1. Synopsis of the
Tata Sky Case
for Comstrat 2008
Team eXcentric_XIMR
Heemanish Midde | Jeetendra Haryani | Tristan Braganza
24th October 2008
Xavier Institute of Management & Research, Mumbai
2. 1
Table of Contents
1 Overview
1.1 Introduction 2
2 Market Research
2.1 Purpose and Scope 3
2.2 Research Objectives 3
2.3 Research Methodology 3
2.3.1 Research Design
2.3.2 Data Collection
2.4 Analysis and Findings 4
2.4.1 Primary Reason for Choosing DTH 4
2.4.2 Opportunity Analysis 5
2.4.3 Perceptual Mapping 6
2.4.4 JN Kapferer’s Brand Identity Prism 8
3 The Road Ahead
3.1 Communication Strategy 9
3.1.1 Media Strategy 9
3.1.2 Creative Strategy 10
4 Control & Testing effectiveness 11
Appendices
Appendix I: Questionnaire 12
Appendix II: Break-up of the Sample 14
Appendix III: SPSS Output 15
Bibliography 16
3. 2
1
Overview
1.1 Introduction
India has about 133 million TV homes of which, Cable & Satellite (C&S) services are present in 76 million (57%)
of the homes.
The main DTH players are DD Direct, Dish TV, Tata Sky, Sun Direct, Big TV and Airtel.
One of the issues faced by DTH players is the low average revenue per user. Also, companies sell their STBs
at a loss and recoup the same over a period of time from usage charges (as of now, through captive pricing).
As a result of this, most DTH companies are expected to break even only after 5-6 years
1
. As a result, customer
alchemy (converting less profitable customers to more and more profitable services) is a very important
consideration. Since the cost of customer acquisition is very high, it is important to retain customers.
For now, the high switching costs involved in changing DTH providers (current-day Set-top Boxes or STBs are
not compatible across providers) keep consumers from switching providers. However, TRAI is trying to push
through norms to standardise STBs and allow for switching providers without having to change STBs.
With sales of 29” and bigger colour TVs at 4-5 Million a year, the DTH market is poised for a period of growth,
especially in semi-urban areas as well as smaller towns and cities.
There are other factors also fuelling the growth in the DTH industry. With increasing competition it is important
for companies to differentiate themselves.
Differentiating is a challenge going ahead....
1
“
Dish TV, TataSky may post Rs 1,400-cr loss”, Business Standard, 09 Apr 2008
4. 3
2
Market Research
2.1 Purpose and Scope
The main purpose of this research was to find opportunities for Tata Sky, given consumer satisfaction with
existing products on fixed parameters for evaluation and importance of each parameter (to consumers) for
evaluation of those products.
2.2 Research Objectives
The objectives of this study are:
To find out the primary reason for which DTH was bought
To study the consumer preferences for DTH
To study consumer perception of Tata Sky, with respect to JN Kapferer’s Brand Identity Prism
To find out satisfaction levels of consumers with respect to previously identified important attributes
considered by consumers while evaluating DTH services
2.3 Research Methodology
2.3.1 Research Design
To accomplish the objectives, a study was conducted using secondary and primary data. The approach was
descriptive and responses were evaluated according to set criteria.
2.3.2 Data Collection
Secondary Data: Secondary data was collected from the internet and online forums for DTH users to identify
the main parameters that customers consider when deciding to go in for DTH services.
Primary Data: Primary data was collected through the use of structured questionnaires and an online survey. A
focus group was also conducted to determine consumer perceptions of Tata Sky, within the framework of the
Think-Feel-Do Model and JN Kapferer’s Brand Identity Prism.
Questionnaire Design: To keep things simple and reduce the time take to fill the questionnaire, most
questions were closed ended. Rating scales (10-point scales) were used for questions related to preferences
and satisfaction.
Sampling: The sampling technique was non-probabilistic - convenience sampling and snowball sampling.
Snowball sampling was used since a large sample across India was required in a relatively short period of time.
The questionnaire was put up online and the link to it was circulated to respondents via email, along with a
request to pass along the link. A free survey hosting service was used to host the survey at (link has been
closed since data collection was finished) The sample size was 152 individuals. [Refer to Appendix II for a
break-up of the sample]
http://www.surveymonkey.com/s.aspx?sm=wvxDKPuTtrb_2fDQ02KGQQ6A_3d_3d
http://www.surveymonkey.com/s.aspx?sm=vKuMBvTVLS7lBt6CWXZuqg_3d_3d
5. 4
2.4 Analysis and Findings
2.4.1 Primary Reason for choosing DTH
As shown in Table 1 and Chart 1, the largest number of respondents went in or would go in for DTH because of
‘Bad service from cable operators’ (41%). The direct implication was that consumes were looking for better
service from DTH operators.
Table 2.1
Primary Reason for choosing DTH
Superior Video Quality 26.32% 40
More Channels 17.11% 26
Interactive Services 3.29% 5
Living in a CAS notified area (forced to for access to TV channels) 7.24% 11
More transparent payments 5.92% 9
Due to bad service from cable operators 40.13% 61
Total 100% 152
Also, ‘Transparency of payments’ was the primary reason for choosing DTH among 6% of respondents. Both of
these are customer service aspects.
Chart 2.1
Interactive
Services
3%
Superior Video
Quality
26%
More transparent
payments
6%
Living in a CAS
notified area
7%
Due to bad
service from
cable operators
41%
More Channels
17%
Superior Video Quality
More Channels
Interactive Services
Living in a CAS notified area (forced to for access to TV channels)
More transparent payments
Due to bad service from cable operators
6. 5
2.4.2 Opportunity Analysis
Average importance of each parameter (from Q7 of the Questionnaire) was compared to average consumer
satisfaction levels (from Q9 of the Questionnaire) in the same parameter, and an Opportunity Score was found,
using the formula:
Opportunity Score = I*(I-S),
where I = Avg. Importance of parameter to Consumer,
S = Avg. Consumer Satisfaction level with that
Parameter
and (I-S) >= 0*
* - when (I-S) is less than 0, Opportunity Score is 0.
Calculated Opportunity Scores are tabulated in Table 2 given below.
Table 2.2 – Opportunity Score
Parameter
Avg. Importance
to Consumer
Avg. Consumer
Satisfaction Level
Opportunity
Score
Factor
Special channels for elderly people 0.08 -0.07 0.01
1
Educational interactive channels 0.03 0.09 0.00
Special channels for children 0.19 0.12 0.01
Ability to record programs 0.32 -0.07 0.12
Matrimonial services -0.76 -0.16 0.00
Helpline 1.47 0.33 1.68
2
DVD-quality video 1.59 0.83 1.19
Quick response to complaints 1.75 0.20 2.71
Quality of service 1.80 0.74 1.89
Ease of payment 1.31 0.96 0.45
3
Ease of purchase 1.08 0.82 0.29
Continued service even in heavy rains 1.40 0.10 1.83
4MPEG 4 format video quality 0.82 0.27 0.45
Sound Quality 1.51 0.72 1.19
Price 1.37 -0.06 1.97 5
Number of channels 1.60 -0.20 2.87 6
Table 2.3
Factor
Average Factor-specific
Opportunity Score
1. Value added services and interactive Services 0.03
2. Customer Service and basic quality 1.87
3. "Purchasibility" 0.37
4. Product Quality beyond basic quality 1.16
5. Price 1.97
6. Number of Channels 2.87
Tables 2 and 3 show that among the important factors for consideration, ‘Number of Channels’ (2.87) shows the
highest opportunity score. Considering that the number of channels a service provider can offer is easily
imitable, focusing on only this aspect does not make strategic sense. Price has the next highest Opportunity
Score. However, considering that Avg. Revenues per User are low (Rs. 140 per month
#
), not much can be
done in this direction. Customer Service has the next best score (1.87).
Factors as shown in Table 2 were identified using Factor Analysis in SPSS v.16. Please refer to Appendix III –
SPSS Output to see the Rotated Component Matrix for the same.
#
As seen on pg 2 of the Case
7. 6
2.4.3 Perceptual Mapping
Chart 2.2 - Perceptual Mapping of DTH Players on the Basis of Price vs. Overall Score
Price Vs Overall
Dish TV
TATA SKY
Big TV
Airtel
DD Direct
Sun Direct
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
-2 -1.5 -1 -0.5 0 0.5 1 1.5 2
Quality, Customer Service and Interactive Services
Price
Chart 2 was mapped using the deviation of each brand’s score (without considering price) from the average and
then plotting vs. price i.e. the units are a relative measure of perception. As is evident from the chart, Tata Sky
and Airtel are positioned closely in consumers’ minds. It is imperative that Tata Sky educates consumers about
the points of differentiation between its offerings and those of Airtel.
Table 2.4 Consumer Scoring of DTH providers
Ratings Dish TV TATA SKY Big TV Airtel DD Direct Sun Direct
Price 0.319149 -0.20155 0.445946 -0.23188 0.985075 0.867925
Quality -0.30303 1 0.794118 0.881356 -0.20968 0.058824
Customer Service -0.62821 0.767241 -1.05263 0.458333 -1 -0.6
Interactive Service -0.26506 0.521008 -0.72727 0.604167 -1.24242 -1.54054
* Note: These scores are absolute scores. They are the average of consumer scores given on a scale from 1 to
5, which were adjusted to -2 to +2 during coding.
8. 7
Chart 2.3 - Overall
Quality
Customer Service
Interactive Service
Price
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Dish TV TATA SKY Big TV Airtel DD Direct Sun Direct
From Chart 3, it can be seen that Tata Sky ranks highest in Customer Service. Its closest competitor in terms of
overall score as well as consumer perception is Airtel. Airtel is lower on the Customer Service score, but not but
not by a very large margin. Also, when it comes to VAS, Airtel is ranked higher – Airtel even has the advantage
of having experience with VAS on its cellular services, which it could leverage in DTH.
The Single minded proposition which should be adopted to meet the business objective of accelerating
subscriber acquisition is “Customer Service” (Refer 2.4.1, 2.4.2, 2.4.3)
9. 8
2.4.4 JN Kapferer’s Brand Identity Prism
The Analysis was done using a Focus Group Discussion of current TataSky users.
Points discussed in the Focus Group Discussion:
Physique
What is Tata Sky?
What do you use it for?
What is the basic need?
What they like/dislike most about Tata Sky?
Personality
If Tata Sky was a person, what kind of person would it
be?
What kind of people do you think buy Tata Sky?
Relationship
How did Tata Sky interact with you when you were
buying it?
How does Tata Sky interact with you when making a
complaint or calling service?
How do you think the Tata Sky ads relate to you?
How does Tata Sky affect your relationship with your
family?
How does Tata Sky affect your relationship with your
friends?
Culture
What are the values Tata Sky stands for?
How important do you think these values are to you,
personally?
Reflection
As a user of Tata Sky, what do you think that says
about you?
What kind of people do you think buy Tata Sky?
Self Image
Please describe yourself in a few lines
What kind of person are you?
The findings are as follows:
Access to entertainment
World class technology from “SKY”
Light weight box Fun and young
Trustworthy
Making life ‘Jingalala’
(complete and fun)
Reliability
Simplicity
Trust and Innovation
Driven
Family Oriented
They are well-educated
They are modern
They want value
I am an up-to-date
person
I like new technologies
10. 9
3
The Road Ahead
3.1 Communication Strategy
Objectives
To enhance the brand image of Tata Sky as the most preferred DTH service provider
To differentiate the Tata Sky brand clearly from its competitors
To accelerate subscriber acquisition
To connect with the target group on an emotional as well as rational level
Target Audience: Families, especially young couples.
The Single-Minded Proposition: Tata Sky, with its concentration on superior service, takes care of families’
entertainment needs everyday, all day long, so that they can enjoy time with their loved ones.
Broadcast Print Awareness
camps
Internet Buzz
Attention Aware Reach Aware
Interest Educate Educate Educate Educate
Desire Promote Promote Promote
Action Retailers Shopping Buzz
marketing
3.1.1 Media Strategy
Scheduling
Pulsing is an effective strategy as it will enable the company to advertising continuously as well as at low-weight
levels which help reduce the cost. This form is suitable for the communication strategy as the strategy involves
educating the target about TataSky’s customer service initiatives.
Considering the increasing competition, it will be important to keep TataSky fresh in the consumer’s mind.
The media schedule will consist of:
TVCs in major General Entertainment Channels, regional TV channels and DD;
Insertions a week – 2 in mainline print media, 1 in a lifestyle magazine.
Awareness camps should be organized regularly in malls. e-Marketing should be an on-going activity
throughout the year.
Promotional campaigns can be held for members of Tata Sky's forums to encourage users to sign up
on them and to generate excitement.
Through our communication strategy we are communicating with our target group at various levels and using
various Media mix.
Broadcast: Primarily Television commercials and radio will be used to grab the attention of the target and
make them aware about Tata Sky’s customer service initiatives.
Print: Print ads will be used to educate the target about how can he use customer services and how Tata Slky’s
superior customer service would enhance his Television viewing experience
11. 10
Awareness Camps: Awareness Camps in the stores and malls will help create a platform through which
awareness, education and promotion can be spread at the same time.
These awareness camps will educate the customer why they need to have a Tata Sky DTH service and how
Tata Sky’s unparalleled customer service will ensure uninterrupted television viewing, when they want it.
Internet: The Internet will be used as an online platform through which we can spread awareness, educate and
promote our services to the target group. This will be an online platform through which consumers can even
address problems to Tata Sky. It was found during secondary research that there are a lot of forums created by
consumers themselves online. These are, very often, the more involved and knowledgeable consumers (in the
domain of DTH services) and thus represent a treasure house of lead users, who can act as barometers for
future trends in the market. A forum for consumers should be maintained on the Tata Sky website.
This will not only give the company advance warning of problems with its products, but also give consumers a
feeling of commonality and belonging to a community.
Social Networking sites can also be leveraged to educate customers and solve any problems they may face
while using Tata Sky.
Here we can create an animated Amir Khan who will have a profile on all networking sites and forums, he will
be on friends list of all the TataSky users registered and will address all their problems to this animated virtual
friend as well as ask for advice while purchasing a DTH service provider. (This will help the company to be a
part of the information search stage of consumer’s decision making process)
Buzz Marketing: Buzz Marketing is an important tool which should be exploited as it was noticed during the
research that our target group relied on third party recommendations to make the decision to buy. The Internet
and Awareness camps will ensure third party recommendations.
3.1.2 Creative Strategy
Positioning
Tata Sky is the DTH service provider with the best customer service to ensure no family will ever miss a minute
of entertainment and relaxation with loved ones.
Creative Execution
Marcom Message: Customer Service bhi aisi, ki ab toh bus mazza ala hi ala
Appeal: Soft-sell, emotional appeal, use of humorous situations
Format: Use of humour, use of people, slice of life, demonstration.
Brand ambassador: Brand ambassadors must be youthful, fun and playful.
Tone of Voice: Playful, humorous, friendly.
12. 11
4
Control & Testing effectiveness
Control is very important to measure the effectiveness of the communication program
this ensures that money spent on communicating is well spent and the strategy used is
effective or no.
Sales-Effect Research;
Advertising’s sales effect is generally harder to measure than its communication effect.
Sales are influenced by many factors, such as features, price, and availability, as well
as competitor’s actions.
A company’s share of advertising expenditures produces a share of voice that earns a
Share of consumers’ minds and hearts and, ultimately a share of market
Sales-Effect Model
Share of
expenditure
Share of voice
Share of mind
& heart
Share of
market
15. 14
Appendix II: Break-up of the Sample
Table B1 – Break-up According to Age
Age Break-up
Percentage Response Count
<18 years 4.61% 7
18-25 years 56.58% 86
25-35 years 30.26% 46
35-45 years 4.61% 7
45+ years 3.95% 6
Total 100% 152
Table B2 – Break-up According to Gender
Gender Break-up
Percentage Response Count
Male 85.53% 130
Female 14.47% 22
Total 100% 152
Table B3 – Break-up According to Usage Status
Status of Usage of DTH
Percentage Response Count
Yes 74.34% 113
No 25.66% 39
Total 100% 152
Table B4 – Break-up According to DTH Service Used
Usage Break-up
Percentage Response Count
Dish TV 15.83% 22
TATA SKY 58.27% 81
Big TV 10.79% 15
Airtel 2.16% 3
DD Direct 2.88% 4
Sun Direct 5.76% 8
Other 4.32% 6
Users (includes repetition)* 139
Non-users 39
*Please note, the figure for users includes consumers who use multiple DTH-services, since multiple choices
were available for this question.
16. 15
Appendix III: SPSS Output
Table C1 – KMO and Bartlett’s Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
0.8252791
Bartlett's Test of Sphericity
Approx. Chi-
Square
844.75547
df 120
Sig. 0.00
As can be seen from Table C1, KMO Measure of Sampling Adequacy is 0.83, indicating that the sample size
was sufficient for carrying out Factor Analysis. Significance is 0.00, indicating that the test is valid at a 99%
confidence level.
Table C2 – Rotated Component Matrix
Rotated Component Matrix
a
Component
1 2 3 4 5 6
Special channels for elderly people 0.845 0.17 -0.002 0.000 -0.03 -0.009
Educational interactive channels 0.831 0.025 0.117 0.166 0.183 0.085
Special channels for children 0.822 0.189 0.045 0.084 0.059 0.011
Ability to record programs 0.71 -0.199 0.221 0.164 0.161 0.305
Matrimonial services 0.706 0.214 0.003 0.032 -0.178 -0.139
Helpline 0.187 0.8 0.156 0.019 0.09 0.191
DVD-quality video 0.082 0.668 0.033 0.47 -0.072 0.098
Quick response to complaints 0.176 0.633 0.312 0.129 0.238 0.039
Quality of service 0.095 0.615 0.254 0.144 0.454 0.013
Ease of payment 0.017 0.137 0.908 0.018 0.081 0.164
Ease of purchase 0.195 0.267 0.85 0.149 0.142 -0.069
Continued service even in heavy rains 0.128 0.154 -0.02 0.808 0.338 -0.042
MPEG 4 format video quality 0.24 0.113 0.267 0.592 -0.286 0.199
Sound Quality 0.009 0.397 0.484 0.513 -0.138 0.117
Price 0.048 0.19 0.109 0.017 0.826 0.094
Number of channels 0.037 0.23 0.09 0.089 0.084 0.912
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a -
Rotation converged in 8 iterations.
17. 16
Bibliography
Books:
Market Research Methodological Foundations: Gilbert Churchill Jr., Dawn Iacobucci
Marketing Research: Seventh Edition: Aaker, Kumar, Day
Articles:
The Harvard Business Review
http://www.tatasky.com/pressroom-2008-tata-sky-aamir-khan-brand-ambassador.html
http://www.business-standard.com/india/storypage.php?autono=332442
http://www.afaqs.com/perl/news/index.html?sid=22263
http://www.hindu.com/2006/10/20/stories/2006102003411902.htm
Blogs
http://sanjukta.wordpress.com/2008/08/25/tata-sky-new-commercial-featuring-aamir-khan/
www.dthguide.wordpress.com/2008/08/21/dth-in-india
www.indiadth.in
www.dthclub.com/tag/dth-india
Forums
www.saveondish.com
www.indiabroadband.com
www.dishtracking.com/forum
Communities on www.facebook.com and www.orkut.com
Websites
www.tatasky.com
www.afaqs.com
