1.0 Executive Summary Since 1999 TiVo has been on the market.

Its inventors, Jim Barton and Michael Ramsey, created TiVo to be a home network. TiVo has partnerships with Sony and Philips to market and distribute the product. Best Buy, Sears, and Circuit City all sell TiVo nationwide. TiVo is a device that allows the user to move to another program more efficiently. The system is able to remember the consumers favorite programs and record those programs. It also gives you the capability to pause the program that is being watched and also fast-forward through commercials or parts of the program. Another capability is to use slow motion to analyze what is being watched. 2.0 Situation Analysis TiVo is in its fifth year of being on the market. The demand has been increasing since its debut in March of 1999. It is a complement to any television watcher. The basic marketing need is to provide a product that will enable the consumer to have a more enjoyable television watching experience. 2.1 Market Summary We know what our customers want by the feedback current customers have given us. We receive other information from surveys that tell us what the customer expects and demands out of our product. Target Market

20%

50% 30%

Young Adults (1925) Career Age (25-45) Middle Age (45-65)

2.1.1 Market Demographics The profile of the TiVo customer consists of the following geographic, demographic, psychographic, and behavior factors: Geographics The target market is located throughout the United States. The total targeted to about 180 million people. Demographics Primary age ranging from 25-45 with a median age of 35. Owns at least one television set in their place of residents. Has access to cable or satellite television. Able to operate technology. Profile of United States population The average American household owns 2.4 television sets. The household spent 7.4 hours per day watching TV. 4.3 hours an adult spent watching TV. Psychographics Television is an important feature in the home. On occasion, entertains in their home. Behaviors The consumer enjoys watching their favorite shows or television in general. They want to skip over commercials. Sport watchers who want to act as the referee who wants to pause the shot.

Market Analysis

Potential Customers

Growth

2004

2005

2006

Young Adults Career Age Middle Age Total

20% 18% 10% 16%

18.3 Million 27.5 Million 11.0 Million 56.8 Million

21.96 Million 32.45 Million 12.10 Million 66.51 Million

26.35 Million 38.29 Million 13.31 Million 77.95 Million

2.1.2 Market Needs TiVo is providing its customers with a unique television experience. They are able to stop, pause, and rewind live television. Another function TiVo allows its customers to do is to tape their favorite programs for them while they are out or watching another program. This is helpful when their favorite show is on at inconvenient hours. TiVo allows its customers to be their own network programmers. We hope to offer customers with: Selection: The choice of what and when to watch a particular program. Accessibility: The customer can easily use the remote to have TiVo tape their favorite shows. Competitive Pricing: Since new products have entered the market TiVo has dropped its prices to stay competitive with those competitors. User-friendly: TiVo is able to look through the hundred plus channels for the program you would like to watch. 2.1.3 Market Trends The market for TiVo has been on the rise since its introduction in 1999. The industry is driven by consumers who want to have control of the programs they wish to watch. The growth is from those people who want to be their own programmers. They wish to avoid all the commercials that are played between sets of their programs. Consumers are watching roughly 7.4 hours of television a day; they will want the luxury of watching what their programs without all those commercials.

Market Forecast

50 45 40 35 In Millions 30 25 20 15 10 5 0 2004 2005 2006 2007

Young Adults (1925) Career Age (25-45) Middle Age (45-65)

2.1.4 Market Growth As technology becomes a bigger part of everyday life, TiVo will benefit. Hopefully, increases in technology in homes will open up the demand for television that is more technologically advanced. This will create a market demand for TiVo because it is not just watching typical television. You have the advancements to be selective; customers are not tied to just the programs that are listed on the cable or satellite provider. An advantage that TiVo will have is that young adults will be moving out and onto their own, they will have the knowledge of how to use technology. As they get older they will branch out into society and will want to watch the old programs that they enjoyed and TiVo can do this for them. As society ages, there will be new classes that come into effect that will have already lived life with TiVo and demand will increase then as well because those potential customers will still want life with TiVo.

Target Market Growth

20 15 10 5 0
2.2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing TiVo 2.2.1 Strengths Good referrals from current customers. Some co branding. Nationwide sales ability. Good customer satisfaction. 2.2.2 Weaknesses Knowledgability of salesman selling TiVo. Still an unknown product. TiVo has a confusing product class. Costs are still considered for most consumers. 2.2.3 Opportunities Benefits with an aging and educational society. A growing demand in the market for the product. TiVo is being sold in stores and on the internet nationwide. Customer referrals. 2.2.4 Threats Competition within the product class. Still at what could be considered as high prices. Changes in technology. Advertisers are upset because you can fast forward through the commercials.

Young Adults

Career Age

Middle Age

2.3 Competition Competition from the area of video recording comes from similar types of products. Replay Networks o Started in 2000, associated with Nationwide Panasonic. This product has the same recording capability as TiVo, but the price being $200 higher included the service Microsofts Ultimate TV o Associate with Web TV sold nationwide allows customers to have access to the internest as well as personal video recording Javio o Based out of Pittsburg, PA, would give customers fee service. To allow this Javio would insert advertisements. VHS/ DVD o These are still making an impact and are competitors to TiVo. 2.4 Product Offering Various points of differentiation The first product of this kind Season pass offers to tape your favorite shows while you are away from the television. The ability to rewind, fast-forward, and pause shows The ability to rate shows from the television Has an electronic program guide to allow sneak previews of shows. 2.5 Keys to Success Customer referrals to potential customers o Promote good salesmanship o Follow up with the customer o Help if they have a problem Drop price out of manufacturing stage and to stagnant price Maintain a relationship with the consumer 2.6 Critical issues Since TiVo is still in its introductory stage it still has some critical issues that it needs to deal with. These critical issues are: Slower start the suspected Needs to downscale certain aspects of costs Create the awareness needed to gather consumers 2.7 Historical Results It did not work to just adapt to early adapters. o They told their friends fragments of the data that TiVo expected them to mention

o Compared TiVo to a super VCR and then other people compared it to live TV. Try to make it work a second time to reach a broader area o Advertise using: Flyers Newspapers Television, etc.

2.8 Macroenvironment There are different trends and issues that will have an impact of the success of TiVo. Shifts in the technology o As technology advances TiVo could become either obsolete or become a important product. Aging society o As members of society age those that they affect will have their opinions on a product and possibly purchase their own. Couch Commerce o Advertisements are not considered relevant to individuals anymore and that will cause people to skip over advertisements. As a result, TiVo advertisements might not be seen. 3.0 Marketing Strategy Our marketing strategy is based on becoming the alternative to watching television at specific times. This marketing strategy is based on performances of: Product Quality Product Selection Customer Service This marketing strategy creates the awareness, interest, and desire needed to create an action. 3.1 Mission TiVo is a product that will allow individuals to watch television at their own pace and at their own convenience. TiVo seeks to allow individuals the freedom they desire. 3.2 Marketing Objectives Increase sales by 16% a year Increase sales by 12% with each addition of a new type of advertisement Develop new ways to generate awareness 3.3 Financial Objectives Reduce the cost of goods by 5% Increase revenue by 4% quarterly Continue to have a growth rate in sales from previous years

3.4 Target Markets TiVo has three main target markets young adults, career age, and finally middle age. Young adults- This group consists of individuals from the ages of 19-25. These people are usually unmarried and carry less responsibility. They are not considered a group that has children. This group is the second on our list of sales. The young adults are still in that carefree stage. They are more likely to buy on impulse. Career age- This group consists of individuals from the ages of 25-45. These people are usually married, have children, and careers. We put this group of consumers at the top of our list. With busy lives these consumers want to watch certain programs but due to prior engagements they are not able. We feel that this group will buy more for the benefits that TiVo can provide. Middle age- This group consists of individuals from the ages of 45-65. These individuals are getting to their freedom stage that might have been lost through kids and careers. Now this group wants to experience the frills of life that they might have missed out on. This group would also be more likely to buy TiVo for the benefits that it would provide. This group however, is not often very good with technology. 3.5 Positioning TiVo will be positioned in the United States. Each consumer desiring the product could have access to TiVo. Due to our various ways of advertising techniques an individual could attain TiVo. 3.6 Strategies By positioning TiVo around the United States, we will have access to a large market. Our marketing strategy will create the awareness needed for a consumer to want to buy a product. This can be done through: customer events, customer insight, and possibly other markets. Customer events o Lunches with customers, potential customers, etc o Evening events that could give customers a chance to meet with other individuals who own TiVo o Fund raising events to build relationships o In store demonstration for potential customers Customer insight/ information o Newsletters- to get information out about consumer o Post- buy information- make the consumer feel important o Ask about questions that an individual has and address that issue Other markets o Sell in electronic stores o Selling accessory products in another store 3.7 Marketing Mix Our marketing mix is a product of price, promotion, distribution, and customer service.

Price- The price is based on the benefits that an individual can receive from the product. This price is decreasing due to consumers not wanting to spend large amounts of money on a product they feel could leak personal information to other sources. The product is also moving into the maturity product life cycle stage. Promotion- Promotion for TiVo includes demos, co-branding, and media coverage. o Demo- Demos are needed because consumers cant always put images with descriptions of products. TiVo will make demos to allow consumers to create their own image of the product. o Co-branding- TiVos co-branded with Philips and Sony. To create consumer awareness; TiVo is an unrecognizable name so when consumers see a brand name they associate products. The products could have nothing to do with each other, but due to brand loyalty a person who might not have ever bought TiVo will now because of the Philips or Sony name attached to it. Distribution- TiVo will be distributed through retail, sales promotions, advertisement, and phone orders. These types of distributions can lead to product awareness. Through awareness a consumer can feel the desire to own a particular product and as a result buy the product. o Retail- If TiVo can be sold through retail then there is a possibility to lower costs, advertise the product to a different degree, and create awareness. o Sales promotions- Through sales promotions, such as commissions, an individual could help a business sell their product and at the same time help seller in the process. Other types of sales promotions can prompt the seller to try to push TiVo in another point. o Advertisements- TiVo can publish different types of advertisements. For instance: newspapers, television, billboards, internet pop up, radio, etc. Through advertisements a companys product can gain awareness. o Phone Orders- In a process where individuals could see TiVo on television (through demos) there could be a toll free number where individuals could call and order their very own TiVo for only. This would be similar to an infomercial. Customer Service- Customer service is essential to any product. That is why we will have a website, a problem center, and in house associates in businesses. o Website- A website would allow individuals who dont like to deal with an actual person. This way they might be able to find the problem that they are having without ever having to associate with a person. o Problem center- A problem center would have a toll-free number where consumers can talk directly to an individual and get the personal feeling that some types of people feel they need. These consumers might just want the ability to ask questions while they are fixing a problem.

o In house associate- An in house associate would be located at the retail stores that the product is sold. (hence in house) This way when an individual has a problem they can go straight to an actual person who can show them what they are doing wrong and how to fix the problem. The individuals who go to the in house associate for their problems are the more hands on learner. 3.8 Marketing Research We will have a few different methods of gathering data on our product. Surveys- The surveys will be placed in the package with the product. Through a promotion (rebate) an individual could fill out a survey that asks how they like the product, how well were the directions, and various other housekeeping questions. Questionnaires about the customers experience in the buying process- In this, we can ask the consumer about how they were treated by the associate who helped them, or if they were another type of customer they could relay that information as well. Ideas for us- Here we give the consumers a chance to give us feedback about what they liked and disliked. What they feel we should change or keep the same. Problems or concerns- This gives the individual another chance to ask about any questions or concerns they may have with the product. Checking out the competitor- To find out information about how we could change our product we could look at a competitors product. By evaluating another product a person could think about things that could be added to the TiVo to make it better.

5.1 Marketing Organization It is the entire organizations job to help promote this product. All the things listed here can be implemented started with Jim Barton and Michael Ramsey. The final ending is with the salesman and the consumers. Getting the product out there and into the minds of the consumer is issue number one. Once our product gets into the consumers minds they will be likely to go out and purchase TiVo. When the customer reaches the store the salesman then is the final key for sales of TiVo. The salesman has to be knowledgeable of TiVo and what it is and does. When this is finished, TiVo will be at a higher demand and increase final sales.