Published by MBA Skool Team, Last Updated: August 19, 2017
Marketing Strategy of Tata Sky analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Tata Sky marketing mix, help the brand succeed.
Tata Sky marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Tata Sky Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Tata Sky Product Strategy:
The product strategy and mix in Tata Sky marketing strategy can be explained as follows:
Tata Sky is one of the well renowned DTH operators in India. Tata Sky provides direct to home platform for content ranging from movies, news, sports and entertainment. It provides product under following categories as part of its product offering in its marketing mix:
• Pay TV and OTT services
- Tata Sky SD: Offers DVD quality picture and CD quality sound
- Tata Sky HD: Offers high definition viewing with surround sound and 1080i resolution at 16:9 aspect ratio
- Tata Sky + HD: Provides 1080i resolution with Dolby Digital surround sound and allows simultaneous recording up to three shows or programmes
- Tata Sky 4K: Provides ultra-high definition viewing (4 times the resolution of full HD)
• Tata Sky Mobile App
Pay TV and OTT (over the top services) are provided through set top boxes, the company was pioneer in HD set top box segment and Personal Video Recording (PVR) service offering in India. Tata Sky mobile app offers Live TV services alongside more than 3000 titles on demand.
Tata Sky Price/Pricing Strategy:
Below is the pricing strategy in Tata Sky marketing strategy:
Tata Sky begun its services by targeting Tier 1 cities initially, thus charging premium price for quality services.
However, there was a paradigm shift in its pricing strategy from 2008 when it adopted competitive pricing to penetrate market. Tata Sky follows a product line pricing in its marketing mix where it prices its different offerings like SD, HD and HD+ subscription at different price level, Tata Sky provide special discounted packages like Platinum to incentivise longer term packages. The company has segmented price levels for Kids, Sports, Music, and other packages. Tata Sky also adopts Optional-Feature pricing wherein it provides base packages at competitive prices but charges premium for add on services. General format of pricing offered to customer is a base package plus add-on packs, Tata Sky service packs and Special Packs. Customer are also offered regional language packages at competitive prices. To promote its newer product offerings, Tata Sky prices its services at discount, bundled with new product, like with the purchase of new set top box for multi TV subscription the channels are provided at fraction of normal prices.
Following is the distribution strategy in the Tata Sky marketing mix:
Tata Sky’s current footprint in India is spread across 2 lakh towns and 17 million connections. Tata Sky has adopted service as its key differentiator with no differentiation possible with content and pricing in competitive market. Sales representative and trained service personnel are deployed at every point of sales. The company has set up 24x7 call centres in 14 languages across country with trained multi-lingual professionals. There are more than 600 channels available for Tata Sky subscription. Online account management facility is available to facilitate customers to modify their subscription and pay bills online.
Content related services also available through mobile app platform.
Tata Sky Promotion & Advertising Strategy:
The promotional and advertising strategy in the Tata Sky marketing strategy is as follows:
Tata Sky vouch for creating emotional connect through TV commercials and contracting popular celebrities for endorsing the brand. Paid media both online and offline such as TV, newspaper, magazine, and sponsorships are utilized to communicate brand offering. Tata Sky has sponsored popular events like IPL to show its ads and brand. The distribution channel also helps in displaying ads. Owned media such as Tata Sky’s webpage, brand brochure, blog is used as a part of campaign. The company has used digital and social media to improve engagement with the customers. To create bond between characters and consumers customized Facebook and Twitter pages have been created. YouTube videos and competition have created buzz and increased involvement of consumers in campaign and thus extended the recall.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Tata Sky.
Tata Sky has over 16000 employees, focussed on provide exceptional service to customers. The company values services as its differentiation proposition and hence invest a lot on training work force. It emphasizes on providing an environment to develop, discover and demonstrate talent. Tata Sky offers 24x7 multilingual support services which requires extensive training focussed on consumers and interpersonal communication. Training sessions are aimed towards developing cross-functional knowledge to its employees. Tata Sky maintains flat organisation and transparency to focus on innovation. The organisation values Leadership, enthusiasm, innovation, agility, teamwork, decisiveness, and integrity in its employees.
Tata Sky is first Indian DTH provider to get ISO 27001:2005 accreditation a benchmark for information security. Tata Sky has won numerous awards over the years like Best DTH brand of the year and Product of the Year – Tata Sky + HD from ET brand equity which provides evidence of company’s commitment towards providing best in class service to its customers and bringing innovation into the Indian DTH market place. Tata Sky is present in over 2 lakh towns and it serves as platform to provide content in 14 different languages. The company is focussing on improving online experience of its customer through online account management services and mobile application.
Tata Sky must come up with frequent innovations due to competitive and dynamic environment of the industry in which it operates. Tata Sky has invented significantly to upgrade its technology and come up with new line of services. To provide superior technology and support service the company has collaborated with global leaders and has made significant investment in digital infrastructure. Tata Sky has pioneered to bring many new features like Video on Demand, DIY video library to provide better consumer experience. The company strives to provide customized offerings like Actve Vedic Maths, Actve Javed Akhtar to the Indian market. This completes the Tata Sky marketing mix.
About Tata Sky:
Tata Sky Limited is one of the leading Direct to Home(DTH) service providers in India. Tata Sky was incorporated in 2001 and is a joint venture of TATA Sons and 21st Century Fox which hold 60% and 30% share in the company respectively. 10% stake in the company was picked up Temasek Holdings of Singapore in 2008. Tata Sky started its operations in 2006. 21st century fox owns Sky in UK and uses its brand name. India is world’s largest DTH market in terms of number of subscription. As per 2016, there were 62+ million active DTH subscription in India. Indian DTH market is served by 6 paid service providers and 2 free service providers.
Tata Sky holds a one-fourth market share of among paid DTH operators. Tata Sky’s annual revenue is approx INR 4,500 crores.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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