Neha Thorat (PGP30321)

Review of Parent Brand

Review of Airtel Digital TV

Review of Product Category

Contents

#1 in India

#3 Globally

20 countries

303 million subscribers

Outsourced core

operations

31%

revenue from international operations

Company overview

Outsourcing partners for Network & IT operations

Company overview

India Wireless50%

International Wireless

31%

Telemedia4%

Digital TV2%

Tower Infrastructure

6%

Airtel Business7%

Diversified portfolio ensures steady stream of revenue with

minimisation of risk

1998

Launched in Delhi and HP

2004

Pan India footprint;

India’s largest telco

2008

Launched DTH services

2010

Launch of new brand

(Rebranding)

2011

Launched 3G services

2013

1st to launch 4G in India

FY14 Revenue: $14.2 billion

Major Milestones

DTH TV - Category Overview

Dish TV27%

TATA Sky19%

Airtel TV17%

Sun Direct15%

Videocon13%

Big TV9%

Market share (by subscriber base)

Terrestrial, 32%

Cable, 57%

DTH, 11%

Overall Market by Subscriber base

CAGR of DTH market (2013) 19 % Estimated active DTH users by 2023 70 million Estimated TV market share by 2023 39%

As the numbers indicate, DTH in India is a promising market and only poised to grow

Airtel TV

Launched in 2008

5th DTH operator in India

9.5 million subscribers

Present in 639 districts

3.6 US$ ARPU

Airtel TV - Overview

Brand Ambassadors

Parent Company Bharti Airtel

Category DTH & Broadcasting

Sector Media & Entertainment

Slogan Come Home to the Magic

USPException viewing experiencing using MPEG-4 Technology

Airtel TV – SWOT Analysis

• Adding international channels

• Revenue from interactive services

• Rising customer acquisition cost

• New regional entrants with cheaper offerings

• Limited market share

• Inefficiency of DTH in bad weather conditions

• High brand equity

• Extensive distribution channel

• High brand recall

Strength Weakness

OpportunityThreat

Airtel TV – 4 Ps

Product

• Satellite TV

• Digital Video Recorder records & stores video

• Supports interactivity

• SD, HD & On demand channels

• Mobile TV option included in DTH package

Price

• Based on region, service duration & type of STB

• Basic pack, combo pack & a la carte pricing

• Pre-paid recharges only

Place

• Airtel specific stores, Digital stores in malls, Retail outlets for mobile & TV

• Airtel TV connection obtained online via Airtel’s website

Promotion

• Endorsed by Saif& Kareena

• Airtel sponsored events

• On demand recent releases on Airtel TV

• Frequent VAS offerings to attract new consumers

Airtel TV – STP Analysis

Segment Working Men ( Decision Makers)

Target Group 25 years+ middle income group and above

Positioning Viewing on Airtel DTH is a superior, magical experience

Segmentation

• Working men

• Decision makers for home electronics purchase in family

Target Group

• Age: 25+ years

• More modern, living in nuclear families

• Income: Middle income group of men & above

Promotional Strategy

• Promoted as a gift for spouse

• Appealed to convenient & sophisticated TV viewing

Airtel TV – Competitor Analysis

Airtel

TATA Sky

Big TV

Dish TV

Sun Direct

Videocon

-1.2

-0.8

-0.4

0

0.4

0.8

1.2

-1.2 -0.8 -0.4 0 0.4

Pri

ce

Quality, Customer Service & Interactive Services

Perceptual Map for DTH players

• Tata Sky falls in the same consideration set as Airtel TV

• It is inferior to Airtel TV in quality but is priced higher

• Other brands are positioned drastically different from Airtel TV

Airtel TV is at an advantage since consumers perceive it to give higher value for money than its direct competitor (TATA Sky)

Airtel TV – Brand Analysis

PoPs PoDs

Competitive frame of reference

Airtel TV competes in the digital TV market

Narrowing it further: Direct to home satellite TV

It is different from cable & terrestrial TV by means of technology & reach

Crucial point of differentiation

Connection portability

Airtel pioneered DTH TV connection portability

Convenient for consumers to carry their existing TV connection when they relocate to another city

Thank you

References

1) Bharti Airtel Management Presentation – April 2015

2) TRAI and Informa Telecoms and Media

3) IndianTelevision.com