Direct TVDIRECTV Marketing Proposal 2015Group Oriental Pearl By Rachel Fan Pan, Ruimin Gong, Lingfan Ni, Xiaoqi Lu

Table of Content● Situation Analysis● Current Service● SWOT● Competitor Analysis ● Target Market● Marketing Objectives● Positioning Statement● Strategies● Tactics● Media Calendar/Timetable● Budget● Evaluation and Measurement

Situation AnalysisEconomic Condition

● Cable industry is very sensitive to changes in economic activity

● The consumer sentiment index is expected to increase in 2015

Cable TV Industry ● Revenue is expected to increase at a slow 2.4% to $48.3

billion● Increase at a slower annualized 2.9% to $55.6 billion over

the five years to 2019● Streaming becomes a serious threat

ConsumerThe majority of this industry's customers are residential households, more than 90% of American households still pay for TV

Current Service/Product/Program

● Digital television service ● Direct-to-home television services ● Multi-channel video programming ● High definition programming ● Video on demand ● Professional programming ● Collegiate sports programming ● Bundles of voice, data and television ● Mobile applications

SWOT Analysis Strength

● Large subscriber bases ● Leading brand name● Substantial channel capacity and

programming content ● Strong financial performance across

segments● High quality digital picture and sound● High customer satisfaction

Weaknesses● Long term high debt● Difficulty in obtaining financial support for

expansion plans● High programming and satellite costs

and low margin● High costs of subscriber acquisition and

retention

Opportunities● Combined with AT&T● Broadcasting and cable tv markets grow

fast

Threats● Intense competition from streaming

programs● Greater service by cable and wireless

companies,competitors started offer customize TV bundles

Key CompetitorsTraditional MVPDs

● Comcast Corporation ● Cox Communications, Inc.● DISH Network Corporation ● Verizon Communications Inc. ● Brighthouse Networks● Telefonica, S.A.● AT&T Inc.● Global Village Telecom● Telmex Internacional S.A.B de C.V. Time

Warner Cable Inc.

New Challenges

● Online video distributors and providers such as Hulu, Roku, Netflix, Apple, Amazon, Blockbuster and Google

● Gaming consoles such as Xbox, PS4 and Wii

Key Competitors’ Referral ProgramsAT&T

- Earn up to $575 a year for referring new and existing customers- Referral and referee earn a $25 promotion card (maximum 23 promotion cards a calendar year)

Comcast - $100 Visa Prepaid Card for the first referred new customer who qualifies under the program- An additional $200 Visa Prepaid Card for the second referred new customer- An additional $200 Visa Prepaid Card for the third referred new customer

Dish Network- Free bluetooth wireless headphones when refer 2 friends- $50 for every friend you refer ($5/mo. credit for 10 months, maximum 10 referrals per calendar

year)

Target Market Profiles

Primary target:● Existing DIRECTV Subscribers● age 35-50● homeowner, live in urban centers● who actively participate in other referral

programs● have positive experiences with DTV, ● income between $50-100k● value seekers looking for ways to save

money on their bills.

Why Gen X?DIRECTV web visitors:

Age of visitors: 35-44: 21.77%, 45-54: 24.32%,

Household income of visitors: 40-60k: 31.81%, 60-100K: 23.11%

Marketing Objectives

1. Increase the number of the active DIRECTV subscriber base participates in the referral program from target audience by 5%

2. With the next fiscal year, 50% of the first-time referees will continue to participate in the DIRECTV referral program.

Positioning Statement

Among the existing family-oriented subscribers whose age between 35-50, we want to make DIRECTV the brand of digital Television service provider that personalize your watching experience because it combines the traditional TV channels, with customized package tailored to your interests, and connecting you, your family and your friends with the best referral program on the market.

Strategy

Strategy Part A: Reach out with personalized referral offers tailored to their interests and prior purchases through TV/online commercials, direct mails and Emails

Strategy Part B: Generate buzz and social media effect around message to influence customer purchase behavior

Tactics

● Promotion: Sweepstake-Live Sports Tickets

● Partnership: United Airlines Inflight referral

● Generate Buzz: Price Matching

● Direct Mail Plus: Send Greeting Cards on important holidays

Media Mix

Traditional● Direct Mail● Social Media● Digital

Advertising● OOH

Alternative● Buzz● Partnership

Promotion ● Sweepstake

Sweepstake: Live Sports Tickets Refer a friend, you and your friends could go to Live sports event together! #DirectTvRAFTickets

May-June $1000 NBA Tickets

Aug-Oct $100 MLB Tickets

Nov- Jan $1000 NFL Tickets

Feb $5000 SuperBowl 2016 Tickets

Partnership: UA Inflight ReferralUnited Airlines

● Directv access: $5.99 1 person $8 for 2 people $7.99 1 person $11 for 2 people

● Refer A Friend ad showing on the TV screen, enter email if interested

● Referrer and referee can both enjoy free access on their next flight with UA

Buzz: Price Matching

WE’RE PRICE MATCHINGIf you find a better referral deal, we

will match it!

-Send us the link of competitors’ referral deal -We match it and send you the confirmation-Complete the referral and share on your Facebook #DIRECTVPriceMatching -You will receive the offer in 60 days

Direct Mail: Send Greeting Cards on Holidays

Dear Mom,Happy Mother’s day! Thanks for being amazing! DirecTV wants to celebrate it with you! Refer a friend! Your friend and you both get $100!

The White’s

Dear Robert’s,Merry Christmas and happy New Year! May your days be filled with love, peace and DirecTV referral visa cards!

TV Commercial

Commercial: https://www.youtube.com/watch?v=PD7MXHfGzvc

Media Calendar/Timetable

Budget

ROI

Total increased revenue :($30*12 mon)*1 million subscribers=$360m

Cost: $1m+(250+100)*1m

Profit = Total Revenue - Marketing cost- customer cost

$360m - $1m-($250+$100)*1m= $9m

ROI=(9m-1m)/1m=800%

Evaluation and Measurement❏ Pre Test:❏ Concept testing and surveys are suggested to conduct to the focus group(gathering opinions and suggestions on the

events and channels❏ Customers reviews from social medias ❏ Portfolio tests, including displays of the city public Transportation advertisement designs and coupon designs

❏ Post Test:❏ The number of visits to the referral website.❏ The number of target attendance during the campaign❏ The trending topics on Facebook and social media❏ Redemption rates of referral offer send via email and direct mails