gcb perception

8/8/2019 GCB Perception

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About Project :

As part of our subject Global Consumer behaviour, we thestudents of AMA have been assigned the project of understanding the consumer behaviour based on perception of a particular product. As DTH service is a hot topic nowadays &threatening the local Cable/Satellite providers, we haveselected DTH services as our product to understand theconsumers perception. DTH is a growing market and with the

introduction of High definition clarity, it is set to take over thetelevision market & beat the cable operators. It is estimatedthat Indias DTH market will become the largest market by theyear 2012 overtaking the United States of America.

Objective of Study:

1. To understand the consumer perception for DTH servicesin India.

2. To compare DTH Services with Cable Services.

3. To know how consumer perception about different brandsof DTH affect their buying behaviour.

4. To understand the reasons for shifting from Cableconnections to DTH service.

5. To know which are the major factors taken intoconsideration by consumers while buying DTH service

Direct to home

India has about 130 million TV homes of which, Cable &Satellite (C&S) services are present in 97 million (74%) of thehomes. The DTH market in India comprises 11% of the totalmarket with almost 15 million homes. The DTH industry growth


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lagged to 10.3% in 2008 from 16.7% a year earlier. However,industry estimates DTH to touch 35-40 million subscribers by2012, and thats the number that every DTH brand has set itssights on. By 2015, DTH will enjoy a market share of 40%,digital cable 40% and analog cable will follow with only 20%market share. The DTH service market in India has emerged asone of the most lucrative markets which have successfullyresisted the impacts of the current economic slowdown. Theslowdown has certainly proved a boon for the Indian DTHindustry as people have now started to cut on theirentertainment expenditure and instead of viewing movies attheatres, they are preferring to stay at home with theirtelevision sets.

The industry is anticipated to add nearly 5 Lakh subscribers permonth during 2009 and the numbers are forecasted to surgefurther at around 30% through 2012. So apart from Tata Sky,Dish TV, Airtel Digital and Reliance BIG, southern heavyweightSun TV has entered the fray with Direct, while Videocon hasentered the market in June 2009.


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While Indian consumers were not completely satisfied with theircable services, they did not feel the need to switch over to anyother means of entertainment. It was therefore imperative forcompanies such as Tata Sky, Dish TV, and Reliance BIG TV toeducate the consumers about the advantages of the serviceand in turn create an urge to invest in it.

Population and TV sets :

In March 2009, the number of cable connections across the citywas 84,908, while in March 2010; the number had come downto 74,908, a decrease of 10,000 connections. The decrease inthe number of cable connections has been attributed to people

shifting to DTH services. However, these figures are a far cryfrom the actual numbers if we go by the number of householdswith TV sets.

As per the last Census in 2001, of the almost 12 lakhhouseholds in the city, around 8 lakh households had televisionsets. If we go by rough estimates, the recent census suggeststhat around 13 lakh households and 2 lakh office buildings have

TV sets. However, official figures show that only 74,000households in the city have cable connections. An indication


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that the remaining, roughly 12 lakh, households either did nothave cable connections or had DTH (direct to home)connections.

Product :

Dish TV is Indias first direct to home entertainment servicestarted in 2004. It is an Essel Group initiative using MPEG-2digital compression technology. Dish TV provides 240 digitalchannels and 40 services.

SEGMENTATION: GEOGRAPHIC SEGMENTATION:

Urban and Rural :


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Dish TV has equal distribution of subscribers in urban and ruralmarkets. The cable-dry rural markets had been their strengthwhen they launched their services first in these markets. Inrural areas, Dish TV runs fleet of vans for demos, installation aswell as selling hardware and pre-paid vouchers.

Region and States :

It has come up with special offers for the southern region whereregional and sports channels are viewed the most. LikeUltimate sports bonanza offer - Rs 1890 with 3 Months of SouthSilver subscription available in Tamil Nadu, Kerala, Karnataka &Pondicherry only. Ultimate sports bonanza offer - Rs 2490 with12 Months of Silver subscription available in Andhra Pradeshonly. Dish TV has structured a basic bouquet of customizedpackage of channels which are in demand in a particular stateat a very affordable price pack like North diamond pack andSouth diamond pack. Dishtv also added two more Marathichannels namely Star Pravah and Star Majha on its platform forits Marathi speaking customers. Besides all this Dish TV hasalso launched Rest of India and South pack in scheme of newpackages, targeting north and south India consumersseparately

AGE and GENDER :

As the market gets fragmented, niche channels will becomemore and more desirable. The increased interest in uniquecontent channels is in line with the international trend, whereonce the market matures, consumer needs come into focus.

Thus channels on Education, Women, Gardening, a variety of Sports, Wellness and Religion, etc. make their appearance. Dishtv will be launching several of these niche channels to create aunique and exciting offering for its viewers of every age andgender segment. Dish TV recently launched Children FilmsFestival with a bouquet of over 25 super-hit films acrossvarious categories priced at Rs. 25/- per movie thus targeting


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the children segment. Besides this value added services likeGames Active, Bhakti active services etc carters to needs of customers from various age groups and gender.

INCOME:Recognizing the vast differences in tastes and pocket sizes of different consumer segments, content has been aggregatedand classified into 4 different packages namely MAXI,WELCOME, FREEDOM PLUS and FREEDOM packages .While theMaxi and Welcome packs are price drivers and target highARPU consumers, the value pack offerings in Freedom andFreedom Plus packages are volume drivers that inspire newsubscribers to come on board through a low price point andbasic channel offering. The strategy is to gradually upgrade thelow ARPU subscriber too, through tailor made add on packs ona-la-carte like movies, business, and etc basis for specificentertainment needs. Keeping income levels of consumers inmind, Dishtv apprises the consumer of its three-tier pricing. Itgives a choice to the consumer to select from a three level flexiplan that bundle three, six or 12 months of subscription alongwith the initial box.

FAMILY SIZE :

Dish TV came out with the HAPPY HOME pack offering Dish TV with 12 months for Rs 1990 aimed at families where thenumber of viewers is less and watch only niche channels.Happy Home pack caters to entertainment needs of all the

members of the family in all age groups.BEHAVIOURIAL SEGMENTATION :

OCCASIONS :

Dish TV comes out with new offers of channels or new buyerschemes at relatively cheaper rates on occasions of festivals ormajor sports events. In the past Dish TV has come withschemes like Pay for Welcome and Watch Maxi (October 2006),Diwali Double Dhamaka (November 2007), the IPL Pack (April


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2008), 'Summer Sports Bonanza' (June 2008), Special OnamOffer for Kerela (August 2007), World cup offer (March 2007).

Dish TV offers benefits to customers like :

In a cricket match choosing the language of the commentary,camera angles, know player statistics and watch matchhighlights at our will.

Surf through hundreds of channels using a mosaic screenshowcasing all channels of a single genre.

BENEFITS :

Subscribers can order and watch Hollywood, Bollywood andRegional blockbusters whenever they want, with no ad breaksand the subscriber can watch it multiple times within 24 hours.

Using EPG, one gets an easy and friendly display of theprogram schedule on all channels and is loaded with amazingfeatures such as programme alert, parental lock, channelsorting, and creating lists of favorites and so on.

Unique feature where subscribers can choose from multiplelanguages on select channels.

USER STATUS:

Every product has its non users, ex-users, potential users, firsttime users and regular users. In order to attract the non users

and potential users Dishtv with a finger on the consumer pulsehas time and again brought innovative and exciting consumerpromotion offers into the market. Schemes like World Cup FreeOffer, Free bhi Zyaada bhi, Ab Sab Sikandar, and the landmarkSet Top Box Free Offer, have not only added to the pace of acquisitions but attracted specific consumer audiences likesports lovers and kids into its fold.

PSYCHOGRAPHIC SEGMENTATION :


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Dish TV has successfully segmented the market through anexpanded product range at appropriate price points. By offeringpackages like cinema active, khel active, movie active, musicactive is targeting people with specific lifestyles. Premieringnew movies within weeks of their releases is targeted at peoplewho want to see latest movies at affordable prices. Dish TVpremiered movies like Delhi-6 and Aa Dekhen Zara withinweeks of their release. Dish TV has also targeted the youthsegment with offers like Michael Jackson Live in Bucharesttour for just Rs 25, Microsoft Xbox 360 Arcade.

POSITIONING :

Dish Karo, Wish Karo

Thoda aur wish karo

Dish karo

With this Dishtv made a very confident entry into the psyche of every Indian viewer by asserting itself as the clear DTHchampion. Moreover it positioned itself as a far better and a

smarter option to cable TV which apparently is enjoying arelatively a larger viewership. The brand ambassador of Dish

TV, Shah Rukh Khan urges the viewers not to be complacentwith the smudgy and faulty cable service. A simpleline,Santusht with your cable TV? Thoda aur wish karo, dishkar inspired millions of Indians to shed their inhibitions andmove up in life. The entire nation wished with dishtv, through abreakthrough campaign that not only amplified dishtv's image,but revamped the entire DTH category as a whole. Itquestioned the attitude of our countrymen who are eversatisfied with sub optimal services. It further encouraged themto switch from poor service of cable TV and start wishing formuch better quality entertainment with dishtv. But Dish TV hasrepositioned itself with a new tag line which says SabseZyaada means:

Dishtv Offers Sabse Zyaada Entertainment


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Sabse Zyaada - Number of Channels

Sabse Zyaada Regional Channels

Sabse Zyaada Genre

Sabse Zyaada - Value at Every Price Point

The reason for this being two years back, when Dishtv launchedthe Wish karo campaign, they were competing with cableoperators and the poor quality of delivered content but nowwith rising competition among DTH players, there was a needto re-establish their brand as the largest content provider.Sabse Zyaada is a positioning that clearly brings together thedifferentiation of Maximum Entertainment and Maximum no. of Channels and Maximum Value offered by Dishtv in a powerfulway.

Research Methodology :

The methodology that we will follow in this research isquantitative and the model that we will follow is exploratorywhich will be in the form of questionnaire that will be done on asample size of 10 who are already using DTH connection andcable connection at their home. The source of data will be bothprimary and secondary. The secondary data is collected toknow the population size of Ahmedabad and also the current

status of the DTH services in India. The primary data which iscollected from the questionnaire is used for the analysis of theconsumer behavior and their perception towards DTH.

Current Players :

The current players in DTH industry are:

1. Dish TV - Zee group


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Dish TV is a venture by the Essel Group and was launched in2004. Dish TV is Indias first private player in DTH industry witha presence in 19 states. It has a subscriber base of 5.07 million(March2009). It has a bouquet of over 240 channels to choosefrom. Recently Dish TV has launched an entry-level subscriptionat Rs. 99 per month with the largest offering of 110 channels

2. TATA Sky Joint venture between Tata Group and UK-basedBritish Sky

Tata Sky was incorporated in 2004. TATA is one of India's

largest and most respected business conglomerates and theSKY brand, owned by the UK-based British Sky BroadcastingGroup which has over 20 years of experience in satellitebroadcasting. It launched its services pan-India in August2006.Within a short span of time it garnered a subscriber baseof nearly 4 million (Aug 2009). It has over 168 channels tochoose from. Tata Sky has launched an entry-level subscriptionplan called Super Hit Pack at Rs. 99 per month with a bouquet

of 53 channels. Tata Sky recently launched Tata Sky Plus whichuses the personal video recording (PVR) technology that allowsconsumers to record live.

3. DD-Direct + -- Owned by parent company Doordarshan

DD Direct Plus was launched in December 2004 by

Doordarshan. It was Indias first DTH service offering about 59 TV channels and 21 radio stations. DD DTH is a free service andhas acquired a subscriber base of 6070 lakh connections (July2009).

4. Sun Direct - Rs 1000-crore Indian DTH television networkbased in Chennai from Sun group.

Sun Direct is a DTH service in India headquartered in Chennai,

Tamil. Sun Direct is an 80:20 joint venture between the Maranfamily and Astro Group of Malaysia. With 170+ TV channels and


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31 Radio channels, Sun Direct has a subscriber base of 3 million(April 2009). Sun Direct has a basic pack of Rs 75 monthlysubscription which is the lowest price-point compared to theother service providers

5. Reliance BIG TV Limited a part of Reliance Anil DhirubhaiAmbani Group.

Reliance Communication a more recent entrant in the DTHspace has the brand name Big TV. It has aggressively pricedpackages as low as Rs. 1490 with an offering of 64 channelsand a three month free subscription in addition to 20 video-on-demand movie channels. Within a short span of time itgarnered a subscriber base of nearly 1.8 million (Aug2009). Big

TV currently offers 202 channels. BIG TV focuses on VAS andclaims to have a next generation user guide which is indexed.

6. Airtel DTH - Bharti Airtel Limited

The recent and much talked about player in the market is

Bharti- Airtel. A teaser campaign See you at home wasfollowed up by a multi-starrer campaign with celebrities likeSaif Ali Khan and Kareena, Vidya Balan and Madhavan andIndian cricketers Gautam Gambhir etc. It has a subscriber baseof 1 million (June 2009) and has a bouquet of over 138channels and world space satellite radio to choose from. AirtelDigital has a basic pack of Rs 99 monthly for South and Rs 125monthly for north.

7. Videocon D2H

Videocon the big Indian consumer durable player launcheditself in the DTH market in June 2009 through its media armBharat Business Channel (BBCL). Right now it has offeredservices in Punjab, J&K, Chandigarh, Haryana and Himachal

Pradesh with packages as low as 150 per month. Advantageover other players is that Videocon already makes analog set


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top box hence they are likely to manufacture Set Top Box fortheir DTH service as well.

MARKET SHARE:

The current Market Share is :

Dish TV 32.56% Tata Sky 25.69

Sun Direct 19.27%

Big TV 11.56%

Airtel Digital TV 6.42%

Others 4.5%


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Consumer Behaviour Pattern based on Perception :

> Price

> Customer Service

> Reception

> Program choices

> New Technology and

> Technical Support

gcb perception

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