Tivo
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
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