PTCL SMART TV

FAILURE
Amna Mubarak
1306-MS-ESME
Marketing and Business Development
Government College University Lahore
Product Profile:

 An IPTV service in Pakistan owned by PTCL.

 Launched on 14 August 2008.

 Available in 15 major cities of Pakistan.

 Equipped with 125 channels.

 Total price is Rs.10, 000(installment plan is available too) payable at the time of
purchase, rental charges are applicable at every month.

Why the product is failed?

PTCL launched this product in Pakistan first time that is mainly competing with cable
operators.The marketing mix of this product with the corresponding 4 Cs model is as following:

The Product is a substitute of cable for the customer; cable operators are providing 200+
channels, in comparison of Smart Tv, which is providing currently 125 channels- most of which
are covering local Pakistani channel. In addition there are only 3 PTCL operated movie channels;
on the other hand, most cable operators are providing at least 6 self operated movie channels.

The price of Smart Tv is set very high. One time charges are Rs. 10,000 including initial
installment of IPTV, modem, remote control and manuals, payable at the time of purchase. It
costs Rs. 500 per month as an installment. Additionally Rs. 300 is deducted from PTCL bill as
rental for IPTV services. On the other hand, cable operators charge for their services ranging
from Rs. 250 to 450, depending on the locality. Customers are unwilling to buy such services on
very high rates, when it is available at very low price with variety of channels. The launching
company must consider its price strategy to make this product a victorious one in the market.

Thirdly, placement of this product is in all the major cities of Pakistan. Because of the high
initial payments and subsequent higher rental charges, company did not offer it in the small cities
of country.

Lastly, the product is advertised on all types of media, but the company observed no big change
in sales volume. So, ads are relatively not very aggressive now days in this case, in the
comparison of the other products of PTCL. They are still trying to capture the market.

Conclusion

After reviewing the marketing mix of Smart TV, we come up with the point that the product is
failed in the market because of the high PRICE, where the substitute is available at lower price.
If PTCL want to make this product fit in the market, it has to find the ways for decreasing the
offered price of Smart TV.