Comparision of Markting Strategy of Doordarshan and Star Plus As Public Abd Private Sector
Comparision of Markting Strategy of Doordarshan and Star Plus As Public Abd Private Sector
Comparision of Markting Strategy of Doordarshan and Star Plus As Public Abd Private Sector
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INTRODUCTION:1
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From 1993 to 2000 Doordarshan went with the market. There was increase
in private channels as cable TV business was increasing.
India 2is the shining light of STAR's operations, driving both growth and
profitability. STAR India has been delivering television services to India since
economic reforms began in the country in 1991. Since then, set against the
backdrop of unprecedented economic growth in the country, STAR India has
developed into a leading television network with a national footprint. Today,
STAR India is one of India’s most diversified media companies. STAR India
broadcasts 20 channels in seven languages. Its television brands include
STAR PLUS, STAR MOVIES, STAR WORLD, STAR ONE, STAR NEWS, STAR
GOLD, STAR UTSAV, STAR VIJAY, STAR SPORTS, CHANNEL [V], ESPN, STAR
ANANDA, Asianet, Asianet Plus, Suvarna and Sitara.
STAR India has also built alliances with an array of entities to augment its
business. Its investments include cable (Hathway), DTH (Tata Sky),
distribution (STAR DEN), Southern language broadcasting (STAR-Jupiter),
filmed entertainment (FOX STAR Studios), news (MCCS) and home shopping
(STAR-CJ).
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www.startv.in viewed on: 16.10.2010
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OBJECTIVE OF STUDY:
LITRETURE OF REVIEW:
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According to Fintech Accord (2010) this article states that Balaji Telefilms
has reported unaudited financial results for the quarter ended June 2010. It
has reported a net profit of Rs 2.93 crore for the quarter ended June 30, 2010
against Rs 8.97 crore for the quarter ended June 30, 2009, plunged by
67.30%. Its total income decreased by 22.44% to Rs 30.85 crore for the
quarter ended June 30, 2010 from Rs 39.78 crore in the previous year's
corresponding quarter.Balaji telefilms is a leading content provider in the
television segment. It started operations in 1995-96 with serials like Mano Ya
Na Mano and Hum Paanch. Currently it is the producer of several leading
serials on major channels like Star Plus, 9X, Sony TV, Zee TV and SUN TV
network.
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According to shankar uday(2010) this article sates that STAR businesses in
India-channels, distribution joint ventures like STAR Den and Hathway
Cables, other broadcasting JVs like ESPN STAR Sports-and Murdoch's India
business could well be closing in on the leader in the Indian media and
entertainment market. Bennett, Coleman & Co. Ltd (BCCL), the group that
publishes The Times of India and is the owner of a clutch of other media
properties (with a few more in the pipeline), reportedly closed 2009 with
revenues of over Rs 5,000 crore."There was also the anti-incumbency factor,
with so many people willing to believe that STAR's best days were over," he
says. By October 2007, Shankar found himself in the CEO's hot seat.
Amongst the first tasks was to get the portfolio right. All these efforts have
helped STAR double its share of viewership in the southern markets from 4.3
per cent in 2008 to 8.5 per cent in 2009. Courtesy Asianet, it's a leader in
Kerala, but still has plenty to do in Karnataka, Tamil Nadu and Andhra. But,
as Vikram Sakhuja, CEO (South Asia), GroupM, puts it: "The fact that STAR
thought beyond Hindi and sought to have a full regional offering is significant
as today it is important to have a pan-India presence.
According to anonymous (2010) this article states that . the top position had
been changing hands between the two ever since. While the spurt could be
attributed to the buzz generated by a wall-to-wall marketing campaign of
"Rishta Wohi, Soch Nayi" (same relationship, fresh thinking) seems to have
clicked with viewers, who are tuning into programmes such as "Tere Liye",
Ekta Kapoor's new show, "Pratigya" and "Bidaai". According to Star Plus COO
Sanjay Gupta, a chunk of the 108-point jump in gross rating points has come
from the regular fiction shows and the remaining from its annual property
Star Parivaar Awards, which clocked a rating of 7.2.
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According to Mishra Neelesh (2008) this article states that In a cobweb of
narrow Lucknow lanes, my four young uncles would be about to return home
on their Bajaj scooters, my tough cookie grandfather would be about to have
his evening tea and on the first floor, my grandmother would be cutting
guavas and bringing them to my twin brother Shailesh and me. Shailesh and
I knew the excruciating drill we would have to wade through before returning
to the match: first the tiny quilt placed overnight over the miniature brass
Krishna and Radha would be removed to wake them up, then a little bath for
the shiv ling, then a little scrub for Hanumanji.
According to hill adam (2007) pg.14,1pgs, this article sates that The reason it
might work is, in one word, Bollywood. The mainstream influence of the
Mumbai movie industry has been apparent for years in popular music and
high street fashion, while the success of Bride and Prejudice, Bend It Like
Beckham and The Kumars at No 42, plus Shilpa Shetty's triumph on Celebrity
Big Brother suggest growing interest on the part of mainstream British
audiences in aspects of Asian culture.
According to anonymous (2007) this article states that the fallout could have
been over the marketing rights of DD's telecast. Nimbus is believed to have
been keen to market both its own telecast on Neo Sports and DD's as well.
Nimbus on its part claims DD's satellites have significant dispersion and can
even be tapped into by many neighbouring countries and that amounted to
violations of the rights of television rights' owners in many Asian countries,
encouraged piracy and harmed business. Nimbus has decided that while
there is no agreement with regard to sharing of television feed there would
be no sharing of radio feed to AIR.
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According to anonymous (2006), pg 1, this article states that At present,
Doordarshan has five film slots, including the Friday and Saturday night
feature films and retrospective of Sunday afternoons, among others. The
films will be marketed by Prasar Bharati's Marketing Divisions in Mumbai and
Delhi.
According to anonymous (2005) this article states that "As per the
agreement, Ten Sports will provide a clean feed (without its logo) and
Doordarshan will produce and market the highlights. The revenue will be
shared on a 50:50 basis," Prasar Bharati officials said. The highlights will be
aired immediately after the match and would be repeated the next morning
on the national network. However, the matches will be available live on All
India Radio. Prasar Bharati has paid $15,000 (about Rs 6,75,000) for the
radio rights and has managed to market it for Rs 2 crore. The issue of
sharing of the rights had reached the Supreme Court with the apex court
stating that no court should interfere in the settlement of commercial rights
between Ten Sports and Doordarshan on the issue of live telecast.
According to Bhel Vinod (2002) this article is all about formulating its news
communication strategy aimed at boosting its branding by leveraging on its
strength, particularly high viewership of its news and entertainment
programmes. As part of this plan Doordarshan is in the process of hiring a
top ad agency, which will be entrusted with the task of evolving its
communication strategy. Already Doordarshan authorities have short listed
top ten ad agencies and they have been asked to give presentations along
with competitive quotations.
Following are the key marketing strategies which makes STAR India “The
market leader”.
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1) Maintaining aggressive promotion and packaging approach for
all programmes:
During noon time Star broadcast TV serials for women, as women are
generally free during noon period.
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For example, 12:00 - 12:30Bidaai
This advertisement shows such a slogan or tagline about the next episode
that create curiosity in viewers.
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Celebration of festivals:
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Use appropriate medium for promotion, e.g., Hoardings of Kyunki
Saas... at supermarkets, restaurants, and theme parks, etc. - places that
are frequently visited by families.
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SOWT Analysis of star plus:
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Prasar Bharati will cater to the needs of diverse markets. At one level, the
market would be the ‘advertising’ market: consisting of an audience
(television viewer, the radio listener and, in future, the user of Internet and
New Media) who are desired by advertisers. In many cases, the same
individual would be a part of more than one market. Hence, when we refer
to a specific advertising media we would be referring to the market
consisting of individuals who are ‘users’ of a particular medium. This
audience, is targeted by advertisers and Prasar Bharati would be a player in
this market. A second market for Prasar Bharati is, sale of commercial
services direct to their consumer. Here again, there are two distinct
markets. The first, is a small, but significant market of ‘pay television’ and
in future, DTH which has considerable potential. The third market consists of
television and radio channels who wish purchase services such as
transmission capability, studio and technical facilities and television and
radio software, including the use of the Doordarshan and All India Radio
library facility. Prasar Bharati will have to develop strategies to understand
consumer need and the competitive offerings in the different markets; then
develop products and services which are superior to competition. Finally,
make marketing arrangements to market such products and services in
order to meet the revenue targets.
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3. The development of more effective, relevant, people oriented
programmes, through the use of research.
4. The use of research to develop and establish the commercial potential
the programmes.
5. The development of a strong, ongoing interface between Research and
Marketing, on the one hand, and between Research and Programming,
on the other.
Doo3rdarshan is, without doubt, the leader in terms of channel reach and
viewing. Research conducted by INTAM clearly shows that the DD National
audience is more than twice that of the total satellite audience. By adding
the additional viewership of all other Doordarshan channels, one just
increases the size of this lead. Doordarshan has the highest reach amongst
the high, middle and low income groups and amongst all socio economic
classes. Moreover, it may surprise some, that even amongst the young and
the very young, Doordarshan National attracts the highest
audience. Doordarshan National viewers own more refrigerators, washing
machines, television and consumer durable than any other viewer, and have
the highest number of two - income families (which represent a most
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www.miv.gov.in. viewed on 27.10.2010
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desirable segment from the advertiser’s point of view) amongst all television
channels. In addition, Doordarshan National has, by far, the most popular
programmes, in all parts of the country, on a national basis and in many
regions. Be4sides being the mode of distribution for all Doordarshan
television programmes in nearly 30 miliion C & S homes, there is a growing
nexus, and even, partnership in the form of equity participation and other
alliances, between cable operators and the private satellite television
channels. Indeed, all privately owned satellite channels maintain customer
service and a direct link with this distribution chain. Doordarshan does not.
As a result, in the Cable and Satellite homes, the Doordarshan channels
often get step motherly treatment. Though DD National is always shown on
cable, all others including DD Metro are either poorly transmitted or not
included by the cable operator in their core list. This will continue to happen,
we feel, irrespective of any legislation, until the programme context
becomes highly desired by the cable audience and till Doordarshan develops
a system of customer care, feed back and retention amongst the cable
operators.It is critical that Doordarshan develop a Customer Service Group
within its marketing department whose prime responsibility would be
building relationships, providing the required service and maintaining
customer relationship with the cable operators. In order to understand,
develop, and service, cable operators it is important to have a system which
is ‘close to the customer’. Hence it is recommended that under a National
Customer Service Manager we have four Regional Customer Service
Managers, at Mumbai, Calcutta, Delhi and Chennai, who would have the
responsibility for servicing of cable operators in their region. Each Regional
Service Manager will have a group of Customer Service Executives with a
geographical responsibility servicing, approximately, 50 to 100 important
cable operators. Cable operators should be contacted regularly so that a
long lasting and a profitable business relationship may be built.
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www.miv.gov.in. viewed on 27.10.2010
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Do5ordarshan is one of the largest broadcasting organizations
in the world. Doordarshan operates 20 channels, has a network of 1081
transmitters, put out over 1,393hours of programmers every week.
Doordarshan reaches 87.6 percent of the country's 950million people.
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www.ddindia.gov.in viewed on 25.10.2010
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• Viewers' tastes frequently change, providing little loyalty to any
particular network
• Advertising buyers dictate television programming choices
• The suppliers customers are fragmented, so their bargaining power is
low
• The switching costs from one supplier to another are high
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• New entrant has some problems finding skilled employees, materials,
and suppliers.
• Serviceable used equipment is expensive.
• Long-lasting economies of learning and scale also de motivate the
potential new entrant
• Economies of scale (minimum size requirements for profitable
operations)
• Brand loyalty of customers
• Scarcity of important resources, e.g. qualified expert staff
• Access to raw materials is controlled by existing players
• Distribution channels are controlled by existing players
Threat of Substitutes
Strength of Force—Medium
A threat from substitutes exists if there are alternative products with lower
prices of better performance parameters for the same purpose. They could
potentially attract a significant proportion of market volume and hence
reduce the potential sales volume for existing players. This category also
relates to complementary products. Similarly to the threat of new entrants,
the threat of substitutes is determined by factors like
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Challenges for Doordarshan from star TV:
4. Low ARPU’s and high customer acquisition costs - Apart from lower
ARPU, the players are facing challenges by having a very high subscriber
acquisition cost (SAC) as highlighted earlier. This cost is around Rs.2500
going up to Rs.5000 per customer for few operators. This scenario is like to
continue incoming times.
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DD is the India’s premier public service broadcaster with more than 1,000
transmitters covering 90% of the country’s population across an estimated 70
million homes. It has more than 20,000 employees managing its metro and regional
channels. Recent years have seen growing competition from many private channels
numbering more than 65, and the cable and satellite operator (C & S). The C & S
network reaches nearly 30 million homes and is growing at a very fast rate. DD’s
business model is based on selling half-hour slots of commercial time to the
programme.
Recommendation:
ii) The use of research as a tool to both measure and enhance the
effectiveness of Prasar Bharti’s public service broadcasts and consider the
importance and methodologies developed elsewhere may need to be
adopted by Doordarshan to beat star plus.
iv) The use of research to develop and establish the commercial potential the
programmes as star pus do.
Conclusion:
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www.exchange4media.com. Viewed on 20.10.2010
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with a programming line-up that includes popular drama series, popular
comedies, 'Bollywood' movie blockbusters, lifestyle, current affairs, kid's
programmes and game shows. According to industry sources, the overall
advertising revenue of STAR India declined by around 7-8 per cent in 2008-
09. However, its subscription revenue registered a high double-digit
growth. STAR India remains a highly profitable business, with decent
growth exposure as it secures a national footprint with the launch of new
regional entertainment channels. The star plus Market is evolving
continuously. The major players would like to consolidate their positions
while new channels are increasingly posing a threat to them. With immense
advertising revenues and viewership at stake, the channels need to
continually assess and re-assess their strategies where as Doordarshan is
now in the stuggling period and they have to formulate the innovative
strategies live star plus to lead again and Doordarshan should diversify its
business and do the advertising and formulate an effective marketing
strategy in comparison to star plus.
References:
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index=5&did=2146751221&SrchMode=1&sid=3&Fmt=3&VInst=PROD&V
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• The importance of being No.1; The STAR Network of
channels says it has emerged the largest in India, for the
first time. But the big breakthrough will be if Rupert
Murdoch's Indian operations can lead the country's media
and entertainment pack. He's getting there, fast. Business
line 2010
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index=15&did=2065913631&SrchMode=1&sid=6&Fmt=3&VInst=PROD&VT
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http://proquest.umi.com/pqdweb?
index=11&did=1137761501&SrchMode=1&sid=4&Fmt=3&VInst=PROD&VT
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• www.exchange4media.com
• www.casestudy.com
• www.doordarshan.com
• www.miv.gov.in
• www.startv.in
• www.proquest.com
• www.emrald.com
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