Tivo Case Analysis

Topics: Marketing, TiVo, Digital video recorder Pages: 4 (1253 words) Published: July 14, 2008
TiVo and Consumers
TiVo is a brand of digital video recorder that offers numerous functions far advanced than the regular VCR or DVD player. The TiVo recorder has the ability to pause and replay live TV as well as an array of flexible recording services that is personalized for the consumers. The adoption of TiVo when it was first released was facilitated by the belief that consumers who owned a TiVo black box and subscribed to the TiVo service can take control of what programs to watch and when to watch them. The device attracted consumers who were tired of missing their favorite shows because they were too busy to watch them. TiVo also enabled people to fast-forward over irreverent advertising. TV watchers can “pause” a live show to conveniently handle interruptions too. As shown above, the services that TiVo provides allow the consumer to be in control and makes TV viewing “a lot more enjoyable.” Despite the high satisfaction from current users, there was a lack of awareness for the brand and the category in the market. Non-users were having a hard time understanding the product. TiVo’s black box required extensive explanations and demonstration in order for consumers to understand it. Even if the consumer understood TiVo’s features, the price might deter the consumer from buying it. Furthermore, the lack of market awareness made the adoption of TiVo difficult. In order for TiVo to increase its awareness, they should strive to set a specific target market. Young professionals, sports fans, and families would be the ideal target market since TiVo’s pause and recording features would add some much needed flexibility to their busy lives. Branding Strategy

TiVo’s proposed value proposition is more for more. It provides more benefits for a higher price. For example, unlike the VCR, TiVo can record up to thirty hours of television content without the use of videocassette tapes. Because of special features like these, TiVo is priced $200 to $800 higher than a...
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