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A presentation on Tata Sky Marketing Strategy
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5/28/2018 Tata Sky Strategy
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G R O U P 4
Product Strategy and Management
Tata Sky
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Agenda
Business Problem Context
Approach
Industry Overview
3Cs - CompanyCompetitionCustomer
Framework based Research & Analysis
Key Insights and Recommendations
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Business Problem Context
Context
Government mandate to digitize the TV content broadcast by Dec 2014 (Phase 3 & 4)
Opportunity - 108 Mn. Subscriber base shifting to digital
Technology differentiation of DTH players narrowing
Tata Sky
No. 2 player in DTH Industry
Intends to have a massive share in premium segment and fair share in mass market
segment
Problem
In view of the upcoming digitization opportunity, how to grow against competitors:
Cable TV service providers
Other players in DTH industry
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Approach
1. Secondary Research3 Cs, Product Features, Branding and
Marketing, Customer Experience
2. Primary ResearchInterviews with Company Personnel
Consumer Survey for Value Map
3. Frameworks
Customer Value Map, Kano, Endowment
Effect, Customer Touch Points
4. Inferences & Recommendations
Brainstorming, Validations and
recommendations
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Product Life Cycle & Stages
TV Households growing @ 4% CAGR
DTH subscribers growing @ 15% CAGR
Tata Sky subscriptions growing @ 11% CAGR
Growing Industry Growing Category Growing Product/Brand
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Tata Sky
Journey so far
Strategic position & direction
Our objective is to have a massive share of the high-end segment and a fair share of
the mass segment.Harit Nagpal, CEO, Tata Sky
"We will never sacrifice volume share completely for value share.Vikram Kaushik,Former CEO, Tata Sky
Connecting every television home
Empowering every television viewer
Revolutionizing home entertainment
Incorporated: 2004
Tata Sky Market Share: ~20%
Pay TV Market Share: ~7%
Tata Sky ARPU: INR 236.72
DTH category ARPU: INR 209.82
Gross Subscribers: 10.41 Mn.
Rural : Urban Mix: ~50:50
Vision:
Launched 1 Million Tata Sky+ Tata Sky HD Tata Sky +HD 10 Million
2006 2007 2008 2010 2011 2012 2013
TV Everywhere
67%
33%
Tata Sky Subscribers
SocioEconomicCategory A
SocioEconomicCategory B+
New Subscribers
Metro
Non-Metro> 70%
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Competition
Pay TV Subscribers (MPA, 2013)
DTH Market Share (MPA, 2013)
47
Million
95.7
Million
DTH Cable
Cable
+ Already has the last mile coverage to subscribers premises
+ Deliver services with a personal touch
+ Transmission not affected by weather conditions
+ Post-paid facility available for payment
- Reach to rural area is limited by Infrastructure availability
- Lack of interactive content
- Mobility is an issue if the subscriber changes city / location
Tata Sky
+ Superior customer service compared to competitors
+ Mobile based access and account management
+ Multiple re-charge options available
+ High quality interactive content
- Costlier packages as compared to competition
- Technological superiority of competitors (MPEG4)
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Customer Needs & Perception
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Customer Needs & Perception
Q = P
Q < P
Q > P Key Observations Quality Better (> 1.0)
Price Higher (>1.0)
Indifferent Customer (Q=P)
Marginally better than other DTH
Digital Cable perceived better
Quality Conscious
Clear Winner w.r.t. Cable
Better than DishTV
Marginally better than Airtel
Price Conscious
Marginally better than Airtel
DishTV & Cable perceived better
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Product Feature Analysis Kano Model
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Consumption Chain & CX
Consumptionchain
Awareness
Order/
Purchase
Delivery
ServiceRequest
Payment
Customer
Service
Marketing promotions,
Dedicated STB Channel
Website, Helpline,
Dealers
Tata Sky Kit, Installation
Technicians
Online, SMS,
Helpline
Voucher, IVR,
Online, ATM
Vernacular,
Website, Twitter
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Branding & Marketing
Technology
(Quality of hardware)
Features
(Interactive series, vernacular, etc.)
Services
(Reach, customer service, etc.)
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Incentives to Switch
High endowment for existing analog cable subscribers Make Tata Sky offering behaviorally compatible to analog cable subscribers
Target un-endowed (non cable subscribers in Phase 3 & 4)
10x improvement (Analog Cable vs Tata Sky)
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Key Insights & Recommendations
Reduce upfront STB costs with respect to cable
Increase number of HD channels availableCustomer Value Map
Improve basic feature set e.g. DVR on USB
Introduce excitement features e.g. vernacular
programming guide
Kano Model
Enhance usage experience by improving user interface
Enhance customer service by increasing self-helpavenues
Consumption Chainand Customer
Experience
Brand innovation & First to market capabilities Brand customer service as a differentiator
Branding andMarketing Analysis
Target the un-endowed by bundling with TV sales
Bring behavior compatibility with cable servicesEndowment effect
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Thank You
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