Tivo Case Summary
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
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