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G R O U P 4

Product Strategy and Management

Tata Sky

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Agenda

Business Problem Context

Approach

Industry Overview

3Cs - CompanyCompetitionCustomer

Framework based Research & Analysis

Key Insights and Recommendations

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Business Problem Context

Context

Government mandate to digitize the TV content broadcast by Dec 2014 (Phase 3 & 4)

Opportunity - 108 Mn. Subscriber base shifting to digital

Technology differentiation of DTH players narrowing

Tata Sky

No. 2 player in DTH Industry

Intends to have a massive share in premium segment and fair share in mass market

segment

Problem

In view of the upcoming digitization opportunity, how to grow against competitors:

Cable TV service providers

Other players in DTH industry

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Approach

1. Secondary Research3 Cs, Product Features, Branding and

Marketing, Customer Experience

2. Primary ResearchInterviews with Company Personnel

Consumer Survey for Value Map

3. Frameworks

Customer Value Map, Kano, Endowment

Effect, Customer Touch Points

4. Inferences & Recommendations

Brainstorming, Validations and

recommendations

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Product Life Cycle & Stages

TV Households growing @ 4% CAGR

DTH subscribers growing @ 15% CAGR

Tata Sky subscriptions growing @ 11% CAGR

Growing Industry Growing Category Growing Product/Brand

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Tata Sky

Journey so far

Strategic position & direction

Our objective is to have a massive share of the high-end segment and a fair share of

the mass segment.Harit Nagpal, CEO, Tata Sky

"We will never sacrifice volume share completely for value share.Vikram Kaushik,Former CEO, Tata Sky

Connecting every television home

Empowering every television viewer

Revolutionizing home entertainment

Incorporated: 2004

Tata Sky Market Share: ~20%

Pay TV Market Share: ~7%

Tata Sky ARPU: INR 236.72

DTH category ARPU: INR 209.82

Gross Subscribers: 10.41 Mn.

Rural : Urban Mix: ~50:50

Vision:

Launched 1 Million Tata Sky+ Tata Sky HD Tata Sky +HD 10 Million

2006 2007 2008 2010 2011 2012 2013

TV Everywhere

67%

33%

Tata Sky Subscribers

SocioEconomicCategory A

SocioEconomicCategory B+

New Subscribers

Metro

Non-Metro> 70%

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Competition

Pay TV Subscribers (MPA, 2013)

DTH Market Share (MPA, 2013)

47

Million

95.7

Million

DTH Cable

Cable

+ Already has the last mile coverage to subscribers premises

+ Deliver services with a personal touch

+ Transmission not affected by weather conditions

+ Post-paid facility available for payment

- Reach to rural area is limited by Infrastructure availability

- Lack of interactive content

- Mobility is an issue if the subscriber changes city / location

Tata Sky

+ Superior customer service compared to competitors

+ Mobile based access and account management

+ Multiple re-charge options available

+ High quality interactive content

- Costlier packages as compared to competition

- Technological superiority of competitors (MPEG4)

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Customer Needs & Perception

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Customer Needs & Perception

Q = P

Q < P

Q > P Key Observations Quality Better (> 1.0)

Price Higher (>1.0)

Indifferent Customer (Q=P)

Marginally better than other DTH

Digital Cable perceived better

Quality Conscious

Clear Winner w.r.t. Cable

Better than DishTV

Marginally better than Airtel

Price Conscious

Marginally better than Airtel

DishTV & Cable perceived better

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Product Feature Analysis Kano Model

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Consumption Chain & CX

Consumptionchain

Awareness

Order/

Purchase

Delivery

ServiceRequest

Payment

Customer

Service

Marketing promotions,

Dedicated STB Channel

Website, Helpline,

Dealers

Tata Sky Kit, Installation

Technicians

Online, SMS,

Helpline

Voucher, IVR,

Online, ATM

Vernacular,

Website, Twitter

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Branding & Marketing

Technology

(Quality of hardware)

Features

(Interactive series, vernacular, etc.)

Services

(Reach, customer service, etc.)

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Incentives to Switch

High endowment for existing analog cable subscribers Make Tata Sky offering behaviorally compatible to analog cable subscribers

Target un-endowed (non cable subscribers in Phase 3 & 4)

10x improvement (Analog Cable vs Tata Sky)

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Key Insights & Recommendations

Reduce upfront STB costs with respect to cable

Increase number of HD channels availableCustomer Value Map

Improve basic feature set e.g. DVR on USB

Introduce excitement features e.g. vernacular

programming guide

Kano Model

Enhance usage experience by improving user interface

Enhance customer service by increasing self-helpavenues

Consumption Chainand Customer

Experience

Brand innovation & First to market capabilities Brand customer service as a differentiator

Branding andMarketing Analysis

Target the un-endowed by bundling with TV sales

Bring behavior compatibility with cable servicesEndowment effect

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Thank You