Direct TV is proposing a marketing plan to increase referrals among existing subscribers aged 35-50. The plan includes offering personalized referral offers through various channels. Key tactics include a sweepstakes for sports tickets, a partnership with United Airlines for inflight referrals, price matching competitors' offers, and sending holiday greeting cards. The marketing objectives are to increase active subscribers in the referral program by 5% and have 50% of new referees continue participating. The budget is $1 million and the projected return on investment is 800%. Participation and referral rates will be evaluated.
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%
1. 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
Editor's Notes
Companies in this industry distribute TV programs on a subscription or fee basis through direct broadcast satellites.
Satellite TV services are a discretionary purchase for most consumers. As a result, the industry is very sensitive to changes in economic activity. Lower disposable income during the recession hurt the industry's ability to hold onto existing subscribers and attract new ones.
Companies in this industry face high initial costs, but then enjoy low costs per additional subscriber.
As internet speeds increase and data compression technologies become more widespread, streaming video has become a viable alternative to watching TV for many consumers over the past five years.
Wireless
record up to five shows
play on any screen near you
Bundle with AT&T
MVPD: multichannel video program distributor
As internet speeds increase and data compression technologies become more widespread, streaming video has become a viable alternative to watching TV for many consumers over the past five years. With a large increase in the number of consumers with wired broadband connections and broadband-enabled mobile devices, a significant amount of video content has become available through the internet. Some examples of legitimate streaming services that compete directly with subscription TV include Netflix, Amazon, YouTube, Hulu Plus and Vudu. Apple TV, Roku and Chromecast.
rach
liiiiiiiiing
About the web:
- age of visitors: 35-44: 21.77%, 45-54: 24.32%, 55+: 35.54%
- household income of visitors: 30-60k: 31.81%, 60-100K: 23.11%
ling
About the web:
- age of visitors: 35-44: 21.77%, 45-54: 24.32%, 55+: 35.54%
- household income of visitors: 30-60k: 31.81%, 60-100K: 23.11%
LING
Among ____existing subscribers_________(target audience)
◦______Directv refer a friend______(product/service name)
◦is the customized satellite referral program for you and your family__(competitive set)
◦that __tailors to your hobbies and interests___(benefit proposition)
◦because it offers personalized packages to enrich user experience___________ (product support)
ling
Though more subtle, gender nuances still exist within Generation X. We connect with Gen X’s women by using sentimental milestone events, like a daughter getting her first job away from home city and receiving a DIRCTV referral from family, or a son’s moving to his wedding house and receiving a greeting card with DIRECTV referral offer from home, to create an emotional appeal.
A more direct approach will be utilized to relate to men in this segment, sending out referral offers with sweepstake of F1 tickets and NBA/MBLA/NFL tickets to appeal to their masculine sensibilities. Appealing to the desire for authenticity, imagery featuring realistic events that may occur or have occurred in the lives of Gen Xers is likely to resonate.
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facebook
seo
email
NFL (9-12) 11-12 : super bowl 2016/2/7
MLB (4-10) 8-10
NBA ( 4-7) 5-7
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At Nordstrom, THEY are not only providing the best customer service, but also committed to offering CUSTOMERS the best possible prices.
We will match our competitor's pricing if our subscribers ever find a better referral deal, in any form, available from a similar provider. and create the buzz by encouraging referree share their deal finding experience on FB
-stimulate the program engagement rate
-improve customer retention
-encourage others participation by social influence
for example, comcast they offer Existing customers who refer new customers can receive
• $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 who qualifies under the Program
• Plus, an additional $200 Visa® Prepaid Card for the third referred new customer who qualifies under the Program.
lu
Sending selected group greeting cards on holidays like Mother’s day and Christmas
Biran Roberts-comcast ceo
lu
Sending selected group greeting cards on holidays like Mother’s day and Christmas
Biran Roberts-comcast ceo