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Industry Analysis of DTH

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INTRODUCTION

MARKETING

Goods and services do not move automatically from producers to the users.
There is a definite mechanism that brings about exchange of goods and
services against money. Marketing is the belt that connects two major
wheels of any economy namely producers and consumers. It is the creation
of utilities as goods and services get value addition by the time they reach
the consumers.

“Marketing is the social process which

Individuals and organizations obtain what

they need and want through creating and

exchanging value with others.”

---- Kotler and Amstrong

SERVICE

Services are activities or benefits that one party can offer to another that are
essentially Intangible and do not result in the ownership of anything.
SERVICE MARKETING

It is a specialized branch of marketing. Services marketing emerged as a


separate field of study in the early,1980’s,characteristics of services required
different strategies compared with the marketing of physical products .

Services marketing typically refers to both Business to Consumer


[B2C] ,and Business to Business [B2B] services such as telecommunication
services, financial services, all type of Hospitality, tourism and
entertainment services ,car rental services, healthcare services,professional
services and trade services.

IMPORTANCE:

Given the intangibility of services marketing team becomes a particularly


challenging and yetextremely important task. Due to increasing homogeneity
in product offering, the attendantservices provided are emerging as a key
differentiator in the mind of the consumers.

IMPORTANCE OF RELATIONSHIPS

Relationships are a key factor when it comes to the marketing of services


.Since, the products areIntangible, a large part of the customers buying
decisions depends on the degree to which heTrusts the seller. Hence, the
need to listen to the needs of the customer and fulfill them through.The
appropriate service offering and build a long lasting relationship which
would lead to repeatSales and positive word of mouth.

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SCOPE OF SERVICE MARKETING
1. Services are intangible: Service, it is a deed performance and an effort
.There is nothing Tangible to show for it where a service is sold. One can say
that services are consumed but not Possessed.

Example: Banking, Baby sitting etc


2. Services are heterogeneous: The services are non-standardized and
uniform in very clear terms. All the services cannot give the identical service
in terms of quality satisfaction or benefits.
Example: Teachers, Lawyers, Bankers etc
3. Services are inseparable: With customer participation in the process,
services are typically Produced and consumed at a time.

Example: A surgeon is able to operate upon a patient, who is a ready patient.

4. Services are perishable: The utility of majority of services is short-


lived .As a result ,they cannot be produced a head of time and stocked for
the periods of peak loads of demand.

Example: Credit not utilized.

5. Services are susceptible to change in demand: The market for services


has wider fluctuations. These fluctuations in demand might be seasonal,
monthly, weekly, daily or hourly.

Example: Tourism has seasonal demand.

6. Services are subject to special pricing tactics: The distinct


characteristics of perishability, Fluctuations in demand and in separability in
services involve significant implications in pricing. Prices of other services
are determined on the basis of demand and competition .Variable pricing
policy is also restored to in services.

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The history of Indian television dates back to the launch of doordarshan, India’s national
TV network in 1959. The transmission was in black & white. The 9 th Asian games which
were held in 1982 in the country’s capital New Delhi heralded the mark of color TV
broadcasting in India. In 1991, Indian economy was liberalized from the License Raj and
major initiatives like inviting foreign direct investments, deregulation of domestic
business emerged. This lead to the in flux of foreign channels like Star TV and creation of
domestic satellite channels like Sun TV and Zee TV. This virtually destroyed the
monopoly held by doordarshan. In 1992, the cable TV industry started which lead to
revolution.
Every city in the India had a complex web of co-axial cables running through the streets
with a new breed of entrepreneurs called as cablewallahs or Local Cable Operators
(LCO) taking in charge of distribution. The film industry was shocked by this sudden
growth and there were even organized protests for calling off the Cable TV industry.
There were simply too many cable operators in the country and the channels had a
difficult time in getting its returns as the existing system was a non-addressable and the
operators could simply give a reduced number of subscribers to amass profit. This lead to
the emergency of a new breed of firms called as Multi System Operators (MSO) who had
heavy financial muscles to make capital investments. . The MSO industry became highly
monopolistic which warrants government participation to ensure competition.
In 2007, TRAI proposed a new initiative by name “Head end-In-The-Sky (HITS)” Model
as an alternative to the existing cable distribution. Instead of the MSO’s providing the
bundle, there will be a single HITS operator who will prepare the bundle of channels and
beam it to the Headed in the satellite. The LCO’s can receive this digitalized bundle and
deliver to the individual homes. With HITS, country wide implementation of CAS
becomes instantaneous and cost-effective. This benefits both the broadcasters and the
customers by ensuring Addressability, Better quality of service and increased number of
channels. Another emerging trend is the IPTV which is yet to be regulated and one can
expect lot of action in this sector.

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According to a report on Direct to home (DTH) service, it predicts that India would
overtake Japan as Asia’s largest DTH by 2010 and be the Asia’s leading cable market by
2010 and the most profitable pay-TV market by 20015.

List of players in the industry

 Dish TV of ZEE group.


 Tata Sky joined venture between Tata and Rupert Murdoch’s Sky TV.
 Sun direct of Sun Network.
 BIG TV of Reliance Anil Dhirubhai Ambani group.
 Airtel digital TV of Bharati telemedia
 Videocon d2h of videocon industries

Categorization of players in the industry

Government owned player: DD Direct+.

Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon d2h

Dish TV

Dish TV is the first private DTH satellite television provider in India, using MPEG-
2 digital compression technology, transmitting using NSS Satellite at 95.0. Dish TV's
managing director and Head of Business is Jawahar Goel who is also the promoter of
Essel Group and is also the President of Indian Broadcasting Foundation and Mr.
Subhash Chandra is the Chairman of Dish TV.

Tata Sky

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Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using INSAT 4A at 83.0°. Tata sky is incorporated
in 2004; Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH endeavors
to offer Indian viewers a world-class television viewing experience through its satellite
television service. Vikram Kaushik is present CEO of Tata Sky Ltd. The TATA Group is
one of India's largest and most respected business conglomerates. It comprises 93
operating companies in seven business sectors and diversified group: information systems
and communications, engineering, materials, services, energy, consumer products and
chemicals. The TATA Group has operations in more than 40 countries across six
continents and its companies export products and services to 140 nations..

Sun Direct

Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital
compression technology, transmitting using INSAT 4B at 93.5°E. It is the country's first
MPEG 4 technology DTH service provider. Sun Direct is a DTH service in India
headquartered in Chennai, Tamil Nadu. Sun Direct TV was registered in February 16,
2005. However, the failed launch of INSAT 4C resulted in a lack of transponders,
delaying the launch. The service was finally launched on December 2007 after
availability of transponders from INSAT 4CR. Because of the lowest pricing of any DTH
in India Sun Direct spread rapidly all over the country

BIG TV

Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai,
using MPEG-4 digital compression technology, transmitting using MEASAT-3 91.5°east.
It is the 5th DTH service launched in India. Reliance BIG TV limited is a part of
Reliance Communications Ltd., a subsidiary of Reliance Anil Dhirubhai Ambani Group
founded by the Late Dhirubhai Ambani, the Indian business tycoon and owned by his son
Anil Ambani. BIG TV started operations from 19 August 2008 with the slogan "TV ho
Tho BIG Ho" ("If you have a TV, make it BIG.

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Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing the
consumer with quality and enriched home entertainment service at value-driven pricing.
Reliance BIG TV's launch in August was probably the biggest roll-out in home
entertainment ever and deployed the most advanced MPEG4 technology that enabled
them to deliver best quality digital audio-video to the consumer. It also got prepared for
the future when Hi-Definition TV will be launched in India because only MPEG4
technology can support HD TV and not MPEG2 which is used by the earlier entrants in
the DTH industry.
offer

Airtel digital TV

Bharti Airtel Limited is the flagship company of Bharti Enterprises and is India’s largest
integrated and the first private telecom services provider with a footprint in all the 23
telecom circles. As India's leading telecommunications company, the Airtel brand has
played the role of a major catalyst in India's reforms, contributing to its economic
resurgence. Airtel since its inception has been at the forefront of technology and has
steered the course of the telecom sector in the country with its world class products and
services.

Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It uses MPEG-4
digital compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E
Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come
Home to the Magic. Since then it has launched 2 other campaigns: ‘Stars come home’
(March 2009) and ‘DTH Picture Clarity (August 2009) has increased its channel base to
183+ channels. Airtel digital TV is now amongst the fastest growing DTH brands in the
country and is available across 5000+ towns in India. It has also been ranked as the best
DTH service by “Living Digital” magazine.
Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright
future in Indian market as the people are getting more attracted towards DTH because of
its quality and affordability.

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Videocon d2h

Videocon d2h is a DTH satellite television provider in India based in Mumbai, using
MPEG-4 with DVB S2 digital compression technology
Videocon d2h launched May 1, 2009. it came with a very good strategy for selling both
of its electronic products like TV’s DVD’s along with the new set top box. This is
offering direct to TV with out any set top box also. Only the antenna is enough, it also
came with DVD which is connected directly to the TV or antenna is connected to DVD
which gives a best quality of out put.

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COMPANY PROFILE

LOGO OF AIRTEL: CEO OF AIRTEL:GOPAL VITTAL

The name of the company is Bharti mobinet limited. The


company is owned and governed by Bharti group of companies. It was
several of companies like Bharti health care, Bharti global, Bharti
foundation, Bharti enterprises, and Bharti ventures limited. Bharti Telnet,
Bharti Telescopic, Bharti Broadband etc. The Chairman and Managing
Director of Bharti group is Mr. Sunil Bharti Mittal.In 1996, Sky cell was
launched and in 2000, Airtel took over sky cell. Airtel has its presence in 15
circles in India, which is worth of Rs.9000 cores. It has 866 towers in A.P,
each costs 1 Crore rupees and made a proposal for doubling that in near
future, which covers 65Kms.
Airtel has the largest customer base which crossed 2 lakhs when
compared to BSNL, which has 1, 55,000 customers, and HUTCH of less
than 50,000 customers.Airtel has 28 connects in A.P, where Reach Tele

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Communications stands arouse union. It provides various services like bill
payments, customer relations for problems solving, activations and is also
dealing with sub-dealers.

An overview
Bharti Enterprises has been at the forefront of technology and has
eased telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit, ranging from being the first
Mobile service in Delhi, first private basic telephone service provider in the
country, first Indian company to provide comprehensive telecom service
outside India in Seychelles and first private sector service provide to launch
National Long Distance Services in India. As of February 28, 2003, Bharti
had approximately 3.34 million total customers nearly 2.99 million mobile
and 354,000 fixed line custom Its services sector businesses include mobile
operations in Andhra Pradesh, Chennai, Delhi , Haryana, Himachal Pradesh,
Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle,
Mumbai, Punjab, Tamilnadu and Uttar Pradesh (west) circle. In addition, it
also has a fixed-line Operations in the states of Madhya Pradesh and
Chhattisgarh, Haryana, Delhi, Karnataka, Tamil Nadu and nationwide
broadband and distance networks.
Bharti has recently launched national long distance services by
offering data transmission service and voice transmission service for calls
originating and terminating on most of Indian's mobile networks.
The company is also implementing a submarine cable project
connecting Chennai-Singapore for providing international brand width.

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Bharti Enterprises also manufactures and exports telephone terminals and
phones. Apart from being the largest manufacturer of telephone instrument,
it is also the first telecom company to export its products to the USA.

About Bharti:

Bharti Tele-ventures is Indian's leading private sector providing of


telecommunications service based on an aggregate of approximately 3.34
million customers as of February 28, 2003 consisting of approximately 2.99
million mobile and 3,54,000 fixed-line customers. The company through its
subsidiaries also provides fixed-line, VSAT, Internet service and network
solutions. The company has also commenced offering national and
international long distance services.
The company seeks to capitalize on the growth opportunities that it
believes are available in the Indian market and consolidate its position to be
an integrated telecommunications service provider, with a focus on mobile
service.

The company today offers mobile service in fifteen out of 22circles in


India. Bharti Tele-venture was the first private sector operator to
provide fixed-line service in India when it commenced providing
services in the Madhya Pradesh Chhattisgarh circle in June
1998.BTVL recently launched its fixed-line service in the license
areas Haryana, Delhi, Tamilnadu and Karnataka and thus because
the first private sector service provider to provide fixed-line services in
all its licensed areas.Bharti Tele-Ventures has always believed in

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creating storing partnerships with its joint venture partners. Today,
SingTel and Warburg Pincus are its leading the other partners
includes leading international financial investments such as
International Finance Corporation, Asian Infrastructure Fund Group
and New York Life Insurance.
VISION:

 “To be globally admired for telecom services that delight customers”.

 most admired brand in India- By 2010

o Loved by more customers

o Targeted by top talent

o Benchmarked by more business

MISSION:

We will meet global standards for telecom services that delight customers
through:

 Customer Service Focus


 Empowered Employees
 Innovative Services
 Cost Efficiency

BRAND AMBASSDOR: SASAHA

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