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Brian Frankel

on 4 May 2010

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Transcript of SnapTV

Consumer Purchase Process The Marketing Mix (the solution) Product Price Place Promotion Macro-Environment Micro-Environment Rivalry Among Existing Firms
Netflix, Blockbuster, OnDemand, etc.)
Substitute Product or Services
Internet, Box Office, DVD
Bargaining Power of Suppliers
Movie studios
Copywrite, Release window
Rising Box office prices, lower disposable income
Home entertainment
Streaming, entertainment systems, babyboomers are not tech savvy Projected Financial Performance Problem Identification
1. New releases can only be rented on DVD
2. Consumers want new releases as soon as they are made public
2. Extremely high inventory costs of DVDs Porter’s 5-Forces Model Straight to TV movie and TV show service
Free SnapTV receiver box to hookup to your TV and have thousands of movie titles and TV show episodes at your finger tips
Titles can be selected through your TV screen
No need to drive to the store, go online, or wait for next-day mail
Monthly subscription fee of $29.99
HD Box Upgrade $49.99 Streaming to your telivision
SnapTV will open their service at the beginning of Winter 2010 for $29.99/month
Receiving box will be sent to subscriber for free and must pay monthly fee for the service
Internet only service purchase:
- One-month free trial with credit card on file
- Billing will begin in the second month if service is not cancelled
Best Buy in-store purchase promotion
- HDTV + SnapTV bundle
- Purchase an HDTV and get 6 months of SnapTV for $9.99/mo.
- Strike zone display
Competitor Pricing Intratype Competition We are offering the same service as our competitors Fixed Expenses:
Website, database, office space
Variable Expenses
Licensing, SnapTV boxes, wages, advertising, maintenance
Full transcript