INDIAN TELESHOPPING MARKETPresented By:NavdeepNehaVivekAtulNaresh
Basic Concept“You should be offering what is not available in retail market.”
Miraculous Products Miraculous products - weight reducing machines, disease curing teas, skin care products, etc Miraculous results - reduce weight & get into shape without exercising or dieting.
BACKROUND NOTE Teleshopping is an another name for Direct Response Television Shopping (DRTV).Other being catalog, letters, brochures, etc. Teleshopping networks became operational in 1990s in the country. Two types of infomercials:-A. Some featured celebrities using products and benefiting from its scheduled on TV.B. In studio productions with a live audience.
In countries like US and Australia teleshopping had dedicated 24 hrs home shopping channels .its market in US valued around $2 billion in year 2000. However it was not successful in other parts of the world due to low penetration, lack of innovation offerings, poor promotion & advertising techniques and lack of awareness among consumers.By 2001 its total business in world amounted to over $5 billion.
Major Teleshopping NetworksCOUNTRY Major teleshopping networks in various countriesUS Home shopping network ,QVC, Telebrands ,TSNJapan Shop ChannelEurope TV-SHOPAustralia TVSNChina China shopping networkINDIA Telebrands(India),Asian Sky Shop
Types Of products Offered(1) Utility products- Majority of sale Such as: fitness devices, healthcare /auto careproducts, household appliances and electricaldevices.
(2) Value Expressive products-Low saleproductsSuch as: jewellery, apparels and home decor.
INDIAN SCENARIO During early 1990s Indian laws prohibited customers to import products, without acquiring prior permission from the regulating authorities. During the mid-1990s,Telebrands India ,a 100% subsidiary of Telebrand Corp, pioneered the concept of teleshopping in India. In mid-1995, TSN (another major US-based teleshopping network) and Asian Sky Shop(ASK) which was founded in 1984, headquartered in Mumbai, owned by the media giant-zee, also entered the market. The other major players in the Indian Teleshopping market were TVC, TSNM and Star Warnaco.
All these networks adopted the following modus operandi : Buying time slots on popular channels that had high penetration and enjoyed good viewership among the target customers. Providing a special product code for every product and displaying it along with its price. Setting up call centers in various cities, on the basis of the scale of operations and the extent of penetration expected. Providing viewers with telephone numbers of these call centers and asking them to call their nearest call centers for further queries.
Rise in Indian Teleshopping Market Teleshopping companies targeted segment premium-end TV viewers, with high purchasing power which were mainly nuclear families pursuing career. Offered value for money products such as electronic goods, fitness devices, home appliances and toys.
India-based networks such as ASK also offered products made in India apart from their imported range. Local player entered the teleshopping market through local cable channels Teleshopping market players started offering customized products such as Jewellery with birth stones which became popular.
Q 1. Explain the concept of teleshopping and itsworking mechanism, benefits and the factors thathave contributed to its success. Discuss theworldwide trends in the teleshopping business andthe factors that have contributed to its success in theUS. Also, describe the circumstances that led to theentry of teleshopping networks in India.
Concept of Teleshopping Principle :- impulse buying Infomercials featured miraculous products An attempt to build trust Factors contributing to its success High purchasing power Nuclear families Attractive offers – innovation and utility, both
Continued… Featuring well known personalities Franchisee base strong Offering customized products (jewellery with birth stone)
Circumstances which led to the entry of Teleshopping During the early 1990s, Indian laws prohibited customers to import products without prior permission of regulating authorities. These laws also restricted the repatriation of money, without prior permission of RBI.
Q 2. Discuss the strategies followed by the major teleshopping networks in India with specific reference to each element of the marketing mix. Do you think the allegations against products claiming to offer „miraculous benefits‟ are justified?
Strategies followed - Advertisement strategy Money Return offers Lowering of prices Dubbed version of infomercials featuring celebrities. Strong sourcing channel with the help of agents. Free accessories and Early Bird prizes.
Yes, the allegations against products claiming miraculous results are justified as Analysts criticized the teleshopping networks for trying to deceive the viewers into buying products with the belief that those people had actually used them. These people were paid to do the job. No product could meet the expectations Products like religious jewellery, health and personal care eg. Rashi ratan, sauna belt, products that promised to make people give-up smoking and improve body posture but were not successful.
Q 3. Critically examine the problems faced by teleshopping networks in India. Do you think the market has a potential to grow in the future in the light of the above problems? According to you, what measures should the teleshopping networks in India adopt to address these problems and grow in future?
Problems faced by Teleshopping networks Imitation products Higher prices Difference in culture and language Limited reach of products Criticism of infomercials
FUTURE PROSPECTS Increasing Base of convenience seeking people and middle class population. Improvement in the standard of living of people makes them to try innovative products. Offering online shopping services through special retail outlets. Earlier male –female shopper ratio was 90:10, now it is 60:40
Measures to be taken Opening of retail outlets in major cities Keep in mind what customer wants Introducing innovative products Online shopping Effective payment system Gift offers and discounts Air time (repetitive presentation of product during peak and slack hours on TV)
Present scenario AAA TELESHOPPING PVT LTD has emerged as pioneer in the teleshopping industry. Came in 2005 Products – astrology products, spiritual items and health related products
Teleone : provides multiple range of products at affordable prices. It also provides services like live chat for product enquiry, product videos, business offers, free consultancy on gemstones and horoscopes.