Friday, June 21, 2013

Marketing and entrepreneurship

Preliminary market research is the initial survey of the environment to determine the chances of a new business to succeed. (Newbert, 2012, P 75-90) The research has two major stages, namely, the feasibility study and the product design and development. It involves identification of potential customer needs and how they can be satisfied. It also involves the analysis of competitors by identifying what they are doing, existing gaps and how they are likely to respond to your entry.
This study determines the social, economic and legal challenges that can affect the new business, determine the economic viability and the market potential. (Harris & Deacon, 2011, P 33-50) The research is done to ensure that the products or services to be produced will be bought by the potential customers. It is important to conduct a preliminary analysis of the market before starting a business to ascertain the chances of succeeding. This essay explores the potential of establishing a pay TV business.
Pay television is a subscription-based television that is usually provided by analog, digital cable and satellite transmissions. The use of digital terrestrial and internet has recently increased enabling subscribers to conveniently access the services. (Terzic, 2006, P 421-443) Most premium channels air sporting events, movies and television series. They also offer traditional commercials but the programs are not interrupted. The pay television channels come in different price ranges with channels carrying advertisement having a lower subscription fee.

Sometimes the subscriptions are sold separately where the subscribers are allowed to choose the channels they want.

According to a recent research, the broadcasting frequencies in most countries are not fully utilized. The report indicates that 23% of the total frequencies that were allocated to TV broadcasting are not utilized. (Shirazi, 2010, P 44-57) The pay TV market is not competitive in many countries. Currently the market only a few companies providing pay TV services across the world. This is despite the big market potential within the industry. The preliminary research indicates that there are grounds for pay TV growth globally on which the new entrants can expand their market share.

Various countries have their regulatory bodies which monitor competition in retail pay TV and regulate the operations.

Sports have gained popularity among the youth. Most of the youths are particularly interested in football than other games. (Terzic, 2006, P 421-443) They prefer watching the English Premier League and other European leagues on a regular basis. Many youths spend their free time watching football and other games from different parts of the world. Similarly, movie consumption by the family members has risen with many people subscribing the pay TV in their homes. The number of willing customers is very high as compared to the service providers.
A few companies providing pay TV services are overwhelmed by this big number of customers that is continuously growing. The network coverage is not available in most parts of the world thus locking out the potential customers.

The target market for this product will comprise of commercial recreational centers, hotels, families and sports houses. The number of recreational facilities has increased in the recent years due to the increase of holiday makers. Following high level of competition between different recreational facilities such as social halls and clubs, each enterprise is looking for ways in which it attract more customers by providing what the customers want. (Newbert, 2012, P 75-90) The love of sports and movie watching by many people has forced recreational facility owners to install pay TV in their premises to attract customers and gain a competitive advantage. This forms one of the greatest target markets for the new product.

Hotel services across the world have also improved with the establishment of five star facilities in many countries. (Savitz & Purboo, 2012, P 83) Most hotels are now installing Pay TV in their rooms to give their customers a wider variety of channels with a clear output. Hotel guests prefer to watch television in their rooms where they can choose a channel of their choice to watch. The competition in the hotel industry is very high each facility trying to provide quality services. As many hotels continue to open, there is need for more Pay TV service providers.

Some people prefer to stay at home with their families and enjoy together in their own house. They would like to watch movies and games from their homes without necessarily going to the club. This can be achieved through installation of Pay TV which has a variety of channels for the family members to watch. However due to the limited number of service providers, many of these potential customers cannot access the services.(Terzic, 2006, P 421-443) The establishment of a Pay TV company will help them acquire the services.

There are a few companies providing Pay TV services in most part. Some of the well known companies are; Foxtel Pay TV, Optus Digital Pay TV, SelecTV Pay Television, DirecTV, Comcast among others. (Shirazi, 2010, P 44-57) Some of the companies have wider network coverage across the world with a big market shares. The companies that have been in the industry for long own a big market share. This gives them a competitive advantage over the new entrants. They have a wide variety of channels which are transmitted through digital cable and satellite. Their networks are clear in most parts of the world and the out put is quality. Despite the entrance of new competitor, they remain to be favorite service provider among many subscribers.

These companies have won the trust of many customers due to the length of time they have been in the market. However, their networks are not available in all parts of the world. The reception is very poor in some parts and the services are completely missing in other countries, especially in remote areas.

The new members in the industry have a small market share. The companies offer several channels through digital cable from which customers can choose but, their network coverage is small and is mainly found in big cities. (Shirazi, 2010, P 44-57) Their services are not available in small towns and rural areas thus, limited accessibility. The quality of output is low and the transmission is unstable especially during rainy conditions. However, their prices are relatively lower as compared to the big companies.

Having carefully studied the existing companies and identified their weaknesses, the new Pay TV Company will provide quality services with wider network coverage. The network boosters will be erected in different parts to strengthen transmission. The company will also pride affordable and personalized services to willing customers. It will ensure quality output in all parts including rural areas to reach the untapped population in remote areas. A wide variety of channels will be available which will be sold separately allowing customers to choose what to buy.

The services provided will be of high quality and personalized to meet individual needs of the customers. They will be designed to satisfy the customers at all levels of the society according their requirement. The network boosters will be strategically erected in many parts to stabilize the coverage. Decoders and dishes will be sold at an affordable price and the connections will be done at no extra charge to the customer. Different prices will be charged to subscribers depending on the channels they subscribe. A vigorous marketing and promotion will then be conducted across the world to create customer awareness. All forms of electronic and print media will be used to advertise the services and built customer recognition.

The decision to start a new Pay TV company will however influenced by provision of statutory laws. Various governments regulate the operations of media companies through special regulatory bodies. (Harris & Deacon, 2011, P 33-50) These media regulators formulate rules to govern the industry and monitor the operations of the companies. They are responsible for issuing licenses and allocating frequencies to various companies. The company must be developed according to the guidelines provided by these bodies and follow the registration procedures for the frequency to be allocated.

The new company will also be limited by the economic status of the local people. The services to be provided will depend on the ability of the customers to pay for them. People with low income cannot afford to purchase such luxuries. It is also dependant on the social status of the people. In some homes, television is considered immoral especially to the children. Some parents do not allow their children to watch television for fear of being exposed to adult material. Some channels air programs that are not fit for young children.

Due to the nature of transmission used by the Pay TV companies, several technological challenges are likely to arise. The company must ensure that it develops a strong network and carry out routine maintenance for continuous services. A team of talented and innovative members will be hired to deal with technological issues. The company must continuously adopt modern technologies to remain competitive. (Harris & Deacon, 2011, P 33-50) A reasonably large amount of money will be spent on acquiring and maintaining modern technology.

After carrying out the preliminary research for the Pay TV, the results indicate that there is a big potential for the new entrants to expand. The demand for Pay TV is very high as compared to the limited number service providers. Many potential customers are unable to access the services due to the small network coverage. The quality of coverage is also poor is some parts and the prices charged by big companies are very high for the low income earners. With the establishment of entertainment facilities and hotels, the market for Pay TV is unlimited across the world. There are several opportunities for growth in this industry that need to be utilized through the establishment of the new company.

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