DSTV Consumer Behaviour

Topics: Marketing strategy, Marketing, Satellite television Pages: 6 (1436 words) Published: June 2, 2014


Contents

Introduction

DSTV brought satellite television to South Africa in 1995 and has been providing quality entertainment to the consumer for over 19 years (Anon C). The market has changed over the years and DSTV continues to satisfy the needs of the consumer as well as remaining innovative with their product (Liesl’s Notes) Societal Marketing Concept

The societal marketing concept is “a principle of enlightened marketing that holds that a firm should make good marketing decisions by considering consumer’s wants, the firm’s requirements and society’s long-run interests.” (Kotler, P) The business wants profits, the consumer wants need satisfaction and society wants human welfare. “The marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.” (Kotler P) DSTV applies this concept in the business. DSTV’s profits have continued to increase over the years with an increase in the number of subscriptions they have. They are now raking in R30 Billion per year from its pay TV operation (Anon A). DSTV aims to give “So Much More” to their clients and they do this with the creation of an effective marketing strategy. They target people who demand a high level of entertainment with a variety of program offerings such as Movies, Music, News, Comedy, Documentaries etc, for the entertainment of their clients thus creating and delivering value to the customer. The customer may choose what they want to watch whenever they want to watch it, whether at home or on the move with various innovations such as the decoder at home and the Walka which may be used on the move. With all the innovations they have come up with and made money off, DSTV still aims to better the environment they work in whether it is improving the lives of people through charity organisations or CSI. DSTV has created employment for people of Africa and opportunities for Africans such as the Face of Africa competition, New Directions Initiative and the creation of Channel O which focuses on the musical talents of some of Africa’s best musicians. DSTV has also created multiple initiatives focused on improving the lives of people living in South Africa such as giving access to water to people without and making green houses for the people of South Africa. DSTV created and installed the playpump system in multiple schools throughout South Africa. This system combines the energy of children who would play on a Roundabout Playpump which would produce water as they play, this water is then used by the children for drinking purposes and it is used to water the food gardens that DSTV sponsors. The green houses initiatives aims to plant trees in many urban areas to create a green environment. DSTV has already provided over 5000 trees for low income households and community areas in the country. (Anon B)

Market Analysis

Customers
User’s Demographic
Core LSM: 8 – 10
Gender: 50% Male 50% Female
Age: 6 – 18 Years
Selector’s Demographics
Core LSM: 8 – 10
Gender: 50% Male 50% Female
Age: 20 – 35 Years
Payer’s Demographics
Core LSM: 8 – 10
Gender: 50% Male 50% Female
Age: 25 – 50 Years
Organisations Capabilities
Strengths
DSTV offers over 90 Channels and 78 Audio Channels
Innovative – They have introduced Mobile TV i.e. Drifta, Drifta USB, Walka, iDrifta (Liesl’s Notes) DSTV is Technologically Advanced – “South Africa’s Leading Satellite Pay Television Brand” (Liesl’s Notes)

Weaknesses
DSTV offers too many options in its Premium Bouquet
DSTV Premium is expensive and the cheaper DSTV compact offers little entertainment DSTV’s is difficult to navigate and troubleshooting problems such as loss of signal due to mechanical failure are difficult to fix

Opportunities
A growing Mobile Entertainment market
The online media streaming trends
Technological advancement e.g. HD Television, Smartphone Apps that allow you to stream media, 3D TV.

Threats
People...

References: Bridball Parumasur S. & Roberts-Lombard M, 2012, Consumer Behaviour, 2nd Edition, Juta & Company Ltd, 11 February 2014
Kotler, P. & Armstrong, G. 2010. Principles of Marketing, 12th edition, Pearson Education Inc, 10 February 2014
Anon A, http://mybroadband.co.za/news/broadcasting/81013-dstv-more-subscribers-more-money.html, 15 February 2014
Anon B, http://www.multichoice.co.za/multichoice/view/multichoice/en/page124238, 17 February 2015
Anon C, http://www.superbrands.com/za/index.php?option=com_content&task=view&id=86&Itemid=100, 17 February 2014
Anon D, https://www2.bc.edu/~jonescq/overhead.html, 23 February 2014
Gill Moodie, 2013, http://grubstreet.co.za/2013/05/09/did-top-tv-ever-stand-a-chance-analysis-of-dstvs-strengths-weaknesses/, 24 February 2014
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