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TiVo Marketing Strategy Analysis

This document discusses TiVo's positioning in the market and options for sustaining recently lowered prices. It analyzes TiVo from the consumer perspective, noting it helps bypass problems with traditional TV. TiVo is currently in the introduction stage of its product life cycle. Lower prices of $199 and $299 could be sustained by collaborating with advertisers to include ads in recordings and selling audience data to broadcasters and advertisers. The document evaluates these options and proposes an implementation plan to maintain differentiating recording capabilities, include targeted ads that can't be skipped, and develop the ability to record and sell customer data insights to advertisers.

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Ayush Acharya
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79 views1 page

TiVo Marketing Strategy Analysis

This document discusses TiVo's positioning in the market and options for sustaining recently lowered prices. It analyzes TiVo from the consumer perspective, noting it helps bypass problems with traditional TV. TiVo is currently in the introduction stage of its product life cycle. Lower prices of $199 and $299 could be sustained by collaborating with advertisers to include ads in recordings and selling audience data to broadcasters and advertisers. The document evaluates these options and proposes an implementation plan to maintain differentiating recording capabilities, include targeted ads that can't be skipped, and develop the ability to record and sell customer data insights to advertisers.

Uploaded by

Ayush Acharya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Marketing Management -III TiVo Pre-Session Submission (Session 4)

1) Analyse the situation from the consumer’s standpoint. What is TiVo? Where is it in the
product life cycle?
When I look at TiVo as a customer, I see it as a “TV aid.” It helps me to bypass some of the most
fundamental problems associated with consuming content on TV. These include a pause feature
(allowing me to cater for interruptions), pausing live TV, watching content broadcasted at
inconvenient times, etc.
TiVo is in Stage #1, i.e., the “Market Development” or “Introduction” stage in the Product Life Cycle.

2) What factors facilitated its adoption? What factors make adoption difficult? Who is TiVo best
suited for? How should TiVo be positioned?
At this early stage in the market, TiVo relied on its “Wow!” factor, i.e., its “pause live TV” feature, to
ramp up sales among “early adopters.” However, as discovered in the latest data, an essential factor
in adopting TiVo was allowing consumers to watch content broadcast at inconvenient times. This
was particularly true for TV dramas and children’s shows. Also another facilitating factor was its
ability to fast-forward TV commercials.
Factors inhibiting its adoption include data-privacy concerns, the product’s somewhat non-uniform
marketing by individual salespersons (no standardization due to lack of control), the relatively high
price tag, and lack of awareness of the product among consumers.
TiVo is best suited for the consumer who is an avid watcher of TV and has a loyalty or wants to be
loyal to specific TV shows/programs. This may include working professionals who may not be near
a TV when their favorite shows are broadcast, a mother who may want to store a particular program
for her children, etc.
It should be positioned as a TV aid to establish a reputation among consumers. There is no
comparable product currently for consumers to compare this product to.

3) Assume that the prices are lowered to $199 and $299. What are the options available to TiVo?
The difference between the two price-pointed products can still be that the ability to record and
access TiVo’s system of personalized suggestions and automated recording of favorite shows is only
available for $299.
To sustain these lower prices, TiVo can collaborate with advertisers, adding advertisements to their
recordings. It can also sell broadcasters and advertisers crucial audience data (overall and
behavioral, i.e., viewing pattern).

4) Evaluate the available options and suggest an implementation plan.


1. Differentiating with recording capability and access to TiVo’s personalized suggestions
and automatic recording: - This already has been implemented, so we maintain the status
quo here.
2. Advertising in our recording: - We can begin implementing this by approaching large
advertising agencies and major advertisers, educating them about how they can benefit by
collaborating with us. We can then insert targeted advertising (suited to our customer base)
within our recordings (preferably commercials smaller than the standard 30-second ones)
such that these cannot be bypassed or skipped over.
3. Selling Customer Data: - We must first develop the capability to record customer data Just-
In-Time (i.e., live recording). The data must be treated and structured to allow advertisers
and product promoters to draw insights.
We can then sell the data to them or establish a long-term data-sharing collaboration.

Submitted By: - PGP1 Section E, Study Group 13 (Term III)


Aishani Chowdhury Ayush Acharya Sameer Sarpal
Doppala Harinath Manish D’Silva Ujjwala Singh

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