Time Warner Cable, Inc'

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Time Warner Cable, Inc.

• The Maria Sharapova All-Stars

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Time Warner Cable, Inc.

• Henri Chen
• Michael Kittle
• George Skarpathiotakis
• Timothy Thompson
• Charles Whiteley III

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Executive Summary

• Becoming a complete communication gateway!

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Advantage Tim Thompson

• Current Market Situation

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Market Summary

• Demographic Above average income, significant
  and growing Hispanic market

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• Geographic Your six territories representing 13
  of the market
• Psychographic Tech-savvy, above average
  education level, sufficient disposable income to
  enjoy leisure activities
• Behaviors

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Market 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
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Market Demographic Hispanic Market
All above figures in millions Source RAND
California
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Market Geographic
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Market PsychographicBachelors Degree or Higher
City of LA
Source http//www.city-data.com/city/California.h
tml
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Market Behaviors

• Good cable customer satisfaction (67)
• Better Internet customer satisfaction (82)
• Unavoidable Churn
• Lack of knowledge of and about offerings

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Market Needs

• Entertainment from TV and movies
• Current information and news
• Broadband Internet
• Simplicity in billing
• Effective customer service
• Variety of programming operations
• Competitive pricing

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Market 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

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SWOT Analysis
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Competition

• Satellite signal providers
• Other Internet phone providers
• Signal thieves
• Other entertainment media

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Product Offering

• Cable and video products (VOD, premium, DVR)
• High-speed Internet
• Digital Phone

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Macroenvironment

• Economic and aging changes
• Neutral industry outlook
• (Standard PoorsMovie and
  Entertainment Sub-industry)
• Technology advancement /-
• Competitive Activity

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Advantage Henry

• Marketing Strategy - Objectives and Positioning

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Marketing Objective

• Improve analyzing marketing opportunities
• Optimize new marketing strategies
• Improve executions

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Marketing Objective

• Optimize target market segmentation
• Maintain positive, steady growth
• Increase number of new customers

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Financial 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

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Target markets

• Hispanic population
• Income levels
• Educated customers
• High income, health conscious individuals
• Established suburban immigrants

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Positioning

• Complete communications gateway
• Premier high-end home entertainment provider

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Advantage George

• Marketing Strategy Marketing Mix and Research

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Marketing Mix

• Strategy gt Tactics gt Programs

• Increase profits while position TWC as a
  high-end, communications service provider.

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Marketing 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.

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Marketing 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.
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Marketing 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.
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Marketing 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.
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Market Research Finding

• Income 60 _at_ 75,000
• Education 98 gt high-school
• One bill 98 said Yes
• Door-to-door 25 said Yes

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Proposed Marketing Mix
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Advantage Charles

• Financials and Implementation

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Current Financials
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Financial Forecasts
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Survey

• 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?
  

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Survey Results
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Implementation

• 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.

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Contingency 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.