TiVo- Market Segmentation & Positioning

1. TiVo- Market Segmentation & Positioning Sent by : EPBM – 13 – Pune 01 Prepared by : Priyank Sharma, Ajay Gupta, MN Saravanan Contributed By: Abhijit Shedge Ajay Gupta Harminder Sachdeva Harshad Dhake Kiran Menderkar M.N. Saravanan Priyank Kr. Sharma Swaroop Kulkarni Vinod Mahajan EPBM -13, Aundh Pune01

2. TiVo- Market Segmentation & Positioning Variables of Segment: • Age Group –different age group was interested in different type of programs • Income – low income group probably would not go for TiVo • Marital Status – a great convenience for them • Working Population – great help for them to view programs after telecast and to manage their work • US Geography –very fond of viewing TV • Easy Adopters– people who were at ease with new things were probable candidate for TiVo • Benefits envisaged – Recoding, Pause, Feedback, Internet, e-Mail, • Program Schedule –network, recorded programs • Price – some of the consumers are wary of prices and actual benefit • Usage –TiVo owners were using it most of the time EPBM -13, Aundh Pune01

3. TiVo- Market Segmentation & Positioning Porter Five Forces Analysis: Threat of New Entrants(moderate to high) - IP Buyers (Strong), Convincing, behavior Suppliers/ Channel(Strong) (Sony, Philips), Best Buy Substitutes(Network, Dish) (Strong) Competition (Replay, MS Ultimate ) (weak) EPBM -13, Aundh Pune01

4. TiVo- Market Segmentation & Positioning SWOT of TiVo: Strength: • Viewers are satisfied once they start using the TiVo. 90% of them said that they would be recommending TiVo to others. • Features of TiVo were appreciated by consumers, like Thumbs Up & Thumbs Down. • First mover advantage to provide such features. Weakness: • The lack of awareness is one of the problem. • The inclusion of many functions was seen as a deterrent at initial stage of using TiVo, but not once user gets used of these many options. • TiVo involvement was restricted to Public Relations & limited mass media campaign. • The category of the TiVo product was not clear among public. Opportunities: • A large population TV-Viewers is untapped till date. • TiVo was pushing the idea of “Empowering Customer” which has a huge potential. • TiVo also opened up opportunities for Network provider & Advertisers. • Data collected from TiVo could be used to Analysis by the broadcasters. Threat: • New entrants in the market with latest features, like MS Ultimate. EPBM -13, Aundh Pune01

5. TiVo- Market Segmentation & Positioning Suggested Segmentation: EPBM -13, Aundh Pune01

6. TiVo- Market Segmentation & Positioning Why encircled segments to target? The Young Professionals and Grown up Working Couples, which are encircled in last slide are the preferred segments to reach out because of the following factors: • The strength and purchasing power can be accessed from various channels.(measurable) • These groups are the one who will be most benefited with the features provided by TiVo, so they will be able to pay a premium once they started using the service, (Accessible) • As most of the consumer of these groups is expected to be available in developed cities, it would be easy for TiVo to reach them out. (substantial) • These groups are well educated and aware of new technologies so it will not be a difficult task for TiVo to make them understand the features and differentiating the product from others. (differential) • The communication and response is expected to be good from these groups for good services and products offered. (actionable) EPBM -13, Aundh Pune01

7. TiVo- Market Segmentation & Positioning How to make inroads in the targeted segments? Creating Value to Satisfy & Retain Customers : Values for Customer and Analysis: • Major attributes & benefits - Freedom from Network, Recording of Program and viewing later, Fast forwarding commercials if need be, providing feedback and pausing the live telecast. • Quantification of Benefits – the above mentioned benefits should be ratified by consumers. • Comparison of Rating – the rating should be compared with that of Competitors • Examining the Rating in specific Segment • Major Customer Values – periodically review economy, technology, features of it’s own and competitors • Higher Value proposition • Feedback & Complaints from Customers • Product & Service Quality cntd.. EPBM -13, Aundh Pune01

8. TiVo- Market Segmentation & Positioning cntd…. Creating Value to Satisfy & Retain Customers : • Better product & service for targeted segment • Plan customer satisfaction &retention process • Voice of Customer • Organize a database to capture customer preference, purchase pattern & satisfaction • Easy and accessible mechanism for customer to reach out to the company representatives • Incentivizing employees in order to make them more concern for customer needs EPBM -13, Aundh Pune01

9. TiVo- Market Segmentation & Positioning Positioning: Price Features Usage Satisfaction TiVo Replay MS U Cable Dish EPBM -13, Aundh Pune01

10. TiVo- Market Segmentation & Positioning Thank You EPBM -13, Aundh Pune01