Tata Sky

TATA SKY

BACKGROUND • Tata Sky is a direct broadcast satellite television provider in India. • Tata Sky was incorporated in 2001, but launched services on 8 August 2006 • Tata Sky is a joint venture between the Tata Group, and 21st Century Fox. • Its primary competitors in satellite television and other DTH service providers are Airtel Digital TV, Dish TV, Sun Direct, Reliance Digital TV, DD Free Dish and Videocon D2H. • Tata Sky has partnered with Ericsson to launch the first VOD (Video on Demand) Services ever in India in 2012. • On 9 January 2015, Tata Sky became the first Indian DTH operator to offer 4K set-top-boxes to its consumers.

Industry Analysis • Tata Sky has turned around in the fiscal ended 31 March 2016, posting a net profit of Rs 80.08 crore on a higher revenue base. • Tata Sky’s total revenue climbed 20% to Rs 4,490.96 crore in FY16 compared to Rs 3,739.04 crore a year ago. Total revenue from operations grew to Rs 4,471.83 crore from Rs 3,723.04 crore. • Total expenses stood at Rs 3,384.61 crore, up 20% from Rs 2,812.30 crore in the prior year.

Market Share • The market share of Tata Sky was 21.52% of the total number of active DTH subscribers in the entire country.

7 P’s of marketing. 1. Product : The product in service marketing mix is intangible in nature. • • • • • • •

TATA Sky services TATA Sky Bangla Cinema TATA Sky Bollywood Premiere TATA Sky Acting Adda TATA Sky World series TATA Sky Kids cinema TATA Sky Classic Cinema

1. Place : Place in case of services determine where is the service product going to be located. 2. Promotions : Promotions have become a critical factor in the service marketing mix. 3. Pricing : Pricing in case of services is rather more difficult than in case of products. 4. People : People is one of the elements of service marketing mix.

STP of TATA Sky. • Segment : DTH Subscribed TV viewers, Broadband subscribers. • Target Group : Top and middle section of the pyramid. • Positioning : One-stop shop for all the television entertainment needs of customers.

SWOT Analysis 1) 2) 3) 4) 5) 6) 7) 8) 9)

Strengths Leverage on brand TATA and high brand recall Partnered with SKY Brand in the space of digital technology to bring a state-of-the-art satellite television service to India. Leader in introducing new packages and services. Rural penetration through ITC E - Chaupal and Godrej Aadhar Innovative product offering TATA Sky plus. Adopted 360 degree marketing campaign that encapsulates television, print, radio and outdoor digital platforms. Tie ups with Sony Pictures, Fox for content – Pay per view service for exclusive events. DVD Quality picture and CD Quality sound. 24*7 customer service support in multiple languages.

Weaknesses 1. Not having first mover advantage as Dish TV captured market share. 2. Dependency on broadcaster. 3. Cannot match free service provided by DD. 4. Customer service are usually busy and waiting period is usually very long. 5. High initial cost of DTH equipment.

Opportunities 1.Focus on segmentation and differentiated product offerings to expand its clients and spread its reach outside Tier-I cities across the country. 2. Expand distribution network through exclusive stores 3. Growing demand for quality of service in the form of DTH over Cable. 4. Increase in number of TVs sold. 5. Penetrate market by competitively priced services, superior technologies, interactive services and customer support. 6. Provide option of installments and other promotional schemes to the new user.

Threats 1. Interoperability regulations. 2. Cables set top boxes provide easy switching due to negligible switching costs. 3. Increasing competition. 4. Dependency on broadcasters for their channel content and thus increase in cost. 5. No Exclusivity in Content and Rule of ‘Must Carry’. 6. Cap on foreign investment.

Competitive Analysis