In 1999 TiVo was preparing to launch its digital video recorder (DVR) in the United States. The company's goal was ambitious: it hoped to revolutionize how Americans watched television and to become a central player in the emerging interactive TV industry.
Although it had a technological advantage, TiVo faced one competitor (ReplayTV) and potential entrants such as Microsoft, so its success was far from guaranteed. Evidence suggested a bright future for the company, however; the concept had attracted $240 million in venture capital, and market research indicated a uniquely high level of consumer interest.
TiVo needed to capture the first-mover advantage and build its sales and brand as quickly as possible to support the company's IPO, which was planned to take place within eighteen to twenty-four months. TiVo's positioning at launch would play a key role in determining its success.
After analyzing and discussing the case, students should be able to:
Use analogies appropriately to forecast demand
Use various marketing research techniques to make appropriate inferences about the challenges to consumer adoption of an innovative product
Develop multiple frames of reference and discuss the merits of each
Develop multiple points of difference and discuss the merits of each
Develop multiple positioning statements and discuss the merits of each
