1. Direct TV
DIRECTV Marketing Proposal 2015
Group Oriental Pearl By Rachel Fan Pan, Ruimin Gong, Lingfan Ni, Xiaoqi Lu
2. 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
3. Situation Analysis
Economic 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
Consumer
The majority of this industry's customers are residential
households, more than 90% of American households still pay for
TV
4. 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
5. 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
6. Key Competitors
Traditional 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
7. Key Competitors’ Referral Programs
AT&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)
8. 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.
9. 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%
10. 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.
11. 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.
12. 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
13. Tactics
● Promotion: Sweepstake-Live Sports Tickets
● Partnership: United Airlines Inflight referral
● Generate Buzz: Price Matching
● Direct Mail Plus: Send Greeting Cards on
important holidays
14. Media Mix
Traditional
● Direct Mail
● Social Media
● Digital
Advertising
● OOH
Alternative
● Buzz
● Partnership
Promotion
● Sweepstake
15. 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
16. Partnership: UA Inflight Referral
United 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
17. Buzz: Price Matching
WE’RE PRICE MATCHING
If 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
18. 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!
22. 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%
23. 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
