satyam infoway case final
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TRANSCRIPT
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Marketing Management - Pricing Policies at Satyam Infoway
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Introduction… Satyam - One of India’s leading integrated Information
Communications Technology companies.
Set up in December 1995 as a subsidiary of Satyam
computer services in Chennai.
Launched corporate connectivity services over India’s
first TCP/IP backbone telecom network infrastructure
enabling connectivity.
Helped change the way enterprises communicate and
grow.
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Satyam Info way to Sify…
Rechristened as Sify.
Independent Entity with a reduction in
Satyam stake from 52.5 % to 37.1 %.
Presence in both the B2C and B2B segments.
Pioneer in offering off-the-shelf ready to use
internet connection packs.
Organized cybercafé chain business.
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Marketing Mix…Product… Sify
Consumer Segment
Internet services
Cyber cafes
Corporate Segment
Internet Solutions
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Product Contd…Launch of new services such as :
1) Secure connect.
2) Express connect.
3) DocImage.
4) Express talk.
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Price… Broadband services were priced according
to speed and hours used.
Psychological pricing strategy.
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Place…Targeted metro cities like Mumbai, Delhi.
Entry into rural markets.
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Promotion…Internet enquiries.
Television Commercials.
Newspaper advertisements.
Pamphlet Distribution.
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Porter’s 5 Force Model…
Rivalry amongst
existing firms
Threat of New
Entrants
Bargaining Power of Suppliers
Threat of Substitutes
Bargaining Power of Buyers
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BCG Matrix…
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SWOT ANALYSIS…
• Strengths• Presence in both B2C & B2B segments.• Corporate segment-end-to-end internet solutions.• Consumer segments-it offered dialup & broadband
internet services with different offerings.• High speed internet service.• First players in the organized cyber cafe chain
services.• Unique technology to deliver broadband service &
special CLI based product for dial-up.
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Weaknesses…• The broadband service can only be availed
through phone lines.
• Tough competition from leading companies
such as BSNL which had better plans &
services.
• Very high prices were offered for services.
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Opportunities• Better technology can be used with better
broad band services i.e. in speed & validity to
meet competition.
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Threats…
• Major threat from BSNL.
• New entry of other big firms offering better
products & various other ISP’s & cable
operator.
• Lower prices offered by competitors.
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Pricing Strategies…Creaming or Skimming.
Penetration pricing.
Competition based pricing.
Cost plus pricing.
Premium pricing.
Psychological pricing.
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Pricing AnalysisThe company follows a strategy of quantitive
discount & Psychological pricing & Psychological
Placing.
Evaluating the exhibits:
To evaluate Price per usage exhibit 1 we have
calculated it by using formula.
Price Per usage= Price/No of hours used, Price
Per Validity= Price /Validity Period.
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Pricing AnalysisChange in price per change in usage or validity or
Usage(Impact of discount)= change in price/(change
in validity).
Exhibit 2: To evaluate broad band Sify Service plan
2005 =>Price/validity or speed or no.of hours.
The trend for dialup access plans & sify broad band is
near about same & hence the basic pricing strategies
of quantity discount is same for both the plans.
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Dial up Access plan
99 249 349 799 1799 31990
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40
60
80
100
120
Price Per ValidityPrice Per Usage
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Comparative AnalysisSify Plan are more expensive than compare
to its competitor .
Bsnl & Airtel have better market share than
sify because of better advertising & sale
strategies.
Bsnl uses price differentiation like combo
pack its various tariff plan where as sify
provides prices concession in almost all its
tariff plan.
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Future ChallengesState own BSNL was planning to launch
broadband service name Dataone
Dataone uses ADSL technology which will allow
BSNL to offer high speed internet connectivity at
nominal price.
Tata Indicom already launched internet service.
Reliance was also poised to launch the service.
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Current Scenario…
Market Share of 43 % - BSNL
Market Share of 19 % - MTNL
Market Share 0f 11.9 % - SIFY
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The Road Ahead…Sify’s main target is to provide wireless
connectivity to its customers all over India.
The company was also targeting corporate to
provide them the service of VPN.
Sify’s future target was to provide a more
reliable and secure connection to its customers.
Sify is going to concentrate on VOIP and IPTV
technology.
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Conclusion…Sify is a regularly growing organization in
the field of internet service.
It has brought a revolution by bringing the
Broadband technology at cheaper rates to
make it a more affordable, reliable and more
secure network to be ever used.
It changes itself according to market
requirements.
Offers wide range of services to consumer
and corporate segment.
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Faces stiff competition from many big and
small internet service providers specially in
pricing policy.
If Sify opts right pricing strategy than it may
remain a market leader in its segment.
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Prepared By:
THANK YOUAanchal Mittal
Nikhil Mansukha
ni
Ahmed Naeem
Ishita Jain
Prasoon Garg