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.”