Cesar Miranda Roku Final Project MArketing 4.27

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“The New Streaming SuperStar ”

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Roku is a type of Media Stream Box that can be connected to your Television via Internet Connectivity and Stream a variety amount of Online channels, TV Programs, Movies and APPS. There are several models and the model hat will be discussed is Roku 2 XD that was Released July 2011 Roku 2 XD is manufactured and produced by Roku Inc. Roku Inc. was established in 2002 in Saratoga CA. and its early product was Spundbridge which is a device that streams internet radio music. The first generation of the Roku Media Stream Box family was the Netflix Player Released in 2008 Netflix Player 2008 Roku 2 2011 What is Roku?

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Why do I need Roku? It converts a regular TV into a Smart TV giving the user access to many free channels and programs without having to spend Much money. 40 in Smart TV average price $600 Roku 2 XD $79.99 Current TV Smart TV and Save $$ It is cheaper than cable or any Dish services since there is no Monthly charge. You only pay for the channels you subscribe to. Roku Offers you to pay only for what you need or have a desire to watch. It Allows users to keep up with old shows and programming not available in Regular TV or cable. Connect to Social Networks Like Facebook through the remote control On Demand HD new release movies through VuDu channel and eliminate Having to go to block buster or redbox to rent movies

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Roku and the Market Type of Market- Media stream boxes/devices. Apple TV Player Logitech Revue Roku XD Boxee Me too imitator? Yes. There are over 15 different type of media boxes that have the same fundamental function which is to stream media from the internet. It offers many similar capabilities then other players, but offers different marketing mixes. TOP COMPETITOR:

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Target Market and Positioning / Segmentation “Our target audience is people who watch TV ,” – Anthony Wood Roku CEO As the numbers show, people in the US spend on average about 130 hours a month watching television with an average of 2 televisions per household. That is a significant amount of time and a an opportunity to offer a substitute for accessing entertainment on TV through a media box. About 6 million videos are rented daily and Roku is the middleman between online channels who offer unlimited amount of on demand movies and shows and the consumer who wants the convenience of renting a movie or show with a click. US households with High Speed Internet Access who enjoy on-demand movies, shows.

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According to : National Cable & Telecommunications Association There are about 47 million internet customers in the United States Allowing products like Roku to be used and provide streaming media to a television. US households with High Speed Internet Access who enjoy on-demand movies, shows. Target Market and Positioning / Segmentation

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Target Market (Summary) Roku is an inexpensive device that connects streaming Internet Audio and Video to a TV watching audience. This product is aimed for consumers whose lifestyle include watching movies, sitcoms and specific type of shows. Roku offers interest specific channels that cater to an individual’s interest and TV watching needs. Some of these channels are free and other on a monthly subscription base of around 9 dollars. “I have 500 cable channels and there is nothing good on TV.” With Roku, a customer only pays for what he is willing or enjoys watching eliminating cost and unneeded channels. Roku aims to a market to satisfy the convenience of watching a show or new released movie. With Roku there is no more need to driving to a local blockbuster or RedBox to rent a movie. With a quick search tool and a credit card, you can rent a movie online and stream it to a television in a matter of minutes. Roku is cheaper then cable and aims at TV watching people who do not have cable and don’t want to spend the money on cable and just pay for what they watch Source: Roku Company Research and Survey About 20% of the customers have dropped cable services making Roku a substitute product for them.

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New International Market January 10, 2012 Roku Expands its Market to the United Kingdom Currently offers about over 300 streaming media channels UK Users First Media Player to deliver Netflix to the UK Will also offer a variety of US Streaming channels Crackle (UK only): Free on-demand films and TV series from a wide range of genres, including Action, Kung-Fu, Horror and Comedy Number of units sold so far in the UK Market undisclosed April 16,2012 Roku is Available in Canada Currently offers about over 250 streaming media channels UK Users. Number of units sold thus far not disclosed

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Market Share and Competitors 5 million Roku boxes sold in the US

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Comparing the Market

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Marketing Mix: Product Offering 4 different models with different prices. Different Models offer different capabilities to what a customer might need Different Prices gives the customer a choice to choose the amount of money to spend on a Media Box. Someone that can not afford a 99 dollar media box like Apple TV, may be able to afford a media box for under 50 dollars. Specs Chart from Roku.com

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Marketing Mix: Product Offering Packaging Small box with 4 components: Roku XD Box Control D C Plug-in Adapter And TV Cable Roku 2 is very easy to use and a user can set the device in a matter of minutes only requiring a WIFI Internet Signal. This offers the convenience of easily setting the product up. Image from actual Roku Instruction Manual

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Roku offers the capability to stream online content from your WIFI Connection to your television. Have access to over 700 online channels in the US both free and some with A monthly charge from 10 to 20 dollars. Allows users to stream and play games such as angry birds. Marketing Mix: Product Offering Roku.com

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Marketing Mix: Distribution Indirect Roku is available in online retail stores like Amazon to physical retail stores like BestBuy, Target Walmart And others. Direct: www.roku.com Roku.com offers all of its products for sale with free shipping and promotional deals.

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Marketing Mix: Price US prices Canada price Only Roku 2 XD model available in Canada. www.roku.ca UK Price Roku XD not Available in The UK. www.roku.uk

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Roku stimulates Customers to Refer the product to friends and Family with An incentive. Roku.com Marketing Mix: Promotion/ Ads

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Apple VS Roku Modern look More channels Easier to use based on CNET reviews Easier to search for specific shows based on actors or titles Only applicable with I tunes Appeals I tunes users Less channels Who wins?

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References www.roku.com Google/images http://www.ncta.com/industry-data