1. Marketing Management - Pricing Policies at Satyam Infoway 1

2. 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. 2

3. 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. 3

4. Marketing Mix… Product… 4

5. Product Contd… Launch of new services such as : Secure connect. Express connect. DocImage. Express talk. 5

6. Price… Broadband services were priced according to speed and hours used. Psychological pricing strategy. 6

7. Place… Targeted metro cities like Mumbai, Delhi. Entry into rural markets. 7

8. Promotion… Internet enquiries. Television Commercials. Newspaper advertisements. Pamphlet Distribution. 8

9. Porter’s 5 Force Model… 9

10. BCG Matrix… 10

11. 11

13. Presence in both B2C & B2B segments.

14. Corporate segment-end-to-end internet solutions.

15. Consumer segments-it offered dialup & broadband internet services with different offerings.

16. High speed internet service.

17. First players in the organized cyber cafe chain services.

18. Unique technology to deliver broadband service & special CLI based product for dial-up.12

20. Tough competition from leading companies such as BSNL which had better plans & services.

21. Very high prices were offered for services.13

24. New entry of other big firms offering better products & various other ISP’s & cable operator.

25. Lower prices offered by competitors.15

26. Pricing Strategies… Creaming or Skimming. Penetration pricing. Competition based pricing. Cost plus pricing. Premium pricing. Psychological pricing. 16

27. Pricing Analysis The 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. 17

28. Pricing Analysis Change 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. 18

29. Dial up Access plan 19

30. Comparative Analysis Sify 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. 20

31. Future Challenges State 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. 21

32. Current Scenario… Market Share of 43 % - BSNL Market Share of 19 % - MTNL Market Share 0f 11.9 % - SIFY 22

33. 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. 23

34. 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. 24

35. 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. 25

36. 26 THANK YOU Prepared By: