Tata Sky is a joint venture between Tata Group, Star India, and Temasek Holdings. It launched in 2004 as India's second DTH provider. Tata Sky initially focused on large urban markets and positioned itself as providing better quality than analog cable. It offers various channel packages and interactive services tailored to different demographic, geographic, and behavioral segments. Some of its targeting strategies include celebrity endorsements, referral programs, and innovative pricing schemes like daily recharges to attract new customers.
2. 2
Tata Sky is a Joint Venture between Tata Group, Star
India and Singapore based Temasek Holdings
3. About TATA Sky
Year of Incorporation
• Incorporated in 2004
• 2nd to launch DTH services in India in 2006 after Dish TV
Market Position • 2nd largest DTH player in India with market share of ~19%
Positioning Strategy
• Unlike Dish, Tata Sky started by concentrating on the big
metros and cities where it saw a large untapped market of
consumers disillusioned with analog cable.
• Harit Nagpal, chief executive of Tata Sky: "We started
concentrating on urban markets where consumers were
ready to pay a premium for better quality.”
Source: http://www.business-standard.com/article/companies/10-years-of-dth-in-india-the-other-electronics-revolution-114010100022_1.html
4. Elements of Product Offering
BASIC PRODUCT
- Digital TV service allowing reception of
television signals in digital format
- 4:3 aspect ratio with minimum pixel
resolution of 640*480
EXPECTED PRODUCT
- Better picture and sound quality than
analog cable
- Greater number of channels with flexibility
to choose base packs/top-ups
AUGMENTED PRODUCT
- Interactive services; Genre based channel
packs
- High quality of customer services and after
sales maintenance
POTENTIAL PRODUCT
- Launch of IPTV & HD+ (4k and higher
resolution) and 3D channel packs
CORE BENEFIT
- High picture quality and
reception
- Entertainment and Interactive
Learning
5. Demographic Segmentation of Tata Sky
• Active Stories & Active Wiz Kids
(For 2-7 years old)
• Active Learning (Designed
specifically for school going
children)
• Active Games (suitable for all age
groups)
• Active Darshan (Focus on
customers belonging to older age
group)
• Active News (Suitable for all age
groups who want to review the
latest news headlines from
across world)
Active Cooking (Interactive service
specifically directed for home
makers who want to learn and cook
new recipes at home)
Age & Lifecycle Gender
• Tata Sky started out by
concentrating on urban markets
where consumers were ready to
pay a premium for better quality
• Make My Pack: Recognizes
differences in preferences and
budget consideration for
different segments.
Income
6. Geographic Segmentation of Tata Sky
• Channel packs specific to regions
catering to local preferences of
regional channels.
Region-wise
• Tata Sky is present across all the
states in India
• It offers services in remote
regions like Ladakh and Kargil.
State-wise
• Tata Sky has roped in ITC e-
choupals, Godrej as well as
Indian Oil to expand its
subscriber base in rural and semi
urban areas.
• In April 2015, introduced daily
recharge schemes to capture the
previously untapped rural price
sensitive market
Semi-urban and Rural
Source: http://articles.economictimes.indiatimes.com/2006-09-22/news/27433799_1_dth-services-dish-tv-tata-sky-md
7. Behavioral Segmentation of Tata Sky
• Tata Sky offers discounts for new
connections during festival
season.
• Unique service offerings during
events such as the Cricket World
Cup, Diwali and Christmas.
Events/Festivals
• Urban TV viewers need of HD
picture and enhanced sound
quality
• Best in class Customer service
across platforms like Voice
Recognition IVR, SMS, ETB, etc.
• Parental control and Interactive
services.
.
Preferences
• Low setup cost and easy
installation and procurement
procedure
• Custom channel packs via
features like TruChoice and
MakeMyPack.
• Easy financing schemes like
deferred monthly installments.
User Experience
8. Psychographic Segmentation of Tata Sky
• Urban household that desires HD
picture and Sound at affordable
prices
• Ready to pay premium for value
added services like Pay per View,
Interactive Services, Video
Recording and Movie Showcase
Personality Traits
• Tech savvy
• Youth centric with services like
Active Lifestyle and Active
Cooking
• Popular movies available on PPV
basis in Tata Sky Show Case
.
Lifestyle
• Featured Services like
ActiveDarshan target the Indian
values and provides live telecast
24x& from the major temples
across the country
Values
9. Targeting
Brand value of Tata and technology of Sky made it a brand to reckon with.
Aamir Khan , Kangna Ranaut and Asin as ambassador for brand in south has it given top
of mind recall value.
‘Family and Friends referral’ scheme, new products like mobile app have made
consumers make mental commitment to buy the product
Brand
Image
Recall value
Brand
Purchase
Value added
servicesGaming, education, virtual pilgrimage, flower delivery, etc
10. Targeting
Factors Market size, expected growth, competitive position, compatibility with objectives
Multi-Segment Targeting
Housewife
Religious content Kids
26
21
20
10
11
11
1
Dish TV
Tata Sky
Airtel Digital
Reliance Digital TV
Videocon D2H
Sun Direct
DD bharti
5000
3500
2000
1000 899
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010
Decline in price
Market Share
Competition
12. Tata Sky has adopted several pricing related initiatives
in recent years to fight increasing competition
Reduced prices of set-top box
while providing higher base
packs free for limited time
duration for new installations.
Subscription to long
duration packs (>6 months)
via discounts & promotion
schemes
Discounts for Multi-TV
Connections
“Reference a friend”
scheme that provides
discount to existing
customers for referring
neighbors and friends to
Tata Sky Connection
Community Dish: Provide
incentives in the form of
free 3-6 month usage and
lower installation charges
per flat
12Source: http://www.comparedth.com/
13. Over the years Tata Sky has come up with innovative
promotional schemes to stave off competition
• In April 2015, Tata Sky launched the
world’s first “Daily Recharge” plan for
Rs. 8 to capture small town and rural
markets
• To promote this disruptive concept,
Tata Sky introduced a first of its kind ad
campaign in association with Ogilvy &
Mather, comprising a series of 13 TVCs
• The catch line was Jis din TV dekho sirf
uss din ke paise do