2012

A PROJECT REPORT ON TATA SKY DTH SERVICES

SKO LAGA DAALA, TOH LIFE JINGALALA
I

Submitted

To Dr. Sanjay Patro

Submitted By Student: Swapneswar Sahu SID- RB11031 Batch- PGCBM-19 Branch- Pune, FC Road.

Contents
Contents..................................................................................................................... 2 About Tata Sky DTH.................................................................................................... 3 Vision....................................................................................................................... 5 Mission.................................................................................................................... 5 Objective Of Study...................................................................................................... 6 Why DTH Sector?........................................................................................................ 6 Background................................................................................................................ 7 DTH Industry an overview:....................................................................................... 8 Competitor Analysis.................................................................................................. 12 Industry competitors: Segment rivalry .................................................................12 Market Leader: ..................................................................................................... 13 Market challengers: .............................................................................................. 14 Market followers.................................................................................................... 14 DTH Industry An Oligopolistic Market Structure:.................................................16 A closer look at Tata Sky ......................................................................................... 17 Analysis of Growth Strategies of Tata Sky ...............................................................18 Environmental Analysis Porters 5 Forces Model:...................................................20 SWOT Analysis.......................................................................................................... 23 Marketing Strategies................................................................................................ 25 Product:................................................................................................................. 25 Place...................................................................................................................... 29 Price...................................................................................................................... 29 2

Promotion.............................................................................................................. 29 Brand Positioning And Values................................................................................... 30 Branding Strategies.................................................................................................. 31 Five Key Brand Elements Of Tata Sky.......................................................................32 Brand Management Of Tata Sky ..............................................................................36 Analysis of Challenges For Sky TATA........................................................................37 Market Research....................................................................................................... 37 Research Methodology.......................................................................................... 38 Limitations............................................................................................................. 38 Analysis of Data(Refer Appendix for survey questions).........................................39 Recommendations.................................................................................................... 46 Appendices And Annexure Questionnaire ................................................................48 Bibliography............................................................................................................. 51

About Tata Sky DTH

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. The TATA Group is one of Indias largest and most respected business conglomerates. It comprises diversified businesses in sectors such as materials, engineering, services, energy, information systems & communications, consumer products and chemicals. The Group and its enterprises have been steadfast and distinctive in their
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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.

STAR is a leading media and entertainment company in Asia. STARs parent company, News Corporation, owns an International group of DTH businesses that include BSkyB in UK, Sky Italia in Italy and Foxtel in Australia.

Tata Sky+ Tata Sky+ is a premium set-top box-cum-Personal Video Recorder or even known as DVR Digital Video Recorder that allows recording up to 130 hours of live TV, recording one programe while watching another, pause, fast-forward and rewind a live telecast and review a TV programme. Also Tata Sky+ provides service using MPEG-4 digital compression technology. Tata Sky HD Tata Sky HD was launched on June 14, 2010, and has channels in their native resolution of 1080i or 720p. The STB is compatible with 5.1 CH surround sound as well. The service currently offers four HD channels - National Geographic Channel HD, Discovery HD, Showcase HD (Pay Per View) & Star Plus HD. More channels such as Star Movies HD and other popular sports channels in HD format are expected to be added soon.
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Certifications and Honors ISO 27001:2005 accreditation In March 2009, Tata Sky, became the first Indian direct-to-home (DTH) service provider to be awarded the ISO 27001:2005 accreditation, the benchmark for information security. ISO 27001:2005 is an international standard that provides specifications and guidance for the establishment and proper maintenance of an Information Security Management System (ISMS). This certification confirms that every transaction carried out through Tata Skys IT systems is highly secure. SUPERBRAND 2009 2010 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 Extensive Customer Service Network It is using 3000 service engineers in call centers to provide good service for their customers. TATA SKY takes direct responsibility to provide its vouchers, hardware through popular consumer electronic stores to enhance customer convenience. TATA SKY offers all popular television channels with local language channels according the demand.

Vision Tata Sky aims to revolutionize Indian entertainment by offering superior DVD quality picture and CD quality sound. T To connect every television home Empowering every television viewer Revolutionizing home entertainment

Mission
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Tata Sky is set to revolutionize television viewing in India through its superior digital quality picture and sound. The service aims to empower the Indian viewer with Choice, Control and Convenience through its wide array of programming choices and interactive features.

Objective Of Study
The objective of our project is Analysis of Indian DTH industry Marketing mix for Tata Sky Promotional strategies analysis and evaluation Pricing Strategy Brand Management New product and package development. The challenges and opportunities present before Tata Sky in Indian DTH industry. To find the awareness about various brands of DTH systems. To determine the level of brand recall for various brands of DTH systems. To find the most preferred brands of DTH systems. To determine important attributes and factors that consumer considers To find the influencing factor in while marketing purchase decision.

Why DTH Sector?

DTH is a very attractive sector, on growth front, it has huge opportunities and companies will act aggressively to garner subscribers as it happened in mobile space. Only 5 million homes have DTH connections out of 75 million cable households in India.
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This is a positive aspect for this sector. This sector offers huge investment opportunities for long term investors, and with coming up of new companies in this sector , it is very interesting to see how these companies react to each others strategies and how far they are successful in penetrating the market. DTH companies need to invest heavily in the initial years and breakeven point is also high, the fixed cost that a company incurs in this sector includes the license fee, transponders fee, uplink charges, content charges, etc thus Customer acquisitions skills assume a very important role in this sector which makes this sector a very interesting study.

Background
The scenario is changing in India. The income level of an average Indian household is increasing faster with lot of disposable income. Gone are the days where a typical Indian household was known for savings attitude. People are seeking more and more avenues for entertainment. Earlier days, most of the house holds had one picture tube TV set with state sponsored DOORDARSHAN as the only available channel. It used to feature a huge individual antenna. When the liberalization of economy happened, it attracted loads of FII and foreign direct investments. Many of the stringent state controlled regulations were deregulated further fuelling investors interest in Indian economy. With the increase in number of channels as the outcome, it literally changed the way the average Indian watched the television. Until few years back, there were as many as 1 lakh cable operators across India. However the services provided by them were poor. There were strikes, changes in tariff plans, selective broad cast which caused dissatisfaction amongst the customers. This created market for the DTH (Direct-To-Home television). DTH is defined as the reception of satellite programmes with a personal dish in an individual home. DTH service involves distribution of multi-channel TV programmes. DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite
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programmes and they then distribute them to individual homes. A DTH network consists of a broadcasting centre, satellites, encoders, multiplexers, modulators and DTH receivers. A DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and set-top boxes to decode and view numerous channels.

DTH Industry an overview:

TH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. Finally in 2000, DTH was allowed. The new policy required all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. Today, broadcasters believe that the market is ripe for DTH. The prices of the dish and the settop box have come down significantly. Overall investments required in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs. The major thing that DTH operators are betting on is that the service is coming at a time when the government is pushing for CAS (conditional access system), which will make cable television more expensive, narrowing the tariff gap between DTH and cable. Some of the features of DTH service are as following: DTH offers better quality picture than Cable TV. DTH can reach remote areas where terrestrial transmission and cable TV have failed to penetrate. DTH has also allows for interactive TV services such as movie-on-demand. In DTH, the payments will be made directly by the subscriber to the satellite company offering the service.
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In DTH, the payments will be made directly by the subscriber to the satellite company offering the service.

In India it has taken DTH 5 years to get to 6 million plus subscribers! And Tata Sky crossed 2 Million subscribers in 20 months, the fastest subscriber ramp-up ever by a DTH platform

INDIA 165 Mn Pay TV HHs by 2015

The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

40
36.2

37.6

35
30.4

33.8

30
26.1

25
20.9

20 15
15 9.8 4.8 0.06 2003 0.18 2004 0.75 2005 1.925

) n o l M ( e i r c s b u S

10 5 0

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

2015

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Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their monthly income on cable services. Globally, consumers spend 3 - 4% of their monthly income on pay television services While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of scale to fully exploit the market potential The following are main drivers for focusing on DTH in India Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 2007) Appetite for Entertainment is growing $25 Billion being spent annually by Indians on travel 45 Million credit card subscribers growing at 35% annually 10 Million color TVs sold annually 125 Million TV homes .have doubled in last 6 years Rapid adoption of new technologies by Indians 5 - 6 Million mobile phone subscribers are added every month 350,000 Satellite TV subscribers added every month

The DTH sector has something for each of the key players as mentioned below.

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The DTH market has been able to acquire around 18 Million subscribers over the past six years. With the entry of new players, the number of DTH subscribers has witnessed a steady growth as the competition in the market increased and people have a wide range of options to choose from according to their requirements. By 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog cable will follow with only 20% market share. The DTH service market in India has emerged as one of the most lucrative markets that have successfully sustained the impacts of the current economic slowdown. The slowdown, instead, proved a boon for the Indian DTH industry as people started to cut on their entertainment expenditure and instead of viewing movies at theatres, they Prefer to stay at home with their television sets. India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in 97 million (74%) of the home. The DTH market in India comprises 11% of the total market with almost 15 million homes. The DTH industry growth lagged to 10.3% in Industry players agree that the digitization drive is expanding by 35-40% annually. However, industry estimates DTH to touch 35-40 million subscribers by 2012, and that is the number that every DTH brand has set its sights on. 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 perquisites 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 matchmaking, etc. Currently, the Indian DTH market is being served by seven private players Doordarshan, Dish TV, Tata Sky, Sun Direct, Big TV, Airtel Digital TV and Videocon D2H. Doordarshan is free DTH service provider, which is run by the Indian government.

Competitor Analysis
Industry competitors: Segment rivalry 1 The following are the main DTH service providers in India: DD Direct Govt owned free service provider Dish TV - owned by Essel Group, was the first commercial DTH service provider. TATA Sky owned by TATA group, largest DTH service provider presently in India
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Sun Direct owned by Sun group, primary focus is on low income groups and regional viewers Reliance Big TV - Owned by Reliance group, new entrant into the market Airtel Digital TV Owned by Bharti group, recent entry to the DTH market with aggressive market strategies

With 7 players in foray, the rivalry is quite high. DD direct is a free service but it has very limited number of channels. Dish TV has capitalized on the first movers advantage. Dish TV usually offers free installation and loads of free add on. TATA Sky is a close competitor which initially depended upon picture quality and superior technology thereby targeting top segment of the market. But now, both Dish TV and TATA Sky are engaged in price war and trying to achieve economy of scale. Market Leader: Dish TV Indias first DTH service provider launched in October 2003 is the market leader with 7 million subscribers. Dish TV continues to be a market leader with 32%
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market share in 7 player scenario on date, with sizeable sales and distribution infrastructure of over 650 distributors and 45,000 dealers across 6500 towns once again, the largest in the category. This reach into far-flung markets enables building of a diverse subscriber base across consumer segments, which are supported by its rich content of regional channel offerings. Dish TV has maintained its leadership position through an improved market share of all DTH subscribers. New offers, extensive marketing campaigns have contributed to impressive subscriber acquisition and are committed to provide the best value to our customers and investors by enhancing operational efficiencies and by leveraging economies of scale.

Market challengers: The gap between the leader and the challengers is decreasing because of the increasing competition and promotion strategy followed by each player. TATA Sky In the enormous consumer market like India, occasionally an opportunity arises that can create incredible growth and profit provided those who seek to capture it could move quickly enough. TATA wanted to capitalize on this opportunity, as there was currently only one player in the DTH market. It was the second Mover after Dish TV leveraging on brand TATA and high brand recall. Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR. Tata Sky endeavors to offer Indian viewers an excellent television viewing experience through its satellite television service. The key business challenge in a country like India is meeting customer demandswhich are very dynamic under the regulatory purview of the country. Sun DIRECT Sun Direct is the fastest growing DTH service provider having garnered over 5 million subscribers since its launch in December 2007 and aims to become one of the leading players in the DTH space. Sun Direct challenged the existing players by involving them in the price war by acting as a discounted brand. It started offering subscriptions at as low as Rs 99 to reach as much at the bottom of the market. The biggest differentiator for the brand is the pricing point which is lesser than the other brands. The other point of differentiation is with regard to their distribution channels. It is available in most basic shops such as telephone booths, cycle repair shops and video parlors. Sun DTH was the first one to move into the MPEG4 league and soon after the PAN India HD, services were launched; Sun Direct started to roll out the HD service in India. Market followers
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These are late entrants with loads of latest features but may have lost on price war and market penetration. Reliance BIG TV

Reliance Big TV uses MPEG-4 technology which can carry more number of channels Good picture and audio quality The company makes its packages cost effective by providing lots of channels in base pack itself. Good performance even during the monsoon season.

Reliance Big TV Product Review:

Reliance BIG TV is a cost-effective service whose base package comes

with large number of channels.

The customers get to select regional package based on their Language /

Regional / cultural preferences.

The set-top box of Big TV is little unstable. This acts as a disadvantage

for the Customers

For the installation of the set-top box the customer has to wait for 3-4

days from the time of purchase Airtel Digital

Airtel digital tv has good DVD Quality picture and CD quality One of the major features of Airtel digital is that it exclusively offers World-space satellite radio channels. The set-top box provided by Airtel Digital is Sleek and stylish t provides better connectivity as provides a larger dish antenna

Airtel Digital TV Product Review:

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Although Airtel Digital is a late entrant in DTH space it has come up with a completely flawless DVD quality picture and sound. At the time when the other players were providing different remotes for set top box and television , Digital Tv has completely undone that issue by coming up with universal remote. It provides a sleek and stylish looking set top box. It also provides exclusive access to World-space channels While Airtel Digital tried to differentiate its product from the rest the high cost associated with it acted as a big negative aspect for the company The are many other players in the market providing lots of channels at a lower price,

DTH Industry An Oligopolistic Market Structure: The DTH industry in India can be categorized as an OLIGOPOLY. It is a market structure in which the market or the industry is dominated by a small number of large players who are called oligopolist. In this type of market the degree of market concentration is very high, with barriers to entry in the market. Important features of Oligopoly Market: Small number of large players dominates the market. The oligopolists produce branded products. There exists interdependence between firms. Each oligopolist is aware of the actions of the others. There are significant entry barriers in this market. Entry barriers in Indian DTH Industry: The Indian DTH industry is a high tech industry requiring huge capital investment. The initial cost required for setting up the company is very high as it requires transponders and other hi tech equipment. Following entry barriers exist in the DTH Industry. DTH Industry is a high volume low margin industry: Any new entrant in the DTH industry has to make sure that it builds significant customer base as soon as possible to ensure its profits. High set up cost of satellite, transponder and other high tech equipment: the huge initial cost of setting up the business acts as a huge entry barrier for the new entrants. High Cost of the set top boxes Long gestation period and high break even period Multilingual & Multicultural differences in India.
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A closer look at Tata Sky

Innovative product offerings Tata Sky has taken the onus on itself to invest in more interactive services to differentiate itself from others. It was the first DTH company in the world to offer its subscribers interactive VAS under the umbrella Actve. Kick started the category advertising - Although it was the 3rd player to enter the market it sought to create consumer education about the category with focused advertising. Initial campaigns featured Hrithik Roshan who promoted multi-angle viewing of the World Cup. Focus on heritage Tata Sky latest campaign features superstar Aamir Khan. The focus of the campaign was to establish the pedigree of Tata Sky and inform potential customers about Sky-the leading British Broadcasting Low cost packages to increase penetration - Tata Sky has recently introduced a Rs 99a-month low-value pack for 53 channels to increase penetration of Tata Sky in smaller towns of the country. Tata Sky has also gone a step further and introduced an electronic programme guide (EPG) in Hindi especially for people in small towns who are more comfortable with Hindi. Key deliverables: The 3 anchors for growth that can be explored are Superior Picture quality

Unlike analog cable, Tata Sky subscribers can view TV through superior digital DVD quality picture and CD quality sound Wide array of interactive applications

In order to empower the Indian viewer with choice, control and convenience Tata Sky has a wide array of programming choices and interactive services like Active Cooking, Active Wizkids, Active Learning, Active Stories, Active Games, Active Sports and Active Doordarshan that can be ordered with any of the basic packages. Unparalleled customer service

Tata Sky has established an extensive customer service network across the country. It has engaged a field force of approximately 3000 service engineers who are
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complemented by high-end 24x7 call centers, manned by multi-lingual customer service associates, trained to solve all customer problems. Tata Sky takes direct responsibility for installing and servicing the hardware for periodic problems that exist at every subscriber's home, thereby ensuring the highest levels of customer service. Tata Sky retails its hardware and prepaid recharge vouchers through popular consumer electronic stores to enhance customer convenience

Analysis of Growth Strategies of Tata Sky

The success or failure of any business depends on the strategy that they adopt to grow. In this case, in spite of the fierce competition in Indian DTH market, Tata Sky is able to increase its subscriber base by 1-2 million each year. They are able to position bestvalue brand image among the customer. The growth strategies behind their success can be analyzed based on the two generic growth strategies viz In order to evaluate the Internal Growth Strategy of Tata Sky, lets analyze based on the framework of Ansoffs Matrix (Product-Market grid): Market
Existing Market Existing Product New Market

Product

1. Market Penetration Strategy 3. Product Developme nt Strategy

2. Market Developme nt Strategy Diversificati on Strategy

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As per the case study, we can visualize that Tata Sky has adopted all the three Intensive Growth Strategies viz. Market Penetration Strategy, Market Development Strategy and Product Development Strategy as the Internal Growth Strategy. This can be further analyzed as described below: Market Penetration Strategies: Tata Sky is seeking to achieve growth with existing products in their current market segments, aiming to increase its market share. In order to increase the market penetration, they are trying to increase both the number of customers as well as number of uses. To increase the number of customer they are doing massive ad campaign like 360o ad campaign using TVC, Radio, OOH (out of home), internet etc, several promotional offers like 50% discount on installation, , recharge and win offer, friends and family program, Tata Sky with a Nano car, reduced price of digicomp, super save pack, a-la-carte offer etc. Similarly to increase the number of usage they have introduced many value added services like interactive gaming, VoD (video on demand-Pay Per View) service etc. Similarly they are also showing new usage of DTH to their customers by showing DTH is not just for TV product but also like computer/game console. As the result, by introducing new usage they are attracting more customers/converting non users to users. Their constant effort on quality control is also churning few of the other competitors customer to their network. Market Development Strategies: Tata Sky is seeking growth by targeting its existing products to new market segments. Though they have started with the target of urban customers but like Airtel and other DTH operators Tata Sky also has started expanding their network to village and suburban areas throughout India, from North to South, from East to West. As a result they have strengthen their distribution network to 35,000 outlets and 5,000 towns across India. Moreover they have started SSD (sales and service dealer) across semi urban and rural markets. This helped the company to increase its presence in those areas very quickly. In order to develop a new market, Tata Sky has made a very wide distribution network. For Rural/Sub-urban areas they have agreement with ITCs e-Choupal, Godrej, Indian Oil Corporation etc. where as for urban areas they have tie-up with Tata Indicom, Pantaloon etc. This network is helping them a lot for new market development (geographical expansion). Similarly, to attract new edge segmentation they have also started ad campaign for gaming and video streaming (without changing the product, expanding segment). Product Development Strategies: Tata Sky is also developing new products targeted to its existing market segments. For example to attract the urban busy customers they launched a new product in October 2008 called Tata Sky+, where consumers can record their favorite program (up to 45 hours) while watching another channel, record/pause/rewind program etc. They had introduced a premium set top box with a personal video recorder (PVR), first time in India. Similarly they have upgraded their
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picture format to latest MPEG4 technology in Tata Sky+ by introducing innovative interactive services like Active Sports, Active Khabar, cooking, matrimonial, games and bilingual programming guide. In March 2009, Tata Sky received the ISO 27001:2005 accreditation, an internationally accepted standard for Information Security. Thus to attract new customer and retain their current customer Tata Sky seems to be able to keep their pace with time. Similarly, Tata Sky also has adopted Integrative Growth Strategy as an External Growth Strategy. Especially it has focused on Forward integration as the vertical integration e.g. distribution channel as Tata Indicom (a subsidiary of Tata group) in urban area. This is how with all the above aggressive marketing strategy Tata Sky is adding more that 1million customer every year.

Environmental Analysis Porters 5 Forces Model:

Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porters five forces are the: Threat of substitutes. Bargaining power of suppliers. Bargaining power of buyers. Rivalry among competitors Threat of new entrants.

Threat Of Substitutes DTH faces stiff competition from the Terrestrial, Cable and IPTV. As per the industry estimates, there are 120 million TV homes, of which 71 million are served by cable and around 6 million served by DTH with the remaining taken by terrestrial transmission. As IPTV is a new entrant, there is not much data on its subscriber base.

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Terrestrial Television:

Doordarshan is the worlds largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. It has coverage of 88% of Indian geography. It also provides free DTH but lack of attractive content is a key disabler for DOORDARSHAN. So it does not pose much threat. Cable TV

Cable TV currently operates in 2 modes. One is through CAS (Conditional Access System) covering cities such as Chennai, Parts of Delhi, Mumbai and Kolkata, and the other through Non-addressable system in the rest of the country. As seen in the above figure 1, Cable TV enjoys a big share in comparison with other mediums. In case of CAS controlled areas, the subscriber has to either buy or rent the Set Top Box (STB) to see the pay channels. Of course, he can also do without that and see the 70 odd Free-to-Air (FTA) Channels. On the other hand, in areas where non-addressable system is used, all the channels are available without the necessity of any separate receiver. Irrespective of whether CAS or not, the subscriber can comfortably see the channels by paying anywhere between Rs.100 to Rs.300 per month depending on the place where he lives. Due to the phenomenal reach of the Cable TV, it poses a serious threat to the growth of DTH industry. Also there would be resistance from the Local Cable Operators (LCOs) lobby as DTH totally displaces them.
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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. Telecom companies such as BSNL and MTNL have spotted these earnings potential and have already started with trial implementation in cities like Bangalore and Kolkata. Companies like Reliance Communications and Bharti Airtel are also planning to follow soon. 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 program he wants to view. Right now this medium is totally unregulated and hence there is a chance for customers being taken for a ride. Cable companies are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of Cable TV act. After this small discussion on IPTV, even if strict regulations are enforced on, we see it as a considerable threat to DTH in Urban and Semi Urban areas where broadband has made its mark.

Bargaining Power Of Suppliers DTH industry relies on three major supplies. They are 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 set to overtake Japan as Asias largest DTH by next year , the bargaining power of Indian DTH operators with CPE suppliers have been steadily increasing. However, the availability of transponders is increasingly becoming difficult. With only two domestic satellite launches between 2007 and 2010 and increasing DTH players, Astrix (the supplier of transponders a subsidiary of ISRO) is in a better position to use DTH as its cash cow for the next 5 to 10 years. 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.

Bargaining Power Of Buyers

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With enough options to choose both from the point 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. Rivalry Among Competitors With 7 players, the Inter firm rivalry is quite high. The competition from state owned DDDirect 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 who charge monthly subscription charges. 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 move, Dish TV had price advantage in both the STB as well as in procuring the transponders. On the other hand, Tata Sky claims its STB to offers superior DVD quality video due to its advanced STB. While Dish TV is planning to spend Rs. 850 crore over the next 3 years, the rival Tata Sky is willing to spend Rs.2000 crore over the medium term. The companies have also set ambitious targets with Dish TV aiming to reach 4.5 million subscribers in the next 18 to 20 months while Tata Sky aiming for 8 million subscribers by 2012. Threat Of New Entrants With already 7 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 and also initial investment as well as breakeven point is very high. . 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. There is a definite First mover advantage . So any new entrant will face a high cost when it comes to equipment and transponders.

SWOT Analysis
Strenghts 1. Leveraging on brand TATA and High brand recall 2. Technological expertise with Newscorps DTH arm Sky 3. Superior Picture quality
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4. Leads in introducing new packages & Services 5. Customer service 6. Rural penetration through ITC E-Choupal and Godrej Aadhar 7. Interactive channels and program guides 8. Innovative Product offering Tata Sky Plus Weaknesses 1. Second Mover after Dish TV who captured Market Share 2. Cannot match free service like DD 3. Currently Does not offer free Set Top Box like Dish TV 4. Litigation due to issues related to sports channels which it lost 5. Dependency on broadcaster and had issues with Sun TV. Opportunities 1. Larger disposable incomes with India 2.Tapping niche markets with Better service and Product offering 3. Expansion of distribution network through exclusive stores 4. Interactive advertising Tie up of with Samsung 5. Increase in number of TVs sold 6. Increase in the geographical boundaries with Rural Market untapped 7. Growing demand for quality of service in the form of DTH over Cable 8. CAS being made Compulsory would encourage switch. 9. Value Added Services are gaining steam. Threats 1. IPTV provides superior technology if implemented 2. Cable Set top Boxes provide easy switching due to negligible switching costs 3. Increasing Competition internally 4. Dependency on CPE suppliers to some extent 5. High dependence for transponders on ISRO 6. Dependency on broadcasters for their channel content and thus increase in cost 7. Videocon may enter DTH by building its own set top boxes. 8. No Exclusivity in Content and Rule of Must Carry 9. Cap on Investment (20%) 10. Interoperability Regulations 11. Cap on foreign Investment (49%) Targeting: Tata sky limited is targeting 8 million subscribers by 2012. More emphasis on adding more value-added services. Investment of Rs. 20 billion as it plans to ramp up its DTH
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subscribers over the next 5-7 years.Increasing the distribution channel up to 300. Segmentation: Initially Tata sky targeted rich class category but later they focused on middle class also. Targeting rural market also by joining with ITC E-Choupal It is heavily demanded in metropolitan cities.

Marketing Strategies
Analysis of Marketing Mix of TATA Sky Product: Tata sky plus + Tata sky + is the first digital video recorder to have launched in India. the expertise and superiority of the world class BSkyB Technology has been at the core of cutting edge services provided by Tata sky +. Tata sky + was also the first DTH services provide to give the power to pause, record & rewind live TV and now with true video on demand, dual access remote recording and auto standby. Extra on TV viewing 1. DVD Quality Picture & Sound9 Enjoy over 190 TV channels and services in DVD quality picture and CD quality sound. 2. Customer Service 24x7 help. Support in 11 languages. 3. Guide Get a 4-day listing of all programmes on Tata Sky DTH in English and Hindi. You can also set reminders for your favourite programmes. 4. Parental Control Regulate what your children watch on your television by locking movies based on the ratings provided by the channel or by locking the entire channel. 5. Search & Scan Banner Find out whats playing on another channel without changing the channel you are watching.
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Tata sky HD Tata Sky brings you the latest digital revolution, Tata Sky HD. With great picture quality, incredibly vivid colours, sharper images and stunning surround sound, this new service will give you a breathtaking entertainment experience right at your home. Tata Sky HD gives you a better TV viewing experience with an aspect ratio of 16:9 and 1080i resolution, which means you get to see a lot more of what you are watching.

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TATA SKY plus HD

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Place They have made wide distribution network. They have reached to 5000 towns and 35,000 outlets thorough agreements with ITCs e-Choupal, Godrej etc. for rural areas and Tata Indicom and Pantaloon for city area retailer. In order to catch the customers of new area Tata Sky has to expand its network to Rural area and expand its network even to neighboring countries like Nepal, Bangladesh etc. Price Tata Sky has offered competitive pricing but has been on the medium range. Initially, it focused on high class but now engaged in price war with Dish TV to penetrate market. It is offering 99 rupees pack to target rural areas. It is also providing recharge discounts and other value added services at reasonable price. Promotion Tata Sky's high-voltage 360 brand and product communications include campaigns on TV and in the print media, supplemented by aggressive outdoor, radio and internet advertising. The first TV commercial was a teaser that showed people junking their electronic devices because they had been rendered redundant by Tata Sky. The response was so spectacular that the Tata Sky website recorded more than 17.5 million hits in its first week of launch. In fact, awareness levels of DTH, which were at a low of
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35% in August 2006 before the Tata Sky launch soared to 98% within one year (Source: TAM Study, GfK Mode Brand Track Study). Not surprisingly, research carried out shows that Tata Sky continues to lead the DTH category in terms of both advertising and brand awareness (Source: GfK Mode Brand Track Study). Tata Sky is a proactive brand and expends vast quantities of energy in promoting its offerings. Its series of television commercials featuring Aamir Khan have been huge successes. They have been able to vividly explain features such as pause, record and rewind and the absolute delight of viewing good picture quality. Its pay-off line Isko Laga Dala Toh Life Jingalala has a memorable, distinctive and colloquial quality, encapsulating the complete Tata Sky experience. It creatively explores the web through interactive virals for their various products and services. Aggressive on-ground promotions include mall and cinema activations, local festivals and strategic retail tie-ups and van promotions. Each has helped in accelerating the brand's growth.TataSky's school contact programme was geared to promote the education services. Over the years,Tata Sky's communication has established the brand as a top quality DTH provider with campaigns that remain the most recalled in the entire category.

Brand Positioning And Values

Positioning: Tata Sky is the DTH service provider with the best customer service to ensure no family will ever miss a minute of entertainment and relaxation with loved ones. They have positioned the product with the best pricing offered by the competitors in market .Moreover they do offer different kind of packages according to the suitability of consumer. For example if a person is from south side he will be talking south economy pack which gives channel up to 65 .They offer economy pack which gives 74 channel .supreme pack give economy pack + music channel . Hence they are also positioning its product according to suitability and money of consumer. Now Tata Sky has a quarter of the 20 million DTH customers in the country. Brand Mantra Used By Company Isko laga dala toe life jingalala This brand function on principle that consumer satisfaction is must if there is consumer satisfaction then there will be overall growth of business .

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Branding Strategies
It first launched a set-top box with a recorder called Tata Sky Plus in 2008. . Tata Sky Chief Marketing Officer Vikram Mehra says that as many as 10 per cent of Tata Sky's new customers opt for Tata Sky Plus. This has helped the company drop Tata Sky Plus prices to Rs 5,999. Pulsing is an effective strategy as it will enable the company to advertising continuously as well as at low-weight Levels which help reduce the cost. This form is suitable for the communication strategy as the strategy involves Educating the target about TataSkys customer service initiatives. Considering the increasing competition, it will be important to keep TataSky fresh in the consumers mind. The media schedule will consist of: TVCs in major General Entertainment Channels, regional TV channels and DD; Insertions a week 2 in mainline print media, 1 in a lifestyle magazine. Awareness camps should be organized regularly in malls. e-Marketing should be an on-going activity throughout the year. Promotional campaigns can be held for members of Tata Sky's forums to encourage users to sign up on them and to generate excitement. The promotional strategies suggested are: 1. Packages for Special Events like the cricket World Cup 2. Targeting Tata employees could be a useful way pr promoting the product 3. Give the option of installments and other promotional schemes to the new users 4. Tie up with real estate developers to target the new constructions 5. Door to door marketing should be used to heighten the awareness levels as well 6. Local Games Sponsorships can also be used to increase the awareness levels 7. Another way could be using the prominent part of the Building for placing Hoardings of Tata SkyAds a. Finding the strategic building in the locality b. Consideration can be in form of cash payment to the Housing society c. Providing free connections to Households in these buildings 8. Another new avenue that can be explored is the railway stations: a. Posters on railway station roofs b. Tickers at Major suburban Railway stations 9. Use of Internet- Applications which involve sharing of videos on how one consumes TV, benefits of DTH over cable TV, etc. across social networking sites like Orkut,
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ibibo, etc. 10. 'Ek-pe-Teen and Do-pe-Paanch' the offer entails three months of free subscription on the purchase of one connection, and five months of free subscription on purchase of two or more connections.

Broadcast: Primarily Television commercials and radio will be used to grab the attention of the target and make them aware about Tata Skys customer service initiatives. Print: Print ads will be used to educate the target about how can he use customer services and how Tata Skys superior customer service would enhance his Television viewing experience Awareness Camps: Awareness Camps in the stores and malls will help create a platform through which awareness, education and promotion can be spread at the same time. These awareness camps will educate the customer why they need to have a Tata Sky DTH service and how Tata Skys unparalleled customer service will ensure uninterrupted television viewing, when they want it. Internet: The Internet is used as an online platform through which it can spread awareness, educate and promote its services to the target group. This is an online platform through which consumers can even address problems to Tata Sky. A forum for consumers should be maintained on the Tata Sky website. This will not only give the company advance warning of problems with its products, but also give consumers a feeling of commonality and belonging to a community. Social Networking sites are being leveraged to educate customers and solve any problems they may face while using Tata Sky.

Five Key Brand Elements Of Tata Sky

Brand Position TATA SKY positioned themselves as a customer oriented brand. They are providing the packages for the customer according to their choices. They are trying to provide high quality DTH service for their customers in comparison than their competitors.

Brand Promise

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The Brand Promise of TATA SKY is that they are providing superior picture quality and quality signals as compared to the other operators , as there were many complains of signal distraction during rains which is nil in tata sky.

Brand Personality They are using TATA & major European DTH player SKY as brand name. Moreover TATA SKY is a joint venture of star television network. As far as the promotion and advertising is concerned AAMIR KHAN is promoting the TATA SKY. So By this way they are trying to make the personality of TATA SKY. Moreover they are using an exclusive logo and distinctive tag line to make the personality of this brand.

Brand Story The Brand Story illustrates the organization's history, along with how the history adds value and credibility to the brand. It also usually includes a summary of products or services including the core competencies of the brand or the parent company itself. For example the parent company of Tata Sky is TATA group and SKY Network which have a long history in the past in India and abroad respectively

Brand Associations Brand Associations of the Tata Sky are specific physical artifacts that make up the brand. This is the brand name, logo, colors, taglines, fonts, imagery, etc. The brand associations of Tata Sky reflect brand promise, all of brand traits of Tata Sky, and support brand positioning statement. 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 BSKyB.

Brand Traits

1. The brand excels at delivering the benefits customers truly desire 2. The brand stays relevant 3. The pricing strategy is based on consumers' perceptions of value 4. The brand is properly positioned 5. The brand is consistent

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6. The brand portfolio and hierarchy makes sense.Most companies do not have only one brand; they create and maintain different brands for different market segments. 8. The brand's managers understand what the brand means to consumers. 9. The brand is given proper support, and that support is sustained over the long run 10. The company monitors sources of brand equity

Brand awareness: It includes two things: - Brand recognition and Brand recall. Brand recognition means how consumers confirm your brand when given the brand as a cue i.e. how they discriminate your brand. Here in DTH services, Tata Sky has set standards so switching to other brands is less. Brand recall means how customers retrieve the brand from memory when given opportunity among different product categories. Brand Image: - It can be created by marketing campaigns that link strong, favorable and unique associations to the brand. Also brand attributes like learning English speaking, request for favorite movies, regional/local channels, etc. have helped Tata Sky in terms of positioning itself in the customers and also penetrating more deeply into other segments of the society. However, Brand benefits also help in attaching the customers towards the brand. Thus, Tata Sky provides subscription and recharge benefits to customers and hence making them loyal towards the brand. Brand Associations: - These associations are according to the desire of the customers and hence it is necessary to successfully deliver them by products or services. Tata Sky convey them by marketing campaigns i.e. to make a good impression of reliable, efficient, colorful and convenient brand. Customer Based brand equity: - CBBE is defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. In other words, the power of a brand lies in what resides in the minds of the customers. Thus a brand with positive CBBE might result in consumers more accepting/appealing towards a brand extension, less sensitive to price increases.
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CBBE model includes majorly four things into consideration: (1) Identity: Who are you? Tata Sky is into the services of DTH services. (2) Meaning: What are you? Tata Sky wants to connect every Television home, empowering every television viewer and revolutionizing home entertainment. Tata Sky also has more than 1,500 exclusive franchise outlets with a service called BOB, or boy on bicycle, for home deliveries. Tata Sky has three different call centres at Pune, Mohali and Hyderabad with almost 1,300 people. Over the last one year, the company had four different recharge offers for the existing consumers such as giving away Rs 300 worth of content free for every recharge of Rs 300. Some company sources says Only 15 per cent of our recharges are actually vouchers that people have to buy from a shop; 85 per cent of it happens over SMS, the web or call centres which are even equipped with voice-recognition software. These are convenient options for the customers. So they have customised the services to the way subscribers want them to be.

(3) Response: What about you? Tata Sky is spending a good amount of money on the content, either through one-time payments or shared revenues. They are the only player who can claim more than 2 million purchases in the three years of operation. Movie after movie, so they realize any movie which is released on Tata Sky has a much bigger buy-rate than other platforms. Movies, interactive services and a programming guide in Hindi, Tata Sky believes, have widened its base beyond the larger cities. Since 2009, it has been getting more than 50 per cent of its volumes from outside the 50 top cities. (4) What about you and me? It is the only operator which charges for all its interactive services since its launch in 2006. It provides these for free with the exception of movies on demand. It was found that parents wanted their children to learn something out of the themes that they were fond of watching on TV, such as cartoons on Disney and Turner. Tata Sky tried to deliver same content. Apart from nursery rhymes, mathematics and general knowledge, there are also craft lessons from Pogo, for instance. This service has thus found 500,000 takers. They have also introduced the latest service that teaches English. A large number of housewives felt their lack of confidence in speaking the language hampered their
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interactions with their children but now they are being benefitted from this initiative of Tata Sky. The mothers were happy to learn in the confines of their bedroom. Research also showed that a full course could create tension with the husband who would keep a tab on the wife's progress. Sources claim that 100,000 people have signed up for the service of English teaching and another 1,500 or so are joining every day. These services have been priced at Rs 30 a month but one on cooking is at a slight premium.

Brand Management Of Tata Sky

1. REVOLUNISE TELEVISION VIEWING TATA SKY is offering a variety of channels ranging from entertainment, sports, movies, music, news, documentation in DVD player and CD quality sound. 2. EXTENSIVE CUSTOMER SERVICE NETWORK It is using 3000 service engineers in call centers to provide the good service for their customers. TATA SKY takes direct responsibility to provide its vouchers, hardware through popular consumer electronic stores to enhance customer convenience. 3. OFFERING TATA SKY offers all popular television channels with local language channels according to the demand. 4. PARTNERS It has so many valuable partners for ex. TCS, THOMSON AND HUMAX world leaders in digital broadcast technology, SUN MICROSYSTEMS, NDS(leading provider of technology for pay television) etc. INCEPTION AND HERITAGE TATA SKY is joint venture between the TATA group and STAR. So its providing good experience to its customer through its satellite TV service.

5.

6. TATA BRAND TATA Group is one of indias largest and most respected business group. It comprises operating companies in seven business sector Information systems and communications, engineering, materials, services, energy, consumer products and chemicals. 7. SKY BRAND
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The SKY brand owned by the UK based British SKY broad casting 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 BSKyB. It is also true that any operator has to acquire 5 to 6 million subscribers, who should each pay Rs 300 a month, to break even and Tata Sky is about to do that in order to have a remarkable market share in this DTH industry.

Analysis of Challenges For Sky TATA

Here are some of the major challenges that Tata Sky can face in the near future:

1. IPTV provides superior technology if implemented. MTNL & BSNL has already planned to tap this line. So, it can be a considerable threat due to its new level of interactivity. 2. Cable Set top Boxes provide easy switching due to negligible switching costs. 3. Increasing Competition internally. 4. Dependency on CPE suppliers to some extent. 5. High dependence for transponders on ISRO 6. Dependency on broadcasters for their channel content and thus increase in cost. 7. Videocon may enter DTH by building its own set top boxes. 8. Cap on Investment (20%) 9. Interoperability Regulations 10. ARPU is reducing, but government/regulator is not relaxing any Tax fee.

Market Research
Design/methodology/approach An online survey was floated to around 140 respondents in India out of which a total of 100 responses were collected and analyzed.
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The respondents were surveyed on their Awareness, Knowledge, satisfaction, perceived brand value and Purchasing Behavior of DTH services. Research limitations/implications The sample space of respondents was limited largely to adults between ages 24-35 with majority of them being employees of TCS, Tata Motors, Barclays and Eaton. A larger and more demographically diverse sample set could have provided more prudent results. Hence, the current study could only provide tentative conclusions. The type of sample was through convenience sampling. Practical implications The conclusions drawn in this paper can help TATA Sky discover the important factors impacting buying behavior of Indian consumers. This in turn can help marketers formulate effective promotional strategies for DTH products in India to increase market penetration. Research Methodology Methods of Data Collection: It details the procedure necessary for obtaining the information needed to structure or solve marketing research problems. The present study is a descriptive research and involves the use of Survey Method. Electronic survey methods can be used as the mode of administration. Questionnaire Development: The questionnaire was structured as follows. 21 questions were asked. The questions were asked to assess consumer knowledge, awareness, brand value, and finally purchase behavior. The answers were graded on likert scale

Procedures Since our study was targeted to Indian urban youth, most of whom have access to computer, convenient sampling was chosen. Excel sheet based questionnaire was floated and sent to respondents fitting the target respondent profile.

Limitations 1- The sample size is restricted to an age group of 24-35. A larger sample covering a wider age range could have provided additional insights about the purchasing behavior of the various age groups. The sample size can also be increased to ensure better reliability of responses.
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2- The present survey was self-administered. There is a chance that questions related comparison between cost, brand may have been biased as many respondent were known to us and survey was not random. 3- The survey was conducted with people with similar education level, income and profession. A better variation in terms of education and socio economic class might have thrown different lights on this issue.

Analysis of Data(Refer Appendix for survey questions) Q7. Are you aware of DTH? YES/NO

NO 5% Y ES NO Y ES 95%

Interpretation: So from the survey, it is evident that 95% of the respondents were aware of DTH system. Since the survey was conducted mainly in urban areas of pune and Bhubaneswar, most of the educated mass seems to know about these DTH systems. Which brands of DTH System are you aware of?

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100 80 60 40 20 0 TA TAS ky Dish TV A iirtel BIG DDDirect S UNDirect P lus

%of Responde

Interpretation: From the above survey results it is evident that consumer awareness for TATA Sky and Dish TV is at par and surely, one of the most aware brands in urban areas Which of the following DTH brands do you recall having seen in any advertisement?(tick the ones)

100 80 60 40 20 0 T AT AS k y D is hT V Aiirtel B IG DDDirect S UNDirect Plus %ofR es pondents

Interpretation: From the above survey results, it is evident that consumer recall for TATA Sky scores over other brands. TATA Sky advertisements easily recon with many urban consumers with Dish TV at the close second position. Which DTH System brands do you intend to buy? Rank the following in order of preference.( 1-least to 6-most)

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Airtel 6%

B IG 6%

S UN D irect 1%

D DD irect Plus 0% TATA S ky D is h TV Airtel BIG D DD irect Plus S UN D irect

D is h TV 27%

TATA S ky 60 %

Interpretation: 60% of the respondents intend to buy TATA sky. So, it is very much a prominent part of consumer consideration set. Please indicate how important it is to you that a DTH have each of the following characteristics.
Price

9 8 7 6 5 4 3 2 1 0

D ura bility Picture Qua lity B ra nd T echnolog y Power Cons um ption Innov a tiv e Products Cha nnel Pa ck a g a ing Cus tom er S ervice

Interpretation: Price and technology is the most determinant factor in DTH sector as many of them provide similar contents. This is closely followed by channel packaging and innovative products. Since only big players have jumped in to DTH sector, brand name is not as important, it is already given considering scale of investment. Who Influences the most for the purchase of TATA Sky?

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C hildren 5 % S pouse 5 %

D ea lers 9 % F riends 2 7 % rela tives 1 0 %

F riends relatives Media S pouse C hildren D ealers

Media 4 4 %

Interpretation- Media is clearly winner here closely followed by friends. Most of the urban consumers get influenced by Advertisements, promotional events on internet. Though channel like active Kids are catching up but still a long way to go before influencing buying decisions.

Which is the most important attribute that makes you purchase Tata Sky Dish TV connection ?

Interpretation: As expected, there is heavy completion in DTH market. Surprisingly, many of the consumers feel that picture quality of TATA Sky is lot superior than other dish TV connections. TATA brand is always associated with value for money perception. A combination of this is a determinant of purchase of TATA Sky. What is the USP of Tata sky ?
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40 35 30 25 20 15 10 5 0 S ervice HD Tata S ky+ P ackag es

Interpretation:TATA Sky plus followed by HD is the USP for TATA Sky.

What are those additional things that will make TATA Sky more attractive ?
50 40 30 20 10 0 Rech an rg e L oyalty Gift More Discou n t Ben efits Vou ch ers cu stom er service

Interpretation: Consumers will like more discounts on recharge and also benefits of being long term consumers. TATA Sky already provides some discount but Dish TV has more discounts than TATA Sky. Which of the following is a showstopper for Tata Sky Services?

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50 40 30 20 10 0 p rice P ackag es S ervice Tech n olog y

Interpretation: Many big players are offering similar contents in lesser price and it is slowly becoming a price sensitive market. TATA Sky channel packages and pricing needs to improve.

How would you rate technology platform of Tata Sky Services ?

50 40 30 20 10 0 Very Ad van ced Ad van ced Norm al P oor

Interpretation: Users view TATA Sky is advanced. They are pioneers in software industry thru TCS and TATA InfoTech brand. They also have global tie up with various companies. Which would be the best medium to inform you about these products?
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60 40 20 0 %of respondents

Mag azin P am phlet Billoboar 5 7 12

Radio New spap 10 15

TV 52

Interpretation: Television is the best mode of communication message to the target audience; it is the most influencing means of conversing.

Would you recommend any of the following to your friends and relatives?

50 40 30 20 10 0 T AT AS k y D is hT V %of res pondents 41 35 B ig 5 Airtel 10 D D D irec t 1 S un D irec t 10 \

Interpretation: Customer satisfaction is high and most of them will recommend TATA Sky to their friends and relatives.

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Recommendations

PRODUCT:

1. Use common Dish per house for Multiple Television sets 2. Combined Product with Television - Rural Areas, especially and Niche Segment Targeting if Combined with LCDs 3. Connectivity with other digital Monitors like Laptops for Commercial Usage 4. Guide can be displayed in Multiple Regional Languages 5. Voice over in Multiple Languages (Currently limited availability in for some programs) 6. Inclusion of Radio Reception. Development of Visual Radio service. 7. Variety in Movie Listing with Bollywood, Hollywood and Regional Channels 8. Special channels for Songs Request like Jukebox could be launched 10. Stock Market related interactive service on Active PRICE:

1. Free Set Top: Following the line of Dish TV, Set top Boxes can be given free while ensuring lock in by providing base pack free for limited time duration, thus inducing update to next level. 2. Lock in of 1 year: Ensure long term lock ins by providing incentives for pre payment of long term charges. Continue with current strategy of providing 2 months free on payment of 10 months services. 3. Multiple Connections: Provide discounts for consumers buying second Tata Sky Connection (up to 50% off) 4. Encourage References: Provide discounts on Monthly charges if reference from existing consumer becomes a new customer.
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5. Regional Disparity: Provide free regional packs in local areas to ensure switch from Cable TV to DTH service, i.e. provide free south Jumbo pack for customers in all Southern States. 6. Community Dish: Provide Incentives in the form of Free Months charges for first 3-6 months and reduce the Installation charges per flat. 7. Postpaid: Some clients depending upon few background check criteria can be given Billing service i.e. Payment at end of Month PLACE: There is a lot of scope of increase in the number of customers across all the states. Here are some recommendations: 1. Include the local cable operators as distributors. Staff of cable operators can be made the distributors for Tata Sky (familiarity with people). Attractive options can be given to them to become distributors. 2. More target on rural market. Because the Rural TV households is growing by 3-4 million each year, but only 2-3% of them have access to cable(55 million TV sets in rural area). Strategies for the rural sector can be like Customizing offering, Educational Package, appointing the village head as Distributor and this can be supplemented by giving the connection to village head free for initial period. 3. Setting up Mini Theatres in rural sector to promote the Product with events like Cricket matches, movies etc. and can be the Point of Sales for Tata Sky.

PROMOTION: The promotional strategies are already suggested in branding strategies section. MARKET PENETRATION Tata Sky can penetrate the market by: 1. Proving Competitively Priced Services (because customers feel Tata Skys price is bit higher than other DTH operators) 2. Innovative and Superior Technology 3. Interactive Services 4. Better customer Support
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MARKET DEVELOPMENT Tata Sky can enter new markets by entering: 1. Expansion in Rural Markets 2. Entering Neighboring Countries (provided license available), Enter Commercial Space Offices , Coffee Shops, etc. 3. Enter Travel Sector PRODUCT DEVELOPMENT The product can be further developed with evolving time: 1. Combined with TV 2. Combined Dish for multiple Television (Society or Each Flat) 3. Target at educational needs in Rural areas where it could be used. 4. Stock Market Ticker and analysis can be included in Active

Appendices And Annexure Questionnaire

1. Name: 2. Age: Sex: M/F______ 3. Occupation: 4. Family income in Rupees per annum: a. Less than 1 lakhs c. 6 lakhs to 10 lakhs b. 1 lakhs to 5 lakhs d. above 10 lakhs

5. Are you aware of DTH? YES/NO 6. Which brands of DTH System are you aware of? TATA SKY DIGITAL 7. Which of the following DTH brands do you recall having seen in any advertisement? (tick the ones) TATA SKY DIGITAL
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DISH T.V

SUN DIRECT

DD DIRECT PLUS

BIG TV

AIRTEL

DISH T.V

SUN DIRECT

DD DIRECT PLUS

BIG TV

AIRTEL

8. Which DTH System brands do you intend to buy? Select the only one applicable. TATA SKY BIG TV DISH T.V SUN DIRECT DD DIRECT PLUS

AIRTEL DIGITAL

9. Please indicate how important it is to you that a DTH have each of the following characteristics.( Check the box for each characteristic)

Not At all Important Price Durability Picture Quality Brand name Technology Power consumption Innovative products Channel Packaging Customer Service 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3

Extremely Important 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9

10. Who influences the most for the purchase of your TATA SKY? Spouse Children Relatives Friends
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Dealers

Media

11. Which is the most important attribute that makes you purchase Tata Sky Dish TV connection ? Price Media Picture Quality Brand Suggestion of Relatives Friends Technology Innovative products and packages

12. Which pack you use most of times? South Sports Pack 13. What is the USP of Tata sky ? Service HD Packages TataSky+ Dhamaal Mix Pack Supreme Sports Kids Pack Grand Sports

14.What are those additional things that will make TATA Sky more attractive ? Discount in recharge Surprises Loyal customer benefits More customer services Gift vouchers

15.How did you learn about TATA Sky brand? Media (TV, Newspaper, Radio) Service Technology Internet word of mouth Price other 16.Which of the following is a showstopper for Tata Sky Services? Packages

17.How would you rate technology platform of Tata Sky Services ? Very Advanced Advanced Normal Outdated

18. Which brand of DTH system do you own?

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TATA SKY DIGITAL

DISH T.V

SUN DIRECT

DD DIRECT PLUS

BIG TV

AIRTEL

19.Which would be the best medium to inform you about these products? Magazine Pamphlets Radio Newspapers billboards TV Advertisements

20. How would you rate the overall performance of your TATA SKY? Good Fair Poor Bad

21. Would you recommend any of the following to your friends and relatives? TATA SKY DIGITAL DISH T.V SUN DIRECT DD DIRECT PLUS BIG TV AIRTEL

Bibliography
http://www.researchandmarkets.com/reports/1942315/tata_sky_ltd_company_prof ile http://www.tatasky.com http://broadbandforum.in/sun-direct-dth/25416-compare-channel-list-price-tatasky http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG225.htm http://www.indiabroadband.net/direct-home-satellite-cable-iptv/25813-dish-tv-vstata-sky-vs-sun-dth-vs-big-tv-vs-airtel-dth-vs-videocon-dth.html http://www.saveondish.com/forum/T-indian-dth-market-forecast-to-2012 http://www.tataskyplus.com/
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http://www.managementparadise.com http://www.thehindubusinessline.com/today

s-paper/tp-marketing/article1004127.ece http://www.trueknowledge.com/q/what_is_the_slogan_of_tata_sky

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