Tivo

Topics: Marketing, Advertising, Marketing research Pages: 7 (545 words) Published: February 12, 2015
Digital video recorder
Watch what you want, when you want
Creates richer, more enjoyable experience

Issue statement
Low awareness of the product, resulting in only 0.04% market penetration Situation analysis
Company
Offer high-quality, valuable product with much satisfaction 0.04 market penetration
charged service fees
strong strategic ties with Sony and Philips, co branding
competition
Replay TV Ultimate
ReplayTV: comparable quality, pause live TV, record programs, price $200 above TiVo Key: quickskip
UltimateTV: watch and record, simultaneously, 30s skip, subscript Customers
The average American spends 4.3 hours/day watching tc
After TiVo: 31%
31%
strength
innovators
high customer satisfaction
widespread availability
unlimited funding
weakness
lack of brand awareness
lack of product education
lack of marketing
expensive
opportunity
diversification
advertising: telescoping Ad
high market growth
threat
low barriers to entry
powerful competitors
easy to imitate
future growth opportunities
status quo
continue with limited mass media
$999 for a 30 hours model black box
marketing expenditure (exhibit 3)
marketing
concentration of market segment
a super VCR
season pass
live TV features
benefits of adopters
establish new schemes to maximize exposure levels
early adopters
build the buzz
where TiVo stands
advertisement
specify the different modes of media for different purposes use of telescoping Ads
allocating TiVo’s resources to be cost efficient
implement incentives for sales persons to purchase TiVo products use of brochures
pricing strategy
price skimming
charges at the maximum willingness to pay initially
gradually reduces price to include other segments
price penetration strategy
fast diffusion rate
discourage the entry of competitors
creates goodwill among consumers, increased word of mouth marketing steps:
set price at MR=MC
$399
price elastic 4.6
increased subscription revenue * constant given 276% user increased changes in consumer habits= lead to exponential increases
5 year in frame
loss in sales
gains in revenue from subscription
turning our temporally net loses into long term profit
risk
brochures
long term feasibility
internal control by mangers needed
price penetration
depend on external environment
must continue to offer consumers with benefits
strength
innovative product
brand recognition
customer loyalty
interactive services
strong partnership
multiple revenue stream
ability to raise capital
weakness
product use confusion
weak marketing
expensive
reliance on partnership
not profitably
opportunities
e-commerce
sponsored content
high market growth
market research data
threats
reliance on single suppliers
legal challenges
inability to skip ads
consumers
unmet needs
control over the television network
solution of the couch potatoes
use as kid’s treatment
skip the advertisement
competitors
few competitors
R: include service fees
ultimate: technologically superior but will launch later
Jovio launch service for free but more ad
corporation:
outsourcing hardware
thumb up/down button to analyze the preference
alternative1: status quo

keep the same marketing strategy
product might juts need more time
pros:
continue company mission of
no added costs of changing strategy
cons
sales will stay low
continue awareness
2. Strategic partnership
Dierc TV
Pros
Short term sales increase
Strong partner in support
possible help with product explanation
cons
forced competition with Microsoft
narrowing of market size
long term sales decrease
3. information based marketing
create a totally new marketing program
similar to what competition is doing
pros
strong product awareness by consumers
shorter decision making time by consumers
cons
ads may not be as “funny” as before
but product will sell
consumers might be beyond initial awareness...
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