1) Zenith is considering conducting marketing research to forecast demand for its new HDTV product with a wider 16:9 aspect ratio screen. 2) The group evaluated several research alternatives and recommended qualitative research with early adopters to understand factors influencing early adoption. 3) The plan of action involves designing the research, developing questions, sampling participants, and identifying factors that will determine pricing preferences and inform future marketing strategies.

1. Zenith – Marketing Research for HDTV Case Analysis
Section A, Group 5
Dhiraj Agarwal, Soumitra Dubey, Akshay Sharma, Harish Vijayan, Thotakura Hiteswara Sai Girish,
Shreyas Gupta, Kapil Khattar
The quality goes in before the
name goes on.

2. Introduction
Zenith Electronics was founded in 1918
by the duo, Ralph Matthews and
Karl Hassel.
The company entered the television market in
1940s and soon grabbed an exorbitant 22% of the
market share, owing to its high quality products..
The American brand dealt in consumer
electronics, color picture tubes and computer
monitors, cable products and high-tech electronic
components.
Internationally Zenith had its presence in
places like North
America, Germany, Thailand, Cambodia, La
os, Vietnam, India, and Myanmar.
Zenith was the inventor
of subscription
television and the
modern remote control.
Headquartered in
Glenview, Illinois, Zenith
employed around 32,000
employees worldwide.

3. Explore it the way we explored it.

4. PROBLEM DEFINITION
Now, to find an absolute answer for their question, the
company had to decide how to forecast the demand for the
new product.
Now forecasting the demand is only possible with the help
of an appropriate marketing strategies. So the managers at
Zenith had to come up with a few alternatives of conducting
an effective research, and do the analysis for the same.
The board wanted to know if entering the HDTV segment
with 16:9 Aspect ratio is worth investing or not.
The company wanted to be a dominant player in the
electronics market, and venture successfully into a new
product.
To Decide An Adequate Marketing Strategy For Forecasting The Demand Together With
The Consumer Preferences For The New Wider Screen Format Implied By HDTV.

5. 4 P’s
Product Price
Place Promotion
Most consumers shopped at a number of
stores and got the most information at retail
outlets rather than through advertising.
Thus the 24*7 availability of the brand in the
outlets made a huge difference.
Advertising with an informational,
product-oriented focus seemed to go
unnoticed, whereas consumers noticed
ads for store specials and sales. Only
for some was buying American brands
important.
All consumers had a ballpark budget and
stayed close to it. The lowest price was not
usually considered an advantage since most
consumers were suspicious of products that
were too cheap. The usual pattern was to seek
the “most” TV that could be purchased with
the budgeted amount of money.
Picture quality was the most important
evaluative criterion. Also considered were
product features (such as remote control,
and stereo sound), style, and warranty.
Particular TV brands were not considered
as status symbols in general. However,
larger screen sizes were a status symbol for
some consumers.

6. • Consumers
valued picture
quality for
choosing TV’s
• Larger screen
size added more
value to some
customers
• One-third
consumers of
zenith were
feature buyers
• HDTV was
considered as
premium price
product compared
to NTSC
• Many consumers
were skeptical
about the price
range
• Consumers were
suspicious about
low cost products
• Products were readily
available
• Most customers
shopped at retail
stores, therefore the
company focused more
on retail outlets.
• These retail outlets
played a significant
role in informing the
consumers about the
brand.
• It had a “Pull”
communication
strategy
• Advertising
theme depending
upon the target
market
• Advertising was
not effective in
the increase of
sales
4 C’S
Consumer Value Consumer Cost Convenience Communication

7. STRENGTHS
Popular player in the
colour TV industry
High customer
loyalty
Justice to the
Quality Norms
Efficient
operation
management
Good market
share

8. WEAKNESS
Increase in net loss as compared
to that of the previous year,
despite the increase in sales.
Hampering the
new projects.
Business model
replication
No good advertising
strategy
Not popular among the
younger generation.
Incapability to rectify its image as a
brand for the older generation.

9. OPPORTUNITIES
HDTV Technology that can provide better picture
resolution and super digital stereo sound
Visibly different in shape and size so easy to
market
Consumers valued picture quality
and viewing experience
Increase in consumer
disposable income
01
02
05
04
03 Lucrative opportunities in global
markets

10. THREATS
06 01
02
0304
05
Incapability to penetrate the
millennial market
Home market marketing
Pool of Competitors
Considered to be an old brand
Only 3-4% of TVs were sold above $1000, with
HDTV price would increase by $300
Despite the advent of HDTV, broadcasters may
continue to broadcast in 4:3
1.
2.
3.
4.
5.
6.

11. DIFFERENT PERSPECTIVES
• As seen from the graph, HDTV
demand would be similar to the
Color TV demand
• Available content is in 4:3
format. To make content
available in 16:9 will be a
challenge.
• Adoption time required for
studios and production houses to
produce content in 16:9
• Manufacturing cost will be
increased by $300, to maintain
the margin this cost is
transferred to the customer.
Customers need to spend more
to buy HDTV
• Demand for HDTV will follow
the multi set pattern.
• Adaptation of HDTV standards
delayed by the FCC
• For the same size of TV,
consumer has to pay more in
order to buy 16:9 HDTV.
• Studios and production houses
take time in upgrading to HDTV
format.
• Venturing into a newer product
would incur high cost
• HDTV standards are adapted
well in advance by the FCC, and
thus they pass HDTV standard
by 1992.
• VCR trend will be followed by
HDTV Demand
• Consumers perceive it as a
replacement product rather
than a technological innovation
• Consumers are willing to pay
the extra $s in order to but the
HDTV.
• studios and production houses
readily upgrade their technology
to suit the HDTV format
MOST LIKELY PESSIMISTIC OPTIMISTIC

12. Production standards had to be abided by
without any failure, this at times went against
the producers and affected producers and
studios.
1.
3.
THINGS TO REMEMBER
Broadcast or
transmission
standards,
regulated by
FCC, which
affected the
broadcasters.
Display standards as guided for a television
set are to be followed by every TV Set
Manufacturers.
2.

13. AFTER 30 DAYS OF CONTEMPLATION

14. FORMULATING THE ALTERNATIVES
E
D
C
B
Dealer ResearchA
Secondary Source Research
HDTV innovators and qualitative
research on early adoption
HDTV/NTSC-TV Preference Test
HDTV consumer awareness or ”halo
effect” survey

15. ANALYSING THE ALTERNATIVES
Dealer Research
Secondary Source
Research
P
R
O
S
• Get first hand consumer
information.
• Get first hand consumer
preference (price, quality,
size)
• No additional investment
• Direct interaction with
consumers
• Brand name with
dealership.
• Would get consumer
trend towards recent
new technologies.
• Can also understand
the product quality,
sizing and distribution
strategy.
• More chances of being
accurate & detailed
C
O
N
S
• Dealer’s interest in
showcasing the new
product.
• Little cost involvement to
convince the dealers.
• Might require sample
pieces for showcasing to
get better consumer
feedback.
• Not concentrating on a
replacement products
but on new technologies
hence the consumer
trend might vary.
• While this seems like a
good idea, it might not
give the consumers’
liking for HDTV.
• High cost is involved
($100,000).
HDTV innovators and
qualitative research on early
adoption
HDTV/NTSC-TV
Preference Test
• Insight of what a
consumer actually excepts,
whether he likes the new
product or not.
• Will allow the consumers
to get a feel of the product
which will allow for
formulation of strategies
• Consumer would be able
to compare both
standards side-by-side
and their expectations of
size, screen, picture
quality and pricing.
• The innovators could add
positive word of mouth
• Members in a focus group
might be influenced by
others and moderators.
• Information may not be
considered of value if they
have predetermined result.
• Early adopters do not
represent the population
• Production of HDTV,
huge investment.
• Cost of study.
• Cost of developing.
programs to be viewed.
• Research would be done
only after the HDTV is
produced leading to delay.
HDTV consumer
awareness/”halo effect”
survey
• By doing this survey, they
would not only find out
about the HDTV market
but would also become
aware of zenith’s brand
image and purchase
considerations
• Takes long to get survey
results.
• Cost involvement of
$100,000.
• Will be conducted after
introduction so there is a
risk of product failing
before the research.

16. OUR RECOMMENDATIONS
1
2
3
From the previous researches
and market surveys, it has
been found that the following
aspects or attributes affect
the market potential /
consumer preference:
So on the basis of the above
factor , the zenith should go
for HDTV Innovators and
qualitative research on early
adoption.
From this study, zenith will
benefit from getting insight
on the various factors
affecting the early adoption
consumer. They can use this
data to market HDTV for the
early adopters when initially
launching it.
• Availability of formatted
content for a particular TV
set (as in case of Color TV)
• Price of TV sets
• Image Quality
• Manufacturing defects
• Brand Consciousness
• Advertisement and sales
promotion

17. Identify the consumer behaviour
regarding the product like their
willingness to pay, their need for
information, where will they buy
from and other related factors.
As the company is directly
dealing with its customers & the
customers give a positive
response, it will help to generate
positive word of mouth publicity
for the upcoming product
This can also help the
company create a buzz in the
market & make its product
highly anticipated.
This study would not take
time as it can be conducted at
the earliest and the cost of
conducting it is also low.
Most importantly, the company
is making losses and huge
investment in research is not
feasible currently.
OUR RECOMMENDATIONS
This will help the company
to see the customer reactions
directly & this can help them
adopt the right strategy
when introducing the
product

18. THE NEXT DAY

19. PLAN OF ACTION
FIRST 01
To conduct an exploratory qualitative research on
early response to HDTV, the FIRST STEP we
should take is to design the research project with
expected dependent and independent variables
SECOND 02
THIRD 03
FOURTH 04
Next we need to formulate a list of questions which will direct the focus
group discussions and in-depth interviews. The target population will
be people above the age of 25 who own a television set or are planning
to buy a television set. People who are willing to participate in the
research process need to be sampled based on judgmental sampling.
Participants will be selected demographically and psychographically.
The focus group discussions and in-depth interviews will determine a
list of factors which will determine the pricing preferences, expected
benefits, information collection bout the product, and the type of
outlets for buying HDTV.
These factors will be grouped into
buckets which will ultimately form
the dependent variables for the
research. Hence these variables
will be focused on to formulate
future marketing strategies and
communications to the customers.
These variables will also shape
further research to forecast growth
rate of HDTV in the US market.

20. CONTINGENCY PLAN
01
02
• Testing the preference among HDTV and
NTSC TV.
• Better comparison of attributes.
• The delay caused by the research can be
both positive and negative.
• The results, though at a higher price, will be
conclusive.