BackgroundSky HD is a British Sky Broadcasting Group (BskyB) .Launched on 22 May 2006 in UK and Ireland offering more than 50channels e.g. sports, documentary, movies, entertainment or dramaprogrammes etc.User must have a Sky+ HD digital box and HD ready TV to enablehigh definition channels on sky to be viewed. (Mintel 2010).
Vision & MissionVisionTo be the first choice for entertainments andcommunicationsMission Entertain, excite and inspire customers with a greatchoice of high-quality television in high definition.Sky puts customers first, and work hard to earn theirtrust (Annual report 2010).
SkyTotal customers 9,956,000Sky + HD customers 3,154,000Multiroom customers 2,158,000Sky Broadband customers 2,802,000Sky Talk customers 2,570,000Adjusted revenue 1 £5,912 million*Investment in programming £1,902 million*Adjusted operating profit 1 £855 million*Number of employees 16,500Price of Sky TV package From £19.00 a month (Sky .com 2010)
Campaign Objectives•To inspire existing and potential consumers with a greatand vary choice of high quality television thisChristmas.•To encourage new customers to join Sky HD boxbefore the end of Christmas holiday.• To bring people together this Christmas with thecompany product innovation.•To re-enforce the new channels created this autumn.E.g. Movie channels
Campaign BudgetSky spent more than £ 9.1 million in theirChristmas campaign to promote Sky HD(Mintel 2010).
PEST Political: Sky must wholesale some of its premium channels at regulated prices to other distributors. (Ofcom.com)Economical:•Inflation – In Oct. 2010, inflation rate in U.K was 3.20% for the past 2 decades and theaverage inflation rate was 2.72%•Economy growth - Recreation and health contributed most to the growth this quarter. Social: •Attitude towards HD : 30% of SKY TV customers have SKY HD •Perception about HD: No1 in DTH market with highest market shareTechnological:•Acceptance of HD technology: Impaired people watch SKY anytime anywhereon Sky Player – iPad, X-box, Laptop
Technology Acceptance Model• The key variables behind the users getting adopted to new technology. • Perceived ease-of-use • Methods • Device capabilities – technical features • Perceived usefulness • need for new feature? • Need for technology itself? Sky clearly communicates the requirements to enjoy the HD experience - Need a HD ready TV along with the SKY+ HD Box to experience HD http://www.sky.com/shop/high-definition/home/why-choose-sky-hd/
SWOTS Dominant distribution & Market share W Established Networks PAN world coverage Innovation × Unable to tap existing SKY customers - Only 30% Internal Customer Hub - empowered to answer 80% of Sky customers subscribed SKY HDof enquiries including billing advice and technicalhelp Visible CSR – towards environmentO × Free to air channels T External 50% of TV viewers are not DTH customers. × Now Duopoly – expect more competitionExisting and New customers for other SKY × Ofcom’s new demandproducts Positive Negative
Marketing Mix (the 4Ps) sMcCarthy defined the marketing mix as a combination of all the factors at a Marketing Manager’s command to satisfy the target market. (Groucutt et al 2004)
4PsProduct: Is anything that is offered to the market which is capable of meetingconsumer’s needs. (Linton and Donelly 2009) SKY+ HD gives access to 50+ HD channels, 5 times more picture detail, superb quality digital sound. SKY+HD 1TB box stores up to 240 hours of HD television SKY HD is the only provider who facilitates TV viewer with 50 + HD channelshttp://www.sky.com/shop/high-definition/home/hd-channels/)
PRICEPrice is a value that is placed on a product or service. (Brassingtonand Pettitt 2000)•HD pack cost £10.25 per month with one year contract. Prices varydepending on the channel bundle customer choose to buy.•The Sky+ HD box is free with HD pack, installation charge £30 butnow free with HD pack subscription.•Sky+ HD 1TB cost £249, installation charge £30 for new customerand £15 for existing customer.•Sky Multiroom cost £10.25 per month for a year
PLACEPlace relates to Borden’s distribution element of physical handling and channel distribution.(Pickton and Broderick 2005)Online from www.sky.comSky TV retailer where customer can see bothrevolutionary boxes in action.
Direct Competitor AnalysisVirgin offers two boxes: V HD Box- HD and 3D ready and gives access to Catch up TV and TV on demand. V + HD box- HD and 3D but enables customer to pause, rewind and record live TV, record two channels while watching third
Direct Competitor AnalysisVirgin HD Campaign TV Ads started 1st May on ITV1 and ITV1HDhttp://www.youtube.com/watch?v=6DzqgQwLwpo&NR=1 Print ads focuses on fans rather than famous footballer
Virgin’s HD Campaign• The Virgin HD campaign includes print ads in national newspapers and UTVs Sport magazine as well as online activity on football sites, news outlets and social media.• Virgin Media ads has been broadcasted on Absolute Radio and UTVs national commercial station TalkSport, both of which have Premier League broadcasting rights, as well as run on pub, bar and stadium media.• The TV ads are part of a multi-million pound media campaign for Virgin Media, which includes TV, print, outdoor, cinema and online. Virgin HD spent £41million in the first quarter of the year on the marketing of Virgin HD which resulted in a huge addition of new customer.
SegmentationThis is to allow your marketing/sales program to focus on the subset of prospects that are"most likely" to purchase your offering. If done properly this will help to insure the highestreturn for your marketing/sales expenditures. (Fill, 2009) Segmentation Performance •Sky 70% of subscribers •Virgin 12.8% of subscribers (mintel,2010)
Target Market Demographics: Men under 45s, the AB socio-economic category and higher- earning groups (£25,000+). Cautious – over 45s retired people, caution about adopting new technology . Disengaged – older women likely to be retired. Mostly from the C2DE socio-economic groups and lower –earning categories. Filmies – women under-35s and in particular students.Mintel, 2010
Perceptual MapDefinition of the desired unique position in the mind of targetedconsumers ( Fill, 2009) Favourite Channel Traditional Sky HD Innovative Virgin Brilliance of HD
Marcom Mix Above the Line AdvertPromotions that make use of commission paying massmedia ( Fill 2009) Bus Shelter Ad TV Ad
Above the Line Advert Electronic BillboardsPress Online AD TV Ad
Above the Line Advert Celebrity Endorsement Any individual who enjoys public recognition & who uses this on behalf of a consumer goods by appearing with it in advertisements (McCracken 1989)Sex AppealOnline ADTV Ad Kelly Osbourne ad campaign for Sky+HD. (BY Steve Hallm 2010) http://www.adrants.com/2010/10/skinny-kelly-osbourne-painted.php
Through the Line Advert A way of targeting individuals to build a one to one relationship (Ref) Loose Inserts Internet BannerSky on Twitter
Below the Line Advert Marcoms that make use of non-commission paying media in all their forms, e.g. all forms of promotions other than advertising. (Fill.2009)Sales Promotion is anactivity designed toboost the sales of aproduct or service(Fill, 2009)
Brand elements These are formal component of corporate strategy Promotion ProductSky Logo Avatar Slogan Website Telephone
Pull Strategy – SKY HDInvolves persuading customers Insertsto seek out brand in an activeprocess(Kotler et al , 2007) B I L L B O A R D S
Pull Strategy – SKY HD It creates demand among consumers Electronic Billboards Press Ad Jcdecaux in Railway stationsWhen the above Ad in Facebook is clicked, it takes the customer to the below link http://www.sky.com/shop/boxes/sky-plus-box/?DCMP=bac-acquisition_56953186_0_233072830
Push Strategy – SKY HDInvolves taking the product directly to the customer via whatever means toensure the customer is aware of your brand at the point of purchase. (Kotler etal (2007) Kiosks in Shopping Centres• Trade show promotions to encourage retailer demand• Direct selling to customers in showrooms or face to face• Point of sale displays
Profile strategyThe strategy used to satisfy an organisation’s corporate promotional goals.•Public relations•Sponsorship•Corporate advertising Team Sky1. As a part of SKY HD’s brand building they printed SKY HD’s logo in the Team Sky’s jerseys.2. Coach also bears SKY’s logo.3. They leveraged the visibility of SKY’s team in promoting SKY HD.
Profile strategy 1. Sky Rainforest Rescue - helps save 1bn trees in partnering with WWF - UK. 2. CSR Ads reflects on the Brand image good will of SKY HD as well.http://www.independent.co.uk/environment/green-living/supermodel-lily-cole-launches-
ConclusionSky HD’s Integrated Marketing Communications have proven towork because of the use of aggressive marketing and promotionalactivities which makes them a well known brand in UK and Ireland.Sky HD campaign is doing well because they use different media totarget different market segment. For example; they use Sky sportHD campaign to target sports lovers and sky movies HD to targetmovies lovers.Rational and emotional appeals with synergy have been effectivelyused in Sky HD campaigns and based on our analysis it is clear thatSky HD has obtained a huge market share.http://www.youtube.com/watch?v=d-SteShhCcA&feature=related
References• Kotler P, Keller KL et al (2007) “Marketing Management” Pearson, New Delhi.• Brassington F and Pettitt S(2000), Principles of Marketing, 2nd Edition, Pearson Education Limited,Essex• Fill c, (2009) marketing communications: engagement, strategies and practice 5th ed. Essex Pearson EducationLtd.• De Pelsmacker p, et al (2010) IMC: marketing communications, A European perspective, 4th ed. USA PrenticeHall.• Groucutt J, Leadley P and Forsyth P (2004) Marketing, Kogan Page, Glasgow.• Linton C and Donelly R(2009) Delivering Customer Value Through Marketing, Elsevier,Oxford• Pickton D and Broderick A (2005) Integrated Marketing Communication,2nd Edition,Pearson EducationLimited, Essex.•Brassington F and Pettitt S(2000), Principles of Marketing, 2nd Edition, Pearson Education Limited,Essex