Services Marketing Case study_ Discovery Channel
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Transcript of Services Marketing Case study_ Discovery Channel
Going Local
Presented By:
12176, 12178, 12201, 12204, 12207, 12209, 12213, 12215, 12216, 12217,
1985Cable educational network launched a new channel called Iceberg alley
1987, Entered into an agreement with Mitsubishi Corporation to telecast in Japan
1989, Company’s programme launched in the UK in 1989
1990, Discovery Interactive Library
1994, Programme launched in Latin America
1991, Acquired The Learning Channel(TLC)
1997, Animal Planet made International Debut
1995India & Canada
1996, Brazil
April 2000, reached milestone of 100 million subscription outside USA in 146 countries
Oct 2001, More than 400 Millions worldwide, World’s most widely distributed TV brand
September 2000, Animal Planet reached 100 Million subscribing household mark
2004, Discovery Communications reached 1 billion cumulative subscribers worldwide
Time Line
World Number 1 Non Fiction Media Channel
The channel’s revenue was over $ 3.5 billion at the
end of 2009
Reaches more than 1.5 billion cumulative
customers worldwide
Facts About Discovery Channel
Discovery ChannelThe Leaarning ChannelAnimal PlanetScience ChannelInvestigation DiscoveryPlanet GreenDigital Media Services
More than 100 network Channels
Prescence in over 180 Countries
Discovery Channel’s launch in India
Discovery Networks Asia Pacific was first established in 1994
During Launch:Major Competition: Doordarshan & DD Metro
Major Programmes:
Hum LogBuniyadMahabharatEarly 1990s: Star TV
First Channel to provide Infotainment in India
Program Themes:NatureHistoryScienceTechnology
Language of delivery: English
Contents substantially different from family dramas and soap operas.
Parents happy with the nature of programmes because of educational content
Discovery faced the problem of positioning.English transmission: Meant limited reach.Distribution Problems: Rs. 5/ household subscription Price
The Problems Underlined:Need to rework Brand RepositioningExtensive Advertising & Brand building exerciseIncreasing the reach
Market Research Studies revealed:Discovery viewers are largely educated middle aged urban Males.Socioeconomic A & B ClassChannel struck chord with Adults as well as kids
The Issue:
Research Indicates:
Channel need to further reposition itself Reach out to target audience better.Be more responsive to its viewers Viewers are not aware about:
Programme Content
Broadcast Timings
Solutions
Discovery Global Portfolio
A Paradigm Shift
MD stepped down
Kiran Karnik
Deepak Shourie
PartnershipTwo hours telecast of show in Doordarshan in Hindi
Sampling
Problem Persists, Regional Viewers were not drawnRevenue Sharing Agreement
New Market Research
The channel needs to reposition itselfReach out to target audience betterBe more responsive to customers Shed Serious
Channel TagCommunication needs to be enhanced
Issues closely linked
Fun Programmes
Junkyard Wars: A
competition for kids
Fabulous fortunes
For Middle Aged
people
Understanding Sex for teenagers
To close the gap in
communicating and availability
of such programmes
Other Programs;
Tech TuesdaySuperstructures of the worldWoman’s hourAmazing AnimalsLate night discovery
Something for everyone aspectGreater Variety in comparison to Nat Geo
Women’s & Kid’s viewership increased by 20%, Prime viewership by 40%
Marketing Initiatives
Quiz Contest for kids
Increased AwarenessGarnered Market ShareAdvertisers convinced that Discovery has considerable market share
A partnership with canon India ltd.
Imaging Contests in Cities like:
DelhiMumbaiHyderabadChennaiBangalorePuneAhmadabad
Discovery Exhibition
Popular Mechanics for kids: classes 6th to 9th
Lucky DrawsOnline
2002, June
A JV with Sony Entertainment Television(SET)Sony held 76%
50% Increase in advertisements revenue
Discovery Network Asia Pacific boasts 458 million cumulative subscribers throughout 32 countries
Services Marketing:
Tangibility:
1.Knowledge2.Information3.Experience
Inseparability:
The information/knowledge cannot be separated from the presenter. For example, the show called, “The crocodile Hunter” cannot be separated from its presenter “Steve Irwin”, that’s why the channel discontinued with the show after the death of the presenter.
Heterogeneity: The programmes cannot be same in each and every territory. Discovery showing tailor made programmes in India as Konark; the chariot of sun is a testimony of heterogeneity.
Perishabillity: If for a particular programme, audience is not available, the revenue is lost. For example, Discovery kids is telecasted between 3 pm- 4 pm . If the audience is not there or the reach is not there , then there is a lost of revenue and advertising revenue.
Concerns
Whether Discovery can obtain increased viewership or will struggle to retain it’s existing share. This is the challenge
Solutions for Concerns
Discovery can have tie ups with other channels. The same way they did at the start of their stint in India. The only difference is that they can have the programmes, produced by other channels telecasted on their channel.Other solution can be to start an animation/cartoon slot, as the kids are more attracted towards such cartoons. This will be an answer to the indirect competition.
Discovery will any way have the first mover advantage. So people will always see Discovery as the premium channel.Though Discovery should be aggressive in it’s approach and look for programmes which are relevant to Indian Mass. For example , the Indian diaspora is very much inclined towards Cricket and Bollywood.Hence programmes like:Making of the Test cricket champion,100 years of Bollywood.Biopic on great cricketers or sportsperson can be made.Award-winning documentaries
Problems Faced:
1.How can Discovery continue to make a mark and retain its audience?2.What can be its strategies to differentiate itself from the competition?3.What new promotional strategies can the channel come up with?4.Is there any way to increase revenues except through airing advertisements during its programmes?
1.How can Discovery continue to make a mark and retain its audience?
1. Lingual translations/ subtitles.2. Industry Concerted series of 7-8 episodes.3. Documentaries of regional achievers/successful women achievers.4. Organise adventure camps, country visits.5. Offer same channel in different languages through lingual translations.
2. What can be its strategies to differentiate itself from the competition?
We can have a show like, “ Rendezvous with successful people”. For example: Amitabh Bachhan Sachin Tendulkar Rajnikanth Chandra Kochhar. Nitin Paranjpe.
A show on successful entrepreneurs. Camping with some colleges, superbike groups, and telecast it as a part of series.Social networking Sites. People can post adventure videos, which will be telecasted in the channel.Collaboration with youth channels and youth programmes like MTV and MTV Roadies.
Discovery can sponsor some tasks of Roadies, that will increase the visibillity.
3. What new promotional strategies can the channel come up with?
Sensible Videos in different channels like Doordarshan, You tube. Discovery awards for bravery CSR campaigns for stray dogs, PETA(Animal Planet) Film Screening in schools. A learning platform for students to learn Science. Collaboration with Google& Microsoft. Combo-Pricing and product shuffling Behind the Scenes- a new era. Discovery Smart kids Competition in collaboration with Britannica/ Encarta. Social Media. Self Made Video.
4. Is there any way to increase revenues except through airing advertisements during its programmes?
Through Merchandising:
DVDs of shows, series Toys for kids Apparels Adventure gears.
Through Subscription: Cable TV Direct to home Interactive Television.
Add new channels in the portfolio like Discovery toons.Open Sourcing.
Apply the strategy of:ConvinceConfuseCorrupt