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Professional Solutions
Jennifer ArrighieNicholas CeloneCharles HoseaSean Owens
Antonella PiccirilloKaren Votto
What is Tivo?
TiVo is a digital video recorder (DVR), which empowers the TV viewer with a
variety of functions, ultimately allowing them to obtain their ideal viewing at any time.
Life before TiVo was quit different as compared to nowadays with TiVo. The basic idea
behind TiVo was that it would take control away from the networks and put it directly
into the hands of the consumer. To attract more and more consumers the TiVo service
provided their viewers with various useful features. In order for the TiVo service to work
effective and efficiently all that was required was a connection to a telephone line, thus
allowing the consumer to download at any time they wanted. TiVo offers a variety of
special features one very popular one is the season pass, this allows users to specify their
favorite show, so that TiVo would automatically record the specified program. TiVo also
comes equipped with a remote control with thumbs up and thumbs down buttons, which
would indicate how much consumers enjoyed what they were watching and if the service
was effective and efficient. TiVo works to meet the needs and wants of every type of
consumer. According to an independent study, 62% of TiVo owners watched more TV
with the service than without, and 31%of the owners said that TV was their primary
source of entertainment compared to before the purchase of TiVo!
Situational Analysis
Company and Product History
TiVo founders Jim Barton and Michael Ramsay were the creators of TiVo. Jim and
Michael were employed at Silicon Graphics a leading company in software when in 1997
they came up with this innovative idea to create a home networking system. The device
that they worked to create was composed of a fast improving hard disk technology, in
which the device would provide an easy-to-use interface between the channel lineup and
what people would actually want to watch on their TV. When finally completed the
physical TiVo unit in 1999 it was a set-top box that interfaced between the broadcast feed
and the television. To ensure product effectiveness Jim and Michael created a
partnership with top of the line brands such as Sony and Philips. This would help to
distribute TiVo in many leading chain stores in which would enable easier access to the
consumer.
Product analysis and evaluation:
TiVo is a Digital Video Recorder (DVR) that comes with a service that allows its
users to watch whatever channel they choose whenever they want to. TiVo comes with a
remote control, which allows its customers to pause live TV as well as fast-forward and
rewind it, just as if they were using a VCR or DVD player. There is also a function that
allows the user to specify their favorite TV shows and TiVo will automatically record all
episodes of that particular program without having to manually do it your self each and
every time. There is also a feature that helps both TiVo as a company and the consumer,
and that is the “thumbs up, thumbs down keys” on the remote control. This feature let’s
the users indicate which shows they like and don’t like. TiVo takes that information into
consideration and will record TV shows that you have pointed out as being quality
programming. TiVo can record up to 30 hours of TV programming at one time, and also
has the ability to record two shows at once. TiVo is currently offered at two different
price levels: $250 for the 40-hour version and $350 for the mind-blowing 80-hour
version. Those are the given prices for the TiVo DVR unit itself with a 40-hour
maximum hard drive and 80-hour maximum hard drive, respectively. Those prices do
not include the monthly service charge of $12.95 per month.
Identification of principle target markets and consumer behavior:
We feel that TiVo is best suited for: People who are comfortable with new
technology, people who like owning the newest and latest gadgets (“keeping up with the
Jones” theory), people with substantial disposable income, people who are serious TV
viewers, specific category and product viewers, and finally time conscious viewers.
Specific category viewers refers to those TV viewers with a specific interest, for
example, sports fans who may want to record all major sporting events, or someone who
is interested in a certain hobby or has unique interests may want TiVo to record all
programs relating to their particular interest or hobby. Specific program viewers refers to
those TV viewers who may like to watch a particular series of shows, for example,
“Friends” on NBC or “NYPD Blue” on ABC. Time conscious viewers refers to those
busy professionals who might not have the time to watch TV and like the convenience of
being able to watch the programming of their choice at a time of their choosing.
Competitive situation and evaluation:
TiVo’s first major competitor came from ReplayTV, which was started by The
Replay Networks Company back in August 1997 by a Star Trek fan who, believe it or
not, wanted a way to record every Star Trek episode automatically, whenever they should
air. ReplayTV started national distribution as early as April 2000, after it signed a
contract with Panasonic to build and market their units. ReplayTV was very similar to
TiVo, but did have a few unique differences. One feature found on ReplayTV which you
will not see on TiVo, is a distinctive button marked “Quickskip.” “Quickskip” was able
to time shift the recorded program by exactly 30 seconds, which is usually the length of
your average commercial. The other major difference between the two, lies in the
pricing. The price of a ReplayTV unit is $200 higher than TiVo’s unit, but that is
because there is no monthly fee. The service was included in the price, without requiring
any other additional fees.
TiVo’s main competitor came in March of 2000, when Microsoft introduced a
device called UltimateTV. Right off the bat, Microsoft has the advantage of name
recognition. People will instantly assume it is a quality product just because of the
manufacturer, and this is very important when a consumer is considering purchasing
something brand new to the market. UltimateTV has all of the benefits of TiVo and
ReplayTV and even some of its own unique selling points. UltimateTV comes with
access to WebTV, which is basically the ability to use the Internet through your TV. It
also offers DirectTV and UltimateTV as a bundle package, which is never a bad idea to
introduce a new product with an already proven successful one. DirectTV is your typical
digital satellite provider, which gives you digital quality feeds (generally 225 channels)
instead of your standard cable provider with only about 100 channels. The only real
downside to this unit is that it somewhat more expensive and rather complex and can
even be complicated at times.
Marketing Goals
The first of our marketing goals is to have a catchy communication campaign. We
want to able to get the TiVo name out there and to have people remember it. To do so, we
have to pick the correct media, with a big reach. Not only will this media reach our target
audience, but it will also reach the consumers out of the target that could potentially be a
consumer of TiVo.
The next goal is to provide product bundling with a satellite TV receiver. This
will allow our potential buyers to have an option as well as potential satellite television
buyers. This will allow TiVo to appeal to those consumers who have been contemplating
a purchase of satellite television. Satellite television provides numerous channels to its
subscribers and someone’s favorite shows may be on at simultaneous times. TiVo will be
an added benefit because of the ability to record shows while you are watching another
program. Buying in a bundle will essentially provide a lower cost to the consumer as
well. Buying two products at one low price, rather than two separate products at a high
cost for each will draw to its appeal.
Aggressive pricing is yet another one of our marketing goals. We believe that the
prices that you have on the market at this time seem to be reasonable and should stay that
way, having an innovative system that is at high quality and less expensive than its
competitors is the best way to go. With the correct advertising, we can show that just
because our product is less costly than our competitors, does not mean that we have a
lower quality.
Our final marketing goal is sales support. We believe with the best sales team
around will be able to sell the product. If a sales person at one of the chains that sells our
product, such as Best Buy, knows all the features and how the product works the better
they will feel about selling the best possible product to the consumer. To achieve this we
will send training videos to all of our distributors that explain the features of the TiVo,
how they are used, and also their benefits. We will also provide demonstration models
that can be set up in the stores so that our potential consumers will have a full
understanding of TiVo before they actually purchase it.
Overall Communications Objectives
What we, at Professional Solutions, want to achieve is to improve TiVo’s brand
image, essentially as a “must have” product. We want our target market to believe that
this product will make their lives easier. With having the ability to record television
shows that the want to watch and being able to watch those programs at their
convenience, they can feel the sense of control. They do not need to rush their everyday
errands and activities to sit down and watch their favorite TV show, they can watch TV at
their convenience.
We also, want to increase product awareness to the ideal market segment. Getting
the name TiVo, it’s features, and its benefits so consumers can receive some type of
understanding of the product to get them to go out and check the product out. To achieve
this we will be using multimedia, sales promotions, and event promotions. This way are
name is recognized and understood.
Our next objective is to have our potential consumer be involved in the
purchasing process. We plan to make this happen by providing in-store demonstrations
where the consumer will be able to interact one on one with TiVo and have an
understanding of how the product works before they make their purchase. Also, they can
choose how they want to pay for the service, if they want to pay for the first month at
purchase, if they want to pay so many months up front, or if they want to pay for the
service when the bill comes. This way they do not have to feel the pressure to pay for the
service at the time of purchase.
Finally, we want to increase the consumers’ knowledge about TiVo. This, as
discussed earlier, will be achieved with the use of in-store demonstrations. Also, our ads
will also have some of the attributes mentioned, but will have the website mentioned in
every one of them. Having the web site known, the consumer can log on and they can
find out all the information they need to know, and if any questions may occur they can
e-mail your customer service representatives.
Budget
Based on your previous advertising budgets, we have set ours to $7.5 million.
Appendix A and B gives you our budget completely outlined as to how much we will
spend on each type of media. It also shows where we plan to place our ads and when. We
have also asked for an increase in our budget if you feel as we feel as though it will be
very profitable to TiVo’s business.
Basic Problems
The current advertisements that TiVo have been displaying put too much
emphasis on describing the various functions that the product is capable of. They have
engaged in providing informational appeals to the market at a greater extent than needed.
Such informational appeals only reinforce the basic features that TiVo can provide for the
consumer and we see a huge problem with this method. TiVo needs to approach the
market in a different way, explaining that this product can and will be the premier digital
video recorder while staying away from the old approach in terms of simply explaining
its vast advantages when it comes to recording programs at any time. These passé
informational ads don’t promote the more significant dynamic aspects of the new DVR
product category. Consumers are confused about these new devices, which deters them
from being interested and involved in the purchase process. Promoting the significance
of the DVR product category is the best way to rectify this. Taking advantage of such an
approach will distance it from competitors, as TiVo will vigorously position itself as the
leading DVR unit available on the market.
Advertising Objectives
The primary objective that we face is recreating the product identity and brand
image that TiVo currently holds. Some ways that we can stimulate interest in the eyes of
the consumer is by raising consumers’ curiosity in order to get them more involved in
understanding the product itself and simultaneously promoting the user-friendly aspects
of the device. This user-friendly image will be achieved through subtle demonstrations
displayed in various media vehicles that will show just how effortless it is to use. We
also need to set objectives that will differentiate the TiVo brand from competitors. This
will be accomplished by being the foremost promoter of the DVR product category, in
conjunction with the use of emotional appeals in our ads. The purpose for this is to
solidify TiVo as the household name for DVR systems and create a fond brand image.
Major Selling Idea
We will attack the market in terms of promoting TiVo as “The Next Big Thing”.
By structuring our advertisements around a bold and intriguing creative ad campaign,
TiVo will reach consumers and instill the feeling that this is a must have product. We
need to once again focus on the “big picture”: the significance of the overall product in
terms of implications for changing and improving the TV experience. We envision and
will promote this product so that everyone with a TV can benefit from the features TiVo
offers.
Target Audience Description
The target market that we have chosen is purposely broad: individuals who own
or watch television. The market that have selected lacks segmentation because we feel
that TiVo can enhance the lifestyle of any individual who has a TV, regardless of
demographic description. We chose to target individuals of all races, within an age range
from 18 to 54. We also tended to target individuals where household income was greater
than 25,000. We feel that TiVo is priced at a relatively convenient level so that many
individuals are capable of purchasing the product if they garner an affinity for it.
Creative Strategy Statement
In order to promote TiVo and the DVR product category simultaneously, we at
Professional Solutions have created “The Television Evolution/Revolution” campaign
theme. The primary objective here is to create a feeling of excitement and intrigue about
TiVo by ingenuously advertising it as the newest and hottest essential part of consumer’s
home entertainment system. The “Evolution/Revolution” theme is a perfect way to
portray this, as it not only alludes to the enhancement of the television viewing
experience from it’s conventional state but also calls consumers to action by enticing
them to join “the revolution”. Embodied in this theme will be the product’s unique
selling proposition: TiVo offers viewers the definitive, unparalleled TV viewing
experience of the 21st Century. This proposal is completely supported by the products
lucrative benefits of convenience, computer intelligence and interactive capabilities,
which we intend to promote more extensively as consumers interest increases.
TiVo’s first strategic objective during the inception of the campaign will be to
generate an exhilarating feeling of curiosity and intrigue by implementing teaser ads.
These will appear in the form of 15-second TV spots as well as outdoor, newspaper and
magazine ads, all of which will promote the TiVo website and encompass a correlating
“Evolution/Revolution” theme that will climax during the 30-second Super Bowl spot in
February. One of the crucial benefits of this approach is that these ads will replace the
confusion surrounding TiVo’s with fascination. This increased curiosity will spur
consumers to become more involved in the product, provoking them to inquire about
TiVo to trusted early adopters and to the website, which already contains numerous
testimonials from satisfied TiVo users. All of the ads during the initial stages and
throughout the campaign will clearly display the TiVo website so that consumers will be
directed to the best place to become informed on this remarkable DVR device.
Ultimately, potential buyers during this stage will learn of TiVo’s attributes through their
own involvement and through the psychosocial effects of other’s benefiting from it.
This social aspect, which represents consumers’ need to be modernistic, or to
“keep up with the Jones”, will be the basis for our use of emotional appeals in our
advertisements. By relating to consumer’s social and psychological desires, these ads
will leave a more memorable impression than the previous informational appeals that
TiVo has portrayed.
As the campaign progresses, the print and TV ads will begin to integrate functional
appeals with the established emotional appeals. Print ads will especially promote TiVo’s
various features, while TV spots will take a more subtle approach in demonstrating it’s
functions and how easy it is to use. These ads will focus on the new experience provided
to users by TiVo’s features and will be rolled out during the latter portion of the
campaign to resolve the initial curiosity established during the launch.
Assorted execution techniques will be utilized during this phase. Some these ads
will incorporate a fantasy technique to depict the “Evolutionary/Revolutionary” theme by
showing viewers a “not so distant future” and possible future with all types of TV
viewers enjoying the benefits of TiVo. A similar commercial concept is to show the
evolution of home entertainment products and the social implications they presented,
depicting TiVo as the next step.
A combination of humor, demonstration and slice of death techniques will be
used to target consumers in the sports fan markets. These TV ads will humorously
portray two sports fans, one of which is using TiVo to record multiple sporting events
and replay big plays, while the non-user becomes jealous because he doesn’t have one.
This TV spot will boast the amusing aspects of humor with subtle product demonstrations
by way of the TiVo user, as well as implement a slice of death technique, which is
represented by the disgruntled non-user. This formula for TV spots will not only be used
to target sports fans, but for viewers of various TV shows and genres.
Supportive Information
This is the premiere creative strategy for marketing TiVo. Due to the confusion
and subsequent lack of interest currently experienced by potential consumers, the
product’s sales and popularity are severely under realized. The “TV Evolution/
Revolution” campaign that we have created is not only aimed at alleviating confusion,
but will primarily focus on stimulating interest and involvement in our target markets.
The most important factor in accomplishing this is to promote the DVR product category,
with TiVo as the flagship console for this market. The campaign theme that we are
proposing is perfect for such an endeavor, as it enables advertisements to prey on
consumer’s constant desire for uniquely beneficial products and the social factors that
have a significant influence on purchase decisions.
Media Recommendations
In connection with the “Creative Recommendations,” Professional Solutions, Inc.
feels that TiVo, Inc. needs fresh, new innovative media recommendations to correlate
into the newly planned integrated marketing communications program, carefully planned
by our company. In the process, we first defined the key media problems TiVo, Inc. is
currently experiencing:
Key Media Problems:
1. Media vehicles that are being used aren’t successfully influencing potential
consumers.
2. Ad Blitz is not providing effective exposure.
3. Timing of ad releases are not coordinated strategically.
Media vehicles that are being used aren’t successfully influencing potential
consumers. What we mean here is that, TiVo’s current advertisements, such as television
commercials and print ads, are not successfully generating interest in the product. We
also felt that, Ad Blitz is not providing effective exposure. Professional Solution realizes
that all of the different types of advertisements being used currently are not reaching the
target audience effectively. Finally, the last key media problem that we found to be very
important was, Timing of ad releases are not coordinated strategically. Here we are just
simply expressing that since the initial launch of TiVo there has not been any
promotional efforts to attempt or spur up the acceptance of the DVR product category.
All of the different types of ads have not worked together to effectively generate a desire
or curiosity for TiVo. Our company felt these important issues had to be addressed
before further expressing our media recommendations.
Professional Solutions’ goal is to effectively reach potential customers,
our integrated marketing communications plan we help us do so. Before we get into the
kinds of media we also would like set new objectives that will reach your target market.
Media Objectives:
1. Reach more potential consumers through initial media blitz.
Our company’s goal is to immediately catch the eye of the consumer. We want to
this by various methods and media mixes. From the initial start of our launch, we want to
use intense media strategies that will initiate the campaign. Which will be further
discussed below.
2. Maintain a high frequency rate of exposure to multiple ads.
We want to hit consumer and potential consumers with a variety of media to
increase exposure. With our different kinds/variety that is integrated in our plan, we feel
we are giving TiVo a satisfactory amount of exposure opportunities.
3. Vary the use of advertising vehicles within the 12 month period
Our Company also feels that by varying the types of media we are using, we can
keep the image of fresh intriguing content which will avoid wear out to customers.
4. Obtain exposure through aggressive campaign.
Finally, we want to raise awareness of everyone with a television set.
Media Strategy
Our media strategy will consist of these basic elements:
TV Commercials
Sunday Newspapers
Outdoor Billboards
Support Media
Television commercials: were the first ideas we though would be a great way to
get the name “TiVo” out to the public. The major idea behind this is that we want
to hit all major networks, such as ESPN, CBS, NBC, ABC and so on. We want to
begin our campaign with 15 January “teasers” leading up to the Super Bowl. We
want the public to anticipate and look for, the commercial at the Super Bowl.
With the intention of being the “next big thing” that people will talk about after
the Super Bowl.
The academy awards is another idea that our company felt would be a
great opportunity exposure for TiVo. It is a widely watched program that will
benefit form press coverage of popular commercials during the event. The final
idea that has to do with TV commercials is sporting events/season. During
sporting events we will execute our ads in the climax of the basketball season
(spring), baseball season (fall), as well as the start of the football season and the
start of the NBA. Hitting all the major sports and season will also be a great
opportunity for wide exposure.
Sunday Newspapers: we will have a 6 inch, black and white ad that will
consist of pulsing: 1 ad per month but 2 ads in the month of:
January
March
August
September
November
December
We chose these months to have 2 ads because in January, it is the beginning of
our launch and we want spread awareness. We also choose, March and August mainly
because it is the start of the sports season. We chose September because it is the
beginning of the fall TV season, November and December because it is the Christmas
season. All of these months will have tremendous opportunity for great exposure.
We also want to touch on many different geographical areas, so we picked
newspapers such as:
Washington Post
New York Times
Boston Globe
LA Times
San Fran Chronicle &
Chicago Tribune
Magazines: Pulsing Technique
- Heavy exposure at:
- Campaign introduction
- Sports Season Introduction/Climax
- Fall TV Season
- Sports Illustrated
- Maxim
- Sound & Vision
- Time
- Soap Opera Digest
-Entertainment Weekly
-TV Guide
Outdoor/Billboards
-New York (Time Square)
- November, December
- Boston
- January, August, November, December
- South Carolina
January, February, March, December
-Chicago
- January, March, November, December
- Orlando
January, November, December
- Support Media
- Conventional/Retail Kiosks
- Transit
Promotional Products
- T-Shirts with catchy slogans
Movie/TV Placement
- Sopranos episode
- Time Travel/Future Based Movies
See Appendix C and D for Charts
Promotional Element Recommendations
One of the promotional elements that we believe in using is sales promotion. With
sales promotions TiVo can provide rebates/refunds to the consumer at the time of their
purchase. If the TiVo is purchases the consumer can send in a $50 rebate with the proof
of purchase, and within a certain amount of time, the $50 will be sent to their homes.
Contests and sweepstakes will also be used to target some of specific markets. For
example, to target our male sports fan, we could provide a contest on-line during March
Madness. There would be a link on the TiVo website to have the consumer fill out the
March Madness bracket. The person that has all the games correct will win a free TiVo,
and the two runners up can receive a $50 – 75 coupon that they can print off their
computer so they will not have to wait for the coupon to be sent through the mail.
Another part of sales promotions is “free” premiums. If the consumer purchases TiVo
during a certain time frame they will receive the first three months of service for free.
This would be the time frame in which the customer is learning the basic functions and
adapting to the new technology. The consumer does not have to worry about paying for a
service that they are learning how to use.
Another promotional element we plan to use is Cyber Marketing. This will be
targeted to our technologically advanced market. This includes the TiVo website, where
the consumer is provided the information they need to know about TiVo. At the website,
the consumer can sign up to have newsletters sent to them about upcoming changes, and
benefits. Also we will have web banners on other sites and pop-ups, although they cause
frustration the name will bound to be noticed.
The next promotional element is Publicity and Public relations. Through the use
of press releases and press conferences we can get the good word out about TiVo. To do
this we can announce any new features that will be added, and if there are any changes
being made. Also, if there are any problems encountered what is TiVo doing to fix it to
make their customers happy. This will not only keep your current customers happy, but
will also attract new one’s, showing that TiVo is concerned and is there for the
customers.
Finally, there are event promotions. Sponsoring sports events will allow us to
have banners with the TiVo name on them and be shown to the arena and on national
television. The use of contests will also be used at sporting events. As an example, at a
basketball game we can draw a seat number and that person will have to shoot from a
certain point on the court. If the basket is made, they win a TiVo, if not, then they will
receive a coupon for one. TiVo can also get recognition through the use of sponsoring
charities, whether it is a dinner or a golf tournament, all proceeds go to a local charity,
this way TiVo receives good publicity. Finally, we plan on attending special interest
conventions, such as television, movies, and Star Trek. A TiVo booth will be set up
where we can pass out t-shirt, key chains, and pens, to provide long-term recognition.
Pamphlets can be handed out with valuable information about TiVo and how it works.
Also, we will set up demonstrations so people at the convention can learn how to use the
product. All people that come to the booth can sign up for a contest, where, at the end of
the convention a name will be drawn, for one lucky person to win TiVo.
We, at Professional Solutions, believe that through the use of our media vehicles,
a sure profit will be shown and all confusion about TiVo will be swept away.
Evaluation
Several evaluation strategies will be implemented throughout the campaign in
order to gauge its effectiveness. The first and most frequent will be brief online surveys
that will be located at the website and at numerous other sites that contain TiVo ads. This
form of marketing research will prove to be quite significant during the launch of the
campaign, as it will monitor the success of our creative strategy and consumer’s reactions
to it, as well as the impact on brand image. These survey’s will change throughout the
course of the campaign in order to determine consumer’s response to our promotional
efforts at various times. Survey questions regarding the Super Bowl and Academy
Awards advertisements will be added during those respective time periods in order to
assess their popularity and effectiveness.
The amount of visitors to the website will also be observed, especially during the
initial six months of the campaign. This will provide indications for whether or not those
consumers being exposed to our ads are becoming more involved in learning about TiVo.
The website will also be monitored for increases in online order placement in order to
detect correlations between advertising exposure and immediacy of purchase
Quarterly sales will also be monitored to evaluate the direct success of the
campaign at different periods. Such information will allow us to see if our ads are raising
levels of curiosity and product involvement among potential consumers. If sales spike
during a certain period it may provide positive implications for the various media
vehicles implemented during that time. Annual sales figures will also be evaluated in
order to determine the overall success of the campaign.
Appendix A
Appendix B
Appendix C
Appendix D