Beyond Boundaries: Leveraging No-Code Solutions for Industry Innovation
Case Study_ Tivo in Poland.doc
1. Executive Summary
Tivo in Poland
Based on past analysis of the future economic state of Poland a few key indicators helped
determine our suggested product selection.
The Gross Domestic Product has consistently been on the rise at a rate of 3.3% as of 2005
Poland’s economy stands to further benefit from entering the European Union in 2004
Women are becoming more prevalent in the workplace
Education levels are on the increase with a stronger push for Professional occupations
Polish citizens watch a considerable amount of television and many pay for premium
channels
Along with other details not as key as the ones mentioned above, the research team has
explored the idea of adding a new product genre to Poland, digital video records with Tivo.
Basic changes are needed to adapt Tivo for Polish use.
Voltage needs to be changed to 220 volts to accommodate European outlets.
Tivo boxes are large in the United States, due to smaller residences (often apartments) the
unit needs to be smaller.
Tivo programming guides need to have several points of entry, due to the low availability of
traditional land line phone service.
The initial marketing campaign will be catered towards innovators with cable only upon initial
launch. Product will be catered towards all television users within the first year. Market
penetration is based on United States forecasting goals from the original Tivo product launch.
Year 1: 2% of all Television users Year 2: 3% (5% total adoption rate by end of year 2)
Tivo marketing campaign will be based on two core messages.
“Tivo… so simple ANYONE can use it” – to eliminate the fear of new technology and to show
the ease of adapting Tivo into current lifestyle
The other marketing campaign will focus on the Tivo benefits. Which include but not limited
to:
Keep your programs forever
Digital quality picture and sound
Multiple points of accessibility to chose Tivo recording
Downloadable formats
Season Pass
Tivo will be priced based on adjustment comparisons between the United States and
Poland. Prices will be based off of original Tivo pricing in the United States.
Free unit with lifetime subscription at $194.25 (USD)
2. $7.75 monthly service fee with no contract
Unit box: $74.99 with no contract
DVD unit $199.99 (regardless of contract status)
Marketing Goals would have a strong presence in consumer electronic stores. This would
include:
Marketing Field Representatives – educate store employees on Tivo
In Store Demonstration stands – “try before you buy”
Point of Purchase (POP) materials – pocket cards and literature
Marketing funds will be heavily allocated to Television. Television is a necessary complement
product for Tivo. The marketing budget will be:
50% Television Ads
25% Marketing Field Staff
10% POP
5% Newspaper/Radio
5% Miscellaneous
Our target market will be drawn from the strongest television viewing audience, TVN.
16-49 year olds
Innovators (initially)
Urban population (i.e. Warsaw and other large cities)
Above average income
Families with children
With a strong marketing push that emphases brand awareness, user friendliness, and
competitive advantage of alternatives it is our recommendation that the Tivo product be
launched in Poland.
Johnny Schaefer
Leah Burdette
Jamie Harding
Tivo in Poland
Research and Analysis
The focus of this study is to research the idea of adding an entirely new product into Poland.
The product in question is Tivo, the original digital video recorder (DVR). Research was
conducted through a variety of sources including personal interviews. This research report will
briefly discuss a snap shot of Poland and its economy, as well as information about the
product Tivo, and the strategy for implementation. The goal of the Tivo product launch will be
to show the strong positive attributes over its outdated competition.
3. Poland is a republic located in central Europe. Recently as of 2004 a member of the
European Union, Poland’s economy has been consistently growing at a rate of 3.3%.i Social
structures are evolving in Poland as well, with more women entering the workforce. Dual
decision making attributes are also being more widely accepted throughout the region. With a
competitive job market at times, the push for higher education is ensuring many Polish
citizens a more lucrative career, and a better way of life. There are 38.6 million Polish at the
end of 2005, with the average salary (in USD) being approximately $12,700.ii
Since Television is a necessary complement of Tivo. Our exploration begins with the
Television market. In Poland electronic consumer spending is booming. There is an estimated
13 million television sets currently in use in Poland. It is estimated that regional television
reaches 63% of the population.iii A growing percent of Poles recreational time is now spent
watching TV, as currently the average Pole watches around four hours of television per day.
This has led to a large demand for a wide variety of channel availability in Poland. This is also
largely due to the fact that over half of all households in Poland watch television via cable
(around 4 million subscribers) or satellite dish (around 600,000 subscribers). According to
Poland.gov, Polish viewers have a real choice when it comes to television as competition is
sharp between stations.
Shopping Habits for Poles are somewhat similar to those in the US, as the majority of men
and women share shopping responsibilities.iv Indeed, there are a growing number of
partnership-based families in Poland, which leads to a growing number of families that share
household responsibilities and shopping habits. As the income level and education level
increases per household, so does the level of shopping responsibilities shared between both
men and women. As for where Poles shop, in recent years, visiting shopping malls has grown
to be one of the most popular pastimes. However, despite the dynamic development of big
shopping centers, local shops in residential areas remain the most popular. Research found
that most Poles shop no more than five minutes away from where they live. v Studies also
found that most Poles shop on Fridays and Saturdays at any particular time of day.
Tivo, or any DVR for that matter, would be at the very introductory stage of the product
lifecycle for Poland. This product is extremely difficult to find available anywhere. The only
competitors that we were able to find were that of Samsung.vi There was a variety of
information available about their DVR’s however these products are so new there, it was
impossible to find where they were available or how much they were sold for.
Target Market for Tivo in Poland would be the individuals that own the 13 million television
sets currently in use in Poland. We would base our target market largely on what TVN, the
most popular television station in Poland, bases theirs on. They look for a target demographic
group made up of 16-49 year olds, of urban population, with above average income and
education.vii TVN proudly announces that their success is based on their innovative
entertainment formats, popular shows and the reliable news, which is what a Tivo customer is
likely to be looking for in television programming.
The marketing objectives for launching Tivo in Poland would be to create awareness and
demand by being the first to provide this type of service. We want to become the iPod of this
industry in Poland and we want Poles to instantly equate Tivo as the only reputable choice for
DVR’s in their country. The rate plans to be discussed later will also help encourage “long
term” commitment to the Tivo product. Market penetration for the product will be comparable
4. to that of the Tivo launch in the United States goals; 2% of all television in the first year, and
3% additional growth in the following year.viii
With the growing number of employed workers in Poland, along with a variety of televisions
shows available. Tivo would be considered an asset too many working families. Polish
families currently use VCRs to record television programs similar to those in the United
States. The advantages of Tivo are as follows:ix
Record any program available on your television unit at any time
Set up “season passes” to ensure that you never miss your program. Season passes allow
the Tivo subscriber to program their unit to tape any given program every time it’s on. There is
no need to remember to Tivo the product every day or weekly. Tivo will remember to record it
for you.
Pause live TV at any time. Whether it is checking on food in the oven, or merely taking a
bathroom break, you’d never miss a second.
Unlike VHS tapes, the qualities of the programs are recorded digitally. The sound and picture
quality will be substantially improved. Unlike VCR tapes, you can watch the programs again
and again with out continuing picture loss. Weather related elements are also unaffected by
Tivo (ex: Hot weather has been known to ruin VHS tapes).
The ability to record the program at any point while you’re watching it. Unlike VCRs, you can
watch nearly all of a program, and at any time decide to record the entire program. Tivo will
store the entire program for you to record or until another program come on.
Set up your Tivo recording programs from any P.C. through the Tivo website. You don’t have
to be home to record your favorite program.
Download your recorded Tivo programs onto a Playstation Portable and IPOD Video. Watch
your favorite tivo’ed programs anywhere!
Compatibility will need a few modifications. The voltage in Europe as a whole is different than
that of the United States, currently Tivo boxes run of 120 volts for United States outlets. New
European Tivo boxes will have to be created with the 220 voltage that is applicable.x Also Tivo
units update the program catalog through phone lines, since phone lines are “hit and miss” so
to speak in Polandxi, they could perhaps try developing a Tivo unit that could be updated
through a wireless cellular connection or through an Internet connection. Although internet
usage is considered costly per some, nearly 30% of the populations are on line.xii
Tivo is simple to use. The remote control and program guides are very users friendly. The
interface and buttons are very similar to that of a VCR; users coming from a VCR to Tivo will
find the process very easy. Users having a first time recording device may have to read the
manual or the “help” option which is available through the Tivo programming guide.
Tivo units should be put on display at any major electronic retailer, and ideally anywhere that
sells Televisions and VCRs. There should be an in store display available for users to “try
before they buy” the unit. This will allow them to see the relative advantage of Tivo right in the
store. Despite the expansion of international chains of supermarkets, hypermarkets, and large
specialty stores, the retail market in Poland continues to be fragmented. The top ten retail
chains in Poland are foreign, and some of them we could consider working with are Macro,
Geant Casino, Auchan, Jeronimo Martins, IKEA, Carrefour, HIT, Castorama, OBI, Leclerc and
Tesco.xiii According to an interview with Wieslawa Marzena Chalimoniuk, Polish internet
usage is minimal because computers are very expensive.xiv This will also eliminates any fears
5. that the unit is too complex to use in their homes. The Tivo box is clearly observable generally
being a black or gray unit with the Tivo unit located on the front. Polish families visiting friends
with Tivo will be able to spark conversation starters by asking, “What’s that box on top of your
TV?” This will allow a word of mouth advertising to continue to increase the product’s
awareness.
Tivo units will offer a 30-day trial period. The unit and the service may be canceled and
returned anytime within 30 days. This allows the customer to try the product and decide if it is
right for them. With so many advantages listed above, we are confident are rate of return will
be very low. Tivo subscriptions can be canceled at anytime, although the box is theirs to own
after 30 days.
Product packages and the physical box should be very small. Many Polish families and
individuals live in apartments where space is limited.xv The box will be sized at approximately
4 inches deep, 6 inches long and 4 inches tall. This will allow the unit to sit comfortably on or
near the television unit. The packaging itself will be slightly larger to include the remote
control, instruction manual, and applicable cables. The package will be very bright with TIVO!
written very clearly on the box. There will be a picture of a Polish family gathered around the
television. The slogan on the box will read, “never miss your favorite program…ever and keep
it…. forever!” (Appendix 1) On the backside of the product it will list a few of the product
benefits mentioned above such as; “The ability to record any program any time, and watch it
at your convenience.” “30 day trial” will also be on the front of the package. Although in the
example of the product box is written in English, the product will be written in Polish upon
product launch. All Tivo services online, programming, and guide will be all available in
Polish.
The biggest problem with marketing this product in our country is that brand awareness and
recognition is non existent. Many Polish residents will be unfamiliar with the concept of Tivo
and exactly what it does. The risk of those fearing the technological complications of the unit
can be difficult to overcome. An aggressive television ad campaign should be implemented
upon Tivo’s launch. With the slogan “anyone can do it!” Perhaps showing a Baby Tivo’ing a
children’s program and the slogan “anyone can do it!” coming at the end. Also the family pet
setting up a Tivo program with the same slogan… “Tivo….anyone can do it!”
Also with the 30-day trial we are overcoming the potential for buyer remorse on the product.
Also being able to “put the product in your hand” in retail store outlets will give further
explanation to the users about the product. An aggressive education program should be
implemented to ensure that all retail store employees know all the benefits of the Tivo unit.
We will mainly want to focus on the ones that have cable or dish, which is over six million.
There are over 100 channels on polish cable/dish.xvi This means that there can be a demand
for Tivo to record the people’s favorite shows. They also offer movie stations and packages
like they do in the US through cable. Some popular stations in Poland are TVN, ATNV, ITV,
and Telewizja Trwam, TV Polania, and Viva Polaka.xvii We want to aim for the popular ones so
everyone can see our product. These are the stations that our customers are going to be
recording their favorite shows. Some popular TV shows we may want to put our commercials
in are The Mole, and Big Brother Poland.
Specific allocation of marketing funds will be broke down as follows:
6. 50% Television advertising – with so many Poles watching Television, those who watch
television more frequently, thus seeing our ads more frequently will be more included to see
the Tivo advantage.
25% Marketing Field Staff – these Tivo troops on the ground will ensure that all electronic
store employees will become experts on the product, to help eliminate the fear of the new
technology.
15% Store Point of Purchase materials (POP) – Fancy in store displays, pocket cards for the
store employees, literature for customers, etc. to help promote the “Tivo experience”
5% Radio and Newspaper – To help establish brand name recognition, and consistency of
the product being mentioned. Helps great the “buzz” about Tivo.
5% miscellaneous expensive – Tivo booths at fairs or trade shows, special holiday promotion
“give-a-ways”, and other small one time expenditures
(appendix 2)
We aim to price this product to Poland as an affordable price for this new technology. We
want the “common man” to be able to afford this product, so we cannot make it a prestige
item. We want to appeal to the whole 63% of the country who own a television. Cable in
Poland costs around $30 USDxviii, so we don’t want to price it as much as the cable they are
already paying for, we want to make it quite a bit lower in price and look at is as an add one to
your personal home entertainment system. If we compare this to the US average salary of
$12,700, we find that is only about 1/3 of what the average salary is in the US. Poland uses a
currency called the Zloty, which is 0.312373 of a US dollar. We propose that a lifetime
membership in Poland will cost around $194.25, box included. In the US, Tivo sells for
$16.95/month with a three-year contract in the United States.xix We suggest we could offer a
slight lower price of monthly service for $7.75. We will also sell the individual unit for $74.99
and the DVD unit for $199.99. (appendix 3) We don’t want this product to come close to the
$30/month cable fee people in Poland are already paying for fear of lower adoption rate.
The top five populated counties in Poland are Warsaw, Lodz, Krakow, Wroclaw, and
Poznan.xx From our interview, we found that the most technical savvy counties are actually
the top 3. We want to focus on these counties because of course; they are the larger more
populated cities. There are also cable companies that have products very similar to Tivo, such
as Dish Networks, Divo. These companies sell their product with their cable services. Since
digital recording technology isn’t apparent in Poland, we could sell Tivo the same way.
Partnering with a cable company that is already established gives Tivo’s brand more validity,
as well as eliminates the risk of a future competitor on the market. With over 4 million cable
subscribers in Poland this market is ripe. Originally Direct TV had a partnership with Tivo, until
they elected to use their own DVR service.
Based on this strategy we fill that our goals are reasonable and obtainable for a product
launch for Tivo in Poland. Poles currently use VCRs so they are familiar with the concept of
“taping” programs, and with dual incomes many families have a higher degree of flexible
income. In order for the marketing campaign to be successful three elements are required.
Conveying the Tivo advantage and showing the value of Tivo over a conventional VCR.
Explaining the user friendliness to eliminate fear that Tivo is difficult to operate and use, and
finally, pricing it accordingly to show the value in the product.
i Economic Global Prospects: http://iie.com/publications/papers/mussa0405.pdf 2005
7. ii CIA World Factbook – Poland: http://www.cia.gov/cia/publications/factbook/geos/pl.html 2005
iii CIA World Factbook – Poland: http://www.cia.gov/cia/publications/factbook/geos/pl.html 2005
iv Personal Interview: Wieslawa Marzena Chalimoniuk 3/07/2006
v Polish News: Economy http://www.polishnews.com/text/business_and_economy 2006
vi Samsung Product Guide: http://www.samsung.com/Products/DVRs/StandaloneDVR/index.htm 2006
vii Polish Television: http://www.poland.gov.pl/Televison,in,Poland,518.html 2006
viii Personal Interview conducted with Tivo employee 4/04/2006 (name omitted)
ix Tivo! www.tivo.com/ 2006
x Enjoy Europe- Electricity: http://www.enjoy-europe.com/hte/chap11/electric.htm 2006
xi CIA World Factbook – Poland: http://www.cia.gov/cia/publications/factbook/geos/pl.html 2005
xii International Statistics – Poland http://www.internetworldstats.com/eu/po.htm 2006
xiii Strategis Canada – International: http://strategis.ic.gc.ca/epic/internet/inimr-
ri.nsf/en/gr121318e.html 2006
xiv Personal Interview: Wieslawa Marzena Chalimoniuk 3/07/2006
xv Personal Interview: Wieslawa Marzena Chalimoniuk 3/07/2006
xvi International Statistics – Poland http://www.internetworldstats.com/eu/po.htm 2006
xvii Poland’s Television List: http://www.krrit.gov.pl/sprawozdania/spr2006/inf2006.pdf 2006
xviii Personal Interview conducted with Tivo employee 4/04/2006 (name omitted)
xix Tivo – Buy Tivo!: http://www.tivo.com/2.0.C.asp 2006
xx CIA World Factbook – Poland: http://www.cia.gov/cia/publications/factbook/geos/pl.html 2005
8.
9. 40 hour recorderThis unit will run at $74.99 (USD) with no obligation of service.
Users can cancel at anytime.Unit is free with lifetime subscription
40 hour recorder w/ DVD burner$199.99 USD with no
10. contract, cancel at any time.$199.99 with lifetime subscription. Marketed initially at high end
innovators.
TIVO UNITS AVAILABLE UPON PRODUCT LAUNCH
$7.75 month svc fee $194.25 lifetime
Appendix 3