Marketing Plan Roku

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Marketing Research Plan Roku In India
Hardik Patel MKTG 406.24
Executive Summary
The worldwide market for Roku streaming box is expected to experience significance
growth rate in the near future as a result of technological advancements and better quality of
signal transmission. Asia Pacific and Latin America markets are expected to witness double digit
growth rate in this market as subscribers are gaining access to pay TV platforms for the very first
time. Specifically in India, the availability and usage of IPTV (Internet Protocol Television)
boxes such as Roku is somewhat limited compared to other parts of the world due to lack of
awareness or promotion for the product.
Many Foreign Travelers find it extremely difficult to find a source of electronic mass
media entertainment when they travel to India. They have to rely on regional channels which is
not often in English language and without subtitles. With having Roku as an option, they can at
least spent their times in watching their favorites TV shows and movies on Netflix or Hulu
through Roku.
The target market includes middle income families in India with children from ages 5-18
and foreign travelers. Roku will presumably attract more to children than adults in India because
of wide variety of games available along with several other features.
This marketing plan will outline the improvement in brand recognition for Roku in India.
This report also highlights better usage of 4 Ps/Marketing Mix like Product, Price, Place, and
Promotion. Furthermore, this report will also discuss partnering with domestic channels to bring
the satellite providers slate of domestic content to the streaming box.
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Table of Contents
Contents
Introduction............................................................................................................. 3
Objective.................................................................................................................. 5
Competitive Strengths........................................................................................... 7
Marketing Mix.......................................................................................................... 9
I.
Product......................................................................................................... 9
II. Price............................................................................................................ 11
III.
Place........................................................................................................ 12
IV.
Promotions............................................................................................. 13
Uncontrollable Variables...................................................................................... 14
I.
Competition............................................................................................... 14
II. Government Policies................................................................................14

III.
Cultural and Subcultural Forces:........................................................15
IV.
Economy Factor:.................................................................................... 15
V. Technological Changes:...........................................................................15
Market Segmentation........................................................................................... 17
Buyer Behavior...................................................................................................... 18
Marketing Research.............................................................................................. 19
Perceptual Maps................................................................................................... 20
International Marketing....................................................................................... 21
Conclusions............................................................................................................ 22
Introduction
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Roku is a compact device that enables the easiest and most affordable access to a wide
variety of entertainment networks for American families with children through their TVs. Lots
of Americans have an access to Hulu or Netflix services and can enjoy American TV channels,
programs, series, and tons of other videos on Roku. The same cannot be said about India though.
Although Roku is available in India, people are not at all aware about the benefits and downsides
of Roku streaming box.
When Roku first entered the streaming video market, it was seen as a boon for middle
class families, who could watch streaming content from online distributors like Netflix and Hulu
Plus on TV. Since majority of population is middle class families in India, Roku can be boon for
them if they become aware of this alternative option of watching their favorite shows using
different medium.
Roku currently offers four different models which are Roku Lt, Roku 1, Roku 2, and
Roku 3. Each model contains same basic streaming function, but they have different additional
features for different prices. One of the Rokus biggest competitors is Apple TV and to a large
extent Chromecast, but Roku offers the most channels that can be streamed unlike its
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competitors.
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Objective
Current Situations:
Sales around 5%
Lacking Brand awareness
Lacking Social Media promotions
By 2017:
Increase Sales by 15%
Increase Brand recognition through increased social media promotions
Highlight the competitive price and variety of content and the social media integration
that Roku offers compared to their local domestic competition by including these details
in every message
Target primarily on middle income families with children from ages 5-18 and foreign
travelers.
Hire well known Bollywood actor or Cricketer for promotional advertisement such as
Amitabh Bachchan or Sachin Tendulkar. Mostly, Indians love their Bollywood actors and
cricketers and they will try to follow their superstars.
By 2020:
Increase Sales by 25%
Increase the frequency rate of all current advertising messages by 50 percent and extend
our reach by 10 percent.
Get sponsorship with one of the teams in IPL (Indian Premier League). IPL is most
followed domestic cricket competitions in India and played 2 months each year.
Reach 90 percent of the target audience at least twice with messages detailing Rokus
streaming device.
Partner with domestic Indian channels to show on the Roku box.
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By 2025 and onwards:

Establish a concrete brand and increase or maintain sales.
Get sponsorship with national team on Cricket or Hockey. This will increase brand
recognition worldwide.
Develop an application for mobile users to connect Roku streaming service without need
of a TV.
Use mobile advertisement to increase awareness of Rokus streaming service on
particular mobile device.
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Competitive Strengths
Rokus major competitors are Apple TV and Chromecast. Roku has competitive
advantage over their competitors as they offer more choices of devices and more apps. Currently
Roku has four different players, with latest product being Roku 3($80). But Roku also has
cheaper options: the Roku 2($70), the Roku 1($50), and the Streaming Stick ($50).
Roku is the winner among its competitors when it comes to the content with a massive
channel library that includes Netflix, Amazon Instant, HBO Go, Hulu Plus, Pandora, and
YouTube. Roku is often the first to get new channels, plus the company has a good track record
of bringing updates to its boxes and apps. In the latest example, it added Google Play Movies
and TV almost the same day the Nexus Player launched. Roku also enjoys best-in-class crossplatform search. No other competitors device offers the ability to search for a title or other
keywords across so many services, including Netflix, Amazon Instant Video etc.
S.W.O.T Analysis
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Strengths:
High Profitability and Revenue
No Monthly Fees
Inexpensive
Accessible, Convenient, and UserFriendly
Different Models to choose from
Opportunities:
Income level is at constant increase
New Markets
Growing Demand
Growing Economy
Growing Popularity of Online media
Consumer Lifestyle
Weaknesses:
Brand Recognition of Roku
Lack of Promotion
Lack of Education of Roku
Lack of Specific Brand Image
Competitive Market
Need Internet Access which may not
available in some parts of India
Threats:
External Business risks
Indian Audience may not accept the
product
Possible substitutes like game systems
Smart TVs
Too dependent on the success of other
channels like Netflix, Amazon Prime
etc
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Marketing Mix
I.
Product
The Roku is a streaming device box introduced in 2008, which allows users to instantly
stream music, movies, and games through their TV. The Roku box is a little smaller than the
Apple and Amazon players, but a little thicker. Unlike the other players, there are multiple Roku
models namely Roku 3, Roku 2, Roku 1, and Roku Streaming Stick. There are certain
advantages and disadvantages of the different models.
1. Roku 3 (Released in March 2013):
This is the latest and greatest model. Its main advantage over other
Roku boxes is speed. It loads apps faster which make you a lot more
likely to use features like universal search. The remote control
includes a headphone jack, so users can watch their streaming content
without disturbing other people. The remote can also be used as a
controller for games. It has an Ethernet port so users can connect it to their internet router with a
cable in addition to wirelessly. It has a USB port, so if users have photos or music on a USB
drive, they can play that content on their TV. It also has a slot for a Micro SD card that users can
store content on. The major disadvantage of this model is that users must have an HDTV to use it
as it only has an HDMI port for connecting to your TV.
2. Roku 2 (Released in July 2011):
The Roku 2 box does not include a USB, SD Card, or Ethernet port. This means you can only
connect wirelessly to the network. It also has a slower processor and does not have the motion
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control capability. And most importantly, users cant watch YouTube videos through it. In 2015,
Roku released a new version of the Roku 2 that included a faster processor, but removed the
support for non-HDTVs. They also removed the headphone jack from the remote. But the
biggest drawback is speed. Roku 2 uses an older version of the interface and hence its also little
less expensive than Roku 3.
3. Roku 1: (Released in September 2010)
The main differences between this
the Roku 1 doesnt have the inremote headphones and doesnt
support dual-band wireless. Like
Roku 2, Roku 1 also features the older version of the
interface. However, Roku 1 is also extremely cheap
compared to Roku 2 or Roku 3.
4. Roku Streaming Stick: (Released in May 2008):
Unlike the other 3 models, the Roku streaming stick is not
a box. Its a small stick that users plug directly into an
HDMI port on their TV, which means it only works with
HDTVs. But it has all the same content options as the
others.
model and the Roku 2 or 3 are that
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II.
Price
Roku offers different prices for different models unlike Apple TV who only offers one flat
price of $99 (Rs 6314). The most expensive Roku model is Roku 3 which is the same price as
Apple TV. But there are cheaper alternatives available in case consumers cannot afford Roku 3.
Roku 2 offers for $79.99 (Rs 5100), and Roku 1 and Roku Streaming Stick offers for $49.99 (Rs
3188).
The major advantage of buying Roku models is that there are no monthly fees unlike cable
operators. Also, the value is great for the price for most customers since they get access to over
1000 channels compared to Apple TVs 20 channels.
Additionally, Roku should consider offering packages that are discounted to those consumers
who buy multiple Roku products at same time through Push promotional strategy. This attracts
families to buy multiple products at the same time. A Pull promotional strategy then uses
advertising to build up customer demand for Roku. Advertising Roku products on childrens
television show is a pull strategy. Hence, marketers can raise brand awareness using push-pull
strategy.
III.
Place
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Roku can be found in Department stores, electronic specialty stores, and online stores
such as Amazon or EBay through indirect distribution. There are some Wal-Mart stores in major
cities like Mumbai and Delhi where Roku can be placed for consumers to buy. However, major
distribution strategy need to be implement if Roku want to be sold in small centers in India.
Roku need to make partnership with local retail stores for channels of distribution to sell Roku.
Roku does lot of online advertising, but it would be beneficial if they show how Roku works in
trade fairs. Apple TV selling their box with the notion that user can access all music and movies
through their account with iTunes. Roku could maybe make a deal with android to have the same
feature through Google play.
One of the advantages of selling a product in India is that you really dont need
permission to sell product on the local streets. Local sellers sell their products in the busy street
all the time.
Roku.com also offers all of its products for sale and with free shipping and promotional
deals through direct distribution.
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IV.
Promotions
Raising brand awareness can be achieved through well planned promotions. Promotions
need to be conducted keeping Indian audience in mind. Roku currently has extensive online
promotions on social networking platforms such as Facebook, Twitter and so on. The same
strategy can also be applied to target upper middle class consumers in India. Since many Indian
consumers dont use social networking sites, Roku must have alternative strategy to generate
awareness among those audiences.
One way to reach target market customers would be through the channels that Roku
offers in between shows and movies by showing quick commercial during a show on Netflix.
Another way to reach target market customers is to have sales during festival seasons like Diwali
because Indians do extensive shopping for electronics during Diwali just as we do here in
Thanksgiving. We can also target market customers through advertisement by stimulating
customers to refer the product to friends and family with an incentive to give $5 off. Also, we
can offer credit to the monthly subscriptions for the apps such as getting $4 off credit for 3
months for Amazon Instant.
Lots of Indian consumers are regional newspaper readers. It would not be bad idea to
publish an article to all regional newspapers about Roku products to generate awareness amongst
the target consumers. TV advertisements and English newspapers will create awareness among
foreign travelers as those are the only major mediums they access most of the time.
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Uncontrollable Variables
I.
Competition
Apple TV is one of the big names in this space and it already offers its box to Indian
market. If consumers have a lot of iOS devices and they buy content through iTunes then Apple
TV is the obvious choice for them. They can use Airplay to stream music, photos, or videos from
an iPhone or iPad to the TV via Apple TV. It has an interface and a remote control, but they can
control it via their iPhone and iPad as well. It does have a decent choice of Apps but less than
Roku.
Another major competitor is Chromecast. Chromecast is the cheapest among its
competitors, however has very limited functionality. Chromecast look like flash drives and plug
directly into an HDMI. Users can cast their smartphone videos directly to their TVs. It also has
chrome extension, which allows users to virtually cast anything from Chrome web browser.
There are lots of other competitors entering the market. NETGEAR showed off the
NeoMediacast HDMI Dongle at CES. It looks similar to Chromecast, and it supports Android 4.2
and up, but it also uses Miracast and Bluetooth 4, and it has a remote unit. This is aimed at
service providers and will likely be branded and offered as part of existing cable or satellite
subscriber services.
II.
Government Policies
Indian Government Policy may affect the plans for selling Roku in India. Roku needed to
obtain license from Telecom Regulatory Authority of India and Department of
Telecommunication for reasons such as licensing information, launch date, the area being
covered and the details of network infrastructure.
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III. Cultural and Subcultural Forces:

India has an amazing cultural diversity throughout the country. The South, North, and
Northeast have their distinct cultures and almost every state has carved out its own cultural
niche. Due to this varied and unique culture in India, it is important to not violate the sentiments
of each culture by providing unnecessary content from Roku. Since Roku also targets foreign
travelers, it is important to show western shows and programs. But, at the same time, they need
to provide contents within the guidance of Indian culture. There are few subcultures in India and
one of the strategy to implement would be creating Roku content separate for each subcultures.
Each subculture has their own beliefs and hence extremely difficult to control. Among the largest
of these groups are the subcultures of Andras, Gonds, Gujaratis, Marathas, Oriya, Rajputs, and
Tamils. It wont be bad idea to show regional content for each of these subcultures.
IV. Economy Factor:

Its very difficult to predict how and when economy changes as it is almost uncontrollable.
But marketers can at least forecast future trend and better prepare to overcome it.
V.
Technological Changes:
Technological changes affects the kind of product that Roku can offer. For instance,
technology have changed products like typewriting machines into a more proficient computer
systems. Similarly, there might be another technology coming up which makes Roku less
attractive to consumers. Since this is uncontrollable, its better for Roku marketers to keep
releasing newer versions of the product which is most up-to-date with newer technologies.
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Market Segmentation
Rokus target market includes Middle income families in India living with children and
foreign travelers. By solely targeting families with children, this helps Roku design the product
that suits better for their target market. Roku can add more children programs and games to
attract and bring awareness among target audience. They can also include additional programs
from different countries for foreign travelers.
Although Roku target to middle income families in India living with children, it focuses
on retaining customers for a long time. Roku focusses on providing optimal customer service, so
that buyer can give positive word of mouth to their neighbors and family members. This way
Roku can get more awareness among the audience.
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Buyer Behavior
Many factors influence the individual in what he is and the consumer in his decision
making process, shopping habits, purchasing behavior, the brands he buy or the retailer he goes.
The central focus of marketing for Roku is the consumer. To develop good marketing plan, it is
necessary to examine consumer behavioral attributes and needs, lifestyles, and purchase
processes and then make proper marketing mix decisions. It is important to keep track of when
consumer buy, how they buy, from where they buy, and how often they buy Roku. Roku also
need to keep track of buyers behavior during holiday season like Diwali compared to nonholiday season. Another way to track consumer behavior is whether male or female audience buy
it. This is important since we can develop promotional strategy based on male or female
audience. Since rural section of India are mostly uneducated, it is vital important for Roku to
identify how these audience buy Roku and getting awareness about it.
An open-minded consumer-oriented approach is necessary in todays diverse global
marketplace so Roku can identify and serve its target market, minimize dissatisfaction, and stay
ahead of their competitors.
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Marketing Research
Since Roku primarily targets Indian audience, it will be tested via Delphi Research
Services to provide an idea of the business and potential GDP (Gross Domestic Product). Delphi
Research Services primarily focusses on understanding consumers, investigating market, and
conceptualizing Roku development. They found out that Rokus Gross Domestic raised from an
average of over 12% in the previous three fiscal years to 15% during 2014-15. They also
projected that the real GDP will grow by 6% in 2015-16.
Roku can analyze a small group of Roku buyers that represents target market by
providing concise and straightforward questionnaires in the form of Surveys. Surveys can be
either In-person, telephonic, mail, or online. This will help Roku generate customer feedback and
improve the product with their next upcoming release. The larger the sample, the more reliable
results will be for Roku. Roku can also be put in for Field trials by placing in selected Indian
stores to test customer response. This will help analyze product modifications and price
adjustments needed based on the audiences. Roku can also create deal with online websites such
as Amazon or eBay that can help them test their products.
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Perceptual Maps
Below is the perceptual Map. Map shows the comparison between entertainment and
prices. As visible from the map, Roku offers high entertainment with slightly lower prices
compared to their competitors such as Apple TV, Amazon TV, or Local Indian Cable TV.
Chromecast is the cheapest alternative, however provides minimal entertainment.
Price v/s Entertainment
International Marketing
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Having target Indian Market, Roku would like to expand globally and target different
markets worldwide in next 5 years. Roku start out with targeting Indias neighboring countries
such as Pakistan, Sri Lanka, China, and Bangladesh, tapping into a huge potential market.
Although every market is different, Rokus successful Indian market expansion will made the
company very confident for future launch in other parts of Asia and worldwide. Roku can adapt
based on the needs for different market but can launch necessary changes with each new versions
of their product.
Conclusions
Roku can be successful product in the subcontinental market if marketing department can
promote the brand better and bring awareness among the audiences. It will be beneficial if Roku
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designs the new releases based on the target markets for that particular market. For e.g.,
including local regional channels in the Roku for Indian regional audience. With an aim of
staying ahead of their competitors, Roku can even monopolized the field if they strategize
marketing strategy better. Roku can become a bigger franchise if they manage to bring local
content into their streaming box, which eventually replaces local cable TV in the future. It will
be an uphill task for Roku, but they can reach target with better marketing strategies highlighted
in this research paper.
References
McDermott, J. (2013, September 4). First Roku CMO Aims to Keep Message Simple in
Critical Year. Retrieved May 1, 2015, from http://adage.com/article/cmointerviews/roku-cmo-aims-message-simple-critical-year/243915/
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Fowler, G. (2014, August 24). Roku TV: A Smart TV That Helps You Cut Out Cable.
Retrieved May 1, 2015, from http://www.wsj.com/articles/roku-tv-a-smart-tv-thathelps-you-cut-out-cable-1409083779
Brustein, J. (2013, October 3). Roku's Survival Will Take More Than Beating Apple TV.
Retrieved May 1, 2015, from http://www.bloomberg.com/bw/articles/2013-0925/rokus-survival-takes-more-than-beating-apple-tv
Alsever, J. (2011, July 1). Turning Customers Into Salespeople. Retrieved May 1,
2015, from http://www.inc.com/magazine/201107/turning-customers-intosalespeople.html
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Appendix A
Print Advertising (Ex of Roku in regional
newspaper(Gujarati):

Marketing Plan Roku

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II. Government Policies................................................................................14

Cultural and Subcultural Forces:........................................................15

By 2025 and onwards:

model and the Roku 2 or 3 are that

III. Cultural and Subcultural Forces:

IV. Economy Factor:

Price v/s Entertainment

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