Hbs Tivo Case Analyais

Hbs Tivo Case Analyais

Length: 2172 words (6.2 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
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.
TiVo is a truly discontinuous innovation, a product that requires consumers to dramatically change their past behavior with the promise of gaining equally dramatic new benefits. TiVo's main challenge is convincing the consumer to buy an expensive product in a new product category. While the Early Market, categorized by visionaries and technology enthusiasts, is adopting the product, TiVo has had little success convincing the Early Majority segment, also referred to as pragmatists, that the risk of change is worth the reward of their groundbreaking technology. This is evidenced by TiVo's current overall market penetration level of .04% and lackluster future projections. Visionaries are not a good reference for pragmatists because of their belief in evolution rather than revolution: . There are two things that TiVo can do to convince the Early Majority to buy. First, they need to secure a market leadership position. When pragmatists do decide to adopt a new discontinuous innovation, they purchase from the market leader. As the market leader, everyone else in the market adapts their products to work with the leader's product. In addition, the market leader attracts third party companies who make aftermarket products, even if the leader is not responsive. Second, TiVo can position their product to a target market that values the product as a 100% solution to their problem – what is typically called the whole product.
Determining the right target segment requires an analysis of the customer, company and competition (fig. 2). TiVo's customer is defined by unmet needs in the market. While TV is one of the most ensconced and ritualistic elements of contemporary American life, there are still aspects of television viewing that do not fulfill customer needs. An estimated 68% of Americans complained that they felt "widowed" by their loved one during the Fall television season because their spouses were chained to their televisions during primetime from 8pm to 11pm. Additionally, parents expressed a difficult time getting their children to do homework during key television programming times. In general, this is evidence that consumers want greater control over their television consumption habits. Analysis of the TiVo Corporation reveals their core competencies, which include proprietary software, national distribution through established retail outlets such as Best Buy, Circuit City and Sears and product co-branding with trusted electronics giants Philips and Sony.

How to Cite this Page

MLA Citation:
"Hbs Tivo Case Analyais." 123HelpMe.com. 11 Nov 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Tivo Case Essay

- Tivo Inc, an assignment 1.0 Introduction The case is about the introduction of Tivo, a new service that provides the TV viewer the flexibility to watch what they want when. The product is expected to change the way people watch TV by offering them the flexibility in programming, skipping commercials, pausing live TV and recording programmes for future viewing. In addition, the service offers captures the subscriber's preferences and can automatically record programmes that are considered to be in this category....   [tags: Business Case Study]

Free Essays
1711 words (4.9 pages)

HBS Case Simla Dairy Essay

- Incomplete KEY MANAGEMENT ISSUES Shimla Dairy is not among the current leading players in the market. The market leader's (Britannia) production capacity per day is almost 50 times that of Simla Dairy. With nearly 29 varieties of products, Shimla is now trying to increase the product line further. The company currently has 2 plants one at Shimla and the other at Kiarighat with a total capacity of 10000 litres of milk processing. With the Cheese industry slanting towards the growth phase, there is expected to be high increase in the competition, both from the domestic and the foreign players....   [tags: Business Case Study]

Free Essays
1320 words (3.8 pages)

TIVO Business Analysis Essay

- TIVO Business Analysis TiVo COMPANY BACKGROUND TiVo is a small black box which contains a digital video recorder that allows viewers to watch what they want, when they want to watch it, it allows Pause and instant replay of live TV by storing information on a hard drive. The TiVo Service represents what has been called the “Personal Television Industry” – Total control over the way you watch television. The company established manufacturing partnerships with well established firms like Philips and Sony, and also made some agreements concerning distribution through retail chains such as Best Buy, Circuit City and Sears....   [tags: Business Analysis Management Strategy]

Free Essays
1355 words (3.9 pages)

Tivo Branding and Advertising Case Study Essay

- Case Title: Tivo: Global Branding and Advertising Background 1. Tivo Founded in 1997 by Jim Barton and Michael Ramsay who left Silicon graphics with a vision to make a home network that would integrate all household communications, but settled on focusing on the television. 2. They created a device that was a digital video recorder with capability to allow users to pause live shows or rewind/forward recorded shows. In addition it allowed the users to skip commercials, allowed 3. First Tivo was shipped in March 1999....   [tags: Business Marketing]

Free Essays
1124 words (3.2 pages)

Tivo Case Study Essay

- Introduction TiVo was incorporated in 1997 they intended to create an interactive television system that developed the idea of recording digital video on a hard disk. TiVo allowed consumers to watch their T.V shows when they wanted to watch them by recording, playing back, and pausing live television. TiVo has now bundled its services with many companies, but at one point Direct T.V accounted for 70% of TiVo's costumers. Effective marketing and innovation have made TiVo the best known DVR in the industry....   [tags: Business, Case Study, solution]

Free Essays
975 words (2.8 pages)

Essay about Jury Case Study: TiVo Inc. v. EchoStar Corp.

- TiVo Inc. v. EchoStar Corp. United States District Court for the Eastern District of Texas and the United States Court of Appeals for the Federal Circuit ( 2004 - 2011) Parties : 1-The Plaintiff : TIVO , INC 2- The Defendant : EchoStar Communications Corporation and it’s consortium(Echostar DBS Corporation, Echostar Technologies Corporation, Echosphere Limited Liability Company, and EchoStar Satellite LLC ) Case Introduction Brief : This case is about tivo company (a developer and provider of software and technology that enables the search, navigation, and access of content across sources, including linear television, on-demand television, and broadband video) which has invented a...   [tags: Plaintiff, Defendant, Patent]

Research Papers
869 words (2.5 pages)

Essay about Tax Exemtion Case Analysis

- Article Analysis: Hospitals use tax exemption as a way for facing financial burdens. This allows hospitals to continue their operations by providing high quality care and providing free or discounted care to poor individuals. The implications for denying tax exemption can be financially detrimental to many non-for-profit hospitals and subsequently for many uninsured individuals who need access to care. Although I truly believe that there should be very strict regulations to rule tax exemptions for hospitals and healthcare organizations and I totally agree with the Supreme Court ruling in this case, I feel that this case is very controversial and leads to many fundamental arguments in regards...   [tags: Case Review ]

Research Papers
890 words (2.5 pages)

Essay on TiVo

- Q1. Because TiVo and ReplayTV are shifting the power over viewing behavior from the broadcaster to the viewer, should broadcasters develop their own TiVo-like systems. Ans. Broadcasters don’t have to develop their own TiVo-like systems, however, TiVo and other similar systems should support broadcasters by giving them some power or help. This could happen by, for example, helping broadcasters to show different ads to different viewers, according to their interests. Q2. Should broadcasters try to block the sales of such devices legally on the grounds they contribute to copyright infringement....   [tags: essays research papers]

Free Essays
473 words (1.4 pages)

Mcdonalds Case Analysis Essay

- CASE ANALYSIS McDonald’s, Inc. COMPANY NAME: McDonald’s, Inc. INDUSTRY: Food Service COMPANY WEBSITE: www.mcdonalds.com COMPANY BACKGROUND: As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average....   [tags: Case Study SWOT Analysis McDonalds]

Free Essays
1425 words (4.1 pages)

McDonald's Case Analysis Essay

- McDonald's Case Analysis I.     Objectives McDonald's mission was to provide customers with quality food at a low price with a focus on the speed, service and cleanliness they received while patroning one of their restaurants. The case focuses on a specific segment of the McDonalds restaurant chain that was opened in 1996, McDonald?s India. This segment of the restaurant giant had a more specific mission/philosophy to fulfill and had developed a special menu for these Indian customers to take into account their culture and religion....   [tags: Mcdonalds business Case Analysis Essays]

Research Papers
1183 words (3.4 pages)

Finally, we need to examine the weaknesses of the competitive set. While it would be possible to establish several competitive frames (i.e. VCR, DVD) we feel that TiVo is a discontinuous technological innovation that does not have a frame of reference in any established products and therefore competes primarily with Replay TV and Ultimate TV. Replay TV is positioned as a digital VCR and has similar features as TiVo without a monthly service contract. They are primarily focused on their "Pause" and "Quickskip" features and their primary weakness is a comparative lack of features. TiVo data has shown that the pause feature is valued less over time because TiVo viewers began watching significantly less live TV and more recorded TV (70% of owners were watching recorded materials every day). Ultimate TV, on the other hand, is technically superior to TiVo because it gives the user the ability to record two shows at once, and has email, internet and interactive TV bundled with the PVR. The main weakness of Ultimate TV is one of timing: they cannot go to market with their superior product for one more year and possibly higher priced software.
Our segmentation targeting strategy is built on this analysis of the customer, company and competition. There are several key variables that allow us to segment the larger Early Majority market of pragmatists. We believe that the demographic parameters of income and family as well as the psychographic elements of social behavior, lifestyle and media consumption will enable us to reach customers that have the unmet needs described in our customer analysis (fig. 1). Within these parameters, we propose two target markets. First, we intend to target socially active, busy, double-income families with children that consume television with an index of at least 110. These families should respond positively to TiVo's ability to satisfy their unmet TV consumption need to gain control over when they watch programming. Because they are busy, TiVo will enable them to watch programming at their leisure and structure precious time at home around their needs instead of the primetime schedule. This will be particularly useful in managing children's programming time. For instance, with TiVo, children can be rewarded for doing their homework rather than procrastinating by watching television that is only available during primetime hours. TiVo has also identified children's programming as the top recorded category of current owners, a fact that demonstrates the target's interest in the product. Second, we intend to target professionals under 45 who earn over $100K per year, have an active social life, travel regularly and index over 115 for lifestyle products like Blackberries and Palm Pilots. The income level and purchase behavior of this target supports trying new products that will make their lives easier. With busy social lives and successful careers, they can rest assured that their favorite programs are being recorded whether they are at the office, in the gym or taking a vacation. In addition to these targets, we considered targeting average income, in-market VCR shoppers, but assessed that their customer need would include playing VCR tapes, something that our product cannot do.
We believe that TiVo should be positioned as a lifestyle product that can augment a consumer's quality of life. Effectively communicating this to the target will require adjustments to TiVo's current product, price, promotion and placement strategy. First, TiVo will have to quality check its software and manufacturing to make sure that the onscreen program guide, navigation and image freezing "glitches" identified by the WSJ writer are fixed. It is essential that they have a 100% product for the target markets. Not every feature has to be perfect, in fact we recommend limiting the amount of advanced features such as the recording quality level and support the company's idea to produce only the larger sized hard-drive to limit buyer confusion. However, the onscreen program guide, smooth video playback and logical navigation are essential for meeting the target market's needs.
Second, we believe that TiVo should lower their price-point from $999 to $399 as proposed in the case. Most of the recent lifestyle products (e.g. Blackberry) are adopted by pragmatists at this price range and this price-point is significantly lower than Replay TV ($200 above TiVo's original price) but it is not known what price Microsoft will launch with next year. This year represents a unique time in the market before Microsoft enters with Ultimate TV. While TiVo's current strategy can be seen as skimming (lower sales with higher profit margins) the new price will focus on penetration to gain market share. It is very important that TiVo capture an established leadership position in the market because pragmatists prefer to buy from the market leader.
We think that TiVo should pursue a promotion strategy focused on getting TiVo into people's homes. TiVo's current strategy relies on humorous television and print advertising for awareness and on retail sales reps to close the sale. The problem with this strategy is that people continue to have a low awareness about TiVo and are generally confused about what TiVo actually does. This confusion isn't helped much by the sales reps at their distribution outlets like Best Buy who are not knowledgeable or passionate enough about the product to provide an effective demonstration and address customer queries. There is no better way to do this than to make every store and sales rep a TiVo client. We think that TiVo should make sure that every store has a functioning TiVo set up with the TiVo subscription service and that every sales rep has access to a free TiVo with subscription service. This would be a great use of the extra 14-hour TiVo boxes that the company has proposed giving away as they standardize with the 30-hour model. We believe, however, that TiVo needs to rely less on sales reps at their distribution outlets to communicate the value of the product. Instead of relying on sales reps to close the deal, TiVo should educate the target market utilizing a variety of media channels. The message that TiVo should convey is specific to the positioning for each target. The family message should position TiVo as a device that lets them take control of when they watch programs. For single professionals, the message should position TiVo as a device that gives them piece of mind that they will never miss a favorite program. The strategy is to get TiVo into the homes of the target markets.
To support this strategy, TiVo should launch a promotion that lets people who receive a certificate take a TiVo home free for a month. If they like it, they will be billed $399 for the DVR and $9.99 per month. We considered a lower fee, but believe that the target market can and will pay $399 for TiVo, along with the monthly fee, once they experience the product. This decision maximizes profits in both the short-term (products sold to the target market) and in the long term when the larger market is prepared for the price-point. Advertising materials should lead with this offer and then contain straightforward, descriptive information about the TiVo service along with quotes from current users to communicate TiVo's benefits. Materials should contain quotes from current consumers. We believe that TiVo should utilize targeted direct mail, online advertising and magazine articles to reach the target audience. Each would provide the user with a coupon to take home a TiVo for one month from TiVo's distribution partners. While we considered including television advertising, at $50MM over the next year, it is an expensive medium that does not target our market as effectively as direct response advertising vehicles like print and direct mail. Instead of television advertising, we recommend a 30-minute infomercial that could be used on target channels as well as in-store.
We also believe that referral marketing would be an effective way to connect with the target market. When buying consumer electronic equipment, research showed that 71% of consumers were influenced by friends or relatives. To capitalize on this influence, we would like to provide new TiVo customers in the target markets with a direct mail offer containing coupons for their friends to receive a free TiVo for 30 days. In exchange for each new customer they bring in, members of the target market would receive one free month of TiVo service.
Finally, we recommend expanding the place strategy. TiVo has achieved considerable advantage by securing large national retailers to carry the product and we believe that TiVo should enhance this further by working with Cable and Satellite providers. These providers hold a key beachfront inside consumers houses because the majority of consumers have little black cable boxes above their TV's and already see the value that cable provides. An upgrade option on a cable box is a less technologically discontinuous proposition for consumers.
If TiVo is going to succeed, it needs to bridge the gap between their product, advertisers and networks by convincing them that TiVo is a friend. We recommend walking away from the "program your own network" creative because it alienates networks. Rather than alienate networks and advertisers, we want them to understand that TiVo has fantastic benefits for both. For networks, TiVo can provide increased product sampling by hosting Fall Launch programming on demand, expanding primetime and providing viewer feedback. For advertisers, TiVo can provide more predictability of audience size and characteristics, and direct response offers when consumers press the "thumbs up" button during an ad. With relevant advertising and quality programming, we believe that TiVo has the power to help evolve television towards a more customer-focused medium with a significantly improved value proposition.
Figure 1 - Analysis of consumer needs

Figure 2 – 3C's and STP
CustomerUnmet Needs § Control over when they watch a program§ Don't want to feel "widowed" during Fall Launch§ Manage kids time§ Sample new programs
CompetitorVulnerabilities § Replay TVo $200 more than TiVoo Positioned as a digital VCR§ Ultimate TVo Technologically superior, but won't launch for one yearo Expected to match current TiVo price
CompanyCompetency § Proprietary software§ Distribution, Service and Production§ Co-branding with Philips and Sony

Segmentation § Psychographico Social, Lifestyle, Media Consumption§ Demographico Income, Family
Targeting § Busy Familieso Socially active, busy, double-income families with children that consume television with an index of at least 110.§ Single Professionalso Under 45 who earn over $100K per year, have an active social life, travel regularly and index over 115 for lifestyle products like Blackberries and Palm Pilots.
Positioning § For busy families, TiVo is the DVR that lets them take control of when they watch television.§ For single professionals, TiVo is the DVR that gives them piece of mind that they will never miss a favorite show.
Return to 123HelpMe.com