TiVo- Market Segmentation & Positioning

Sent by : EPBM 13 Pune 01

Prepared by : Priyank Sharma, Ajay Gupta, MN Saravanan
Contributed By:
Abhijit Shedge
Ajay Gupta
Harminder Sachdeva
Harshad Dhake
Kiran Menderkar
M.N. Saravanan
Priyank Kr. Sharma
Swaroop Kulkarni
Vinod Mahajan

EPBM -13, Aundh Pune01

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Dell- -Internal
InternalUse
Use- -Confidential
Confidential

TiVo- Market Segmentation & Positioning

Variables of Segment:

Age Group different age group was interested in different type of programs
Income low income group probably would not go for TiVo
Marital Status a great convenience for them
Working Population great help for them to view programs after telecast and to manage their
work
US Geography very fond of viewing TV
Easy Adopters people who were at ease with new things were probable candidate for TiVo
Benefits envisaged Recoding, Pause, Feedback, Internet, e-Mail,
Program Schedule network, recorded programs
Price some of the consumers are wary of prices and actual benefit
Usage TiVo owners were using it most of the time

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TiVo- Market Segmentation & Positioning

Porter Five Forces Analysis:

Buyers (Strong),
Convincing, behavior

Suppliers/
Channel(Strong)

Threat of New Entrants (moderate to high) - IP

Competition
(Replay, MS
Ultimate )
(weak)

(Sony, Philips), Best Buy

Substitutes(Network, Dish)
(Strong)

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TiVo- Market Segmentation & Positioning

SWOT of TiVo:
Strength:

Viewers are satisfied once they start using the TiVo. 90% of them said that they would be recommending TiVo to
others.
Features of TiVo were appreciated by consumers, like Thumbs Up & Thumbs Down.
First mover advantage to provide such features.

Weakness:

The lack of awareness is one of the problem.

The inclusion of many functions was seen as a deterrent at initial stage of using TiVo, but not once user gets used of
these many options.
TiVo involvement was restricted to Public Relations & limited mass media campaign.
The category of the TiVo product was not clear among public.

Opportunities:

A large population TV-Viewers is untapped till date.

TiVo was pushing the idea of Empowering Customer which has a huge potential.
TiVo also opened up opportunities for Network provider & Advertisers.
Data collected from TiVo could be used to Analysis by the broadcasters.

Threat:

New entrants in the market with latest features, like MS Ultimate.

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TiVo- Market Segmentation & Positioning

Suggested Segmentation:
Character Geograph
istics
ic

Demogra
phic

Psychogr
aphic

Behavior
al

Favorable
to TiVo
(High,
Low,
Medium)

Segments

1. Growing
Kids

US
population
is mostly
fond of TV
Viewing.

Kids prefers
watching
lots of
programs.

Not much to
get into

Attractive

Medium

2. Young
Profession
als

US
population
is mostly
fond of TV
Viewing.

Preferable
them to
record and
view

Better
suited
( Price, multi
usage)

Ready to
Use, heavy
usage

High

US
population
is mostly
fond of TV
Dell - Internal Use - ConfidentialViewing.

Scheduling
is easy

Multi usage,
price bit
high

Medium
usage,
Positive

High

3. Grown
Up
working
Couples

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TiVo- Market Segmentation & Positioning

Why encircled segments to target?

The Young Professionals and Grown up Working Couples, which are encircled in last slide are the
preferred segments to reach out because of the following factors:

The strength and purchasing power can be accessed from various channels.(measurable)
These groups are the one who will be most benefited with the features provided by TiVo, so they
will be able to pay a premium once they started using the service, (Accessible)
As most of the consumer of these groups is expected to be available in developed cities, it would
be easy for TiVo to reach them out. (substantial)
These groups are well educated and aware of new technologies so it will not be a difficult task for
TiVo to make them understand the features and differentiating the product from others.
(differential)
The communication and response is expected to be good from these groups for good services
and products offered. (actionable)

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TiVo- Market Segmentation & Positioning

How to make inroads in the targeted segments?

Creating Value to Satisfy & Retain Customers :

Values for Customer and Analysis:
Major attributes & benefits - Freedom from Network, Recording of Program and viewing later, Fast forwarding
commercials if need be, providing feedback and pausing the live telecast.
Quantification of Benefits the above mentioned benefits should be ratified by consumers.
Comparison of Rating the rating should be compared with that of Competitors
Examining the Rating in specific Segment
Major Customer Values periodically review economy, technology, features of its own and competitors

Higher Value proposition

Feedback & Complaints from Customers
Product & Service Quality

cntd..

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TiVo- Market Segmentation & Positioning

cntd.

Creating Value to Satisfy & Retain Customers :

Better product & service for targeted segment

Plan customer satisfaction &retention process
Voice of Customer
Organize a database to capture customer preference, purchase pattern & satisfaction
Easy and accessible mechanism for customer to reach out to the company representatives
Incentivizing employees in order to make them more concern for customer needs

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TiVo- Market Segmentation & Positioning

Positioning:
Price

Ca
ble Dis
h

Re
pla MS
y U

TiV
o

Features

Usage Satisfaction

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TiVo- Market Segmentation & Positioning

Thank You

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