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Time Warner Cable Swot Essay

4793 words - 20 pages

Angela Copeland
Dustin Stollberg
Tim Fischer
Professor: Dr. Andrea Scott Yue Yuan

April 5, 2005
MBAM 615.12


Table of Content

1. EXECUTIVE SUMMARY………………………………… ………..3

2. Situation Analysis 4
2.1. Market Summary 4
2.1.1. Market Demographics 4
2.1.2. Market Geograhics 4
2.1.3. Market Psychograhics 4
2.1.4. Market Behaviors 5
2.1.5. Market Needs 5
2.1.6. Market Trends 6
2.1.7. Market Growth 7
2.2. SWOT Analysis 8
2.3. Competitive Analysis 9
...view middle of the document...

VOD has the power to boost revenue and customer growth due to its high buy rate and loyalty of customers who try it. Increasing promotions and VOD certificate giveaways will lead to increased revenue and customer loyalty, thus reducing churn. Additionally, by adding VOD offerings in Spanish, TWC will additionally be able to capture and keep a larger portion of the Hispanic market.

By implementing the strategies outlined in this marketing plan, TWC will be able to dramatically increase its VOD buy-rates. This in turn will lead to an increase in overall revenue, and a decrease in churn. VOD is a very powerful tool, and with customers aware of its capabilities, they will perceive more value from their cable service. This is the most important step in retaining customers, and gaining new customers.

2.0. Situation Analysis: Time Warner Cable, Los Angeles
2.1. Market Summary

Time Warner Cable’s (TWC) target market is broken into small areas throughout Los Angeles. Potential customers are technologically savvy consumers. These customers are early adopters, who look for quick, easy, and reliable technology that will meet their needs. TWC is limited in the physical areas in which it can expand, so emphasis will need to be placed on retaining and increasing the value of existing customers as well as the recruitment of competitors’ customers through targeted marketing. Two areas of focus that will assist in this are bundling and on-demand programming.

• 2.1.1. Market Demographics
o TWC Customers are generally middle to upper class
o Average household income is $53,546 / year
o Racial makeup: 41% white, 28% Hispanic, 16% Asian, and 5% African American
o English is the primary language 59% of the time with 20% Spanish, 11% Asian, and 7% Indo-European
(Source: TWC Pepperdine Presentation)
• 2.1.2. Market Geographics
o 352,000 Time Warner customers in the Los Angeles area
o Located in Orange County, Garden Grove, Torrance, South Pasadena, and Chatsworth
(Source: TWC Pepperdine Presentation)
• 2.1.3. Market Psychographics
o Most customers are early adopters of technology
o They keep up on the latest trends in TV, computers, and phone communications
o 43% of TWC customers rent their homes
o Average home value: $253,578
(Source: TWC Pepperdine Presentation)
• 2.1.4. Market Behaviors
o On average, the TWC customer demographic is more educated than typical consumers
o TWC customers are looking for fast, reliable service in the form of video television, high speed internet, and digital phone
o High speed (and often higher priced) versions of technologies can be a symbol of status (as customers view them as a superior product)
o High usage rate in comparison to other similar technologies
o Bundling of TWC products will lead to increased customer loyalty

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