Marketing Plan – Cable – Time Warner Cable
BUS 620 – Managerial Marketing
Dr. Uchenna Nwabueze
August 30, 2010
The marketing plan for Time Warner Cable reviews the market conditions, including emerging technologies and competitors and provides a marketing plan with focus on maintaining current customers and adding new commercial customers by focusing on cloud offerings, teleconferencing and telemedicine.
Marketing Plan – Time Warner Cable
Time Warner Cable (Time Warner Cable), the second largest cable provider in the United States, continues to face stiff completion from the number one cable company Comcast and satellite pay-for-TV providers DishNet and DIRECTV. New competitors may be a bigger challenge to Time Warner Cable’s survival, than the existing pay-for-TV companies previously mentioned. New competitors include: telephone or telco communication companies utilizing internet protocol television (IPTV), Netflix with on demand video, Hulu with free video of top shows and video game machines that can stream free video to a larger screen. Pay-for-TV provider customer service levels have never been satisfactory and recent price increases have left consumers looking for alternative options (Goldman, 2010). Time Warner will introduce ala-carte cable pricing, allowing the consumer to choose specific stations based on their personal preferences. Time Warner will replace the reduced profits of ala-carte cable pricing by backhauling, for commercial applications including, teleconferencing, telemedicine and cloud computing. Time Warner Cable will also focus on improving customer service levels by narrowing service windows and offering a bonus plan for technicians, based on first time repair yield and customer feedback. Time Warner Cable’s investment in advanced fiber optic technologies has them well poised to lower consumer television, phone and internet service expenses, while replacing profits by focusing on commercial applications. Company Overview
Time Warner Cable is the second largest cable provider and fourth largest television communications supplier traded on the New York Stock exchange as TWC. Time Warner has invested heavily to create robust, technologically sound high definition transmission networks strategically focused on five geographic regions within the United States. Time Warner Cable offers consumer pay-for-TV options including; Home Box Office, cable telephone service and internet broadband service. TWC serves more than fourteen million customers with video, high-speed internet and home phone services. Time Warner Cable also offers phone, internet, ethernet and cable television to businesses of varying sizes.
The cable television market is one sector of the pay-for-TV market. Pay-for-TV is found in ninety percent of homes, in the United States, costing an average of seventy-one dollars monthly (Goldman, 2010). The cable television market is experiencing fierce competition from satellite carriers, fiber optic providers and emerging technologies.
Cable has enjoyed more longevity than fiber optic or satellite, but customers remember the days when outages were a common occurrence. Cable service levels are extremely low with an overall customer satisfaction of fifty-nine on a scale of one hundred, lower than even the airline industry (Yao, 2010, p. E2). Cable service stories are riddled with complaints of technicians unable to complete repairs, extremely wide service appointment windows, technicians who never show and technicians with bad attitudes.
David Goldman of CNNMoney.com shared survey results, which indicated one in eight consumers will eliminate or scale back on their pay-for-TV service in 2010. Consumers indicate the rising cost of pay-for-TV options, the emerging on-demand internet video options, and the current overall economic situation as the...