CABLE-BASED TELEVISION

Marketing Plan: Staying with Cable-based television instead of switching to satellite TV

Marketing Plan: Staying With Cable-Based Television Instead Of Switching To Satellite TV

Introduction

In the early days, someone probably denounced cable by saying, “Television is like water, and no one will ever pay for something they can get for free.” (Jerry 2008)

Still, people subscribed. Cable provided a tremendous service for those who couldn't receive signals by local affiliates. It rapidly became part of the television landscape. Fifty years later, the television world is littered with cable conglomerates who now compete with satellite companies by offering hundreds of digital channels and consumer-friendly interactive services. In this paper I will discuss the advantages Cable customer service offers over Satellite, through the help of company, 'Time Warner Cable'. (Jerry 2008)

Company Overview

Time Warner Cable is the cable television provider component of AOL Time Warner's portfolio. Trends such as rapidly changing technology, increased competition, increased number of services offered, and changing cultural demographics are driving the need for a flexible and often updated marketing plan. Time Warner Cable is well positioned to take advantage of its outstanding product offerings and experience in the market in order to increase revenues by expanding the subscriber base and its revenue per subscriber. (Steven 2006)

Executive Summary of Marketing Plan

Our analysis of Time Warner Cable's (TWC) market is represented by four major points. First, TWC offers cable television and associated video services, broadband Internet service, and digital telephone service to their six regulated territories representing a 13% market share in the Los Angeles area. Second, these residents generally have higher incomes, are better educated and are more “tech-savvy” than the average City and County of Los Angeles resident. Hispanics make up 28% of this market, and this percentage will greatly increase in the near future. Third, TWC is operating in an environment of an economic downturn, rapidly advancing technology, a regulated industry limiting their market share, and greatly increased competition mainly represented by satellite television providers. Finally, the strengths and weaknesses of TWC lead to opportunities to fill out their current customers portfolios and market directly to their current cable customers while offering threats embodied by their affluent and free-spending satellite competitors and other providers of video entertainment, Internet providers, and phone companies. (David 2009)

Description of the Target Market

The average cost of cable in the home has fallen significantly over the last few years, and it is important to take this into consideration when focusing on the needs and wants of the target market. The target market for this company is educated, above average income individuals and families age 21-60. The target markets TWC should focus on to increase revenues and market share in their prospective business segments are Hispanics, individuals with college and masters educations, and those with above average levels of household income. TWC may also want to focus on individuals whose homes exceed the average median price for LA County. Research data has shown that these segments offer significant room for growth over the next 10-20 years and ...