Tivo Case Summary

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DIAGNOSIS OF THE PROBLEM:
TiVo was launched in March 1999 and aimed at transferring control from TV networks to consumers. Currently (May 2000) TiVo has a low market penetration (0.04%) but current customers highly satisfied.Experts predicted that the customer base would reach 35000- 80000 by 2000 yearend.

PROBLEM IDENTIFICATION:
To increase product awareness, customer acquisition and sales by modifying the current marketing strategy and also address the emerging competition.

SITUATION ANALYSIS:
Price:
 There are two variants of TiVo, “14hour box” ($499) and “30 hour box” ($999).
 Additionally there are service charges with three different rental plans ($9.95 per month, $99 per year, $199 for life time).
 Price of the product is high than most existing TV
…show more content…
 The production of “14-hour” recorder can be stopped and the units in inventory can be given out for free. Salesman can be given an option to take the “14-hour” recorder for free and sign an agreement of serving for at least 6 months. This would decrease the turnover rate and increase the understanding of the product amongst sales force that would, in turn, increase the sales.
 Simplification of User Interface:
 The only feature that TiVo lacks in comparison to Replay TV is30 second skip button – “Quickskip”. So the RnD department should work towards incorporating the same at the earliest.
 Introduction of a referral programme where incentives would be offered to people whose friends or relatives buy an additional TiVo. This would increase the acquisition rate substantially.
 Shifting to mass media advertising campaign would require a huge capital induction and prior identification of market segments plus targeting the desired segment (couch potatoes and business executives) with appropriate print and audio-visual

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