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TitleMarketing Strategy
TagsDigital Television Television Marketing Strategy Competitive Advantage Pay Television
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Total Pages13
Table of Contents
                            Islamic Television Project					Copyrightã2003
	MARKETING STRATEGY
		Analysis of the UK Digital Television Industry
	Industry Structure
		S.W.O.T. Analysis ITP within the DTV Industry
		Strengths
	Customers and Targeting
		Weaknesses
		Opportunities
		Threats
		Consolidation
			The Future
			FORECASTS 2001 TO 2004
			How Islamic television project will Gain and Maintain a Competitive Advantage
			Extension of the Product life cycle
			Marketing Strategy
				Competitive Rivalry
                        
Document Text Contents
Page 1

MARKETING STRATEGY
Gaining and maintaining competitive advantage

MARKETING STRATEGY ....................................................................................................... 1
Analysis of the UK Digital Television Industry ........................................................................ 2
INDUSTRY STRUCTURE ...................................................................................................................... 2
S.W.O.T. Analysis ITP within the DTV Industry ..................................................................... 4
Strengths ................................................................................................................................... 4

ISLAMIC TELEVISION PROJECT COPYRIGHT ℘ 2003
.................................................................................................................................................. 1

CUSTOMERS AND TARGETING .......................................................................................................... 6
Weaknesses ............................................................................................................................... 6
Opportunities ............................................................................................................................ 6
Threats ..................................................................................................................................... 7
CONSOLIDATION .............................................................................................................................. 7
The Future ................................................................................................................................ 8
FORECASTS 2001 TO 2004 .................................................................................................... 8
How Islamic television project will Gain and Maintain a Competitive Advantage ................... 9
Extension of the Product life cycle ......................................................................................... 11
Marketing Strategy ................................................................................................................. 11

Islamic Television Project
Copyright2003

Registration Number 4138904

Page 2

MARKETING STRATEGY
Gaining and maintaining competitive advantage

Analysis of the UK Digital Television Industry

This section of the report introduces the UK Digital Television industry by giving a

brief introduction to the way it has developed since 1998, and cites a few of the

benefits that digital television brings over analogue. Furthermore an analysis of

the current industry situation will be given, highlighting areas in which a new

entrant like Islamic television project Ltd. can capitalise on in the future. The

report will conclude with recommendations on a number of strategies available to

Islamic television project, to be able to gain and maintain a competitive

advantage within the DTV industry.

Industry Structure

October 1998 saw the introduction of digital TV in the UK — a more efficient way

of transmitting TV pictures than the existing analogue system, which it will

eventually replace. The benefits of digital TV include greater choice of channels,

better quality of pictures and sound, widescreen format and interactive services.

Analogue transmissions however, will continue for some time. Viewers will still be

able to receive BBC1, BBC2, ITV, Channel 4 (S4C in Wales) and Channel 5 as

they do now, although these services are also being made available in the digital

format. The Government will decide when analogue services are to be `switched

off’; this will depend, in part, on how quickly digital services are taken up.

Currently the government has set a target of 95% take-up of digital before the

proposed switch off. This target is hoped to be reached by 2010, but some

analysts suggest this target is too optimistic. Currently digital TV take-up stands

at approximately 33% of UK households, according to the latest ITC figures.

Islamic Television Project
Copyright2003

Registration Number 4138904

Page 6

MARKETING STRATEGY
Gaining and maintaining competitive advantage

Customers and Targeting

Weaknesses


In comparison to Sky, the programming budgets for the other digital

channels and services are relatively small, lacking the financial strength of

Sky. The sums that regular digital channels can afford to pay for films and

sporting events are considerably less than Sky.

 A serious weakness of the new digital channel broadcasters is their relative

inexperience in the pay-TV market as opposed to Sky who has dominated

the scene for over a decade in the UK. Islamic television project has

developed very naturally over the past two years but of course, still lacks

experience. This is something that is being addressed through contacts

within the industry, and the employment of media experienced personnel.

 Admittedly Islamic television project’s programming budgets are not equal

with the likes of companies like Sky, but if a substantial portion of the

market is won early on, the quality of programming will certainly improve,

as the company acquires the sums of money needed to pay for footage

libraries and the necessary production and editing facilities needed to

deliver cutting edge programming.

Opportunities

 Islamic television project hopes to be the first professional and truly

Islamic, English-speaking channel catering for Muslims and non-Muslims in

the UK and beyond. This represents the greatest opportunity for Islamic

Islamic Television Project
Copyright2003

Registration Number 4138904

Segment
Selection

Target marketing Total Product
Positioning

Achieved by
suitable Offer mix

Communicated via
a promotional mix

To target
Customers

Page 7

MARKETING STRATEGY
Gaining and maintaining competitive advantage

television project to seize, before another channel is setup that will

probably distort the true image of Islam (e.g. Ahmadiyya TV).

 Islamic television project will be producing unique and dedicated

programming for its targeted audience. As Islamic content is not yet a

mainstream product, the specialist programmes produced by Islamic

television project will be of added value. Thus these programmes could be

sold to other channels seeking Islamic content, especially on seasonal

demands, such as during the month of Ramadan. Therefore an extra

revenue stream can be realised.

 The main opportunities for Islamic television project will arise through the

exploitation of its expertise and excellence in programme production using

the facilities available to it. The ownership of valuable and extensive

programme libraries could also give a significant and rising proportion of

income from programme sales in the future. This source of income will be

gained at a market level, such as through Islamic organisations and retail

outlets. Whereas the above mentioned revenue opportunity is based at an

industry level.


Threats

 As new advertising outlets become available to marketers over the next

few years, competition for advertising revenue is bound to increase. It is

quite possible that this will drive down the price of advertising airtime

even further.

 Because Islamic television project will be the first channel to cater for

English speaking Muslims, the likelihood of future competition from a rival

channel cannot be ruled out. So to counter this, Islamic television project

must excel in all areas of digital TV broadcasting, and constantly be aware

of the changing needs of its customers, to tailor its services to meet them,

so as to remain one step ahead of the competition at all times.

Consolidation

Islamic Television Project
Copyright2003

Registration Number 4138904

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