Presented By – Group 7

Sanket Dave (9) Nalbha Shrimal (31)

Kinjal Shah (30) Chirag Verma (37)
Pranjal Goel (43)

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 Company Profile
80-20 joint venture between Tata group and Star
Incorporated in 2004
Launched on 8th August 2006
Uses the sky brand owned by British sky
broadcasting

JV

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In India it has taken DTH 5 years to get to
6 million plus subscribers!

Which is a record in itself

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And Tata Sky crossed 2 Million subscribers in 20
months… the fastest subscriber ramp-up ever by a
DTH platform

2.5
2
2
Millions (Subs.)

1.5
1
1
0.5
0.5
0
0
-06 -0
6
-0
6
-0
7
-0
7 -07 -07 -0
7
-0
7
-0
8
08
g ct ec b r n g ct ec b r-
Au O D Fe Ap Ju Au O D Fe Ap

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 The DTH category is expected to grow
by 680% or so in the next 7 or 8 years!
40 37.6
36.2
35 33.8

2007 to 2015…Growth of 683 % 30.4

30
26.1
Subscribers (Millions)

25
20.9
20

15
15

9.8
10

4.8
5
1.925
0.18 0.75
0.06
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year Source : MPA report , March 2007

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 Playing the volume game… DTH in India

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

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 But…
• The Indian market is changing….
• Rise in Disposable Incomes
 75% percent rise in per capita income ( 1990 – 2007)

• Appetite for Entertainment is growing

 10 Million color TVs sold annually
 125 Million TV homes ….have doubled in last 6 years

• Rapid adoption of new technologies by Indians

 350,000 Satellite TV subscribers added every month

Source: NCAER

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 INNOVATION

Marketing

Products

Increase in Market Share

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 Tata Sky+…taking
digital TV to the next
level
What is unique..
Superior picture quality (DVD Quality)
Leader in introducing new packages and services
Rural penetration through ITC e-choupal
Innovative product offering- TATAsky+
Innovative Advertising

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 Competitive forces
•India has about 130 mn TV homes of which 57% have cable
services, 11% have DTH services and remaining do not have cable.

•By 2015 DTH will enjoy 40% share, digital cable 40% and analog
cable will have only 20% market share.

•DTH is relatively a new product and most people are hesitant to

adopt this.

•Not restricted to urban sector only- 70% of its subscribers reside in

rural area

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isko laga dala toh life jhingalala
• Reliance Big TV
2008
• Airtel Digital TV 2008
• Dish TV 2002
Key Players
DD direct – state owned free service provider
Dish tv-owned by Essel Group- the 1st commercial DTH
service provider
Sun Direct-owned by sun group-focus on low income group
Reliance Big Tv-new into the market
Airtel digital Tv- Bharti group with aggressive marketing
strategy
Videocon D2H- by Videocon group, new into the market

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 Market share
Market Share (in %)
10

Big TV
53
Airtel's Digital TV
Tata Sky
30 Dish TV

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Competitive Edge- TATA ACTIVE

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Tata sky+
best feature:

Tata Sky+…taking
digital TV to the next
level

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 Regulations
TRAI And Information & Broadcasting Ministry Is The
Governing Body Of DTH (DTH Regulation Act 2007)

Government Has Imposed Strong Rules Like

- No Visiting Or Repair And Maintenance Charges Against

DTH Equipment During Warranty Period

- The DTH Operators Cannot Alter The Subscription

Package During The First 6Months, Or Till Validity Expiry,
Of A Subscriber's Enrollment, Etc

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 Socio-cultural factors
Consumer Attitudes And Opinions

Brand, Company, Technology Image

In a group, several individuals may interact to influence the

purchase decision. The typical roles in such a group decision
can be summarized as follows:

Initiator
Influencer
Decider
Buyer
User

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Target Market for TATA Sky
Tata Sky caters to 91% of DTH subscribers in
Metro Cities and high income groups.

To reach out to the customers in both the

urban and rural areas

Hopes to have about 8 million connections

by 2012

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isko laga dala toh life jhingalala
• To educate consumers about the benefits of Phase 3
satellite television versus digital cable in CAS
Markets
• To educate consumers about the interactive Phase 2
features
• To educate consumers about the satellite Phase 1
television and its attributes
Marketing Strategies and Objectives
 Price

Marketing
Place Mix of Promotion
Tata Sky

Product

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 Product
DTH service based on 3 ‘C’s i.e.
Choice, Control and Convenience
More than 170 channels with DVD picture quality and
CD sound quality
Services provided
Active Services
Search and Scan Banner
Guide (including Hindi display)
Customer Service – 24 x 7 help, Support in 11
languages

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Technologies and services that can be imbibed …
1. Combine product with television
2. Connectivity with other digital monitors like
laptops for Commercial Usage.
3. Guide can be displayed in multiple regional
languages.
4. Stock market related interactive service on
active.

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 Price
Strategies that can be adopted :
1. Free Set top Box
2. Multiple Connections
3. Encourage References
4. Regional Disparity
5. Postpaid

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 Place
Strategies :
Including local cable operators
as distributors

Strategies for rural sector

Mini Theatres (Class B Towns)

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 Promotion
Aamir Khan as the Brand Ambassador
Tie ups with ITC E – Choupal and Godrej Aadhar
give it wider rural reach
24 x 7 guru.com to provide content for Active
Learning
Adopted a 360 degree marketing campaign.

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 Suggested strategies
1. Option of installments and other promotional
schemes to the new users
2. Door to door marketing
3. Local games sponsorships to increase awareness
levels
4. Prominent part of  building for placing
hoardings of Tata Sky

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Analysis – Porter’s 5 force Model

Supplier

New Competitive
Rivalry Buyer
Entrants

Substitutes

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Bargaining power of Suppliers-High
Relies on 3 major suppliers
Customer Premise Equipment - Satellite dish
Set top box and Access Card
Ku Band Transponder and content
Transponder provided by Astrix, ISRO
hence dependency exists
Less regulations in channel pricing
They are at mercy of Broadcasters.

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Bargaining Power of Buyer - High
High bargaining power of Buyers

Power to chose options

Homogeneous market because of Less differentiation

Influences by Cost versus Service

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Threat of Substitutes- Medium

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 Threat of New Entrants - Medium
Medium threats from New Entrants
7 players in DTH space
More Competition
First mover advantage
Bargaining power of suppliers is high
High Expected growth rate

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 Competitive Rivalry - High
Market Share (in %)
10

Big TV
53 Airtel's Digital TV
Tata Sky
Dish TV
30

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 BCG Matrix
20%
Stars Question
Hi 18% Marks
16%
14%
12%
Market
Growth 10%
Rate 8%
6%
4% Cash Cows Dogs
Low 2%
0%

10.0 x 8.0 x 6.0 x 4.0 x 2.0 x 1.5 x 1.0 x 0.8 x

0.5 x 0.1
Low
Hi Relative Market
Share

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4.34
 EXECUTION
Professional installations across
the country

24x7 Call Centres, Over 800 associates,

supporting 11 languages 3000 engineers across India

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Partnership with Global Leaders…

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Tata Sky…setting new standards

Execution

Tata Sky’s Approach

Innovation

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DTH is a nascent category in its growth phase

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DOING IT DIFFERENTLY
• “To get to the bottom of
the pyramid, start at the
top”
Upper

• Make technology
aspiration to early adopters Middle

• 1 Million subscribers in 1 Low

year… fastest ever in the
world

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 STRENGTHS

THREATS
SWOT WEAKNESSES
WEAKNESSES
ANALYSIS

OPPORTUNITIES
OPPORTUNITIES
 STRENGTHS
- Strong Brand (Reliability- TATA)

- Experience Curve- SKY

- Superior Customer Service

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 WEAKNESSES

 Perceived to be costly

 High Lock-in

 Dish TV’s first movers advantage

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 OPPORTUNITIES
- Tier II and Tier III markets

- R&D Investment

- Interactive Applications

- 680% growth in DTH market expected in next 7 years

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 THREATS
- Emerging Players like Reliance, Airtel,
Videocon

- Stiff Competition from Cable operators

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 No. of respondents: 100
AGE GROUPS
Age
45
40
35
30
25 Age
20
15
10
5
0
<25 years 25-35 years 36-50 years >50 years

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 Usage of Cable vs. DTH service
Usage of Cable Vs DTH Services Interested to use DTH Services

80 76
70
60 80 65
50
ts
ts

Cable service
n

60
e
en

40
d
d

No. of
n
n

DTH Service Yes

o

24
o

30
p

Respondents 40
es
sp

Maybe
e

11
R

20
offR

20
..o

10 No
N
No
o

0 0
1 1
Cable Vs DTH services Level of Interest

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 Sources of Awareness
Series 1
60
50
40
30
20
10 Series 1
0
er ts d s 4 rs th
a p
ve
n A o ry u to o u
sp E TV teg ri b M
ew C a si t of
N D rd
/ o
ers W
l
tal
s
In

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THANK YOU

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