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PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE FOR THE ACADEMIC YEAR 2012-2013
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DECLARATION
I, MR. Parth Sheth hereby declare that this project report is the record of authentic work carried out by me and has not been submitted to any other University or Institute for the award of any degree / diploma etc.
CERTIFICATE
This is to certify that MR. Parth sheth of Pillai College of Arts, Commerce and Science has successfully completed the project work titled CONSUMER AWARENESS ON TATA SKY. in partial fulfillment of requirement for the completion of BMS as prescribed by the University of Mumbai. He has worked under my guidance.
ACKNOWLEDGEMENT
For the successful attempt or completion of the project support at of any level cannot I be am satisfactorily taking this completed without the contribution, guidance and learned people. opportunity to express my immense Gratitude to Mrs. MMMMM for her able guidance, constant support and motivation that has encouraged us to come up with this project.
I am also thankful to all other teachers and students who have rendered their whole hearted support at all times for the successful completion of this project.
Parth Sheth .
INDEX
Chapter No
1 2 3 4 5 6
Topics
Introduction Company Profile Research Methodology Data collection, Analysis & interpretation Conclusion Suggestions & Recommendations Annexure Questionnaire Bibliography & wibiliography
Page NO
8 18 47 52 65 66 69 69 73
EXECUTIVE SUMMARY
This project i.e. Consumer Awareness on TATA SKY is purely focused on how tough awareness is going in the current market. Nowadays, more and more companies are coming up with their new DTH services to entertain the people in their life. The introduction of the industry includes some vital detail about the history of DTH service. Soon after the beginning of the DTH service, in the opening only DD direct plus and Dish TV was successively doing their business but at the moment TATA SKY is also second-hand as DTH services . The introduction of the company includes the details of the TATA SKY, its milestones, its new schemes and services etc. The objective of the project report is to conduct a survey to find out the awareness of the consumer or people towards Tata Sky. I used the simple random sampling research design for the project as I tried to know the awareness of consumers while using the DTH service as their entertainment. I have collected primary data by filling questionnaire which have analyzed; tabulated and meaningful conclusion are drawn out of it. The sample size used for conducting the field survey was 100 respondents. I will try my best in preparing this project report, still there may be some obstacles that comes in the way and stop me to 100% accurate result. Analysis and findings includes tables and graphs which were followed by meaningful interpretation. Conclusion of the project includes the expression expressed by various respondents from whom the data are collected.
Chapter No - 1 Introduction
With the Indian economy booming at a GDP growth rate of 8.7%, there is sense of growth prevailing everywhere. The average Indians disposable income and purchasing power has risen to never before levels. The Indian Entertainment & Media industry is also not far behind. It is currently estimated at a worth of Rs. 450 billion with a CAGR of 18% over next 5 years. Terms which were alien to Indians like DTH, Digital Cable, and IPTV are suddenly finding presence of countrys journals. India would overtake Japan as Asias largest DTH by next year and be Asias leading cable market by 2010 and the most-profitable Pay-TV market by 2015. This growth presents a lot of interesting scenarios.
With the 'CAS' issue not yet resolved, there's 'DTH' coming up to muddle things up for you and me. Doordarshan will launch its Direct-To-Home telecast from April 1. Broadcasters like Star and Zee are pushing too. So what is this DTH all about? How, if at all, does it help the customer? Is it good? Let's show some detail for DTH service. hard for DTH services in India
What is DTH? DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home. DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite programmes and they then distribute them to individual homes. How does DTH work? DTH network consists of a broadcasting centre, satellites, encoders, multiplexers, modulators and DTH receivers. DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and settop boxes to decode and view numerous channels. On the user's end, receiving dishes can be as small as 45 cm in diameter. DTH is an encrypted transmission that travels to the consumer directly through a satellite. DTH transmission is received directly by the consumer at his end through the small dish antenna. A set-top box, unlike the regular cable connection, decodes the encrypted transmission. Tata Sky uplinks channels to its satellite that transmits digital signals directly to a minidish fixed on the
subscriber's balcony, terrace or outside the window. The minidish relays the signals to Digicomp that decrypts and
relays them to the television. A large building with multiple inhabitants can use a single minidish with individual digicomp at each home. The history of DTH in India DTH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. In 1997, the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India. Finally in 2000, DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the number of companies that can apply for the DTH license.
How does DTH really differ from cable TV? The way DTH reaches a consumer's home is different from the way cable TV does. In DTH, TV channels would be transmitted from the satellite to a small dish antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster directly connects to the user. The middlemen like local cable operators are not there in the picture. DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. As we explained above, in DTH signals directly come from the satellite to your DTH dish. Also, with DTH, a user can scan nearly 700 channels!
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Why DTH is is being discussed now? Doordarshan plans to launch its DTH telecast from April 1. The government has said it will provide 10,000 dishes free across eight states for increased community viewing of the DTH service. The government is estimated to be investing over Rs 300 crore (Rs 3 billion) in this DTH venture. There are four serious contenders for DTH services in India: Doordarshan, Star, Zee, and Data Access.
Is DTH superior to cable TV? Yes. DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc are pushing for it.
So why are broadcasters pushing for DTH? In DTH, the payments will be made directly by the subscriber to the satellite company offering the service. A big problem that broadcasters face in India is the issue of under-reporting of subscribers by cable operators. Consider the cable operators pyramid. Right at the top is the broadcaster. Next comes the Multi Service Cable Operator (MSOs) like Siticable, In Cable, etc. Below them are the Access Cable Operators (ACOs) or your local cable guy who actually lays the wires to your house.
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The local cable operators or the ACOs then allegedly under-report the number of subscribers they have bagged because they have to pay the MSOs something like Rs 30-45 per household. Showing a lesser number of households benefits ACOs. With no way to actually cross check, the MSOs and the broadcasters lose a lot. Broadcasters do not earn much in subscription fees and are mostly dependent on advertisement revenue to cover their costs, which is not sustainable and does not offer high growth in revenues for broadcasters. The way out of this is to use a set-top box so that it will be clear how many households are actually using cable or going for DTH where broadcasters directly connect to consumers and can actually grow revenues with a growth in the subscriber base.
Why do Doordarshan, Zee, Star think DTH will work in India? Today, broadcasters believe that the market is ripe for DTH. The prices of the dish and the set-top box have come down significantly. Overall investments required in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs. The major thing that DTH operators are betting on is that the service is coming at a time when the government is pushing for CAS (conditional access system), which will make cable television more expensive, narrowing the tariff gap between DTH and cable.
Will DTH be cheaper than cable or more expensive? DTH will be definitely more expensive than cable as it exists today. A set-top box is a must for DTH. Earlier, when CAS made set-top box mandatory for households, the costs between DTH and cable would not have been too wide. But CAS on the backburner now -- which means no set-top box (a must for DTH), the price gap between DTH and cable, will be wide.
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In Oct 2002, Siticable, which is owned by Zee, said that the cost of the installation equipment, which includes the receiver dish and the set-top box, would be priced at around Rs 3,900. Siticable is looking to rope in 1 million subscribers in 15 months. Other estimates say that digital cable set-top box may cost Rs 4,000, a DTH decoder dish is unlikely to cost less than Rs 7,000. DTH's minimum subscription could be priced around Rs 500 per month. Some reports say that an entry level DTH STB will cost about Rs 7,000 (including taxes and installation cost at consumers end). A more advanced STB with value added features like PVR (Personal Video Recorder), PSTN connectivity, Gamming console, channel management system, etc. may cost as much as Rs 15,000.
So, what's the buzz? Will DTH finally be the one that rules? The cable system is well entrenched in India and is showing quite rapid growth. If DTH had come to India in 1996-97 (like Star had originally attempted), then it could have made a significant breakthrough. Europe is an example of this. DTH developed there before cable and now controls nearly 80 per cent of the total satellite television subscriber base. But in US, cable rules because it came before DTH. DTH will definitely cut into the existing cable user base. It will make the local cable operator less important and take business away from him. It will give consumers greater choice. But it is likely to be an up market premium product and most middle class households will stick to cable.
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Current Players The current players in DTH industry are 1. DD-Direct + of prasar bharti, comprising of 33 FTA channels and 12 all India radio channels 2. Dish TV of ZEE groups 3. Tata Sky the joint venture between Tata and Murdochs Sky TV
A recent survey done using the Television Audience Measurement (TAM) puts DDDirect+ with 4.5 million homes at top with Dish TV having 2.1 million homes and Tata Sky capturing 1 million home.
13%
28%
59%
DD Direct+
Dish TV
Tata Sky
The following companies have either the license/letter of intent or applied for the license to operate DTH services.
1. Sun Direct of Sun Network 2. Reliance Blue Magic from Reliance ADAG 3. Bharti Telemedia 4. Videocon Industries
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Some of the features of DTH service are as following: DTH offers better quality picture than Cable TV. DTH can reach remote areas where terrestrial transmission and cable TV have failed to penetrate. DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. In DTH, the payments will be made directly by the subscriber to the satellite company offering the service. In DTH, the payments will be made directly by the subscriber to the satellite company offering the service. India currently has 6 major DTH service providers and a total of over 5 million subscriber households. I. II. III. IV. Tata group and Star network owned Tata Sky Zee group owned Dish TV Sun network owned SUNDIRECT DTH. Reliance owned BIG TV
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DTH Market
The DTH industry in India can be categorized as an OLIGOPOLY. The HHI index and the market share of firms indicate the amount of competition among them. OLIGOPOLY: Oligopoly is a Greek word which means for few entities with the right to sell. It is a market structure in which the market or the industry is dominated by a small number of large players who are called oligopolist. In this type of market the degree of market concentration is very high, with barriers to entry in the market. Important features of Oligopoly Market: Small number of large players dominates the market. The oligopolists produce branded products. There exists interdependence between firms. Each oligopolist is aware of the actions of the others. There are significant entry barriers in this market.
Entry barriers in Indian DTH Industry The Indian DTH industry is a high tech industry requiring huge capital investment. The initial cost required for setting up the company is very high as it requires transponders and other hi tech equipment. Following entry barriers exist in the DTH Industry. DTH Industry is a high volume low margin industry: Any new entrant in the DTH industry has to make sure that it builds significant customer base as soon as possible to ensure its profits. High set up cost of satellite, transponder and other high techequipment: the huge initial cost of setting up the business acts as a huge entry barrier for the new entrants. High Cost of the set top boxes Long gestation period and high break even period Multilingual & Multicultural differences in India. High Cost of the set top boxes.
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CHALLENGES
The challenges faced by the DTH Industry are: High License Fee Organization of taxation regime , particularly state levied entertainment tax Technology Neutrality as a policy needs to be consistently followed by the Government
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Low cost packages to increase penetration - Tata Sky has recently introduced a Rs 99-a-month low-value pack for 53 channels to increase penetration of Tata Sky in smaller towns of the country. Tata Sky has also gone a step further and enhance the service delivery by introducing an electronic program guide (EPG) in Hindi especially for people in small towns who are more comfortable with Hindi. This is the new quality standard for Indian pay TV against which other companies as well as future entrants will be judged. Tata sky, in order to increase its rural penetration, has tied up with ITC eChoupal and Godrej Aadhar. For Effective distribution Tata Sky has tied up with ITC international Business Division. With the adoption of 360 degree marketing campaign which includes television, print, outdoor, radio, on ground activities, Tata sky has been able to pursue marketing on a digital platform.
Tata Sky's satellite service brings home a whole new entertainment experience with its direct-to-home (DTH) television service. Subscribers can now choose from a variety of popular and new channels and enjoy interactive features. Some of the highlights of the service are: Entertainment and Media channels Tata Sky offers subscribers popular channels such as STAR group channels, Sony, Discovery, Disney, MTV, NDTV, ESPN STAR Sports, National Geographic, Eenadu, TV Today, Asianet and many more. Digital quality service The service provides viewers with DVD-quality picture and CD-quality sound enhancing their viewing experience. Television goes interactive Ever thought of playing interactive games on your television? Or getting weekly channel schedules right on the TV screen with synopses of programmes? Interactive features on Tata Sky make all this and more possible. Features like Active STAR News, Active Newsroom and Active Khabar allow viewing multiple channels on a single screen. For kids there is a special Active Wiz kids learning service. With parental control functions it's also easy to lock channels with special PIN numbers. Customer service and infrastructure support Tata Sky has set up a pan-India distribution network of popular consumer electronic stores and mobile phone outlets that retail its hardware and prepaid
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recharge vouchers. The company has also tied up with LG, ITC International Business Divisionand Indian Oil Corporation to support its distribution network.
Vision
Tata Sky plans to launch its DTH service with top-of-the-line infrastructure and revolutionize Indian entertainment through its superior DVD quality picture and CD quality sound. The service envisions to:
Connect every television home Empower every television viewer Revolutionize home entertainment
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Achievement
Within a span of one year, Tata Sky has: Established itself as the fastest growing Pay TV platform in India. Established Tata Sky as a trusted and premium brand: achieved 87% brand awareness within the first six months of launch. Expanded its product offering from 55 television channels at the time of launch to over 120 channels and interactive services (Active Games, Active Sports, Active STAR News, Active Khabar, Active Newsroom and Active Wiz kids). Launched Active Wiz kids, the first-of-its-kind education based interactive service in the world that teaches children through learning games. Set up state-of-the-art digital infrastructure including an uplink centre in Gurgaon and three high-end 24x7 call centres in Hyderabad, Mohali and Pune supporting 11 languages (English, Hindi, Marathi, Gujarati, Punjabi, Malayalam, Kannada, Tamil, Telegu, Oriya and Bengali). Expanded its distribution network from 300 towns and 10,000 dealers at the Time of launch to 4,500 towns and 30,000 dealers across the country and operating through 245 exclusive distributors. Simultaneously trained 5000 people in a span of 6 months across 180 cities (the largest corporate training initiative in India). Become the gold standard in customer service: achieved globally best-in-class (durable and telecom industries) customer satisfaction scores. Introduced first-time ever interactive television promotions across popular television channels including Sony (Indian Idol highlights on-demand), STAR.
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Milestone
2005 TATA - STAR DTH venture signs lease agreement with ISRO (Indian Space research organization) TATA - STAR DTH Venture Receives Ministry's Clearance
2006 Tata Sky selects NDS systems to create India's most advanced digital and interactive DTH service Tata Sky launches ACTVE WIZKIDS - a unique edutainment service Tata Sky launches pay-per-view service - SHOWCASE Tata Sky Launches ACTVE SPORTS on ESPN STAR Sports Television finally becomes interactive with Tata Sky Tata Sky Satellite Television Service Launches Across the Country Zee-Turner channels now on Tata Sky 2007 Tata Sky introduces three new interactive services: Active Darsan, Active Learning and Active Stories Tata Sky expands offering to 140 channels Tata Sky crosses 1 million marks in record time Unparalleled World Cup cricket viewing experience on Tata Sky Tata Sky launches three new channel packages Watch ICC World Cup on Tata Sky with Hrithik Roshan Tata Sky offers 5 months of free viewing
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SWOT Analysis
Strengths
Leveraging on brand TATA and High brand recall Technological expertise with Newscorps DTH arm Sky Superior Picture quality Leads in introducing new packages & Services Customer service Rural penetration through ITC E-Choupal and Godrej o Aadhar Interactive channels and program guides Innovative Product offering Tata Sky Plus
o 2. Weaknesses
Second Mover after Dish TV who captured Market Share Cannot match free service like DD Currently Does not offer free Set Top Box like Dish TV Litigation due to issues related to sports channels which it lost Dependency on broadcaster and had issues with Sun TV
Opportunities
Larger disposable incomes with India Tapping niche markets with Better service and Product offering Expansion of distribution network through exclusive store Interactive advertising Tie up of with Samsung Increase in number of TVs sold
6. Increase in the geographical boundaries with Rural Market untapped Growing demand for quality of service in the form of DTH over Cable CAS being made Compulsory would encourage switch
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Product Matrix
TATA Skys target customers include various strata of the society, with different service packages available to each one. To improve its performance in the competitive DTH market, TATA Sky management should assess its brand positioning among its target segment by establishing a distinctive image for the company compared to competing companies. But these initiatives presents challenges, which TATA Sky is currently facing squeezed by rising costs, sporadic nature of demand, and relentless downward pricing pressure due to competition. Adding to it, slackening of demand, and higher interest rates are not welcome signs for it. With this in mind, TATA Sky should try to be rapid-paced and highly competitive. To counter these challenges and still be profitable, we have tried to suggest various strategies based on what will suit demands in the Indian market and its consumer behaviour to increase TATA Sky market share.
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Current situation
Tata Sky crossed the two million connections mark in a period of 20 months, thus retaining its position as the fastest growing direct-to-home service provider across the globe. The marketing budget that TATA Sky begun with was 15% of sales. This included around 5% for advertisements, 7% discounts and promotions and 1% sponsorships. Currently TATA Sky has roped in Aamir Khan as its brand ambassador. Aamir Khan would feature in all TATA Sky brand and product communication, including advertisements in TV, print and radio. Further, tie ups with ITC E-Choupal and Godrej Aadhar give it wider rural reach. Also for its distribution, TATA Sky has a tie up with ITC International Business Division. The 24X7 guru.com has joined hands with TATA Sky to provide content for Active Learning. Tata Sky has adopted a 360 degree marketing campaign approach that encapsulates television, print, outdoor and radio along with on-ground activities and marketing on the digital platform. Tata Sky plans tie-ups with Sony Pictures, Fox for content- Pay per View service for exclusive events.
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Parental Control Search and Scan Banner Guide (including Hindi Display) Customer Service- 24 x 7 help. Support in 11 languages
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Factors Affecting Consumer buying Behaviors : Price: Tata Sky has offered competitive pricing but has been on the higher end and its
due to promotional campaigns it has added in incentives leading to increase in customer base. In search of newer audiences in smaller towns, DTH operator Tata Sky is introducing a new Rs 99 package Super Hit Pack
Customer Services: Tata sky offers an excellent website and dedicated customer
line. They have the concept of registered mobile number providing easy communication. But their Customer service lines are always busy and the waiting period is usually very long. This may be an irritant for existing customers.
Program Choices: After litigations, Tata sky is able to offer huge bouquet of
channels but it is still less compared to the Cable TV. They should ensure extensive program choices to induce switching from Cable to DTH
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Tata Sky as a product has evolved from the time to inception. Further to enhance the product, new services and technologies can be imbibed like:
Common Dish per house for Multiple Television sets Combined Product with Television - Rural Areas , especially and Niche Segment Targeting if Combined with LCDs Connectivity with other digital Monitors like Laptops for Commercial Usage Guide can be displayed in Multiple Regional Languages Voice over in Multiple Languages (Currently limited availability in for some programs) Interactive Video Games (with consol) Inclusion of Radio Reception. Development of Visual Radio service. Variety in Movie Listing with Bollywood, Hollywood and Regional Channels Special channels for Songs Request like Jukebox could be launched Stock Market related interactive service on Active
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Price Competition has increased may fold with completion providing freebies and slashing prices. The following price related strategies could be adopted, which may lead to a short term loss but a medium term break even and profit: Free Set Top: Following the line of Dish TV, Set top Boxes can be given free
while ensuring lock in by providing base pack free for limited time duration, thus inducing update to next level.
Lock in of 1 year: Ensure long term lock ins by providing incentives for pre payment of long term charges. Continue with current strategy of providing 2 months free on payment of 10 months services. Multiple Connections: Provide discounts for consumers buying second Tata
Sky Connection (up to 50% off)
Regional Disparity: Provide free regional packs in local areas to ensure switch
from Cable TV to DTH service, i.e. provide free south Jumbo pack for customers in all Southern States.
Community Dish: Provide Incentives in the form of Free Months charges for
first 3-6 months and reduce the Installation charges per flat.
Postpaid: Some clients depending upon few background check criteria can be
given Billing service i.e. Payment at end of Month
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Place
States
Maharashtra Gujurat Karnataka Uttar Pradesh Tamil Nadu Punjab Orrisa West Bengal Kerala Andra Pradesh Rajastan Assam Madhya Pradesh Others Total
Share (%)
12.1 10.5 7.2 6.9 6.6 6.4 5.3 4.7 4.6 4.6 4.5 4.0 3.8 18.8 100
Clearly, there is a lot of scope of increase in the number of customers across all the states. Looking at the current distribution system that Tata Sky has adopted
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Including the local cable operators as distributors would be an extremely useful way of reaching out to the target market:
Staff of cable operators be made the distributors for Tata Sky (familiarity with people) All distributors be given a status of Tata Sky employees Attractive options be given to them to become distributors
Another focus could be the rural market. A snapshot of the rural market:
199 million total household in India 119 million (60% of total house holds) TV households 50 million are having Cable 55 million TV sets in rural area Rural TV households growing by 3-4 million each year. Only 2-3 % of rural household have access to Cable Growing focus towards more satellite channels
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MARKET SEGMENTATION
Geographic segmentation :
In terms of geographical location, North India and Western India together contribute over 8 million DTH subscribers, while the southern market contributes 3 million. The states of Maharashtra, Goa, Punjab, Uttar Pradesh, and Rajasthan are the leaders in DTH subscription, contributing over 6.5 million DTH connections to the overall base.
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INCOME:
DTH service provider gives various recharge options to consumer according to the income like silver pack, golden pack, diamond pack etc.
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Doordarshan is worlds largest Terrestrial broadcaster with over 1400 transmitters and covering 88% of India geographical area. They offer Digital service in collaboration with BBC resources. This wide reach and low cost approach are offset by its lack of attractive content.
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regulations (not yet enforced) it is a considerable threat due to its newlevel of interactivity.
DD offers free service but has a very small bouquet of channels. Dish TV got first movers advantage and has a highest market share in the market. The new players have very big brand names and have started with extensive publicity. There is also competition with respect to acquiring content. There are also regional discrepancies.
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Threat of New Entrant LOW DTH market is already crowded with 7 players
Bargaining power of Buyers HIGH Lots of opinion & substitutes Price sensitive buyer Inter Firm Rivalry VERY HIGH Price Wars Litigations
Bargaining power of Suppliers VERY HIGH Transponders Very High CPE Suppliers Low Content Very Low
Threat of Substitutes VERY HIGH Cable TV Very High IPTV High Terrestial - Low
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PRODUCT DIFFERENTIATION
Tata Sky launches itself as a DTH services requiring a Dish, A set top box and network access card per television.
Tata Sky as a product provides to its customers a large bouquet of channels at different pricing packages. These packages are formed according to ensure user convenience. Customers can select any of the various attractive package of channels available. Thus Tata Sky has all features to compete well with the existing players in the market. However Tata sky recently launched a new variant called Tata Sky +. This product contained some additional features over the original Tata Sky. Tata Sky+ is a premium set-top box with a personal video recorder that allows you to record up to 45 hours of live TV. Tata Sky+ gives you the power to record one program while watching another, pause a live telecast and even rewind a TV program that you are watching. Thus Tata sky gained an edge over its customers by adapting Product Differentiation. To protect its existing customer base using Tata Sky, it also introduced a special offer of up gradation to the premium product at reasonable cost. For its new customer the cost of Tata Sky Plus is given as below:
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I.
Primary Objective
The main objective of this project is making the consumer aware of His/Her rights. To understand penetration of various DTH and cable operators in Kalwa & Thane
II.
Secondary Objectives
To understand preferences of TV Viewers of Kalwa & Thane regarding DTH and Cable Services To understand purchase criteria of customers for selecting DTH or Cable Services To understand competition between various players To Find Out Opportunity & Threats In Indian DTH Industry.
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Time & Space boundaries:In this project, the time period is 1st January, 2008 to 5th march, 2008. The study is to be carried out part timely.
Descriptive research study is undertaken when the researcher wants to know the characteristics of certain groups; gender; education level; income; occupation etc.
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Design; it means a type of conclusive research that has its major objective descriptive of something. In this Descriptive research, I use longitudinal research to Study my project, as I m collect one time information from the unknown sample.
To collect information through the survey method, I had to select the tool through which I would gather information one choose the questionnaire. I am using survey method as the data collection form. The data were collected through survey method by personal interview.
PERSONAL SURVEY
I am using this survey because of its suitability to my project, personal survey is suitable to my research and I will get an opportunity to meet consumer face to face.
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Types of question:
I have used open-ended, Rating, Dichotomous (yes/no), Single choice, Scaling and multiple choice question in questionnaire
Phrasing question:
I have used simple language while formulation questionnaire so that the respondents do not confused.
Order of question:
The simple questions were put in the starting to make the respondent familiar with the subject and to gain his interest to fill up the questionnaire.
Layout of questionnaire:
I have prepared the questionnaire which can be read and interpreted easily. The questionnaire as prepared using the front Times New Roman with front size 14 with 1.5 line spacing.
5. SAMPLE DESIGN
Looking at the vast geographic area of the Thane city, I have selected the simple random sampling method for conducting survey. (convince method to access easily. The sampling method that I will be choosing is the probability. The sample size for the survey is 60 (20 from each section)
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Supervision of field wor Interviewing:- As I am collecting the information from the people. I am using field survey for collect the data, it is very necessary to supervise the fieldwork as the time providing. At some place I got responses after 4 to 5 visit as in starting. But this also helped me to remove my fear of meeting people.
Coding
It is the process of classifying the answer to question into meaningful categories. The symbol used to indicate these categories are code which is systematic.
Tabulation
Tabulation comprises of sorting of the data into different categories and counting the number of cases that belong to easy categories. I have used different types of tabulation and frequency distributions and different types of graphs for analyzing the data collected for and used for the percentage method and CHI square test for findings.
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Annexure
Limitations
The sampling plan was based on non-probability method and no scientific methods were adopted. Data collected may not be 100 % reliable. The universe selection and sample size is not sufficient to represent the whole population. Due to time constraint the survey has been done on the basis of convenience. The data is been restricted to only Kharegaon, Manisha Nagar, and Karwalo Nagar.
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ANSWER
Yes No
RESPONDENT
95 5
PERCENTAGE
95 5
100 90 80 70 60 50 40 30 20 10 0
Yes No So from this survey I have found that 95% of people are watching TV and just 5% of people are not watching TV.
Yes No
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ANSWER
Regularly Rarely Once in week Twice in week
RESPONDENT
45 21 21 13
PERCENTAGE
45 21 21 13
So from this survey I have found that 45% of people watch TV regularly and 21% of people watch TV rarely. Whereas 21% & 13% of people watch TV Once in week & Twice in week respectively.
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Answer
DTH Doordarshan Cable Connection Internet Other
Respondent
40 5 45 5 5
Percentage
40 5 45 5 5
From this survey I have found that 45% of respondents prefer Cable Connection but 5% of respondents still prefer Doordarshan.
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DTH Services
Tata Sky Dish TV Big TV Videocon D2H Sun Direct
Percentage
42 35 13 5 5
Interpretation
Tata Sky is the market leader with 42% of market share, followed by Dish TV and Big TV with 35% & 13% of market share respectively.
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Q-5. From which sources you comes to know about Tata Sky ?
SOURCES
Advertisement Hoardings
PERCENTAGE OF USERS
71 12
Newspaper
Mouth Publicity
15
80
70 60 50 40 30 20 10 0 Advertisement Hoardings Newspaper Mouth Publicity
Newspaper Advertisement
Hoardings
Mouth Publicity
Thus by these analysis of Tata Sky, I have found that 71% of people know about the Tata Sky company through an Advertisement, and 12% by Hoarding or Banner. There 15% of people is having awareness by Mouth publicity or communicating with other people.
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LOCATION
Company Shop Exclusive dealers Vendor shop
PERCENTAGE OF USER
50 25 25
As people are more trusted towards company shop so they would like to get connection from company shop. And survey also tells that 50% connection was taken from the company shop while 25% of connections were taken from exclusive dealers. Some people are taking connection from retailers or Vendor shops; they believe that from retailers they will get selected numbers. Also I have seen in too many cases that they were got the selected numbers from the retailers which were not found in the company shop.
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Q.7 .How long did it take for your service to get activated and function?
About asking this question I got the results as follows
TIME IN HOUR
02-06 06-12 12-24 Above 24 Not sure
PERCENTAGE OF USER
74 19 04 00 03
Most of the services has been activated within 02-06 hours of purchasing. But in case of late submission of documents or misplaced of documents it might take more then 12 hours. Research also suggests that 74% of services had been activated within 02-06 hours of purchased and it was functional properly. And only 19% were taken more than 06 but less than 12 hours to get functional. Whiles as I said that sometimes documents might be misplaced so might take more time. And that 4% suggest that because of misplaced of documents the activation might be delayed, and 3% of customers was not sure or they forgot about there activation period.
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Q.8 If yes, then for what period you have used the Tata Sky service?
About asking this question I got the result as follow
PERIOD RESPONDENT
Less then month
RESPONDENT
00
1month to 6 months
04
16 38
As per these analysis one think which is clear about Tata Sky that there out 58 customer 38 customers are using these service from more than year or we can say 3-4 years, and 16 customers are using Tata Sky service up to year, thus the Tata Sky has maintain there good service against the customers, thats why the customers prefer this Brand.
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Q.9 Rate the following parameter of Tata sky to other service provider?
PARAMETERS
Very Good
Very Poor
Coverage
98
02
55
40
05
Customer Services
90
08
02
Brand Image
90
10
65
25
10
60
100 80 60 40
20
0 CoverageValueCustomerBrand Tariffs & Added Services Image Schemes Services
In case of coverage, Tata sky customers satisfaction is highest. There 98% of customers finds that the coverage or network is very good of Tata sky, and just 2% of users of Tata sky think that the coverage for Tata Sky is good. In case of Value added service of Tata sky 55% of customers finds that the Value added service is very good of Tata sky , 40% of customers find that the Tata sky is providing a good Value added service and just 5% of users of Tata sky think that the Value added service for Tata sky is Average. In case of Customer service of Tata sky 90% of customers finds that the Customer service is very good of Tata Sky, 8% of customers find that the Tata sky is providing a good Customer service and just 2% of users of Tata sky think that the Customer service for Tata sky is Average. In case of Brand Image, Tata sky customers satisfaction is highest. There 90% of customers finds that the Brand Image is very good of Tata sky , and 10% of users of Tata sky think that the Brand Image for Tata sky is good. In case of Tariffs & Schemes of Tata sky 65% of customers finds that the Tariffs & Schemes is very good of Tata sky , 25% of customers find that the Tata sky is providing a good Tariffs & Schemes and 10% of users of Tata sky think that the Tariffs & Schemes for Tata sky is Average.
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Q.10 Whats the reasons for which you are not using Tata Sky?
About asking this question I got the results as follows.
REASONS
Poor Service Expensive Service Poor Network Other Operator
PERCENTAGE OF USERS
02 58 00 40
Thus by this survey or research I have found some negative points of Tata Sky that its service is little bit expensive then other operating service in Thane. There here another drawback is that companys like Airtel, Reliance and Dish TV is also providing good service in the market, so 40% of customers are grab by other operating service.
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Findings On survey
Maximum Person keep Tata Sky kit and recharge facility. Awareness of new connection and new recharge offers of Tata Sky is similar to Dish TV and Airtel Digital. There is a communication gap between the company and the customers. This doesnt seem to be the case with other DTH providers. Availability of vouchers lie between price ranges from Rs 100 to 1000. Availability of voucher is one of the major issues among Tata Sky dealers, approximately 40% of persons in Kharegaon, Manisha Nagar, and Karwalo Nagar facing this problem. For small amount of recharge they use vouchers, but use other modes of recharge for large amounts. Due to the shortage of stock they are not able to retain their customer for long time. EPRS system seems to be the most troublesome recharge option for Dish TV. Customer care service is considered to be very poor as dealers often complain of problems in recharge process managed by Tata Sky. Many persons say they recommend Tata Sky because they get the installation done much faster in comparison to Dish TV & competitors with Tata Sky, it takes up to 2-6 hrs. The company have been able to keep up the promises made to the customers, like installation and activation commitments are often not met. Connect between the Call Center and the Service center is good. Customer Care is reachable on Toll-Free easily, waiting time is comparatively less on toll-free numbers Dish TV changes the price plans and offers more frequently as compared to other DTH providers. This along with improper communication confuses customers which beings down the consumer satisfaction levels. There has been a growing trend of Dish TV customers and dealers being shifting to other major brands like Tata Sky and Airtel Digital as they provide better value added services like after sale service, recharge facilities and customer care. Other DTH brand provides best support facility, quick recharge and installation facility, which provides them with the competitive advantage.
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Good thing which i found in Dish TV according to dealer feedback is offer, dealers and customer like their but same time they shows un satisfaction with frequent changes in offer.
Specific Comments By customers:a) Due to the bad EPRS system of Dish TV, they are not able to recharge higher amount and as they face such problems frequently, they try to recommend other DTH brands to their customers. b) The dealers mostly prefer to sell Tata Sky and Airtel because their installation system is very fast. Also if dealers are committed to their customers regarding any specific time limit, the other DTH brands never let them feel down, which helps the dealers to keep good relation with their customers. c) The dealers generally sell recharge vouchers of Tata sky worth Rs 1lac per month, but in case of Dish TV they only sell vouchers worth Rs 5-10k. The main reason behind it is lack of availability and also poor EPRS system. It took long time to recharge. So dealers push its customer towards Tata sky and Airtel Digital.
d) There has been problem on the behalf of the distributers front, distributer have been setting there own price and negotiating according, this has been matter of loss for the dealers in most the case the profit got is not up to the mark.
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Chapter No - 5 CONCLUSION
This study has to enabled to understand the different intricacies that are involved in the buyer behavior to purchase a consumer durable products. The study throws light upon the different DTH systems in the market, vying with each other to get the attention of buyers. Customers to day are bombarded with advertisements in order to catch the attention of buyers. Major systems in DTH system are also involved in durable products to make their brands a success, such as TATA. Brand extensions seems to have worked extremely well for MNCs such as TATA and DISH T.V in getting the attention of buyers. The marketers huge potential with only 12% penetration in the population and in deed a sign for many DTH systems to enter the market. The competition hammered the profits to these companies and lot of money has to be pumped initially, since the market is huge to capture in days to come.
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RECOMMEDATIONS
The following price related strategies could be adopted, which may lead to a short term loss but a medium term break even and profit.
1) Increase awareness:
Since there is lack in communication channel, it should be tackled with care and dealers should be constantly made aware about the offers and new plans through meetings with company executives at regular intervals.
changing
Frequent changes in price and offers is proving no good for Dish TV as it is in way frustrates the customers with changes in offers without being informed about it. So Dish TV needs to watch out for this and should pre inform the customers about the offers and changes well in advance. This in a way, I feel would create more brand loyalty and preference.
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6) Voucher Availability
Make proper channel of Distribution of voucher.
7) Visibility
Danglers create more impact on customer mind, it always visible and promote offer and help to recall brand resonance.
Also,
Free Set Top: Set top Boxes can be given free while ensuring lock in by
providing base pack free for limited time duration, thus inducing update to next level.
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SUGGESTIONS
In this competitive environment with many DTH systems using the strategy of discounts and other promotional offers like: DISH T.V,DD DIRECT PLUS and SUN DIRECT giving complementary every purchase of the DTH system is also advisable for the company. It is in the interest of the company to come with such activities of mass promotion through hoardings. The company should differentiate their product from their competitors keeping its strong attributes aesthetics and technology in promoting the brand. The study throws light upon the performance, durability and price as main features beside the brands that determine the product that the customer will purchase. The company should focus on these buying attributes in order to make TATAs brand a successs.
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Door Darsan
Internet
Dish TV
Videocon D2H
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Q.5 From which sources you comes to know about Tata Sky?
TV Holdings Relatives
Advertisement
News papers
Exclusive dealers
Vendor shop
Q.7 How long did it take for your card to get activated and function?
02-06 hrs 06-12 hrs 12-24 hrs Not sure Above 24 hrs
Q.8 For what period you have used the Tata Sky service
Last 1 month Last 6 to 12 month Less then 12 month More than 12 month
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Q.9 Rate the following parameter of Tata Sky to other Service Provider?
PARAMETERS
Very Good
Very Poor
Coverage
Customer Services
Brand Image
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Q.10. Whats the reasons for which you are not using Tata Sky?
Dont want to change with regular service Poor service High price Low signals Additional facility provided by other operator High rent per month
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Bibliography
http://en.wikipedia.org/wiki/Television_in_India http://www.indiandth.in/ www.sundirect.in/mediaDetails.php?mediaId=1 http://realinfo.info/index.php?topic=810.0;topicseen http://www.media-partners-asia.com/mpanews120809.asp http://www.mumbaispace.com/dth/airtel-dth.htm www.simplymalayalees.com/forum_posts.asp?TID=696 http://www.televisionpoint.com/news2009/newsfullstory.phpiid=1252499760 http://www.coolavenues.com/mba-journal/marketing/outdoor-ooh-changingfaceoutdoor- advertising-india http://www.articlesnatch.com/Article/Analysis-Of-The-Media-Industry-InIndia/995277 http://www.tatasky.com/why-tata-sky.html http://en.wikipedia.org/wiki/Tata_Sky http://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.html http://www.tatasky.com/why-tata-sky.html http://en.wikipedia.org/wiki/Tata_Sky
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