Tivo

Q1. TiVo's SWOT Analysis

Strengths

 Pioneer in the product category

 Friendly yet all comprising name: TiVo (TV Your Way)

 Easy to use and equipped with numerous innovative features

* Pausing and replaying live TV

* Recording without DVD, VCD or video cassettes

* Electronic Program Guide (EPG)

* "Thumbs up" and "thumbs down" buttons for rating user's favorite shows

* The season pass feature

* Fast forwarding feature, upto 60 times the normal speed

* Suggesting users, the shows they would want to watch

* Downloadable feature upgrades and update of programming schedules

 Nationally available through electronic chains like Best Buy

 High level of customer satisfaction

 Two different models and three service packages available to attract different consumer markets

 The new pricing strategy lowering the price from $999 to $399

Weaknesses

 Expensive product with additional service fee

 First in this category, so lack of category awareness

 Ineffective communication with its consumers

 Functions were difficult and confusing to explain to customers

 Restricted promotional activities to public relations, animating its website, and a very limited mass media campaign

 Lack of brand awareness

 Inadequate training for sales people

 Not enough support from the manufacturers' representatives for extensive explanations and an in-store demonstration

Opportunities

 An ever expanding target market of 102 million TV watching households

 300% increase in number of families opting for luxurious electronics

 Effective demonstrations given by users to their friends and relatives

 Partnership with Sony and Phillips for product reliability and effective distribution

 Partnership with network leaders like CBS and NBC

 Working with P&G and GM on defining advertising formulae of the future

Threats

 Television viewing, a passive activity was not encouraged in households

 High turnover rate of sales people in electronic stores

 Relying on hardware manufacturers for retail distribution and promotion

 Change a long ingrained human behavior on a mass scale

 The price was not well accepted due to lack of reference points

 Negative reviews of TiVo from the press and some customers

 Non-users being apprehensive about some of the features

 Few price insensitive and early adopting customers

 Intensive competition

* Replay TV by Replay Networks

 A distinctive "quickskip" function, able to time shift the recorded program by the exact length of a typical commercial

 No additional service fee

 Largely concentrated on newspaper advertising and educating sales person

 High commission for sales people due to higher price of the product

 Standardized key catchphrases, emphasizing their advantage over TiVo

* Microsoft's Ultimate TV

 Combination of electronic mail, internet surfing, interactive television as well as personal recording

* Other Competitors

 Other recording devices with cheaper prices like VCD recorder

Q2. Tivo's Target Market

Demographics

 Males being the focus but not ruling out females

 20 - 45 yr old

 Professionals

 High income earners

Psychographics

 People with unpredictable work schedules

 Innovative technology lovers

 People who prefer convenience over high price

Behaviourial

 Non-users with a positive