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    TiVo Case

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    Khushi kapoor
    TiVo introduced a Digital Video Recorder called TiVo in 1999 that allowed customers more control over what and when they watched TV. While early adoption was strong with subscribers growing 14,000 per quarter, penetration remained low at 0.4% after 14 months. TiVo struggled with high prices, a confusing interface, ineffective marketing that relied only on websites and PR, and upsetting advertisers by showing customers were skipping 90% of ads. To improve, TiVo needed to lower prices to compete, expand partnerships, improve marketing through demonstrations and print media, and focus more on the domestic market.

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    TiVo Case

    Uploaded by

    Khushi kapoor
    120 views9 pages
    TiVo introduced a Digital Video Recorder called TiVo in 1999 that allowed customers more control over what and when they watched TV. While early adoption was strong with subscribers growing 14,000 per quarter, penetration remained low at 0.4% after 14 months. TiVo struggled with high prices, a confusing interface, ineffective marketing that relied only on websites and PR, and upsetting advertisers by showing customers were skipping 90% of ads. To improve, TiVo needed to lower prices to compete, expand partnerships, improve marketing through demonstrations and print media, and focus more on the domestic market.

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    TiVo introduced a Digital Video Recorder called TiVo in 1999 that allowed customers more control over what and when they watched TV. While early adoption was strong with subscribers growing 14,000 per quarter, penetration remained low at 0.4% after 14 months. TiVo struggled with high prices, a confusing interface, ineffective marketing that relied only on websites and PR, and upsetting advertisers by showing customers were skipping 90% of ads. To improve, TiVo needed to lower prices to compete, expand partnerships, improve marketing through demonstrations and print media, and focus more on the domestic market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    120 views9 pages

    TiVo Case

    Uploaded by

    Khushi kapoor
    TiVo introduced a Digital Video Recorder called TiVo in 1999 that allowed customers more control over what and when they watched TV. While early adoption was strong with subscribers growing 14,000 per quarter, penetration remained low at 0.4% after 14 months. TiVo struggled with high prices, a confusing interface, ineffective marketing that relied only on websites and PR, and upsetting advertisers by showing customers were skipping 90% of ads. To improve, TiVo needed to lower prices to compete, expand partnerships, improve marketing through demonstrations and print media, and focus more on the domestic market.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    CASE PRESENTATION- TiVo

    Group Members: Aarushi Jain


    Atulya Rastogi
    Khushi Kapoor
    Ritika Sharma
    Sahiba Sachdeva
    OVERVIEW

    • TiVo Inc. introduced a Digital Video Recorder in 1999 known as TiVo that provided a variety of facilities.

    • Features like fast forwarding, recording and providing feedback was enabled in TiVo.

    • Major shift of power was in the hands of the customers who were able to decide what to watch and when to watch.

    • The company partnered with Sony and Philips for the distribution of the setup box.

    •  The company had the biggest advantage of being early adaptors and had market penetration of 0.4% with an

    increase of 14000 subscribers every quarter.


    PROBLEM STATEMENT

    “Low profitability generated by incapacity to increase revenues through


    Growth”
    WHERE THEY WENT WRONG
    Even after 14 months from launch they had only 0.04% market penetration, reasons could be -:

    ● Lack of awareness about the product and brand both, even after collaborating with Sony and Phillips.

    ● Promotional activities restricted to PR and website promotions and they did very limited mass media campaigning.

    ● They followed theory of Early Adopters, as they did not want to waste money on unlikely prospects.

    ● Ultimate marketing challenge was to change the 50-year-old consumer consumptions habit of watching TV.

    ● Prices were very high for TiVo box, $999 for best quality box and apart from this they also charge additional
    monthly fees.

    ● TiVo’s data showed, customers were skipping 90% of ads, this was upsetting advertisers and networks.
    SWOT ANALYSIS
    Strengths Weaknesses Opportunities Threats

    1.Data about individual viewing 1. People find TiVo confusing, 1. First mover’s advantage 1. Resistance towards change
    patterns and the interface hard to use 2. One step ahead of DVRs as due to cheaper alternatives
    2. Partnership for distribution and understand. they provide the ability to 2. Imitation by big players like
    with Sony and Phillips 2. The high turnover rate of pause, rewind and fast-forward Microsoft and Replay TV and
    3. The company has a dedicated salesmen also is not helpful for 3. Allows advertisers to receive making their own
    design team that came up with TiVo feedback on their improvements
    this innovative product that 3. TiVo is also rather expensive advertisements which helps 3. Threat of new entrants and
    includes features no one has compared to somewhat similar them develop more relevant fast changing technologies
    ever seen before. products. content.
    4. The TiVo switches the balance 4. Company’s ineffective 4. Provides more specific future
    of power from the network marketing strategy estimates to networks, helping
    programmers to the viewers them market their ad slots
    themselves. more accurately
    .
    PORTER FIVE FORCE ANALYSIS
    HIGH COMPETITIVE RIVALRY

    THREAT OF NEW ENTRANTS TWO MAJOR COMPETITORS- Replay


    MEDIUM TV and Ultimate Tv
    05 Replay Tv - Priced at $200 above TiVo
    1. HIGH CAPITAL REQUIREMENTS
    2. ACCESS TO DISTRIBUTION but the price included the service
    SYSTEM 01 04 charge, which guaranteed a higher
    commission for the sales person
    BARGAINING POWER OF
    BUYERS - HIGH Microsoft Ultimate TV-Launched in fall
    2000. Technologically advanced
    02 03
    1. AMPLE OF SUBSTITUTES features. Combination of email and
    AVAILABLE internet surfing, interactive tv and
    2. COMPETITIVE ENVIRONMENT DVR.

    .
    POWER OF SUPPLIERS LOW - MEDIUM THREATS OF SUBSTITUTES-HIGH

    AVAILABILITY OF A NUMBER OF 1. COMPETITION FROM DVR,PVR


    SUPPLIERS AND SUBSTITUTES 2. CONSUMERS PREFER PRODUCTS AT LOWER
    PRICES AND NO ADDITIONAL COSTS
    TiVo FINANCIAL ANALYSIS

    Trend Analysis:
    Net Loss Analysis

    Sep-98 Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00

    100% -1268% -206% -228% -748% -68466% -898% 1098%


    SOLUTIONS and RECOMMENDATIONS

    ● TiVo is an expensive product that amounts $999. The price of the product should be reduced to ensure that it

    faces the market competition effectively.

    ● Apart from Sony and Philips TiVo should enter into partnership with other distributors as well.

    ● It is required to provide the demo of TiVo as the functioning is difficult to understand.

    ● The company should provide after- sales services.

    ● The company can take the help of print media to explain the working of the Tivo.

    ● Expenses on marketing should be increased.

    ● They should focus more on domestic markets than on international markets.

    ● The company should stop the production of DVRs.

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