Hbs Tivo Case

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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.

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

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.
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

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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