TIVO IN 2002

CONSUMER BEHAVIOR

SUBMISSION BY: GROUP 6

Diptej Amerkar

(804)

Abhinav Bhatia

(806)

R. Krishna

(826)

Neelam Mayenkar

(833)

Vaibhav Powar

(849)

Akshata Virgincar

(861)

ANALYSIS of TIVO IN 2002

ISSUES INVOLVED:
Surprisingly slower start (number of subscribers lower than originally estimated)
From Exhibit2: Financials we can conclude that the Marketing and Sales costs
have shown little significance in increasing revenues for TiVo
Lack of awareness about TiVo: Poor Marketing!
Profiles of subscribers were lower: No Mass Appeal
From Exhibit5: Demographic Data we get to know thatthe higher percentage
of TiVo subscribers are formed by
o Age Groups: Above 24 years and Below 55 years
o Married Couples
o High Income Families ($51K and above)
Failure of Microsofts Ultimate TV:
Could not create an impact on people, which lead to its withdrawal from the
industry.
No promotional campaign from Microsoft after failure
Disparity between customer satisfaction and growth
Post purchase attitude reflects high level of customer satisfaction
Perceived Risk
Middle and low income households small % of purchasers
Awareness and intention to buy are rising, action is not following
Customers seek reinforcement from friends prior to purchase
Best Buy was considered the exclusive retailer of TiVo: Poor Distribution Channels
TIVO OBJECTIVES:
Generating positive cash flow even under slow growth rate condition
Identifying potential customers and understanding their needs
Using advertisers, television networks, content owners and service operators to play a
role in TiVos relevance in life of the customer
KEASTS OBSERVATION AND OBJECTIVES:
New users consist of affluent families, they watch TV but are busy at the same time, TiVo
helps them organize time
Customers are emotionally attached to TiVo (could add to TiVos benefit)
To reach potential customers who dont see TV as a problem and to make them
understand how TiVo can improve their experience
To use customer surveys, customer responses to decide how to convince customers to buy
TiVo

CONSUMER BEHAVIOR
Satisfied Needs: Facilitates watching of the programs at any time of the day or night (by
using Trick Play)
Better Utilization of Money spent
Strengthens Interpersonal Relationships: Can devote more time towards spouse and
children and have some time for yourself too (self management)
Improves Social Life: Does not force one to leave a function unattended only to watch a
particular program.
Patronage: Possibility that the existing customers will most likely recommend it to others
Appeal Factor: Customers find TiVos features more attractive than most of the other
Electronic gadgets.
RECOMMENDATIONS (Plan of Action):
Need Arousal and Awareness: Make the networks and advertisers use the result from the
Super Bowl experiment to convince people to buy TiVo.
Maximize Customers Benefits & Strengthen Relationships:
Provide free subscription for 3 months to tie the customers to their products
Provide Referral benefits to its existing customers.
Risk Factor : Use survey results to show how TiVo can change their lives
People buy products based on the risks attached to them - Lesser the risk more
they buy
Level of Interest : Target people between 18-24 years of age
They are more likely to spend on entertainment and would prefer technology
Promotion of TiVo in Universities
Product Distribution & Promotion:
Do not limit to Best Buy only; improve the distribution system by involving more
cable providers and retailers
Create partnerships with cable providers and retailers, use them to educate people
about TiVo, promote package deals
SUPPORT
Bridging the gap requires provision of the TiVo experience
The TiVo experience cannot occur at a retail demo
One month trial provides true TiVo experience for consumer
Use high level of customer satisfaction to advantage
Price cuts will:
Increase sales volume and penetrate broader consumer market
Increase market share, Increase cash flow
Position TiVo to build and continue relationship with subscribers
Observe demand at lower prices
Short term loss in profits will lead to greater growth and opportunity to maintain
subscribers
Future of the industry
Use cable companies as a distributor

Consumers are looking to combine TV, internet, and phone lines