Case Analysis for Zenith MR for HDTV p

8/9/2019 Case Analysis for Zenith MR for HDTV p

1/19


2/19

Industry Analysis

• Mature and highly competitive

• ey !layers: Thomson "##$%& Zenith "'#$%& !hilips"''$%& (ony ")$%

• *e+ products see high initial adoption then graduallyslo+s do+n as it matures "e,hi-it # . analogy +ith

Color TV& VCR / Ca-le%

• High Volume / 0o+ Margin

'123'12#'124'12)'125'153'15#'154'15)'155'113

3'333333#333333633333343333337333333)333333233333353333331333333

Sales ($)

(ales "8%


3/19

en t s pos t on n t eindustry

Category Rank 1 Zenith’s Rank Repurchased RCA 2

Reputation Zenith 1

Latest Features Sony 2

Failiarity Zenith 1Less !"pensi#e Zenith 1

Recognition Zenith 1

#erall %randRating

Zenith 1

• Zenith purchase decision in&uenced 'y paste"perience ore• Sony leads in perorance and eatures• RCA leads in price


4/19

Maret !otential -y #3th Century for HDTV

*o ofHouseholds

*o of Households"'111%

*o of Households"#333% !rice

Total TV Industry '3' mn

HDTV Industry!enetration '3;'# mn #7 mn

8''35


5/19

Calculations

'11# '116 '114 '117 '11) '112 '115 '111 #333

Households+ith TV

1#'33333 16616273 14)52733 1715'#7312#27333157)5273115)#733'3''7)#7

3'3#47333

3

>orecast $

TVHouseholds 4 '3 #';4 6#;5 44;# 77;) )2 2#;4 22;5

Color TV # 4 2 '6;5 #3;) #2;4 64;# 4' 42;)

Ca-le # 4 2 5 1 '3 '' '# '6;)

Household>orecast

TVHouseholds

6##6733 )''7527 '4'42#73 '2664)33#7))3173#1'46#27622)4)336742#7#744#66727

Color TV '54#333 '516273 426462757''362;

7''7#2)'#

;7'7453##7'5)2#273

##53'6'#;7

#71)4552;7

Ca-le '54#333 '516273 4264627 #144'#7 75'3)#7 434)#73 )165)#7 7#33'#7 5266327


6/19

?hat (hould @ruce Hu-er Do

• ropose to adopt Aspect Ratio study* Secondary Research+ Focus ,roup research in 1--.

• /nno#ators + 0ualitati#e Research* research and3ealer Research could 'e pursued in 1--1

• reerence test in 1--2

• ost launch Consuer A4areness sur#ey in 1--5

• Launch a pilot pro6ect and de#elop 7389 prototypes tolearn consuer responses through actual trial 'eorelaunching actual odel

• Colla'orate 4ith the :apanese to de#elop the 7389

prototypes and 4orking odels• sa#ing R+3 Cost ; estiated around $


7/19

(cenario9s deBned• essiistic Scenario

•

HDTV -roadcast issues are resolved• HDTV sets are readily availa-le

• uality HDTV programming is not availa-le

• Consumers do not see the -eneBt in paying higher price

• (ales +ill suer and HDTV +ould only -e a-le to penetrate 6E4$ of


8/19


9/19

Alternatives for Zenith9s MR=arketing Research !stiated Research

CostLaunch 8ie

Focus ,roup $>.*... Fe4 =onths

7389 ConsuerResearch ()

$1.*..*... Fe4 =onths(su'6ect to

a#aila'ility ounds)

Aspect Ratio Study $12


10/19

'113

7ead G o total 'udget Aount(8otal H $2 $1I.*...

Color TV Research '5 813&333

7389 Aspect RatioStudy

2< $12


11/19

Tentative Research !lan for '113

Research7ead

8entati#eLaunch tie

!stiatedResearch Cost

%udgetAllocation

Aspect RatioStudy

1--. $12.*... =iscB %udget1--. ($


12/19

'11'

7ead G o total 'udget Aount(8otal H $


13/19

ther Initiatives

• !reference test can -e conducted in '11# J '7$ of the total mareting

-udget allocated last year

• Consumer A+areness survey can -e launched in '114 J #3$ of the totalmareting -udget "reference: '11'K1# -udget%

• /nternet &ourishing in S 'y 1--. s and usage o internet tocreate 7389 a4areness could gi#e Zenith the Mrst o#er

ad#antage in internet arketing• Launch a pilot pro6ect and de#elop 7389 prototypes to learn

consuer responses through actual trial 'eore launching actualodel

• Colla'orate 4ith the :apanese to de#elop the 7389 prototypesand 4orking odels

• sa#ing R+3 Cost ; estiated around $


14/19

(hould Zenith undertae the Aspect Ratio(tudy

•*o& Zenith should not undertae the Aspect Ratiostudy as a tool for mareting research

• !ros: The Aspect Ratio study could indicate

• customer aspect ratio preferences&

• determine preferences at dierent prices&

• changing preferences +ith program content /

• changing preferences +ith diagonal siLe variances

• Cons:• Customers +on9t have the e,perience of HDTV resolution

+hich might undermine the product -eneBt

• 0arge screen color TV9s are already proliferating . HDTV as

+ider TV only might -e seen as a variant of the same andnot ne+ innovation


15/19

Alternative ResearchDesign

• Develop a pilot proFect and manufacture HDTVprototypes to test customer preferences

• Colla-oration +ith the apanese can speed upthe process and lo+er R/D costs

• Customers can get real feel of the HDTV +hich+ould help in its rapid adoption

• To -e adopted -y end of '11'

• sa#ing R+3 Cost ; estiated around $


16/19

Analogy to previous innovations . Assessing HDTVMaret !otential

/nno#ation CA,R enetration ,ro4th eriod

Color TV ''$ 24$ '3 years

VCR 6)$ ))$ 7 Nears

• @e4 products adding #alue to #ie4er e"periences are

adopted rapidly• Sales o Large Screen Color 89 'et4een 25?2N G till 1-N-*considera'le share or large screen• ast !"perience* rice + roduct eatures crucial eleentsin understanding consuer 'eha#ior


17/19

Role of MR for CD innovations

• Identify the product Btment to the consumer9s preferences

• Identify the perception of the maret segment targeted to+ards ne+innovative and value adding products

• Identify the consumer needs that the ne+ product +ould serve

•Determine maret readiness for the innovation at that particular time

• Determine the addEon features that might -e added to stimulate -uyers

• Determine the price dierential preferences of the consumers

• Determine the features and attri-utes customers are +illing to pay

e,tra for• Determine the overall acceptance of the consumers

• Oducate the customers a-out a ne+ product that is a-out to enter themaret


18/19

MR feed-ac useful in strategyformulation for HDTV introduction

Research seulness

7389 Consuer Research ClariMes is?c.nceptions on 7389acceptance

Aspect Ratio Study 3eterine Consuer Aspect Ratiopreerences + corresponding changes4ith price* progra + diagonal siOes ; todesign the product accordingly

3ealer Research 3eterine the e"tend to 4hich a dealercan in&uence 'uyer 'eha#ior and pushthe product

Secondary Research !stiate arket siOe and gro4th

0ualitati#e Research !"plore 'eneMts that custoers seek in

7389reerence test 3eterine ptial pricing and #olue

paraeters

7alo !Eect Sur#ey 3eterine Custoer A4areness o 7389

Analogy 4ith e"isting products ,ro4th potential


19/19

Than Nou PPP

Case Analysis for Zenith MR for HDTV p

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