The Teleshopping business in India

By : Ajay Grover Ritika Gupta Pankaj Puniani

Teleshopping networks provided consumers with

miraculous products such as disease curing teas, wondrous kitchen, household equipments, weight reducing medicine etc. 
The products claimed to provide miraculous results. Such

as reduce weight & get into shape without exercising or dieting. 
The range of products included creams, lotions, solutions,

toys etc.

Background Note .

‡ Since the 1990s. .Customer marketing channels (based on the number of sales levels between manufacturers and consumers) Mass Marketing Direct marketing ‡ Teleshopping was originated in the US in the mid -1980s and is another name for Direct Response Television (DRTV) shopping. ´In-studioµ productions with a live audience showing that it was not a mere commercial luring customer. 2. two types of infomercials have been used : 1. Infomercials featured celebrities using products and benefiting from it scheduled between TV programs and at the end flashing a telephone number. one of the direct marketing techniques.

y In countries like US and Australia teleshopping had dedicated 24 hrs home shopping channels . poor promotion & advertising techniques and lack of awareness among consumers but in the late 1990s teleshopping picked up momentum. Its market in US valued around $2 billion in yr 2000 and presently the Home Shopping Network and QVC are the 2 major teleshopping networks in the US. y By 2001 its total business in world amounted to over $ 5 billion. y However it was not successful in other parts of the world due to lack of innovation offerings. .

owned by the media giant . pioneered the concept of teleshopping in India y In mid-1995. y The Indian teleshopping network grew at a very slow pace. y During the mid-1990s.Zee[1] . without acquiring prior permission from the regulating authorities.The company developed several strategies to overcome the hurdles and make a success of their teleshopping initiatives. TSN (another major US-based teleshopping network) and Asian Sky Shop (ASK). The other major players in the Indian teleshopping market wereTVC.TSNM and StarWarnaco. a 100% subsidiary of Telebrands Corp. also entered the market. Telebrands India..The Indian Scenario y In early 1990s Indian laws prohibited customers to import products. .

benefits and factors that contributed to its success. describe the circumstances that led to the entry of teleshopping networks in India. Also. Discuss the worldwide trends in the teleshopping business and the factors that have contributed to its success in the US.Question 1 y Explain the concept of teleshopping and its working mechanism. .

"It must be the strange fascination of this community of customers and television presenters.µ . an attempt is made with interactive elements loyalty to achieve. y These infomercials featured products that claimed to provide miraculous results.Concept and working mechanism y Teleshopping works on the principle of the so-called impulse buying. y It is the infomercials that we usually see on the television. the regular buyers at their Teleshop binds. y In addition.

Targeted the premium-end TV viewers. Also the constant introduction of new products played a major role in attracting the customer attention and hence in its success. with high purchasing power. In early 2000s. Teleshopping market players started offering customized products such as Jewellery with birth stones. toys and other range of imported products as the Indian customers were more oriented towards foreign goods. fitness devices. Offered innovative and value for money products such as electronic goods. . home appliances .Factors contributing to its success y Increasing number of Nuclear families (both husband and wife are y y y y working ² less time for shopping) offered tremendous marketing potential.

Utility Products .majority of teleshopping sales such as fitness devices. Value-expressive Products ² low sales products such as jewellery. Functional Congruity. Self-Congruity. healthcare products. 2.emphasizing the utilitarian aspect of the product 2. Adoption of two types of persuasion modes 1. y Advertising the products through infomercials y .matching the product user image with that of customer·s self image.y Two types of products were offered : 1. apparels & home décor. household appliances and electrical devices.

y Hectic promotional activities offering ¶early bird· prizes. money return offers. free accessories and double product packs at the same price. . y Strengthening of franchisee base across the country and hence extended to over 90 cities across the country. the prices were brought down to make the products more affordable. y Giving special attention to their pricing strategies.y Dubbed versions of infomercials featuring well-known personalities. price reductions.

without acquiring prior permission from the regulating authorities.Evolution of teleshopping in India It evolved in India due to the changing societal norms. . y These laws also restricted the repatriation of money. Indian laws prohibited customers to import products. y During the early 1990s. RBI. without the prior permission of the country·s central bank.

Do you think the allegations against products claiming to offer ´miraculous benefits are justified? Give reasons to support your answers.Question 2 y Discuss the strategies followed by major teleshopping networks in India with specific reference to each element of the marketing mix. .

In some instances. y Sourcing their products with help of their agents.The various strategies followed are : y Targeting the premium-end viewers. fitness devices. y Focusing more on offering innovative and value for money products. y Offering Customized Products such as jewellery with birth stone. which were not available in the market otherwise. . with high purchasing power. the manufacturers of the products approached the networks directly for marketing and distribution of their products. which includes a selected range of imported products such as electronic goods. home appliances and toys. both in India and abroad.

Introduction of Dubbed versions of original infomercials featuring well-known personalities. Extending the franchisee network across the country. Advertising the products through infomercials. And providing the telephone number of all their distributors at the end of the infomercials .y Introduced new products under the categories Utility y y y y y products and Value-expressive products. Adoption of Persuasion modes namely Functional Congruity and Self Congruity. Lowering of prices.

Do you think the market has a potential to grow in the future in the light of the above problems? According to you. what measures should the teleshopping networks in India adopt to address these problems and grow in future? .Question 3 y Critically examine the problems faced by teleshopping networks in India.

Problems faced by teleshopping networks in India The reason for the slow growth of teleshopping market in India are:y Imitation product y Higher prices y Difference in culture and language y Limited reach of products y Criticism y Interactive home shopping .

y Online-shopping services through retail websites .Future Potential y Increasing Living standard of Indian middle class people making them more receptive towards trying out innovative products and concepts y Increasing number of Nuclear families (both husband and wife are working ² less time for shopping).

.µ y Perceived value of the product should exceed its price..Measures to be taken y Success depends ´Highly on ability of marketer to deliver the goods on time to his valued customer along with other stipulated parameters. y Air time ² a critical success factor (enhancing their reach by repetitive presentation of the product both during peak and slack hours on various channels) y Effective payment system in the country that enables immediate money transfers at low risk.

y Gifts offers and discounts should be allowed. y ´ Success depends upon ¶unique product·. y Teleshopping products should require minimum after sales services. ¶good pricing· and ¶credibility·«. y Constantly introduce new product varieties.µ .

A strong distribution chain spanning Whole India.ShaniYantra / Saturn Yantra is used to Propitiate an afflicted. . LTD.India's Number One Teleshopping Company offers wide range of Gemstones. has very rapidly emerged as a trustworthy name in the teleshopping industry y July 15. New products offered are: y Deemark Herbal Hair Oil y ShaniYantra / Saturn Yantra is very effective to remove the malefic effect of Saturn & help spiritually. TeleOne is a tele shopping pioneer in India. offer high quality products at affordable prices. 2010 --AAA TELESHOPING PVT.Fitness Products & other Teleshopping Products at lowest price.Current status y March 31. supports the marketing team.Astrology Products. and helps us reach out and satisfy customer requirements. Our products command extensive media coverage on the TV. 2010 --Teleone .


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