Zee Telefilms' Competitive Strategies

            
 
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Case Details:

Case Code : MKTG107
Case Length : 17 Pages
Period : 1992-05
Pub Date : 2005
Teaching Note : Available
Organization : Zee Telefilms Limited
Industry : Entertainment
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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"It is my ambition to make Zee the world's largest integrated convergence company and to achieve this we are building our business through a combination of access and content."

- Subhash Chandra, Chairman, Zee Telefilms Limited, in 2000.1

"Star, the entire company, rests on three and a half hours of Star Plus. It is doing extremely well and so there is no debate on that. We are definitely trying to improve and work on the programming to raise the ratings of Zee TV itself. As a company, we are definitely far more broad-based. We have many success stories. We have a successful oversees operation, we have successful Zee Marathi, we have successful Zee Cinema. So, it is a little more broad-based than the other bouquets, which is a good thing in the long run. Yes, I will be a lot happier if Zee TV regains its old position."

- Pradeep Guha, CEO, Zee Telefilms Limited, in 2005.2

Introduction

In 2005, Zee Telefilms Limited (Zee) was India's most broad-based TV channel network with an offering of 23 channels. The other major players like Star TV (Star) and Sony TV (Sony) offered less than half the number of channels offered by Zee. Zee's flagship channel, Zee TV was launched in 1992 and by 1994 Zee's prime-time3 audience share was 37% compared to 39% combined share of the national channel Doordarshan4 and a meager 8% share of the Star channels.

After its success in the domestic market, Zee, in 1995 ventured into the overseas market to capture the NRI audience. From its launch in 1992 till 2000, Zee commanded the highest market share.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

However, by mid 2000, competition from Star and Sony began to intensify, and in 2000 Zee recorded the lowest market share of 5.19%, with Star and Sony having a market share of 18.49% and 11.29% respectively.

Zee needed to formulate new strategies to claw back its market share. The new strategies Zee adopted, such as brand extension, brand re-positioning and re-branding, pushed its revenues up once again (Refer Exhibit I) and its share price rose steadily during the period 2003-04 too (Refer Exhibit II).

In 2005, Zee re-branded a host of its channels to bring them under the Zee brand. Trendz was renamed ZEE Trendz, ZEE English was renamed as ZEE Café, Smile TV was named as Zee Smile and all the Alpha channels were prefixed with 'Zee' brand name. It also repositioned Zee, with a new catch line-"Jiyo Zee bhar ke". All these moves were aimed at expanding its viewership.

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1] Agarwal, Alok, "Zee targets to become the largest integrated convergence company", www.domain- b.com, September 26, 2000.

2] Interview, www.indiantelevision.com, May 23, 2005.

3] Prime-time, the time slot which generally extends from 9PM to 11PM wherein the channel telecasts its most popular television programs.

4] Includes Doordarshan National Network and Metro Channel.

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