Analysis on Existing Positioning

Analysis on Existing Positioning

In general, it would take more than what TiVo has implemented to change consumers' viewing habits. Ineffective positioning has led to inadequate perceived risk of purchase, an expensive product, and low diversified customer profile. All of these ultimately widen the chasm between the early adopters and the early majority.

While not providing substantial unprecedented benefits, TiVo attempted to potentially create an entirely new consumers behavior. Although Innovators and Early Adapters (mostly consisting of technology enthusiasts and visionaries) could adopt the product, the Early Majority (pragmatists) found the risk of change unjustified in comparison with the perceived benefits. That means pragmatists (who favor revolution) does not consider visionaries (who favor evolution) a good reference of product experience, which results in 0.04% market penetration.

Also, TiVo could not eliminate early majority's skepticism on taking action and making purchase. While current users' feedbacks reflected high level of commitment and satisfaction, the nonusers still hold opinions that concerned the products' unique selling point and the company's attempts to package viewing habits for resale. Consumers still have to pay for subscription fees which were comparably higher than that on cable bills.

As the majority of TiVo subscribers includes middle aged consumers, high income families and married couples, it misses out on the young or elderly, the low or middle income families, and singled individuals. The lack of awareness to these target segments is also the main reason for surprising lower-than-estimated number of subscribers.

New Positioning Strategy

In order to fully take advantage of TiVo's opportunity in creating an entirely new product category, the company should develop the product to fit