tivo "tv your way "
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TiVo – TV YOUR WAY
GROUP 4AAshwin
Jun Hua
S.Santhosh
Sumit.A
Swarn Kaur Rajpal
EXECUTIVE SUMMARY
Upon introduction, in 1999, TiVo was successful in designing a marketable product and a brand identity
But TiVo faced a significant hurdle in its development, it was running in losses and had a low penetration rate.
By conducting a situational analysis and an evaluation of alternatives, it was found that its overall financial and sales expectations can be satisfied if its plan of actions includes strategies to maximize its exposure, by concentrating on its core product offering and positioning itself as the market leader.
PROBLEM / ISSUE STATEMENT
TiVo’s main challenge is to decide between the various advertisements which have been drafted
How should TiVo now segment the market?
Which segment would it be most efficient to target most aggressively at this stage?
What positioning statement could they use as a guide for action, to bring TiVo ahead of the competition?
Expensive, low penetration rate and negligible profits
SITUATION ANALYSIS
DVR Market
The inception of the DVR market is synonymous with the introduction of TiVo. Hence, TiVo could leverage itself on an ‘early-mover advantage’
The potential of the market rests on first targeting early adopters and then gradually moving towards capturing the mainstream market base.
The growth rate of the market is estimated to be high and lucrative.
SITUATION ANALYSIS
PESTLE Analysis
Political Patent protection, Copyright act, Ads
User –friendliness, Intensity of Competition
Pricing, Threat to advertising, Market size, Elastic demand
Adoption, New segments
Potential product features, Industry standards,
Behavioral
Economic
Social
Technology
SITUATION ANALYSIS
SWOT Internal
External
Strengths• Innovative technology• Good distribution• Customer satisfaction• New and convenient• Co-branding
Weaknesses
Opportunities Threats
PERCEPTUAL MAP
High Price
Low Price
High Functionality
Low Functionality
DVD- Video Recorder
Replay TV
TiVo
VCR
Ultimate TV
ALTERNATIVES
Advertising Network Executive TV ad Sports Education TV ad Cop TV ad Kids TV ad Road rage Print ad Pause live TV Print ad
Partnership with DirecTV and AOL
Price drop from $999 to $399
Easier way to explain what is TiVo exactly
Improve brand awareness
Decide the target segment - families, young adults, professionals. Positioning strategy and steps
RECOMMENDATIONS
Less Energy on moving into markets such as International Media and Broadband
Concentrate in Marketing Strategy more towards it core project
Core products are stand alone systems and deals with Comcast and DIRECTV and they should concentrate in selling their core products
These are not only profitable and also the reasons why TiVo popular for
Degree of Awareness and category remained negligible. TiVo needs a Demo because it is difficult to explain and understand
Give more incentive when people buy TiVo.
ACTION - PLAN
Marketing team should craft the element of a marketing plan.
Expense of marketing and sales team should be increased.
Price and subscription charge to be reduced
Recommendation and Testimonials
Offer “ Referral Discounts”
Direct Marketing Channel
Online Distribution method
Re-focus Commercials and ad campaign
POSITIONING STATEMENT
Old positioning statement
“The device is like having your own TV network where you get to decide what's on and when.”
New positioning statement must ladder on TiVo’s value proposition, identify a single most important benefit that delivers value to the customer and differentiates TiVo from the competition.
“TiVo is the first in the entertainment market to offer a simple device which allows viewers to pause live TV.”