Group No: 9
Sophy S Babu (54)
Subramanian Suraj (56)
Sujay Dutta (57) Suman Gunjan Churchung (58) Suneetha F Maschrenhans (59) Suraj karkidholi (60)
College: National School of Business
Section: Sem 1 MBA (section B)
SOME VIEWS ABOUT THE CASE
When Doordarshan was launched in the market, they enjoyed the monopoly. They earned almost 100% revenue at that time. In 1982 Doordarshan only presented as a regular satellite channel. During 1992-1994 the number of cable and satellite channels entered into the media market and they decreased Doordarshan’s revenue growth rate to nearly 24%. After 1994 Doordarshan encountered oligopoly market and faced the heat of competition from the market. During 1996-1999 Doordarshan revenue growth rate had gone down by 70.17%. After that in 2000 Government appointed a committee to solve all kinds of problem and regenerate the good revenue. BACKGROUND
Doordarshan the national television service of India is devoted to public service broadcasting (is one of the largest terrestrial network in the world). Doordarshan is of the largest broadcasting organisation in the world in terms of the infrastructure of studio and transmitters, the variety of software and the vastness of the viewership. The experimental telecast started in Delhi in September 1959 with a small transmitter and a market shift studio and regular daily transmission started in 1965. Television was separated from radio in 1976 and Doordarshan came into existence, from then onwards there has been steady progress in Doordarshan. The flagship of Doordarshan – Doordarshan 1 – operates through a network of 1308 terrestrial transmitters of varying power reaching over 90% of the population. Presently Doordarshan operates 22 channels- Doordarshan 1, Doordarshan 2, Doordarshan news, Doordarshan sports, 11 regional language satellite channels, 5 state networks, an international channel and international channels. PROBLEMS OF DOORDARSHAN
Doordarshan was plagued by multiple problems, which found their roots in the mismanagement of affairs. In the late 1990’s Doordarshan faced number of allegations of large scale scams, and irregularities. Under-utilized infrastructure, improper investments and poor financial management plagued the performance of Doordarshan. In 1992, when the Government opened airwaves to private players like cable and satellite channels, Doordarshan faced the sever competition from them. Due to the poor TVRs of the Doordarshan programme companies did not give any advertisements in them, except only some FMCG product companies. Private channels had their own marketing teams, where Doordarshan has 56 different producers but no marketing team.
CABLE TV GROWTH IN URBAN INDIA
WHY SAGGING REVENUES?
During 1998-1999 Doordarshan earned negative growth of revenues as they lost out on viewership segments with the highest purchasing power. Due to poor TVRs in 2000-2001 HLL’s share in Doordarshan’s advertisement revenues had gone down to 50%. TVRs also decreased because producers and distributors stopped giving Films to Doordarshan when asking for minimum guarantee of Rs. 10mn to broadcast a film. COMPARISON OF THE NEWS CHANNELS
STAR NEWS| ZEE NEWS| DD NEWS|
Only premium brands ads taken. Very selective regarding the ads.| All brands accepted. Not selective regarding the ads.| No ads. Only social messages are broadcasted.|
ANALYZE DOORDARSHAN’S STRATEGY
* DD; at that time ruled at the monopoly market.
* They had done Geographic & Demographic segmentation perfectly at that time. * Due to regular...