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Tivo Case Analysis

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TiVo Case Analysis
A number of technology-based products have had sterling forecast demands as TiVo had before launching the product with some of them going on to disappoint and others living up to the up when they hit the market. Samsung mobile, in its flagship Galaxy S4Smartphone had initial extremely positive forecast on the demand due to the innovation and efficiency (Costello, 2013). They then went on to experience weakening demand due to supply chain challenges. Apple iPhone in recent years have seen their demand forecast fall short despite investing in landscape-changing innovation compared to its competitors. This is blamed on the saturated high-end smartphone market (Rigby, 2014).
During the market research in focus groups conducted by Odyssey Research, consumers were shown how to install and use a TiVo prototype. They were also told the price of the set-top box once it went into the market. Several people in the focus groups raised concerns that TiVo was complicated and time consuming to set up while other felt that the price of the set-top box was too high and that they would wait until the prices fell before buying. The insight on buying process however indicated that husbands would initiate the decision to buy TiVo but they would have to consult the wives with their wives before purchasing a set-top box sue to the high price of TiVo. Participants in the study also showed that the decision to buy the TiVo set-top box would largely depend on references by trusted personal sources of information such as family and friends.
TiVo should have targeted the Faithfuls in order to penetrate the market effectively. This groups consists of middle-income American families and TV is the center of their households. Although they are only 20% of the population, the average annual income stands at $48,000 and they on average spend $500 on consumer electronics thus suitable to perpetuate this product sufficiently enough for the rest of the segments in the market to take it up. This is also the target that has more of the unique mix of TV-involved consumers and those who can afford to buy the set-top box. Focusing on this group would mean that they would evolve into a word-of-mouth source of marketing for TiVo thus reaching even a wider customer base.
The position statement before the launch would display TiVo as a product pioneer in the Television industry and offer not just efficiency and coolness but also make this device accessibly affordable for the target market. “TiVo is the first in the entertainment market to offer an innovative, revolutionary but simple device that will allow viewers to watch all their favourite TV shows by providing up to 60 hours of recording for desired shows and pausing of live TV.” The second statement after the competition enters the market would seek to establish TiVo as the best value for money besides being a market leader and a pioneer. “To the lover of uninterrupted and customized entertainment while sitting at home, TiVo brings you a superior DVR that offers you the ability to decide what is on TV by allowing you to pause, slow motion, skip commercials, simultaneously playback and record.”
Due to the failure of TiVo to live up to expectations with the sales and market penetration, a number of marketing strategies could work for them to turn their innovative device into a success that it deserves. TiVo needs to venture into internet TV and be part of the growing broadband connection across North America. New improved set-top boxes are also vital in order to keep up with the technological advancements such as HDTV and Internet TV so as to distinguish TiVo from other service providers. Embedded advertising can be game-changer since TiVo will be able to randomly select products a consumer is watching on their favorite show and advertise it at the bottom of the screen. Interested viewers can even buy the products at the touch of their remote controls. References
Costello, S. (2013). Slowing demand reported for Samsung’s galaxy s4. [online] Retrieved from: http://www.mobileworldlive.com/slowing-demand-reported-for-samsungs-galaxy-s4 [Accessed: 25 Feb 2014].
Rigby, B. (2014). Apple's iPhone sales, revenue forecast fall short; shares slide. [online] Retrieved from: http://www.reuters.com/article/2014/01/28/us-apple-results-idUSBREA0N1OV20140128 [Accessed: 25 Feb 2014].

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