The Teleshopping Business in India

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Case Details:

Case Code : MKTG036
Case Length : 12 Pages
Period : 1990 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Varied
Industry : Media and Advertising
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Indian Scenario

During the early 1990s, Indian laws prohibited customers to import products, without acquiring prior permission from the regulating authorities. These laws also restricted the repatriation of money (out of India), without the prior permission of the country's central bank, the Reserve Bank of India (RBI)...

How the Indian Teleshopping Market was Won

During the late 1990s, the traditional Indian societal setup of joint families gave way to nuclear families. In the metros and even some smaller cities, the number of families where, both the husband and wife were pursuing careers had increased substantially and there was little time available for shopping outdoors. Teleshopping companies believed that this segment offered tremendous marketing potential and would easily take to convenient shopping from their homes. In addition, the networks decided to target the premium-end TV viewers, with high purchasing power. The growing sophistication among these customers enhanced their readiness to try new, innovative products, even at a premium...

Teleshopping Traumas

Though teleshopping market was showing positive growth trend, its growth rate was much below the expectations of the players involved. According to a report, most of the teleshopping networks in the country were not making any profits. In fact, TSN had closed its teleshopping activities in 2002 and was concentrating only on online retailing (www.tsnshop.com)...

Future Prospects

Despite all the above problems, the teleshopping market was believed to hold a lot of potential in India. This was primarily on account of the increasing base of convenience-seeking people and the middle-class population.

As the standard of living of these people improved, they became more receptive towards trying out innovative products and concepts.

Teleshopping networks, therefore, focused on integrating their operations and increasing their reach for these customer segments...

Exhibits

Exhibit I: Comparing Mass Marketing and One-to-One Marketing
Exhibit II: Key Success Factors for Teleshopping Market