B2E: 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
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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
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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
 Increase Sales revenue by 15% to
$358.69MM by utilizing increased VOD buy
rates and High Speed Bundling
 Increase revenue per day to an average of
$.98MM (358.69/365)
 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
 Customer Needs / Wants
 High Quality TV, VOD, HD TV
 Channel Selection
 Digital Internet and Phone
 Convenience & Reliability
 Trends
 Consolidation & Partnering
 Increasingly Broad Customer Demographic
 Growth
 Static Physical Area
 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
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
 Professional Youngsters
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Individuals or couples between 20 - 34
26.36% of the population in Los Angeles
(Source: 2000 US Census)
Earn ~ $50,000
 Upper-Medium Income Household
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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
 Baby Boomers
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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
 The main distinguishing feature between
Cable and Satellite services is the
emergence of the On-Demand feature
offered by Cable
 The current trend and push now is toward
bundling
 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
 Of the consumers that have tried VOD, 50%
consider themselves regular users
 96% of consumers that tried FOD (Free On
Demand) stayed with the VOD service
 80% of VOD business is done with 20% of
content
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New Release Movies
Opportunity to shrink Store to VOD window
Source: www.cablemarketer.com
Pepperdine University:
Graziadio School of Business
& Management
MBAM 615.12 : Marketing Management
Go Nuts!
Spring 2005
Consumer VOD Potential
 VOD subscribers will grow to 15 million by
2005 and 31 million by 2008.
 VOD estimated to gross $2.5 billion by 2008
 VOD buy-rates grew 75% over the last year
 Only 25% of consumers with VOD access
have used the service

Huge Growth Potential
Source: www.cablemarketer.com
Pepperdine University:
Graziadio School of Business
& Management
MBAM 615.12 : Marketing Management
Go Nuts!
Spring 2005
Promotions
 In Store Events:
Partner with Best Buy or other electronics retailers to give
out free VOD coupons for TV purchase
 Sampling:
 Free VOD movie passes
 Free VOD pass every month with bundle signup
 Buy five VOD movies, get one free
 Events:
 Set up monthly VOD & Internet information sessions for
customers to attend
 Discounts:
 Incentive Programs
 Give price breaks to young professionals

Pepperdine University:
Graziadio School of Business
& Management
MBAM 615.12 : Marketing Management
Go Nuts!
Spring 2005
Implementation – Short Term
Date
Summer 2005
Summer 2005
Summer 2005
Summer 2005
Summer 2005
Activity
Distribute free VOD coupons
Target Market
Steps
All customers
Get Studios to buy
into this promotion
Include free VOD coupons in Bills All customers
Get studios to buy
into this promotion
Offer Discount Coupons for VOD All customers
Get studios to buy
into this promotion
Include package deal ads in bills All customers
Develop ads;
Distribute ads to
TWC customers
Expand VOD promotion on TWC All customers
Develop promotion;
channel
schedule promotion
Summer 2005
Promote Children’s VOD movies
for children on summer vacation
Summer 2005
Addition of Spanish VOD channels Hispanic
customers
Pepperdine University:
Graziadio School of Business
& Management
Families within
target market
MBAM 615.12 : Marketing Management
Go Nuts!
Spring 2005
Obtain lists of
families within
target market
Coordinate with
Spanish studios to
diversify VOD
offering
Implementation – Long Term
Date
Summer 2005 to
Summer 2006
Summer 2005 to
Summer 2006
Summer 2006
forward
Pepperdine University:
Graziadio School of Business
& Management
Activity
Send out periodic reminder fliers
with information to use VOD
Target Market
Steps
All customers
Develop ads;
Distribute ads to
TWC customers
Call customers to survey them on Customers in the Obtain calling list of
their understanding of VOD and
target market
VOD users;
any additional information that
who have used schedule call center
would encourage them to increase VOD in the past calling; implement
their use
year
calls
Utilize feedback gained from
All customers
Analyze customer
customer surveys to implement
feedback gained
further marketing activities
above; Develop
strategy based on
feedback to
increase VOD
usage
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