By working with end product makers across 5 screens, Dolby seeks to move beyond its image as a sound technology for theatres. Will it be able to make the cut in a relatively dormant market?
They define it as the one campaign that dramatically raised the status of Intel from being a component manufacturer to a powerful B2C brand. Thanks to that campaign, even the most technologically challenged of consumers ask whether a computer has an ‘Intel Inside’ before buying.
Intel’s success has several positive lessons for similar brands in the industry. The case of Dolby Laboratories in India is somewhat similar, albeit with a twist. The company, which posted a revenue of $955.5 million (growth of 3.5% yoy) and a profit of $309.27 million (growth of 9.1% yoy) globally for the financial year ended November 2011, is already a known name in India. Thanks to their short, yet impactful, commercial at the beginning of every movie, of us cine-goers are well aware for years that our movies generally have ‘Dolby inside’! The company in fact did a survey some time back and found that the brand recall factor in percentage terms was in the mid to high 80s.
Surprisingly though, the Dolby people haven’t really moved beyond that positioning for the past several years in the country. More recently, they have decided extend their presence to 4 more B2C spaces – TV, mobile (including tablets), PCs & gaming.
Dolby in itself is a well differentiated player in the business of surround sound technology. The real problem that exists is with perception of the technology itself, rather than the competition. Ashim Mathur, Head-Marketing, Dolby India, comments to 4Ps B&M, “While Indian users have moved quite far with awareness of picture quality – from B&W to CRT colour to flat to LCD to plasma – sound quality is normally taken for granted.”
For now, the most exciting prospect for Dolby in India is TV and home theater, and they are particularly excited about the trends in this space with respect to HD (High Definition) TV. HD-DTH penetration pan-India is likely to reach 1% (110 million C&S households) and more than 10% of urban C&S households by 2012, which is expected to be an inflexion year for the sector (Kotak Securities report). A lot of HD content is being produced by channels like Star and there is regional HD content as well. Dolby provides the software in terms of HD content production, dissemination and also the playback device or the TV. Just like Intel, it is doing some co-branding with brands like Star TV, Airtel DTH and Panasonic; telling consumers that the products/programmes of these players use Dolby surround. On the home theater front, the penetration is still abysmally low. Ashim asserts that price is not the factor, as a number of people are buying TV sets in the range of Rs.50,000/- or so, and at least one in five would agree to spend Rs.15-20,000 more in enhancing the overall experience. The real problem is awareness and appreciation of the experience, which is a challenge for Dolby itself as mentioned earlier.
Dolby is approaching this problem largely through working with brands extensively. They are involved in selling the idea of Dolby to these players, training their staff in every aspect of Dolby technology and improving visibility of the technology. Besides, they are setting up demo areas in large format stores where customers are asked to experience Standard Definition TV without Dolby Surround in one area and HDTV with Dolby Surround in the other, so that they can appreciate the difference. The company is exploring PR and online media as opposed to TV, as the building awareness and appreciation is considered more crucial in the initial stages. Once they start gaining traction with Dolby enhancement features in mobiles and PCs, they plan to go pan-India more aggressively.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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They define it as the one campaign that dramatically raised the status of Intel from being a component manufacturer to a powerful B2C brand. Thanks to that campaign, even the most technologically challenged of consumers ask whether a computer has an ‘Intel Inside’ before buying.
Intel’s success has several positive lessons for similar brands in the industry. The case of Dolby Laboratories in India is somewhat similar, albeit with a twist. The company, which posted a revenue of $955.5 million (growth of 3.5% yoy) and a profit of $309.27 million (growth of 9.1% yoy) globally for the financial year ended November 2011, is already a known name in India. Thanks to their short, yet impactful, commercial at the beginning of every movie, of us cine-goers are well aware for years that our movies generally have ‘Dolby inside’! The company in fact did a survey some time back and found that the brand recall factor in percentage terms was in the mid to high 80s.
Surprisingly though, the Dolby people haven’t really moved beyond that positioning for the past several years in the country. More recently, they have decided extend their presence to 4 more B2C spaces – TV, mobile (including tablets), PCs & gaming.
Dolby in itself is a well differentiated player in the business of surround sound technology. The real problem that exists is with perception of the technology itself, rather than the competition. Ashim Mathur, Head-Marketing, Dolby India, comments to 4Ps B&M, “While Indian users have moved quite far with awareness of picture quality – from B&W to CRT colour to flat to LCD to plasma – sound quality is normally taken for granted.”
For now, the most exciting prospect for Dolby in India is TV and home theater, and they are particularly excited about the trends in this space with respect to HD (High Definition) TV. HD-DTH penetration pan-India is likely to reach 1% (110 million C&S households) and more than 10% of urban C&S households by 2012, which is expected to be an inflexion year for the sector (Kotak Securities report). A lot of HD content is being produced by channels like Star and there is regional HD content as well. Dolby provides the software in terms of HD content production, dissemination and also the playback device or the TV. Just like Intel, it is doing some co-branding with brands like Star TV, Airtel DTH and Panasonic; telling consumers that the products/programmes of these players use Dolby surround. On the home theater front, the penetration is still abysmally low. Ashim asserts that price is not the factor, as a number of people are buying TV sets in the range of Rs.50,000/- or so, and at least one in five would agree to spend Rs.15-20,000 more in enhancing the overall experience. The real problem is awareness and appreciation of the experience, which is a challenge for Dolby itself as mentioned earlier.
Dolby is approaching this problem largely through working with brands extensively. They are involved in selling the idea of Dolby to these players, training their staff in every aspect of Dolby technology and improving visibility of the technology. Besides, they are setting up demo areas in large format stores where customers are asked to experience Standard Definition TV without Dolby Surround in one area and HDTV with Dolby Surround in the other, so that they can appreciate the difference. The company is exploring PR and online media as opposed to TV, as the building awareness and appreciation is considered more crucial in the initial stages. Once they start gaining traction with Dolby enhancement features in mobiles and PCs, they plan to go pan-India more aggressively.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
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