Roku Marketing Situations, Opportunity, Marketing Strategy and Implementation Plan - Case Study Example

Marketing Name Course Lecturer Date Table of Contents Table of Contents 2 Business Situation 3 Evolving Television Advertising 4 Target Market 5 Threat 6 Opportunity 6 Description of an appropriate organisation 6 Market Segmentation 8 Strength in the Target Market 9 Weaknesses in the Target Market 10 Goals and Objectives of Measuring the Level of Performance 11 Specific Activities to Reach the Particular Goals 12 Live Streaming Devices 13 Monetizing opportunity 14 Distribution options 14 Consumer Usage Patterns 15 Conclusion 15 References 17 Introduction This report deals with a marketing plan that relates to the live streaming of internet content through the television. ROKU Company has been considered as a feasible propagator of the innovation. This is majorly because the company was able to identify and exploit the business opportunity regarding the integration of the internet with the television. The internet has continuously gained popularity over time Business Situation New forms of consumer electronic products are continuously being made and marketed. There are many developmental endeavours that have been directed towards the convergence of the home entertainment systems that mainly is the television (TV) and the computer technology. The integration of the television and the internet has created mutual benefits for each of the sides (Proulx & Shepatin 2012). The internet has continuously gained popularity over time. A representation of the internet users in the world by Geographic Regions is represented below as at 2014 (Johnson, 2014). The mobile, the social media and the web are rapidly converging with the television. This affects the way in which programming is experienced. The indication with this progress is that we continuously have the two arenas evolving. This helps end the fear that the progressive popularity that the internet continuously has will completely overshadow the need for television. Evolving Television Advertising As the television continually evolves, so does its advertising. Target audiences have been able to be reached out with greater ease. This open a new opportunity for marketers in the reaching and engagement with the customers. The shifting television landscape creates a huge divergence in which issues are approached. The efficiency of engaging with the public online in relation to the television devices that are created is brought to a peak. When the social conversations are brought to the forefront, simultaneous discussions are achievable even at local households. When people are exposed to what they are supposed to do in handling the interactive television technology, they will respond incredibly. Target Market An expansion of streaming of content live on televisions and through the internet is in a general sense an opportunity for all. This is considered so due to the enormous numbers of the people who have been hooked up to the TV over time. It has developed as a lifestyle that there is a great percentage of people who have been used to watching the TV. This is as a result of different motives like sports, news, movies, business, adverts, entertainment etc. The scope of coverage is, therefore, in a sense all-inclusive. While we consider the greater percentage as those who are involved, there are specific groups of people who are targeted more. These groups are mainly young people and middle aged people. This is because young people have been driven into the world of technology and prefer and love using the internet. Middle aged people would be more attracted to channels which are streaming live. Having the development of the proper devices that addresses these groups at their point of need ensures that the specifications of the groups are met. The line of the proposition that is hereby emphasized is that which specifically covers these groups. Seeking to merge the internet with the TV in a more integrated way ensures that young people who are more inclined to the internet are able to derive maximum satisfaction. The middle aged group will be at a position of encompassing greater view in terms of the resulting features that come with the devises. Availing a variety of live streaming to the greater scope ensures that the people who watch the TV regularly are not feeling threatened by the thoughts of missing a lot in what is happening around. Threat There have been an undeniable dynamism of lifestyles and consumption of the media. The industry of the television has been a model of success since the 1950s. In the face of internet-based competition there is, however, an intense pressure in the efforts to maintain the revenue margins and revenues. With this kind of threat, sustainability of the television industry demands a significant change in the nature of their programming and even entering into the online space. The existence of the mode of doing things in relation to the television programming is bound to change. However, with the adoption of the new devises will ensure that television industry stands out and that there is continuous adaptation to the changing technological and lifestyle demands. Opportunity With the desire to access content at relatively lower cost and without any time restrictions; the online streaming as a means of watching TV is continuously attracting more attention. News programs and sporting events continue to be a great contributor to the need for the shift. A re-examination of the way in which the industry is in operation must be rapidly done in the face of this evolving landscape. The need for more convergence of the internet and the TV provides an opportunity for more innovation. A technological revolution is needed that forms a closer interlink. The development of a successful model that will integrate the shifts in consumer behaviour and the technological systems in the streaming of internet content through televisions. Description of an appropriate organisation There are various companies that have come up very strongly in their endeavours to provide the right devices that are needed for live streaming of the internet content through the TV. They continuously explore the different options that are there in order to enhance competitiveness. Such companies include Boxee, Google, Apple and Roku. There is a greater opportunity that is availed for these organisation especially as they seek to respond to the growing need of being connected to the technological channels. (Zoric, Barkhuus, Engström & Önnevall, 2013) Roku Company, a private business organisation that is located in California at Saratoga, is among these companies that have specialised in the provision of these devices that are used for entertainment streaming in TV. The company has over the years been able to manufacture an assortment of digital media players that enable customers or consumers to access audios or videos that have been streamed from the internet through televisions. This organization has a wide range of experience in this field and is better positioned in the provision of the devises. (Krishnan & Sitaraman, 2013) A thorough awareness regarding the obtaining and the usage of the devices need to be done. In addition, there is a progressive need to having an established channel of innovative gadgets. These entail those which are highly enhanced in areas such as speed. Allowing for optimum connectivity through the Company will ensure that the coverage is enlarged. The people who have been able to integrate this technology is relatively low in comparison to the expected class. As such, the Company stands a great chance of enlarging its customer base as well as ensuring that it improves in its alignment to the technological advancements that happen by day. One of the way to ensure this is that of enabling the devices in such a way that they will have software which can be updated with ease. This will ensure that the customers are not inclined to pressure of purchasing new devices every time there is a technological shift. This will allow for sustainability that is ensured by the progressive coverage of the customer needs. Market Segmentation The market relating to the devices used for entertainment streaming in TV can be segmented into two main groups. This is on the basis of the people who are the target. The scope is global since the internet coverage takes a global scope. The two categories are the young people and the middle aged people. There is an expectation that success will be achieved majorly through these two groups. This does not mean, however, that the other categories of people are non-contributors. The interest that the internet has developed cuts across generations. There are specific categories that are seemingly of relatively greater significance as far as this consideration is done. The young people have a wide consumption base of the internet. An improved connection of the TV with the internet will ensure that the young people group are highly engaged. The middle age also forms a great base in that they are equally able to respond sufficiently as they would be more attached to channels that are live streaming. The ability to identify the market segmentation will ensure that there are very fruitful efforts that are sufficiently developed. This is done in such a way that ensures that maximum efforts are directed towards the right channels of operation. The link that is there between the right channels and the output that is realised is made sure through the appropriateness of the schemes that are developed. The customers can be able to appropriately identify with the devices that is availed with them at a relatively minimum effort of persuasion. The new developments are easily notable to the groups that have been able to subscribe to the earlier offers. Through the marketing strategy that is set out, the company is able to ensure that there are sufficient efforts that are directed towards having a broader base. The company is also set out to explore greater possibilities in the area of operation. While, on general terms, there is a greater possibility to having a particular category reached out a redefinition of these categories must be done. This means that there is a possibility of having within these best categories an outlier set. There may be a group, say in a particular region or social status that may not yield strongly positive results even though they are in the category of the young people or the middle age. Similarly, the other categories not fully included in the highly preferred segmentation will have outliers. This as a result of the different inclinations that in operation in the particular regions of existence. The prudence of ensuring that there a cohesive system that is meant to choose between the particular needs of various groups is therefore strategically needed. Strength in the Target Market The internet continuously integrates the world thus ensuring a wholesome advantage. The benefit that is linked to the system of providing a chance for the streaming of content live is that it is a growing venture. The young group and the middle age group continuously adopts the internet consumption as part of their lifestyle (Zibriczky, Hidasi, Petres & Tikk, 2012). This familiarity yields an ease in usage that allows for an expansive exploration. The connection of the channels with the internet is, therefore, a provision for progressive likelihood of categorised features improvement. The internet has been known as a channel through which technology is developed and shared. There is a greater chance for bringing about sustainability in the TV will be enhanced when this innovation is continuously developed in the industry. As more channels continue to adopt this, in a global perspective, the company will progressively be highly advantaged (Soursos & Doulamis, 2012). The internet is continuously being made cheap and readily available. This means that the likelihood of having a broader base of operation that avails the devices at cheap, yet competitive prices will be ensured. Roku Company extends the scope of operation through their devices or boxes for streaming at affordable prices in comparison to the other companies. Another advantage of the target market is that it demands high quality. It is not uncommon to see people rejecting many of the electronic gadgets on the basis of their originality. This kind of sensitivity is bred on the ground of goods that are of low quality in the market. The confidence that the company has been able to instil to the people in general is of great advantage in that it allows for a broader coverage. The goodwill that the company has been able to develop over time will ensure that it is at a position of engaging a wide group. The growing usage of the internet is at per with the need to have the streaming devices expand. Weaknesses in the Target Market The target market has a high reliance on the streaming of the internet content through the television. The identifiable weakness majorly lies on the possibilities of the multiple choice that will inhabit the major programs that the TV set out to provide. For specialisation to be enhanced, there is a need to cover a specific line of doing things. This may, however, be challenged by the divergent need that is there regarding the type of coverage that the various customers may demand. The main danger that can result from this is having a complete overshadowing of the main programs that the industry provides. The providers of other links in the internet will therefore tend to benefit more in the long-run in revenue terms. This dilemma pauses a great challenge to the effort of having progressive devices that are internet enabled. The situation may end up being the same as that of the usage of the internet from other means like the mobile phones or the computers. Another weakness that is associated with this target market relates to the inability to be stable on one line of experience over time. Exploration is of importance since it ensures that the customer arrives to what is best in the market. However, this has the effect of bringing about a reduction in the customer loyalty to the degree that this is supposed to be. Taking a case of possibilities of reaping best profit from any venture, consistency is of fundamental importance. The delays that can result from having a wrong foundation in the scope of operation due to the instability caused by the shifts can be very extreme. Goals and Objectives of Measuring the Level of Performance i. Ensuring that the partnership base is expanded at individual and organisation base. The target is that of making sure that there is no loss or risk that will paralyse the operations of the Company. The existence of the company is of great importance as far as the success of the innovative product is concerned. ii. Ensuring that the technical team is large enough and that the skills which they have is properly facilitated. The innovation that continues to be perpetuated through the proper integration of the right technology emanates from having a broader set of technical group. The focus is that of having a dependable system over the time that can ensure competitiveness is achievable. iii. Bringing about a broader awareness that ensures that there is no lack in terms of the information that should be availed to the customers. There is a need to enhance sustainability which is only achievable where the customer base is enlarged. The goal here is to bring to a large base of customers the services that are of greatest satisfaction to them as well as ensure that the customer loyalty is sustained. Specific Activities to Reach the Particular Goals i. Creating a wide scope of partnership with more people and other companies. This ensures that the market needs is encompassed appropriately. The different shocks that the market experiences over time can be spread out. When there is a rapidly high demand, the Company is at a better position to ensure that it responds to such a need through engaging the partners. On the other hand, when there is a big risk that the Company engages in, there is sufficiency of support that ensures that it is spread over a wider scope thus bringing about stability in the company. ii. Increasing the number and the skills of the Company’s technical team. This is an effort that primarily stems from the acknowledgement that the live streaming devices are a matter of developing technology. The ability to have a purpose that cannot be thwarted is just a case of expanding the know-how. The Roku Company is only able to sustainable handle the innovation on the platform of engaged technology. The expansion of the technology requires researchers who are able to have deep insight in matters relating to technology as well as very sensitive to the changes in the market and the customer needs. iii. Engaging more in the consumer awareness programs. The consumption base of these devises ought to be fully developed in terms of the numbers that are made aware of their existence and usage. While there is an ability to bring about an expansion of the scope that the Company is able to cover, refined efforts must be exposed. This is in terms of market target and market segmentations that have been identified. There is a great opportunity especially as linked to the internet that is able to bring about a free set up of business that thrives in its performance Live Streaming Devices When the digital media players and other devices are developed and harnessed in such a way that ensures there is efficiency. With a home that is equipped with a reliable high speed internet connection, a lot of the digital solutions will be available for usage. LOKU-LT Streaming Player In addition to the subscription that is done online, there are particular benefits that are linked to the usage of the enabled television. The assertiveness that is demanded in the ability to have the proper usage of the live streaming devices. This relates to the ability to be explorative and decide which of the content is best placed. There is a variety of options that the innovation brings about especially in the sense of its connectivity to the internet. Exercising the will-power of the customer is greatly enhanced whereby the limitation to only what is provided or dictated is enhanced. Monetizing opportunity The venture of establishing the right channels in the course of having devices that are reliable is of importance. This is especially so in relation to the prices that are offered. Having competitive prices of the device is of great advantage. Some of the gadgets ranges from $39.99-$64.95. Expanding the base through the scale of the young and middle aged people will ensure that there are economies of scale. Although it may appear that the range provided is relatively low, the ability to take advantage of the wide group makes sure that there is enough to cover for the costs and have an established revenue. The other competitors may charge higher prices but the coverage level is low. Distribution options The convenience that the customer can experienced is based on the ability of the company to avail the particular services to them at a local level. As such, the live streaming devices are to be supplied on a large scale basis to the retail places. The company makes a sober consideration of the transportation costs in their analysis so as that the prices are not inflated at the expense of the consumer. One of the measures that will ensure that this is a workable plan is in regard to the establishment of a cost monitoring scheme. The other brands that provide similar prices are managed in such a way that they meet the particular needs of a region without adversely affecting the market share that Roku Company have (Huysegems, Vleeschauwer & Van Leekwijck, 2012). The importance of the considerations that are made relates majorly to ensuring that the distribution schemes meets the customer need. This is done in such a way that allows for an established customer loyalty that the company can rely upon. Having an established distribution channel will allow for flexibility where there are new releases and top selling options. Consumer Usage Patterns It is no surprise that consumer usage patterns are progressively responding as the internet content is accessed on multiple types of devices. The content companies continue to report good responses to the ad strategies that are tied to online streaming of high-value programming. (Hutchins & Rowe, 2012) Conclusion This report has considered a marketing plan that relates to the live streaming of internet content through the television. ROKU Company has been considered as a feasible propagator of the innovation. This is majorly because the company was able to identify and exploit the business opportunity regarding the integration of the internet with the television. Although there have been commendable progress that relates to the ability of the company to reach a wide range of customers, there is a need to ensure that the loyalty of the customers is highly ensured. This is achievable through making a projection of the market conditions and the technological shifts that are realisable. Commitment to the course of operation that is not biased in view will enhance the stability of this project. References Hutchins, B., & Rowe, D. (Eds.). (2012). Sport beyond television: The Internet, digital media and the rise of networked media sport (Vol. 40). Routledge. Huysegems, R., De Vleeschauwer, B., Wu, T., & Van Leekwijck, W. (2012). SVC‐Based HTTP Adaptive Streaming. Bell Labs Technical Journal, 16(4), 25-41. Johnson, S. (2014). How to Get Rid of Cable TV & Save Money: Watch Digital TV & Live Stream Online Media. Tech Media Source. Krishnan, S. S., & Sitaraman, R. K. (2013). 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