Apple TV vs Western Digital TVMarketing Strategies Analysis

Group 8Yamen NanneSandra Godinez SainzTheresa Yu WangMicael DawleyIvan Velazquez

Product Definition

Streaming Media Player (SMP)– An internet connected digital device that

allows you to utilize Web-to-TV or Over The Top (OTT) Video Services to watch streaming media content

– SMPs also allow you to use your home network to view existing videos, pictures, and audio files directly on your TV

Web-to-TV Services & Applications

Market Outlook

Financial Projections– By 2016 OTT Services US$ 20 billion in revenue– US TV download revenue will triple between 2012 and

2015– In 2011, unit shipments of SMPs were approximately 8

million ($800 Million at $100 / Unit) – 12 Million units projected for 2012 & 73 Million units by

2016

Customer Analysis

• Secondary Data using User Reviews & Comments– Amazon Reviews, Various Web Forums & Websites

• Focus Group w/ Friends and Colleagues– Get a feeling of driving factor for customer choice

• Web Based Survey (Qualtrics)– See if there is link between Brand Loyalty and Purchasing Choice– Customers’ perception about the brand’s market strategy– Understand who would recommend the product based on brand

awareness– What is the UnMet need is for streaming media players

Secondary Data: User ReviewsAmazon

WD TV Live

Apple TV

Best Buy

WD TV Live

Apple TV

ForumsApple TV

• Pros– Ease of Use– “The beauty of ATV is the

interface”– Connectivity (mirroring)

to other Apple Products (ecosystem)

• Cons– It’s “Apple’s Way, or the

Highway”– Slow loading/ buffering

time– Loses video quality

WD TV Live

• Pros– Ease of Use– “Stream nearly every

video file format”– Great picture quality

• Cons– Interface is not as

“snazzy” as Apple TV’s– Slow loading/ buffering

time– Will not play protected

iTunes Store content

Magazine Reviews

• Apple TV– “Best Solution

for Apple Fans”– “If you’re a die-

hard Apple aficionado, Apple TV may be the better choice”

• WD TV Live– “Best Solution

for hard-core tech geeks”

– “For that consumer (tech enthusiast), the best choice we’ve seen to date is the WD TV Live”

Apple TV Focus Group• Why did you buy Apple?

– Ease of use, own other Apple products, quality, physical appearance, brand loyalty, etc.

• Why did you not buy other brands?– Were not aware of other streaming media

players, did not trust them, etc.• Have you heard of WD TV Live? Most said No• What can WD do to encourage switching?

– All answered: More advertising, “put themselves out there with Apple”, “cannot compare if we are not familiar with their products”

• Technology aside, why Apple and not WD?

74 Respondants86% said they were average - very knowledgeable.

Age73% of respondants were within the ages of 24 - 39

Qualtrics Survey Demographics

Annual Household Income

Do you own an Apple Product?84% - Yes 2.65 Products on Average

Qualtrics Survey Results

Do you own a WD Product?50% - Yes 1.97 Products on Average

How did you hear about Apple?

What Feature or Quality Do You like The Most about Apple ?

How did you hear about WD?

What Feature or Quality Do You like The Most about WD?

Qualtrics Survey Results

How Likely Are you to Recommend Apple Products to Others?

In evaluating Apple's competitive position, they are: In evaluating Western Digital competitive position, they are:

How Likely Are you to Recommend WD Products to Others?

Qualtrics Survey Results

Which of the following streaming media players do you own?

Do you own a streaming media player (SMP)?

Which of the following streaming media players would you be most likely to buy?

Product Evolution

• From a few start ups to a broad rage of Device Manufactures

• Constantly Evolving technology

• Introduction of Internet connectivity

• Increased performance

• Lower Prices

Performance

Price

Conne

ctiv

ity

• Wireless connectivity• Better resolution• Better sound• Smaller size and larger capacity• Compatibility w/ current

technology• Creating the “Entertainment Hub”

Evolution of SMP Technology

Industry Evolution

VS.

• Entrance of video game consoles, Blu ray players and networked DTV’s that support web-to TV video and other services

3M’s of Apple TV & WD TV Live Advertising Analysis

• Mission– Apple TV & WD TV Live

• Informative advertising (“SMP” new product category) – Released 1st gen 01/07 vs 10/08

• Apple TV units poised for growth – 50% of 2011 total units sold @2.8 mil; 1.4 million units Q1 2012 –wikipedia great/informative

http://en.wikipedia.org/wiki/Apple_TV• WD grade D at best: cold feet

http://en.wikipedia.org/wiki/WD_TV• Message

– Apple TV – single message aligned with their products• Big-time entertainment. One small box.

– WD – WW/CF-M grassrootish, NOT PRIMETIME – NEED single message multiple meanings

• Entertainment your way• Channel You• Bring your life to life – WD Hub

• Apple TV• Apple provides a YouTube video of AppleTV

– http://www.youtube.com/watch?v=1HpHyMQR058

• WD TV Live – Need to be as proactive as resellers• You Tube channel, “Channel You” few hits - WWM• Rely mostly on reseller videos & 3rd party product

reviews

WD TV Advertising

Channel You Campaign

http://www.youtube.com/watch?v=hb6jeoLEakY

Apple Tv AdvertisingPromos

Apple communicates its features and benefits: stream data vs. flawlessly elevate your entertainment experience with options plus it connects two other Apple products: Mac and iPod with the TV. -DATED

http://www.youtube.com/watch?v=1HpHyMQR058

Media- Advertisement is mostly through their proprietary

website’s with the small addition of - Place Advertisement in particularly Point of

Purchase- Product comparison editorial/"Buyers Guide” –

FOIPAh (Fix our image pronto, amigo)http://news.cnet.com/8301-17938_105-20025670-1/which-streaming-media-device-is-right-for-you/

Interpretation - way down on the list & recommend the competitors

"Who shouldn't buy it? If you don't have a hard drive full of your own (non-iTunes) movie and music files, opt instead for the Roku or Apple TV .....”

Harsh review for WD and they didn't show a WD product on the main picture. They only showed Apple TV and Roku (HD&LT). 

Other Promotions

• WD uses 3rd party marketing– Co-marketing arrangements with other companies –

• Newegg on WD TV Live Streaming Media Player $20 off with promo code EMCNEHE64 – D’ing value range, Wishy, washy (consumer has to hunt for a good deal)

• Apple at best– Discounts Refurbished units which you may by,

availability dependent, on their website

S.W.O.T.

Replace video

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Increase brand awareness and market share

Strengths Weaknesses

Opportunities • Popular and unique services

• Personal cloud• Video game

console• In house

manufacture

• New market• Low product

awareness• Performance is

limited by other devices

Threats • Evolving technology

• Competing services

• Smart TV

• Competitors are more specialized

Industry Opportunity

• WD TV Live– Form an alliance with one of the major

gaming counsels– This will allow to WD TV Live to expand

their market share– Develop an Integrated Content Marketing

Plan to Improve Brand Awareness

• Apple TV– Keep selling on the Mirroring Technology – Enter the Game Counsel Market– Apple already posses the all the

necessary components to enter this market