Marketing Management Assignment Prof.

Nagaraj

IPTV & India Is Indian Consumer ready for it ?

Market Research Exercise

Done & Presented by MM Group H EMBA Rahul Ranjan Roopa Kushtagi Ritesh Kesharwani Ved Prakash Jayesh Dubey

28th Nov 2009

Agenda & Tentative Timelines

IPTV Basics/ Market Drivers Jayesh 2 Minutes Approach/ Scope / Design - Exercise Ritesh 2 Minutes MR Data Presentation Jayesh 3 Minutes Key Observations Rahul 3 Minutes Conclusion & Recommendations Roopa 3 Minutes Key Learnings & Takeways Ved 2 Minutes

Question & Answers Group 5 Minutes

Total 20 Minutes

IPTV Basics
IPTV is a form of video service that uses Internet Protocol for communicating data (video signals are converted into data) on a network.
Telecom Network

Voice
Live Video Feeds

Video Data/ Internet

IP over Media Set Top Box

Headend
Internet Cable TV Conventional cable TV services transmit dozens of channels all at once via a fixed cable. The content of all channels flows into the subscribers home, and the subscriber selects which channel to watch using a set-top box. Internet TV Internet TV uses the public Internet IPTV In the IPTV system, the subscriber uses the Set Top Box to request transmission of only the specific channel required at that time, and only that channel is transmitted.

SERVICES THROUGH IPTV Private Recording Video on Demand Any Time Watch Channel Customization Triple Play Voice Videos Data/ Internet Online Shopping Video Conf./ Call Pre Programming Ad. Of Choice Online Gaming

IPTV IPTV services are provided via service-specific closed networks.

IPTV Basics

IPTV Home Page

Video on Demand

Converged Bill for Phone/ Internet & TV Service

Current Indian TV Viewership Scenario

Satellite / DTH TV 14%

Cable TV 47%

Terrestial TV 39%

Source: Business Line, THE HINDU. Oct , 2009

Terrestrial TV Homes : Cable TV Homes : DTH/ Satellite TV Homes : Total

55 Mn or 5.5 Crores 65 Mn or 6.5 Crores 20 Mn or 2.0 Crores 140 Mn or 14 Crores

Forces Shaping TVs Future

Regulation

Market Opportunity

Market Dynamics

Better Video Compression Moores Law Content, Ad Models

Broadband IP Networks

Approach
Definition of Scope for the Exercise
Identifying the Objective/s Planning Project Plan Resource Plan & Responsibility Allocation Product Knowledge Gathering Questionnaire Finalization

Focus on various factors and key aspects of doing a Identifying the Sample Respondents Market Research, processes Data Collection & Tabulation to be followed and key learning
Data Analysis
Presentation

Scope of the Exercise

To understand the process and steps involved in a Market Research Exercise. Focus on various data collection methods, tabulation and analysis aspect of it. Try to understand the pitfalls and learn What not to do

Design
Since IPTV is a future product for India a deliberate attempt was done not to ask direct question about the service but to take an Indirect approach to find out what are the latent requirements still unfulfilled for a regular TV Viewer and what would made them switch to a new service

Questionnaire was designed to capture: Demographic Details Current TV Viewing Windows & Duration patterns Current TV services Quality Current TV Services Rates Current TV Services Variety & Novelty Requirement for a new service

Sample Size of at least 50 respondents was targeted and achieved

Presentation of Market Research Data

Demographics

Service Charges
Viewing Window Quality of Service (QoS) Variety in Services Next Generation Services

RESEARCH STATISTICS

Sample Size: 50
Female 42%

Male 58%

35-40 Years

Sample Size: 50
Age (years)
30-35 Years

25-30 Years

20-25 Years

10

15

20

25

30

35

40

Percentage (%)
Females Males

TECHNOLOGY SAVVY

DVD Player 21% Home Theatre 6% X-Box 2% Music System 17%

Phone 21%

IPOD/ PMP 9% Blackberry 3% Laptop 21%

TV SERVICES TYPES

IPTV 4%

Terrestial 0%

Satellite 44%

Cable 52%

MONTHLY EXPENSES ON ENTERTAINMENT

Rs 5,000 & Above 10%

Rs 0 -500 12% Rs 501-1,000 20%

Rs 2,001-5,000 32% Rs 1,001-2,000 26%

62%

16%

16% 6%

150-200

200-350

300-400

I Dont care

Monthly Expences for TV Service Only

VIEWERSHIP RATE

41%

59%

Weekdays

Weekends

VIEWERSHIP RATE (WEEKDAYS)

VIEWERSHIP RATE (WEEKENDS)

10 Hrs & Above 8 - 10 Hrs 4 - 8 Hrs 2 - 4 Hrs 0 - 2 Hrs 0% 5% 10% 15% 20% 25% 30% 35%

10 Hrs & Above 8 - 10 Hrs 4 - 8 Hrs 2 - 4 Hrs 0 - 2 Hrs 0% 5% 10% 15% 20% 25% 30% 35% 40%

Hours (hrs)

Hours (hrs)

Percentage (%)

Percentage (%)

BETTER QUALITY WITH HIGH PRICE

Yes, if not substiantially high 38% Yes 28%

No 34%
SERVICE QUALITY AND CONTENT vs MONTHLY CHARGES

80/20 20% 20/80 8%

30/70 14%

No 76%

Yes 14%

70/30 58%

No Answer 2%

Yes, if charges substantially less 8%

COMPROMISE ON QUALITY BASED ON CHARGES

INTERNET ON PRESENT TV SERVICES ?

Yes 6% What is Internet 0% Dont feel necessary 34%

No, but love to do 60%

IMPORANTCE OF CUSTOMIZATION OF SERVICES
WHICH IS BETTER ORGANIZED (SATELLITE vs CABLE TV) ?

Who Cares 10% Agree 48%

Satellite TV 86%

Doesn't Matter 2%

Dont Agree 42%

Dont know Sattelite TV 4%

Cable TV 8%

Government of India Should Decide What I Watch ?

Who Cares 2%

No Response 2%

Yes 14%

No 82%

30%

Recording
12% 30%

2% 28% 8% 26% 12% 18% 2% 14%

Any Time Watch Channel Customization

Triple Play

Prioritization of Features/Facilities for a new TV Service

Highest Priority
TV Suggestion Order Food

8% 12%

Least Priority

Video Call

2% 8% 22% 6% 6% 6% 24% 6% 16%

Camera Angle Change Pre Programming

Ad of Choice

Multi Channel View Screen

Monthly Rental charges that A next generation TV Service would command

My Choice 42%

399-499 42%

649-749 8%

549-599 8%

KEY OBSERVATIONS
The research indicates: Consumers are aware of current technological advances including those in TV services. The attributes available in IPTV is greatly valued by majority of middle aged population (20-40 years). Despite the average monthly expense of Rs. 2000 and above on entertainment, the apprehension of consumers towards IPTV is evident. Govt. Of India interference Something to watch out for in Broadcasting policy against on demand feature of IPTV. It can become a limitation going forward.

KEY OBSERVATIONS
Consumers fails to see IPTV as a bundle of attribute that can enhance their entertainment experience. Availability of internet, call and conferencing facility, choice and ease of TV viewing, and many such augmented facilities can help in reducing peripheral expenses of consumers which they inevitably incur. Myth Busting: Certain features like Ordering food through TV & preferred camera angles are actually not preferred by many

KEY OBSERVATIONS
Service is heavily dependent on the broadband internet capacity for high quality audio/video. Premium price launch of the product in India not possible because of price sensitive Indian population

Service heavily focused on Tech Savvy People.

CONCLUSION
Conclusion of the Survey

We as a group feel after the survey and the analysis of its results that the Indian Consumer is
Quality Conscious Price Sensitive Demands more Variety & Flexibility Looking for value for Money and is definitely looking for a service which can meet its entertainment expectations with the parameters mentioned above

RECOMMENDATIONS
Marketing strategies should be designed for appropriate positioning of IPTV Consumers should be made aware of the gamut of attributes that IPTV possesses As price of this product seems to be its greatest driving force, promotional offers like live demonstration, discounting and free trial period scheme could be adopted to provide the initial push Superior Quality of Audio/Video should not be compromised as IPTV service is looked as a synonym to quality by Indian population

Key Learning & Takeaways

Sample Selection Strategy should be comprehensive Questionnaire Design, Flow and Execution should be flawless Personalized approach to collect data gives complete & better results

MS Excel is not the best tool to do data analysis

Product Knowledge is a must to design & execute a research program Sometimes Indirect approach is better than direct approach Group / Team should be highly motivated and sincere in the effort Some questions need to be there to keep the respondent engaged

Questions ..

THANK YOU