashion channel. Co-produced a film called One Dollar Curry with France TV and Silhoutte Films- to set up distribution network overseas. Aggressively countered other channels Launched Zee Stars Ki Khoj Women oriented- Astitva

Zee conducted Zee Cine Awards in Dubai to announce Zees presence abroad.

Contd

Achievements

No. 2 Channel of the nation. Zee had higher TRPs than Star(8 Pm to 9pm). Zee won 3 RAPA. Increase in net profit by 59% 2000-01 than 1999-00. With Zee going global, it had an unparalleled reach in its overseas operations. Zee remained the leader in regional viewership.

REBRANDING
Defined

as the process by which a product or service developed with one brand, company or product line affiliation is marketed or distributed with a different identity.

It

may involve radical changes to the brands logo, brand name, image, marketing strategy and advertising themes.

THE REBRANDING EXERCISE

Early 2005 , Zee initiated the re-branding of the entire Zee range of brands. All channels of Zee sported a new logo , and new on air packaging and promotions were introduced to increase the TRP of all its channels. This re-branding exercise is the first step in weaving a thread of common identity between many diverse brands. In 2005, Zee took another step by conducting its award ceremony in London. They have also adopted new sales strategy as to rope in telecast presenting sponsors region wise.

Contd.

The plan is to have different sponsors for UK/Europe, US, Middle East, South Africa and of course India. On the other hand , last year awards were sponsored by Pan Parag, this year the title sponsor will be ITC Sunfeast. Zee also launched Zee TV Gujarati in the UK in 2005. Zee Gujarati Showcases judicious news and festival centric programs like Navaratri and A mix of classic and contemporary programming such as current affairs , news , talkshows , serials , movies and much more.

Re-branding of the Zee Channels

THEN Trendz Zee English Zee Movie Zone Smile TV Alpha Marathi Alpha Punjabi Alpha Bengali Alpha Gujarati Alpha Telugu NOW Zee Trendz Zee Caf Zee Studio Zee Smile Zee Marathi Zee Punjabi Zee Bangla Zee Gujarati Zee Telugu

Q- What were the marketing and positioning strategies adopted by Zee during the initial years of its launch? What were the factors that contributed to the success of Zee during 1992-2000? Did the brand extension and diversification strategies of Zee play any role in the success of the network?

MARKETING AND POSITIONING STRATEGIES

While Star and Sony were concentrating more on improving their programming content, Zee planned the launch of two channels dedicated to news and cinema. Zee Cinema was positioned for people of all ages. In 1995 Zee launched Zee TV in UK. Thus when its competitors were trying to get a hold on the domestic market, Zee made a foray into the international market. In 1998 Zee emerged as a true global brand by expanding its telecast to the US and Africa. Zee launched a bouquet of regional channels Alpha channels in 1999 to target the small town viewers.

Others factors that contributed to the success of Zee

Zee

TV was Indias first Hindi channel by a private organization. TV evoked a massive positive response from the Indian viewers since it brought them a much wider choice of programs compared to Doordarshan.

Zee

Q- Examine the rationale behind the launch of Alpha regional channels. Analyze the reasons for launching the regional channel bouquet without the Zee brand name and subsequently bringing them under the Zee brand?

Rationale : To

target the small town viewers. A segment which Zees competitors overlooked. Huge potential in a country like India.

had

Reason for launching regional channels without Zee brand name :

The

idea was to offer a range of regional channels under one separate bouquet Alpha channels.

Reason for subsequently bringing them under the Zee brand :

To To To

thread a common identity between the diverse brands of Zee. make them an unmistakable member of the Zee family. make them gain from the Goodwill the Zee company had in the market.

Q- What were the consequences of the Zee misinterpretation of its target audience? How did the repositioning and re-branding help Zee in gaining market share as against Star and Sony?

Consequences : The major consequence was that Zee lost out to its competitors Star and Sony.

Therefore the TRP of Zee fell while that of other channels rose.

Repositioning : It positioned itself as a channel that offers multiplicity of choice and viewing delight, by revamping its programming content.

It

strived to provide wholesome entertainment for TV audiences in India.

Zee made two innovative moves to boost its popularity. Launched Trendz a premium Fashion & Style channel Decided to co-produce films in association with France TV.

Zee launched a completely women oriented serial called Astitva.

Rebranding : In early 2005, Zee initiated the re-branding of the entire Zee range of brands new logo.

This as expected increased the TRPs of all its channels.

 It

was aimed at adding the extra zing which reinvents the spirit of the brand and thus bringing it closer to the younger audience. channels were brought under the Zee brand this was done to make them an unmistakable member of the Zee family.

All

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