ZEE TELEFILMS’ COMPETITIVE STRATEGIES

BY: RITIKA SAMRIN RAUF VIVEK SAINI

ABSTRACT

The case analyzes the competitive strategies adopted by Zee Telefilms in relation to rival channels and the extent to which the channel has succeeded in its approach.

Zee recorded unprecedented success during the initial years of its launch (1992-2000). However, in 2000, Star with its improved programming content succeeded in establishing itself as the No.1 entertainment channel.

Sony also emerged as a strong competitor. The case provides an insight into how Zee managed to regain its position through its effective competitive strategies.

INTRODUCTION

Zee Entertainment Enterprises Limited is one of India’s leading television, media and entertainment companies.

Subhash Chandra, one of India's leading entrepreneurs, who sought to create a revolution by facilitating the convergence of media and communication with a mirror into the common man's life and ways, created Zee Telefilms Limited in October 1992

This enterprise was to act as the chief content provider for Zee TV - India's first Hindi satellite channel. Zee Telefilms Limited (ZTL) is now known as Zee Entertainment Enterprises Limited (ZEE). Very early in the aftermath of launching ZTL, Subhash Chandra entered into a joint venture with the STAR group of companies

INTRODUCTION

Zee Telefilms Ltd was India’s most broad based TV channel network with an offering of 23 channels.

Zee TV was launched in 1992 and by 1994 Zee’s prime time audience share was 37%.

By mid 2000 faced intense competition from Sony and Star and market share fell to 5.19%

Zee fights back with its strategies like brand extension , repositioning and rebranding.

BACKGROUND NOTE

Essel group and won awards and acclamations.

Telecasted varied programs.

Zee , launched Zee TV , the nation’s first Hindi channel by a private organization.

By 2004, zee was fully integrated media corporate with a major presence in TV programming , films music etc.

ZEE TV won The economics Times “The Emerging Company of the year” award in 1998.

Zee won FCCI award for creativity in visual media.

Zee expanded its network further, introducing a number of channels both in India and overseas.

ZEE’S INITIAL SUCCESS Zee launched two new channels dedicated to news and

cinema, respectively. Partnership with Star. Zee’s major concern after the partnership was to increase

its viewership compared with its main rival, sony. Overseas venture- UK, USA , AFRICA. Launched MUSIC ASIA and changed it to ZEE MUSIC. Introduced range of regional channels- ALPHA.(1999) Subsidiaries like SITICABLE, ECONNECT etc. gained

prominence. Diversified its operations by further investments in

venturing into new areas.(ZILS,ZIML)

.

Pavitra rishta(2000) Sawal das crore ka(2000) Kammal(2001) Kasam se(2001) Koshish(2000) Koi aap sa(2001) Kashti(2000)

COMPETITION FROM STAR AND SONY In September 1991, the Star and Zee

partnership came to an end , and this left star to go on its own way.

For star a major breakthrough came in “Kaun Banega Crorepati” and to tap in on interest in the game shows, Sony launched “Jeeto Chappar Phad Ke”.

Also Balaji campaign added to star’s popularity.

Balaji telefilms banner: kyuki saana bhi…kahani ghar ghar

ki,kausti ….as a result Zee lost most of its viewers to KBC and the soao operas on star.

for SONY:jassi jaise koi nahi

ZEE FIGHTS BACK Introduced two pronged strategies- redefined prime time and introduced SAWAAL DUS

CRORE KA to compete with KBC. Two new channels ZEE ENGLISH and ZEE MOVIES were launched. In order to give competition to “aaj tak” ZEE bought “telhalka tapes”.

telecasted for 4 consecutive days though it was a failure. Improved the programming content when KBC was at its downfall and launched some

serials.(chandan ka palana,Resham ki dor,Saansar,Ek thi raj kumari,Yeh dil kya kare and apradhanmantri)

Though Zee didn’t have luck with its news channel,Zee TV confirmed no.2 channel of the nation.

Zee financial report was showing positive results in the year(2000-2001)

June 2001, Zee ventured into film production, releasing bollywood’s first corporate film “Gadar”.

When KBC going off air ZEE launched “zeena isis ka naam hai,TU kahe agar,Khelo number khelo.

ZEE started “thrusday blockbuster”. Acquired ETC and launched ZEE trendz and five other

channels. In competition with SONY’s Jassi Zee “astitva”. Also started with new reality shows like ZEE CINE STARS

KI KHOJ Conducted ZEE CINE AWARDS abroad(show was huge

success).

THE RE-BRANDING EXERCISE

Adopted rebranding, repositioning strategies to maintain a common identity to varied brands and to add extra zing an edge

which reinvented the spirit of the brand.

Early 2005, Zee initiated the re-branding of the entire Zee range of brands and all the channels of Zee sported a new logo.

Also bought all the ALPHA channels under the ZEE umbrella. TRENDZ, SMILE AND ZEE ENGLISH were also changed. In 2005, Zee took another step aimed at its global audience

and conducted zee cine awards in London. Interesting NEW SALES STRATEGY was adopted.

STRENGHTS WEAKNESS

High viewership ratings

Complete bouquet of channels.

High subscription revenues.

Lagging behind Star Plus.

Increase in operating costs.

OPPORTUNITIES THREATS

Benefit from the robust growth of the Entertainment and Media sector.

Slowdown in India's economic growth.

Increased competition.

Declining viewership and revenue share of GEC channels.

SAMRIN RAUF VIVEK SAINI