Tivo Case Analysis

Topics: Marketing, Sales, Television Pages: 4 (978 words) Published: May 30, 2014

TiVo Business Case
Company background:
TiVo Inc. is company that produces small black boxes which contain digital video recorder that lets people watch what they want and when they want. It gives people the freedom to pause and replay live TV. TiVo has evolved from the pioneer of DVD to its current role as the leading provider of advanced television. The company creates consumer products that deliver a branded viewing experience that combines tradition television with next-generation television. TiVo positions itself as the personal television provider- consumers have total control in what they watch. TiVo established manufacturing partnerships with various companies including Sony and Phillips. TiVo products are distributed throughout retail chains such as Sears and Best Buy. The prices for TiVo products range between $349 and $799 with an additional $10 a month for the TiVo service. TiVo’s value proposition is more for more. TiVo provides more benefits at a higher cost. In comparison to VCR, TiVo can record upwards of 30 hours of television content without the use of videocassette tapes.

TiVo targets males and females between the ages of 25 and 55, usually earning higher incomes, which is due to the high prices. TiVo also targets those individuals who spend a lot of their leisure time watching TV. Most TiVo consumers are smarter then your average consumers because they know the difference in technology and the benefits that come with owning a TiVo

Adoption (As mentioned In class lectures)
It has been very difficult for TiVo to get consumer adapted to their products. Some of the factors which make adoption difficult include: high prices, need for extensive demonstration in stores, ineffective sales people, lack of sales promotion, and the ability to change peoples TV habits. Currently, TiVo is the growth stage of the product life cycle.

The main problem the company is facing is a decrease in sales over the past years. TiVo sales...
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