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Welingkar institute of management WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH & DEVELOPMENT SUMMER PROJECT ON Indepth analysis
Welingkar institute of management WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH & DEVELOPMENT SUMMER PROJECT ON Indepth analysis

WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH & DEVELOPMENT

SUMMER PROJECT

ON

Indepth analysis of the D2H industry on behalf of Videocon and handling Brand promotions and events for Planet M

(Research on “India has 6 major DTH players whereas the world over every country has approx 2. Can the Indian market absorb all?” done to develop the Videocon brand name Handling Planet M brand promotions and a major event called “Mirchi Create With Agnee” in collaboration with Radio Mirchi)

BY

ESHA SYLVIA BAILEY

PGDM 2009 – 11 Marketing

TRIMESTER IV

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ROLL NO 9

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Table of Contents

Industry Overview..............................................................................................3

History:.......................................................................................................3

GLOBAL SCENARIO.........................................................................................5 Current Indian Scenario:.....................................................................................6 VIDEOCON INDUSTRIES LTD ..............................................................................9 Objectives of the project:......................................................................................13 EXECUTIVE SUMMARY...................................................................................14 Porter’s Analysis of the DTH industry:.......................................................................16 SWOT Analysis...............................................................................................18 Concept of growth share matrix (BCG model)...............................................................20 List of major players in the industry.......................................................................21

Brief profile of players in the industry.....................................................................21 Cable Vs. DTH - An Overview of the World Scenario...................................................26 GROWTH OF THE INDUSTRY.............................................................................30 Comparative analysis of the DTH players.................................................................35 TRAI Rules....................................................................................................46 Problems experienced with Videocon D2H and their solution..............................................48

CONCLUSION:..............................................................................................50

PLANET M.....................................................................................................51

HISTORY:.....................................................................................................52

TASKS DONE DURING THE INTERNSHIP..............................................................55 IN DEPTH STORE ANALYSIS...........................................................................63

CONCULSION:...............................................................................................68

REFERENCES..................................................................................................69

REFERENCES

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Industry Overview

History:

The history of Indian Television dates back to the launch of Doordarshan, the Country’s national television network in 1959 when the transmission was in black & white. The 9th Asian games, held in 1982 in the country’s capital New Delhi, heralded the mark of colour television broadcast in India.

In 1991, Indian economy was liberalized from the license raj and major initiatives like inviting FDI, deregulation of domestic businesses emerged. This led to the influx of foreign channels like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed the monopoly held by Doordarshan.

In 1992, the cable TV industry started which changed the way the average Indian watches television. Every city in India had a new breed of entrepreneurs called as cablewalas or Local Cable Operators (LCO) taking in charge of distribution. Since this was a disorganized sector carrying new channels on the existing infrastructure required new investments which the operators were reluctant to make. This led to the emergence of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments and liaised between the cable operators and the channels. MSOs provide the feed to the local operators for a fee.

In 1995, government felt the need of regulation in Cable TV and passed the Cable TV network (Regulation) Act. This was also the time when the state owned Doordarshan and All India Radio came under a new holding called as Prasar Bharati to give them enough autonomy. The LCOs reported a lower number of connections where as the broadcasters demanded a higher rate. MSOs were finding it difficult to operate under these conditions. This led to an amendment of the Cable TV networks (Regulation) Act in 2002 to provide Conditional Access System (CAS). With CAS, the last mile distribution could be addressable with accuracy and digitalization of broadcast was also possible. CAS was rolled out in 2003 starting from Chennai and later to parts of Delhi, Mumbai and Kolkata. On the DTH front, TRAI issued the guidelines for operating DTH. Country’s first DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product DD-Direct+

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Welingkar institute of management In 2007, TRAI proposed a new initiative by called “Headend-In-The-Sky (HITS)” model

In 2007, TRAI proposed a new initiative by called “Headend-In-The-Sky (HITS)” model as an alternative to the existing cable distribution. Instead of the MSOs providing the bundle, there will be a single HITS operator who will prepare the bundle of channels and beam it to the Headend in the satellite. With the average Indian getting younger, and hence more likely to spend on nonessentials, the entertainment industry has the potential to grow explosively in the future. Now the industry is ready to enter a second stage of growth powered by the twin engines of technology (availability of quality infrastructure and the accelerated penetration of digital connectivity) and an enabling regulatory environment.

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GLOBAL SCENARIO

"India will become the largest DTH market in the world in terms of subscribers by 2012, overtaking the United States"

India is poised to become the world's largest direct-to-home (DTH) satellite pay TV market with 36.1 million subscribers by 2012,

overtaking the US, a report by research firm Media Partners Asia (MPA) says.

In its report titled 'Asia Pacific Pay-TV and Broadband Markets 2010', MPA said India's DTH

subscriber base will increase from 17 million in 2009 to 45 million by 2014 and 58 million by

2020.

The industry sales is expected to grow to $12.1 billion by 2014 and touch $18.5 billion by 2020, it said adding that most DTH players will start making money after 2013.

The DTH operators today are toiling under a heavy tax regime and subsidies given to customers on the new set-top boxes.

The Indian pay-TV sector (DTH and cable) generated sales of $6.5 billion in the last financial year ended March 2010, which is expected to grow to $12.1 billion by 2014 and $18.5 billion by 2020, MPA said.

"We are more positive on India's DTH opportunity than previously, especially when anchored to consolidation and improved pricing power with continued growth," MPA Executive Director Vivek Couto said.

"We suspect the DTH market will consolidate from six to four platforms within three to five years, and the estimate four will be making money at the EBITDA level by financial year ended March 2013," he added.

MPA expects competition to remain intense as the tug-of- war for customer acquisition shifts to regional markets.

"The major risk to all our growth assumptions is regulation, which continues to commoditise and destroy industry value," Couto said.

Pay-TV subscriber base is projected to grow from 105 million in 2009 to 149 million by 2014

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and 173 million by 2020.

While cable will retain 70 per cent market share by 2014, it is expected to decline to 64 per cent by 2020, with DTH scaling up to almost 35 per cent share in the long-term.

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Current Indian Scenario:

The Direct to Home (DTH) Industry in India is in the throes of multifarious challenges and opportunities. The big gameis all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes „big value, akin to the space occupied by television and telephony, inter- firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving the subscription base, popular bouquet of channels, set top boxes with superior quality of videos, improving content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 16 million households having digital pay-TV.

In the early 2008, five major players, Zee’s Dish TV, Tata Sky, Reliance ADAG,Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI). Dish TV is the largest DTH provider with a subscriber base of around 5 million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big Tv about 1.2 million and Airtel Digital Tv about 0.3 million subscribers (Source: Business Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country not connected by terrestrial or cable television.

DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing.

Tax burdens on DTH are another area of complaint for operators.Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. Apart from this, there are entertainment taxes that differ from state to state.

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h Bijoor, a brand consultant, “Since Dish TV, the biggest market player on the Indian soil, has not scraped even

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World DTH History

In 1962 Telstar satellite relayed a television signal over North America, sparking off the satellite television revolution.

India too experimented first with satellite television in the mid 1970s under the SITE programme and later in 1982 with the Doordarshan national network. The exponential growth of cable TV in India in the 1990s made us a part of the global satellite television revolution.

Now the stage is set in India for the next generation of satellite TV -- Direct to Home broadcasting.Location and accessibility to the cable line no longer matters in a DTH scenario. That's because the programmes are beamed directly to the television at home. DTH broadcasting uses the upper portion of KU band transponders in a satellite to send hundreds of channels for downlinking on earth. Using a mini parabolic receiving dish and an integrated satellite receiver decoder, a subscriber can connect directly to the satellite platform provider.

The receivers are commonly known as set top boxes and have proprietary encoding technology built into them. The downlink, from satellite to earth, operates at frequencies between 12.2 and 12.7 gigahertz.

DTH was launched as a business in the UK in 1989 and is now a reality all over the world. In Europe the overall market share of DTH in 2004 was 21.4 per cent of all TV homes, with the figure for Germany being almost 40 per cent.

In Europe the main DTH platforms are Canal Digital, Viasat and UPC. The UK has had a number of providers over the years -- Sky, British Satellite Broadcasting, BSkyB and now Sky Digital.

In South Africa, Multichoice is the DTH platform and Canada has two legal DBS services, ExpressVu and Star Choice. Japan has Sky Perfectv and Latin America's main satellite service is Sky Television. Australia and New Zealand too have DTH with Foxtel, Optus and Sky Network Television.

A new battle is now being waged in America. This is between the two major DTH providers -- Directv and Dish Network. Currently, about 10 per cent of all households in America get their television entertainment through satellite. But with the advantages a satellite system has over cable, this number is expected to double in the coming years.

In 1994 Directv was the first entertainment service in the US to deliver all digital-quality, multi- channel TV programming to an 18-inch satellite dish as an alternative to cable. In the first year

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of service almost one million systems were sold. There are now over 10 million customers across America. Its only rival, Dish Network, was the first to offer two-way, high-speed internet access via satellite through Start Band and the first satellite TV system to offer over 500 channels of digital video, audio and data throughout the US.

Launched in December 1995, it reached its first million customers at the end of 1997. Headquartered in Englewood, Colorado, Dish Network is owned by EchoStar Communications Corporation, a public company with approximately 20,000 employees.

Both companies are enticing potential subscribers with everything from free toasters to private trapeze lessons. For subscribers in the US, the decision is based on channels offered and the price.

Directv offers over 225 channels, including a number of digital video recorder programming packages and local programming in all major cities and most metropolitan areas across the US.

A subscriber pays either $40 a month for 100 plus channels, including local channels, or about $88 a month for those same channels plus 30 premier movie channels. Dish Network offers the lowest price package of channels at $32 and all 180 plus regular channels plus 31-plus movie channels for $83 per month. Dish Network retailers even offer two free digital video recorders to each subscriber and install the system in up to four rooms of the house with no upfront fee.

In programming choices, both networks have plenty of channels, but Directv has a few extra sports channels. It also offers three to five South Asian channels, including Star India, for between $30 and $60 a month. Dish Network on the other hand offers Zee TV, Zee Cinema, Sony Entertainment TV, B4U and TV Asia for $25-50 a month.

Both networks have introduced digital video recorders, a great new technology that lets subscribers view satellite TV when and how they want to. They can pause live TV to answer the phone and skip through commercials on recorded programmes, besides recording up to 100 hours of programming and more. A subscriber can even record two programmes at the same time.

The battle to grab more subscribers in the US continues unabated. With DTH making its appearance in India, there is likely to be a rice, programming and technology war to attract DTH subscribers. As in the US, let's hope the consumer wins.

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VIDEOCON INDUSTRIES LTD.

Videocon industries ltd. Headed by Mr. Venugopal N. Dhoot is a $4 million USD Conglomerate founded by Mr. Nandlal Madhavlal Dhoot in 1979. It has its headquarters in Aurangabad, Maharashtra, with basic operations in the field of colour picture tube manufacturing, oil & natural gas, and consumer durables. The company deals in a vast product mix like consumer electronics, Home Appliances, Components, Office Automation, Mobile phones, Wireless, Internet, Petroleum and Satellite television. It has its presence in many parts of the world including India, china, Mexico, Italy, and Poland. It has recently started operations in countries like Oman, Australia and the Timor Sea near Indonesia. And It has 30% market share in india and was ranked 44 th in india in ‘Business India’s Super 100’.

COLOUR PICTURE TUBE MANUFACTURING AND LCD’s :

Videocon holds the third position among the largest colour picture tube manufacturers in the world. They occupy 21% of the Indian market with only LG and Samsung leading the foray with 40% and 38%. the scope of business in the areas of LCD’s and plasmas is well understood by the chairman Mr. V. N. Dhoot, thus Videocon has recently diversified into the same.

In the manufacturing of LCD’s the glass panels required are a major cost and as Videocon manufacturs such panels (with production equal to 19 million glass panels per annum) it

becomes very easy for it to manufacture LCD’s at lower

costs. .

Moreover the government grants

a 25% subsidiary to LCD manufacturers. The acquisition of Thomson and Electrolux was also a major step for an Indian company, As not many Indian companies are able to acquire foreign firms with half the ease. Now Thompson holds a 15% stake (for an investment of Rs. 2686.8 Cr) and electrolux holds a 5% stake in the firm.

Videocon grew its manufacturing business by taking advantage of policy-friendly locations. Aurangabad, for instance, is classified under Zone 'D' under the Special Industrial Development Zones Scheme. The Aurangabad factory allows an exemption till 2017, This, over the years, works out to a tax benefit of 135 per cent on investment. Eleven of our 12 factories in nine states are based on exemptions past and present. Seventy per cent of our sales come from locations that are exempt from sales tax. this way, Videocon saves around Rs 200 crore in taxes every year.

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OIL & NATURAL GAS

An important asset for the group is its Ravva oil field on the cost of andra Pradesh with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The firm has also started operations in oman.

CONSUMER DURABLES

In India the group sells consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Videocon Group brands include Akai, Electrolux, Hyundai, Kelvinator, Kenstar, Kenwood, Next, Planet M, Sansui, Toshibha, Philips (TV Products) etc. Their recent venture has been in mobile phones and telecommunication services and in DTH services known as D2H.

FINANCIALS

It is listed in the BSE as 511389. The Videocon group has an annual turnover of US $4.1 billion and a Net income of US $276 million, making it one of the largest consumer electronic and home appliance companies in India.

In the quarter ending Dec’ 09, Videocon had sales of 11886 Cr, compared to a sales of 12172 Cr in 2007-08. Thus the company encountered a 2.35% loss in sales last year majorly due to the recession. Its PAT (profit after tax) for Dec 09 was 1098 Cr as compared to last year’s profit of 706 Cr. This showed a drastic increase in profits upto 55.57% since the last year. Moreover the NFA (net fixed assets) increased by 1731.57% over the last year and became 9074 Cr. And the market capitalization stood at 5389 Cr.

SOCIAL INITIATIVES

Videocon understands that giving back to the society is as important as making profits. The chairman Mr.Dhoot belives that one must give back to the society in such ways that the benefits gained out of such charity are long lasting and not short lived. The charity must also help in furthering the economic development of the country. Thus instead of huge monetary donations Videocon has built schools and hospitals with world class facilities which cater to the under privileged.

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PRODUCT MIX

Videocon has a wide array of products ranging from consumer durables, home appliances and components. These are mentioned below:

Consumer Durables

Mobile phones

CRT TV

Plasma TV

LCD TV

Home entertainment systems

Audio/video products

Home appliances

Washing machines

D2H

AC

Air coolers

Mixers toaster

Iron

Microwave

Vacuum cleaners

Water purifiers

Refrigerators

Displays

Plasma panel

CPT

LCD panel

Components

Glass

Panels

Funnels

Compressors

Plastic

Motors

Mouldings

Packaging

They have their manufacturing facilitries in the following countries

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Manufacturing Facilities INDIA (7) CHINA (2) POLAND MEXICO OMAN ITALY
Manufacturing Facilities
INDIA (7) CHINA (2)
POLAND
MEXICO
OMAN
ITALY

Figure in bracket indicate the number of manufacturing facilities in that country.

Introduction to Bharat Business Channel Limited (BBCL):

Videocon Group is launching Direct To Home services & Mobile Handsets in India under the banner of BBCL (Bharat Business Channel Limited) with brand name of Videocon d2h.

DTH stands for Direct To Home which is a direct mode of transmission between Broadcasterand, Subscriber through satellite. Broadcast centre collects the signals from different programming sources (like Sony, Zee, and Star). It processes the Signals and beams it to the Satellite. Satellite will reprocess the signals and retransmits the signal to the subscribers.

Welingkar institute of management Manufacturing Facilities INDIA (7) CHINA (2) POLAND MEXICO OMAN ITALY Figure in

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Welingkar institute of management Objectives of the project: ∑ Study the global DTH market of prominent

Objectives of the project:

Study the global DTH market of prominent countries.

Their origin

Growth

And current trends

In depth analysis of DTH industry through the porters model.

SWOT Analysis

Make a BCG Matrix for the same.

Study the Indian DTH market and enumerate the top players

Do a comparative study of the various DTH players

Check the current penetration of Videocon DTH and its competitors.

A study of TRAI rules pertaining to the DTH industry to understand its governance.

Cable TV v/s DTH

Track the growth of the Indian DTH industry

Track Videocon’s Growth, technology, Logistics, Labor ,Marketing, Strategies ,

Competitors

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EXECUTIVE SUMMARY

This project has been made by assimilating the work done in two companies namely Videocon and Planet M. the project initially started for the Videocon D2H industry wherein an in depth analysis of the industry and its players was done both on a global and Indian level. But because this did not take as much time as was thought to a different project was also taken up in Planet M (sister concern of Videocon) to manage time more effectively.

While the project in Videocon delves into the question of weather India can accommodate 6 DTH players or not, as there are an average of 2 to 3 prominent player per country in the global market, the Planet M project was more on the lines of doing events and Brand promotions to increase and maintain foot fall and sales.

VIDEOCON:

The question put forward was a very precise one. Though DTH has evolved recently in India the number of players in the industry are fairly large. When researched, It was found that the global market place has a majority of countries which have an average of 3 prominent players in the DTH industry. This was entirely contradictory to India’s situation where there are 6 prominent players present in the industry. On further analysis it was evident that because of the level of profits and the low entry barriers many more players could easily join this foray. India is expected to surpass the US DTH customer base by 2012 even though the market penetration of the DTH industry is very low. This makes it clear that there is enough for everyone to feast on. And with the ever growing population statistics answering this question will not be difficult.

To analyse the question at hand and its varying outcomes an analysis of the global market was done. Then the Indian market was targeted and a study on the Indian DTH industry was carried forward by doing the porters five force analysis, making the BCG matrix and doing a SWOT analysis. Then a comparative analysis of the various DTH players in India was done to find out who is better and which brand is demanded the most and why. The individual Advantages and disadvantages of every player in the Indian market was also done. After the comparisons were over the common problems with Videocon D2H were enumerated and solved, following a conclusion to the report.

The conclusion was that india can accommodate these 6 players with ease, as the market penetration of these services has not yet reached saturation and the convenience of satellite connections over wires is a welcome change.

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PLANET M:

Planet M is a youth brand focusing on their needs, wants and likes. Being a medium level retailing firm it struggles with the common retailing problems like moderate cash flows, low customer retention and the need to innovate the products and schemes very often. An effective defence mechanism adopted by Planet M is its ability to evolve and distinguish itself from its competitors. It is one firm which comes up with new and attractive schemes to increase foot fall and sales, and that is it biggest strengths. Planet M organizes an event every weekend to promote young talent. It even has many schemes which are instrumental in its growing demand and higher profits. Some of its schemes are the ‘48 hour price challenge’, ‘*60% off’, ‘ek ke saath ek free’ etc.

The essence of this project revolves around the working and the strategies of the firm. As mentioned above Planet M organizes events to create brand awareness and hype, and this is precisely what was done during the making of this project.

Being a part of the marketing team I handled events and promotions which was an exquisite experience. These include events for Planet M, event in collaboration with Radio Mirchi ‘Mirchi Create With Agnee’, Michel Jackson promotion which paid a tribute to MJ etc.

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Porter’s Analysis of the DTH industry:

Welingkar institute of management Porter’s Analysis of the DTH industry: 1. Threat of substitutes: DTH faces
  • 1. Threat of substitutes:

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates, there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission.

Terrestrial Television:

Doordarshan is the worlds largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of Indias geographical area. Covering the remaining 12% area required substantial capital

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investments which does not outweigh the benefits. The transmission was done originally in Analog mode but beginning from 2002, Doordarshan has partnered with BBC resources – the consulting wing of BBC, in offering digital terrestrial TV. The transmission could be received using a low cost Yagi antenna. However, due to lack of attractive content it does not seem to be a formidable threat for DTH.

Cable TV:

Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai, Delhi, Mumbai and Kolkatta, and through non-addressable system in the rest of the country. As seen from the above diagram Cable TV enjoys the maximum share as compared to other medium. In case of CAS controlled areas, the subscriber has to buy Set Top Box (STB) to see the pay channels. On the other hand, in areas where non-addressable system is used, nearly all the channels are available without the need of any separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on the place. Due to phenomenal reach of Cable TV, it poses a serious threat to the growth of DTH industry.

Internet Protocol Television (IPTV):

IPTV is a service where television signals are digitally sent over the telecommunications line. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data (Broadband Internet) services. With widespread adoption of broadband in the country and the growing techno savvy population, IPTV has a potential to become a huge success.

IPTV takes the interactivity to a newer level. In regular mediums, all the channels are pushed to the consumer regardless of his preference. IPTV encourages a two-way request response model where the consumer chooses the programs he wants to view.Right now thos medium is totally unregulated and cable companies are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of Cable TV act. IPTV is a considerable threat to DTH in urban and semi urban areas where broadband has made its mark.

  • 2. Bargaining power of suppliers:

DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of the satellite dish, Set Top Box with the necessary Access card, the Ku band transponders in the orbiting satellites and content. With India overtaking Japan as Asias largest DTH, the bargaining power of Indian DTH operators with CPE supplies have increased.

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However, the availability of transponders is increasingly becoming difficult. The Ku band transponder is generally provided by Astrix, the commercial wing of ISRO either through its own satellites or by leasing transponders from suppliers. With only two domestic satellite launches between 2007 and 2010 an d increasing DTH players, Astrix is in a better position to use DTH as its cash cow for the next 5 to 10 years. Also the crash of INSAT 4C and NSS-8 has worsened the situation of DTH players. As there is not much of regulation particularly in terms of channel pricing, acquiring content from the broadcasters is also difficult. DTH vendors are at the mercy of the broadcasters.

  • 3. Bargaining power of buyers:

With enough options to choose both from the pont of alternate mediums like Cable, IPTV and Terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to decide. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity

  • 4. Inter firm rivalry:

With 6 operational players, the inter firm rivalry is quite high. The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not charge any monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections. Being the first mover, Dish TV has price advantage in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its STB having superior DVD quality video. Other than price wars and intense competition in increasing customer base, there is also a competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part of big groups that also have popular bouquet of channels like Zee, Star and Sun respectively. The channels indirectly refuse content for DTH operators by charging exorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint.

  • 5. Threat of new entrants:

With already 6 players in the DTH space, threat of new entrants is relatively low.There is already enough competition which will discourage new firms to enter this business. While getting a license is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the required transponders.

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SWOT Analysis

STRENGHT

Growing number of player and competitive advantage. Supply creates its own demand. Brand name Service and flexibility.

WEAKNESS

Skilled labor Satellite technology Signals Viewer migration. Uncertainty in viewer ship.

OPPORTUNITY

Technology

Distribution

Innovation

Value adding

THREAT

Economic downturn. Climate Radio Cinema halls Broad casting of channels New entrants

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Concept of growth share matrix (BCG model)

The BCG – GROWTH SHARE MATRIX is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name” growth share”.

Welingkar institute of management Concept of growth share matrix (BCG model) The BCG – GROWTH SHARE

Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth- share matrix also can be used for resource allocation among products within a single business unit.

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In the DTH industry when the market share is obtained then it is automatically treated as the market leader, and also it needs maximum market share to extent, when the market is not in incremental state then the growth rate of the industry will retain. Again this industry follows all the variables in the all areas till the both will come into normal level.

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The Indian DTH marketre of the Indian DTH industry

The structure of the DTH industry in India can be categorized as an “Oligopoly”. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). An oligopoly is a market dominated by a few large suppliers. The degree ofmarket concentration is very high. Firms within an oligopoly produce branded products and there are also barriers to entry.

Key characteristics of “Oligopoly” are following:

Few larger supplier dominates the market

Interdependence between firms

Each firm produces branded products

Significant entry barriers into the market in the long run which allows firms to make

supernormal profits Each oligopolist is aware of the actions of the others

List of major players in the industry

  • 1. Doordarshan – (DD-Direct +) of Prasar Bharati comprising of 33 FTA channels and 12 All India Radio Channels.

  • 2. Dish TV of ZEE group.

  • 3. Tata Sky joined venture between Tata and Rupert Murdoch’s Sky TV.

  • 4. Sun direct of Sun Network.

  • 5. BIG TV of Reliance Anil Dhirubhai Ambani group.

  • 6. Airtel digital TV of Bharati telemedia

  • 7. Videocon d2h of videocon industries

Categorization of players in the industry

Government owned player: DD Direct+.

Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon d2h

Brief profile of players in the industry

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DD DIRECT+

Doordarshan is the public television broadcaster of India and a division of Prasar Bharati, a public service broadcaster nominated by the Government of India. It is one of the largest broadcasting organizations in the world in terms of the infrastructure of studios and transmitters. Recently, it has also started Digital Terrestrial Transmitters. On September 15 2009, doordarshan celebrated its 50th anniversary.Doordarshan had a modest beginning with the experimental telecast starting in Delhi on 15 September 1959 with a small transmitter and a makeshift studio. The regular daily transmission started in 1965 as a part of All India Radio. The television service was extended to Bombay (now Mumbai) and Amritsar in 1972. Till 1975, seven Indian cities had television service and Doordarshan remained the only television channel in India. Television services were separated from radio in 1976. Each office of All India Radio and Doordarshan were placed under the management of two separate Director Generals in New Delhi.

Finally Doordarshan as a National Broadcaster came into existence.National telecasts were introduced in 1982. In the same year, color TV was introduced in the Indian market with the live telecast of the Independence Day speech by then Prime Minister Indira Gandhi on 15 August 1982, followed by the 1982 Asian Games being held in Delhi. Now more than 90 percent of the Indian population can receive Doordarshan (DD National) programmes through a network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce TV programs today.

DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and audio programming to households and businesses in the Indian subcontinent. Owned by parent company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and broadcasting.

Dish TV

Dish TV is the first private DTH satellite television provider in India, using MPEG-2 digital compression technology, transmitting using NSS Satellite at 95.0. Dish TV's managing director and Head of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President of Indian Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish TV. Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV has national and global presence with business interests in media programming, broadcasting & distribution, speciality packaging and entertainment. Zee Network incorporated dishtv to modernize TV viewing. By digitalizing Indian entertainment, this enterprise brought best television viewing technology to the living room. It not only transmits high quality programmes through satellite; but also gives a complete control of selecting channels and paying

DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Enterprises. Dish TV is on the same satellite where DD Direct+ is. Dish TV started its service in Pakistan

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with the collaboration of Budget Communication. Dish TV was only DTH operator in India to carry the two Turner channels, Turner Classic Movies and Boomerang. Both the channels were removed from the platform due to unknown reasons in March 2009. Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17 December, 2002 by European-based satellite provider, New Skies. Dish TV hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the satellite was to increase the channel offering as NSS 6 offered more transponder capacity.

Tata Sky

Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital compression technology, transmitting using INSAT 4A at 83.0°. Tata sky is incorporated in 2004; Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH endeavors to offer Indian viewers a world-class television viewing experience through its satellite television service. Vikram Kaushik is present CEO of Tata Sky Ltd. The TATA Group is one of India's largest and most respected business conglomerates. It comprises 93 operating companies in seven business sectors and diversified group: information systems and communications, engineering, materials, services, energy, consumer products and chemicals. The TATA Group has operations in more than 40 countries across six continents and its companies export products and services to 140 nations.

The Group and its enterprises have been steadfast and distinctive in its adherence to business ethics and their commitment to corporate social responsibility. This is a legacy that has earned the Group the trust of many millions of stakeholders in measure few business houses anywhere in the world can match. The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Tata Sky the reputation of more than 20 years experience of satellite broadcasting. SKY is well known for the innovative products and services launched by BSky, such as DTH broadcasting in 1989, digital satellite broadcasting in 1998, interactive television services in 1999 and the SKY+ personal video recorder in 2001. Tata Sky joins an international group of DTH businesses that includes platforms as far apart as the UK and Italy in Europe, and Mexico and Brazil in Latin America. Tata Sky Ltd is the First Indian DTH provider to be awarded the ISO 27001:2005 accreditation, the ultimate benchmark for information security. The assessment for the certification was conducted by Intertek Systems Certification, the management systems registration business unit of Intertek Group plc and is accredited by several internationally-recognized accreditation bodies worldwide.

In October 2008, Tata Sky announced launching of DVR service Tata Sky+ which allowed 45 hours of recording in a MPEG-4 compatible Set Top Box. The remote is provided with playback control keys and is being sold with special offers for existing subscribers. Tata Sky was selected as a SUPER BRAND for the year 2009-2010 by an independent and voluntary council of experts known as Super brands Council. It is the only Indian DTH to have won this distinction.

Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression technology, transmitting using INSAT 4B at 93.5°E. It is the country's first MPEG 4 technology

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DTH service provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Nadu. Sun Direct TV was registered in February 16, 2005. However, the failed launch of INSAT 4C resulted in a lack of transponders, delaying the launch. The service was finally launched on December 2007 after availability of transponders from INSAT 4CR. Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and announced its pan India launch. By 2009 it became leading DTH provider with 3 million subscribers. This makes it 4th largest DTH service provider of India. In April 2009 Sun Direct officially launched its High-Definition service in India. Sun Direct uses the latest MPEG-4 based technology to increase broadcast capacity.

Sun Direct provide next-generation services in fast-growing and emerging markets quickly and efficiently. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven real-time scalability allowing it to consolidate billing operations, enables powerful new service offerings and improves visibility into customer information across services.

BIG TV

Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai, using MPEG-4 digital compression technology, transmitting using MEASAT-3 91.5°east. It is the 5th DTH service launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil Ambani. BIG TV started operations from 19 August 2008 with the slogan "TV ho Tho BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to 200 channels and many interactive ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as many Radio channels. The company plans to increase the number of channels in the near future to 400 and begin High Definition (HD) broadcast. It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting. There are also plans to introduce services like i-Stock, i-News and other such interactive services in the future.

Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing the consumer with quality and enriched home entertainment service at value-driven pricing. Reliance BIG TV's launch in August was probably the biggest roll-out in home entertainment ever and deployed the most advanced MPEG4 technology that enabled them to deliver best quality digital audio-video to the consumer. It also got prepared for the future when Hi-Definition TV will be launched in India because only MPEG4 technology can support HD TV and not MPEG2 which is used by the earlier entrants in the DTH industry.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in India. This was literally unheard of in the DTH industry. They had effectively out-stripped the competition here. When it came to pricing – packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of free subscription. They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH player.

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Airtel digital TV

Bharti Airtel Limited is the flagship company of Bharti Enterprises and is India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. As India's leading telecommunications company, the Airtel brand has played the role of a major catalyst in India's reforms, contributing to its economic resurgence. Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services.

Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It uses MPEG-4 digital compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E. Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come Home to the Magic. Since then it has launched 2 other campaigns: ‘Stars come home’ (March 2009) and ‘DTH Picture Clarity (August 2009) has increased its channel base to 183+ channels. Airtel digital TV is now amongst the fastest growing DTH brands in the country and is available across 5000+ towns in India. It has also been ranked as the best DTH service by “Living Digital” magazine. Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright future in Indian market as the people are getting more attracted towards DTH because of its quality and affordability.

Videocon d2h

Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4

with DVB S2 digital compression technology.Videocon Leasing & Industrial Finance Limited was incorporated on 4th September, 1986 as Adhigam Trading Private Limited. In terms of the necessary resolutions Passed under Sec. 21 of the Companies Act, 1956, the name of the company was changed to Videocon Leasing & Industrial Finance Limited on 14th February,

  • 1991. The Company received a fresh certificate of incorporation from the Registrar of

Companies, Gujarat at Ahmedabad on 14thFebruary, 1991.

Videocon d2h launched May 1, 2009. it came with a very good strategy for selling both of its electronic products like TV’s DVD’s along with the new set top box. This is offering direct to

TV without any set top box also. Only the antenna is enough, it also came with DVD which is connected directly to the TV or antenna is connected to DVD which gives a best quality of output.

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Cable Vs. DTH - An Overview of the World Scenario

In the wake of the opening up of the earth and skies (literally) to private operators, India is all set to see a "war of the accesses". With very few large players, a widespread geography and an extremely rowdy and unorganised cable operator set-up, the options between DTH and Cable as access modes are both set to woo the ever increasingly discerning Indian consumer.

This part attempts to provide an overview of the world scenario and draw some parallel (if any) to our country. I have tried to collate information from various countries, all in different stages of "access provision" development.

Canada

Cable competition has increased in Canada in the past few years due to changes in technology and government regulations. There have been delays, however, in launching direct broadcasting services (DBS), largely due to restrictions against non-Canadian programming - 51 per cent of channels carried on cable and DTH must be Canadian programming. As a result, a "gray market" exists: subscribers illegally using US made dishes and receiving US satellite signals. Despite the popularity of the dishes, Canadian DBS consumers basically face the same problems as US consumers: 1) Lack of local broadcast signals, 2) expensive equipment and installation, 3) zoning laws and tenant restrictions against mounting dishes, and 4) digital converters necessary for each TV set (and additions are costly). As in the US, the main factors affecting consumer choice between cable and DBS are programming choices, cost, and signal quality. In major markets, DBS offers a few local channels but cable still has the advantage. As in the US, Canadian cable operators plan to compete with DBS via new services, i.e. internet, digital and telephony. Despite competition from DBS and other subscription video services such as wireless, cable penetration has increased in the past few years, from 65.3% in 1994 to 67.8% in 1996.

Competition in Canada is likely to increase overall multichannel subscribership, but cable has an advantage due to price and local programming.

Latin America

Latin America has approximately 13.4 million multi-channel subscribers with an overall penetration rate of 15 per cent. The problem with piracy has started to improve as thousands of cable licenses are being granted across the region. Deregulation of both cable and telecommunications is bringing foreign investment into Latin America, especially from the US, Canada and Europe. Consolidation and acquisition is necessary in order to upgrade cable networks to provide cable telephony and other new services. Smaller cable and MMDS systems are being acquired by the major MSOs.

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DBS has provided further impetus for cable operators to upgrade, with their digital packages providing 150 and more channels compared to 50 on cable. There were 487,000 subscribers to DBS in 1997, with 3.2 million forecast by 2002. Due to its high cable penetration rate, DBS growth in Argentina may be limited. Regulations and pricing have slowed DBS progress - equipment costs and programming packages are expensive for the average consumer.

Overall, DBS is not a major threat to the cable industry in Latin America, especially with many MSOs becoming DBS distributors in their countries.

Europe

Cable companies around Europe are consolidating in order to upgrade their networks to provide digital, interactive and telephony services in Europe. Cable telephony is already in service in the UK and Scandinavia and is cable companies' biggest strategy against DTH in those countries. In fact, in the UK, cable telephony revenues are surpassing cable television's. Cable television has over 30 million subscribers in Europe, but DTH is no idle threat with 17 million. Germany leads the region in both cable and DTH subscription with 28 million subscribers in both. Cable television has been in the U.K. since the early 1980s when the first franchises were awarded. In 1990, DTH services were launched with BSB and Sky - they were not successful and merged. Significant consolidation has taken place and today there are some half dozen cable operators.

The UK has more DTH households than cable with a penetration rate of 15.9% vs. 11.8%.

In Eastern Europe there is a high penetration of analog DTH compared to cable, but nothing much happening in digital either way so far.

Sub-Saharan Africa

It is difficult to predict the future for television in Africa. The liberalization of broadcasting regulations and the increasing penetration of low cost DTH technology have led to significant growth in Africa's television market. In November 1995, Multi-choice was launched and continues to dominate the African DTH market. Multi-choice claims over 1.1 million subscribers, and even far-away places such as Zambia are receiving Multichoice's M-Net channels and have as many as 4,800 subscribers.

The challenges, however, facing the African DTH market can be identified by a lack of funds, technological discrepancies or government intervention.

DTH seems to be the most economical method of reaching widespread population, however it is also faced with the challenge of providing services to a country having over 60 dialects and widespread population that may have no interest nor means in paying for a satellite service because of its cost.

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Middle East

The Middle East, with a population of over 165 million and over 26 million television homes, demonstrates a market with significant potential. However, it remains a market where only a small minority actually pays for what they watch on TV. Cable TV is experiencing growth first beginning in Israel but Qatar has 12 channels available, while Bahrain and the UAE both have ten. The multi-channel alternatives, satellite and MMDS, are increasingly important, though in some states such as Qatar they are mutually exclusive. The satellite TV sector exploded after the Gulf War with the launch of services such as ESC (Egypt) and MBC (UK) in 1991, EDTV (Dubai, UAE) in 1992, Abu Dhabi in 1994, LBCI, FTV (Lebanon) and Al Jazeera (Qatar) in 1996 and ANN, a Syrian-owned channel broadcast via London, in 1997. The consumer taste for variety and polished programming packages has laid the foundation for the conversion from over-the-air broadcasting to pay TV.

The challenge to becoming a successful operator in the Middle East lies in the provider's ability to offer a unique product while adhering to the cultural and religious sensitivities of the market.

Satellite penetration is as high as 27% in Saudi Arabia and as low as 6% in Lebanon. Because of this widespread difference, it can be argued that MMDS will become the dominant medium for pay TV. Star TV, for example, is marketing the MMDS network in Qatar, Dubai and Bahrain.

Finally, the Middle Eastern television viewer has yet to come to terms with actually paying for quality entertainment, but time will tell what will happen.

Asia and the Pacific

Broadcasting in Asia continues to grow by leaps and bounds. Penetration is consistently on the rise with DTH and cable penetration currently reaching one in five TV households and estimated to reach one in three households by 2005. In 1991, the first subscription DTH service was launched which led the way in the Asian satellite revolution. Growth is expected in cable, MMDS as well as DTH to meet consumer demand which is likely to rebound strongly after the current turmoil recedes.

Which technology prevails in each market is likely to be determined by a combination of factors including geography, which technologies were first established, which players have the most "political clout", etc.

Concentration of population and income level will dictate the ease in which a consumer can access a pay TV service.

Australia

In July 1997, the telecommunications market in Australia was deregulated allowing new carriers to compete directly with the two incumbent carriers, Telstra and Optus. Australia is also a unique

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study in cable, because it is one of the few countries in the world where competing services are laying fibre-optic cable and hanging it overhead simultaneously.

The road to convergence in Australia has also not been a smooth one. The services vying for the ability to provide cable, telephony and data transmission all in one are experiencing losses at an alarming rate. Cable is in a state of overbuild with over 1 million homes already passed. It also seems that these competing cable companies are readily accepting losses in order to gain market dominance. Attempts to merge these systems have been repeatedly foiled by Australia's anti-trust regulator, the ACCC.

Just what the future holds for Australia is unpredictable but one thing is certain, opportunities exist for the large and knowledgeable participant in traditional media and television, while emerging technologies and convergence opportunities will arise with the deregulation of the telecommunications sector.

India

India is a dynamic study in itself. Just ten years ago, about 20 per cent of the total homes could only receive government services broadcast on one channel operated by Doordarshan, the national television operator. By 1997 there were 50 private satellite channels and 19 different services from a revitalised Doordarshan. One-third of the homes now have television and about 10 per cent of the total homes subscribe to cable.

The most significant event in the cable sector was the passage of the Cable Television Ordinance Law in January 1995. This ordinance requires the registration of cable operators and mandated technical standards that required most operators to upgrade their systems in addition to issues regarding content. This legislation has ended the "cottage industry or small scale industry," at least in the secondary cities. At one time there were over 100,000 cable operators in India, but that number has since been reduced to 60,000 networks. Many operators wishing to avoid the obligation of paying steep entertainment taxes, which can be as high as 30 to 40%, or the cost to upgrade their systems are selling out to emerging MSOs such as Siti Cable and In Cablenet or forming alliances to compete with larger MSOs.

The challenge for cable exists in the rural areas where installation and application are extremely cost prohibitive, and nearly three quarters of India is designated as rural territory. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. Some of the key player who have shown an interest in operating a DTH service are the Star, Zee Telefilms (the Subhash-promoted group has decidedly cooled off on it though) and the Modi Group. Two or three other DTH packages are expected to launch in 2002, and package choice is likely to increase subscription rates in the medium term, although different marketing techniques may generate confusion as the benefits vary from package to package. DTH providers claim to target only the wealthy rural population, although a high proportion of their subscribers will be the urban rich as well, many of whom already subscribe to the higher-end cable

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networks. DTH, however, is faced with a lack of high quality programming, a lagging infrastructure for distribution and collection and technological barriers.

However much like the USA the extremely high penetration of Cable in the Indian households would be a definite threat to the highly optimistic proponents of DTH in the country. Also, the MSOs are in an active drive to upgrade their existing networks in order to lay a backbone for the recently liberalised broadband industry. Hence the cable operators seem to have won the first round of the battle by providing the consumer value additions in the form of high speed Internet and other services.

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GROWTH OF THE INDUSTRY

Rate of Growth

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. With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth prevailing every where. The average Indian’s disposable income and purchasing has risen to never before levels. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009 and the numbers are forecasted to surge further at a CAGR of around 30% through 2012, "Indian DTH Market Forecast to 2012". 20% annual growth is being witnessed in the DTH sector in India with over 8.5 million households having digital pay-TV. A report attributes that the anticipated growth to the efforts of DTH industry players who are all trying to lure viewers by cutting down prices as well as offering perks even though it translates into loss of Rs 1,600-2,000 on each new subscriber acquired by them. They have started to offer a number of value-added services such as 'movie on demand', live recording of TV content, matrimonial match-making, etc.

Pattern of Growth

The big game is all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes big value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving the subscription base, popular bouquet of channels, set top boxes with superior quality of videos, improving content, etc as a desperate means to entice the Indian viewer.

The pattern of growth is very difficult to determine because a business cycle takes place in long term. But this industry is having very short period for making or observing a business cycle. The analysis that can be made is though the economic cycles is not continues and it was in boom then when the industry started and now just the economy is in recovering stage from the recession. Interesting factor is that all the industries are hit seriously buy the rescission but DTH industry has reported growth continuously but only it has slowdown the rate of its growth. Now the industry is growing at 20% for every annum.

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Growth Determinants

Demand constraints and SCAR are the factors which effects the growth of the industry. Growth determinant and high TV sales increase the chance for more sales of set top box which will effect the growth. When the facilities of the products increase it acts as a growth determinant. The entertainment channels and the news channels players increase the growth to opt the DTH. Some of the DTH players are bringing innovative plans like live shopping, broad band, and etc will act as growth determinants.

TECHNOLOGY OF PRODUCTION AND DISTRIBUTION

Cost Structure

The costs incurred by the DTH players is mainly on its technology, satellite dish, set top box accessory cards, Ku band transponders in the satellites, customer premise equipment(CPE). The launch of satellites is another huge cost which the DTH plays shares the transponders. And it costs them much than any thing. Another cost incurred is on operating cost.

Economies of Scale

Economies of scale may be utilized by any size firm expanding its scale of operation. The common ones are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial instruments), and marketing (spreading the cost of advertising over a greater range of output in media markets).

Cost Advantages

1] Direct customer relationship. 2] Better storage 3] Extensive use of resources. 4] Availability of labour at cheap rates

Economies of Scope

An economic theory stating that the average total cost of production decreases as a result of increasing the number of different goods produced.Often, as the number of products promoted is increased and the DTH players used, more people can be reached with each rupee spent. These efficiencies do not last, however; at some point, additional advertising expenditure on new products will start to be less effective (an example of diseconomies of scope). If a sales force is selling several products they can often do so more efficiently than if they are selling only one product. The cost of their travel time is distributed over a greater revenue base, so cost efficiency improves.

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There can also be synergies between products such that offering a complete range of products gives the consumer a more desirable product offering than a single product would. Economies of scope can also operate through distribution efficiencies. It can be more efficient to ship a range of products to any given location than to ship a single type of product to that location. Value added

Many players are using this DTH as the basis and giving many value added services to the customers. Some of the players are giving best valued services to the customers like Airtel gives live-news, home shopping, live gaming, broad band, horoscope, radio, and etc. Tata sky is giving recording for more than 4 hours, and came with a differential strategy of Tata sky+ with other facilities. Big TV is giving live with Big movies, Dish TV is giving live TV on the wheels, and many other value additions.

Logistics

Logistics is still a nascent and fragmented industry in India. It is estimated that while outsourced logistics accounts for 54% of total logistics spending in India, organized players have only 10% of the pie.

DTH industry follows a good logistics which is as similar to the logistics which are used buy automobile industry, for the effective management of the DTH industry.

Labor

Labours are included in every activity of the business, most of the people working are not daily labours, they are employed and paid monthly in the form of salary. DTH requires skilled labor like management executives, administrators, software engineers, sales executives and attorneys.

Marketing

Market segmentation, marketing strategies, marketing practices and marketing concepts specific to the industry

Indian TV channel broadcast 15.7-mn advertisement every year, which totals to 362-mn seconds of TV advertisement every year. India currently has over 400 channels.TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to go hike in advertisement rate this year by 16-18%. Market segmentation in DTH industry mainly concentrates on women who don’t like missing their daily soap and news more ever women are able to learn English speaking which is a very special feature of DTH. DTH also concentrates on children also by providing them games, dictionary, some discovery videos specially inbuilt, maths, science and social

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knowledge. It also focuses on old people as it has updated videos of various holy and religious places.

DTH uses different marketing strategies for promotion and sales of its product. It gives advertisements with their brand ambassadors which attract customers, door to door selling, on the phone selling, discount and offer sales, packages, etc Marketing practices is a continuous process as the competition keeps increasing among the players in the industry. Each player is investing lots of money in promoting there brands. Many players are making advertisement with movie actor and actress as brand ambassadors for their products because DTH is mainly considered with entertainment.

Some of the companies like Tata sky is having Super Star Amir khan as brand ambassador and Airtel is having many film stars like kareena kapoor, A.R.Rehaman, saif ali khan, etc. Dish TV is also having Super Star Sharuk khan as the brand ambassador. Sun direct also uses southern actress for their brand promotion. Marketing practices are the decisions taken by the manufacturing company to increase sales, expand themselves into many areas etc. Successful marketing practices bring sale up, while unsuccessful marketing practices have no impact on sale or negatively impact sale.Marketing concepts specific to the industry is primarily targeted at a niche segment who buy the TV sets from the electronic retail chains. Innovation

Types of innovation, concepts of innovation relevant to the industry, source of innovation, rate of innovation and economies of scale.

The concept of innovation in DTH industry is INCREMENTAL innovation; every thing that is done is due to constant research of many marketing and analysts to bring many innovations to the existing products in the DTH industry. Incremental innovation is the apt innovation which is suitable and all the DTH players are concentrating up on. This innovation makes the business to grow continuously and brings advantages to the customers using the products and the service.

There are many sources of innovation for this industry as mentioned in the above, the technology and the people are the main sources for the innovation. Customer’s opinions and their needs can be served by providing a service which is matching to their needs and requirements. In this days every company setups its own R&D in its own company with very intelligent people for meeting the expectation op the customer.

Digital TV, the DTH service from Airtel, has announced India’s first skin integration innovation on its EPG screen in partnership with Yahoo. Yahoo takes forward its latest brand campaign “YOU” in this first of its kind partnership where an online portal will use DTH as a medium to promote itself.

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The ‘Electronic Programming Guide’ screen on Airtel digital TV is now completely integrated with Yahoo India’s homepage. Customers will find a message ‘Fill your home page with all the things that make YOU’ when they log onto to the EPG screen. A prompting ‘Red Button’ will take them to a dedicated landing page that elaborates the offerings on Yahoo India’s new home page. The ‘YOU’ campaign enables users to customized the home page as per their liking and empowers them with the choice to integrate social applications such as Facebook with their Yahoo homepage. This whole idea was conceived by NetworkPlay, right from design elements to execution and thanks to Mindshare for buying into the idea and flawlessly helping people execute it.

Tata Teleservices Limited has announced a technological breakthrough—a first-of-its-kind innovation in India with the launch of TATA Photon TV, a new application that allows Tata Photon Plus subscribers to watch live television channels on their laptops while on the move, and on their personal computers at home and in the office. The Photon TV service is exclusively available to Photon Plus users. “With its growing popularity, Photon Plus has caught the admiration of millions of users across the country, with its high-speed data access capabilities and the ease of mobility. TATA Photon TV is a personal computer- and laptop-based video-streaming application, which allows Tata Photon Plus users to view live TV feed from various sports, news, entertainment and regional channels, and to watch recorded TV shows from the library (viz Coffee with Karan, Zoom, Pogo, etc), movies, music and videos on demand.

Internet Browsing charges will be charged as per your Photon+ tariff plan and it would be applicable while viewing Photon TV. These charges would be over and above the subscription charges for the Photon TV. (approximate data usage is 1-2MB per Min).

Rate of innovation in this sector is growing at a faster rate in the recent years where as it is not very impressive before this period. The reason for this is the fair competition between the all players in this DTH industry. It led to the development of new products in this sector which also led to the diversification of products as there is abolition of entry of foreign industries into Indian industries initially. It also made the industries in this sector to establish their own R&D departments for successful product innovations like Airtel Live, Vediocon d2h.

The brand loyalty for each and every company is very high, so there is no need of lot of costs to be pored in marketing and promotion of the service and product. Every function that is performed by the players is a well planned and executed properly. So in all the areas those players are using the expertise people in the industry and performing operations in DTH industry very economically.

Strategies and competition in the industry

Competitors, Strategies used in the industry, Porter’s generic strategies model, porter’s five forces model and analysis using it, element of industry structure, porter’s value chain model

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analysis, swot analysis, concept of generic value chain, concept of growth share market matrix, company position .

Competitors

Every company has its own goal, every company wants to achieve and full fill its goals, many companies like the big players in the industry wants to grab most of the market share. Some of the companies want to achieve 10million customer base by 2010 they are Dish TV, Tata sky, Sun direct, BIG TV etc. The industry’s objective is to achieve 60million customers buy ‘2012’ i.e., nearly 50% of the present existing customers.

Strategies used in the industry

Technology transfer is one of strategy used in the industry and it is existence for a long time. In recent decades, concerted effort has been made to exploit the existing technology to a larger extent by transfer of technology, to generate greater economic impetus. It provides opportunity to generate larger returns on the investments made in R&D. Its importance lies in its ability to stimulate and strengthen the innovation process.

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Comparative analysis of the DTH players

Early lead on volume front to decide winners Competition in the direct-to-home (DTH) industry is so severe that the existing players are finding it tough to break-even and then show profits.

Two factors have contributed to this. First,

the average revenue per user or ARPU — an

amalgamation of subscription revenues plus activation charges of average subscribers in a specified period — has not shown linear growth for a long time. Especially, when one considers this in the light of the fact that subscriber acquisition costs for players have gone up.

A case in point is Dish TV. In the past two years, even though the company’s subscriber acquisition costs have come down from Rs 2,634 in June ’09 to Rs 2,383 in March ’10, its ARPU is yet to improve during the same period. Its ARPU in June ’09 was Rs 164, which fell to Rs138 in march 2010 This shows that conversion of analogue subscribers into digital is not taking place on a big scale. This stems from the fact that many players have access to the same technology and hence the only differentiator is the price. For instance, the recently-launched high definition services videos having resolution higher than the normal available resolution by almost all DTH players.

Sensing a lucrative source of revenue (premium subscribers) on offer by tapping the huge response to the ongoing football World Cup, many DTH players launched HD services of its content.

But considering that each player aims to garner a larger pie of the subscriber base of the industry, the price pegged for services has come down from close to Rs 6,000 to around Rs 2,600. This would result in a skewed distribution of revenues instead of few players gaining a sizeable revenue pie.

Now, there are reports that telecom regulator TRAI is proposing a formula in which the six DTH players would be required to pay only close to 30% of cable tariffs to broadcasters compared to 50% now.

This means a subscriber would have to pay less on a DTH platform than a cable platform. It remains to be seen how deftly DTH players tap into the subscriber base, as these subscribers have options available to switchover.

If the TRAI proposal comes into force, it may lead to a price war between cable operators and DTH players, with the only winner being the one which would outsmart others on the volume front.

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An upshot of this would be that DTH players would continue to struggle to increase their ARPUs. It would be good for players, if TRAI could delink DTH content pricing from cable tariffs. In fact, this would be good for broadcasters too, as cable operators declare lower revenues, while the DTH players share 100% revenues with broadcasters.

Dish TV vs. Tata Sky comparison

Founded in 2003, Dish TV was the first DTV television provider in India, they started a new era in home entertainment ever since their inception. As the market grew, the potential in a DTH market was realized and an year later, Tata Sky was incorporated, but launched its 205 channels package in 2006. As of right now, both providers offer great packages with immense value for their users and subscribers, with high quality in picture and sound to boast. however, if you look into the minute details of their packages, differences, flaws, shortcomings and overviews in general, the better one becomes apparent.

Over the years, Dish TV has made a name for itself, they got the initial market of users due to essentially being pioneers, however they couldn’t keep with their quality for too long. Upgrade in their services is not entirely concentrated on channel availability, image quality or sound capability. What this means is, Dish TV does offer a lot of things, but they miss out on the essentials far more often than not. A couple of examples would be the overall lacking quality of Star Movies and Star Cricket. The EPG feature on Dish TV isn’t very competent either and continues to host problems.

Unfortunately for it’s subscribers, Dish TV’s problems don’t seem to go away and appear on a regular basis. Customers often complain about the picture quality and audio, as stated previously. There has been a dim focus on the addition of International channels, also, Dish TV has been known to not add channels like Neo Sports in the past when the demand was at it’s biggest during cricket tournaments. In the customer care department, Dish TV doesn’t exactly shine either, with the more complicated problems going unsolved for long periods of time frequently. All the good things about Dish TV can be found in Tata Sky in the same capacity or better as well.

Tata Sky now, on the other hand, is a far more favorable option than Dish TV for regular customers. It has been in service for almost four years and have shown through time to be customer oriented. They continue improvement in their services, have better audio and video quality than Dish TV, and their software on the STBs is firm and stable. EPG is well managed and updated and the customer care is helpful in most situations. The most important thing, when it comes to Television, is the quality of telecast, even though both Tata Sky and Dish TV sport MPEG-2 digital compression with considerable image quality, Tata Sky has took a step further and launched Tata Sky+ that by far surpasses picture and sound quality as compared to Dish TV. Dish TV on the other hand has made no efforts to reach out to MPEG-4 compression yet. Dish

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TV recently introduced HD channels, but Tata Sky immediately complied and launched HD on their platform as well.

Even though Tata Sky is a better alternative. They aren’t perfect, and do have their share of problems, thankfully nothing major though, Tata Sky doesn’t boast a high amount of channels, but the ones that are available will accommodate any regular individual just fine, they lack a little on the regional channels part. A lot of times, a few key channels will be missing on the base packages and you’ll have to pay extra just to get those few channels in. Personally, for my needs, I believe Tata Sky’s packages are a little costlier than Dish TV, but other than that there are no problems. Tata Sky regularly adds new channels as well, and as mentioned before, have good customer support.

In the clash between these two pioneers of the Indian DTH industry, it seems as of now that Tata Sky is slowly taking the lead, with more emphasis on new technology (as showcased by their effort at DVR recording and MPEG-4 compression), Dish TV seems to be uninterested for now, but with more and more people switching to Tata Sky, they may have to take drastic action soon.

Comparison of Dish TV, Tata Sky, Digital TV, Big TV and DD DTH

The advantages and disadvantages of each of the DTH services, point by point, and enables you to minutely observe the good and bad so that you may see through everything before actually taking the decision of buying a DTH system.

DD DIRECT PLUS :

Advantages :

(1) DD Direct Plus is India’s first and only DTH service that offers its services absolutely free of cost. No monthly subscriptons to be paid when you are with DD Direct Plus.

(2) Small one-time initial investment on STB and Dish and you can use it life-long. (3) Apart from all DD chs, DD Direct Plus offers several popular private FTA (Free-To-Air) chs.

(4) As a bonus, DD Direct Plus also offers additional chs, from Dish TV’s satellite which are FTA from time to time.

Disadvantages :

(1) DD Direct Plus does not offer any EPG (Electronic Program Guide) facility, which all other DTH operator provides. Due to this, users are not able to check schedules on channels before- hand.

(2) New channel addition process is very slow. Several ch wait for approval from Prasar Bharati (DD Direct Plus), but its sloggish attitude makes the addition of new chs too late.

(3) DD Direct Plus revises and hikes its carriage fees all of a sudden due to which some channels tend to quit the platform.

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(4) Signal fluctuation issues occur at certain times, due to which some chs black-out temporarily.

Dish TV :

Advantages :

(1) The biggest advantage of Dish TV is its cost. (For old or existing customers at this point). It offers most of the popular chs at low cost. The highest pack costs Rs.325 per month, after which only 1 or 2 add-on packs are required to all almost all chs, unlike other DTH where you need several Add-on packs even after subscribing to the highest pack.

(2) Dish TV’s satellite being located very near to DD Direct Plus’s satellite, all Dish TV users enjoy the complete ch offering of DD Direct Plus as well. So any new ch added in DD Direct Plus automatically gets added to Dish TV channel offering.

(3) The software of Dish TV STBs are stable at the moment. This makes the switching speed between chs pretty fast. Also very less hang-ups of STBs reported till now. Thanks to Dish TV STBs’ great software.

(4) Only Dish TV gives its users access to exclusive never-before seen international channels which are not available even in cable till now. The platter includes MGM, TCM and Boomerang. Airtel Digital TV provides MGM India unlike Dish TV which still carries the direct international feed of MGM.

(5) Several new channels added recently are provided at no extra cost for the highest pack users, except for a few chs. (Currently only for existing or old customers). Whereas other DTH operators, have added the new launches in seperate Add-on Packs.

(6) Dish TV has a good no of Transponders to offer more chs to its users, including the recently contracted Protostar which means more chs for its customers.

Disadvantages :

(1) One of the biggest problems of Dish TV is its Customer Care and Customer Service which is definately not upto the mark. The CC executives lack professionalism in their attitude and after- sales support in certain areas are allegedly poor.

(2) Another serious issue is its audio and video quality. Quality on several (but not all) channels on Dish is not upto the mark. Too much of pixelation is seen on some chs and the audio standard is of course not of true CD quality.

(3) Dish TV misses out on few important ch packages which includes the Neo bouquet and the UTV group of chs. Due to this exclusive cricket matches and world TV premier of latest movies on these chs are missed by the Dish TV users.

(4) New ch addition process is extremely slow when it comes to Dish TV. It takes a huge amount of time for Dish TV to enhance its bouquet offerings.

(5) The time taken for activation of packages after renewal is too long sometimes. Users had to wait for as long as 5-6 days for activation even after making payments on time.

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(6) Official website is not updated regularly. Official weblog which was meant for the interaction of Dish TV users, too does not work till date.

Tata Sky :

Advantages :

(1) India’s first and only DTH service to have made a joint venture with a reputed international DTH brand, Sky, which is famous for its exquisite technology.

(2) The audio and video quality of TataSky stands up to the expectations of its users. Customers have reported about TataSky’s true DVD quality picture and CD quality sound.

(3) Only TataSky gives its users an exclusive access to some authentic international channels which includes BBC Entertainment and Ceebebies.

(4) TataSky offers uniform volume level across all channels, unlike other DTH services where the volume level keep varying with each ch.

(5) The STB of TataSky is stable enough. There has been very less or no reports of TataSky STB bugs or issues till date.

(6) TataSky users argue that its Customer Service is satisfactory. Issues are addressed on time and the after-sales support is great.

Disadvantages :

(1) TataSky has too many Add-on packs. Several add-on packs need to be subscribed to for enjoying all the chs, even after going with the highest pack. This makes the over-all package too costly.

(2) The channel strength of TataSky is less compared to other DTH operators. This is because of the less no of Transponders purchased by them.

Reliance Big TV :

Advantages :

(1) Big TV is has incorporated MPEG-4 technology unlike other DTH who are still on MPEG-2. The most basic difference between the two is that MPEG-4 is capable of carrying more chs in its offerings which means more chs can be added within a short span of time. After Dish TV, Big TV offers the highest no of chs.

(2) Another merit of Big TV is its awesome picture and audio quality which are much better than any other existing DTH. For the first time, a DTH that lives up to the expectations for a true digital quality experience.

(3) Big TV is perhaps the only DTH that offers several chs in its base pack. In fact, Big TV’s package and pricing is absolutely tailor-made to suit the exact needs of the customers. With this advantage, customer get more chs by paying less.

(4) The Active or rather “Select” services on Big TV allows users to watch 12 chs at a time on a single screen unlike other DTH where you can watch a max of 6 – 8 chs.

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(5) Rain-fade is an issue that is common for all DTH. But its Big TV, so you can enjoy your favourite programs even when it rains. Big TV’s advanced technology lets you watch chs even when it rains heavily. Chs may blak-out for just about 5-6 seconds whereas in other DTHs, ch black-out lasts the entire length of the rain.

Disadvantages :

(1) The biggest problem of Big TV is its STB software which is still now not stable. Customers across India have reported about STB hanging problems innumerable no of times. STB gets over-heated, hangs several times, slow channel navigation, does not work after a manual update are some of the many issues that keep occcuring to the Big TV STBs.

(2) Another demerit of Big TV is its Customer Care and Customer Service. The CC Executives lack professionalism in their behaviour. The after-sales support is too not good.

(3) Incorrect package activations have happened with several users at times where the customer was wanting one pack and some other pack was activated instead.

(4) The Big TV logo placed on the top left corner of screens is quite big and not transparent which is irritating. Whereas the logos of other DTH services are relatively smaller and of watermark type.

Airtel Digital TV :

Advantages :

(1) Airtel Digital TV offers true DVD quality picture and CD quality sound which are absolutely flawless. So its customers can be assured of its crystal-clear video and stereophonic sound.

(2) The external appreacnce of Digital TV STB is sleek and stylish unlike the STB of other DTH operators which are huge and bulky. Digital TV’s STB proves to be a fantastic eye-candy.

(3) For the first time, Digital TV is a DTH that offers universal remotes for its users. So no more hassle of using two remotes at a time. (One for TV, the other for STB). Digital TV’s STB remotes (after programming) will work with both your TV as well with the STB.

(4) Only Digital TV exclusively offers 10 popular and premium World-Space satellite radio chs to its subscribers. There is so much to hear, when you have World Space Radio with you, another first from Digital TV.

(5) The Dish antenna of Digital TV is considerably bigger than other DTH dishes. This makes sure that you dont loose connectivity even when it rains wild. The bigger dish has been brought up keeping this aspect in mind.

Disadvantages :

(1) The only disadvantage of Digital TV is its price which is comparetively higher than any other DTH. The highest pack goes up to Rs.424 per month which comes out to be too costly keeping in mind the present cut-throat competition in the DTH market.

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Comparison of Dish TV India and Videocon D2H

Dish TV India and Videocon D2H are satellite providers who offer their services in India. The founding span of these providers is 5 years, Videocon D2H being the youngest. There are differences as there are similarities in their offers as well as their Customer Care Service.

The main things that customers want to be informed about are the offered packages, or more specifically, how many packages are there to choose from; how many channels does a package contain; the product itself and its potential; and most of all, how much will it cost.

The packages offered by Dish TV India are divided in two: South pack and Rest of India pack. Each of them contains 7 packages. The South Pack contains: South Silver, South Silver Saver, South Gold, South Gold Saver, South Platinum, South Child and South Titanium. The Rest of India pack contains: Silver, Silver Saver, Gold, Gold Saver, Platinum, Child and Titanium. This pack also contains additional a-la-carte package, which allows picking extra channels.

Videocon D2H packages are the same South Packages and Rest of India packages. South Pack contains South Gold Pack, South Gold Sports pack, and South Diamond pack. The Rest of India package contains: Gold Pack, Gold Sports Pack, and Diamond pack. This package also includes three additional special packs: Gold South pack, Gold Sports South pack, and Diamond South pack.

The difference is obvious: Dish TV India has 14 packages equally divided among the South of India and Rest of India pack, plus a-la-carte package. While Videocon D2H has 6 packages divided among the two areas and plus three additional special packages for the south.

Dish TV India has three main offers: Dishtv on TV, Dishtv on PC and Dishtv on Wheels. Videocon D2H offers four types of products: Satellite LCD, Satellite TV, Satellite DVD and Satellite Box. Although these offers look similar, the difference is that Dish TV India has a feature which allows watching their program while moving. This is very practical as an option for people who travel a lot. Videocon D2H, however, has an option for a DVD connection, a feature that Dish TV India doesn’t provide.

Accent must be put on Customer Care service. Whenever there is a problem with the equipment (installation, tuning and etc.), customers call the service center. A quick and effective service is required to have appreciative status among the customers. Many people have favored Videocon D2H over Dish TV India, stating that Videocon D2H responses quickly to customers problems and effective solution. Maybe this is due to the 1 year youth of the company, and a present ambition to expand the number of users.

It is more than obvious that customers initially are interested in the price of the product before they decide to purchase the service. Dish TV India offers prices from rs.125 for Silver and South Silver package to rs.170 for Child and South Child package. Titanium and South Titanium are available only with annual payment of rs.3590. Videocon D2H has a different way in offering their packages. Their prices vary from rs.150 per month for the Gold packs to rs.275 per month for the Diamond packs with possibility for twelve or six month subscription of each package.

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Different packages, for different taste. Not only do customers pay attention to the price, but the channel content in the package itself. Some people are ready to pay more just to watch their favorite TV Channel and above all, for great picture and sound quality.

NEW FACILITIES PROVIDED BY OPERATORS

The DTH players are all geared up. Not for providing you cheaper prices this times, but something as equally important if not better, which is getting you new features (and no, we are not talking about a new game or another active channel this time). These features are all the things you’ve always desired on your STB, and the stuff we’ve been talking about since quite some time now. As the title of this article goes, expect the unexpected. But let me list some features we at SaveOnDish are looking forward to from DTH players.

  • 1. Recording facility: Tata Sky Plus already has this, and now it is expected from the other

players including Dish TV and Airtel DTH to start offering their viewers with an option such as this so that they could also record their favorite programs in one go and watch them later. I personally am getting TS+ for this very feature and there is a lot of room for clientele when it comes to services like these.

  • 2. Internet: The rumors have been doing the rounds since quite some time now. Big TV is giving

out Internet trials on their STBs as well, and it can very well be anticipated that soon Internet on your STB will be a reality. Especially when it comes to players such as Tata, Big TV and Airtel who already have separate Internet services going on. It shouldn’t be that big a surprise if they incorporate Internet into their STBs as well in the near future.

  • 3. Better Games: I remember someone suggesting an Xbox live type orifice inside STBs, so

people can connect and play games with other DTH subscribers, and games that are of decent quality none the less! We at SaveOnDish have heard such plans being in development way too many times, and it is only a matter of time when we actually get this on our very own STBs.

  • 4. Many other things: This list could go on and on and on for a long time. DTH companies are

sure gearing up for the upcoming competition as well as taking steps to stay in business with the

existing ones.

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India soon to surpass the US DTH customer base

India is poised to become the world's largest direct-to-home (DTH) satellite pay TV market with 36.1 million subscribers by 2012, overtaking the US, a report by research firm Media Partners Asia (MPA) says.

In its report titled 'Asia Pacific Pay-TV and Broadband Markets 2010', MPA said India's DTH subscriber base will increase from 17 million in 2009 to 45 million by 2014 and 58 million by 2020. The industry sales is expected to grow to USD 12.1 billion by 2014 and touch USD 18.5

billion by 2020, it said adding that most DTH players will start making money after 2013.

The DTH operators today are toiling under a heavy tax regime and subsidies given to customers on the new set-top boxes. The Indian pay-TV sector (DTH and cable) generated sales of USD 6.5 billion in the last financial year ended March 2010, which is expected to grow to USD 12.1 billion by 2014 and USD 18.5 billion by 2020, MPA said.

"We are more positive on India's DTH opportunity than previously, especially when anchored to consolidation and improved pricing power with continued growth," MPA Executive Director Vivek Couto said. "We suspect the DTH market will consolidate from six to four platforms within three to five years, and the estimate four will be making money at the EBITDA level by financial year ended March 2013," he added. MPA expects competition to remain intense as the tug-of-war for customer acquisition shifts to regional markets.

The major risk to all the growth assumptions is regulation, which continues to commoditize and destroy industry value.Pay-TV subscriber base is projected to grow from 105 million in 2009 to 149 million by 2014 and 173 million by 2020. While cable will retain 70 per cent market share by 2014, it is expected to decline to 64 per cent by 2020, with DTH scaling up to almost 35 per cent share in the long-term.

The strongly growing domestic direct-to-home broadcast market (DTH) may soon catapult India into the number one position globally in terms of the country with largest DTH subscribers base, ahead of the US, an industry official said.

BBCL is the DTH broadcast arm of the multi-billion Videocon Group. There are currently seven DTH broadcast service providers in the country with a combined revenue of around $2 billion.

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The industry is clocking an 18% growth this year as compared to last year, Khera said, adding, "every month around 8.50 lakh new customers are coming in across the DTH platform. And The industry expects to register around 11-12 million new customers in this year ", Khera said. "We are quite hopeful that once the festival season sets in with Onam in August followed by Ganesh Chaturthi Durga Puja, Diwali and Christmas, we will definitely see 12 million new customers coming in this year,"

Last month itself, close to one million, precisely 9.55 lakh subscribers were added in the market.At least 15% of this growth is understood to have come from football aficionados as the mega-sporting event was also seen in places such as Mumbai, Pune and Bangalore apart from the traditional football bastions of the east, north-east and Kerala.

Videocon, which presently has one million DTH subscribers, plans to add 2.5 million connections this year to its network, adding, around 55-60% of this will come from the rural market.

The growth will come from across cities and regions. But videocon is now focusing on 6,000 towns activation. Besides, the company was eyeing the cable-dry market such as North east and other hilly regions to expand its network, he said, adding, "We are looking at a 21 per cent growth in its DTH business this year.

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TRAI Rules

The Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007, were issued on 31st August, 2007. These regulations were issued to lay down the standards of quality of direct to home ervices and to protect the interests of direct to home subscribers. At the time of issue of these regulations, only two direct to home operators apart from Doordarshan were providing direct to home services in the country. Since then, three new direct to home operators have started commercial operations. With the evolution of the direct to home segment and the increase in the number of direct to home subscribers, new issues relating to quality of direct to home service have arisen. In order to address these issues the Authority has decided to amend the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007.

Rationale for making amendment to the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007:

The Authority noted that a large number of complaints have been received from the Direct to Home subscribers regarding dropping of channels from subscription packages offered by DTH operators. In case of subscription to DTH services, a subscriber subscribes to the service on the basis of specific channels included in the subscription package. If any channel is taken out of a subscription package and it is replaced by another channel then the DTH subscriber may be getting the same number of channels as earlier, but will be deprived of viewing the particular channel which has been removed. In case the channel which is removed is offered to the subscriber as an add-on package then the subscriber ends up paying more for viewing that channel which was earlier included in his subscription package. This subverts the tariff protection provided to DTH subscribers by Regulation 9 of the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007. This calls for DTH subscribers to know about the following new rules.

1. No visiting or repair and maintenance charges of DTH equipment during warranty period. TRAI: The DTH operators have been prohibited from charging any fee towards visiting charges or repair and maintenance charges of DTH Consumer Premises Equipment during the period of warranty for such DTH Consumer Premises Equipment acquired on outright purchase basis.

2. The DTH operators cannot alter the subscription package during the first 6 months, or till validity expiry, of a subscriber's enrollment.

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TRAI: The DTH operators have been prohibited from changing the composition of their subscription packages during first six months of enrolment to the subscription package or during the period of validity of a prepaid subscription package, whichever is longer.

  • 3. In case a channel is removed from a subscription package in the first 6 months of

enrollment, the DTH operator must reduce the price proportionately, or replace the

removed channel with one of the same genre and language.

TRAI: The DTH operators have been mandated to proportionately reduce the subscription charges for a package from which any channel is removed for first six months of enrolment or during the period of validity of a prepaid subscription package, whichever is longer or to replace the channel with a channel of same genre and language.

  • 4. The option of choosing the package with reduced charges or the package with replaced

channel has been given to the subscriber.

  • 5. In case a removed channel needs to be replaced, the replacement option will be in

the hands of the DTH operator.

TRAI: Option to select the channel of the same genre and language in a subscription package to replace a channel which has become unavailable on the DTH platform, has been given to the DTH operator.

  • 6. Your DTH operator needs to give a prior notice of fifteen days to you before changing the

composition of any subscription package.

  • 7. Subscribers are allowed to request their DTH operator to suspend their services for

up to 3 months. However, this suspension period should not comprise the same calendar month.

TRAI: DTH operators have been mandated to entertain requests of DTH subscribers for suspension of services if requested period of suspension does not exceed three calendar months and does not comprise part of a calendar month.

The above rules are compulsory for DTH operators to adhere to.

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Problems experienced with Videocon D2H and their solution

Working for more than a year, Videocon D2H is experiencing fewer problems with software than other TV Satellite program providers. This is quite evident from the numerous reviews Videocon D2H receives from its costumers online. Not only these problems are minor in quantity, but also they are not that concentrated on picture and sound quality.

A problem most customers are concerned, mostly before they apply for Videocon D2H service, is the picture and sound quality. Picture quality is great almost on all the channels, except, there were reported problems about SAT-DVD contrast. But that has been solved very quickly and efficiently. Some users claim that they have been deceived. Their setup box reveals that it has only MPEG2 and H265 codecs for video, but Videocon claims its picture quality to be of MPEG4 quality. Lip-sync problem occur on MI Marathi, ZEE Talkines, NDTV IMAGIME, ZEE TV and all the news channels. This problem probably occurs because the picture quality is of MPEG4 but they do not provide compatible MPEG4 SetTopBox(STB). Usually people use factory reset as a solution, but it doesn’t work.

Sound quality is low on Tamil Channels and Sun Channels. It is also low on MTV. Sound problems usually don’t occur on the best programs and on the best packages. This depends largely on original broadcasts and the transmission. A simple solution to the sound problem on some programs is to turn up the volume. The good thing is that you don’t have to turn it up so much. There are sound issues, but it is better than the rest of the providers.

There are some requests from customers for Videocon D2H to activate the c-band capability, because some channels won’t be available on DTH soon. The missing option of Autoscan is also needed. It won’t hurt the software, because there are people who are looking for FTA and pay-tv. It is a good reason for those that look for a single box for FTA and paid DTH to go for D2H.

A notice has been made for the composition of the box, mainly buttons and ports on the rear side. The CI slot being to the rear of the box has it’s advantages and disadvantages. The advantage is that it is safe from kids, but it takes a lot of rear space and if you have to look at the card number for some reason, the whole box has to be turned and connections removed. Especially when Customer Care needs to be called and they star to ask for numbers.

Problems with Remote Control starts with the basic one and the most common, channel changing. Some users complain about 3-5 seconds delay in changing channels. This apparently is solved with battery replacement or remote control replacement. No other major problems with the remote control are present. Only requests for it to have universal usage.

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STB (SetTopBox) is good and stable. There are some minor “glitches” like when the “home” button is pressed on the remote control, the box displays “sorry for inconvenience”. When selecting D2H movies the menu shows that is coming soon. These are just few of the problems Videocon D2h faces. An interesting thing about them is that they are minor and easy to solve. A great thing of Videocon d2h is its Customer Care service which provides quick and effective service to their customers. All countries have 2-3 players but india has 6…can all the players be accommodated

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CONCLUSION:

“India has 6 major DTH players whereas the world over every country has approx 2. Can the Indian market absorb all?”

This question has been lifted several times on the forum, and amongst all of the DTH consumers minds as of late. With the huge launches of Reliance Big TV and Airtel Digital TV, as well as Sun DTH going national, people have started to wonder, whether there are just too many DTH players for the market to handle now? So I thought of writing up an analysis on the same. Lets get a feel of the market first.

There are roughly around 70-80 Lakh DTH subscribers in India as of now, bear in mind this is just my own estimate though. Now this market will most likely go up over 3 Crore subscribers by 2012. Which means that the DTH market is only going to grow from here on. There is no saturation in hindsight and amongst the foray of new features, new providers, new untapped markets being opened up as well as new standards being set in the industry. DTH is here to stay.

The thing with the Indian market is, that there is just too much of a market in here. Lots of room for more players as well, I can even go so far as to say that even if 10 more players get themselves in at this point, they would have enough market to carry on nicely. Even now, Dish TV, Tata Sky, Big TV, Airtel Digital TV, Sun DTH etc. are operating quite well.

But what does this mean for you, the consumer? Nothing but benefits! Cut throat competition amongst DTH companies means nothing but good for the average consumer. With TRAI pushing for making STBs interoperable amongst providers, in the coming years it would be as easy switching between providers as it would be switching a sim card from your phone, which would result in a lot more conscious efforts by all DTH companies in providing the best product, the best services and the best deals on their packages, So if more companies step in, it means even more competition, even more ideas, more innovations and more for you!

Therefore, the healthy growth of the DTH market is totally positive, the companies are getting in because of the huge untapped markets, a lot of room for expansion and profits! For the consumers, it’s win-win all along.

So in the end we can say that though India has more players than the other countries it can easily accommodate the number of players in the market as the demand and the growth of this sector is growing rapidly and only a very small part of the available market has been captured.

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PLANET M

Planet M brand promotions & events

Welingkar institute of management PLANET M Planet M brand promotions & events 57

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HISTORY:

Planet M was launched by “Bennett Coleman & Co. Ltd” and the 1 st Planet M store was inaugurated in Mumbai in the year 1999. The brand was positioned purely as a Music Store with a brand statement “Music Store Of The Universe”. In the year 2003, the Brand position was altered to “Music Movies & Beyond” to reflect the introduction of Home entertainment, Gaming & Digital Hardware. The Mobile segment was introduced into Planet M in May 2006 with creation of ‘Shop In Shop’ in selected Planet M stores. In November 2007, Planet M was acquired by the VIDEOCON GROUP. It consisted of 68 stores, primarily LARGE format stores.

Planet M is a part of the $ 5 billion Videocon group, a fortune 500 company. Since the last ten years of its existence planet M has positioned itself as one of the premium retail outlet in Entertainment, Mobile, and Lifestyle & Leisure Space Planet M has come a long way since then. It has 228 stores and attracts over 4.5 Lac customers every month. And it’s majorly into:

Telecom: Mobile Phones, Recharge Vouchers, Mobile accessories

Entertainment: Music, Movies, Gaming, Digital hardware & accessories

Lifestyle: Apparels, Eyewear, Watches, Books & Fashion accessories

Leisure: Cafes

Planet M – VISION & MISSION

Vision: To bring Affordable Feel Good & Indulgence into every Neighborhood of Leading Indian Cities and Towns . Mission: To mirror the convergence of Music & Movies around the Mobile phones in the retail space in a manner that makes us the most preferred Retail Brand for purchase of these products

Planet M – The Brand Today

After its takeover by the Videocon group the Brand was repositioned as “Mobile, Music, Movies & Mauj” to reflect the convergence of Music & Movies around the Mobile, it also highlighted the essence of the business i.e. “Feel Good & Indulgence” which could be Indianised as “MAUJ”.

The Brand positioning also took into account the fact that “HINGLISH” is the

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most preferred language of “Urbanites”. Post acquisition about 30-35 “Small & Medium” sized stores were introduced. New stores are being introduced every month And they currently run “3 store Formats” namely:

Mega Stores – 2500 sq ft & Above

Superstores – 1000 sq ft & Above

Neighborhood Stores – 300 to 600 sq ft & above

Planet M – CUSTOMER PROFILING

Planet M is one spot where the rate of Impulse purchase is very high. Its visitors consist of SEC A1, A2 & B1 contributing to almost 90% of the visitors visiting with a conversion ration of 50%.the Target audience ranges mostly between Graduates & Post Graduates and also consist of Students, Businessmen & Professional (Executives). Planet M has a very strong loyal customer base with 60% of the customers visiting more than twice in 2 months. Along with this there is a growth of New Customers visiting Planet M. From the customers’ point of view, Planet M is considered as one such destination where apart from purchasing they can spend time here with their Family & friends.

Planet M – PURCHASE BEHAVIOUR

Research has identified that the purchase behaviour of customers visiting Planet M Mall Stores is different from Planet M High Street Stores:

Mall Stores:

More of Impulse Purchase

Customers normally visit for browsing of products

Considered as Music Stores with more of Music Sales compared to High Street stores

High Street Stores:

More of Specific Purchase

Customer normally visit to check new arrivals

Purchase of Mobile & Hardware is higher compared to Mall Stores

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Planet M – QUALITY AUDIT

The quality audit is Conducted by Done by Q& Q Research in 136 stores across major 7 towns in India. Overall Planet M is rated at 8 th Place when compared to Retail & Service Stores like Van Hussen, Park Avenue, Wills Lifestyle, Raymond, Airtel, Tata-Indicom, Vodafone, Color Plus, Reid & Taylor. it has an Overall Quality of 77% across 7 towns, with Infrastructure at 81% & Merchandise Display at 90%. The Infrastructure Display is between the score of 80 to 91 across the 3 classifications of stores. The merchandise Display is between the score of 89 to 96 across 3 classifications of stores.

INITIATIVES

In the past Planet M has been associated with iconic brand names like Kolkata knight riders and bindass. Moreover it plans to further associate with UTV, Barista, Axe etc.

They also plan to integrate a coffee chain in their system and make their stores wifi enabled.

There are around 4.5lac customers who visit planet M every month. There are events like Music release functions, live music performances, Celebrity visits at the store also take place.

A Wide range of product category for all segments in available with New arrivals of products every week. They even had various classes in selected stores which provided Lessons for guitar, Salsa etc.

INNOVATIVE BRANDING

Jingles : jingles of clients are played for 20 mins in a day. The clients for this sort of

promotion are new album launchers, movie music releases and other such people. TCV promo : each client’s advertisements are shown 10 times a day on the screens in the

stores. Sampling of products

leaflets hand over along with the bill

Product launch in select outlets

CDs/DVDs Branding

Bundle the products

Branding DJ Console

T- Shirt Branding

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TASKS DONE DURING THE INTERNSHIP

As Videocon and Planet M are sister concerns, projects in both the firms were assigned to me. While the Videocon project was more on the lines of research to make the current D2H product better and have a stronger Brand hold and customer loyalty, planet M was more creative. Planet M is perceived and portrayed as a youth brand, and rightly so because everything ranging from the ambience to the project were all very lively, interactive and entertainment oriented. It indulges in events every weekend to increase foot fall and also associates itself with other youth events and shows.

A sequence of all the activities done is mentioned below:

AD BOOKINGS

Videocon books its ads in different medias broadly via two companies namely, TOPAKI pvt ltd (Confidence pvt ltd), and Zenith media pvt ltd. Topaki handles print, magazines, radio and television ad booking. The television range is limited to Zoom TV, UTVi, Times now for topaki as Zenith handles other electronic media. Moreover outdoor advertising depends on the site of interest. It is handled by Alakh, Memax, Global, Bright etc.

Ads for Videocon on behalf of topaki were booked in various dailies like Times of india, dainik jagran, Amar ujala etc throughout the country to understand the process and working of AD booking. There is a specific software used for this purpose called Mediaware. So mediaware operations and a basic knowledge of the same was given to me. Scheduling, Rescheduling was done without supervision.

The rates are fixed as per the current market rates and as in the case of Videocon many a rates are decided as per private treaties with the clients.

EVENT IN COLLABORATION WITH ARTISTS ALOUD

Every weekend there is an event organized by Planet M to provide a platform to the upcoming talent. In the initial weeks of the internship I was given the responsibility of organizing one such event in collaboration with ‘Artists aloud’ under the guidance of the Assistant Zonal Manager.

The large format stores in the chain are majorly used for such events. This event was conducted in Planet M lower parel (phoenix mills), many artists from various reality shows like Amul star voice of india etc, came to the venue. The event stretched for around 3 hours.

A major concern while organizing such events is that the sales of the store get affected due to the immense crowd gathering. Moreover inevitably the staff and the people get side tracked by the happenings of the event. So due care was taken so that no Gandola (rack) was left unreachable to the

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prospective customers, the lighting and air conditioning at times cannot bare the load of the equipment needed for such an event as these are done inside the store and electricity is acquired by the mall.

“Mirchi Create With Agnee”- A Reality Show

Radio Mirchi and Agnee Band have organized a singing reality show named ‘Mirchi Create With Agnee’. It seeks to find a male and a female voice who will get a chance to sing in a bollywood movie. Agnee launched a duet in May as a collaborative song (Agnee with Shilpa Rao and Anushka Manchanda) and launched the hunt along with the song with a concert in Mumbai and Pune. The launch took place on the

  • 27 th may 2010 in Mumbai. The contest is divided into 3 phases. In the 1 st phase the contestants from

various cities were called to Mumbai, delhi, Kolkata, ahmedabad, pune, hydrabad, and Bangalore for auditions. 40 contestants per city in the 1 st phase were selected and sent to the second phase where 6 out of 40 were selected. The third phase was the city finale wherein only one finalist from the cities was selected. the selected finalists and a wild card entrant have to compete in the finals which are to be held in Mumbai (tentatively in the end of july). Planet M is the associate sponcer for the event.

I was made incharge of the coordination and other aspects of the event which needed to be tended to. So from my front I had to:

coordinate between Radio mirchi and Planet M.

organize Agnee band visits to Planet M stores in all the 7 cities.

Organise Agnee band gig in Mumbai.

made the Release order and got it signed.

Keep track of the ads and branding done by Radio Mirchi.

For the deal to be finalized the Release order (RO) certifying the authenticity of the deal was made by me. Then as per the agreement radio mirchi had to organize 7 Agnee visits in all the 7 aforesaid cities together with one Agnee gig in Mumbai. I was incharge of the coordination and planning for such events pan india. Moreover the various audition sites and and other mediums of promotion were tracked to check the branding of planet M done by radio mirchi.

The promotional plan followed for the event is as follows:

RADIO

Launch Teasers/Promos, Call for Entry Promos, City Finals Promos, Build up to the Finale (start date – 25 th May in Mumbai)

Launch Concert – 15 spots per day for 2 days, 45 seconds each, Mumbai & Pune

Teasers - 10 teasers a day for 2 days, 30 seconds each, 32 stations

Call for Entry - 16 promos a day for 5 days, 45 seconds each, 32 stations

City Finals - 12 promos a day for 2 days, 45 seconds each, 7 stations

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(Ahmedabad, Bangalore, Delhi, Mumbai, Pune, Kolkata, Hyderabad) Winner Bytes -10 winner bytes per day for 2 days, 40 seconds each, 32 stations

Grand Finale

24 promos a day for 4 days, 35 seconds each, Mumbai station

Final winner bytes for 2 days, 12 promos a day in 32 cities.

In Programme & RJ mentions

Interviews with the contestants, judges, Agnee, Agnee unplugged at Mirchi Studios

Live radio interviews from the audition venues, city finals and grand finale

A TOTAL OF 4910 PROMOS FOR ASSOCIATE PARTNER ACROSS 32 CITIES

CITY

NO OF PROMO TAGS

Mumbai

272

Delhi

168

Bangalore

168

Pune

198

Hyderabad

168

Kolkata

168

Ahmedabad

168

   

coimbatore

144

madurai

144

chennai

144

mangalore

144

trivandrum

144

Vijaywada

144

Vishakhapatnam

144

Raipur

144

   

Nasik

144

Nagpur

144

Kolhapur

144

Aurangabad

144

Goa

144

   

Baroda

144

Surat

144

Rajkot

144

Indore

144

Bhopal

144

Jabalpur

144

   

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Jallandhar

144

Jaipur

144

Lucknow

144

Kanpur

144

Varanasi

144

Patna

144

   
 

4910

PRINT & OUTDOOR

Print

 

Call for Entry Advertisements in Mid-Day supplements (Mumbai, Delhi, Bangalore,

Pune) Call For Entries

Two 400 sq.cm. ads per city

PR Article Nationally in Times of India supplements

Winner Article (Post Grand Finale)

One 240 sq cm, page 3

Dedicated PR agency to ensure non BCCL PR

Outdoor

OOH Sites in select cities – Kolkata, Hyderabad, Ahmedabad

Internet/Web

Strong web presence on Facebook, Twitter, Orkut with videos on Youtube.

Fan clubs, voting, blogs of contestants and audience.

Strong PR around the launch of the property in May last week.

MEDIUM

CITIES

TYPE

     

RADIO

ALL 32 RADIO MIRCHI CITIES

4910 TAGS

PRINT

DELHI, MUMBAI, PUNE, BANGALORE

TWO 400 SQ CMS ADS PER CITY

 

NATIONAL

ARTICLE OF 240 SQ CMS IN TIMS EDITIONS NATIONALLY

OUTDOOR

HYDERABAD, KOLKATA, AHMEDABAD

5 OOH BILLBOARDS PER CITY

ON

DELHI, MUMBAI, PUNE, BANGALORE, KOLKATA,

ON GROUND COLLATERALS IN SCREENING, AUDITION, CITY

GROUND

HYDERABAD,AHMEDABAD

FINALS AND GRAND FINAL

PR

DELHI, MUMBAI, PUNE, BANGALORE, KOLKATA, HYDERABAD,AHMEDABAD

DEDICATED PR FOR NON BCCL MEDIA

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INTERNET

ALL INDIA

PROMOTION ON FACEBOOK, RADIOMIRCHI.COM, AGNEELIVE.IN

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PARTNER ENTITLEMENTS AS AN ASSOCIATE PARTNER

The following nuances were agreed upon by Planet M and radio Mirchi for this event.

Associate rights to the property •

The brand in the capacity of Associate Partner forms a part of The Event Emblem / Identity of the property Is carried across all communication vehicles used for media push

Print : Brand carriage as a part of print communication

Radio : Brand tags with each promo, closing tags

Outdoor : Brand carriage as a part of all outdoor communication.

On Ground • Grand Finale night studded by a bevy of page 3 celebrities A mega event on ground Brand Carriage as a part of the integrated logo across all on ground collaterals:

Stage backdrop, Event invites Stand alone branding at the event venue on ground at Audition venues, City Finale venues and Grand Finale Venues Compere Mentions of the association across all on ground events A/V played during the on ground show – City Finals & Grand Finale Selected Invites to the show – City Finals & Grand Finale

THE PRIVATE TREATY WITH TIMES GROUP

There is a private treaty between the times group and Videocon. There is a set amount that is already paid to times group by Videocon and if the agreement states so the payment for many a transactions is done by way of the treaty. Such transactions have a different way of accounting. Usually 66% of the amount due is paid in cash and 33% by way of the treaty.

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Michel Jackson promotion- with an event with Bappi lehri

Planet M has a different promotional scheme every week pertaining to different areas of music, offers and celebrities. On the 25 th of june (the death anniversary of Michel jackson), planet M organized a tribute for the king of pop. The activity stretched from 24 th june to 4 th july.

Floor stickers enumerating the step required to moon walk were printed and sent to all the stores pan india. The stickers were an example of how the MJ fans could be more like their idol. This was a form of the biggest tribute anyone could pay the ultimate king of pop, as it provided the opportunity of being more like him. It created a sense of belonging towards the store and helped the customers learn something new pertaining to Michel Jackson.

For this radio, print and outdoor media was targeted for advertisement. Leaflets were also distributed near all the planet M stores to create awareness and buzz.

For radio media Radio Mirchi was approached. The following things were done by me for this promo:

selected and improved the clip to be telecast on radio Mirchi.

Helped oversee the delivery of the floor stickers in all the stores

Organized an event wherein Bappi Lehri was our honorable guest

There was a pan India RJ visit organized by Radio Mirchi for this which was handled solely by

me. Scrutinized the leaflet and floor sticker creative to make it better

Did store visits to check whether things were fine

To

Entertainment

Network India

No. of Spots in 3 Time

 

Ltd.

Band

 

Duratio

Total

 

Total

Per 10

12.00

18.00

n of

No.

 

Total

Amoun

second

Start

End

7.00 -

-

-

Spot (in

of

Cities

Seconds

t (Rs.)

rate

Date

Date

12.00

18.00

23.00

sec)

Spots

Delhi

900

121500

1350

24-Jun

27-Jun

5

5

5

15

60

Mumbai

900

81000

900

24-Jun

27-Jun

5

5

5

15

60

Bangalore

900

58500

650

24-Jun

27-Jun

5

5

5

15

60

Kolkata

900

40500

450

24-Jun

27-Jun

5

5

5

15

60

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Mangalore

360

5400

150

25-Jun

26-Jun

4

4

4

15

24

Pune

360

19800

550

25-Jun

26-Jun

4

4

4

15

24

Chennai

360

18000

500

25-Jun

26-Jun

4

4

4

15

24

Hyderabad

900

40500

450

24-Jun

27-Jun

5

5

5

15

60

Jaipur

360

6480

180

25-Jun

26-Jun

4

4

4

15

24

Lucknow

360

7200

200

25-Jun

26-Jun

4

4

4

15

24

Total

398880

420

Wednesday best buy & other promotions

A new activity of having a scheme every week (especially on wednesdays) has been started to attract more and more consumers. For this suggestions were given by me. Few of the suggestions were liked by my superiors and will be followed in the near future. Some of the suggessions were as follows.

Discounts

Exchange offer

Gifts from the store

Gifts from sponsors

Customization of products

successive discounts (On the same bill i.e. First customer will receive a discount of 5% then 10% and 15% after that, on the same bill.)

Exchange offers (for mobiles & Gaming hardware):

Categories of mobiles according to price (MRP) must be formed depending on the range available to the store. Then Exchange offers can be applicable as per the category the phone falls in. Example: if a phone worth is worth Rs.7000 (MRP today) and inour list it comes in the category c (assume category C has handsets ranging from 10000 to 5000) then the exchangeable handset cannot be worth more than Rs.5000.

Gifts from sponsors:

Provide customers vouchers of our sponsors to enable dual sales for both us and our associate. •

Tie-up with a book store (crosswords, landmark) Merchendise (reebok, pepe etc)

Food (mc donald’s, dominos, pizza hut coupons)

Shopping (lifestyle, pantaloons etc)

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Customization kiosk:

A customization kiosk is where a customer can get a sticker for a handset which sets the phone apart from other of the same model.it can be helpful because, •

Helps customers associate better with the store No other music store offers such facilities

Personalization improves satisfaction with the product

The cost of such stickers is very less.

We can get it made and delivered very easily.

It is a very in vogue fashion statement

Demand is very high.

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Other initiatives:

Monthly lottery system • A lottery system in which a random bill number will be drawn and the winner can be rewared by either vouchers, additional discounts on future purchases. It can be done on a monthly or weekly basis. • It will help create brand awareness, repeat sales and customer loyalty. Collectors edition bundles Books & movie bundle Charity (tufropes, nina foundation etc) Free gift if it’s a customer’s bday Picture of the highest purchaser all week long Display a chart carrying all important dates relating to well known names in music

Karaoke • A karaoke day can be organized, wherein a karaoke system can be installed in the stores for the consumers. It will help in foot fall increase as many young talented people looking for a break would find it a good opportunity Consumer association with the brand will become better The buzz created by the noise would be free advertisement.

Charity (tufropes, nina foundation,orphanages etc) • Tufropes is an organisation which accumulates old clothes and sells them to help young children. Planet M can have buckets in the stores where people can put whatever they want in the buckets to donate.

Free gift if it’s a customer’s birthday • If a customer buys from our store on his/her birthday then we can give a gift along with the purchase. The gift can be 1/10 th the amount of the purchase made This will ensure higher sales.

Picture of the highest purchaser all week long A picture of the person who shops for the most can be taken and put one of the gandolas or in

front of the billing counter.

Collectors edition bundles,Books & movie bundle • The movies which are made on books can be sold together with the books. Or the book can be given as a gift when you buy the movie & vise versa.

A chart displaying the history of music Music history date wise can be put up in the stores to create a sense of belonging

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IN DEPTH STORE ANALYSIS

ALL INDIA BILL COUNT ANALYSIS (jan 2009- may 2010) All cities have seen a decline in revenues and sales since jan 2009 with a maximum percent decline of 83% (Ranchi). Only three cities out of 28 stores saw a rise in sales since jan 2009 (shillong, Mangalore, cochin). The highest increase in sales was seen in Shillong (49%).

STORES AS PER SALES were as follows

Best 3 Stores:

1.

Shillong (49%)

2.

Mangalore (24%)

3.

Cochin (6%)

Worst 3 Stores:

1.

Ranchi (83%)

2.

Nagpur (51%)

3.

Himachal (49%)

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REGION WISE ANALYSIS (correlated to the no. of stores)

MAX Growth Region

South 1 is the best region with a 2% increase in sales since Jan 2009.

South 1 was also the best region if the sales were not correlated to the no .of stores with a 20%

(decrease) If south 1 & 2 are considered as one then too south is the most beneficial region (14% decrease)

The total of 28% drops to 14% if the no of stores is considered.

MIN Growth Region

South 2 is the worst region with a 39% decrease in sales since Jan 2009.

South 2 was also the worst region if the sales were not correlated to the no .of stores had a 39%

(decrease). If south 1 & 2 are considered as one then west is the region with lowest returns(33% decrease).

TOP 10 MUSIC STORES ANALYIS

Book are earning the least per unit profit compared to all other products

Operators earn a minor yet constant profit of Re 1 irrespective of the zone and store of operation.

Hardware, gaming and mobiles are the best sellers, with highest profit per unit ranging from Rs

1534 – Rs 221. hardware has the highest margin. Brigade road has mostly been the best store since jan 2010

In many a stores just one book is sold per month.

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TOP 10 MUSIC STORE ANALYSIS (FROM JAN ‘10 TO MAY ‘10)

West zone has the highest no. of stores from any zone.

Brigade road has been the highest sales generator from jan to may 2010.

Saket II has been generating the second highest revenues, with an exception only in Jan.

Sales in Powai droped from jan to march, but recovered close to jan’s sales by may.

All stores encountered a ‘U’ shaped curve from jan to may, with least sales in Feb (mostly).

Generally this sequence is repeated with very few variations.

Recommendations

Book in the stores should be coupled with CD’s and sold either as gift or collector packs, as this

will help advertise our book collection. Eg: 3 idiots gifted with the book, or vice versa. Gaming and hardware advertisements should be done prominently but not excessively as their

sales are already good. Concentration should be paid to books, Applications and mobile accessories.

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Top 10 monthly Telecom store analysis January

Highest average per unit value of a handset is at LP, Pheonix mills store though it ranks 8 th .

Brigade road has the highest no of units sold but has the second highest Average per unit

value. North region dominates the chart with 4 stores in the top 10 list.

Combined sales from north is Rs. 6620617, south is Rs. 5822671 and west is Rs. 4130095.

Though khanna market ranks 4 th its average per unit value of goods sold is the least in the list.

Feburary

Brigade road sales fell to the fourth position, with a steep decline of 194 units.the sales

amount also reduced by Rs.1373270. But still its average per unit value was the highest at Rs. 5904

Moreover the Highest average per unit value for the entire list fell from 6567 units to 5904

units (decrease of 633 units). Pallivatarom a new entrant in the list became the highest grosser. Though its average per unit value of sales was the least (Rs. 2515).

March

Jayanagar 4th Block another new entrant took the highest spot in the list. with nearly 400

units sold and an average per unit value of Rs. 4961. Brigade road again 3 rd in a row has the highest Average per unit value, but the third highest

sales. The combined sales among all the regions was highest in south (Rs. 5651587)

North came second with highest sales of Rs. 5510480

East came in the top 10 list for the first time with sales of Rs. 825043

April

North Rs.6461401

Jayanagar 4th Block retained its position as the top most grossing store.

The combined sales of the various zones in april was as follows:

South Rs.4931018

West Rs.2086885

The Fountain Chowk store in Ludhiana had the highest average per unit value of Rs.4671

Khanna market even after being the top 5 th store on the list fetched the lowest average per unit value.

May

Jayanagar 4th Block maintained its position at the top with a sale of 517 units.

The various zonal combined sales are as follows:

North Rs.6075940

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South Rs.4890985

• East though the lowest in the top 10 list has 19% of the sales achieved by the north.

West Rs.4633935 East Rs.1131805

Khanna market again has the lowest average per unit value of Rs. 3560.

Recommendations

Concentrate on the Pheonix mills, Brigade road and paschim vihar sales as the average per unit value of an item sold is very high.

Paschim vihar, Brigade road, Delhi cantt, Santacruz, khanna market and kinsway camp are regulars in the list so special attention should be paid to them.

Moreover khanna market fetches the least average per unit value to the firm even after being among the top 5. So if the consumers are attracted a little with discounts then they may buy higher value products and sales can be nearly doubled.

North usually fetches highest sales so activities targeting only the north can also be done regularly.

Only Dobson from east is regularly seen in the list but it fetches good sales and has a good average per unit value. So employees from this store should be transferred to other stores so that they can help improve overall east performance.

NAMES AND MARKETING PLAN FOR NEW MP3 SERIES

Planet M is soon to launch a new MP3 series, comprising of 4 different types of players. The various players have different prominent features. Keeping these in mind I was told to think of a new name for the series and the individual models.

I even helped in formulating the marketing plan for the new product at hand.

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CONCULSION:

My work in the marketing team of planet M was basically towards brand building and promotions. I worked on many activities relating to positioning Planet M better and achieving higher sales and foot fall. All in all it was an amazing experience as it endowed me with many a beautiful and worthwhile learnings.

The summer internship lasted for two months in which I had been exposed to various

aspects of marketing, wherein the people I interacted with were experts from their own respective fields ever eager to teach and learn new things and trends in the market. There was an immense learning curve to the internship ranging right from booking ads to

organizing a promo on an all india level, from checking creatives to making store visits and more. The various ways to approach people in the industry and tackling unforeseen problems

while execution of activities. I had the privilege of observing the different stages in the life cycle of a project.

making several store visits was an understanding of a consumer’s latent needs, which

weren’t expressed or they themselves weren’t aware of. Knowing and exploring these needs furthermore increased the scope for improving the store any increasing sales. I got many ideas to better the current working of the stores and learnt about its short comings.

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REFERENCES

www.saveondish.com

voicendata.ciol.com

www.slideshare.net

mbanetbook.blogspot.com

www.google.com

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