DTH in India

1. DTH in India Submitted by: AlsabaRahman (128) HarshaMahadule (136) Shazia Jamal (123) SwatiKhanduri (130) Yash Bhawsar (133)

2. What is DTH? • DTH stands for Direct-To-Home television. • Reception of satellite programmes with a personal dish in an individual home. • Does away with the need for the local cable operator • Broadcaster directly in touch with the consumer • Payments made directly by the subscriber to the satellite company offering the service

3. Share of the Broadcast Pie • India has about 133 million TV homes • DTH penetration is only 10.5% of the total TV population in the country • DTH homes are estimated to increase to 30 million by 2012, from 14 million in 2008 • Price Waterhouse Cooper. Source Comstrat 2008, DraftFCB Ulka

4. Problems of C&S • Residents of Small towns and cities were clearly unhappy • Poor transmission • Lack of service of the local cable operators • C&S penetration in remote and hilly areas is a problem

5. DTH BOOM! • Overall investments required in putting up a DTH infrastructure has dropped • Need Gap: India’s varied geography and population distribution, could be easily tapped by DTH operators • Better experience : Digital clarity of sound and picture • No hassles related to cable operators • Availability of Value Added Services (VAS) • like Movies On Demand, quizzes for kids, games, live telecast of rituals in famous temples etc. • Of 12-14 mil. Color TV sold per yr in India,, 4-5 million lie in 29 inch-plus category- a clear target for DTH services

6. The Top Players • DD DTH - Free service and acquired a subscriber base of 7 million connections (Jan2008) • The largest private player is Dish TV with a market share = 24% • Tata Sky with a market share of 18% Source Comstrat 2008, DraftFCB Ulka

8. Private DTH players-Source Economic Times, October • Dish TV: 4.4 million subscribers. Company acquired highest number of subscribers in October (53% market Share) • Tata Sky: 2.7 million subscribers • Sun Direct: 1.7 million in South India • Big TV: 0.5 million subscribers, 1 mil in Nov (15 % ) • Airtel Digital TV: Still not revealed • Videocon: D2H service will be launched soon.

9. DD Direct Plus • Launched in December 2004 by Doordarshan • India’s first DTH service offering about 50 TV channels and 12 radio stations

10. Objectives • Doordarshan, the national broadcaster in India- Network of more than 1400 transmitters and Signals available to about 90%  (DD1) population of India • Coverage of remaining 10 % population with terrestrial (single channel) broadcast would cost enormously • Obj: To Make the programmes of national importance available to all its people and nationals • DTH with “Ku-band transmission” to provide coverage in all uncovered areas (including remote, border, tribal, hilly and inaccessible areas in one go within a short time)

11. Communication Strategy • Advertised on DD channels extensively • Focus on the current users and delight them by offering more channels at better quality • Price of a receive system is less than Rs 3000- a one time investment • No payment for activation

12. Result • 70 million satisfied subscribers across the country

13. dish tv

14. dish tv • Venture by the Essel Group and was launched in March 2005 • India’s first private player in DTH industry with a presence in 19 states • Gross subscriber base of 4.4 million (Oct 2008) • Over 185 channels to choose from • Recently launched an entry-level subscription at Rs. 100 per month with the largest offering of 125 channels

15. Marketing objectives • To sustain the leadership in the DTH sector • Create new customers: Elevate people to DTH from cable TV or DD • Focus on Rural and Regional Markets

16. Marketing Strategy • Segmentation: Launch as per area, region, geographical location etc. • Target: Both rural n Urban Consumers Sec B, B+ and above • Price Benefits and Advantage • Be attractive with new advertising and new promotional offers at festival seasons • Create Word of mouth publicity

17. Communication objectives • Communication is directed towards creating dissonance about the cable operators • “Don’t be santusht” campaign • Brand ambassador Shah Rukh Khan.

18. The Campaign • Campaign is a satire on the 'complacent with sub-optimal' attitude of people • Attempts to shake people’s “chalta hai attitude” • Question people why are they santusht with so many issues, why do they settle for less, why don't they ask for the best - in all spheres of life • Aims to urge them to give up sub-optimal quality of cable viewing and move to the best in quality of entertainment through dishtv.

19. Communication strategy • Positioning: “Don’t be Santusht with cable tv; Thoda aur wish karo.. DISH karo” • Use brand ambassador extensively to convey brand image

20. Advertisement • 360 degree approach • TVC, Print, Radio, outdoor, point of sale etc. • Reinforcing attributes of the brand and reiterate its positioning • Emotional Appeal

21. Dish TV Ad- 2008

22. TVC 2 • The film opens with Shahrukh khan saying…“ Shantusht….Satisfaction……The main problem of this country is the word only Shantusht.” • Bad Road and Bad Traffic; Due to airports, plane noises; the river water; no play grounds and finally Bad transmission problem of CABLE TV. • After explanation of these all problems, he tells audience about facilities and services like DVD quality video, Games, Multi angle viewing, Movie-on-demand etc. in DISH TV. • After given all these facilities, people are still satisfied with the CABLE TV and then he intimates his wish to kill the word “Shantusht” And at last saying the Tagline: “Don’t be Shantusht…thoda aur Wish Karo….Dish Karo”

23. Sales Promotion- 2008 • The latest (2008) sales promotion scheme of the Dish TV which is related to “Dish TV Set up Box Free” with push the print ad “Aaj ki Taja Khabar” advertisement campaign in the print and electronic media

25. Benefit of choice!

26. Media plan • Broadcast Timing • As it is targeted to common people who existing users are of cable tv. Mainly, these people are showing the entertainment channels such as Zee TV, Sony TV, Zee Cinema, etc. channel. And for that the broadcast time mostly prefer for in between the TV serial or Movie. There is no fix time. • Time duration of advertisement • The timing of the ad is 44 seconds. Due to constraints of budget and broad casting frequency the company has to edit the time duration of ad. • Frequency of advertisement • There is no any particular frequency. It depends on the situation and movie time.

27. Brand Image • Image of first DTH Service provider, Inexpensive, Value for money, Superior quality • But poor quality

28. Result • Top player in private DTH category with 53% market share and more than 4.4 million subscribers across India

29. Tata Sky

30. Tata Sky • JV between the Tata Group and STAR. The SKY brand, owned by the UK-based British Sky Broadcasting Group has over 20 years of experience in satellite broadcasting. • Launched its services pan-India in August 2006 • Subscriber base of nearly 2.5 million (Aug 2008). • Over 147 channels to choose from • Launched an entry-level subscription plan called ‘Super Hit Pack’ at Rs. 99 per month with a bouquet of 53 channels.

31. The differentiators • Strongly 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 • Tata Sky though a late entrant created an aura of first mover in the minds of the customers, as it was the first DTH service to be advertised in India.

32. Earlier Advertising • In the year 2007, Hrithik Roshan promoted Tata Sky with the tag line “Isko laga dala toh life jinga la la” • Extremely catchy line..got very popular!

33. Advertising Message 2006 The film opens on a man walkingon the road with grass all over hisbody. People around him look with astonishment as they see his unusual covering. He reaches a cricket stadium and lies down behind the wickets to see the match from... ...apni pasand ke angle se dekhna ho toh itni taklif kyon? Ab Tata Sky satellite TV ke active spots pe ghar... ...baithe aap angle badal badal kar match dekh sakte hain. Tata Sky. Isko laga daala toh life jhingalala.” ...a close angle. As he sees the match from different angles, the VO plays, “match...

34. 2007 The film opens with the VO asking “Pehelwan ki mooch na ho toh kaisa lagega?” The next situation is of a monkey without tail. The VO asks how would Sholay look without Gabbar, the notorious villain. Following that is a situation in which a fish that is not fried is served on the table. The ultimate question: “TV pe Tata Sky na ho toh kaisa lagega?” VO: “Sher agar babbar na ho toh kaisa lagega?” ...Utna bada milega Tata Sky pe discount. Tata Sky. Isko laga dala, toh life jhingalala.” VO: “Kuch cheezein ek saath hi better lagti hain, jaise ki TV aur Tata Sky... ...Jisse mile DVD quality picture aur sound. Aur is Diwali jitna bada kharidoge TV...

35. Marketing Objective ‘To have about eight million connections by 2012.’

36. Tata Sky Market Objective Reach VAS Customer Service Value 1 2 3 4 • National coverage (Urban & Rural) • Subscriber Mgmt Payment, Renewals, Recoveries • Focus on Interactive Services • PPV • Alerts • Red Button promos • New Innovations • Outstanding Customer Service at all Touch Points • 24/7 Call Center • Language support • Engineering support • ‘Value’ for money brand • Quality content • Relevant packaging • Exclusive / Niche content Brand Building Monetising volumes. Improving ARPU.

37. Market Strategy Setting new standards Execution Tata Sky’s Approach Innovation

38. Marketing strategy Three distinct phases — Phase 1 : To educate consumers about satellite television and its attributes; Phase 2: To educate consumers about the interactive features Phase 3 : To educate consumers about the benefits of satellite television versus digital cable in CAS markets.

39. Market Strategy (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. 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. Payment Options: Allow multiple points of payment, ensuring timely payment and convenience to the customer – Credit Card through Website (implemented), Pre Paid cards from Retail shops to be activated using Telephone (Implemeneted) and Drop Boxes at Societies. 7. Postpaid: Some clients depending upon few background check criteria can be given Billing service i.e. Payment at end of Month

40. Market Strategies (Promotion) • 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 instalments 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 Sky • Ads • 8. Another new avenue that can be explored is the 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, 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. • 11. Tata Sky launched an interactive game quiz featured around MS Dhoni to coincide with the • Twenty20 World Cup. In the past, the DTH operator has been test-piloting feature by running • several contests around programmes and the interactive features were made available to its • customers.

41. More Marketing Strategies • The marketing budget that TATA Sky begun with was 15% of sales. This included around 5% for advertisements, 7% discounts and promotions and 1% sponsorships. • Further, tie ups with ITC E-Choupal and Godrej Aadhar give it wider rural reach. Also for its distribution, TATA Sky has a tie up with ITC International Business Division. • The 24X7 guru.com has joined hands with TATA Sky to provide content for Active Learning. • Plans tie-ups with Sony Pictures, Fox for content- Pay per View service for exclusive events

42. Partnership with Global Leaders…

43. DOING IT DIFFERENTLY • “To get to the bottom of the pyramid, start at the top” • Make technology aspirational to early adopters • 1 Mn subscribers in 1 year… fastest ever in the world Upper Middle Low

44. To delight customers • Low cost packages to increase penetration - Tata Sky has recently introduced a Rs 99-a-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.

45. Advertising Strategy • Tata Sky has adopted a 360 degree marketing campaign approach that encapsulates television,print, outdoor and radio along with on-ground activities and marketing on the digital platform.

46. Advertising Strategy contd. • Latest brand ambassador: Aamir Khan who stands for exclusivity and perfection. • The campaign was created to establish the pedigree of Tata Sky • Would feature in all TATA Sky brand and product communication, including advertisements in TV, print and radio

48. Market Strategy (Place) Place State Share (%) • Maharashtra 12.1 • Gujrat 10.5 • Karnataka 7.2 • Uttar Pradesh 6.9 • Tamil Nadu 6.6 • Punjab 6.4 • Orissa 5.3 • West Bengal 4.7 • Kerala 4.6 • Andhra Pradesh 4.6 • Rajasthan 4.5 • Assam 4.0 • Madhya Pradesh 3.8 • Others 18.8 • Total 100 Clearly, there is a lot of scope of increase in the number of customers across all the states. Looking at the current distribution system that Tata Sky has adopted:

50. Advertising Strategy • To tell subscribers what benefits they get from the product rather than talk about the features • To communicate the message of Tata Sky being a one-stop shop for complete home entertainment making other mediums redundant • To reinforce greater customer care initiatives, and retain market lead • Provide delighting VAS