B 2 E Marketing Plan Mid-point Meeting Team

B 2 E: Marketing Plan Mid-point Meeting Team: Go Nuts! Angela Copeland, Tim Fischer, Dustin Stollberg, Sabrina Yuan Pepperdine University: Graziadio School of Business & Management

Marketing Strategy n n 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 Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Marketing Objectives n n n 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. Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Financial Objectives n Increase Sales revenue by 15% to $358. 69 MM by utilizing increased VOD buy rates and High Speed Bundling n Increase revenue per day to an average of $. 98 MM (358. 69/365) n Limit marketing expenditures to a 2% increase of $7. 14 M. Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Current Marketing Situation n Customer Needs / Wants n High Quality TV, VOD, HD TV n Channel Selection n Digital Internet and Phone n Convenience & Reliability n Trends n Consolidation & Partnering n Increasingly Broad Customer Demographic n Growth n Static Physical Area n Reduced “Churn” Rate Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

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 Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Target Markets 7. 03%, 12% 26. 36%, 43% 27. 42%, 45% Pepperdine University: Graziadio School of Business & Management Professional Youngsters Upper-medium Income Household Baby Boomers MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Target Markets n Professional Youngsters n n n Individuals or couples between 20 - 34 26. 36% of the population in Los Angeles (Source: 2000 US Census) Earn ~ $50, 000 n Upper-Medium Income Household n n n 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 n Baby Boomers n n n Pepperdine University: Graziadio School of Business & Management Persons in the age range of 55 - 64 7. 03% of the population in Los Angeles (Source: 2000 US Census) Mostly retired MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Brand Positioning n The main distinguishing feature between Cable and Satellite services is the emergence of the On-Demand feature offered by Cable n The current trend and push now is toward bundling n Competition is fierce between the three companies Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Consumer VOD Potential n Of the consumers that have tried VOD, 50% consider themselves regular users n 96% of consumers that tried FOD (Free On Demand) stayed with the VOD service n 80% of VOD business is done with 20% of content New Release Movies n Opportunity to shrink Store to VOD window n Source: www. cablemarketer. com Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Consumer VOD Potential n VOD subscribers will grow to 15 million by 2005 and 31 million by 2008. n VOD estimated to gross $2. 5 billion by 2008 n VOD buy-rates grew 75% over the last year n Only 25% of consumers with VOD access have used the service n Huge Growth Potential Source: www. cablemarketer. com Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Promotions n In Store Events: Partner with Best Buy or other electronics retailers to give out free VOD coupons for TV purchase n Sampling: n Free VOD movie passes n Free VOD pass every month with bundle signup n Buy five VOD movies, get one free n Events: n Set up monthly VOD & Internet information sessions for customers to attend n Discounts: n Incentive Programs n Give price breaks to young professionals n Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Implementation – Short Term Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Implementation – Long Term Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005

Questions? Pepperdine University: Graziadio School of Business & Management MBAM 615. 12 : Marketing Management Go Nuts! Spring 2005