TIVO
Background
As a cutting edge new product, Tivo was introduced by Jim Barton and Michael Ramsay which were the founders of the product. The primary purpose of Tivo was to make the time of customers’ favorite shows more personalized and flexible.
In the current market, launching Tivo did not capture many customers as expected. In the 14 months after launching, it only signed up 42,000 subscribers, with a current rate of 14,000 new subscribers per quarter. With 102 million TV-watching households in the US, the penetration was only around 0.04%. Although 72% of the owners had great commence about Tivo, it did not help generate more sales. The marketing team argued that lack of awareness was a key cause of this result.
Problem definition
There was no doubt that Tivo offered a new way to watch TV by its advanced tech. however, the ads (e.g. Network Executive ad)and salesman did not explain well complex functions to the customers, which occurred people thought Tivo was a product that could skip the commercials by recording the shows.
Tivo came up with a lot of amazing features and advantages which contributed to the factors that facilitate its adoption . one of the most important point was it could record the TV shows that owners wanted. In this manner, customers would not only manage the time to watch it, but also would avoid conflicts with other favorite shows. this function offered unique TV-watching experience to TV enthusiasts.
As a new product, it also had some factors that make its adoption difficult. the most serious factor was the discrepancy between the information that customers received though various medias and the entirely designed functions that Tivo had. As mentioned by the company, neither TV ads nor printed ads c...
... middle of paper ...
...ncreased a lot.
Cons: lowering the price would hurt early adaptors who paid $999 for the product, and damaged the reputation of the company indirectly in the long run.
Recommendations
The company should have a clear mind that Tivo was not for all the TV users, it could not change all the customers’ habit in such a way. Tivo was only suitable for people who did not care about ads and the people had busy daily schedules.
Meanwhile, both Advertisers and Networks wanted TIVO to prevent the cannibalization of advertisements in the use of TIVO services. So go niche market would decrease their concerns, because a small group of people did not watch the ads would not change the rules there.
So, the company should niche the Tivo, decrease the price but make it right for the early adopters. In addition, communication plans were necessary to increase the awareness of Tivo.
TiVo was one of the very first products that allowed people to do this. Advertisers were now worried about their industry. How were they supposed to advertise to people if the people refused to watch them and you could no longer force them to? Their solution was to put the advertisements within the products themselves. They could pay producers to put their products in their stories. Then they found out that their advertisements would be more effective when they put them in the product, even more powerful when the advertisement evolves and turns into a character themselves.
Another way that Direct TV is able to avoid using facts in their commercial is their word choice. At the end of the commercial, the narrator does not say that the viewer should “switch” to Direct TV. Instead he uses the word “upgrade”, suggesting that cable is inferior without providing and sort of fact or reason. This subtle change in wording does not leave it open to the viewer to interpret whether or not Direct TV offers better services. Rather, it attempts to play on the viewer’s subconscious, eliminating the choice of “switching” by implying that changing from cable to Direct TV is
Marketing at the Vanguard Group. In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy - a good idea.
As a market is penetrated with more competitors, it makes it easier for consumers to jump from one to the other. When it comes to cable television, service providers have made it so accessible for customers to pick and play the channels they want. As The Fashion Channel ensures the loyal customers they have earned that the channels they love will continue, it gives them a sense of importance. TFC can differentiate themselves by performing market research and development to understand females in the millennial generation and their viewing
The data compiled by the Nielsen Media Research is essential to TV programming across the United States and in Canada. It monitors television ratings and estimates audience sizes by providing the highest quality of accuracy, allowing the television marketplace to function effectively. This information provides programmers and commercial advertisers with the awareness of people’s viewing habits. Depending on air times and the popularity of certain shows, the station calculates the advertising fees that generate a majority of its revenue.
TiVo has diversified itself in the industry by promoting their system as user friendly and innovated features such as viewing digital photo's wirelessly from a P.C and even a suggestion engine that selects consumer preferences. Marketing seems to be the best competence TiVo has thus far. These unique marketing techniques have made TiVo the most well known DVR and set the standard in the market. Many consumers acknowledge DVR's as TiVo's.
TiVo's problem rests in its inability to convince consumers to change their television consumption habits. Improper targeting and positioning have led to an ineffective product, price-point and promotion strategy that has stranded TiVo in the chasm between the early market and the early majority.
In this case study we will gain a better understanding of TiVo, Inc. and how it has struggled to find success in a market they are known to be the innovator. At this point there are very few television viewers in North American that do not know what TiVo does for TV viewing. However, most consumers do not know the history or struggles this company has been through since creating the product in the late 1990’s. After reading this case study it is clear the creators of the TiVo were visionaries but it is also clear they were not business people too. Sadly, this might be the eventual demise of the company that clearly had the market in the palm of their hand. We will examine some of their flaws and how TiVo might regain some of the momentum to become a profitable organization.
By writing this paper, I hope to introduce the idea to the readers of how the invention the VHS as led to what TV is today. On May 10, 1975 Betamax (also called Beta) developed by Sony was released in Japan. This consumer-level analog videocassette recording format became the medium of choice when it came to making home movies as well as amateur films. “Beta was the first compact, inexpensive, reliable, and easy to use VCR” product in the market. With the introduction of the Betamax to the market, its existence was short-lived. Later in that same decade, the Victor Company of Japan know throughout the word as JVC introduced the Video Home System.
Maybe Tivol can’t make me what my hear desires and I’ll get less for my dollar but my wife will be able to gloat to her girlfriends that he went to Tivol’s.”
The bad points of view about T.V. come from a passage called “The Trouble with Television”. One of the bad points of view is that it shortens your attention span. The other bad point of view is that it makes you spend a lot of money. The last point of view is that, we spend too much time watching T.V. that we miss other activities. So, we see that watching television has its bad points of view.
Television has traditionally been the most popular medium for advertising however with new satellite television products like TiVo; advertising to consumers has been increasingly difficult. OpenTV Corp., a San Francisco-based technology company is one step ahead with trying to combat the affects of TiVo with interactive TV software. The software will be sold to cable companies such as Comcast and satellite companies such as EchoStar. This software will allow cable companies to conduct "telescoped advertising," which would allow them to target TV ads to individual households based on viewing and buying habits. Although “telescoped advertising” has created a buzz in advertising centers, privacy advocates has raised concerns. With Interactive TV applications companies could track viewing habits and possibly build elaborate consumer profiles. Companies would use their database systems, third party vendors, and public records to see who were past purchasers or owners of their product. The company would then contract with cable and satellite companies to send their advertisement only to those ...
The consumers of the entertainment industry have many options available i.e. DTH, cable tv or terrestrial tv. They are the choosers and this gives them a higher bargaining power. The DTH industry needs to keep on differentiating itself and offering lucrative offers and services to attract consumers towards itself.
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.
The number of channels available has grown substantially. The frequency of advertisements in between programs is more. They have increased so much that people have learnt to switch over to another channel to avoid being brainwashed by them. One potential p...