Humanities & Social Sciences Reviews

Dr. Shrish Kumar Tiwari (drshrishkumartiwari@gmail.com)

Department of Commerce, Central University of Allahabad, India

April, 2014

Abstract

The research is on the comparative and analytical study of the sales promotion strategies of D.T.H service providers. D.T.H. stands for Direct-To-Home television. DTH helps in keeping broadcasters in direct touch with consumers thus, eliminating the need of local cable operators. Since the DTH TV industry is currently in its growth phase, it is expected to attract a large number of subscribers in near future and so becomes an area of concern for service providers on which study has been conducted. Researcher has divided the whole study into six broad chapters. The chapter one of the research study which contains the introduction give detail information about the historical perspective of the electronic entertainment sector in India. A profile of a Television households having access of entertainment through the years 1991 to2012 as gathered from Doordarshan annual reports, KPMG Analysis and other reliable sources. Chapter also provide brief information about all seven Direct –To-Home Service Providers i.e. Zee entertainment enterprises , Reliance communication , Tata-Teli-services, Airtel, Sun Direct,d2h of Bharat business channel from private sector and Prasar bharti (DD direct plus ) from Government sector and a brief introduction of marketing strategies. Apart from above this chapter also discuss about review of literature, scope of the research, research objectives and hypotheses. Main objectives of this study are as follows: 1. To Study whether sales promotion strategy is major factor in a customer choosing his service provider. 2. To Study whether the extent of spread and popularity of DTH is limited to number of groups. 3. To Study the impact of DTH services and add on among various groups of subscribers. 4. To Study the role of technology in selection of service provider. The study is based on certain hypothesis. These are as follows:- 1. H0 All DTH service providers use different sales promotion strategies. H1 All DTH service providers do not use similar sales promotion strategies. 2. H0 All DTH service providers target only higher income group subscribers. H1 All DTH service providers do not target only higher income group subscribers. 3. H0 All DTH service providers use similar technology for their services and product. H1 All DTH service providers do not use similar technology for their services and product. Chapter two of the research study describes the research methodology that was being adopted to carry out the research. Major sections in the chapter have been nature of the research, design of the sample, data collection and designing of questionnaire. The nature of research is applied for it is aims at finding a solution for an existing problem facing by home Direct To Home service Providers in National Capital Region. The present research work will take into account one public sector service provider, DD Direct Plus, and three private sector’s DTH service providers namely Dish TV, Tata sky and Videocon’s D2h. These providers are selected on the basis of revenue generation and subscriber coverage. The primary data has been collected through a well designed questionnaire and schedule. The total numbers of questionnaire distributed to the respondent were 400 out of which 230 had responded. For this, two fold questionnaires have been designed to collect data from Direct-To-Home service subscribers and potential subscribers. The chapter third of the research study give a detail information about the concept of DTH including the brief introduction about concept of pay T.V.in India. Further It provide a detail information about various features of DTH service including interactive services, hardware, and make a comparison between Direct–To-Home service and cable and satellite T.V. .In this chapter researcher has also discussed about the reasons for the growth of DTH services in India and it includes various reliable data in support of the above which have been collected from secondary sources by researcher. Researcher has also discussed about future growth and scope of DTH service at the end of the chapter. This chapter also discusses about concept of Pay Television, Evolution of Pay Television in India, Hardware and features of Direct To Home services, Guidelines for Direct –To-Home Service Providers in India, Comparison between Direct-To-Home services and cable services, DTH present and future, DTH industry during recession period, Scope of DTH. Chapter four of the research study is divided in two part, A and B. Part A provide conceptual detail about sales promotion strategy and includes definition, meaning, nature, type need of sales promotion strategy and also provide detail information about tools of sales promotion .In later part, part B, this chapter discuss the sales promotion strategies of Direct–To-Home Service providers in India (of selected service providers which have been chosen for the purpose of the study by researcher). The major a section in which chapter has been divided are concept and meaning, Objectives of sales promotion, Reasons for the rapid growth of sales promotion, Advantages of sales promotion, Sales promotion strategy, Porter’s five force model, Porter’s five force model in DTH industry, Sales promotion strategies of Direct-To-Home service providers, Comparative analysis of strategies of all D.T.H. service providers and Evaluation of the strategies. The chapter five of the research study deals with the collection of data. The present research work is based on primary and secondary data. The researcher has collected primary data with the help of questionnaire and schedule consisting of open and close ended questions. The questionnaire was drafted keeping in view the objectives of the study. The parameters selected in order to analyze the sales promotion strategies of Direct-To-Home service providers were classified into technology, number of channels, price, interactive services and other utilities. The parameters were selected on the basis of the relevance in defining the sales promotion strategies of Direct-To-Home service providers. Especially in DTH and cable industries these parameters play an important role in streamlining the marketing strategies of DTH service providers. The questionnaire relating to DTH User is based on the satisfaction level of the user regarding service provided by DTH Service Providers. The satisfaction level of the users is measured on three and five point Likert Scale. The Question related to the preference of the various users regarding various service providers are based on various parameters such as, number of channels, quality, price, payment mode and other services. The researcher has distributed four hundred questionnaires to DTH users and two hundred questionnaires to potential subscribers residing in National Capital Region consisting Ghaziabad, Faridabad, Noida, Gurgaon, New Delhi, and Alwar to collect primary data. The respondents were selected on stratified random sampling basis. The NCR (National Capital Region) has been selected due to the heterogeneous character and on the criteria that majority of the private DTH service providers is operating in this area since its inception and has been able to hold a large subscriber base through their services. A natural question that arises during the course of the study was the nature, scope and extent of sales promotion strategies used by the DTH service providers. It is relevant to know that what are the deciding factors for framing sales promotion strategies for DTH services. Considering above things certain questions has been framed to know the perception of existing as well potential subscribers. During research work it has been found by researcher through response of subscribers and potential subscribers for the questions which were related to various parameters that is being used for framing sales promotion strategies i.e. price, number of channels, interactive services, other facilities, genre, mode of payment ( q.no. 3, q.no. 4, q.no.5 q.no.7 q.8, 8a. 8b. 8c. 8d and q.10) and from questionnaire for existing subscriber ( q.no.7, q.no.8, q no.9 q.no.11 ) that there are various dissimilarities among choices and preference of subscribers so by maintaining certain basic and primary programs, services almost all DTH service provider are trying to develop a special package to satisfy the requirements of different subscriber group. So all service providers are trying to identify new customer base and for this they are launching various plans and applying different strategies according to difference of income, geographic, and demographic segment. Another relevant question arises during research was related to the focus of service providers only on any specific income group subscribers or are they are targeting all income group subscribers. Considering this, a question (question number 12, profile of respondent) was framed to know about the particular income group targeted by the DTH service providers. The analysis of collected primary data reveals that seventy seven percent of the respondent were in the income range of lower and middle income group (Up To 10, 00,000 P.A.) while only 23 % of the respondents were of high income group (more than 10,00,000 Per Annum). As depicted in above bar diagram the distribution is quite even in Up to 5, 00,000 P.A. and 5, 00,000-10, 00,000 P.A. Direct –To- Home services are based on digital technology which results the better quality of broadcasting by which subscriber can get the digital quality of sound and video. Different types of technologies exist in various forms like technology being used for Set-Top-Box, Accessories and Services etc. An effort has been made by researcher to know about difference of the technology which has been used by all DTH service providers for their product and services. By analyzing the secondary data it has been observed by the researcher that there is no uniformity in use of technology among DTH service providers. The area determined for comparison is as follows: (a) Technology used in compression format. (b)Technology used in Set-Top-Box. (c)Technology for audio and video output and (d) Facility of digital video recording. The main findings, conclusions and suggestions are discussed in the chapter six of the research study. The findings are as follows:- 1. No single reason could be attributed behind the choosing of the particular DTH service provider by the respondent. Infect number of reason exists behind taking decision regarding the service provider 2. Radio and television together were the preferred means of entertainment prior to advent of DTH for the subscribers due to their low cost and handy feature. 3. Doordarshan and cable network together were the preferred means of entertainment for the respondents before the advent of DTH services. 4. The interactive services, number of channels, and price of the DTH services were the factors considered by subscriber for selection of the DTH service provider. 5. Dish TV and Tata Sky were the top two DTH service providers and are preferred by the respondents. 6. The monthly tariff plan was the most preferred tariff plan amongst the respondents covered under the study. 7. The general entertainment channels and music channels were the main constituents of the basket of channels preferred by the respondents 8. The respondents were mostly satisfied with services offered by their DTH service providers. 9. The respondents covered in the study were highly satisfied with the price offered by the service provider. 10. The respondents were highly satisfied with the quality offered by the DTH service providers. 11. The respondents were satisfied with the payment mode options offered by the DTH service providers... 12. The majority of respondents were satisfied on all parameters (Price, Technology, Interactive services and Payment options of DTH service providers) with their DTH service providers. The researcher has based his research work on certain hypothesis. After conducting the entire research work, the hypothesis test reveals the following results: After analyzing the collected data of DTH industry the researcher find that, all DTH service providers are applying different sales promotion strategies for selling their products and services, this has been discussed in detail in chapter four and five of the study, in a particular time period. Thus the first proposed hypothesis that All DTH Service Providers Use Different Sales Promotion Strategies is supported by the collected data hence accepted. The researcher has observed by analyzing primary and secondary data in chapter five that all DTH service providers are trying to attract subscribers of all income group of urban and rural population. Moreover the data also indicates that more than 70% of revenue is generated from small town and rural areas mainly from middle income group. Thus the second proposed hypothesis that All DTH Service Providers Target Only Higher Income Group Subscribers is not supported by data hence rejected. The detail description of the technology used by various DTH Service providers has been discussed in detail in chapter four and five of the study. Thus the third proposed hypothesis that All DTH Service Providers Use Similar Technology for Their Services and Products is not supported by the collected information hence rejected. The researcher would like to suggest certain measures that could be considered by the Direct to Home service providers. 1. The service providers would gain by bringing the intermediaries in the loop and educating them through exposure to the technology and functioning of the organization. Technical knowhow and explaining them the benefits of being a part of the organization. 2. The service providers would be benefited more if service providers provide proper technical support and assistance to the business associates, regarding installation and handling of subscribers grievances. 3. DTH service providers should be transparent in dealing with the subscribers. It would result in creation of goodwill and in attracting new subscribers through reference of existing subscribers. 4. Service packs should contain variety of channels and must include most popular channels for each class of subscribers. 5. Reasonable prices packages should be designed to meet requirements, choices of various target viewers. 6. DTH service providers should no longer focus on volumes alone and should try to focus on active subscribers so that they can get regular income. Service providers should never sacrifice active subscribers for volume subscribers. 7. DTH service providers can increase their A.R.P.U (average revenue per user) and subscribers base by the possession of exclusive content like-game, music, dedicated channels of different programmes , story . 8. The up gradation of technology should be high on cards for the DTH service providers. 9. DTH service providers should add more options in Video-on-Demand segment 10. DTH Service providers should launch more services on pay per use basis. These can be considering as important reasons to opt for DTH service 11. Distributor and subscribers both are significant for growth and development of DTH service.DTH service providers should target both by applying various push and pull strategies to promote their brand. After doing detail and deep study about the DTH service providers certain conclusions are derived. Digitization can open a new gateway for DTH service providers now they can attract cable subscribers through various sales promotion strategies according to their choices and preferences. The television industry will also be greatly benefitted by the digitization drive. Digitization will bring a paradigm shift in the country’s television distribution industry. Presently DTH service is facing intra industry competition merely but with the digitization of cable network system and in near future DTH sector can face inter industry competition with cable network service . References ”Set-Top-Boxes get smarter “Business standard (Luck now edition), May 3rd, 2010, pg. 5. ”Pie in the Sky” The economic times (Lucknow edition) 18th July 2010. Francis d’sa and Jamshed Avani, The Great Indian DTH Challenge, Chip (magazines) September 2009, volume 6, issue 10. http://www.trai.gov.in/dthguidelines.asp. "The Trauma of Adolescences” vanita kohli-khandekar, Business Standard (Lucknow) 26th January, 2010 pg 10. ”Dish TV likely to break even by 12,”The Economic Times (Lucknow) April 8th, 2010, pg 5. DTH players sniff 100 % growth hike marketing budgets ‘The Financial express (Lucknow) September 16th, 2009, pg 4. DTH subscriber growth story remains recession proof, claims industry”, The financial Express (Lucknow) March 23rd, 2009, pg 4. DTH subscribers touted at 40 million by 2012, Business Standard (Lucknow) 7th Aprail, 2010 pg 5. 850 schools using Tata Sky active education services, says Kaushik. The economic times (Lucknow edition), 10th August, 2010, pg 4. Videocon ne apne 2000 dealron ko hongkong ki sair karayi, Dainik Jagran (Allahabad) 1st May, 2009, pg 15. Dish TV upbeat, The financial Express (Lucknow) April 7 th, 2009, pg 4.