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An undertaking of this type is a result of contribution received from a number of people.

Never can this report be claimed as my individual effort. No amount of words written will be

sufficient and adequate to acknowledge all the people who have p rovided me with the

inspiration, guidance and help during the preparation of the project. Therefore I extend my

deep sense of gratitude towards them.

I am extremely grateful to * +, -  " " ., who always supported me

during my summer training. I am also thankful to all other head of departments of company

for their kinds cooperation who always helped me in proving the required information

whenever needed.

Finally I Regret that it is not possible to list all those who helped me to make t his project
possible. I pay my thanks and regard to all of them who are directly or indirectly involved in
me for this project.

Varun Katara
Rajiv Academy for
Technology &

Industry exposure is the most crucial part of the management studies in which

a student is able to synchronize his technical knowledge with practical

knowledge gained in the any of the organizat ion.

I chose the project title 5&6  0 7  ""     

2  "8which is a great learning experience.

I hope that the words of projects will communicate the actual of experienced

gained with subtlety and precision, which is un approachable, by any other


5 9     7 9  :   7  ;       




Videocon Industries Limited is one of the biggest business conglomerates in India. In 1979 Late Mr.

Nandlal Madhavrao Dhoot started this business with great vision. His vision reflects his ideology for


Videocon founder Late Mr. Nanadlal M Dhoot







We can feel this vision while working with the Videocon also. This group is working very aggressively

under the guidance of current Chairman Mr. Venugopal Nandlal Dhoot & Vice chairman and Chief

executive Officer Mr. K R Kim. This group has good presence in various sector but consumer durables

is its major business.

To increase the existing market share the company has launched its consumer retail chain DIGI

World in major cities of India. There is availability of five major brands of Videocon Group. These all

brands have good image in the mind of the consumers. These megastores have got good starting.

There are almost 16 shops have been launched so for. Mr. K R Kim, CEO of Videocon Group has told

in an interview they are focusing on almost 200 shops all around in India.

These megastores give a lot of boost to the existing networks of distributors, direct dealers and sub

dealers. These stores mainly exist in major cities like Mumbai, Delhi, Gurgaon and Ghaziabad etc.

There are many reasons to open these megastores. As the company is adopting aggressive

marketing plan for increasing sales so they are focusing on many dimension of marketing. Among

them is increasing brand visibility, for increasing this they are working to do so. DIGI World is one of

the initiatives taken by the new CEO Mr. K R Kim. There are several stapes have been taken from this

former CEO of LG. During his tenure in LG this man has made miracles.

Videocon is the biggest Indian company. In consumer durables field this company has great

reputation in market and among customers. Other two major players LG and Samsung are Korean

player that rock entire Asia by their technology. But in India, Videocon not only give them strong

challenge but also holding the 2nd position in this sector.

Now Videocon group is unfolding its wings to fly in the sky of the globe. For this they are entering in

the different segment also.

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in

every sphere of its activities from a conference room sized assembly line in 1979.










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Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience

and technical expertise operating through Poland and India. Videocon will leverage on this synergy

after the Thomson acquisition to internally source glass for its CPT manufacturing increasing

efficiencies and lowering costs.


An important asset for the group is its Ravva oil field with one of the lowest operating costs in the

world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this

sector globally.


Tie-ups with Global Leaders

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back Technical Support

Transformers, Tuners

Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products ODM for Indian Market

and Colour TV

Techneglas Glass Shell Technical Collaboration

Akai Audio Products ODM for Indian Market

and Colour TV

Hyundai Colour TV ODM for Indian Market

Electrolux AB Sweden Refrigerator, 1.ODM & Indian Market

Air Conditioner and 2.Sourcing of components for

Global Market
Washing Machine
3.ODM for Global market

6$'!) 2%$'0%

This is started in 1979 but it curved it shape in 1987 by starting manufacturing of color Television

and Washing Machine. These two products made major impact on Indian consumers. Gradually

Videocon became the brand of India.

After that Videocon never looked back and in year 1989 they launched Home Theater System and Air

Conditioner for India. There were only very few player in that market like Philips, BPL, Crown, and

Bush etc but among them Videocon successfully made his position.

In year 1991 they started manufacturing of Refrigerators and Air coolers. Till then Videocon Washing

Machine became important product in Indian market.

In Videocon there was sea change came in year 1995, when they decided about manufacturing of

CRT shell. From here Videocon made a significant change in its policy. They focused on the

manufacturing of components which could generates more revenues and help them to keep their

product cost low.

In year 1996 they entered in the field of the small home appliances, they started production of mixer

and juicer, dice washer, iron, toaster.

First time after its inception Videocon diverse it͛s business and selected a new field of energy by

entering into the business of Oil and Gas.

In 1998 they started manufacturing of compressor and compressor motor which help them to

reduce cost of the refrigerators and air conditioners.

One of the major achievements comes into the history of the Videocon when they took over Philips

India plant. Here Videocon made a significant impact on the Indian corporate.

This was time when Videocon wanted spread its wing for global business by acquiring Thomson

color picture tube business in year 2006. In the same year they took over Electrolux three plants.


*   " 0 & is the current Chairman of the company. Under his leadership

Videocon is increasing its height of business. *,!, is Chief Executive Officer of its consumer

durable business. There is a Board of Directors in Videocon that keeps the company on the path of

success. Name of the directors are following

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As any other company this company has many functions each and every function is very important

for the organization. Major functional areas are followings


In this they practice all the function of the finance. But major are followings

Control over all cash inflows and outflows.


Tight control over miscellaneous expanses


In this they practice every possible thing which develop and build the image of the company. Major

activities are followings



Marketing Intelligence

About Competitors

About dealers, sub dealers and distributors

Measuring impact of the marketing activities like

Road shows


Canter Activities
Dangler hanging, Postering and In-shopping

Advertisement in print & electronic media

Taking feedback of the dealers and distributors about advertisements

Design new marketing ideas to create awareness and image building

c ' 

In this area they use only one slogan

Reduce cost, gain market but never compromise with quality

Major functions are followings

Control over inventories (not more than 3days)

Reduce wastage

As this company is eco friendly, so they practice it in their production line also.

Energy efficiency

Use non conventional energy sources also (solar and wind energy)

  $ " 

Now information is the business, this line is in practice in Videocon. They provide best

possible information facility to their employee. They have their own intranet network inside
the organization. They have ÿ It gives employee to work from house and give direct

contact to the head office. Company provides enough facility to its employees to work inside

and outside of the organization. These facilities make them efficient and faster to work

proper and within given time. For all other information they have Videoconworld .com also.

It is the biggest source of information for internal and external customers. This site does not

only give the proper information about the company but also give information about

industry as well as. They have trend analysis of the industry which gives the visitors more

satisfy to visit the site.

6 !

As this company is stiff challenge from their competitors so they are focusing to recruit

people with passion of work for organization and they must have combination of creativity

and knowledge of how to implement plan properly.

Selection of right kind of people for right kind of job


Creating positive atmosphere for work

Enrich employee efficiency for productivity

Rate employee for their performance

Time to time development program for employee


There are few more functional areas also which are supporting other major functional areas.


This company has many MOD agreements with Sansui, Electrolux, Kenstar, Kelvinator and AKAI.

There is complexity for logistic department. They are responsible for dispatching all goods on time.

They are very important for the company and its logistic policy. Its Integrated Logistic Policy for all

the products and all brands is very useful. Their few rules are following

*V Delivery of all orders within 24 hours

uV All products should be delivered in proper condition

ËV There must not be any mismatch in delivered and ordered goods

V Defective good must be taken back to official warehouse

=  " : 

This company follows ISO 9001 as its quality tools as they are work in very competitive environment

so there is very less chance of error. By implementing ISO standards they are able to reduce the cost

of its product to give competition to its competitors. They never forget that safety and health

concern about its employees. So they can work in such atmosphere which enhances their


Videocon is major Brand in Consumer durables in India. Under the leadership of CEO Mr. K R Kim,

company has reached at the 2nd position in Indian market. The company is started its operation in

year 1979 with consumer durables business. Slowly and gradually this company gets 2nd position in

Indian consumer durables market. There were several players in the market like Philips, Bush,

Crown, Uptron, Kelvinator, BPL, Sony etc. After 1992, there were many foreign players entered in

Indian market like Samsung, Canon, LG, Sanyo, Electrolux, Thomson, Panasonic, Sansui, Akai, Toshiba

etc. These foreign players uprooted all the Indian players but not Videocon. With the continuous

R&D, Quality, large dealer Network and after sales service make a strong place for Videocon among

Indian customer.

Later Videocon has created not only its brand but also support few brands also. They signed MOD

(Marketing Operation and Distribution) Agreement with Electrolux AB, Sansui, Akai, Hyundai,

Toshiba etc. They not only support these brands but help them to grow in Indian market. Presently

there are six major brands in the basket of Videocon.

*V Videocon
uV Electrolux

ËV Kelvinator

V Sansui

iV Akai

+V Kenstar

All these six are very strong brands they not only give competition to LG, Samsung etc but each

other also. These brands do well in Indian market as well as in global market also. Few brands

are even brands with superior technology but Videocon treats them as their own brands. There

are following detail of the brands.



-'2".-0 72".

Videocon Group, the Rs 5,000-crore conglomerate, has embraced a new brand identity. The brand

has shed its solid steel 'V' for a more fluid, lava like 'V', coupled with a new proposition ʹ 'Experience

change'. Prior to this, the brand has banked on other propositions, such as 'Technology for health

and pleasure', 'Bring Home the Leader', 'New Improved Life', 'The Indian Multinational', 'Whatever

role life gives you, play it big', as well as the most recent one, 'Eco Logic for sustainable life'. The

company unveiled its new tagline recently, at an event promoting the 2009 chapter of the IIFA

awards. The new logo was unveiled in San Francisco, by the Videocon brand ambassador Shah Rukh







1.V Introduction
2.V Product lines and consumer behavior
3.V Growth of the industry
4.V Technology of production and distribution
5.V Marketing
6.V Innovation
7.V Strategies and competition in the industry
8.V Critical success factors



Overview of the Industry

The history of Indian television dates back to the launch of doordarshan, India͛s national TV network
in 1959. The transmission was in black & white. The 9th Asian games which were held in 1982 in the
country͛s capital New Delhi heralded the mark of color TV broadcasting in India. In 1991, Indian
economy was liberalized from the License Raj and major initiatives like inviting foreign direct
investments, deregulation of domestic business emerged. This lead to the in flux of foreign channels
like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. This virtually
destroyed the monopoly held by doordarshan. In 1992, the cable TV industry started which lead to

Every city in the India had a complex web of co-axial cables running through the streets with a new
breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in charge of
distribution. The film industry was shocked by this sudden growth and there were even organized
protests for calling off the Cable TV industry. There were simply too many cable operators in the
country and the channels had a difficult time in getting its returns as the existing system was a non-
addressable and the operators could simply give a reduced number of subscribers to amass profit.
This lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had
heavy financial muscles to make capital investments. . The MSO industry became highly
monopolistic which warrants government participation to ensure competition.

Later on, the United Front Government had issued a ban on use of ku band transmission. After a
change of government, the ban got lifted finally in 2001 and TRAI issued the guidelines for operating
DTH. Country͛s first private DTH license was awarded to Dish TV in 2003 which started operations in
2004. Prasar Bharati also started its product DD-Direct+.

DTH Digital TV system receives signals directly from satellite through the dish, decodes it with the
Set-Top Box and then sends stunningly clear picture and sound to TV which is the business under
taken by some companies by observing the rate of growth and scope for business & opportunity in
the Indian market which has 120 million viewers of TV.
With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth
prevailing every where. The average Indian͛s disposable income and purchasing has risen to never
before levels. The Indian entertainment and media industry is not far behind. It is currently
estimated at a worth of Rs.450 billion with a CAGR of 18% over the next 5 years. Terms which were
alien to Indian͛s like capital DTH, digital cables, IPTV are suddenly finding presence in the country͛s

In 2007, TRAI proposed a new initiative by name ͞Head end-In-The-Sky (HITS)͟ Model as an
alternative to the existing cable distribution. Instead of the MSO͛s providing the bundle, there will be
a single HITS operator who will prepare the bundle of channels and beam it to the Headed in the
satellite. The LCO͛s can receive this digitalized bundle and deliver to the individual homes. With HITS,
country wide implementation of CAS becomes instantaneous and cost-effective. This benefits both
the broadcasters and the customers by ensuring Addressability, Better quality of service and
increased number of channels. Another emerging trend is the IPTV which is yet to be regulated and
one can expect lot of action in this sector.

According to a report on Direct to home (DTH) service, it predicts that India would overtake apan as
Asia͛s largest DTH by 2010 and be the Asia͛s leading cable market by 2010 and the most profitable
pay-TV market by 20015.

List of players in the industry

ëV Doordarshan ʹ (DD-Direct +) of Prasar Bharati comprising of 33 FTA channels and 12 All India
Radio Channels.
ëV Dish TV of ZEE group.
ëV Tata Sky joined venture between Tata and Rupert Murdoch͛s Sky TV.
ëV Sun direct of Sun Network.
ëV BIG TV of Reliance Anil Dhirubhai Ambani group.
ëV Airtel digital TV of Bharati telemedia
ëV Videocon d2h of videocon industries
Categorization of players in the industry

Government owned player: DD Direct+.

Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon d2h

Brief profile of players in the industry

ïïVï V

Doordarshan is the public television broadcaster of India and a division of Prasar Bharati, a public
service broadcaster nominated by the Government of India. It is one of the largest broadcasting
organizations in the world in terms of the infrastructure of studios and transmitters. Recently, it has
also started Digital Terrestrial Transmitters. On September 15 2009, Doordarshan celebrated its 50th

Doordarshan had a modest beginning with the experimental telecast starting in Delhi on 15
September 1959 with a small transmitter and a makeshift studio. The regular daily transmission
started in 1965 as a part of All India Radio. The television service was extended to Bombay
(now Mumbai) and Amritsar in 1972. Till 1975, seven Indian cities had television service and
Doordarshan remained the only television channel in India. Television services were separated from
radio in 1976. Each office of All India Radio and Doordarshan were placed under the management of
two separate Director Generals in New Delhi. Finally Doordarshan as a National Broadcaster came
into existence.

National telecasts were introduced in 1982. In the same year, color TV was introduced in the Indian
market with the live telecast of the Independence Day speech by then Prime MinisterIndira
Gandhi on 15 August 1982, followed by the 1982 Asian Games being held in Delhi. Now more than
90 percent of the Indian population can receive Doordarshan (DD National) programmes through a
network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce TV
programs today.
DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and audio
programming to households and businesses in theIndian subcontinent. Owned by parent
company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD
plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and broadcasting.


Dish TV is the first private DTH satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using NSS Satellite at 95.0. Dish TV's managing director and

Head of Business is awahar Goel who is also the promoter of Essel Group and is also the President
of Indian Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish TV. Dish TV is a
division of Zee Network Enterprise (Essel Group Venture). EGV has national and global presence with
business interests in media programming, broadcasting & distribution, speciality packaging and
entertainment. Zee Network incorporated dishtv to modernize TV viewing. By digitalizing Indian
entertainment, this enterprise brought best television viewing technology to the living room. It not
only transmits high quality programmes through satellite; but also gives a complete control of
selecting channels and paying

DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Enterprises. Dish TV
is on the same satellite where DD Direct+ is. Dish TV started its service in Pakistan with the
collaboration of Budget Communication. Dish TV was only DTH operator in India to carry the two
Turner channels, Turner Classic Movies and Boomerang. Both the channels were removed from the
platform due to unknown reasons in March 2009. Dish TV uses NSS-6 to broadcast its programmes.
NSS-6 was launched on 17 December, 2002 by European-based satellite provider, New Skies. Dish TV

hopped on to NSS-6 from an INSAT satellite in uly 2004. The change in the satellite was to increase
the channel offering as NSS 6 offered more transponder capacity.


Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital compression technology,

transmitting using INSAT 4A at 83.0°. Tata sky is incorporated in 2004; Tata Sky is a V between the
TATA Group and STAR. Tata Sky DTH endeavors to offer Indian viewers a world-class television
viewing experience through its satellite television service. Vikram Kaushik is present CEO of Tata Sky
Ltd. The TATA Group is one of India's largest and most respected business conglomerates. It
comprises 93 operating companies in seven business sectors and diversified group: information
systems and communications, engineering, materials, services, energy, consumer products and
chemicals. The TATA Group has operations in more than 40 countries across six continents and its
companies export products and services to 140 nations.
The Group and its enterprises have been steadfast and distinctive in its adherence to business ethics
and their commitment to corporate social responsibility. This is a legacy that has earned the Group
the trust of many millions of stakeholders in measure few business houses anywhere in the world
can match. The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Tata
Sky the reputation of more than 20 years experience of satellite broadcasting. SKY is well known for
the innovative products and services launched by BSky, such as DTH broadcasting in 1989, digital
satellite broadcasting in 1998, interactive television services in 1999 and the SKY+ personal video
recorder in 2001. Tata Sky joins an international group of DTH businesses that includes platforms as
far apart as the UK and Italy in Europe, and Mexico and Brazil in Latin America. Tata Sky Ltd is the
First Indian DTH provider to be awarded the ISO 27001:2005 accreditation, the ultimate benchmark
for information security. The assessment for the certification was conducted by Intertek Systems
Certification, the management systems registration business unit of Intertek Group plc and is
accredited by several internationally-recognized accreditation bodies worldwide.

In October 2008, Tata Sky announced launching of DVR service $ > which allowed 45 hours of
recording in a MPEG-4 compatible Set Top Box. The remote is provided with playback control keys
and is being sold with special offers for existing subscribers. Tata Sky was selected as a SUPER
BRAND for the year 2009-2010 by an independent and voluntary council of experts known as Super
brands Council. It is the only Indian DTH to have won this distinction.

Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression
technology, transmitting using INSAT 4B at 93.5°E. It is the country's first MPEG 4 technology DTH
service provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Nadu. Sun
Direct TV was registered in February 16, 2005. However, the failed launch of INSAT 4C resulted in a
lack of transponders, delaying the launch. The service was finally launched on December 2007 after
availability of transponders from INSAT 4CR. Because of the lowest pricing of any DTH in India Sun
Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and
announced its pan India launch. By 2009 it became leading DTH provider with 3 million subscribers.
This makes it 4th largest DTH service provider of India. In April 2009 Sun Direct officially launched its
High-Definition service in India.

Sun Direct uses the latest MPEG-4 based technology to increase broadcast capacity.

Sun Direct provide next-generation services in fast-growing and emerging markets quickly and
efficiently. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven
real-time scalability allowing it to consolidate billing operations, enables powerful new service
offerings and improves visibility into customer information across services.

˜ V V

Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai, using MPEG-4
digital compression technology, transmitting using MEASAT-3 91.5°east. It is the 5th DTH service
launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of
Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian business
tycoon and owned by his son Anil Ambani. BIG TV started operations from 19 August 2008 with the
slogan "TV ho Tho BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to 200 channels
and many interactive ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as many
Radio channels. The company plans to increase the number of channels in the near future to 400
and begin High Definition (HD) broadcast. It is the first Pan-India DTH provider that uses MPEG-4 for
broadcasting. There are also plans to introduce services like i-Stock, i-News and other such
interactive services in the future.

Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing the consumer with
quality and enriched home entertainment service at value-driven pricing. Reliance BIG TV's launch in
August was probably the biggest roll-out in home entertainment ever and deployed the most
advanced MPEG4 technology that enabled them to deliver best quality digital audio-video to the
consumer. It also got prepared for the future when Hi-Definition TV will be launched in India
because only MPEG4 technology can support HD TV and not MPEG2 which is used by the earlier
entrants in the DTH industry.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in India. This was
literally unheard of in the DTH industry. They had effectively out-stripped the competition here.

When it came to pricing ʹ packaging, their introductory offer stood at Rs. 1,490 - with 3 to 6 months
of free subscription. They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH





Airtel Digital TV is a DTH (Direct to Home) service from  Airtel. It uses MPEG-4 digital
compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E

Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come Home to the
Magic. Since then it has launched 2 other campaigns: ͚Stars come home͛ (March 2009) and ͚DTH
Picture Clarity (August 2009) has increased its channel base to 183+ channels. Airtel digital TV is now
amongst the fastest growing DTH brands in the country and is available across 5000+ towns in India.
It has also been ranked as the best DTH service by ͞Living Digital͟ magazine.

Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright future in Indian
market as the people are getting more attracted towards DTH because of its quality and


Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4 with DVB
S2 digital compression technology

Videocon Leasing & Industrial Finance Limited was incorporated on 4th September, 1986 as Adhigam
Trading Private Limited. In terms of the necessary resolutions

Passed under Sec. 21 of the Companies Act, 1956, the name of the Company was changed to
Videocon Leasing & Industrial Finance Limited on 14th February, 1991. The Company received a
fresh certificate of incorporation from the Registrar of Companies, Gujarat at Ahmedabad on
14thFebruary, 1991.

Videocon d2h launched May 1, 2009. it came with a very good strategy for selling both of its
electronic products like TV͛s DVD͛s along with the new set top box. This is offering direct to TV with
out any set top box also. Only the antenna is enough, it also came with DVD which is connected
directly to the TV or antenna is connected to DVD which gives a best quality of out put.

Product Lines And Consumer Behavior

Range of products

ëV Set-Top-Box.
ëV Head-Antenna.
ëV Cable
ëV Remote

Product description


The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.


Antenna which receives signals directly from satellites,


Cable connects antenna to the set up box


One of the recent entrants into DTH industry is vediocon. This came with set top box with DVD

The access card is another important thing in the set top box setup

Where the access card will receive the signals directly from satellite trough head top antenna


Some companies are offering the whole set of LCD TV with DTH connection

Ant in the case of cathode ray tubes and in case of PLASMA


A compactable remote for both SET UP BOX and TV is used in operating both TV and Set top box.

Complimentary Goods

LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic and paper which are
used for recharge cards.


Local Cable Operators, Inter-Net which is bringing many facilities like live TV channels, along with the
net browsing, Theaters, radio stations, I pods.


Growth Of The Industry

Rate of Growth

The DTH service market in India has emerged as one of the most lucrative markets which have
successfully resisted the impacts of the current economic slowdown. The slowdown has certainly
proved a boon for the Indian DTH industry as people have now started to cut on their entertainment
expenditure and instead of viewing movies at theatres, they are preferring to stay at home with
their television sets.

With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth
prevailing every where. The average Indian͛s disposable income and purchasing has risen to never
before levels. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009
and the numbers are forecasted to surge further at a CAGR of around 30% through 2012, "Indian
DTH Market Forecast to 2012*20% annual growth is being witnessed in the DTH sector in India with
over 8.5 million households having digital pay-TV.

A report attributes that the anticipated growth to the efforts of DTH industry players who are all
trying to lure viewers by cutting down prices as well as offering perks even though it translates into
loss of Rs 1,600-2,000 on each new subscriber acquired by them. They have started to offer a
number of value-added services such as 'movie on demand', live recording of TV content,
matrimonial match-making, etc.

Pattern of Growth

The big game is all about shaping up grandiose plans to master the winning rules to garner as much
portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes big
value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up
price wars, discount schemes, procurement of transponders, ambitious targets for improving the
subscription base, popular bouquet of channels, set top boxes with superior quality of videos,
improving content, etc as a desperate means to entice the Indian viewer.

The pattern of growth is very difficult to determine because a business cycle takes place in long
term. But this industry is having very short period for making or observing a business cycle.

The analysis that can be made is though the economic cycles is not continues and it was in boom
then when the industry started and now just the economy is in recovering stage from the recession.
Interesting factor is that all the industries are hit seriously buy the rescission but DTH industry has
reported growth continuously but only it has slowdown the rate of its growth. Now the industry is
growing at 20% for every annum.

Growth Determinants

Demand constraints and SCAR are the factors which effects the growth of the industry. Growth
determinant and high TV sales increase the chance for more sales of set top box which will effect the
growth. When the facilities of the products increase it acts as a growth determinant.

The entertainment channels and the news channels players increase the growth to opt the DTH.
Some of the DTH players are bringing innovative plans like live shopping, broad band, and etc will act
as growth determinants.

Technology Of Production And Distribution

Cost Structure

The costs incurred by the DTH players is mainly on its technology, satellite dish, set top box
accessory cards, Ku band transponders in the satellites, customer premise equipment(CPE). The
launch of satellites is another huge cost which the DTH plays shares the transponders. And it costs
them much than any thing. Another cost incurred is on operating cost.

Economies of Scale

Economies of scale may be utilized by any size firm expanding its scale of operation. The common
ones are purchasing (bulk buying of materials through long-term contracts), managerial (increasing
the specialization of managers), financial (obtaining lower-interest charges when borrowing from
banks and having access to a greater range of financial instruments), and marketing (spreading the
cost of advertising over a greater range of output in media markets).

Cost Advantages

1] Direct customer relationship.

2] Better storage

3] Extensive use of resources.

4] Availability of labour at cheap rates

Economies of Scope

An economic theory stating that the average total cost of production decreases as a result of
increasing the number of different goods produced.
Often, as the number of products promoted is increased and the DTH players used, more people can
be reached with each rupee spent. These efficiencies do not last, however; at some point, additional
advertising expenditure on new products will start to be less effective (an example of diseconomies
of scope). If a sales force is selling several products they can often do so more efficiently than if they
are selling only one product. The cost of their travel time is distributed over a greater revenue base,
so cost efficiency improves.

There can also be synergies between products such that offering a complete range of products gives
the consumer a more desirable product offering than a single product would. Economies of scope
can also operate through distribution efficiencies. It can be more efficient to ship a range of products
to any given location than to ship a single type of product to that location.

Value added

Many players are using this DTH as the basis and giving many value added services to the customers.
Some of the players are giving best valued services to the customers like Airtel gives live-news, home
shopping, live gaming, broad band, horoscope, radio, and etc. Tata sky is giving recording for more
than 4 hours, and came with a differential strategy of Tata sky+ with other facilities. Big TV is giving
live with Big movies, Dish TV is giving live TV on the wheels, and many other value additions.


Logistics is still a nascent and fragmented industry in India. It is estimated that while outsourced
logistics accounts for 54% of total logistics spending in India, organized players have only 10% of the

DTH industry follows a good logistics which is as similar to the logistics which are used buy
automobile industry, for the effective management of the DTH industry.


Labours are included in every activity of the business, most of the people working are not daily
labours, they are employed and paid monthly in the form of salary. DTH requires skilled labor like
management executives, administrators, software engineers, sales executives and attorneys.

Market segmentation, marketing strategies, marketing practices and marketing concepts specific to
the industry

Indian TV channel broadcast 15.7-mn advertisement every year, which totals to 362-mn seconds of
TV advertisement every year. India currently has over 400 channels.
TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to go hike in
advertisement rate this year by 16-18%. Market segmentation in DTH industry mainly concentrates
on women who don͛t like missing their daily soap and news more ever women are able to learn
English speaking which is a very special feature of DTH. DTH also concentrates on children also by
providing them games, dictionary, some discovery videos specially inbuilt, maths, science and social
knowledge. It also focuses on old people as it has updated videos of various holy and religious

DTH uses different marketing strategies for promotion and sales of its product. It gives
advertisements with their brand ambassadors which attract customers, door to door selling, on the
phone selling, discount and offer sales, packages, etc

Marketing practices is a continuous process as the competition keeps increasing among the players
in the industry. Each player is investing lots of money in promoting there brands. Many players are
making advertisement with movie actor and actress as brand ambassadors for their products
because DTH is mainly considered with entertainment.

Some of the companies like Tata sky is having Super Star Amir khan as brand ambassador and Airtel
is having many film stars like kareena kapoor, A.R.Rehaman, saif ali khan, etc. Dish TV is also having
Super Star Sharuk khan as the brand ambassador.

Sun direct also uses southern actress for their brand promotion. Marketing practices are the
decisions taken by the manufacturing company to increase sales, expand themselves into many
areas etc. Successful marketing practices bring sale up, while unsuccessful marketing practices have
no impact on sale or negatively impact sale.Marketing concepts specific to the industry is primarily
targeted at a niche segment who buy the TV sets from the electronic retail chains.

Types of innovation, concepts of innovation relevant to the industry, source of innovation, rate of
innovation and economies of scale.

The concept of innovation in DTH industry is INCREMENTAL innovation; every thing that is done is
due to constant research of many marketing and analysts to bring many innovations to the existing
products in the DTH industry. Incremental innovation is the apt innovation which is suitable and all
the DTH players are concentrating up on.

This innovation makes the business to grow continuously and brings advantages to the customers
using the products and the service.

There are many sources of innovation for this industry as mentioned in the above, the technology
and the people are the main sources for the innovation. Customer͛s opinions and their needs can be
served by providing a service which is matching to their needs and requirements. In this days every
company setups its own R&D in its own company with very intelligent people for meeting the
expectation op the customer.

Digital TV, the DTH service from Airtel, has announced India͛s first skin integration innovation on its
EPG screen in partnership with Yahoo. Yahoo takes forward its latest brand campaign ͞YOU͟ in this
first of its kind partnership where an online portal will use DTH as a medium to promote itself.

The ͚Electronic Programming Guide͛ screen on Airtel digital TV is now completely integrated with
Yahoo India͛s homepage. Customers will find a message ͚Fill your home page with all the things that
make YOU͛ when they log onto to the EPG screen. A prompting ͚Red Button͛ will take them to a
dedicated landing page that elaborates the offerings on Yahoo India͛s new home page. The ͚YOU͛
campaign enables users to customized the home page as per their liking and empowers them with
the choice to integrate social applications such as Facebook with their Yahoo homepage. This whole
idea was conceived by NetworkPlay, right from design elements to execution and thanks to
Mindshare for buying into the idea and flawlessly helping people execute it.
Tata Teleservices Limited has announced a technological breakthroughͶa first-of-its-kind innovation
in India with the launch of TATA Photon TV, a new application that allows Tata Photon Plus
subscribers to watch live television channels on their laptops while on the move, and on their
personal computers at home and in the office. The Photon TV service is exclusively available to
Photon Plus users. ͞With its growing popularity, Photon Plus has caught the admiration of millions
of users across the country, with its high-speed data access capabilities and the ease of mobility.
TATA Photon TV is a personal computer- and laptop-based video-streaming application, which allows
Tata Photon Plus users to view live TV feed from various sports, news, entertainment and regional
channels, and to watch recorded TV shows from the library (viz Coffee with Karan, Zoom, Pogo, etc),
movies, music and videos on demand.

Internet Browsing charges will be charged as per your Photon+ tariff plan and it would be applicable
while viewing Photon TV. These charges would be over and above the subscription charges for the
Photon TV. (approximate data usage is 1-2MB per Min).

Rate of innovation in this sector is growing at a faster rate in the recent years where as it is not very
impressive before this period.The reason for this is the fair competition between the all players in
this DTH industry. It led to the development of new products in this sector which also led to the
diversification of products as there is abolition of entry of foreign industries into Indian industries
initially. It also made the industries in this sector to establish their own R&D departments for
successful product innovations like Airtel Live, Vediocon d2h.

The brand loyalty for each and every company is very high, so there is no need of lot of costs to be
pored in marketing and promotion of the service and product.

Every function that is performed by the players is a well planned and executed properly.

So in all the areas those players are using the expertise people in the industry and performing
operations in DTH industry very economically.

Strategies And Competition In The Industry

Competitors, Strategies used in the industry, Porter͛s generic strategies model, porter͛s five forces
model and analysis using it, element of industry structure, porter͛s value chain model analysis, swot
analysis, concept of generic value chain, concept of growth share market matrix, company position .


Every company has its own goal, every company wants to achieve and full fill its goals, many
companies like the big players in the industry wants to grab most of the market share. Some of the
companies want to achieve 10million customer base by 2010 they are Dish TV, Tata sky, Sun direct,
BIG TV etc.

The industry͛s objective is to achieve 60million customers buy ͚2012͛ i.e., nearly 50% of the present
existing customers.

Strategies used in the industry

Technology transfer is one of strategy used in the industry and it is existence for a long time. In
recent decades, concerted effort has been made to exploit the existing technology to a larger extent
by transfer of technology, to generate greater economic impetus. It provides opportunity to
generate larger returns on the investments made in R&D. Its importance lies in its ability to
stimulate and strengthen the innovation process.

Porter͛s generic strategies model

Generic strategies were used initially in the early 1980s, and seem to be even more popular today.
They outline the three main strategic options open to organization that wish to achieve a sustainable
competitive advantage.
The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus

1. Cost leadership

In the case of media products, means they should be offered at a price lower than their competitors͛
but with as good benefits, or, the unique benefits the media products offer can over-offset the


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                 . A
media organization with a target user loyalty can concentrate more on how to fully meet the target
user͛s needs rather than on product cost saving.

3. Focus

Focus strategy is also known as a 'niche' strategy. The clutter of ads has now spilled out on the
number of channel availability due to which people are spoilt for choice. Thus Niche channels are the
only way to maintain viewer loyalty. TATA Photon plus is more niche oriented.


Growing number of player and competitive advantage.

Supply creates its own demand.

Brand name

Service and flexibility.


Skilled labour

Satellite technology


Viewer migration.

Uncertainty in viewer ship.




Value adding

Economic downturn.



Cinema halls
Broad casting of channels

New entrants

Porter͛s five force model

The five forces which one must consider to analyze any industry are the rivalry between the firms
within the industry being analyzed, the bargaining power of buyers, the bargaining power of
suppliers, the threat of substitute products or services, and the threat of new entrants (also known
as barriers to entry). They are also shown in the diagram below. Initially propounded by Harvard
Business School Professor Michael Porter, the Five Forces framework has been accepted as a
strategic framework which one can apply to analyze any industry.

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DTH gives stiff competition from the terrestrial, cable & IPTV. As per the industry estimates, there
are 130 million TV homes of which 71 million are served by cable and around 6 million served by
DTH with the remaining taken by terrestrial transmission. As IPTV is a new entrant there is not much
data on its subscriber base.
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DTH industry relies on three major suppliers. Customer premise equipment (CPE)

Comparing of the satellite Dish, Set Top Box with the necessary Access Card, the Ku band

transponders are obtaining satellites and content. With India set to overtake apan as Asia͛s largest
DTH by next year, the bargaining power of India DTH operators with CPE suppliers have been
steadily increasing.

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With enough operations to choose both from the point of alternate mediums like cable, IPTV and
terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to
decide. Customers will continue to have a high bargaining power until DTH platforms try to
differentiate them as superior players with better content and clarity.

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With 3 operational players and 4 players in the queue, inter firm rivalry is quite high.

The competition from state owned DD-Direct to private players in negligible from the content point
of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not
change any monthly subscription charges. Between Dish TV is Tata Sky there is an intense rivalry
exhibited by price war and discount schemes offered to new connections. Being the first mover, dish
TV had price advantage in both the STB offers superiors DVD quality Video to its advanced STB.

While Dish TV is planning to spend Rs. 850crs over the next 3 years, the rival TataSky is willing to
spend Rr.2000crs over the medium term. The companies have also set ambitious targets with Dish
TV aiming to reach 5 million subscribers in the next 18 to 20 months while Tata sky aiming to reach
8million subscribers in the next 18 to 20 months while Tata sky aiming for 8 million subscribers by

With already 7 player͛s space in the DTH space, threat of new entrants is low. There is already
enough competition which will discourage new firms to enter this business. While getting a licensee
is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the
required transponder. There is a definite, first mover advantage.

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Porter͛s value chain analysis is considered with the value analysis of the several functions of the DTH
industry, it makes to understand the importance of this model to develop and add on value to the
present features of the industry and it͛s functioning.

Value analysis says that an effective logistics should be undertaken to commencement of the
business in cost effective way. The most the cost effective, the more value is added to the process.
It is noting but proper or optimal use of the resources present and using the technology. This value
addition is not only in the logistics, it should be carried in all areas of the management, production,
distribution and etc. Thus DTH industry can increase its value addition to the customers and the
features and of industry.

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The BCG ʹ GROWTH SHARE MATRIX is a portfolio planning model developed by Bruce Henderson of
the Boston Consulting Group in the early 1970's. It is based on the observation that a company's
business units can be classified into four categories based on combinations of market growth and
market share relative to the largest competitor, hence the name͟ growth share͟.

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~ To make students aware of market where exactly

They have to work (real work situation).
~ To create awareness in the students about their
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Future in their stream they are adoting for(specil

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d)V Proper addressability is re uired or the product.

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project report ollowing re erences are considered

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~ Name of the Dealer :- ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙...

~ Address Contact no :-͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙...


~ Monthly Turnover :-͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..

Dealing in brands :-
Videocon D2H ͙͙͙

Tata Sky ͙͙͙

Dish TV ͙͙͙

Airtel Digital TV ͙͙͙

~ Mode of purchage :- a) Direct ͙͙͙͙͙..

b) From distributer ͙͙͙͙͙..

Questionnaire for Dealer

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