Consumer marketing can broadly be classified on the basis of

levels between marketer and consumer(wholesaler, retailers, etc).

 Direct marketing is a zero-level channel wherein marketer
interact with consumer on one to one basis.
 It motivates the consumer to take prompt action.
 Teleshopping is an another name for Direct Response Television
Shopping(DRTV). Other being catalog, letters, brochures, etc.
 Teleshopping originated in the US in mid 1980s. In 1990s two
type of infomercials were used. Some featured celebrities
using products and benefiting from it scheduled between TV
programs and at the end flashing a telephone number.

 In other method there were µin-studio¶ production with live

audience showing that It was not a mere commercial luring
customer.
 Teleshopping networks provided consumers with miraculous
products such as disease curing teas, wondrous kitchen,
household equipments, weight reducing medicine etc.

 The products claimed to provide miraculous results. Such as

reduce weight & get into shape without exercising or dieting.

 The range of products included creams, potions, solutions, toys

etc.
M
   

  M 


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m In US teleshopping had dedicated 24 hrs home shopping
channels .
m These channels offered extensive information regarding
their product range such as product details and price.
m In mid 1990s it started gaining popularity.
m At present there are two major teleshopping networks in
the U.S. ±The Home Shopping Network & QVC.
m They offer products aimed at specific customer groups at
differen time slots.
m Its market valued around $2 billion in the year 2000.
 In early 1990s Indian laws prohibited customers to import
products, without acquiring prior permission from the regulating
authorities.
 These laws also restricted the repatriation of money(out of
india),without prior permission of the Reserve Bank of India.This
was the major reason for the evolution of teleshopping in India.

 During the mid-1990s, Telebrands India, a 100% subsidiary of

Telebrands Corp., pioneered the concept of teleshopping in India

 In mid-1995, TSN (another major US-based teleshopping network)

and Asian Sky Shop (ASK), owned by the media giant - Zee[1] ,
also entered the market. The other major players in the Indian
teleshopping market were TVC, TSNM and Star Warnaco.
—

  



m Teleshopping companies targeted segment premium-end TV

viewers, with high purchasing power which were mainly nuclear
families pursuing career

m Offered value for money products such as electronic goods, fitness

devices, home appliances and toys

m It used to import products from abroad to India

m India-based networks such as ASK also offered products made in

India apart from their imported range.
—

  

 

m _ocal player entered the teleshopping market through local

cable channels

m Teleshopping market players started offering customized

products such as Jewellery with birth stones..
m Teleshopping companies targeted segment premium-
end TV viewers, with high purchasing power which
were mainly nuclear families pursuing career

m Offered value for money products such as electronic

goods, fitness devices, home appliances and toys

m It used to import products from abroad to India

m India-based networks such as ASK also offered

products made in India apart from their imported range.
m _ocal player entered the teleshopping
market through local cable channels

m Teleshopping market players started

offering customized products such as
Jewellery with birth stones..
h 


* Buying time slots on popular channels that had high

penetration and enjoyed good viewership among the target
customers. These time slots ranged from two minutes to 1
hour and comprised infomercials/product presentations,
explaining the product's utility.
* Providing a special product code for every product and
displaying it along with its price
* Setting up call centers in various cities, on the basis of the
scale of operations and the extent of penetration expected.
* Providing viewers with telephone numbers of these call
centers and asking them to call their nearest call centre for
further enquiries or to order the product.
m The two types of products offered

* ë 
    Majority of sale

Such as : fitness devices, healthcare/auto care products,
household appliances and electrical devices
* O

     _ow sale products
Such as: jewellery, apparels and, home decor
m Two types of persuasion mode adopted by teleshopping
networks are:-

* † 

 
†unctional congruity aimed at attracting consumers by
emphasizing the utilitarian aspect of the product

* !
  
Self-congruity aimed at attracting customers by
matching the product user image with that of
customer's self-image
m Though teleshopping market was showing positive growth
trend, its growth rate was much below the expectations of the
players involved. Most of the teleshopping networks in the
country were not making any profits.

m Example: -
TSN had closed its teleshopping activities in 2002 and was
concentrating only on online retailing (www.tsnshop.com).
Tele-brands was the only one to sustain in the market with
profits.
m Abundant supply of imitation products.
m Imitated products were cheaper comparatively therefore
attracted customers
m Imitated products producers and sellers also offered the facility
to personally touch and appraise the product to the customer or
consumers.
m Higher product prices by teleshopping networks.
m Dubbed advertisements failed to have impact on prospective
customers
m Criticism for some of its products which claimed to do
³seemingly impossible´ task. †or example:-
products promising to reduce weight, remove unwanted hair,
improve posture, improve hearing
m The µover-enthusiastic' and 'chirpy' foreign models that
appeared in the dubbed infomercials were criticized on the
grounds of being rather awkward mouthing dialogs in Hindi
and other regional languages.

m Network only focused on metros and B-class cities

neglecting towns and semi- rural areas.
O† TE_ESHOPPING
BUSINESS IN INDIA
à It can be done conveniently- The product can be watched
on television and ordered on phone.
à †ocus on innovative and value for money products. Such
products are not easily available in the market such as
disease curing teas, wondrous kitchen and household
equipments, innovative fitness devices and toys.
à A strong distribution network- The distributors are across
the major cities and provide their telephone numbers for
further enquiry which facilitates the buying process.
à Credit cards are also accepted to respond to their offers.
m Higher prices- Products were prized between
Rs.1000-5000. Customers were unwilling to pay
this amount for lifestyle products.

m Dubbed infomercials hampers the prospects

of teleshopping market as cultures and languages
vary.
m The distribution networks focus mainly on
metros and B class cities.
m Teleshopping in India focus mainly on
educated and premium end customers.
à Changes in life style and a general improvement standard
of living can help teleshopping pick up momentum.

à Opportunities exist for teleshopping in the customer base

of convenience-seeking people and the middle class
population as they are more towards trying out
innovative products and concepts.

à To boost the growth they can offer online-shopping

services through retail websites.
m The Analysts- They question the reliability of the
product and its effectiveness. This could lead to
negative impact on consumer behavior about the
products offered.
m Abundant supply of imitated , cheaper versions of these
products by local entrepreneurs.
m Emergence of interactive home shopping. The retailers
and consumers use interactive electronic systems to buy
products online.
m _ack of online purchase awareness among the
consumers and the low rate of credit card penetration in
India can hamper growth of teleshopping market in
India.
m Trusted shopkeepers of the customers to buy
expressive products like jewellery , apparels
and home décor.
m The increasing competition among the
various teleshopping firms in India.
m Though teleshopping market was showing positive growth
trend, its growth rate was much below the expectations of the
players involved. Most of the teleshopping networks in the
country were not making any profits.

m Example: -
TSN had closed its teleshopping activities in 2002 and was
concentrating only on online retailing (www.tsnshop.com).
Tele-brands was the only one to sustain in the market with
profits.
m Abundant supply of imitation products.
m Imitated products were cheaper comparatively therefore
attracted customers
m Imitated products producers and sellers also offered the facility
to personally touch and appraise the product to the customer or
consumers.
m Higher product prices by teleshopping networks.
m Dubbed advertisements failed to have impact on prospective
customers
m Criticism for some of its products which claimed to do
³seemingly impossible´ task. †or example:-
products promising to reduce weight, remove unwanted hair,
improve posture, improve hearing
m The µover-enthusiastic' and 'chirpy' foreign models that
appeared in the dubbed infomercials were criticized on the
grounds of being rather awkward mouthing dialogs in Hindi
and other regional languages.

m Network only focused on metros and B-class cities

neglecting towns and semi- rural areas.
m Despite all the above problems the teleshopping market was
believed to hold a lot of potential in India based on the following
reasons:-

* Increasing base of convenience-seeking people and the middle-

class population
* Receptive towards trying out innovative products and concepts.
* †ocused on integrating their operations & increasing their
reach for these customer segments.
* By mid-2002, most of the major networks such as
Telebrands and ASK were deriving their revenues from
three sources ±
1.websites (www.asianskyshop.com and
www.telebrandsindia.com respectively)
2. teleshopping
3. retail outlets

Their revenues were low due to lack of online purchasing

awareness among the customers and low rate of credit card
penetration in India.
* Star CJ is expected to start a 24x7 home shopping
channel soon. A joint venture between Star Asia and
CJ O¶Shopping of South Korea

* the channel already has a series of home shopping

programmes on Star Utsav. ³At present, we have six
hours of content on Star Utsav. We expect to air the
24-hour channel, Star CJ Alive, by October´ says
Paritosh Joshi, CEO, Star CJ Network India.

* there is a huge untapped market with around 100

million adult consumers who can be offered products
through TV
m †uture Group, too, is contemplating a home shopping channel
but refuses to divulge details

m Zee TV network is also working on a home shopping channel,

say industry insiders. It already has a presence in the arena
with Asian Sky Shop and wants to increase its product
offerings through a dedicated channel.

m Home shopping channels work on a commission-based

model, wherein brand owners pay them for every sale. ³The
commissions range between 10 and 40 per cent depending on
the product.

m Joshi of Star CJ Network says that "We are seeing around 40

per cent month-on-month growth in sales and once we have a
24x7 channel, we expect the sales to grow at a rapid pace,´
m
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