TiVo

Group -5 SRISHTY (P16012), AMIT (P16015), KARTIK (p16020), NIMESH (p16034),

SUBHAJIT (p16047)

Tivo was founded by Jim Barton and Michael Ramsay which got launched in the year 1999, and
had signed up 42,000 subscribers in fourteen months of their launch at a rate of 14,000 new
subscribers per quarter which is only 0.04 percentage of the market.

In digital video recorder category it had good positioning and its product reliability and
distribution was also improved after their partnership with Sony and Phillips, also with national
presences of Best Buy, Circuit City and Sears, TiVo is able to offer their products all across the
nation.

However, apart from low penetration, TiVo is running in losses and also due to high price and no
reference point, it is hard for TiVo to find the acceptance price level of consumers. It was also
hard for nonusers to understand its functioning and advertisers feared that customers would skip
the commercials.

TiVo has entered into the growth phase of the Product Life Cycle, however is facing competition
from ReplayTV which has a distinctive button of Quickskip and no additional service fee and
second by Microsofts UltimateTV which is more technologically advanced.

Alternatives and the action plans:-

1. Creation of brand awareness TiVo needs to focus on commercials and Ad campaign,

there is also a need to increase their sales to low and middle income households as well
as young, elderly, professionals etc., also at the same time, they need to maintain strong
relationships with current subscribers.
2. Lowering the price Price and subscription charge needs to be reduced with higher
incentives to attract more customers and hence increase the customer base. TiVo can also
consider providing the product in installments to increase its sale amongst low and
middle income households.
3. Promotional offers TiVo can consider providing free trials to promote awareness which
can act an experience for customers, also can offer referral discounts and incentives who
offer, to market the company by word of mouth.
4. An in-depth point of sale demos at retail stores To emphasize on the special features of
its product, effectiveness and ease of implementation.
5. Partnership with service providers- To boost sales, market share as well as exposure to
mass market, TiVo can also extend partnership with DirectTV, Comcast etc.