Professional Solutions

Jennifer ArrighieNicholas CeloneCharles HoseaSean Owens

Antonella PiccirilloKaren Votto

What is Tivo?

       TiVo is a digital video recorder (DVR), which empowers the TV viewer with a

variety of functions, ultimately allowing them to obtain their ideal viewing at any time. 

Life before TiVo was quit different as compared to nowadays with TiVo. The basic idea

behind TiVo was that it would take control away from the networks and put it directly

into the hands of the consumer.  To attract more and more consumers the TiVo service

provided their viewers with various useful features.  In order for the TiVo service to work

effective and efficiently all that was required was a connection to a telephone line, thus

allowing the consumer to download at any time they wanted.  TiVo offers a variety of

special features one very popular one is the season pass, this allows users to specify their

favorite show, so that TiVo would automatically record the specified program.  TiVo also

comes equipped with a remote control with thumbs up and thumbs down buttons, which

would indicate how much consumers enjoyed what they were watching and if the service

was effective and efficient.  TiVo works to meet the needs and wants of every type of

consumer.  According to an independent study, 62% of TiVo owners watched more TV

with the service than without, and 31%of the owners said that TV was their primary

source of entertainment compared to before the purchase of TiVo!

  Situational Analysis

Company and Product History

      TiVo founders Jim Barton and Michael Ramsay were the creators of TiVo.  Jim and

Michael were employed at Silicon Graphics a leading company in software when in 1997

they came up with this innovative idea to create a home networking system.  The device

that they worked to create was composed of a fast improving hard disk technology, in

which the device would provide an easy-to-use interface between the channel lineup and

what people would actually want to watch on their TV.  When finally completed the

physical TiVo unit in 1999 it was a set-top box that interfaced between the broadcast feed

and the television.  To ensure product effectiveness Jim and Michael created a

partnership with top of the line brands such as Sony and Philips.  This would help to

distribute TiVo in many leading chain stores in which would enable easier access to the

consumer.

Product analysis and evaluation:

TiVo is a Digital Video Recorder (DVR) that comes with a service that allows its

users to watch whatever channel they choose whenever they want to. TiVo comes with a

remote control, which allows its customers to pause live TV as well as fast-forward and

rewind it, just as if they were using a VCR or DVD player. There is also a function that

allows the user to specify their favorite TV shows and TiVo will automatically record all

episodes of that particular program without having to manually do it your self each and

every time. There is also a feature that helps both TiVo as a company and the consumer,

and that is the “thumbs up, thumbs down keys” on the remote control. This feature let’s

the users indicate which shows they like and don’t like. TiVo takes that information into

consideration and will record TV shows that you have pointed out as being quality

programming. TiVo can record up to 30 hours of TV programming at one time, and also

has the ability to record two shows at once. TiVo is currently offered at two different

price levels: $250 for the 40-hour version and $350 for the mind-blowing 80-hour

version. Those are the given prices for the TiVo DVR unit itself with a 40-hour

maximum hard drive and 80-hour maximum hard drive, respectively. Those prices do

not include the monthly service charge of $12.95 per month.

Identification of principle target markets and consumer behavior:

We feel that TiVo is best suited for: People who are comfortable with new

technology, people who like owning the newest and latest gadgets (“keeping up with the

Jones” theory), people with substantial disposable income, people who are serious TV

viewers, specific category and product viewers, and finally time conscious viewers.

Specific category viewers refers to those TV viewers with a specific interest, for

example, sports fans who may want to record all major sporting events, or someone who

is interested in a certain hobby or has unique interests may want TiVo to record all

programs relating to their particular interest or hobby. Specific program viewers refers to

those TV viewers who may like to watch a particular series of shows, for example,

“Friends” on NBC or “NYPD Blue” on ABC. Time conscious viewers refers to those

busy professionals who might not have the time to watch TV and like the convenience of

being able to watch the programming of their choice at a time of their choosing.

Competitive situation and evaluation:

TiVo’s first major competitor came from ReplayTV, which was started by The

Replay Networks Company back in August 1997 by a Star Trek fan who, believe it or

not, wanted a way to record every Star Trek episode automatically, whenever they should

air. ReplayTV started national distribution as early as April 2000, after it signed a

contract with Panasonic to build and market their units. ReplayTV was very similar to

TiVo, but did have a few unique differences. One feature found on ReplayTV which you

will not see on TiVo, is a distinctive button marked “Quickskip.” “Quickskip” was able

to time shift the recorded program by exactly 30 seconds, which is usually the length of

your average commercial. The other major difference between the two, lies in the

pricing. The price of a ReplayTV unit is $200 higher than TiVo’s unit, but that is

because there is no monthly fee. The service was included in the price, without requiring

any other additional fees.

TiVo’s main competitor came in March of 2000, when Microsoft introduced a

device called UltimateTV. Right off the bat, Microsoft has the advantage of name

recognition. People will instantly assume it is a quality product just because of the

manufacturer, and this is very important when a consumer is considering purchasing

something brand new to the market. UltimateTV has all of the benefits of TiVo and

ReplayTV and even some of its own unique selling points. UltimateTV comes with

access to WebTV, which is basically the ability to use the Internet through your TV. It

also offers DirectTV and UltimateTV as a bundle package, which is never a bad idea to

introduce a new product with an already proven successful one. DirectTV is your typical

digital satellite provider, which gives you digital quality feeds (generally 225 channels)

instead of your standard cable provider with only about 100 channels. The only real

downside to this unit is that it somewhat more expensive and rather complex and can

even be complicated at times.

Marketing Goals

The first of our marketing goals is to have a catchy communication campaign. We

want to able to get the TiVo name out there and to have people remember it. To do so, we

have to pick the correct media, with a big reach. Not only will this media reach our target

audience, but it will also reach the consumers out of the target that could potentially be a

consumer of TiVo.

The next goal is to provide product bundling with a satellite TV receiver. This

will allow our potential buyers to have an option as well as potential satellite television

buyers. This will allow TiVo to appeal to those consumers who have been contemplating

a purchase of satellite television. Satellite television provides numerous channels to its

subscribers and someone’s favorite shows may be on at simultaneous times. TiVo will be

an added benefit because of the ability to record shows while you are watching another

program. Buying in a bundle will essentially provide a lower cost to the consumer as

well. Buying two products at one low price, rather than two separate products at a high

cost for each will draw to its appeal.

Aggressive pricing is yet another one of our marketing goals. We believe that the

prices that you have on the market at this time seem to be reasonable and should stay that

way, having an innovative system that is at high quality and less expensive than its

competitors is the best way to go. With the correct advertising, we can show that just

because our product is less costly than our competitors, does not mean that we have a

lower quality.

Our final marketing goal is sales support. We believe with the best sales team

around will be able to sell the product. If a sales person at one of the chains that sells our

product, such as Best Buy, knows all the features and how the product works the better

they will feel about selling the best possible product to the consumer. To achieve this we

will send training videos to all of our distributors that explain the features of the TiVo,

how they are used, and also their benefits. We will also provide demonstration models

that can be set up in the stores so that our potential consumers will have a full

understanding of TiVo before they actually purchase it.

Overall Communications Objectives

What we, at Professional Solutions, want to achieve is to improve TiVo’s brand

image, essentially as a “must have” product. We want our target market to believe that

this product will make their lives easier. With having the ability to record television

shows that the want to watch and being able to watch those programs at their

convenience, they can feel the sense of control. They do not need to rush their everyday

errands and activities to sit down and watch their favorite TV show, they can watch TV at

their convenience.

We also, want to increase product awareness to the ideal market segment. Getting

the name TiVo, it’s features, and its benefits so consumers can receive some type of

understanding of the product to get them to go out and check the product out. To achieve

this we will be using multimedia, sales promotions, and event promotions. This way are

name is recognized and understood.

Our next objective is to have our potential consumer be involved in the

purchasing process. We plan to make this happen by providing in-store demonstrations

where the consumer will be able to interact one on one with TiVo and have an

understanding of how the product works before they make their purchase. Also, they can

choose how they want to pay for the service, if they want to pay for the first month at

purchase, if they want to pay so many months up front, or if they want to pay for the

service when the bill comes. This way they do not have to feel the pressure to pay for the

service at the time of purchase.

Finally, we want to increase the consumers’ knowledge about TiVo. This, as

discussed earlier, will be achieved with the use of in-store demonstrations. Also, our ads

will also have some of the attributes mentioned, but will have the website mentioned in

every one of them. Having the web site known, the consumer can log on and they can

find out all the information they need to know, and if any questions may occur they can

e-mail your customer service representatives.

Budget

Based on your previous advertising budgets, we have set ours to $7.5 million.

Appendix A and B gives you our budget completely outlined as to how much we will

spend on each type of media. It also shows where we plan to place our ads and when. We

have also asked for an increase in our budget if you feel as we feel as though it will be

very profitable to TiVo’s business.

Basic Problems

The current advertisements that TiVo have been displaying put too much

emphasis on describing the various functions that the product is capable of. They have

engaged in providing informational appeals to the market at a greater extent than needed.

Such informational appeals only reinforce the basic features that TiVo can provide for the

consumer and we see a huge problem with this method. TiVo needs to approach the

market in a different way, explaining that this product can and will be the premier digital

video recorder while staying away from the old approach in terms of simply explaining

its vast advantages when it comes to recording programs at any time. These passé

informational ads don’t promote the more significant dynamic aspects of the new DVR

product category. Consumers are confused about these new devices, which deters them

from being interested and involved in the purchase process. Promoting the significance

of the DVR product category is the best way to rectify this. Taking advantage of such an

approach will distance it from competitors, as TiVo will vigorously position itself as the

leading DVR unit available on the market.

Advertising Objectives

The primary objective that we face is recreating the product identity and brand

image that TiVo currently holds. Some ways that we can stimulate interest in the eyes of

the consumer is by raising consumers’ curiosity in order to get them more involved in

understanding the product itself and simultaneously promoting the user-friendly aspects

of the device. This user-friendly image will be achieved through subtle demonstrations

displayed in various media vehicles that will show just how effortless it is to use. We

also need to set objectives that will differentiate the TiVo brand from competitors. This

will be accomplished by being the foremost promoter of the DVR product category, in

conjunction with the use of emotional appeals in our ads. The purpose for this is to

solidify TiVo as the household name for DVR systems and create a fond brand image.

Major Selling Idea

We will attack the market in terms of promoting TiVo as “The Next Big Thing”.

By structuring our advertisements around a bold and intriguing creative ad campaign,

TiVo will reach consumers and instill the feeling that this is a must have product. We

need to once again focus on the “big picture”: the significance of the overall product in

terms of implications for changing and improving the TV experience. We envision and

will promote this product so that everyone with a TV can benefit from the features TiVo

offers.

Target Audience Description

The target market that we have chosen is purposely broad: individuals who own

or watch television. The market that have selected lacks segmentation because we feel

that TiVo can enhance the lifestyle of any individual who has a TV, regardless of

demographic description. We chose to target individuals of all races, within an age range

from 18 to 54. We also tended to target individuals where household income was greater

than 25,000. We feel that TiVo is priced at a relatively convenient level so that many

individuals are capable of purchasing the product if they garner an affinity for it.

Creative Strategy Statement

In order to promote TiVo and the DVR product category simultaneously, we at

Professional Solutions have created “The Television Evolution/Revolution” campaign

theme. The primary objective here is to create a feeling of excitement and intrigue about

TiVo by ingenuously advertising it as the newest and hottest essential part of consumer’s

home entertainment system. The “Evolution/Revolution” theme is a perfect way to

portray this, as it not only alludes to the enhancement of the television viewing

experience from it’s conventional state but also calls consumers to action by enticing

them to join “the revolution”. Embodied in this theme will be the product’s unique

selling proposition: TiVo offers viewers the definitive, unparalleled TV viewing

experience of the 21st Century. This proposal is completely supported by the products

lucrative benefits of convenience, computer intelligence and interactive capabilities,

which we intend to promote more extensively as consumers interest increases.

TiVo’s first strategic objective during the inception of the campaign will be to

generate an exhilarating feeling of curiosity and intrigue by implementing teaser ads.

These will appear in the form of 15-second TV spots as well as outdoor, newspaper and

magazine ads, all of which will promote the TiVo website and encompass a correlating

“Evolution/Revolution” theme that will climax during the 30-second Super Bowl spot in

February. One of the crucial benefits of this approach is that these ads will replace the

confusion surrounding TiVo’s with fascination. This increased curiosity will spur

consumers to become more involved in the product, provoking them to inquire about

TiVo to trusted early adopters and to the website, which already contains numerous

testimonials from satisfied TiVo users. All of the ads during the initial stages and

throughout the campaign will clearly display the TiVo website so that consumers will be

directed to the best place to become informed on this remarkable DVR device.

Ultimately, potential buyers during this stage will learn of TiVo’s attributes through their

own involvement and through the psychosocial effects of other’s benefiting from it.

This social aspect, which represents consumers’ need to be modernistic, or to

“keep up with the Jones”, will be the basis for our use of emotional appeals in our

advertisements. By relating to consumer’s social and psychological desires, these ads

will leave a more memorable impression than the previous informational appeals that

TiVo has portrayed.

As the campaign progresses, the print and TV ads will begin to integrate functional

appeals with the established emotional appeals. Print ads will especially promote TiVo’s

various features, while TV spots will take a more subtle approach in demonstrating it’s

functions and how easy it is to use. These ads will focus on the new experience provided

to users by TiVo’s features and will be rolled out during the latter portion of the

campaign to resolve the initial curiosity established during the launch.

Assorted execution techniques will be utilized during this phase. Some these ads

will incorporate a fantasy technique to depict the “Evolutionary/Revolutionary” theme by

showing viewers a “not so distant future” and possible future with all types of TV

viewers enjoying the benefits of TiVo. A similar commercial concept is to show the

evolution of home entertainment products and the social implications they presented,

depicting TiVo as the next step.

A combination of humor, demonstration and slice of death techniques will be

used to target consumers in the sports fan markets. These TV ads will humorously

portray two sports fans, one of which is using TiVo to record multiple sporting events

and replay big plays, while the non-user becomes jealous because he doesn’t have one.

This TV spot will boast the amusing aspects of humor with subtle product demonstrations

by way of the TiVo user, as well as implement a slice of death technique, which is

represented by the disgruntled non-user. This formula for TV spots will not only be used

to target sports fans, but for viewers of various TV shows and genres.

Supportive Information

This is the premiere creative strategy for marketing TiVo. Due to the confusion

and subsequent lack of interest currently experienced by potential consumers, the

product’s sales and popularity are severely under realized. The “TV Evolution/

Revolution” campaign that we have created is not only aimed at alleviating confusion,

but will primarily focus on stimulating interest and involvement in our target markets.

The most important factor in accomplishing this is to promote the DVR product category,

with TiVo as the flagship console for this market. The campaign theme that we are

proposing is perfect for such an endeavor, as it enables advertisements to prey on

consumer’s constant desire for uniquely beneficial products and the social factors that

have a significant influence on purchase decisions.

Media Recommendations

In connection with the “Creative Recommendations,” Professional Solutions, Inc.

feels that TiVo, Inc. needs fresh, new innovative media recommendations to correlate

into the newly planned integrated marketing communications program, carefully planned

by our company. In the process, we first defined the key media problems TiVo, Inc. is

currently experiencing:

Key Media Problems:

1. Media vehicles that are being used aren’t successfully influencing potential

consumers.

2. Ad Blitz is not providing effective exposure.

3. Timing of ad releases are not coordinated strategically.

Media vehicles that are being used aren’t successfully influencing potential

consumers. What we mean here is that, TiVo’s current advertisements, such as television

commercials and print ads, are not successfully generating interest in the product. We

also felt that, Ad Blitz is not providing effective exposure. Professional Solution realizes

that all of the different types of advertisements being used currently are not reaching the

target audience effectively. Finally, the last key media problem that we found to be very

important was, Timing of ad releases are not coordinated strategically. Here we are just

simply expressing that since the initial launch of TiVo there has not been any

promotional efforts to attempt or spur up the acceptance of the DVR product category.

All of the different types of ads have not worked together to effectively generate a desire

or curiosity for TiVo. Our company felt these important issues had to be addressed

before further expressing our media recommendations.

Professional Solutions’ goal is to effectively reach potential customers,

our integrated marketing communications plan we help us do so. Before we get into the

kinds of media we also would like set new objectives that will reach your target market.

Media Objectives:

1. Reach more potential consumers through initial media blitz.

Our company’s goal is to immediately catch the eye of the consumer. We want to

this by various methods and media mixes. From the initial start of our launch, we want to

use intense media strategies that will initiate the campaign. Which will be further

discussed below.

2. Maintain a high frequency rate of exposure to multiple ads.

We want to hit consumer and potential consumers with a variety of media to

increase exposure. With our different kinds/variety that is integrated in our plan, we feel

we are giving TiVo a satisfactory amount of exposure opportunities.

3. Vary the use of advertising vehicles within the 12 month period

Our Company also feels that by varying the types of media we are using, we can

keep the image of fresh intriguing content which will avoid wear out to customers.

4. Obtain exposure through aggressive campaign.

Finally, we want to raise awareness of everyone with a television set.

Media Strategy

Our media strategy will consist of these basic elements:

TV Commercials

Sunday Newspapers

Outdoor Billboards

Support Media

Television commercials: were the first ideas we though would be a great way to

get the name “TiVo” out to the public. The major idea behind this is that we want

to hit all major networks, such as ESPN, CBS, NBC, ABC and so on. We want to

begin our campaign with 15 January “teasers” leading up to the Super Bowl. We

want the public to anticipate and look for, the commercial at the Super Bowl.

With the intention of being the “next big thing” that people will talk about after

the Super Bowl.

The academy awards is another idea that our company felt would be a

great opportunity exposure for TiVo. It is a widely watched program that will

benefit form press coverage of popular commercials during the event. The final

idea that has to do with TV commercials is sporting events/season. During

sporting events we will execute our ads in the climax of the basketball season

(spring), baseball season (fall), as well as the start of the football season and the

start of the NBA. Hitting all the major sports and season will also be a great

opportunity for wide exposure.

Sunday Newspapers: we will have a 6 inch, black and white ad that will

consist of pulsing: 1 ad per month but 2 ads in the month of:

January

March

August

September

November

December

We chose these months to have 2 ads because in January, it is the beginning of

our launch and we want spread awareness. We also choose, March and August mainly

because it is the start of the sports season. We chose September because it is the

beginning of the fall TV season, November and December because it is the Christmas

season. All of these months will have tremendous opportunity for great exposure.

We also want to touch on many different geographical areas, so we picked

newspapers such as:

Washington Post

New York Times

Boston Globe

LA Times

San Fran Chronicle &

Chicago Tribune

Magazines: Pulsing Technique

       - Heavy exposure at:

             - Campaign introduction

             - Sports Season Introduction/Climax

             - Fall TV Season

       - Sports Illustrated

       - Maxim

       - Sound & Vision

       - Time

       - Soap Opera Digest

       -Entertainment Weekly

       -TV Guide

Outdoor/Billboards

       -New York (Time Square)

             - November, December

       - Boston

             - January, August, November, December

       - South Carolina

             January, February, March, December

       -Chicago

             - January, March, November, December

      - Orlando

             January, November, December

- Support Media

       - Conventional/Retail Kiosks

       - Transit

Promotional Products

       - T-Shirts with catchy slogans

Movie/TV Placement

       - Sopranos episode

      - Time Travel/Future Based Movies

See Appendix C and D for Charts

Promotional Element Recommendations

One of the promotional elements that we believe in using is sales promotion. With

sales promotions TiVo can provide rebates/refunds to the consumer at the time of their

purchase. If the TiVo is purchases the consumer can send in a $50 rebate with the proof

of purchase, and within a certain amount of time, the $50 will be sent to their homes.

Contests and sweepstakes will also be used to target some of specific markets. For

example, to target our male sports fan, we could provide a contest on-line during March

Madness. There would be a link on the TiVo website to have the consumer fill out the

March Madness bracket. The person that has all the games correct will win a free TiVo,

and the two runners up can receive a $50 – 75 coupon that they can print off their

computer so they will not have to wait for the coupon to be sent through the mail.

Another part of sales promotions is “free” premiums. If the consumer purchases TiVo

during a certain time frame they will receive the first three months of service for free.

This would be the time frame in which the customer is learning the basic functions and

adapting to the new technology. The consumer does not have to worry about paying for a

service that they are learning how to use.

Another promotional element we plan to use is Cyber Marketing. This will be

targeted to our technologically advanced market. This includes the TiVo website, where

the consumer is provided the information they need to know about TiVo. At the website,

the consumer can sign up to have newsletters sent to them about upcoming changes, and

benefits. Also we will have web banners on other sites and pop-ups, although they cause

frustration the name will bound to be noticed.

The next promotional element is Publicity and Public relations. Through the use

of press releases and press conferences we can get the good word out about TiVo. To do

this we can announce any new features that will be added, and if there are any changes

being made. Also, if there are any problems encountered what is TiVo doing to fix it to

make their customers happy. This will not only keep your current customers happy, but

will also attract new one’s, showing that TiVo is concerned and is there for the

customers.

Finally, there are event promotions. Sponsoring sports events will allow us to

have banners with the TiVo name on them and be shown to the arena and on national

television. The use of contests will also be used at sporting events. As an example, at a

basketball game we can draw a seat number and that person will have to shoot from a

certain point on the court. If the basket is made, they win a TiVo, if not, then they will

receive a coupon for one. TiVo can also get recognition through the use of sponsoring

charities, whether it is a dinner or a golf tournament, all proceeds go to a local charity,

this way TiVo receives good publicity. Finally, we plan on attending special interest

conventions, such as television, movies, and Star Trek. A TiVo booth will be set up

where we can pass out t-shirt, key chains, and pens, to provide long-term recognition.

Pamphlets can be handed out with valuable information about TiVo and how it works.

Also, we will set up demonstrations so people at the convention can learn how to use the

product. All people that come to the booth can sign up for a contest, where, at the end of

the convention a name will be drawn, for one lucky person to win TiVo.

We, at Professional Solutions, believe that through the use of our media vehicles,

a sure profit will be shown and all confusion about TiVo will be swept away.

Evaluation

Several evaluation strategies will be implemented throughout the campaign in

order to gauge its effectiveness. The first and most frequent will be brief online surveys

that will be located at the website and at numerous other sites that contain TiVo ads. This

form of marketing research will prove to be quite significant during the launch of the

campaign, as it will monitor the success of our creative strategy and consumer’s reactions

to it, as well as the impact on brand image. These survey’s will change throughout the

course of the campaign in order to determine consumer’s response to our promotional

efforts at various times. Survey questions regarding the Super Bowl and Academy

Awards advertisements will be added during those respective time periods in order to

assess their popularity and effectiveness.

The amount of visitors to the website will also be observed, especially during the

initial six months of the campaign. This will provide indications for whether or not those

consumers being exposed to our ads are becoming more involved in learning about TiVo.

The website will also be monitored for increases in online order placement in order to

detect correlations between advertising exposure and immediacy of purchase

Quarterly sales will also be monitored to evaluate the direct success of the

campaign at different periods. Such information will allow us to see if our ads are raising

levels of curiosity and product involvement among potential consumers. If sales spike

during a certain period it may provide positive implications for the various media

vehicles implemented during that time. Annual sales figures will also be evaluated in

order to determine the overall success of the campaign.

Appendix A

Appendix B

Appendix C

Appendix D