Direct To Home


Essentials of Marketing

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Direct To Home

Ansoff Matrix
This matrix was developed by Igor Ansoff for identifying corporate growth opportunities. The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. We are studying the growth strategies of Dish TV in the DTH (direct to home) market.

Essentials of Marketing

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Direct To Home These growth strategies are described below:

1. Present market
Market Penetration – it is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve three main objectives: a. Maintain or increase the market share of current products Dish TV did this by adopting following strategies:  Up-front subsidy on set top boxes to acquire subscribers  Focused marketing leading to creation of a BRAND – SRK campaign  Largest content offering and digital viewing experience  Exciting consumer promotion offers into the market. Schemes like World Cup Free offer, Kids Summer Bonanza, Free bhi Zyaada bhi, Ab Sab Sikandar, Diwali Dhamaka  Aligned dealer incentive structure-Higher incentives for subscriber at higher packs  A-la carte offerings and ease of making payment  Distribution and after sales service  Promotions and dealer incentives offered on an ongoing basis to retain customers through innovative packages  Over 350 Dish Care Centres (DCCs) & service franchisees providing installation and after sale-service as of Mar-09  In-house call centre, operating 24*7 with capacity of up to 800 operators b. Secure dominance of growth markets  Dish TV is the only player in the listed space in India and has been recognised as a BRAND  First mover advantage – ~1 year lead over nearest competitor and ~ 3 year lead over others  Leader in the DTH industry - largest subscriber base ~ 5.5 mm (Jun-09) Backed by Zee Group One of India’s leading Media group Restructure a mature market by driving out competitors  The landmark Set Top Box Free Offer  Competitive pricing These strategies have been adopted by Dishtv for promoting its business. Here are a few alternate strategies that Dishtv can adopt for better market penetration in the future:  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. Essentials of Marketing


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Direct To Home  High switching cost – subscriber have to pay when they switch to other brand.  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.


New market

Market Development- it is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: a. New geographical markets and distribution channels – Now Dish TV has a wider reach to 6,600 towns through 800 distributors and 48,000 dealers (Jun 09) and 8 zonal and 9 regional offices (Jun 09). Recently Dishtv has launched Onam Offer for all the new subscribers in Kerala. Offer Price: Rs.1,890/-Installation Charges: Rs.200/-Offer: 3 months South Gold Pack subscription free + Recharge benefit of Rs.300/-. So now customers can enjoy South Gold Pack at the price of South Silver Pack. b. New product dimensions or packaging - Revamped packages to suit needs of varied consumer segments, Promoted A-la-Carte Packages extensively. 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. c. New market segments – Dishtv has initiated a service of a range of channels on Education, Women, Gardening, a variety of Sports, Wellness and Religion. In a triumph of technology, dishtv offers live TV beyond the realms of homes. It is the first and only one of its kind in India to provide an experience of live TV, 35,000 miles above sea level. Passengers of Kingfisher Airlines have an access to television channels beamed in-flight through the dishtv platform. Dishtv can target new markets by following the below-listed strategies: 1. Rural sector Combination of various national channels with regional channels Educational Package Page 4

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Essentials of Marketing

Direct To Home • • • • • • 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

3. Present product
Product development – It is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require a. Development of new competencies - A Robust infrastructure- From building of transponder capacity and strengthening its backend and IT infrastructure, to a vast distribution presence across the country, a consumer facing front and back end service network, dishtv has built it all to scale up to the market needs. Service- dishtv has also set up a mammoth service infrastructure of over 25000 direct and indirect personnel along with 1600 customer service executives based in 9 locations, speaking 11 languages to attend to subscribers' needs. Together, they ensure prompt customer service and consumer delight at all touch points.

b. Develop modified products which can appeal to existing markets All major entertainment & niche regional channels provide unparallel content. Give the subscriber maximum entertainment at the best value + tailor made add-on packages to enhance ARPU Titanium - Rs 3990,188 channels Platinum - Rs 312, 185 channels Gold - Rs 210, 155 channels Silver - Rs 125, 135 channels
Recharge Free Scheme launched to improve the renewal collection (Subscriber Free Movies / A-la-Carte package equivalent to his renewal amount). offered

4. New product
Diversification- It is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. Diversification can be done in four ways: a. Horizontal diversification (this occurs when the company develops new products that could appeal to its current customers group) - Launched Movie-on-Demand and other VAS services to increase revenue streams-VAS is a very potent arsenal in the Dish TV armoury to Essentials of Marketing Page 5

Direct To Home inspire adoption as well as drive up ARPUs. While services such as Interactive Gaming, Movies on Demand, Quiz Applications, Sports and News are already available, new strides have been made into unexplored genres like Astrology and Interactive Education. This is an effort to transform the idiot box from a mere entertainment provider to a handy engagement tool. b. Vertical diversification (the company moves into the business of its suppliers or its customers) Dishtv is into teleport services as well. Its corporate office and earth station, located at Film City, Noida is equipped with state-of-the-art technology for play out and up linking functions. Software providers to leading DTH platforms across the world have partnered with dishtv to ensure a seamless product and service for its subscribers. Open TV for middleware, Conax for encryption and authentication, Scopus for compression system, Harris for automation and broadcasting software.
c. Concentring diversification (this results in new product lines or services that have

marketing and technological synergies with existing product lines even though the products may appeal to a new customer group ) Dishtv has set benchmarks when it comes to technology.  In a first and only one of it's kind in India, passengers of Kingfisher Airlines can now view television channels, beamed live in flight 35,000 miles above sea level, through the dishtv platform. Truly a triumph of technology.  Dishtv is the only platform to offer TV viewing through its mobile dish product that has created the possibility for consumers to view live entertainment on the move - in ships, in cars and now on the Indian railways.  Dishtv is also the only platform that offers multiple set top boxes with varying capabilities to satisfy the needs of different consumers.  Apart from the normal STB that is attached to a TV set, dishtv provides a VGA box that can work with TV and computer both. Also on the anvil is the introduction of the DVR which will enable recording of live TV, pause and play etc.  High definition capabilities-dishtv is creating capabilities for high definition transmission. India will soon witness the next level of technology that is taking the world by storm, all thanks to dishtv. It has come up with the ‘Sabse Zyaada’ – Scheme.  Dish VGA, yet another first of its kind, offers live television on the computer, digitally. It makes the computer double up as a TV. What's more, it offers a dual advantage as the Set Top Box can also function with a regular TV set. Combining work with play was never easier, as a swap between an excel sheet to a sports channel is just a click away.  A technology marvel, DVR combines the power of Digital Video Recording technology with feature-rich satellite receivers. State-of-the-art recording options such as Time Based Recording (record any program at a specified time), Serial Linking Recording (EPG based), Multiple Program Recording Essentials of Marketing Page 6

Direct To Home (watch one channel and parallel record another), Pause and Play live TV, are new consumer benefits that this product will enable. d. Conglomerate diversification (this occurs when there is neither technological not marketing synergy and this requires reaching new customer groups. Sometimes it was used by large companies seeking ways to balance a cyclical portfolio with a not cyclical one) - Dishtv has not diversified into any unrelated product or service so far.

References:   SANSCO SERVICES - Annual Reports Library Services -  

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