Tivo Case

Topics: Digital video recorder, TiVo, Marketing Pages: 6 (1627 words) Published: April 10, 2013
TiVo Case Analysis|
Team Report – Team C|
Andres GalindoTracey Keiter Mike MacIntyre Kristan King Nevins Martin Penagos Raghu Ramaiah |


Table of Contents
Executive Summary3
The Three C’s3
Marketing Mix4

Format for case write-up
1. Your case write-up should begin with an executive summary that highlights the major issues in the case and clearly states your recommendation(s) based on your thorough analysis the aforementioned key issues (this should be one paragraph). The remainder of the case write-up should present in greater the detail the analyses which support your conclusions. 2. The role of the discussion questions is to highlight some of the key aspects of the case. You should also identify other factors that you feel are relevant to the situation at hand that may not be explicitly listed in the case and be prepared to include or discuss those factors in your analysis. 3. The questions are designed to get you to think about certain issues. The issues that you identify as the major issues in the case are the ones that you should focus on in your write-up. So, don't answer the questions on a question-by-question basis. Rather, stitch together the issues in a smooth way in your write-up. 4. Be sure to use the data in the case when appropriate. Write-ups which ignore relevant data are incomplete. However, note that just because some data is presented in the case, it does not necessarily mean that the data is crucial or relevant to the solution you propose. Good managers know what data to use, and how that data must be used.

Rogers Framework: Diffusion of Innovation
Speed of Diffusion of New Products is driven by:
Relative Advantage: Whether innovation is perceived as better than what it is replacing. Compatibility: Whether the innovation is perceived as compatible with existing consumer behavior Complexity: Whether the innovation is perceived as difficult to understand and use Trialability: Whether the innovation can be experimented with on a limited basis Observability: Whether the innovation is visible to other people (social effects) Risk: The degree to which adopting the innovation is perceived as leading to a bad experience for the user that the user cannot protect himself from

Executive Summary
In the late 1990’s, Jim Barton and Michael Ramsay left Silicon Graphics with an idea they thought would reach immediate popularity: a device which would provide an easy-to-use interface between an overabundance of channels and shows and how people actually enjoy their TV consumption. Over year after launch, TiVo had signed up 42,000 subscribers and had a current rate of 14,000 new subscribers per quarter, however, that was only .04% of the market penetration in the United States. The early adopters of TiVo seemed very satisfied and raving about the technology. However, TiVo was struggling to position its product effectively in the market place. The TiVo box and was referred to as a personal video recorder (PVR), digital video recorder (DVR), personal digital recorder (PDR), intelligent video recorder (IVR), or on-demand TV. Also, the retail store sales person introduced the product inconsistently, some calling it a VCR without tapes while other highlighting the “Pause/rewind live TV” functions of TiVo. All these led to confusion about the product among the consumer. There seems to be a lack of coherent marketing communication and promotion plan. TiVo needs to position its product to appeal to the “early majority” group and cross the chasm between early adopters and early majority group.

We suggest that TiVo create a clear and concise positioning statement, which will help them develop an effective marketing mix. Our recommendation is that...
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