TIVOBackground Being a cutting-edge new product, Tivo was introduced by Jim Barton and Michael Ramsay, the founders of the product. Tivo's main goal was to make the time of customers' favorite shows more personalized and flexible. In the current market, Tivo's launch has not captured as many customers as expected. In the 14 months since launch, it has signed up just 42,000 subscribers, with a current rate of 14,000 new subscribers per quarter. With 102 million households watching TV in the United States, penetration was only about 0.04%. While 72% of owners had a great start with Tivo, that didn't help generate more sales. The marketing team argued that lack of awareness was a major cause of this result. Problem Definition There was no doubt that Tivo offered a new way to watch TV with its advanced technology. however, the ads (e.g. Network Executive ad) and the salesperson did not explain the complex functions well to customers, so people thought that Tivo was a product that could skip commercials by recording shows. Tivo has invented many amazing features and benefits that have contributed to the factors that facilitate its adoption. one of the most important points was that it could record the TV programs the owners wanted. This way, customers would not only manage the time to watch it, but also avoid conflicts with other favorite programs. this feature offered a unique TV viewing experience to TV enthusiasts. Being a new product, it also had some factors that made it difficult to adopt. the most serious factor was the discrepancy between the information customers received through various media and the fully designed features that Tivo had. As the company mentioned, neither TV commercials nor print ads c...... middle of paper ...... increased much. Cons: Lowering the price would have hurt early adapters who paid $999 for the product and hurt the company's reputation indirectly in the long run. Recommendations The company should be clear that Tivo is not for all television users and cannot change the habits of all customers in this way. Tivo was only suitable for people who didn't care about advertisements and who had busy daily schedules. Meanwhile, both advertisers and networks wanted TIVO to prevent ad cannibalization in the use of TIVO services. So going to a niche market would lessen their concerns, because a small group of people not watching advertisements wouldn't change the rules there. So, the company should create a niche for Tivo, decrease the price but make it fair for early adopters. Furthermore, communication plans were needed to increase Tivo's awareness.