| Business School | |TiVo in 2002 | |Case Analysis |
| Emanuele Grazioli, | |5/20/2010 |
1. Point of View
2. Marketing Objectives and Relevant Case Facts
3. Problem/Opportunity Statement
4. Alternative Courses of Action
5. Evaluation of Alternatives
7. Implementation Plan
8. Contingency Plan / Risk Analysis
1. POINT OF VIEW
Taking the marketing manager perspective the main issue is centered on the department’s inability to classify the recently collected customer experience data to clearly explain consumer behavior; more specifically, purchasing behavior. The department is unable to connect customer experience to consumer behavior, and customer behavior into sales. In addition, the current product message is not reaching customers adequately.
2. MARKETING OBJECTIVES AND RELEVANT CASE FACTS (RENIER)
The current situation can be analyzed using the relavant finance and marketing facts.
The finance facts are:
• Steady, but less than expected sales;
• Steady market growth at approx. 20% per quarter;
• Heavy marketing investments lead to significant net losses; • Gross margins turned positive for first time in last half year.
The marketing facts are:
• Market research yielding customer experience; customer satisfaction and equipment usability; • Two customer segments identified;
• Marketing department has decided more emphasis should be put into the message of convenience; • Marketing research has focused on current client base, without investigating consumer behavior of other consumers.
Focusing on these facts the marketing objectives should be to increase understanding of consumer behavior. Key areas of focus for the marketing department will be to identify the reasons for the purchase, the purchase drivers and their sources. At this point, the cultural, social and individual forces, specifically motivation and perception, and the psychological processes need to be determined. Finally, the buying process needs to be examined.
The increased understanding of the consumer behavior should lead to opportunities to improve the product message and thus influence consumer behavior more effectively.
In summary, the plan is to understand our current customer’s behavior to understand buying patterns. Then, adjust our processes and message as needed. And, develop a plan to stimulate identified drivers through the product message.
3. PROBLEM/OPPORTUNITY STATEMENT
The main problem TiVo faced was not achieving the desired sales level, leading to significant financial losses. In order to better address this issue the company’s approach was to prepare a series of surveys with its current clients in order to better understand their level of satisfaction with the product, reason to buy, most important product features, and demographics. These surveys revealed a very high general customer satisfaction, but gave limited insight in the consumer behavior in the buying process. The problem statement for this situation is therefore:
In order to answer the problem statement presented above and to set up an effective action plan to increase sales, TiVo has to overcome three critical obstacles: 1. The company needs to shift focus from understanding current clients to understanding consumers in general (that is: potential clients). This implies a shift in marketing research focus. 2. The company needs to find a way to stimulate recognition of a problem in...
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