Services Marketing Case study_ Discovery Channel


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A case study on discovery channel.
the strategies followed bu discovery channel services per se.

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Services Marketing Case study_ Discovery Channel

  1. 1. Going Local Presented By: 12176, 12178, 12201, 12204, 12207, 12209, 12213, 12215, 12216, 12217,
  2. 2. Time Line 1985 Cable educational network launched a new channel called Iceberg alley 1989, Company’s programme launched in the UK in 1989 1987, Entered into an agreement with Mitsubishi Corporation to telecast in Japan 1990, Discovery Interactive Library 1991, Acquired The Learning Channel(TLC) 1995 India & Canada 1996, Brazil 1994, Programme launched in Latin America 1997, Animal Planet made International Debut April 2000, reached milestone of 100 million subscription outside USA in 146 countries Oct 2001, More than 400 Millions worldwide, World’s most widely distributed TV brand September 2000, Animal Planet reached 100 Million subscribing household mark 2004, Discovery Communications reached 1 billion cumulative subscribers worldwide
  3. 3. World Number 1 Non Fiction Media Channel Reaches more than 1.5 billion cumulative customers worldwide Prescence in over 180 Countries Facts About Discovery Channel The channel’s revenue was over $ 3.5 billion at the end of 2009 More than 100 network Channels Discovery Channel The Leaarning Channel Animal Planet Science Channel Investigation Discovery Planet Green Digital Media Services
  4. 4. Discovery Channel’s launch in India Discovery Networks Asia Pacific was first established in 1994 During Launch: Major Competition: Doordarshan & DD Metro Major Programmes: Hum Log Buniyad Mahabharat Early 1990s: Star TV
  5. 5. First Channel to provide Infotainment in India Program Themes: Nature History Science Technology Language of delivery: English Contents substantially different family dramas and soap operas. Parents happy with programmes because content the of from nature of educational Discovery faced the problem of positioning. English transmission: Meant limited reach. Distribution Problems: Rs. 5/ household subscription Price The Problems Underlined: Need to rework Brand Repositioning Extensive Advertising & Brand building exercise Increasing the reach Market Research Studies revealed: Discovery viewers are largely educated middle aged urban Males. Socioeconomic A & B Class Channel struck chord with Adults as well as kids
  6. 6. The Issue: Research Indicates: Channel need to further reposition itself Reach out to target audience better. Be more responsive to its viewers Viewers are not aware about: Programme Content Broadcast Timings Solutions
  7. 7. Discovery Global Portfolio
  8. 8. A Paradigm Shift MD stepped down Kiran Karnik Deepak Shourie Partnership Two hours telecast of show in Doordarshan in Hindi Sampling Revenue Sharing Agreement Problem Persists, Regional Viewers were not drawn
  9. 9. Fun Programmes New Market Research The channel needs to reposition itself Reach out to target audience better Be more responsive to customers Shed Serious Channel Tag Communication needs to be enhanced Issues closely linked Junkyard Wars: A competition for kids Fabulous fortunes For Middle Aged people Understanding Sex for teenagers To close the gap in communicating and availability of such programmes
  10. 10. Other Programs; Tech Tuesday Superstructures of the world Woman’s hour Amazing Animals Late night discovery Something for everyone aspect Greater Variety in comparison to Nat Geo Women’s & Kid’s viewership increased by 20%, Prime viewership by 40%
  11. 11. Marketing Initiatives Quiz Contest for kids Increased Awareness Garnered Market Share Advertisers convinced that Discovery has considerable market share A partnership with canon India ltd. Imaging Contests in Cities like: Delhi Mumbai Hyderabad Chennai Bangalore Pune Ahmadabad Discovery Exhibition Lucky Draws Online Popular Mechanics for kids: classes 6th to 9th
  12. 12. 2002, June A JV with Sony Entertainment Television(SET) Sony held 76% 50% Increase in advertisements revenue Discovery Network Asia Pacific boasts 458 million cumulative subscribers throughout 32 countries
  13. 13. Services Marketing: Tangibility: 1.Knowledge 2.Information 3.Experience Inseparability: The information/knowledge cannot be separated from the presenter. For example, the show called, “The crocodile Hunter” cannot be separated from its presenter “Steve Irwin”, that’s why the channel discontinued with the show after the death of the presenter. Heterogeneity: The programmes cannot be same in each and every territory. Discovery showing tailor made programmes in India as Konark; the chariot of sun is a testimony of heterogeneity. Perishabillity: If for a particular programme, audience is not available, the revenue is lost. For example, Discovery kids is telecasted between 3 pm- 4 pm . If the audience is not there or the reach is not there , then there is a lost of revenue and advertising revenue.
  14. 14. Concerns Whether Discovery can obtain increased viewership or will struggle to retain it’s existing share. This is the challenge
  15. 15. Solutions for Concerns Discovery can have tie ups with other channels. The same way they did at the start of their stint in India. The only difference is that they can have the programmes, produced by other channels telecasted on their channel. Other solution can be to start an animation/cartoon slot, as the kids are more attracted towards such cartoons. This will be an answer to the indirect competition. Discovery will any way have the first mover advantage. So people will always see Discovery as the premium channel. Though Discovery should be aggressive in it’s approach and look for programmes which are relevant to Indian Mass. For example , the Indian diaspora is very much inclined towards Cricket and Bollywood. Hence programmes like: Making of the Test cricket champion, 100 years of Bollywood. Biopic on great cricketers or sportsperson can be made. Award-winning documentaries
  16. 16. Problems Faced: 1.How can Discovery continue to make a mark and retain its audience? 2.What can be its strategies to differentiate itself from the competition? 3.What new promotional strategies can the channel come up with? 4.Is there any way to increase revenues except through airing advertisements during its programmes?
  17. 17. 1.How can Discovery continue to make a mark and retain its audience? 1. 2. 3. 4. 5. Lingual translations/ subtitles. Industry Concerted series of 7-8 episodes. Documentaries of regional achievers/successful women achievers. Organise adventure camps, country visits. Offer same channel in different languages through lingual translations.
  18. 18. 2. What can be its strategies to differentiate itself from the competition? We can have a show like, “ Rendezvous with successful people”. For example:  Amitabh Bachhan  Sachin Tendulkar  Rajnikanth  Chandra Kochhar.  Nitin Paranjpe.  A show on successful entrepreneurs.  Camping with some colleges, superbike groups, and telecast it as a part of series. Social networking Sites.  People can post adventure videos, which will be telecasted in the channel. Collaboration with youth channels and youth programmes like MTV and MTV Roadies. Discovery can sponsor some tasks of Roadies, that will increase the visibillity.
  19. 19. 3. What new promotional strategies can the channel come up with?            Sensible Videos in different channels like Doordarshan, You tube. Discovery awards for bravery CSR campaigns for stray dogs, PETA(Animal Planet) Film Screening in schools. A learning platform for students to learn Science. Collaboration with Google& Microsoft. Combo-Pricing and product shuffling Behind the Scenes- a new era. Discovery Smart kids Competition in collaboration with Britannica/ Encarta. Social Media. Self Made Video.
  20. 20. 4. Is there any way to increase revenues except through airing advertisements during its programmes? Through Merchandising:     DVDs of shows, series Toys for kids Apparels Adventure gears. Through Subscription:  Cable TV  Direct to home  Interactive Television. Add new channels in the portfolio like Discovery toons. Open Sourcing. Apply the strategy of: Convince Confuse Corrupt