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A Report
On the
Services Marketing
of Hotstar

A report submitted in the partial fulfilment of

the requirements of
the BBA Program of
IBS Hyderabad
Semester 6
Sec-D (Group-11)
A Saikiran – 20FMUCHH010812
R Saikumar – 20FMUCHH010780
K Anurag – 20FMUCHH010755
Suchitha – 20FMUCHH010723
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Table Of Contents

- Introduction to the company Page – 4

- Services Marketing Mix Strategy Page – 5 to 12

• 7p’s
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Physical Evidence
7. Process

- STP Strategies Page – 12 &13

- Service Characteristics Page – 14

- New Trends in Entertainment Service Sector Page – 14

Introduction to the company:

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- Hotstar is a leading entertainment streaming service based in India that offers a wide
range of content, including movies, TV shows, and live sports. As an entertainment
service, Hotstar provides users with on-demand access to their favorite content, which
they can watch on a variety of devices, including smartphones, tablets, and smart
TVs.
- Hotstar was launched in 2015 by Novi Digital Entertainment, a subsidiary of Star
India, and has since become one of the most popular entertainment services in India.
The service offers a mix of regional and international content, including popular TV
shows from India and the US, as well as blockbuster movies from Bollywood and
Hollywood.
- One of the key features of Hotstar is its ability to offer personalized content
recommendations to users, based on their viewing history and preferences. This helps
to improve the user experience and keep customers engaged with the platform.
- Hotstar also offers live streaming of major sporting events, including cricket, football,
and kabaddi. This has made it a popular destination for sports fans in India, who can
watch live matches and keep up with the latest scores and updates.

- Overall, Hotstar has become an important player in the entertainment service industry,
offering a range of high-quality content to users in India and beyond. With its focus
on personalization, live sports streaming, and a user-friendly interface, Hotstar
continues to attract a large and loyal user base.

Service Marketing Mix strategy:

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The Service Marketing Mix is also known as 7P’s Marketing,

1. Product
2. Price
3. Place
4. Promotion
5. People
6. Physical Evidence
7. Process
To relate, Services marketing mix to the company Hotstar,

1. Product:
Reigning number one on the most popular streaming service, Hotstar knows the secret to
woo Indian customers. It has by far the most local content than any of its competitors and
it’s winning it big bucks. Hotstar owns a whopping 30% share in the online streaming
genre because its content is diversified and attracts all ages. It has popular shows from
Star Plus India and original shows from "On Air with AIB". In a nutshell, it is a perfect
substitute for television as it allows people to watch their favourite TV shows on the go.
Though currently, Hotstar does not have any original movies, it is planning to invest
around 120 million to produce shows that will eventually compete with Amazon and
Netflix.
Service product description:
• Hotstar's service provides users with access to a vast library of content, including
popular TV shows from India and abroad, blockbuster movies, and live sports
events such as cricket, football, and kabaddi. The service also offers live news
coverage from leading Indian news channels.
• One of the unique features of Hotstar is its original content, including critically
acclaimed series such as Criminal Justice, Hostages, and Special Ops. These
shows are exclusive to Hotstar and are not available on any other streaming
service.
• Hotstar's service is designed to be user-friendly and easy to use. Users can browse
and search for content using intuitive navigation tools, and the service offers
personalized recommendations based on viewing history and preferences.
• Hotstar offers a range of subscription plans, including a free plan with limited
content, a premium plan with access to all content and features, and a sports-only
plan for users who primarily want to watch live sports events. The service also
offers flexible payment options, including credit card, debit card, and mobile
wallets.

Service Quality of Hotstar:

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The service quality of Hotstar can be evaluated using the five dimensions of service
quality in service marketing. These dimensions are:
1. Tangibles: Tangibles refer to the physical appearance of the service and the facilities
provided. In the case of Hotstar, the website and mobile app design are visually
appealing, user-friendly, and easy to navigate. The streaming quality is also high, with
options for different video resolutions depending on the user's internet speed.

2. Reliability: Reliability refers to the ability of the service provider to perform the
promised service dependably and accurately. Hotstar has a reliable streaming service
that rarely experiences downtime or technical glitches. Additionally, Hotstar offers
live sports streaming that is reliable, with a low delay between the actual event and
the streaming feed.

3. Responsiveness: Responsiveness refers to the willingness of the service provider to

help customers and provide prompt service. Hotstar provides customer support
through multiple channels, including email, phone, and chat. They also have a
comprehensive help centre that offers solutions to common problems.

4. Assurance: Assurance refers to the knowledge and courtesy of employees and their
ability to convey trust and confidence. Hotstar has a professional and courteous
customer support team that is knowledgeable about the service and its features. They
provide timely and accurate information to customers and ensure that they feel
confident in using the platform.

5. Empathy: Empathy refers to the caring, individualized attention provided to

customers. Hotstar offers personalized recommendations based on the user's viewing
history and preferences. They also have a feedback system that allows users to
provide feedback and suggestions for improvements.

Customization Vs Standardization:
• When it comes to Hotstar, there are different aspects where customization and
standardization play a significant role.
• Customization refers to adapting the service or product to meet the unique needs and
preferences of individual customers. In contrast, standardization refers to offering a
standardized service or product that is consistent across all customers.
• In terms of customization, Hotstar offers a personalized viewing experience to its
users. The platform suggests content based on the user's viewing history and
preferences. Hotstar also provides regional language content to cater to users from
different parts of India.
• On the other hand, Hotstar also employs standardization in various aspects. For
instance, the pricing of Hotstar's subscription plans is standard and uniform across all
users. Hotstar also offers a consistent user interface and customer service experience
to all users.
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• So, Hotstar employs both customization and standardization in its marketing

approach. The company customizes its service to cater to individual preferences while
maintaining standardization in other aspects to ensure a consistent and streamlined
experience for all users.

2. Price:
Pricing of service product:
• Being the market leader and the pioneer of video streaming of movies and tv
shows, Hotstar adopted penetration pricing to enter a new market. Despite being
more expensive than Amazon Prime, it’s still more popular because of its local
content. Here's how the pricing goes for the premium subscription:

a. Rs 199 for a month

b. Rs 498 for 3 months
c. Rs 894 for 6 months
d. Rs 1,200 for 12 months
• The VIP plan is designed for users who primarily watch live sports and Indian TV
shows. This plan is priced at a lower rate than the Premium plan. The VIP plan
also offers access to Hotstar's original content.
• Hotstar offers a free plan that includes limited content. Users can access some live
sports, news, and TV shows, but the content is limited, and there are
advertisements.
Demand and Capacity Matching strategies:
To ensure that its services meet customer demand, Hotstar employs demand and capacity
matching strategies:
1. Capacity Management: Hotstar employs capacity management strategies to ensure
that the platform can handle high levels of user traffic during peak demand periods.
This includes optimizing its servers, networks, and other IT infrastructure to handle
large volumes of concurrent users.
2. Dynamic Pricing: Hotstar uses dynamic pricing strategies to match supply and
demand. For example, during popular sports events, Hotstar may increase the prices
of its subscription plans to meet the high demand for live sports. Similarly, during off-
peak periods, Hotstar may offer discounts or promotions to attract users and increase
demand.
3. Content Strategy: Hotstar employs a content strategy that aligns with user demand.
For example, during major sports events, Hotstar may prioritize the live streaming of
those events to meet user demand. Similarly, during festival periods, Hotstar may
release new movies or TV shows that are aligned with the festive mood to attract
users.
4. Advertising Strategy: Hotstar uses its advertising strategy to manage demand by
promoting its service during off-peak periods. For example, during the low season,
Hotstar may advertise its subscription plans to attract new users and increase demand.
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By employing these strategies, Hotstar can manage demand and optimize its capacity to
provide a seamless and satisfactory user experience.

3. Place:
Delivery strategy:
• The most amazing aspect of streaming services is that they don’t need a physical
space to cater to their customers. All the competitors in this space used both web and
mobile platforms. Mobile platforms got more attention from customers making it
easier for them to watch their shows on the go. In simple words the platform of this
company is web and mobile.
• Hotstar primarily delivers its content through online streaming. Users can access
Hotstar's content through its website and mobile apps. Users can select the content
they want to watch and stream it directly on their devices.
• It also has a mobile app that can be downloaded from Google Play Store and Apple
App Store. The mobile app allows users to access its content on their mobile devices,
enabling them to watch their favourite shows on the go.
• Hotstar can also be accessed on smart TVs and set-top boxes. Users can download the
Hotstar app on their smart TVs and set-top boxes and access the content.
• And it also provides downloadable content for users who want to watch their
favourite shows or movies offline. Users can download content on their devices and
watch it later, without an internet connection.
Impact of Internet:
• The internet has enabled Hotstar to reach a vast audience, beyond traditional
television broadcasting boundaries. Hotstar's streaming service is accessible to anyone
with an internet connection, allowing it to expand its customer base beyond
geographical and demographic boundaries.
• Internet has transformed the way we consume media and entertainment, and Hotstar
has leveraged this change by providing on-demand content to its users. Hotstar's
platform allows users to select the content they want to watch, giving them the
flexibility to consume media at their convenience.
• Internet has also allowed Hotstar to personalize its offerings based on user
preferences. Hotstar's platform collects data on user behavior and preferences,
allowing it to tailor its recommendations to individual users. This customization and
personalization have enhanced the user experience, leading to increased engagement
and loyalty.
• And also it has enabled Hotstar to engage with its customers in real-time. Hotstar's
platform provides users with the ability to comment, share, and interact with others
while consuming media. This real-time engagement has transformed the way we
consume media, creating a more interactive and engaging experience.

4. Promotion:
• Promotion in services marketing refers to the various communication strategies and
tactics that service providers use to create awareness, generate interest, and ultimately
persuade potential customers to purchase their services.
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Promotional objectives:
• One of the primary objectives of Hotstar's promotion is to build brand awareness.
Hotstar uses various media channels, such as television, radio, and social media, to
create awareness and inform potential customers about its offerings.
• To generate interest in its service among potential customers. To achieve this
objective, Hotstar uses targeted communication channels, such as email and direct
mail, to deliver personalized and relevant messages to potential customers.
• To increase subscriptions. Hotstar uses various tactics, such as discounts, free trials,
and special offers, to encourage potential customers to subscribe to its service.
• To enhance customer loyalty by providing an excellent customer experience. Hotstar
uses various tactics, such as personalized recommendations, exclusive content, and
rewards programs, to keep customers engaged and loyal to its service.
• To differentiate itself from competitors. Hotstar uses various tactics, such as exclusive
content and personalized recommendations, to offer a unique and differentiated
service to its customers.
Promotional plans:
• Advertising: Hotstar uses advertising as a key element of its promotional plan. Hotstar
creates TV commercials, digital ads, social media ads, and outdoor ads to reach its
target audience. The messaging of the ads focuses on the key benefits of Hotstar's
service, such as the availability of exclusive content and the convenience of on-
demand streaming.
• Sales Promotion: Hotstar uses various sales promotions to encourage potential
customers to subscribe to its service. Hotstar offers free trials, discounts, and other
special offers to attract potential customers. These promotions are targeted to specific
customer segments to maximize their impact.
• Public Relations: Hotstar uses public relations to enhance its brand image and build
credibility. Hotstar leverages media coverage, press releases, and events to create
positive associations with its brand. Hotstar's PR activities also focus on highlighting
its exclusive content and partnerships.
• Personal Selling: Hotstar uses personal selling to engage with potential customers and
provide them with customized recommendations. Hotstar has a dedicated customer
service team that is available 24/7 to assist customers with their queries and concerns.
The team provides personalized recommendations based on the customer's viewing
history and preferences.
• Direct Marketing: Hotstar uses direct marketing to communicate with its customers
and provide them with personalized offers and recommendations. Hotstar sends
targeted emails and messages to its customers, highlighting exclusive content and
promotions that are tailored to their interests and preferences.
• Customer Engagement: Hotstar places a high emphasis on customer engagement as a
key element of its promotional plan. Hotstar uses various tactics such as gamification,
personalized recommendations, and rewards programs to keep customers engaged and
loyal to its service.
By using a multi-faceted promotional approach, Hotstar can effectively communicate the
value of its service to its target audience and differentiate itself from its competitors.
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5. People:
In the case of Hotstar, the people element refers to the employees and other individuals who
interact with customers throughout the service experience. This includes customer service
representatives who help customers with technical issues, as well as content creators and
producers who create the shows and movies that customers enjoy.
Importance of people:
• Customer service: Hotstar needs to provide high-quality customer service to ensure
that customers have a positive experience with the service. This means hiring
knowledgeable and friendly customer service representatives who can answer
questions and resolve issues quickly and effectively. Investing in customer service
training can help ensure that employees have the skills they need to provide excellent
service to customers.
• Content creation: The content that Hotstar provides is a critical part of the service
experience, and requires skilled content creators and producers who can develop
compelling and high-quality content. This means hiring individuals with experience in
the film and television industry, and investing in training and development to help
employees stay up-to-date with the latest trends and technologies in content creation.
• Technical support: Hotstar also needs to provide reliable technical support to ensure
that customers can access and enjoy the service without interruption. This means
hiring employees who are knowledgeable about the technical aspects of the service,
and investing in ongoing training and development to help them stay up-to-date with
the latest technologies and best practices
• Employee motivation: Motivated employees are more likely to provide high-quality
service to customers, which can lead to increased customer satisfaction and loyalty.
By investing in employee motivation through competitive compensation and benefits
packages, opportunities for career growth and development, and recognition and
rewards for outstanding performance, Hotstar can create a positive work environment
that encourages employees to perform at their best and provide excellent service to
customers.
• Employee training: Hotstar can provide training to employees in areas such as
customer service, technical support, and content creation. By investing in employee
training, Hotstar can improve the quality of service it provides to customers and help
employees feel more confident and empowered in their roles. Ongoing training and
development can also help employees stay up-to-date with the latest trends and
technologies in the streaming industry, which is crucial for remaining competitive in
the market.

6. Physical Evidence:
Physical evidence refers to any tangible elements of the service experience, such as the
design of the website or app, the quality of the streaming video, and the packaging of any
promotional materials.
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In the case of Hotstar, the company needs to ensure that its platform is easy to navigate, with
high-quality video streaming and reliable service. Additionally, the company needs to invest
in advertising and promotional materials that accurately represent the service and encourage
potential customers to try it out.
• User interface: The Hotstar app and website are the primary interfaces that customers
use to access the streaming service. The design, functionality, and ease of use of these
interfaces are critical components of the physical evidence element of services
marketing. Hotstar must ensure that its user interface is intuitive, visually appealing,
and easy to navigate, as this can greatly influence the customer's perception of the
service.
• Content quality: The quality of the content available on Hotstar is another important
physical evidence element. Customers expect high-quality video and audio that is free
from glitches and buffering, and any issues with the content can negatively impact the
customer's perception of the service. Hotstar must ensure that its content meets or
exceeds customer expectations in terms of quality and reliability.
• Device compatibility: Customers expect to be able to access Hotstar on a wide range
of devices, including smartphones, tablets, smart TVs, and gaming consoles. Hotstar
must ensure that its streaming service is compatible with a variety of devices and that
the service works seamlessly across different platforms and operating systems.
• Branding: The Hotstar brand is another important physical evidence element.
Customers expect a well-established and reputable brand that is associated with high-
quality content and reliable service. Hotstar must ensure that its branding is consistent
across all touchpoints, including its website, app, social media presence, and
marketing materials.

7. Process:
The process element of services marketing refers to the steps that customers go through
from start to the end when they interact with a service.
In the case of Hotstar, The process element is critical to providing a positive and seamless
customer experience.
• Sign-up process: The sign-up process is the first interaction that customers have with
Hotstar's service. Hotstar must ensure that this process is straightforward, easy to
understand, and as frictionless as possible. This can include offering multiple sign-up
options, such as using a social media account to log in, as well as providing clear
instructions and assistance for customers who may have questions or issues.
• Content discovery: Customers need to be able to find the content they are looking for
easily and quickly. Hotstar must ensure that its content discovery process is intuitive
and user-friendly, with clear categorization and search functions that make it easy for
customers to find the content they want.
• Streaming quality: The streaming process is the core of Hotstar's service, and it is
critical that the process is smooth and uninterrupted. Hotstar must ensure that its
streaming technology is reliable and able to deliver high-quality video and audio,
without buffering or interruptions.
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• Billing and payment: Hotstar must ensure that its billing and payment process is
transparent, easy to understand, and secure. This includes providing clear information
about pricing and subscription options, as well as ensuring that payment information
is kept secure and private.
• Technical support: Hotstar must provide reliable technical support to customers who
encounter issues with the service. This can include providing online resources and
tutorials, as well as offering customer service representatives who are knowledgeable
and responsive to customer needs.

STP Strategies of the company:

1. Segmentation:
Segmentation in services marketing refers to the process of dividing the market for a
particular service into distinct groups of customers, based on similar characteristics or
needs.
Segmentation helps service providers to better understand their customers and tailor their
marketing strategies and services to meet the specific needs and preferences of each
customer segment. By understanding the unique characteristics and needs of each
customer segment, service providers can provide more targeted services, enhance
customer satisfaction, and increase customer loyalty.
So in the case of Hotstar, it is an online streaming platform that offers a wide range of
content, including movies, TV shows, live sports, and news. Based on its services,
Hotstar can be segmented into,
• Sports Fans: This segment is interested in live sports events and is likely to
subscribe to Hotstar to watch cricket, football, and other sports events. Hotstar
offers a premium subscription service that provides access to live sports events,
including cricket matches from the Indian Premier League (IPL), Indian cricket
team matches, and other international cricket matches.
• Entertainment Seekers: This segment is interested in watching movies and TV
shows online. Hotstar offers a vast collection of Indian and international movies
and TV shows, including HBO originals and Disney+ content.
• News Buffs: This segment is interested in staying up-to-date with the latest news
from India and around the world. Hotstar offers live news coverage from various
Indian news channels, including NDTV, Republic TV, and ABP News.
• Regional Language Audiences: This segment is interested in watching content in
their preferred regional language. Hotstar offers content in multiple Indian
languages, including Hindi, Tamil, Telugu, Malayalam, Bengali, and Kannada.
• Youth: This segment is interested in watching content that is popular among
young adults. Hotstar offers a variety of content that is popular among youth,
including web series, reality shows, and youth-oriented movies.
• Premium Customers: This segment is willing to pay for exclusive content and
features. Hotstar offers a premium subscription service that provides ad-free
content, early access to new content, and access to premium sports events.
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2. Targeting:
Targeting in services marketing refers to the process of selecting and focusing on specific
customer segments that a service provider wants to reach and serve.
Targeting helps service providers to allocate their resources more efficiently, increase
customer satisfaction and loyalty, and improve the overall effectiveness of their
marketing efforts. By focusing on specific customer segments, service providers can
provide more relevant and differentiated services that meet the specific needs and
preferences of each segment, leading to a stronger competitive advantage and increased
profitability.
In the context of Hotstar's services marketing, targeting refers to the process of selecting
and focusing on specific customer segments that Hotstar wants to reach and serve.
Hotstar's targeting strategy involves segmenting its customer base and selecting specific
segments, which are segmented above.

3. Positioning:
Positioning in services marketing refers to the process of establishing a distinctive image
and reputation for a service provider in the minds of its target customers.
Hotstar's positioning strategy aims to differentiate its services from those of its
competitors and create a unique brand identity in the Indian market.

Hotstar's positioning strategy can be summarized as follows:

• "Entertainment Anytime, anywhere": Hotstar positions itself as a convenient and
accessible platform for entertainment, offering a wide range of content that can be
accessed anytime and anywhere, on any device.

• "Premium Sports Destination": Hotstar positions itself as a premium sports

destination, offering exclusive access to live sports events, including cricket
matches from the Indian Premier League (IPL), Indian cricket team matches, and
other international cricket matches.

• "Home of Indian Entertainment": Hotstar positions itself as the home of Indian

entertainment, offering a vast collection of Indian and international movies and
TV shows, including HBO originals and Disney+ content.

• "Trusted News Source": Hotstar positions itself as a trusted news source, offering
live news coverage from various Indian news channels, including NDTV,
Republic TV, and ABP News.
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Service characteristics:
Intangibility
A service is known as intangible because they can often not be seen, felt or heard. Hotstar
being an online video streaming platform is known to be an intangible service.

Perishability
A service is known as perishable because they usually do not last for many days, they usually
expire pretty quick. Hotstar is an subscription based video platform where the subscription
ends after a period of time.

Inseparability
Inseparability expresses the notion that a service cannot be separated from the service
provider. Hotstar is a video streaming platform where the content being provided by the
company is in the service provider’s hands all the time.

Variability
Variability expresses the notion that a service may vary in standard or quality from one
provider to the next or from occasion to the next. Hotstar does maintain its variability to its
competitors in the cotent that they are providing, they tend to be different and provide the
service based on the price that they are paying per month.

New trends in the Entertainment service:

Hotstar is in the entertainment service sector,
This entertainment service sector is constantly evolving, and new trends are emerging all the
time. Here are some of the latest trends in the entertainment service sector:
• Watch with friends: Hotstar has also introduced a new feature called "Watch with
Friends," which allows users to watch content together with their friends and family,
no matter where they are located.
• Virtual and augmented reality: Virtual and augmented reality technologies are
changing the way people experience entertainment. These technologies allow for
immersive experiences in games, movies, and other forms of entertainment.

• Hotstar VIP: Hotstar has also started to offer a premium subscription service called
"Hotstar VIP," which provides users with access to exclusive content, early access to
new releases, and other perks.
• Live events: Live events, such as concerts, theatre performances, and sports events,
continue to be popular in the entertainment service sector. However, due to the
pandemic, virtual live events have also become more common.
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