Upload
marian-haynes
View
213
Download
1
Embed Size (px)
Citation preview
Pepperdine University:Graziadio School of Business & Management
B2E: Marketing Plan Mid-point Meeting
Team:
Go Nuts!Angela Copeland, Tim Fischer, Dustin Stollberg,
Sabrina Yuan
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Marketing Strategy
Time Warner Cable must meet specific objectives, strategies, product positioning, and a marketing mix
TWC must increase the usage in both their VOD and high speed products
TWC will position themselves as the industry leader because they offer superior service, reliability, and easy to use video on demand
TWC’s focus on these objectives will help them to increase their overall share of the Los Angeles market
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Marketing Objectives
Increase the sales rate of VOD (video on demand) by 25%.
Increase net profit of VOD revenue by 50% Generate awareness of the VOD product within
target market by 25% within one year of implementation.
Increase high speed internet subscriptions among existing Time Warner Cable customers by 15%.
Reduced churn through increased VOD use and high speed internet subscriptions.
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Financial Objectives
Increase Sales revenue by 15% to $358.69MM by utilizing increased VOD buy rates and High Speed Bundling
Increase revenue per day to an average of $.98MM (358.69/365)
Limit marketing expenditures to a 2% increase of $7.14 M.
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Current Marketing Situation Customer Needs / Wants
High Quality TV, VOD, HD TV Channel Selection Digital Internet and Phone Convenience & Reliability
Trends Consolidation & Partnering Increasingly Broad Customer Demographic
Growth Static Physical Area Reduced “Churn” Rate
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
SWOT Analysis
StrengthsProduct OfferingBundling OptionOne Bill for CustomerBrand RecognitionVOD and DVR Available to All CustomersGood financial Health Compared to CompetitionNo Service ContractsNo Extra HD Equipment RequiredEquipment Does Not Have to be Purchased
WeaknessAdvertisingLack of Awareness of DVR and VOD Benefits to CustomersInability to Market to Customers Using Mass MediaPerception of Service to CustomersSatellite Has Ability to Use Mass Media for Advertising
OpportunitiesConsumer Awareness of VOD and DVR BenefitsAwareness of BundlingAwareness of Internet Phone ServiceAvailability of HD ChannelsIncreased buying power of Hispanic MarketConsumer Confidence through Excellent Customer ServiceInternet MarketingVOD Buy-rates
ThreatsSatellite Perception by Potential CustomersCompetitor PricingConsolidation and Partnerships of CompetitionCell Phone Use / Decreased Need for LandlineEntrance of Telecom into Television/Video Content MarketIncreased Free Wi-Fi Adoption Through Municipal Funding
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Target Markets
Target Markets
26.36%,
43%
27.42%,
45%
7.03%,
12% ProfessionalYoungsters
Upper-medium IncomeHouseholdBaby Boomers
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Target Markets
Professional Youngsters Individuals or couples between 20 - 34 26.36% of the population in Los Angeles
(Source: 2000 US Census) Earn ~ $50,000
Upper-Medium Income Household Persons in the age range of 35 - 54 27.42% of the population in Los Angeles
(Source: 2000 US Census) Combined annual income of greater than $80,000
Baby Boomers Persons in the age range of 55 - 64 7.03% of the population in Los Angeles
(Source: 2000 US Census) Mostly retired
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Brand Positioning
The main distinguishing feature between Cable and Satellite services is the emergence of the On-Demand feature offered by Cable
The current trend and push now is toward bundling
Competition is fierce between the three companies
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Of the consumers that have tried VOD, 50% consider themselves regular users
96% of consumers that tried FOD (Free On Demand) stayed with the VOD service
80% of VOD business is done with 20% of content New Release Movies Opportunity to shrink Store to VOD window
Source: www.cablemarketer.com
Consumer VOD Potential
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Consumer VOD Potential
VOD subscribers will grow to 15 million by 2005 and 31 million by 2008.
VOD estimated to gross $2.5 billion by 2008 VOD buy-rates grew 75% over the last year Only 25% of consumers with VOD access
have used the service Huge Growth Potential
Source: www.cablemarketer.com
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Promotions In Store Events:
Partner with Best Buy or other electronics retailers to give out free VOD coupons for TV purchase
Sampling: Free VOD movie passes Free VOD pass every month with bundle signup Buy five VOD movies, get one free
Events: Set up monthly VOD & Internet information sessions for
customers to attend Discounts:
Incentive Programs Give price breaks to young professionals
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Implementation – Short Term
Date Activity Target Market StepsSummer 2005 Distribute free VOD coupons All customers Get Studios to buy
into this promotionSummer 2005 Include free VOD coupons in Bills All customers Get studios to buy
into this promotionSummer 2005 Offer Discount Coupons for VOD All customers Get studios to buy
into this promotionSummer 2005 Include package deal ads in bills All customers Develop ads;
Distribute ads to TWC customers
Summer 2005 Expand VOD promotion on TWC channel
All customers Develop promotion; schedule promotion
Summer 2005 Promote Children’s VOD movies for children on summer vacation
Families within target market
Obtain lists of families within target market
Summer 2005 Addition of Spanish VOD channels Hispanic customers
Coordinate with Spanish studios to diversify VOD offering
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Implementation – Long Term
Date Activity Target Market StepsSummer 2005 to Summer 2006
Send out periodic reminder fliers with information to use VOD
All customers Develop ads; Distribute ads to TWC customers
Summer 2005 to Summer 2006
Call customers to survey them on their understanding of VOD and any additional information that would encourage them to increase their use
Customers in the target market who have used VOD in the past year
Obtain calling list of VOD users; schedule call center calling; implement calls
Summer 2006 forward
Utilize feedback gained from customer surveys to implement further marketing activities
All customers Analyze customer feedback gained above; Develop strategy based on feedback to increase VOD usage
MBAM 615.12 : Marketing Management Go Nuts!
Spring 2005
Pepperdine University:Graziadio School of Business & Management
Questions?