MARKETING PLANNING

ANALYSIS OF CASE STUDY ON

TIVO
TM

AGENDA
1. What is TiVo ?
2. Industry Analysis : Porters 5 Forces Model
3. SWOT Analysis
4. Marketing Strategy
5. Segmentation
6. Target
7. Positioning
8. Budgeting Strategy
9. Pricing Strategy
10.Integrated Marketing Communication The Advertising Mix
11.Integrated Marketing Communication- The FCB Grid
12.Brand Value Pyramid Analysis of TiVo as a Brand
13.Gaps in Service Quality
14.Recommendations

WHAT IS TIVO?
About TiVo
Features
Program Your Network
Pause/Rewind Live TV
Fast Forward/Skip Commercials
Record 30hrs of TV
Understand user viewing preference
Season Pass
Electronic Program Guide

PORTERS 5 FORCES MODEL

SWOT ANALYSIS
Strengths
Unique product features
Unique capabilities to measure
audience viewing of programs and
commercials

Weakness
Expensive, priced initially at
$999
Low Product and brand
awareness

First- mover advantage

Partnership with Star Brands like
Sony and Philips

Complex product- difficult to

understand initially

SWOT ANALYSIS
Opportunities

Threats

Low barriers of entry

New product category and

new market

Competition from

High growth potential

ReplayTV and Microsofts

UltimateTV

Partnering with

Buying power of satellite

advertisers and
Broadcasters

and cable companies

MARKETING
STRATEGY

Tivo had introduced a new product category , so they had no product

category membership. Consumers were confused whether it was a PVR,
DVR, PDR,IVR or on demand TV.

To attain competitive advantage TiVO differentiated its product by

including many innovative features like fast-forwarding through
commercials, real time slow motion , pause functions etc.

SUGGESTION: : TIVO should direct its efforts towards establishing

themselves
as belonging to single product category

SEGMENTATION

TARGET SEGMENT

POSITIONING

Product
Positioning

Brand
Positioning

BUDGETING STRATEGY
TiVo was in : Growth Stage

TiVos Target : Early

Adopters

TiVos Budgeting Strategy

6%-8%

PRICING STRATEGY

Jun-99

Sep99

Revenue

33

% change
Subscriber

312.5
1
2.5

451.5
18

132.9
32

69.5
48

40
62.4

15
76

% change
Revenue/Subscr
iber

150

620

77.8

50

30

21.7

13.2

10.1

13.25

14.9

16.1

15.2

65

-23.4

31.04

13.1

7.6

-5.6

% change

Dec-99 Mar-00 Jun-00 Sep-00 Dec-00

1157.5
182
424
719 1006.6
9

PRICING STRATEGY

Perfect example of
a market skimming
strategy
Later a Market
Penetration
strategy was
employed to
increase market
share

Above the
Line
Promotion

ADVERTISING STRATEGY

FCB GRID
High Involvement

Rational

Emotional

Low Involvement

BRAND VALUE PYRAMID

Brand
Salience

What did TiVo do ?

Problems

Co-branding with Philips andJudgemen

Sony
ts

FeelingsNegligible Contribution

Targeted Early Adopters to create a viral effect Were ineffective as advertiser

Retail execution Demonstrations

Performan
ce

Variations in explaining the

Imagery
product thus creating a
confused image

LOW BRAND AWARENESS

BRAND VALUE PYRAMID

Brand Performance

Brand Imagery

Features of TiVo

Pause Feature
Incredible Speed of fast
forwarding

Logo A Cute Brand

Thumbs up & Thumbs

Down feature to reveal
the preference s of the
service

Highly sophisticated but

Names, Ads Fun

Friendly
difficult to understand

Season Pass
High
Performance

Friendly but
Complex

BRAND VALUE PYRAMID

Feelings

Judgements

A review in WSJ , which

highlighted the technical
glitches that Tivo had
initially and described the
interface as confusing

The unclear product

category of TiVo
PVR/DVR/PDR/IVR/ondemand TV ...??

Confusing

Control in the hands of

users
The wow! Factor

associated with the Pause

feature
The thumbs up & thumbs

down feature allowed

users to express
themselves
Empowered
Users ,
Gave freedom to
Express

BRAND VALUE PYRAMID

Brand Resonance

Co-branding with Philips and Sony

product loyalty
TiVo required extensive
explanations and often
demonstrations
Gave freedom to express

MODERATE
LEVEL OF
RESONANCE

ANALYSIS OF TIVO AS A BRAND

Empowe
Negativer Users,
reviews Freedom
to
express

High
Performa
nce

Weak
Resonance

Friendly
Cute,Fun
Too
Sophisticated

GAPS IN SERVICE QUALITY

72% satisfied, online
forums

Word
Word -of-mouth
-of-mouth
communications
communications

Home audio system, couch potato,

Prime time

Personal
Personal needs
needs

Black and white , color,

Remote control, cable and satellite TV

Past
Past experience
experience

Customer

Expected
Expected service
service
GAP 5
Early adopters7 points of
exposure
Changing
TV watching
behaviour
on a mass
scale

GAP 1

Provider

Wow! Pause factor

Perceived
Perceived service
service

Service
Service delivery
delivery (including
(including
preand
post-contacts)
pre- and post-contacts)
GAP 3
Translation
Translation of
of perceptions
perceptions into
into
service
service quality
quality specifications
specifications
Management
Management perceptions
perceptions of
of
consumer
expectations
consumer expectations

GAP 4

External
External communications
communications
to
consumers
to consumers

Confusion in press communication, point of

purchase
demonstration
GAP 2 High price

RECOMMENDATIONS
Clear establishment of a Category- Digital Video Recorder

(DVR)
Salesmen: Give them a Tivo
Difficulty of describing the box: Dont describe whats in

the box, describe the magic around it

Future positioning: The features of an IPTV, with the price

of a satellite network
Communication: No network executive ad
Give a name to the service as well

Advertisers

Networks

ADVERTISERS
More personalized,

targeted ads
Accurate data on

viewership
Exact popularity of shows

NETWORKS
Get scheduling

preferences
Adjust promotions in real-

time
Feedback on shows-

Exact target audience

Thumbs up button

captured by the ad

Showcase: Effective

podium of promotion

THANK YOU
Group Members :
Abhinandan Pal (A034)
Achint Jain (A021)
Nikita Sharma (A059)
Snigdha Kondati (A026)
Varun Bhalla (A009)
Navneet Lahoti (A029)
Raunak Kedia (A025)
Shreya Muchhal (A061)