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Tivo Final

This document discusses TiVo's strategy challenges. It notes that while customer satisfaction is high, TiVo's subscriber and revenue growth has been slower than expected. TiVo is losing money as marketing costs exceed revenues. The typical TiVo customer tends to be married, higher income, and middle-aged. Lower income households and younger/older consumers represent a small percentage of subscribers. The document recommends that TiVo lower prices temporarily, offer one month free trials to increase awareness, and partner with cable companies to promote bundled packages to attract more customers.

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Dileep Bajaj
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© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
36 views

Tivo Final

This document discusses TiVo's strategy challenges. It notes that while customer satisfaction is high, TiVo's subscriber and revenue growth has been slower than expected. TiVo is losing money as marketing costs exceed revenues. The typical TiVo customer tends to be married, higher income, and middle-aged. Lower income households and younger/older consumers represent a small percentage of subscribers. The document recommends that TiVo lower prices temporarily, offer one month free trials to increase awareness, and partner with cable companies to promote bundled packages to attract more customers.

Uploaded by

Dileep Bajaj
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Group members

Dhruv Goel 10-DM-043 Dileep Bajaj 10-DM-045 Dipayan Som 10-DM-046 Disha Devnani 10-DM-047 Mithil Jain 10-DM-086 Niraj Mishra 10-DM-096

Slower start in number of subscribers than originally forecasted


High marketing and sales costs have shown little significance in increasing

TiVo is losing money, total cost spent on Sales and Marketing greatly exceeds

total revenues revenues

Profile of subscribers remains narrow

Married couples, high income families, and the middle aged consumer make

up high percentage of TiVo subscribers Singles, low and middle income households, the young and the elderly consumer remain a small percentage of TiVo subscribers

Disparity between customer satisfaction and growth

Post purchase attitude reflects high level of customer satisfaction Volume of sales still lagging

Perceived Risk

Emotional response is more than technology: A gap between

Middle and low income households small % of purchasers Awareness and intention to buy are rising, action is not following Customers seek reinforcement from friends prior to purchase

what consumers understand and what they act upon.

Customer Satisfaction 90.1% of customers satisfied with TiVo 96.4% would recommend TiVo 77.4% say life is better Purchase Behavior 70.1% of new subscribers knew somebody else who had previously purchased a TiVo 57.5% of new subscribers were most influenced by friends Shows a strong relationship to social references Purchase demographics As of Nov. 2000 households with income below 51k made up only 22% of purchases Households with income greater than 100k made up 38% of purchases Ages 18-24 and 54 and up made up only 13% of purchases Single women only 7% of purchases

Increase dominance in the PVR industry


Close the gap between intention to buy and action Brodie Keast notes that product awareness, understanding,

and intention to buy are increasing GET PEOPLE TO PURCHASE A HIGH QUALITY, HIGH SATISFACTION PRODUCT!

Penetrate a broader consumer market Increase sales to singles, low and middle income

households, and the young and elderly Maintain strong relationships with current subscribers

Decrease perceived risk Produce a quality product and focus on customer satisfaction

Price Options Reduce prices


Overall price reductions

Promotional Options Free trials


Get product into house; likely to

keep

Financing
Target low income

Refer a friend awards


Use consumer reports to

households

advantage

Rebates Off season sales

Money back guarantees


Lower perceived risk

Forge Partnerships with

cable providers and promote packages

Awareness Product Understanding Intention to buy

Bridge the Gap

BUY!

Short term
Reduce prices Limited time offer, 10%-15% reduction for one quarter Observe response in demand and increase in sales Offer one month free trials Give consumers experience Get TiVo into more households Eliminate perceived risk Develop consistent marketing and sales approach Advertise and promote the TiVo experience

Long term
Create partnerships with cable companies Promote package deals Make it easy for consumers to say yes Target universal market Maintain strong relationships with subscribers

Bridging the gap requires provision of the TiVo experience


The TiVo experience cannot occur at a retail demo
One month trial provides true TiVo experience for consumer Use high level of customer satisfaction to advantage

Price cuts will: Increase sales volume and penetrate broader consumer market Increase market share Increase cash flow Position TiVo to build and continue relationship with subscribers Observe demand at lower prices Short term loss in profits will lead to greater growth and opportunity to maintain subscribers Future of the industry Use cable companies as a distributor Consumers are looking to combine TV, internet, and phone lines

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