Title: Time Warner Cable, Inc'
1Time Warner Cable, Inc.
- The Maria Sharapova All-Stars
2Time Warner Cable, Inc.
- Henri Chen
- Michael Kittle
- George Skarpathiotakis
- Timothy Thompson
- Charles Whiteley III
3Executive Summary
- Becoming a complete communication gateway!
4Advantage Tim Thompson
5Market Summary
- Demographic Above average income, significant
and growing Hispanic market
6- Geographic Your six territories representing 13
of the market - Psychographic Tech-savvy, above average
education level, sufficient disposable income to
enjoy leisure activities - Behaviors
7Market DemographicHigh Median Household Income
County of LA
City of LA
Sources http//www.city-data.com/city/California.
html and http//www.losangelesalmanac.com/LA/l
a09.htm Using 2000 Census Data
8Market Demographic Hispanic Market
All above figures in millions Source RAND
California
9Market Geographic
10Market PsychographicBachelors Degree or Higher
City of LA
Source http//www.city-data.com/city/California.h
tml
11Market Behaviors
- Good cable customer satisfaction (67)
- Better Internet customer satisfaction (82)
- Unavoidable Churn
- Lack of knowledge of and about offerings
12Market Needs
- Entertainment from TV and movies
- Current information and news
- Broadband Internet
- Simplicity in billing
- Effective customer service
- Variety of programming operations
- Competitive pricing
13Market Trends Growth
- Static territories
- Static population growth of 2
- Static household growth of 1
- Increasing percentage of Hispanic population and
households - Increasing utilization of broadband Internet
14SWOT Analysis
15Competition
- Satellite signal providers
- Other Internet phone providers
- Signal thieves
- Other entertainment media
16Product Offering
- Cable and video products (VOD, premium, DVR)
- High-speed Internet
- Digital Phone
17Macroenvironment
- Economic and aging changes
- Neutral industry outlook
- (Standard PoorsMovie and
Entertainment Sub-industry) - Technology advancement /-
- Competitive Activity
18Advantage Henry
- Marketing Strategy - Objectives and Positioning
19Marketing Objective
- Improve analyzing marketing opportunities
- Optimize new marketing strategies
- Improve executions
20Marketing Objective
- Optimize target market segmentation
- Maintain positive, steady growth
- Increase number of new customers
21Financial Objectives
- Increase revenue
- - a growth rate of 8.25, 311.9M annual
revenue (2005) - Increase marketing expense
- - an estimated 8.25, from the 2004 level of
7M
22Target markets
- Hispanic population
- Income levels
- Educated customers
- High income, health conscious individuals
- Established suburban immigrants
23Positioning
- Complete communications gateway
- Premier high-end home entertainment provider
24Advantage George
- Marketing Strategy Marketing Mix and Research
25Marketing Mix
- Strategy gt Tactics gt Programs
- Increase profits while position TWC as a
high-end, communications service provider.
26Marketing Mix
- Strategy gt Tactics gt Programs
- Seek larger market share within three years by
increasing new customers through increased
awareness of products and benefits in an effort
for increased product sales. - Decrease churn while increasing new customer
base.
27Marketing Mix
- Strategy gt Tactics gt Programs
1. Larger Market Share gt New Customers gt Product
Sales
a. Redefining existing and creating new target
markets.
b. Additional involvement in industry
associations such as LA Consortium.
c. Retail stores as education and selling points.
d. Increase exposure through website.
e. Direct mail pieces through local newspapers.
f. Increase incentives for bundling.
g. Investigate into specialized programming that
would create product differentiation.
28Marketing Mix
- Strategy gt Tactics gt Programs
1. Decrease churn while increasing new customer
base.
a. Identify potential reasons for churn through
increased research of former customers.
b. Increased incentives for existing customers to
stay with current products.
c. Increase incentives for existing customers to
word-of-mouth advertise.
d. Increase incentives for existing customers to
remain with Time Warner Cable.
29Marketing Mix
- Strategy gt Tactics gt Programs
1. Decrease churn while increasing new customer
base.
No-Contract Contract
- Discounted monthly rate for customers willing to
pre-pay for their services. - Option to cancel at any time
- If customer does opt-out, is charged full price
for services, pro-rated over the amount used.
d. Increase incentives for existing customers to
remain with Time Warner Cable.
30Market Research Finding
- Income 60 _at_ 75,000
- Education 98 gt high-school
- One bill 98 said Yes
- Door-to-door 25 said Yes
31Proposed Marketing Mix
32Advantage Charles
- Financials and Implementation
33Current Financials
34Financial Forecasts
35Survey
- Research Questionnaire
- 1. What is you zip code? _________
- 2. What is your household income?
- ? Less than 35,000 ? 3550,000 ?
5075,000 ? gt75,000 - 3. What is your level of education?
- ? High-school ? College ? Masters/Post-graduate
- 4. How long have you lived in your current
address? - ? Less than 1 year ? 14 yrs ? 510 yrs ?10
yrs - 5. Which of the following services do you
subscribe? - ? VOD ? High-speed Internet ? phone service
- ? cable/satellite ? DVR
- 6. Who is your phone service provider?
- ? Sprint ? ATT ? SBC ? Time Warner Cable ?
Other - 7. Who is your Internet service provider?
- ? AOL ? Yahoo ? Road runner ? Others
- 8. Who is your cable/satellite provider?
- ? AOL ? Direct TV ? Dish network ? Others
- 9. Would you appreciate having one company handle
all your home information/ entertainment needs?
36Survey Results
37Implementation
- Task 1 Conduct market research through surveys
of current and prospective customers. - Goal Confirm and expand understanding of
market. - Task 2 Reallocate resources dedicated to
door-to-door marketing campaign. - Goal Increase cost-efficiency and efficacy of
marketing campaign. - Task 3 Implement kiosks staffed by TWC sales
personnel in electronics retail outlets. - Goal Increase mind-share and compete with
on-site satellite representatives. - Task 4 Design and implement promotions in
Spanish in all marketing media using programming
appealing to the Latin market like soccer and
Telemundo. - Goal Take advantage of expanding Latin market
to increase revenues. - Task 5 Measure success of campaign in terms of
increased subscriber base as compared to current
subscriber base. - Goal Increase subscriber base by 5.
- Task 6 Measure success of campaign to broaden
existing subscriber portfolios by examining
average customer monthly expenditure increase due
to new campaign. - Goal Increase average customer portfolio by 5.
38Contingency Planning
- Threat Satellite develops bundling of services
through partnerships or technological innovation. - Solution Continue product innovation and
increased network and VOD offerings. - Prevention Rapidly implement marketing campaign
to reduce market share of satellite companies
reducing their overall threat level. - Threat Netflix and Blockbuster new market
offerings decreases revenues through lower use of
premium channels and VOD. - Solution Expand VOD offerings to better compete
with the number of titles offered by these
companies. - Prevention Use advertising to stress the
importance of the ease and timeliness of VOD
platform.