TELEVISION MARKETING

NON STORE RETAILING PRESENTATION

WELCOME TO THE WORLD OF TELESHOPPING NETWORKS!

BUT TO BEGIN,LET US HAVE A LOOK AT WHAT EXACTLY

IS…

.

‘’Interested in reducing that 'extra flab' on your body in a matter of hours? Would you like to grow hair on that balding pate of yours in just a few days? All you need to do is watch the television (TV) and order the 'miraculous' products being advertised through the

phone.“

Welcome to the world of teleshopping networks, a phenomenon that had become a part of the lives of Indian TV viewers by early 2000. Day in and day out, customers were swamped with images of models showing off their 'fabulous flat abdomens,' 'blemish-free

skins,' selling disease-curing teas, wondrous kitchen and household equipment, on almost every TV channel.

TELESHOPPING IN INDIA Teleshopping is the electronic retailing and home shopping

channels industry, which includes such billion dollar television-based and e-commerce companies as Home Shop 18, Star CJ Alive, Naaptol.  

Tele shopping allows consumers to shop for goods from the privacy of their own home, as opposed to traditional shopping, which requires one to visit brick and mortar stores and shopping malls.

Direct response advertising appears in the prime media such as television and the press but is different from standard advertising since it is designed to elicit a direct response such as a request for further information, an enquiry or an order.

Usually a free telephone number is provided so that interested parties can contact the company. In this way, broadcast media are used to reach large numbers of consumers and direct marketing techniques are employed to allow a fast response by both consumers and the company.

SHOPPING CHANNELS

Shopping channels are television specialty channels targeted towards home shoppers consumers by broadcasting product demonstrations or explanations. Many of the major shopping channels broadcast live 24/7.

Sales Per Minute (SPM) is a key figure used to decide how successful a product is when receiving airtime on TV.

 HOT BRANDS TV SHOP SHOPPING CHANNELS IN

INDIA

Best Deal TVnext.co.in / Planet MNaaptol

Home Shop 18STAR CJ Alive

 

DIRECT RESPONSE TELEVISION  Direct response television (DRTV) – or teleshopping as it is

sometimes called – is slowly gaining in popularity and comes in many formats.

The most basic is the standard advertisement with telephone number.

Other variants are the 25-minute product demonstration (often called infomercials) and live home shopping programmes.

Four factors tend to raise the probability of DRTV application and success:

1. Products that require a demonstration or a service that needs to be explained.2. Products that have mass appeal (although single interest channels provide a medium for specialist products).3. An effective DRTV promotion must make good television to attract and maintain the interest of the target audience.4. A successful DRTV promotion is usually supported by an efficient telemarketing operation to handle the response. 

DIRECT RESPONSE TELEVISION

NOW LET US REWIND TO HOW IT ALL

BEGAN!

A BRIEF HISTORY OF TELEVISION MARKETING

As a well-known fact, concept of teleshopping originated in United States of America in early 80s. It received lukewarm response but in mid 90s it begun gaining popularity.Teleshopping in India too became operational in 80s and grew at a slow rate. The reasons were:1. Lack of education and awareness in those

days.2. Lack of modest standard of living, low

rate of women employment and low penetration of TV.

3. Entry of local players.4. The difference of culture and language

also posed problems. 5. Growing criticism for some of its products

that claimed to do seemingly impossible task for consumer.

A BRIEF HISTORY OF TELEVISION MARKETING

Tele Brands India pioneered the concept of teleshopping in India. Telebrands CEO and Founder Ajit J. Khubani In 1986, began experimenting with television, producing three short form infomercials, one for an ultrasonic flea collar, one was for a home bicycle exercise product and the other was for Amber Vision sunglasses; all of these products were very successful. The Amber Vision infomercial was a great success, spurring sales of 15 million pairs of the sunglasses. Therefore Tele Brands became a leader and the oldest teleshopping company in India.

LET US NOW MEET THE REIGNING TELESHOPPING

BUSINESS KINGS…THE TOP PLAYERS

TOP PLAYERS IN INDIA

TOP 3 TV SHOPPING COMPANIES IN INDIA ARE;

1. HOME SHOP 182. STAR CJ ALIVE

3. NAAPTOL4. TELEBRANDS

T H E T O P 3 C O M PA N I E S A R E D E P E N D I N G O N T H E I R M A R K E T VA LU E A N D S H A R E . F R O M T H E A B OV E 3 H O M E S H O P 1 8 & S TA R C J L I V E A R E

2 4 H O U R H O M E S H O P P I N G C H A N N E L S . 4 0 % O F T H E E N T I R E T V S H O P P I N G S H A R E B E LO N G S T O

T H E M .

T E L E B R A N D I S A N A L L -T I M E H I T .

HOME SHOP I8 Electronic retailing firm HomeShop18, a Network18

group venture, is expecting around 100 per cent growth in its business during this financial year.

The company, which provides shopping services on Internet, TV and via mobile, said it sold product worth Rs 522.4 crore and reported revenue of around Rs 89 crore in 2011-12.

Its current revenue is Rs1000 Crore. That says it all. They are flourishing online too.

http://www.homeshop18.com/

STAR CJ ALIVEStar CJ Network India Pvt Ltd is a partnership

between Star Group and CJO Shopping Co Ltd. Star CJ Alive, the home shopping channel that is closing in one million customers in India.

Star CJ is looking to further strengthen its space in the industry. The network which has presence in a total of 50 cities and districts of Maharashtra, Gujarat, Uttar Pradesh, Punjab and Haryana besides the union territory of Chandigarh. It is eyeing entering Madhya Pradesh, Rajasthan and more parts of Uttar Pradesh.

Its total current revenue is Rs500 crore. Runs Online Shoppe as well.

NAAPTOL Naaptol  sells various products in categories ranging from

apparel, mobile phones,consumer electronics, home furnishings, kitchen appliances, furniture, etc.

In 2009 it adapted the marketplace model and stated selling products online. Naaptol Online Shopping, owns and operates TV shopping and ecommerce platform Naaptol.com.

In the initial stage, Naaptol started with a seed capital of Rs.50 lakhs. Later in 2009 it expanded as an online marketplace and started offering

products to purchase online. With this slight tweak in the business model,

Naaptol's turnover became Rs. 10 Crore (2010-2011) from Rs. 1 Crore in 2009-2010.

TELE BRANDSTele Brands India pioneered the concept of

teleshopping in India and is the oldest in the business.

Therefore Tele Brands became a leader and the oldest tele shopping company in India.

Currently it sells on time slots of favorite entertainment channels.

And has a shop online too.

INDIAN TELESHOPPING SCENARIO AT A

GLANCE

MARKET SHARE

MARKET SHARE • At present, the consolidated • tele-shopping segment is estimated at Rs 2,200 crore annually and is expected to grow further due to the inability of modern retail to reach unserved markets faster.

A recent AC Nielsen report indicates eight out of ten Indian online consumers plan to shop online in the next twelve months and more than a quarter say they spend upwards of 11 percent of their monthly shopping expenditure on TV and online purchases. This adds a new customer every six seconds and has a network that delivers to more than 3,000 cities all over India.The target audience is households, whose annual income is upwards of Rs1,50,000. About 25 per cent of TV shopping channels’ turnover comes from repeat purchase.In the organized segment, Electronics and appliances (mobiles, camcorders and so on) account for about 50 per cent of the total sales; Lifestyle (jewelry, apparel and fashion accessories) is the second biggest category, accounting for 25 per cent of the sales;Household and kitchen ware is the third largest, accounting for 15 per cent of total sales.

BESTSELLING CATEGORIES IN

TV RETAIL IN INDIA

Home appliances. From microwave ovens, mixer grinders, electric cooker, induction, grill, and stove to vacuum cleaners, DVD players, sewing machines, printers and even fancy mops.Home linen. Here we have bed sheets with pillow cases and home towels.Furniture. Items like foldable sofa cum beds and tables are popular. Other than that there are dining tables and sofas which are affordable.

Diamond,Gold and Imitation jewelry. Yes, people even buy diamonds on teleshopping channels. There are some TV channels selling diamonds with certificates. There is an entire demo showcased with Clarity Color Carat Cut explained and choices given. Similarly there are also gemstones available. There are a lot of artificial jewelry items sold on TV. They are available in combo sets and packs of 3, 4, and 5 so on. Also gold jewelry is a rage. Insurance policies. Homeshop 18 in India had put Insurance policies on sale on TVLastly, special products. Products claiming amazing result like hair growth and weight loss are all timers. They include Sauna belts, cycling machine, abs cruncher, hair sprays, medicines, weight loss teas etc. 

NOW LET US SHOW YOU WHAT GOES INTO MAKING A

SUCCESSFUL TELESHOPPING

BUSINESS

PROFILE OF THE TARGET

AUDIENCE OF THE

PROGRAMMES 

Almost all the programmes target at the housewives belonging to the middle and upper middle income groups, who are fairly young , modern, and educated and are open to new ideas and ready to try out new products.A sizeable amount of the target audience are also those couples where both the husband and the wife are working. According to the Tele Shopping companies, the urban working couples are a high potential target audience for this kind of a concept to work in the country, who have very little time to spare. Therefore all the Tele Shopping companies are basically targeting at urban middle and upper middle class couples who lead a typical city life, hard pressed for time and would go in for something which would save their time and is convenient.

STRATEGY AND PL ANNING

ADOPTED FOR THE PROGRAMME 

PRODUCT ION 

STRATEGIES TRIED AND TESTED…When the programmes first started, the programme 

producers believed that the most receptive and possible consumers of Tele Shopping would be the housewives. For this reason, as far as the timing of these programmes is concerned, all of them are scheduled in afternoons or late afternoons.The strategy that goes behind formulating the programme content is to make the programmes as entertaining and as interesting as possible. 

This is mostly done by trying to constantly improve the technical quality of the programmes as well as the presentation style and the range of products shown.Promotional schemes and offers are also used to attract viewers. 

PRODUCT PLANNING Almost all of the Tele Shopping producers have in -house research done on consumer panels to find out what are the most probable product categories the particular target audience would be interested in, which are the product categories they buy independently and what are the price ranges they would normally spend on different products when they go shopping.  After all this has been determined, products from the suppliers are chosen and then shown on the programme. Other important requirements are that the products should meet a certain level of quality, And the suppliers should promise after sales service for a specified time and ensure acceptance of goods returned which are defective. Almost all the programme producers prefer to show products which are uncommon in design or usage, modern, innovative and not easily available in the market place. 

TELESHOPPING

NETWORK

TELESHOPPING NETWORK

PROCUREMENT: The teleshopping network ties up with manufacturers who produce goods for them. These goods are unbranded ones, and the network is the licensed marketer. These unbranded goods are branded by the teleshopping network and then advertised on television. DISTRIBUTION: For the distribution, distributors are appointed in all major cities and towns, and they look after the sales in that particular place.Further down the line, the distributors either appoint dealers or tie up with small appliance retailers to sell their products. The prospect watches the television and if she wants to place an order.

TELESHOPPING NETWORK

The order can be placed in one of the following ways:1. Call the teleshopping network directly and place an order for the required products, quoting the item code number. In this case, it takes about 15 days time for the items to reach the customer. The payment is made on the delivery of the items.2. Call up the local dealer and place the order quoting the item code and make the payment when the items are delivered. It takes about 3 days time for the items to be delivered.3. Call up the distributor and place an order by quoting the item code, and make the payment on the delivery. Incase of calling up the distributor, it takes about 2 days to get the delivery, and in case of visiting the distributors shop, the delivery in immediate.

YES,TELESHOPPING IS

UNDOUBTEDLY A BOON…

LET ’S HAVE A LOOK AT HOW IT HAS MADE L IFE EAS IER

ADVANTAGES OF TELESHOPPINGIt gives a full demonstration of the working of the product along with a list of contact phone numbers in every city.

The main advantage of teleshopping is convenience for the customer. The customer can purchase the product without visiting the seller. This saves valuable time, effort and money.

Customers can make payment through their credit cards.

They can also opt forcash on delivery mode of payment

ADVANTAGES OF TELESHOPPINGSeveral teleshoppers give an opportunity to replace product if not satisfactory after trial and promise money back.

One of the popular commercials that people find very informative is the teleshopping advertisements. They showcase a range of products and most of them are very useful and applicable in our daily use.

Thanks to the concept of teleshopping, the salesmen have disappeared all of a sudden. In teleshopping, you can always expect the products for cheaper rates. The teleshopping products are available at huge discounts

WHY TELE-

SHOPPING

INDUSTRY IS SET

TO GROW

TRENDS THAT SIGNAL GROWTH… Some of these trends which have been mentioned by the industry observers and are predicted to push more and more people to shop by television are: 

• Consumers are becoming fed up with the traditional shopping experience and they want more speed and convenience. Consumers are finding that the conventional stores simply do not deliver these features of speed, ease and convenience on a consistent basis. Many of them complain of inefficient salesmen at the stores who are not able to handle all the customers properly at a given time. 

• Consumers feel that the traditional shopping experience is becoming more and more hasseled due to many reasons. The most common reasons that are mentioned are the increasing crowds at the shops and market places, feeling of insecurity white moving around these places due to thieves and pick pockets, the heat and pollution especially in the big metros and cities and transportation problems. The need for a safe and secure shopping experience is greatly felt. 

• Consumers today want more information about their purchases. Conventional stores often lack knowledgeable sales clerks or fail to provide specific product information. 

• Consumers are increasingly comfortable with technology. They are mnore open to new concepts are more and more of them are willing to try out new concepts. 

THE CHALLENGES THAT

TELESHOPPING BUSINESSES FACE

PROBLEMS FACED BY TELESHOPPING INDUSTRYInitially they have tough time to make the concept acceptable because of the following reasons:1. Lack of education & awareness among people.2. Lower rate of women employment.3. Low penetration of TV/telephones: Another major problem faced by them was “feel & touch” factor.4. Entry of local players. Cultural & language differences as they show the dubbed infomercials into regional languages.5. Another is growing criticism for some of its products.They focus mainly on metro & B-class cities neglecting towns & semi-rural areas. 

LET’S HAVE A LOOK AT THE

SWOT ANALYSIS

STRENGHTS   

Imported products Laws Technology Large network of connectivity for telephone orders Innovative and miraculous products The market registered annual growth rate of 20%

WEAKNESSES High price Targeting mainly premium customers Lacking ‘feel and touch’ factor Difference in culture and language Limited reach of products Criticism of infomercials

OPPORTUNITIES Tapping the native culture point of view in advertising More accessibility in towns and semi-rural places Strategic alliance with big retail outlets for sales and distribution.

THREATS Competitors offering same benefits at lower prices Low television penetration in remote areas Duplicity of product

THE ROAD AHEAD

COMPANIES STRIDING AHEADHome shopping players are betting on larger reach, especially to the hinterlands of India, and the ability to illustrate the product better through TV medium. According to Euro monitor, Indian home shopping grew by 6 per cent in 2013 to Rs 1,210 crore while market players peg the size at Rs 2,000 crore.By selling higher-margin items such as kitchenware sets and saris, India's television shopping players are looking to steal a march against their e-commerce peers. HomeShop18 and TVC SkyShop have already reported profits, even as others like Star CJ Alive and Naaptol are expected to hit the milestone in the coming months.TVC Skyshop, one of the oldest players in the industry, has been reporting profits since the last four fiscal years. In Fiscal 2014, TVC SkyShop reported profit of Rs 7.53 crore on revenue of Rs 250 crore and expects the top line to increase 20 per cent in fiscal 2015.

ON THE ROAD TO SUCCESS"E-commerce is a different model based on discounts. Our model is about discovering deals with significant margins and then pushing them to the consumer," said Manu Aggarwal, founder of Naaptol which gets 80 per cent of its revenues from deals advertised on TV and newspapers.HomeShop18, which filed for a US listing, said for the nine-months ending December 2013, its television segment reported a profit of $2.5 million, or Rs 15 crore, even as its online arm continues to bleed leading to total losses of $14.5 million. In the run up to its filing, the company decided to focus on its TV segment which accounted for 80-85 per cent of its gross transaction value of $159 million for the given period.

SO YES ,TELEV IS ION

MARKET ING IS A BOOMING RETA IL SEGMENT SET TO

GROW AND DEVELOP IN FUTURE.

PRESENTATION BY:SALOMIKA JENAASHWARYA CHAUDHARYANU ARYAPRACHI JHAADITI SINGH