1.i) The existing sound research provides the following findings: first the existence of very specific "types" of customers (which could be representative of target segments) such as single males and more recently the growing number of families with young children. Secondly TiVo customers are highly educated and affluent. Another finding is that a majority of the new customers are continuously recruited by "word of mouth" referrals rather than television advertising. Lastly, around 90% of TiVo customers are highly satisfied with the product. These findings are based on sound research practice and can be used to improve TiVo's marketing strategy.
The results from existing research suggests the challenges we are faced with today can be summarized simply as "lost sense of positioning - no clear target segment - no clear message". In regards to positioning, we have uncovered that the general market does not really understand what TiVo is or what the real benefits are: how does TiVo change my entertainment experience and was it really just a super VCR with a hefty price tag? When the product was first introduced, TiVo wanted to position it as a revolutionary tool that would empower its customer into becoming a "Network Executive" for their household by being in control of the programs they wanted to watch, and deciding when they would watch them. However as with most technology products, we found that the TiVo experience and concept was difficult to convey to its target segment ? evident in TiVo's lack of sales. Adding to this challenge, was the fact that there was no uniform way that TiVo was being presented or sold in retail stores like Best Buy; existing research showed that some sales representatives sa ...