Harvard Case - Discovery Finds Its Way in India-Curiosity Built the Brand
"Discovery Finds Its Way in India-Curiosity Built the Brand" Harvard business case study is written by Edward W. Rogers, Geetika Shah. It deals with the challenges in the field of Strategy. The case study is 23 page(s) long and it was first published on : Jun 16, 2015
At Fern Fort University, we recommend Discovery Communications implement a multi-pronged strategy to capitalize on the burgeoning Indian market, focusing on localized content, strategic partnerships, and a robust digital presence. This strategy should be guided by a deep understanding of the Indian consumer, their evolving media consumption habits, and the unique cultural landscape.
2. Background
This case study explores Discovery Communications' entry into the Indian market, a complex and rapidly evolving landscape. The company faces a significant challenge in navigating the diverse cultural preferences, competitive media environment, and regulatory landscape. Discovery's success hinges on its ability to adapt its programming to resonate with Indian viewers while maintaining its core brand values of exploration, discovery, and education.
The main protagonists are:
- Discovery Communications: A global media company with a strong presence in non-fiction programming, seeking to expand its reach in India.
- Indian Consumers: A diverse and growing population with diverse media consumption habits and a strong affinity for local content.
- Indian Media Landscape: A competitive market with established players and emerging digital platforms vying for audience share.
3. Analysis of the Case Study
Industry Analysis:
- Porter's Five Forces: The Indian media industry exhibits high competitive rivalry due to the presence of established players like Zee Entertainment Enterprises and Star India, as well as emerging digital platforms. The threat of new entrants is moderate, while the bargaining power of buyers is high due to the abundance of choices. The bargaining power of suppliers (content creators and distributors) is moderate, and the threat of substitutes is high due to the availability of alternative entertainment options.
- SWOT Analysis:
- Strengths: Strong brand recognition, vast content library, expertise in non-fiction programming, global reach.
- Weaknesses: Limited understanding of the Indian market, potential language barriers, lack of local content, dependence on cable TV distribution.
- Opportunities: Growing Indian media market, increasing internet penetration, rising demand for localized content, potential for digital partnerships.
- Threats: Intense competition, piracy, regulatory challenges, evolving consumer preferences.
Strategic Analysis:
- Value Chain Analysis: Discovery's value chain in India needs to be adapted to address the unique market dynamics. This involves sourcing local content, partnering with Indian distributors, and leveraging digital platforms for reach and engagement.
- Business Model Innovation: Discovery needs to explore innovative business models to succeed in India. This could include subscription-based services, partnerships with mobile operators, and creating localized content for digital platforms.
- Market Segmentation: Discovery should segment the Indian market based on demographics, media consumption habits, and cultural preferences. This will enable targeted marketing and content development.
4. Recommendations
- Localize Content: Discovery should prioritize the production and acquisition of locally relevant content that resonates with Indian viewers. This includes documentaries, reality shows, and factual entertainment programs tailored to Indian interests and cultural sensitivities.
- Strategic Partnerships: Discovery should forge strategic alliances with local media companies, content creators, and digital platforms. This will provide access to a wider audience, distribution channels, and local expertise.
- Digital Transformation: Discovery should accelerate its digital transformation strategy in India, leveraging the internet and mobile platforms to reach a wider audience. This includes developing dedicated websites, mobile apps, and social media channels for targeted content delivery and engagement.
- Pricing Strategy: Discovery should adopt a flexible pricing strategy to cater to the diverse income levels in India. This could include tiered subscription models, partnerships with mobile operators for bundled offers, and free-to-air channels with limited advertising.
- Marketing and Brand Management: Discovery should employ a multi-channel marketing strategy that leverages traditional media, digital platforms, and social media to build brand awareness and engagement among Indian consumers. This includes targeted advertising, influencer marketing, and local events.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of the Indian media landscape, Discovery's core competencies, and the evolving consumer preferences. They aim to:
- Core Competencies and Consistency with Mission: Leverage Discovery's expertise in non-fiction programming while adapting to the Indian market's unique demands.
- External Customers and Internal Clients: Cater to the diverse needs of Indian consumers while engaging with local partners and content creators.
- Competitors: Differentiate Discovery's offerings through localized content, strategic partnerships, and a robust digital presence.
- Attractiveness: Enhance Discovery's market share, profitability, and brand equity in India through a sustainable and adaptable strategy.
6. Conclusion
Discovery Communications has a significant opportunity to establish a strong presence in the rapidly growing Indian market. By embracing localization, strategic partnerships, and digital transformation, Discovery can capitalize on the burgeoning demand for quality entertainment and non-fiction content. This strategy will enable Discovery to build a loyal audience, achieve sustainable growth, and solidify its position as a leading media player in India.
7. Discussion
Alternatives:
- Focusing solely on English-language programming: This would limit Discovery's reach and appeal to a smaller segment of the Indian population.
- Acquiring a local media company: This could provide immediate access to a large audience and distribution channels, but carries significant risks and integration challenges.
Risks and Key Assumptions:
- Cultural sensitivity: Understanding and respecting the diverse cultural nuances of India is crucial for content development and marketing.
- Digital infrastructure: The success of Discovery's digital strategy depends on the availability and accessibility of reliable internet and mobile infrastructure.
- Competition: The Indian media market is highly competitive, requiring Discovery to continuously innovate and adapt its offerings.
8. Next Steps
- Market Research: Conduct in-depth market research to understand the preferences, media consumption habits, and cultural sensitivities of Indian consumers.
- Content Development: Develop a comprehensive content strategy that includes localized programming, acquisitions, and partnerships with Indian content creators.
- Digital Platform Development: Build a robust digital platform with dedicated websites, mobile apps, and social media channels for content delivery and engagement.
- Strategic Partnerships: Identify and establish strategic alliances with local media companies, distributors, and digital platforms.
- Marketing and Brand Management: Implement a multi-channel marketing strategy to build brand awareness and engagement among Indian consumers.
This strategic roadmap will guide Discovery Communications towards a successful and sustainable presence in the dynamic Indian media market.
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Case Description
Discovery Communications Inc., an American global networks company, had entered the Indian television market in 1995 with its eponymous channel offering that focused on non-fiction, infotainment programming. Nearly two decades later, steered by a solid senior management team, it had built a formidable operation with 11 channels spanning various genres and created a strong brand presence in India. Though the company was a leader in almost all the genres in which it operated, the Discovery team knew that they could not afford to be complacent even for a single day in the extremely competitive Indian television market. With close to 800 channels fighting for viewership daily, they had to make quick and tough decisions day in and day out. Looking back on their journey and some of the strategic moves they had made in India, it was evident that they had managed to pick up certain distinct capabilities along the way. Not only had they successfully "Indianized" a global brand, they had also deftly overcome some of the challenges inherent to the television industry in India. What was next for Discovery? This was the question that the team was grappling with in 2014. With their most recent launch, "Discovery Kids," it seemed that they were once again moving in the direction of children's edutainment. Did this mean they were coming full circle? Could they successfully apply what they had learned from the past to the unknown future? How could they do things differently and yet stay true to their vision and brand promise of making the Discovery television experience deep and enriching? The case presents the hard choices that Discovery needed to make at several strategic junctures as the cable television market changed and evolved over the years. It facilitates an in-depth discussion on whether, and how, Discovery has developed the ability to make astute decisions and acquired the necessary agility to respond to the dynamic market in India.
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