Running head: Marketing Plan – Time Warner Cable
Marketing Plan – Cable – Time Warner Cable
Bonnie Bagby
BUS 620 – Managerial Marketing
Dr. Uchenna Nwabueze
August 30, 2010
Abstract
The marketing plan for Time Warner Cable reviews the market conditions, including emerging technologies and competitors and provides a marketing plan with focus on maintaining current customers and adding new commercial customers by focusing on cloud offerings, teleconferencing and telemedicine.
Marketing Plan – Time Warner Cable
Executive Summary Time Warner Cable (Time Warner Cable), the second largest cable provider in the United States, continues to face stiff completion from the number one cable company Comcast and satellite pay-for-TV
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The overall cable industry has lost five million customers between 2006 and 2009 to fiber optic and satellite solutions (Yao, 2010, p. E2). Satellite carriers DishNetwork and DirectTV service thirty-three million customers. Both satellite and cable providers have been targeted, by fiber optic providers, like AT&T and Verizon communications. The emerging technology of internet protocol technology (IPTV) is the most recent competitor, targeting the pay-for-TV customer base. Phone companies or telcos have entered the competition using fiber optics and IPTV to allow video streaming. Telephone companies, now called telcos, are spending billions on fiber optic installations to support IPTV technology. The technology will offer remote areas, currently untouched by cablevision, but penetrated by satellite, a pay-for-TV option. GenosTV is currently beta testing IPTV with a planned release date of January, 2011 (Entertainment & Travel, 2010).
While the cable industry certainly has a customer service challenge, satellite providers do not fare well in satisfying customers either. Satellite suppliers DISH Network and Direct TV had fifty-two thousand complaints made to the Better Business Bureau between 2007 and 2010 (The Patriot Ledger, August 7, 2010, p. 24). Customer complaints generally
Cutting out a cable subscription can potentially save consumers 100 dollars a month, even after they subscribe to new online television services such as Netflix or HBO NOW (Bajaj). With these online subscription services comes a plethora of content and if a consumer were to exhaust the extensive amount of content provided by one subscription service, they can easily unsubscribe and switch to a new service with different content. However, while creating an appropriate response to the threat of cord cutting, HBO is still facing challenges potentially because of its online subscription service being limited to streaming only HBO programs while other subscription services such as Netflix provide a diverse range of content for consumers to choose from. HBO NOW has proven to have a somewhat underwhelming effect in that it only gained 800,000 domestic subscribers as of June 2016, in comparison to Netflix’s over 75 million subscribers internationally potentially because of its inability to directly compete with other subscription services that cord cutters find to fit their needs and interests better (Berman). So, while this new online media landscape provides both more fiscal freedom as well as freedom of content for consumers, it has the potential for setbacks cable networks such as HBO even if they
Telstra segment their residential customer based upon customer usage and lifestyle patterns and for small business customers according to the type of business they operate and the way they interact with their customers. Telstra enable customers to interact with them online, through door-to-door sales representatives and telephone sales channels and face-to-face via Telstra Shops.
Technological factors also play a major role in the video rental industry. “Telecommunications companies were accelerating efforts to create an information superhighway to households using fiber optics technology that permitted in-home viewing of movies on a pay-per-view basis.” Although fiber optics technology was still being developed, it presented a major threat to the video rental business. Once developed, this technology would render the need for video rental stores useless.
The amount of households subscribing to cable and satellite television has indeed grown. What they could not have foreseen was the emerging rent-by-mail market.
But, unfortunately due to the enormous cost and very little public interest and demand Time-Warner decided to pull the plug on its nationwide change over to digital lines. This shows that the cable companies are surpassing the consumer demand for technology, making this industry a very hard one to market.
However, in the era of the Internet, the market has changed. Cable television has been challenged by many alternative venues of media consumption, most notably in the form of the Internet. "There has been some competition from satellite TV players and (in a few areas) TV over IP" (Masnick 2008). "Thanks to the rise of Netflix, Hulu and hardware like the Roku box and Apple TV, cutting the cord to cable TV doesn't mean cutting yourself off from your favorite shows and channels" (Glaser 2010). However, most high-speed Internet consumers receive their Internet connection from the cable company, which indirectly funnels money to support cable TV.
Marketing strategy is totally dependent on the specific type of consumers, which may have various needs and require different marketing mixes in terms of Product, Price, Promotion and Distribution. For product, Cisco Systems was the inventor of the Internet Protocol (IP) based technology and also enhanced the standard of Voice-over IP (VoIP) through their Research and Development Team at headquarter in Silicon Valley, Seattle. Cisco has been designed, manufactured, and distributed
Netlix strategy by virtue of product design addresses the bargaining powers of both buyers and suppliers. It’s highly price efficient for both. The threat of new entrants is addressed by Netflix’s technologically savvoy “linear linking” of newer apps over broad band width. The company strategically designed the mapping and application of video streaming packages to where it has became highly speacilized. New entrants to the video streaming market would need equal broad band capability. Strategically, Netflix also didn’t compete against the cable service giants, rather relied exclusively on internet carrying cable outlets.
Nowadays, budget-conscious customers look at ways to avoid paying for expensive bundles cable TV offers. They prefer to choose “a la carte” programming offered by web-based services. “A la carte” approach to programming enables the subscribers to pay for only the channels they really want to watch. Several companies including Verizon, Walt Disney and Viacom provide their customers with content they are interested in without the need of paying for channels they are not willing to watch. No wonder there is a lot of competition between the largest operators in the wireless and cable industry like Verizon, Dish and Comcast.
Cellular phase remained the very important player with increase in total Teledensity contributive forty eight %. Within the urban markets introduction of Broadband web services by numerous Telecomm giants like PTCL, World decision and Wateen has more benefited the shoppers to access timely data over the web with competitive rates. The broadband penetration but has not represented the maximum amount growth needless to say growing with three.Smn subscribers in a pair of OO7 against 2.4mn subscribers in 2006. PTA estimates broadband subscribers to grow to over Smn by 2010. World decision has initiated cable tv services with PTCL expected to follow suite by providing IP1V services through its baseball play services, guaranteeing diversification of merchandise and services. Recent contributive surroundings give by PTA has resulted in accumulated FDls within the sector with investments of USD2.7 bn throughout the last 5 years creating it the most important recipient of highest FDI throughout the past few years. the longer term for telecom lies amongst unknown rural
Cable Bahamas Ltd. is the most technologically advanced, broadband provider today. The company has been providing cable television services in The Bahamas since March 1995, and Internet services since March of 2000. Cable Bahamas operates one of the most technically advanced cable television systems in the world and is the only provider of cable television in The Bahamas. Through their extensive use of fibre optics, our system 's flexibility and potential for growth is virtually unlimited. We are one of few systems in North America, that has a fully functional two-way cable TV system, enabling interactive cable TV and high-speed data services. Our use of addressable taps is unique and significantly reduces operating costs. The management team of the company collectively has over 100 years of International engineering, fibre optic and cable television technology experience. Cable Bahamas ' Future Is Built On Four Key Resources:
There are numerous challenges facing incumbent Communications Service Providers (CSP) such as commoditization, customer churn, low growth and low profitability from traditional services. They also face challenges from digital entrants and disruptors such as Google and Amazon as well as numerous startups. These new players are nimble and are not burdened by legacy infrastructure or the associated fixed costs, and are rapidly reshaping the industry. They are fundamentally altering how communications players engage with as well as build and maintain a long term relationships with their customers. The future looks bleak for existing CSPs – Analysts predict that by 2025 only three
For satellite TV to move beyond the techies and early adapters, into the mainstream consumer marketplace, three things
In recent years, both DIRECTV and DishTV have struggled to keep up with changing of times with technology, particularly as more and more consumers drop cable and satellite subscriptions in favor of online streaming options including Netflix, Hulu, and Amazon Prime. Overall both DIRECTV and DishTV suffer from the same problem of lacking services and features to protect them from the changing market. Since satellite companies are unable to offer the same high-speed broadband services as their cable competitors, they are having difficulties with the ever-changing industry where internet-based entertainment services are
On one hand, the company focuses on monthly subscription that may discourage some of the customers especially if they do not use the services on a daily basis. Additionally, the company has a limited number of suppliers of content and thus a smaller variety of programs (Barney and Hesterley, 2015). On the other hand, there is increasing competition since most of the rivals also focus on internet-enabled television and streaming. Notwithstanding, the improvement in technology may make some of the services offered by the company obsolete since customers may shift to new