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TATA SKY

BACKGROUND
• Tata Sky is a direct broadcast satellite television provider in
India.
• Tata Sky was incorporated in 2001, but launched services on 8
August 2006
• Tata Sky is a joint venture between the Tata Group, and 21st
Century Fox.
• Its primary competitors in satellite television and other DTH
service providers are Airtel Digital TV, Dish TV, Sun
Direct, Reliance Digital TV, DD Free Dish and Videocon D2H.
• Tata Sky has partnered with Ericsson to launch the first VOD
(Video on Demand) Services ever in India in 2012.
• On 9 January 2015, Tata Sky became the first Indian DTH
operator to offer 4K set-top-boxes to its consumers.
Industry Analysis

• Tata Sky has turned around in the fiscal ended 31 March 2016,
posting a net profit of Rs 80.08 crore on a higher revenue
base.
• Tata Sky’s total revenue climbed 20% to Rs 4,490.96 crore in
FY16 compared to Rs 3,739.04 crore a year ago. Total revenue
from operations grew to Rs 4,471.83 crore from Rs 3,723.04
crore.
• Total expenses stood at Rs 3,384.61 crore, up 20% from Rs
2,812.30 crore in the prior year.
Market Share

• The market share of Tata Sky was 21.52% of


the total number of active DTH subscribers in
the entire country.
7 P’s of marketing.

1. Product : The product in service marketing mix


is intangible in nature.
• TATA Sky services
• TATA Sky Bangla Cinema
• TATA Sky Bollywood Premiere
• TATA Sky Acting Adda
• TATA Sky World series
• TATA Sky Kids cinema
• TATA Sky Classic Cinema
1. Place : Place in case of services determine
where is the service product going to be located.
2. Promotions : Promotions have become a
critical factor in the service marketing mix.
3. Pricing : Pricing in case of services is rather
more difficult than in case of products.
4. People : People is one of the elements of
service marketing mix.
STP of TATA Sky.

• Segment : DTH Subscribed TV viewers,


Broadband subscribers.
• Target Group : Top and middle section of the
pyramid.
• Positioning : One-stop shop for all the
television entertainment needs of customers.
SWOT Analysis
Strengths
1) Leverage on brand TATA and high brand recall
2) Partnered with SKY Brand in the space of digital technology to
bring a state-of-the-art satellite television service to India.
3) Leader in introducing new packages and services.
4) Rural penetration through ITC E - Chaupal and Godrej Aadhar
5) Innovative product offering TATA Sky plus.
6) Adopted 360 degree marketing campaign that encapsulates
television, print, radio and outdoor digital platforms.
7) Tie ups with Sony Pictures, Fox for content – Pay per view
service for exclusive events.
8) DVD Quality picture and CD Quality sound.
9) 24*7 customer service support in multiple languages.
Weaknesses

1. Not having first mover advantage as Dish TV


captured market share.
2. Dependency on broadcaster.
3. Cannot match free service provided by DD.
4. Customer service are usually busy and waiting
period is usually very long.
5. High initial cost of DTH equipment.
Opportunities
1.Focus on segmentation and differentiated product offerings to
expand its clients and spread its reach outside Tier-I cities
across the country.
2. Expand distribution network through exclusive stores
3. Growing demand for quality of service in the form of DTH
over Cable.
4. Increase in number of TVs sold.
5. Penetrate market by competitively priced services, superior
technologies, interactive services and customer support.
6. Provide option of installments and other promotional schemes
to the new user.
Threats
1. Interoperability regulations.
2. Cables set top boxes provide easy switching due to negligible
switching costs.
3. Increasing competition.
4. Dependency on broadcasters for their channel content and
thus increase in cost.
5. No Exclusivity in Content and Rule of ‘Must Carry’.
6. Cap on foreign investment.
Competitive Analysis