Professional Documents
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MARK 5311
Zino Egweh Johnny Ferraro Brittany Culberson Throy Campbell Amanda Rodriguez Heungsun Lim
TABLE OF CONTENTS
Introduction
What is TiVo
TiVo v. Competitors Dilemma Consumer Behavior Model Options Recommendations TiVo Today
Financials
Q&A
Problems
INTRODUCTION
Then came TiVo TiVo was founded in 1997 by Mike Ramsey and Jim Barton
TiVo revolutionized the home entertainment industry when it pioneered the DVR technology PVR=DVR personal/digital video recorder September 30,1999: TiVo made its initial public offering for $16 per share
TiVo captures TV from satellite, cable and air, turns it into a digital form and stores it in a hard drive
(Stephen Wildstrom, Business Week)
DVR allows consumers to record TV programs on a hard disk instead of video cassette (VCR) TiVo consumers can watch their favorite shows during leisure time TiVo consumers can pause live TV, fast forward through commercials, go back for instant replay and watch programs at a convenient time
COMPETITION COMPARISON
o TiVo
Has become a verb in households, i.e. I TiVoed that show last night Easier to use according to consumersearch.com WishList feature allows viewer to search for specific actors, directors, or even sports teams and automatically records them for you Offers parental controls in the form of TiVo Kidzone by pre-screening programs for age appropriate rating TiVo to-go allows a viewer to transfer recorded material to personal laptops, other TiVo customers (mainly used for home video) and other mobile devices TiVo online services allow the viewer to set up and maintain their TiVo digital recording device via internet access. (This feature is only available on the series 2 and higher, not available at time of case study.) Requires separate TiVo box to be purchased along with monthly service fees TiVo season pass allows viewers to record every episode of their favorite shows whenever they play. Can download rented or purchased movies from Amazon.com (current market product)
DVR COMPETITION
Many cable, internet providers can provide DVR service without additional monthly service fees, generally less than that of TiVo Service can be rented if desired instead of purchased Many programs do not come with contracts allowing unrestricted entry and exit from the product Most cable and satellite TV providers offer this service Internet providers are offering similar products via the PC whereby viewers can download straight to the PC hard drive and watch video wherever they choose
Multiple tuners allow for multiple channel watching and recording simultaneously Both offer HD recording products (current market conditions)
MARKETING STRATEGY
PERCEPTIONS OF TiVo
Expensive
Its not necessarily being first to market that counts. It's being first to establish your brand in the minds of your target market that will ensure success. But be warned, awareness is not the same as establishing a brand. Julian Hearn, Brand Strategy Director, Kruder November 6, 2001
Generic
DVRs in abundance
DirecTV Other cable companies offering DVR bundled with cable box Loss of market share
Unable
to turn a profit
BEHAVIORAL MODEL
In an attempt to better understand and satisfy consumers needs and wants, TiVo conducted surveys which provided primary information. Responses enable TiVo to analyze internal and external influences, which impact customers self concept and lifestyle. The consumers way of life result in needs and wants, which begins the decision making process. Acquisition of and experience with the personal video recorder (PVR) impacts persons lifestyle and ultimately further purchases and product loyalty. Information was gathered using a biannual consumer survey, attitude survey and logs provided through consumer usage of the PVR.
Attitude Survey:
Viewing Habits, Life with TiVo, TiVo vs. Technological Gadgets, Fun Facts
BEHAVIORAL MODEL
External
(sociological)
Internal
(psychological)
culture
social class
needs motives
learning
reference groups
family
marketing mix
b e h a v i o r
S a t i s f a c t i o n
U s a b i l i t y
BEHAVIORAL MODEL
External (Sociology)
Demographics
78% of subscribers were 25 54 age group which comprise 60% of population Families with young children are well represented 71% of subscribers are home owners; professionals with upper management occupations
Internal (Psychology)
Viewing Habits
Fun Facts
Behavior
Usability
89% perceived TiVos easy to use 95.1% found the Trick Play (pause, rewind, fast forward) Satisfaction 90% of customers were satisfied with TiVo and 96.4% would recommend
OPTIONS
Product Strategies
Sell technology Develop unit that contains TiVo software and cable/satellite box in one Develop more features that appeal to public Develop a lower-end/more generic unit that is more affordable to company and public Develop software that more accurately tracks and analyzes subscriber data (demographics, programs watched, commercials watched/skipped, etc.) and sell to marketing companies Protect valuable patents
Distribution Strategies
Sell standalone units at more electronic and super stores License software with all cable/satellite television services
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MORE OPTIONS
Promotion Strategies
Reevaluate advertising dollars and reallocate dollars to television ads during most watched shows, major sporting events and sweeps months Cut advertising budget Offer coupons/rebates on standalone unit purchase Offer free product trial on lower-end units Offer incentives to subscribers who influence enrollment of friends/family Offer free set up and training to subscribers
Pricing Strategies
Immediately cut price on standalone units Eliminate initial purchase of standalone unit and increase monthly subscription price for unit rental
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RECOMMENDATIONS
Develop a lower-end/more generic unit Immediately cut price on standalone units Offer rental contract on standalone units License software to cable/satellite television providers Begin aggressive promotion programs
Life is better with TiVo. TiVo more important than everything but my children
Ranks more important than VCR, MP3 player, video camcorder, digital camera, DVD player, PDA
Bolsters international presence with launch of TiVo service at retail in Canada Develop a software solution that will bring the TiVo experience to users receiving their television signals through a computer Broaden relationship with NCTA
Solidifying relationships with the cable industry, ensuring easier installation of Cable CARD products and underscoring the cable industry's recognition of TiVo's importance to their subscribers Comcast, Wind stream Communications, Jaman.com, Music Choice Network
Stop//Watch(TM) Rating Service to NBC & CBS Power//Watch(TM) Consumer Panel to Starcom & Carat
SUBSCRIBER NUMBERS
4,500 4,000 3,500 3,000
2,500
2,000
1,500 1,000
500 0
Oct 31,2007
July 31,2007
April 30,2007
Jan 31,2007
Oct 31,2006
July 31,2006
April 30,2006
Jan 31,2006
Q&A