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Presented By Group 7Sanket Dave (9) Nalbha Shrimal (31)Kinjal Shah (30) Chirag Verma (37)

Pranjal Goel (43)

isko laga dala toh life jhingalala



Company ProfileCompany Profile

y 80-20 joint venture between Tata group and Star

y Incorporated in 2004

y Launched on 8th August 2006

y Uses the sky brand owned by British sky

broadcasting

JV




In India it has taken DTH 5 years to get to6 million plus subscribers!

Which is a record in itself




0

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J u n - 0 7

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M i l l i o n s ( S

u b s . )

And Tata Sky crossed 2 Million subscribers in 20 And Tata Sky crossed 2 Million subscribers in 20months the fastest subscriber rampmonths the fastest subscriber ramp--up ever by aup ever by aDTH platformDTH platform




0.06 0.180.75

1.925

4.8

9.8

15

20.9

26.1

30.4

33.8

36.2

37.6

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Yea

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i b e

£

¢

( M

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¥

¢

)

2007 to 2015Growth of 683 %

¦

§ ¨ © ce : MPA © ep § © t , Ma © ch 2007

The DTH category is expected to grow

by 680% or so in the next 7 or 8 years!




Playing the volume game DTH in India

Indian cable TV subscribers are currently spendingabout 1.5 - 2% (US$ 4 - 5) of their monthly income

on cable services

Globally, consumers spend 3 - 4% of their monthly income on pay television services

While this indicates a sizeable growth opportunity,only a mass service can achieve the economies of

scale to fully exploit the market potential




The Indian market is changing«. Rise in Disposable Incomes

75% percent rise in per capita income ( 1990 ± 2007)

Source: NCAER

Appetite for Entertainment is growing

10 Million color TVs sold annually

125 Million TV homes «.have doubled in last 6 years

Rapid adoption of new technologies by Indians

350,000 Satellite TV subscribers added every month

But




Increase in Market Share

Products

Marketing

INNOVATION




What is unique..y Superior picture quality (DVD Quality)

y Leader in introducing new packages and services

y Rural penetration through ITC e-choupaly Innovative product offering- TATAsky+

TataTata Sky+takingSky+takingdigital TV to the nextdigital TV to the nextlevellevel



Innovative Advertising




India has about 130 mn TV homes of which 57% have cableservices, 11% have DTH services and remaining do not havecable.

By 2015 DTH will enjoy 40% share, digital cable 40% and

analog cable will have only 20% market share.

DTH is relatively a new product and most people are hesitantto adopt this.

Not restricted to urban sector only- 70% of its subscribersreside in rural area




K ey Players

2002

Dish TV

2008

Airtel Digital TV

2008 Reliance Big TV




y DD direct ± state owned free service provider

y Dish tv-owned by Essel Group- the 1st commercial DTHservice provider

y Sun Direct-owned by sun group-focus on low income group

y Reliance Big Tv-new into the market

y Airtel digital Tv- Bharti group with aggressive marketingstrategy

y Videocon D2H- by Videocon group, new into the market




Market share

10

7

30

53

Market Share (in %)

B TV

rtel's D tal TV

Tata Sky

D sh TV




Competitive Edge- A A ACTIVE




Tata sk +best feature:

TataTata Sky+takingSky+takingdigital TV to the nextdigital TV to the nextlevellevel




R

egu ationsy TRAI And Information & Broadcasting Ministry Is The

Governing Body Of DTH (DTH Regulation Act 2007)

y Government Has Imposed Strong Rules Like

- No Visiting Or Repair And Maintenance Charges AgainstDTH Equipment During Warranty Period

- The DTH Operators Cannot Alter The SubscriptionPackage During The First 6Months, Or Till Validity Expiry,Of A Subscriber's Enrollment, Etc




Socio-cu tura factorsy Consumer Attitudes And Opinions

y Brand, Company, Technology Image

y In a group, several individuals may interact to influence the purchase decision. The typical roles in such a group decisioncan be summarized as follows:

y Initiator

y Influencer

y Decider

y Buyer

y User




Target Market for TATA Sky

Tata Sky caters to 91% of DTH subscribers inMetro Cities and high income groups.

To reach out to the customers in both theurban and rural areas

Hopes to have about 8 million connectionsb y 2012




Marketing Strategies and

Objectives

To educate consumers about the satellitetelevision and its attributesPhase 1

To educate consumers about the interactivefeaturesPhase 2

To educate consumers about the benefits of satellite television versus digital cable inCAS Markets

Phase 3




Mar eti

Mix f ata y

Price

Promotion

Product

Place




Product

y DTH service based on 3 Cs i.e.

Choice, Control and Convenience

y More than 170 channels with DVD picture quality and

CD sound quality y Services provided

Active Services

Search and Scan Banner

Guide (including Hindi display)Customer Service 24 x 7 help, Support in 11

languages




Technologi es and servic es that c an

be imbi bed 1. Combine product with television

2. Connectivity with other digital monitors like

laptops for Commercial Usage. 3. Guide can be displayed in multiple regional

languages.

4. Stock market related interactive service onactive.




Pric e

Strategies that can be adopted :

1. Free Set top Box

2. Multiple Connections

3. Encourage References

4. Regional Disparity

5. Postpaid




Pl ac e


Strategies :



Promotion

y Aamir K han as the Brand Ambassador

y Tie ups with ITC E ± Choupal and Godrej Aadhar

give it wider rural reachy 24 x 7 guru.com to provide content for Active

Learning

y

Adopted a 360 degree marketing campaign.




Suggested strategies

1. Option of installments and other promotional

schemes to the new users

2. Door to door marketing

3. Local games sponsorships to increase awareness

levels

4. Prominent part of building for placing

hoardings of Tata Sky




Ana sis Porters force Mode


CompetitiveRivalry

Supplier

Buyer

Substitutes

NewEntrants



Bargaining power of Supp iers-High

y Relies on 3 major suppliers

y Customer Premise Equipment - Satellite dish

y Set top box and Access Card

y K u Band Transponder and content

y Transponder provided by Astrix, ISRO

y hence dependency exists

y Less regulations in channel pricingy They are at mercy of Broadcasters.




B

argaining Power of B

u er - Highy High bargaining power of Buyers

y Power to chose options

y Homogeneous market because of Less differentiation

y Influences b y Cost versus Service




Threat of Substitutes- Medium




Threat of New Entrants - Mediumy Medium threats from New Entrants

y 7 players in DTH space

y

More Competitiony First mover advantage

y Bargaining power of suppliers is high

y High Expected growth rate




Competitive Riva r - High


M r Sh r (in %)

Big T

Airtel's Digital T

Tata Sk

Dish T



4.34

BCG Matrix

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

10.0 x 8.0 x 6.0 x 4.0 x 2.0 x 1.5 x 1.0 x 0.8 x0.5 x 0.1

Market

GrowthRate

Relative MarketShare

Hi

Hi

Low

Low

QuestionMarks

Stars

Cash Cows Dogs




24x7 Call Centres, Over 800 associates,supporting 11 languages 3000 engineers across India

Professional installations acrossthe country

EXECUTION




Partnership with Global LeadersPartnership with Global Leaders




Innovation

Tata Sky·s Approach

Execution

Tata Skysetting new standards




DTH is a nascent category in its growth phase




DOING IT DIFFERENTLY

To get to the bottom of the pyramid, start at the top

Make technologyaspiration to early adopters

1 Million subscribers in 1

year fastest ever in theworld

Upper

Middle

Low




SWOT ANALYSIS

STRENGTHS

WEAK NESSES

OPPORTUNITIES

THREATS



- Strong Brand (Reliability- TATA)

- Experience Curve- SKY

- Superior Customer Service


STRENGTHS



WEAK NESSES

- Perceived to be costly

- High Lock-in

- Dish TV¶s first movers advantage




OPPORTUNITIES- Tier II and Tier III markets

- R&D Investment

- Interactive Applications

- 680% growth in DTH market expected in next 7 years




THREATS

- Emerging Players like Reliance, Airtel,

Videocon

- Stiff Competition from Cable operators




No. of respondents: 100

AGE GROUPS

05

10

15

20

2530

35

40

45

<25 years 25-35 years 36-50 years >50 years

Age

Age




Usage of Cab e vs. TH service

Usage of Cable Vs DTH Services

76

24

0

10

20

30

40

5060

70

80

1

Cable Vs DTH services

N o .

o f R e s

o n d e n t s

Cable service

DTH Service

Usage of Cable Vs DTH Services

76

24

0

10

20

30

40

5060

70

80

1

Cable Vs DTH services

N o .

o f R e s

o n d e n t s

Cable service

DTH Service

65

11

0

20

40

60

80

No. of

Respondents

1

Level of Interest

Interested to use DTH Services

Yes

Maybe

No




Sources of Awareness

0

10

20

3040

50

60

Series 1

Series 1


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