Hbs Tivo Case

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DIAGNOSIS OF THE PROBLEM:
TiVo was launched in March 1999 and aimed at transferring control from TV networks to consumers. Currently (May 2000) TiVo has a low market penetration (0.04%) but current customers highly satisfied.Experts predicted that the customer base would reach 35000- 80000 by 2000 yearend.

PROBLEM IDENTIFICATION:
To increase product awareness, customer acquisition and sales by modifying the current marketing strategy and also address the emerging competition.

SITUATION ANALYSIS:
Price:
There are two variants of TiVo, “14hour box” ($499) and “30 hour box” ($999). Additionally there are service charges with three different rental plans ($9.95 per month, $99 per year, $199 for life time). Price of the product is high than most existing TV sets and very meagre proportion of consumers are ready to pay this high, a price. Product:

The product provides various features such as:
Pausing LIVE TV (“wow!” Factor)
EPG(Electronic Program Guide)- User Interface available with the device Thumbs up and Thumbs down feature, which allows the user to set their preferences based on which a particular program will be recorded proactively by the TiVo box. These preferences are also used by TiVo for suggesting programmes to users. Season Pass- automatically records all the episodes of user specified shows. Promotion:

Confusion around the TiVo product positioning in the press ( PVR, DVR ,EDR ,IVR ,On Demand TV) Focus on early adopters in their initial marketing campaign. Very limited mass media campaign.
Place:
TiVo collaborated with Consumer Electronics Superstars SONY and PHILIPS and TiVo subsidised the two companies so that they would manufacture the black box distribute it and promote it to retailers. TiVo became nationally available through Best Buy, Circuit city and Sears

ALTERNATIVES:
Reduce the price of 30 hour model to $399 and stop production of 14 hour model while releasing the existing stock of 14 hour model for...
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