1. B2E: Marketing Plan Mid-point Meeting
Team:
Go Nuts!
Angela Copeland, Tim Fischer, Dustin Stollberg, Sabrina Yuan
Part 1 – Angela
Pepperdine University:
Graziadio School of Business & Management

2. MBAM 615.12 : Marketing 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
Part 1 - Angela
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

3. MBAM 615.12 : Marketing 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.
Part 1 - Angela
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

4. MBAM 615.12 : Marketing 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.
Part 1 - Angela
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

5. 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
Part 1 - Angela
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

6. MBAM 615.12 : Marketing Management
SWOT Analysis
Strengths
Product Offering
Bundling Option
One Bill for Customer
Brand Recognition
VOD and DVR Available to All Customers
Good financial Health Compared to Competition
No Service Contracts
No Extra HD Equipment Required
Equipment Does Not Have to be Purchased
Weakness
Advertising
Lack of Awareness of DVR and VOD Benefits to Customers
Inability to Market to Customers Using Mass Media
Perception of Service to Customers
Satellite Has Ability to Use Mass Media for Advertising
Opportunities
Consumer Awareness of VOD and DVR Benefits
Awareness of Bundling
Awareness of Internet Phone Service
Availability of HD Channels
Increased buying power of Hispanic Market
Consumer Confidence through Excellent Customer Service
Internet Marketing
VOD Buy-rates
Threats
Satellite Perception by Potential Customers
Competitor Pricing
Consolidation and Partnerships of Competition
Cell Phone Use / Decreased Need for Landline
Entrance of Telecom into Television/Video Content Market
Increased Free Wi-Fi Adoption Through Municipal Funding
Part 2 - Sabrina
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

7. MBAM 615.12 : Marketing Management
Target Markets
Target Markets
26.36%,
43%
27.42%,
45%
7.03%,
12%
Professional
Youngsters
Upper-medium Income
Household
Baby Boomers
Part 2 - Sabrina
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

8. MBAM 615.12 : Marketing Management
Target Markets
Professional Youngsters
Individuals or couples between
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
27.42% of the population in Los Angeles
Combined annual income of greater than $80,000
Baby Boomers
Persons in the age range of
7.03% of the population in Los Angeles
Mostly retired
Part 2 - Sabrina
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

9. MBAM 615.12 : Marketing 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
Part 3 - Tim
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

10. Consumer VOD Potential
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:
Part 3 - Tim
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

11. 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:
Part 3 - Tim
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

12. MBAM 615.12 : Marketing 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
Part 4 - Dustin
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

13. Implementation – Short Term
Part 4 - Dustin
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

14. Implementation – Long Term
Part 4 - Dustin
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005

15. MBAM 615.12 : Marketing Management
Questions? ?
Part 4 – Dustin
Pepperdine University:
Graziadio School of Business & Management
MBAM : Marketing Management
Go Nuts!
Spring 2005