The disappointing sales performance during the Christmas 1999 season ended up being a priceless lesson for TiVo’s marketing team: it was the catalyst that created the need for a TiVo’s new communications strategy. However, defining this new marketing campaign was challenging, especially after the feedback received about the product indicated issues like limited awareness and hard-to-communicate functionalities. The main focus of this new marketing campaign is to select a positioning strategy that will speed up the adoption of TiVo among consumers. The marketing team has three options on how to position TiVo: 1) as an enhanced digital video recorder, 2) as a product that gives viewers the ability to create their own television network, 3) or as a super VCR.
I recommend that they position TiVo as the super VCR that gives users a unique TV experience.
TiVo’s potential goes beyond the introduction of an innovative electronics product; it has the power to change the habit of how Americans watch television. So far TiVo’s penetration has been extremely limited, many consumers are not aware of its existence, and at the point-of-sale, the salespeople are encountering difficulties in explaining the benefits of the product. Moreover, TiVo represented a totally new innovative product that targeted the enhancement of television viewing, which was clearly not on anyone’s priority list. To communicate TiVo’s advantages, the marketing team has considered using different advertising sources for different purposes. However, this approach eliminates the possibility of communicating a consistent message across all potential buyers. Without a consistent message, consumers will be confused of what TiVo truly represents.
Most consumers are aware of what a VCR is, so positioning TiVo as the super VCR would make it easier for consumers to associate it with a familiar product and its functions. If the message behind...