TIME WARNER CASE Study Example | Topics and Well Written Essays - 250 words

TIME WARNER - Case Study Example Statistics proves that the cable industry and the broadband market are in a growing phase. The cable penetration is almost touching 0.7 per one household as per the statistics of 2003. The broadband subscribers have increased by 44.78% in 2003 in respect to 2001. Considering this statistics and the household base of Kansas City to be 321,000 we can expect the business to grow. With a 50% market share we can expect the gross profit to be around $70, 45,950. It will important for us to know the pricing of Everest on a time to time basis, so that we can evaluate our pricing accordingly. At the same time we need to expand our base to the wider section of the metropolitan, which will provide us more coverage and market share than Everest. It is quite clear that HDTV is becoming a major component in our marketing booty. In order to plan a promotional and marketing plan, we must first understand the need of HDTV in the households. Statistics proves that the cable industry per se has decreased significantly in 2003 as compared to the 1993. It has decreased almost 20% since then. However, the Direct broadcast satellite (DBS) industry has improved manifolds. As of 2003 the percentage is 21.3% which was only 0.12% in the year 1993. In view of the above information we first need to segment the section of the population where we can target our HDTV service. Since the package is quite attractive at $5.99 per month in certain areas. The only constraint is the price of the HDTV sets. At the same time the programming aspect needs to be taken care of. Hence, we need to plan how to reduce the cost of the HDTV sets. This can only be done through large scale marketing and promotional activities, along with discounted rates. We can plan to tie up with a few HDTV manufacturing companies, which will ensure discounted price of the sets. The cost can also be borne with the programming companies which can add value to their programs. The business health of