Introduction About Company Started in 2004, Tata Sky is an 80:20 JV between the TATA Group and STAR. Tata Sky offer Indian viewers a world-class television viewing experience through its satellite television service. The TATA Group is one of India’s largest and most respected business companies. It includes diversified businesses in sectors such as materials, engineering, services, energy, information systems & communications, consumer products and chemicals. The Group and its enterprises have been dedicated and unique in their loyalty to business ethics and their commitment to corporate social responsibility. This is a heritage that has earned the Group the trust of many millions of stakeholders in measure few business houses anywhere in the world can match. STAR is a leading media and entertainment company in Asia. STAR’s parent company, News Corporation, owns an International group of DTH businesses that include BSkyB in UK, Sky Italia in Italy and Foxtel in Australia. Revolutionizing TV Viewing
DVD Quality picture and Sound : Enjoy over 160 TV channels and services in DVD quality picture and CD quality sound.
Customer Service : 24x7 help. Support in 11 languages.
Guide : Get a 4-day listing of all programmes on television. You can also set reminders for your favourite programmes.
-384175873125Parental Control : Regulate what your children watch on your television by locking movies based on the ratings provided by the channel or by locking the entire channel.
Search and Scan Banner : Find out what’s playing on another channel without changing the channel you are watching.
They have understood each member of the family and provide services for them.
For youngsters there is Showcase in which there are movies on demand.
For mother they have cooking recipes.
For kids they have Games and GK Quizzes
For Grandmother/Grandfather they have Active Darshan in which they telecast live from different temples
It means that they have understood and analyse the customer needs and provide them the same. Tata Sky already has over 2.3 million subscribers and they are the fastest growing Direct to Home (DTH) provider in India. They have special Active service which includes:
These all services cover all the basic needs of each and every family member so it is better than any other DTH service. In October 2008, Tata Sky announced launching of PVR service Tata Sky+ which allowed 45 hours of recording in a MPEG-4 compatible STB. The remote will be provided with playback control keys. -570865443865 About Product Tata Sky is launched in 2006, so it is in its initial stage and it has only 35% share in the DTH market. If we compare it with Dish TV then it is far behind in the race and Tata Sky has to work a lot to attract the customers and it has taken a step in doing the same. They have launched Tata Sky +, which has unique features like Live recording, Live Program Pause, Live Program Rewind. We hope that it will help Tata Sky a lot to increase its sales or we can say to convert failure to success. Actually Dish TV has a benefit of first mover. And we know that it is very difficult to fight with first mover, because it is positioned in the mind of the customer and if we want to change the consumer’s mind then Tata Sky should launch new and innovative features which help them to attract customers. Now they have launched Tata Sky + in which they have many new and Innovative features. -492227679061 The Diffusion of Innovation The diffusion process is concerned with how innovations spread, that is, how they are assimilated within the market. We have chosen the Tata sky bas our product because it was launched in 2004 and we want to see that customer adopted it or not. *Diffusion is the Process by which the acceptance of an innovation (a new product, new service, new idea, or new practice) is spread by communication (mass media, Salespeople, or informal conversations) to members of social systems (a target market) over a period of time. The four Basic Elements of the Diffusion process:
The channels of Communication,
The social system
1) The Innovation: the Innovation is classified in four parts’
Firm Oriented Definitions: In the case of Tata Sky it is firm oriented approach because the same Direct To Home facility is provided by the Dish T.V. and many other Direct to home service provider
Product-Oriented Definitions: the product oriented approach focuses on the features in herent in the product itself and on the effects these features are likely to have on consumers usage patterns. There are three types of product innovation:
-414020717550*Consumer behavior by Schiffman and KanuckA continuous innovation for the Tata sky is that they have modified the product features rather than discovering them. The various features are 150 channels, providing live telecast of various holy places, on demand movies, etc.
A dynamic continuous innovation is more disruptive than continuous innovation but still does not alter established behavior patterns. If we take Tata Sky then there are continuous innovation i.e. paying the monthly bill through the credit card from Tata sky site, recording Live telecast for 48 hours and switch to other channels, activating different facilities like matrimony, games, sports, etc.
A discontinuous innovation requires consumers to adopt new behavior patterns. If we see Tata sky this is not the discontinuous innovation because before launching in India, these facilities are used in many European, American and Australian Countries.
Product Characteristics that influence Diffusion: Diffusion researchers have identified five product characteristics that seem to influence consumer acceptance of new products. 1). Relative Advantage 2). Compatibility 3). Complexity 4). Trialability and 5). Obserbality Relative Advantage. The degree to which potential customers perceive the new product as superior to existing substitutes. In Relative Advantage if we see Tata sky, potential consumers see the difference between the Tata sky direct to home and Cable T.V. Tata sky’s pictures quality is very good if we compare it with cable T.V. Tata Sky has customer care department, but a local cable wala has not. -414020840740Compatibility: The degree to which potential consumers feels a new product is consistent with their present needs, values and practices .Yes it is a consistent product. Because this is a new product and it is a very consistent to present entertainment needs and desires. Complexity: The degree to which a new product is easy to understand or use. Tata sky is very easy to understand. It has no complexities. Consumers just need to subscribe it and view the T.V. In this product consumer have to understand how to operate or change the channel. Trialability: The degree to which a new product is capable of being tried on a limited basis. In the trialability the consumers have to visit the retailer for the demonstration. Observability: The degree, to which a product’s benefits or attribute can be observed, imagined or described to potential customers. The observability is described through the advertisement. it is done through telling benefits of the TATA SKY.
Time is the backbone of the diffusion process. It is a time between awareness and purchasers. It pervades the study of diffusion in three distinct but interrelated ways:
Purchase Time refers to the amount of time that elapses between consumers’ initial awareness of a new product or service and the point at which they purchase or reject. This totally a consumer decision process
An Adopter category involves a classification scheme that indicates where a consumer stands in relation to other consumers in terms of time. The five adopter categories are:
Innovators: these people are high N.C., Highly verbalizes, highly inner directed and detached. Very eager to try new ideas. Not only Tata sky but also with any product these are the people who try the product and recommend.
Early Adopters: these people are also verbalize, other directed, high N.C., and according to CAD theory they are aggressive. Early adopters are integrated into local system (opinions are socially accepted).
Early majority adopt new idea just prior to the average time. These people do not take risks, visualize to high degree and low N.C.
-344805839470Late Majority adopt new idea just after to the average time .These people are compliant as well as dogmatic.
Laggards are last people to adopt an innovation. These people are traditional and also have lack of exposure. These people are highly dogmatic.
Adoption Process Five-stage mental process all prospective customers go through from learning of a new product to becoming loyal customers or rejecting it. These stages are
Awareness: prospects come to know about a product but lack sufficient information about it
Interest: they try to get more information
Evaluation: they consider whether the product is beneficial
Trial: they make the first purchase to determine its worth or usefulness
Adoption/Rejection: they decide to adopt it, or look for something else. Another explanation is that the customer moves from a cognitive state (being aware and informed) to the emotional state (liking and preference) and finally to the behavioral or cognitive state (deciding and purchasing). Also called adoption process.
-414020537210 Findings from the Questionnaire
People having salary more than Rs. 3 lac to Rs. 4 lac per annum goes for Tata Sky, this is because middle class people prefer cable connection because of low rates.
Market share of Tata Sky is 35%
Basically people purchased Tata Sky because of good quality picture and sound quality than cable connection.
News Paper and TV advertisements are the main source of awareness to the customer.
Most Wanted Features:
Reminder for favorite program
On demand Movies
Live Record / Pause / Rewind
People want to add internet services as add on service.
80% of the customers are satisfied by the DTH services (Tata Sky).
Problems faced by the Customers:
Some channels do not have good reception
After sales service – customer care service
Remote is not of good quality
Hidden charges – free to air channels
Packages are not so good and attractive
Some times poor quality of signal
-414020586105 We have found out the reasons of the failure and success of Tata Sky which are as follows: Reasons for its Failure
Bad Customer care
Bad Reception of Some Channels
Less advertisement in initial stage
Less variety of channel packages
Failure of Telecommunication Network
Reasons for its Success
Introduction of new and unique features
Introduction of schemes
Improvement in picture and sound quality
Better customer care service than before
Appointed Amir Khan in his advertisement
Easy availability or Good distribution network.
They should improve their customer care.
They should use more advanced technology for the improvement of the picture quality.
They should review their packages and launch some economical packages for middle class people.
They should introduce new schemes to attract customers.
They should introduce new services like internet which will make them unique in their category.
They should find new ways to advertize their product.