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8/11/2019 Dish TV in Rural India
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Team MindIt
Great Lakes Institute of Management Chennai
Trend chosen- The Small Town Indian rises
Team Members
Malhar D Lakdawala (malhar.pgdm15c@greatlakes.edu.in
Harsh Agarwal (harsha.pgdm15c@greatlakes.edu.in)
Siddharth Mehta (siddharth.pgdm15c@greatlakes.edu.in)
Contact Details
+91 9176059722
+91 9769494336
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The Small Town Indian rises
Rural proliferation of Dish TV
Company
High disposable Income had facilitated them to buy television sets but services of cable TV were u
the launch of Dish TV, the whole gambit of viewership has changed. Moreover, Dish TV targeted ca
Current market shares of various players are as follows :-Dish TV : 30%
Sun Direct: 25%
Tata Sky: 22%
BIG TV : 13%
Airtel : 8%
D2H : 2%
The growth in the rural segment can be attributed to frequent power cuts in the rural areas. DTH platform gives the to their favorite programs, with the help of generator/ invertors, which is not possible with the cable service in most
8/11/2019 Dish TV in Rural India
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Quick Statistics
Digital TV penetration is 34 per cent in rural areas and 11.9 per cent in urban India.
Indian rural market generates about 50% of the countrys GDP. Small towns comprises around 840 million people.
According to data from National Sample Survey Organization (NSSO), rural consumption per person increased annual
20092012. The following figures reflect rural Indias significance to the countrys economy :
I n incremental terms, spending in rural I ndia dur ing the peri od 20092012 rose by US$ 69 billion to urban Indias US$
Defying logic, 70% of DTH connections in India are from rural and small towns (population under a million), as per a
research firm (Francis Kanoi)
Dish TV and DDs Direct Plus DTH service are the market leaders in Rural India, while Tata Sky, Dish TV and Sun Di
preferred brands in top metros.
Out of 13.2 million DTH subscribers, over seven million DTH subscribers are from rural markets alone.
___________________________________________________________________________________________
So, what explains the magic of DTH? Obviously, the key is its high-quality signal, especially for those consumers who
Also, it has provided customers the choice to see what they want rather than being at the mercy of the cable operator.
In India, DTH services are about customer service, viewing quality and value added services.
Spending patterns show a significant divergence across rural and urban India. While the mean household income of urb
increased 6% in rural India. Monthly ARPU in urban India fell ~15%, but showed a small increase in small towns.
DISH TVs are best as compared to city cable networks; because, it is easiest method to recharge through our mobiles/inchannels as per our choice and change the package also; there is very less maintenance and fast service.
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Brick N Click mAdvertisement in v
Various outdoor acpaintings, hoardingpromotion month.
Launched song as rules in small town
Launched dishsaw
Dish TV has a vast distribution of dealers& customer service across 6600 towns
Repackaging content as rural customers optfor Hindi content over English
Customer care services.
Customized services and packages as percustomer requirements.
No extra charge
Less time
No transportation c
The upper rural SE
Simplicity in Use
Good Mix of regional languages
Native Language would be preferable
Differentiating itself from time to timethrough its positioning and widedistribution.
Made website more user friendly Acceptability
Affordability
AwarenessAvailability
The 4A framework as adopted by Dish TV
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Inter firm rivalry
VERY HIGH
Price Wars
Non Price Wars
Threats of New Entrants
HIGHDTH market is having only 7
operators
Bargaining Power of Buyer
HIGH
Range of Options
Price Sensitive Buyers
Threats of Substitutes
VERY HIGH
Cable TVHigh
IPTVMedium
Terrestrial - Low
B
TranC
Crucial determinants in
the DTH Industry & Dish
TV
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Product
Multilingual GUI:The GUI of the Set Top Box software wasredesigned in multilingual form.
Regional Channel Offerings: To target rural audience, focus was onpromoting regional channel offering
Customized servicesand packages as per customer requirements.
Price
Subsidy on the hardware: Bundle Pricing of
Free subscription for initial months: By giDishTV boun
Focus on Prepaid Recharges: DishTV fo
Place
More Sales and Service Centres: DishTV increased no. of Salesand Service stores to 1,00,000 centres
Missed Call Service: Customers gave missed call to reach toDishTV customer care
Recharge Through IMPS: To facilitate small retailers to haveagency, recharge through IMPS was implemented
Promotion
Sales Promotion in Melas: DishTV promoted the
Brand Ambassador: Shahrukh Khan (As SRK and demographics and appeals to a universal audi
Tagline Changed
Demo Vans: The Demo Vans educated the mass abecame a tool for promotion
Festival Promotional Offers: like Diwali Doubleoffer
4P Strategy of DishTV totarget Rural Market
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- Growth for the digital
segment in rural areas
were 34%, 49% and 64% inthe past three years.
- 45mn customer base for
Dish TV as on 2013 out of
which 14.85mn customers
are from rural India.
- So, starting from 0 in
2004, it has now reached
14.85mn in 2013.
M k ti t t & it i t
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Marketing strategy & its impact
The strategy was to not concentrate on metros and large cities, where cable reigned supreme, and instand rural markets where laying cable was not viable and consumers were starved for good content. It
limited programming: essentially the Zee bouquet and a few other channels.
By 2008-09 Tata Sky, Airtel and Reliance Big TV were aggressively building their brand and increasing ththen empanelled Nielsen to conduct a research on the factors for considering a particular DTH brand an
considering Dish TV. They found out that consumers wanted more number of channels that satisfied their nwhen it comes to entertainment. The tagline: Sabse Zyada Entertainment took form, which emphasize
service, value and reach.
Then they launched a Rs 100 Happy Home Pack, which was customized to offer entertainment in all entertainment, sports, business, news, movies and cinema. The move witnessed 100% growth in sale
subscribers a day. Cashing in on the festive season, Dish TV added 3.4 lakh subscribers to its base.I
even during the economic slowdown and identified opportunities in the rural markets where the imp
The first phase of communication
focused on raising awarenessabout DTH services amongst the
target audience. With this idea of
tapping the potential in cable-dry
rural areas before going national,
Dish launched a campaign Dish
Har Chhat Par in 11 languages.
By 2006-07
Star and Sotake the nu
155. It adop
Bring Hom
motivate th
rationally a
to buy Dish
The company then
focused on empowering
the consumers by giving
them the control of what
they wanted with the new
tagline: Future of TV
entertainment.
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Ill help you Recharge campaign on Facebook Enter yoursubscription number and details, we will help you understand about the
application of it through our professionals.
Campaign - Amma let me
recharge for you DTH RecAttractive gift vouchersD
recharge and get a free vouc
Mobile recharge , DTH recha
Data card recharge
To ensure awareness first. Do some give way campaigns.
Promotions as suggested in the previous slides.
Then announce a Dish TV festival which will have ecents
like
Movie Screening
Lucky Draw
Meals/Snacks Comedy & Poetry shows
Meditation or health sessions for the elderly.
This will only be for those who have a Dish TV installed at
their homes. Thereby ensuring people buying it to enjoy
this benefit. The festival as such wont also cost us a lot.
It can also be spread across villages.
The way forward
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The way forward
Dish TV is buoyant about its one-upmanship in the DTH category.
Now that Dish TV is out with a brand new communication strategy to pull in more consumers, the challenge is to stamid the clutter created by new entrants. The growth strategy has to be largely customer cent
The brand has increased its distribution with live transmission in buses and trains. It has also made its headway in shbigger market share, Dish TV has tied up with yatra.com for applications like Travel Active; monster.com for M
shaadi.com for Shaadi Active Matrimonial.
It has introduced an interactive banking service with ICICI Bank and tied up with Caf Coffee Day and Kingfisher fthe brand has a wide distribution network and deep penetration in Tier II and Tier III markets, it feels the alliance need of an audience whose access to the internet is limited.
Yet, there are some major challenges which DTH has to combat. Its acquisition cost of a subscriber is more than douas it has to subsidize each set-top box by Rs 3,000 to Rs 3,500. The depreciation of the rupee has made it worse becaimported. DTH players recently passed on some of the costs to subscribers, but they cannot do so indefinitely when
penetration in the market. As a result, the bottom-line of most of them is under pressure and companies like Dish TVare in the red.
WHAT TO DO
Online portals are also expected to be instrumental for companies trying to access rural markets, in the
Gives demos at Mandis after crop season because farmers are cash rich & able to commit
The other concern is the tax burden on operators which is squeezing profitability. As much as 33 per cent of their government: 10 per cent as revenue share and another 23 per cent as service and entertainment tax (on an average; it
The DTH industry has been lobbying hard against it.
Companies entering rural emerging markets with new brands can also gain consumer trust by piggybackingon the trnon-profit organizations and local citizens. ITC, for example, chose to piggyback on the reputation of prominent fa
Choupal initiative to extend its distribution channel deep into rural communities in India.
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