TiVo Case Study Essay
TiVo Case Study
1.Analyze the situation from the consumer’s standpoint. What is TiVo? What factors facilitate its adoption? What factors make adoption difficult? Who is TiVo best suited for?
TiVo is a form of television recording technology used to record shows based on the users preferences. It can store a vast amount of recorded shows and play them back with out the interruption of commercials. It has added features such as pause and fast-forward, which can enhance and improve the television viewing pleasure of the consumer. This works similarly to the current Comcast DVR. At the time this was a solution for the television consumer to contently watch all their favorite shows with out the wait or the boring commercial breaks.
The major factor that can facilitate adoption of TiVo is the ability to watch shows when you want them, not when they are aired. This enable the viewer to watch several of their favorite shows all on Thursday nights when they had additional time instead of missing shows that aired on Tuesday because they worked late or had something else going on. Having this option meant you did not have to wait on re-runs or recaps. This is very appealing to the working adult. Which I feel is the best target audience for this product is the working adult from early 20’s to mid -40’s. With this being a bit of a “techy” item it may be harder for the older 50+ generations to adopt quickly. I feel that it may work for younger generations but since they are not in the market to purchase or continue services with out an adult this would not the target segment.
2.Now adopt the standpoint of the networks, the advertisers and the cable/satellite companies: What do they want TiVo to be? What is TiVo’s competition?
For the TV Networks, advertising companies who utilize cable TV to promote their products and services TiVo should be utilized as a complementary device that can help promote business the same as commercials do with traditional TV. They do not want TiVo to become a threat and deter or undercut business they currently receive with the use of commercials. I feel the Networks should be most appreciative of TiVo because it will enable viewers to tune into shows they offer more regularly on their own schedules. As long as the programs are being watched that is the main concern for the network and its ratings. For the basic cable and satellite companies this would also work as a complimentary service to the consumer. For the larger companies like I mentioned above such as Comcast, TiVo is a competitor, offering a similar DVR service for their premium cable customers. At the time of the article Replay TV was the biggest competitor. Other completion for TiVo is the other DRV services being offered from a variety of different sources.
3.What factors should influence the positioning of TiVo?
I think the demographics of the target consumer should be greatly considered. Price point and availability need to be considered when marketing the product. A more expensive product will not appeal to the younger generation regardless of the technology capabilities. The higher the technologically advanced the older segments will shy away, therefore TiVo really needs to strike a good balance between the two in order to properly position the product in the market. At the time that it came out it had the top shares of the market and was a market leader. TiVo should play up its attributes and what benefits it brings to TV viewers everywhere such as convince. With the convenience it will gain some leverage for the price they are charging since it can be marketed as a luxury item. Clearly defining what the customer will get from the product is important and valuable to the customer.