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VV TiVo Case

Inhabit the future world of work.

Taylor Saalfeld

on 6 May 2010

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Transcript of VV TiVo Case

Company History

Founded in 1997
Mike Ramsay and Jim Barton
A joint venture with Time-Warner
External Marketing Factors

First Mover

Consumer more concerned with price

TiVo needs to innovate The Palamor5 used Scenario Planning to explore the 'future of work.'

Sceanrio Planning is a strategy tool used to map out future contexts. The tool consists of an axis made of driving forces in society and economy. This axis becomes a positiong model allowing for navigation and habitation.
P5 began with an interactive Trend Analysis to open a brainstorm on driving forces. The 6 groups focused on their respective topics and began harvesting consepts and images. The workshop produced the 6 scenarios with 4 possible outcomes. Within each quadrent the groups where asked to inhabit the world with a character, the stories that arrise give insights to what the digital generation of today thinks about life and work in the future. What is TiVo?

VCR replacement - hard dirve
Strong user interface
Very innovative
Either $12.95/month or $299/lifetime
Taylor Saalfeld, Alex Martin, Jennie Nguyen, John Kimminau VV Product
70 patents related to DVR technology, with 106 pending
Home Media Option (HMO) and TiVo to Go
Highly regarded user interface Price
Their price is baseline
Similar products and prices
Added bennefit
Long-term value Placement
DirecTV partnership
Value Chain placement
CE Retailers
Spent over $250 million on sales and marketing
TV ads
Not just selling TiVo, but DVR itself
More product oriented
Lack of installation service
Main demographic was not "techies"
Additional service = additional revenue
The "Perfect" TiVo Customer
Works all day
No time to sit and watch TV during the week
Loves to watch TV
Buying Steps
Realize that free time is hard to come by
Research to find the ideal DVR service
Find TiVo, try out the free trial
Subscribe to basic TiVo service
Subscribe to additional services
Tell friends and family
1st Tactic:
-Offer an extensive trial period
-The goal is to yield maximum awareness
-TiVo should focus not only on cable providers
-They should also partner with Satellite providers
2nd Tactic:
-Partner with large ad firms and large corporations
-Coca Cola, Exxon Mobil, Accenture, Apple
-Discounted Price
-Fits TiVo mission
3rd Tactic:
-Sell TiVo hard drive installed in all T.V.’s
-Eliminate middle man
-Eliminate home installation problems
Recommendation: 3rd Tactic
Customers will be more like to keep the product
Contracts with all Television providers
Will cut out the need to go through cable providers
This product will enhance the use of the T.V.
TiVo and Television companies can do advertising together
TiVo is a product designed for convenience, time and money
Marketing Problem - three main areas:
ability to contract with national providers
patent expiring COMPETITORS OF TIVO
two main markets: higher quality, higher price and lower quality lower price
typically sold as a compliment to other services
Only 10% are sold through their website
90% of sales are through contracts with providers
Quality of Partners & Ability to Maintain Partners
defines how they deliver them and what safeguards are in their technology to avoid hackers.
technology transfer occurs
use additional R&D funds in order to release a new product that is more sophisticated PROBLEM SUMMARY

Developing a new product is both an expensive and risky investment. However, as presented by the case, TIVO needs to make an aggressive move in order to remain a viable player in this market.
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