Pepperdine University: Graziadio School of Business & Management B2E: Marketing Plan Mid-point Meeting Team: Go Nuts! Angela Copeland, Tim Fischer, Dustin

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


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


Spring 2005


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.


Spring 2005


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.


Spring 2005


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


Spring 2005


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


Spring 2005


Target Markets

Target Markets

26.36%,

43%

27.42%,

45%

7.03%,

12% ProfessionalYoungsters

Upper-medium IncomeHouseholdBaby Boomers


Spring 2005


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


Spring 2005


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


Spring 2005


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


Spring 2005


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


Spring 2005


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


Spring 2005


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


Spring 2005


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


Spring 2005


Questions?

Documents

Pepperdine University: Graziadio School of Business & Management B2E: Marketing Plan Mid-point Meeting Team: Go Nuts! Angela Copeland, Tim Fischer, Dustin