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Tata Sky

In: Business and Management

Submitted By Rupesh
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Ace Institute of Management

MARKETING MANAGEMENT

Case # 4: Tata Sky’s Marketing Strategies

Submitted to:

Mr. Ashish Tiwari

Submitted by:

Rupesh Kumar Shah

EMBA ’11 Fall

September 2012

Question 1:

Examine the growth strategies of Tata Sky over the years.

Answer:

Tata Sky was launched in 2006. It is one of the leading India-based Direct To Home (DTH) service provider. It has crossed three million connections mark in a period of 20 months. Therefore, it is the fastest growing direct-to-home service provider across the globe. It is a joint venture between Tata Group with 80% stake and STAR Group with 20% stake.

It currently offers more than 196 channels and few interactive ones; the count includes few numbers of HD channels offered by Tata Sky called as Tata Sky - HD and interactive services. Tata Sky has tied with Aamir Khan as its brand ambassador. Aamir Khan features all Tata Sky brand and product communication such as advertisements in TV, print and radio. Tata Sky has targeted to have about eight million connections by 2012.

The direct-to-home (DTH) industry in India currently has about 30 million subscribers and six players. It is assumed to grow to 60 million subscribers by the end of 2013 despite the fact that the industry faces several issues such as low average revenue per user (ARPU), high cost of acquisition of content and subscribers, and various taxes such as entertainment tax and service tax. In India, approximately 12 million set-top boxes are sold annually.

While the DTH industry is working on new ideas, one of its areas of concern has been the availability of sufficient bandwidth, which would allow a DTH operator to telecast more than 500 channels. Some companies are working with DTH operators to develop two-three satellites to increase their capacity....

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