ZEE TELEFILMS

Competitive Strategies

AGENDA Introduction-The Coming of ZEE ZEE’s Initial Success Competition from Star and Sony SWOT Analysis ZEE Fights Back The Re-Branding Exercise Current Scenario-Kyunki Zee Bhi Kabhi

Star Tha

INTRODUCTION-THE COMING OF ZEE The History of Indian Television dates

back to the 1980s with the launch of Doordarshan.

It led to the beginning of Soap operas with HUM-Log in 1984.

It made way for numbers of different kinds of Soaps.

More and More people bought TV sets

INTRODUCTION-THE COMING OF ZEE

INTRODUCTION-THE COMING OF ZEE In 1992 Government liberated its

market, opening up to cable television. MTV, Star Plus, BBC, Prime Sports gave

Indians a fresh breath of life. ZEE TV was the first private owned

Indian Channel to broadcast over cable. Satellite television ended the DD era

ZEE INITIAL SUCCESSBackground

Zee an Essel group company launched Zee TV in 1992

It was nations first Hindi channel by a private organization

Brought a much wider choice of programs compared to doordarshan.

It captured a vast Hindi speaking Indian audience market.

STRATEGIES ADOPTED BY ZEEMajor marketing strategies adopted by

Zee were Brand extension Diversification

Launched nations 1st round the clock channel “ Zee news”

Launched a 24 hrs Hindi movie channel called “Zee Cinema”

STRATEGIES CONT…

In the year 1995 Zee made a foray in to the international market by pioneering a venture Zee TV in UK.

Zee launched the nations first full scale television and film training body named institute of creative arts(ZICA)at Hyderabad.

In the year 1997 zee launched its music channel named “Music Asia”

One of the major innovation by Zee was it triggered the launch of a bouquet of regional channels christened the Alpha channels in 1999.

Alpha Marathi Alpha Punjabi Alpha Bengali Alpha Gujarati Alpha Telugu

ZEE NEWS –VIEWERSHIP 1999

Channels Viewership share in %

Zee News 51

Star News 30

BBC 7

CNN 4

CNBC 4

TVI 4

ZEE INITIAL SUCCESSSo from its launch till 1999 Zee was

riding on the waves of success

On home turf it extended its brand in the form of Zee news and Zee cinemas

Zee international ventures Zee TV – UK ,US ,Africa.

Zee interactive learning system limited(ZILS) and Zee interactive multimedia limited(ZIML) also started gaining prominence.

The regional channels by Zee the Alpha bouquet also gained quick popularity.

AWARDS AND RECOGNITIONS

Won “The Economic Times ” “The Emerging Company of the Year ” award in 1998

In the same year it won the FICCI(Federation of Indian Chambers of Commerce and Industry) award for creativity in visual media.

CHANGING SENARIO• Zee initially ruled the Indian TV channel

market for 6 years. • However in September 1999, the Star

and Zee partnership, which started in the year 1995, came to an end and this left Star to go its own way.

• Meanwhile, Sony Entertainment Channel also launched its sports cum movies channel “SET MAX” in the year 1999 to pull its viewers.

THE RISING STAR POWER

Launching a game show “Kaun Banega Crorepati” in July 2000 with Amitabh Bachchan as its host.

Hit Tele-Serials from the Balaji Telefilms Banner such as “Kyunki Saas Bhi Bahu Thi and Kahani Ghar Ghar Ki”.

Successfully attracted the viewers in the 7:30 to 11:00 pm time slot.

THE SONY COMEBACK

Sony also started an aggressive counter and launched new shows.

To tap on the interest in game shows, Sony launched “Jeeto Chapar Phaad Ke” with Govinda.

In 2003, Sony launched a new serials called “Jassi Jaisi Koi Nahi” based on the results of the research project called “Understanding Women”

FALLING ON THE NEWS SEGMENT

To make matter worse for Zee, the India Today Group launched a 24-Hour Hindi news channel called “Aaj Tak” in December 2000.

A report said that within a month of the launch of Aaj Tak, its viewership shot up nearly five times.

THE FAILED ATTEMPT In October 2000, Zee launched “Sawaal

Dus Crore Ka” which turned out abysmal for the channel.

In response to competition from “Aaj Tak” in March 2001, Zee bought the tapes of Tehelka, a sting operation against corrupt government officials, which failed miserably and this resulted in huge losses to the channel.

STRATEGIC PLANNING MODEL OF ZEEKey Strengths –

High viewership ratings – a) Zee provides good content and enjoys high TRP.

b) 34% average channel share.

c) 31% YoY Increase in advertisement rates.

d) Zee also enjoys a major bargaining power with

MSO and DTH players.

Complete bouquet of channels.

High subscription revenues – which cushions it from any slowdown in advertisement revenues.

SPM…

Key Weaknesses –

Lagging behind Star Plus. Problem of attrition. Increase in operating costs. Increase in Employee costs.

SPM…Key Opportunities

Benefit from the robust

growth of the Entertainment

and Media sector –

According to FICCI-PWC report

Entertainment and Media industry is

expected to rise at 18% CAGR to reach

1 Trillion by 2011. Digitization –

it will increase the subscription rate to almost 113bn and advertisement costs to 123bn by 2011.

SPM…Key Threats –

Increased competition –

Competitive entry of UTV and NDTV has

brought about dents in Zee market share. Slow rollout of CAS –

people hesitate to pay for the subscription

and rather choose FTA channels. Declining viewership and

revenue share of GEC channels –

Viewership of GEC channels are on a decline and niche channels is on a rise.

ZEE FIGHTS BACK Two pronged strategy-reform of the

programming content and redefining the prime time band

Two months after launch of KBC Zee came out with Sawal dus crore ka

Launched two new channels Zee English and Zee Movies along with the relaunch of Zee MGM

Zee gave a new look to its new channel in response to Aaj tak’s competition

In 2001 the new programs launched by Zee were Yeh Dil kya kare , chandan ka palna to provide wholesome entertainment for TV audiences in India

Ventured into film production releasing Gadar

Entered into joint venture with Turner International India to provide the viewers a blend of international and local channels.

Won awards Subhash Chandra-direct involvement Introduced a movie slot April 2003-took two innovative steps

Launched Zee Trendz a fashion channel (niche market)

Co-produced a film called “one Dollar Curry”with France TV and Silhoutte Films

Also launched 5 new channels not carrying the brand name

Launched Astitva in defense to Jassi jaisi koi nai

Launched Zee Stars Ki Khoj Zee conducted Zee Cine Awards in

Dubai

REBRANDINGTHEN NOW

Trendz Zee Trendz

Zee English Zee Cafe

Zee Movie Zone Zee studio

Smile TV Zee Smile

Alpha Marathi Zee Marathi

Alpha Punjabi Zee Punjabi

Alpha Gujarati Zee Gujarati

CONCLUSION

Rise of Star

Zee’s Fight Back

The Coming of Zee

Zee’s Initial

Success

Downfall of Zee

CURRENT SCENARIO-KYUNKI ZEE BHI KABHI STAR THA Current Scenario:

Times are changing Star find itself in the place where ZEE was a decade back.

Zee has clawed its way back in business. New Entrant’s Every other day. Star lost its top position to Color. Color makes a head way with new Soaps like

Baalika Vadhu

THANK YOU

PRESENTED BY:-

AbhishekAshwini Rajvi Shadab Vikash