Brought to you by:

Alex Khosla

Attaf Hamza

Brenden Jarlsberg

Justice Malone

Sabeel Khurram

Spencer Snee

Vikrant Nayar

The Company

• Roku is owned by Roku Inc.
• It was founded in 2008 by Anthony Wood.
• Roku’s main product is internet video streaming player.
• Roku is currently the number one internet streaming device in the United States.
• Roku is sold in multiple countries in different designs.

The Company

• Roku went public in 2017.
• Roku’s stock are currently sold at $65.64
• Roku’s stock experienced a 165% gain from September 2017 to April 2018.
• Roku’s sales have been increasing each year.

Industry Size, Growth and Profit

Player Business

• Market Size: $29.4 billion.
• 14% CAGR.
• Profits Levels: Low
• Increasing licensing costs.
• Elastic demand within content distribution.

Platform Business

• OTT Advertising Market Size: $ 2 billion.
• Projected to reach $ 40 billion in 2 years.
• Projected growth of 13.3X.

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Target Market �& Segmentation Strategies

Target Market Potential Target Market

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Schema:

• Geographic
• Demographic

Profile

• U.S Market
• Millennials & Younger Gen X
• Female majority (content distribution)
• 46% Educated (smart TVs)

Schema:

• Geographic
• Demographic
• Behavioral

Profile

• College students
• low discretionary income
• Appealing Male-to-female ratio (42.5% male-57.5% female)
• Brand preference
• Bachelor’s Degree

Scheme:

• Demographic

Profile

• Companies
• Similar Demographics
• benefit from user data & user targeted advertisement

Player Business

Platform Business

Smart TV consumer

Player Business

Very Expensive

Less Expensive

High Quality

User Experience

Low Quality

User Experience

Brand Positioning Map Player Business

Brand Positioning and Targeting

Positioning

• Google, Amazon, and Roku competition
• relatively lower cost product
• Maintain quality
• Content neutrality (PoD)

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Issues

• innovation
• Apple brand preferences?

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Player Business Platform Business

Positioning:

• Key players: Hulu, Roku, and Pluto TV

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Positioning Issue

• positive relationship: market share in the consumer business and advertising value
• treading the line between content neutrality and maintaining market share

Competitive Markets

• Main Competitors
• Amazon Fire Stick
• Apple TV
• Google Chromecast
• Amazon Fire Stick
• Original content, Amazon brand preference
• Apple TV
• Apple has highest brand insistence of technology companies
• Google Chromecast
• Laptop, smartphone, or tablet required

Customer Reviews - The Good

• Roku has a strong record with customer reviews
• Roku Streaming Stick has 4.2 out of 5 stars on Amazon
• Based off almost 8,000 reviews
• Positive reviews cite easy streaming compatibility and low price as major benefits
• People love what the product does

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Customer Reviews - The Bad

• Bad reviews blame remote and poor customer service/support for unsatisfying experience
• Some customers mentioned they received no response at all
• Product is low involvement and high value
• Customers will be quick to abandon product.
• Post-purchase follow through
• Roku will need to do more to ensure that customer support is adequate

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SWOT Analysis

Strengths

• Market Incumbents: First Mover Advantage
• Innovation culture
• Diverse product offerings
• Access to consumer information

Weaknesses

• Poor post purchase support
• Product quality Issues
• Accumulating losses
• Recent entry into international markets

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SWOT Analysis

Opportunities

• Low price points can be leveraged to gain market share.
• Advertising database can help revenue growth
• Product diversification such as smart speakers:
• Will help increase active accounts and grow market share
• Embed existing customers into ecosystem

Threats

• Increasing competition with exclusive content.
• Regulation on advertising due to privacy concerns.

Recommendations

More creative marketing strategies toward college students

• Competitor strategies
• Pricing strategies
• Simplicity

Recommendations

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• Target a younger demographic.
• Offer discounts to appeal to lower discretionary income.

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Recommendations

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• Demonstrate the ease of using Roku products.
• The combination of a simple system and versatility will appeal to younger customers.

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Questions?

“Feedback is the breakfast of champions” - Ken Blanchard

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Quote from https://howwelead.org/2015/01/07/feedback-is-the-breakfast-of-champions-2/

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References

https://www.spotify.com/us/student/?utm_source=us-en_brand_contextual_text&utm_medium=paidsearch&utm_campaign=alwayson_ucanz_us_performancemarketing_hulustudent_brand+contextual+text+exact+us-en+google&gclid=Cj0KCQjwxvbdBRC0ARIsAKmec9YCDsJKvfCLWMucsY7P-dKFF2fizlVsSD5SBNYla2zdOfjhHkQCPVAaAvpfEALw_wcB&gclsrc=aw.ds&dclid=CJLnrMHW_d0CFYnUWwodJ9oFUQ

https://www.reuters.com/finance/stocks/company-profile/ROKU.O

https://investorplace.com/2018/10/longer-roku-stock-stops-falling/

https://variety.com/2018/digital/news/roku-q4-earnings-1202706679/

Tom’s Guide: https://www.tomsguide.com/us/best-streaming-players,review-2140.html

Nielson: https://www.nielsen.com/us/en/insights/news/2016/millennials-are-top-smartphone-users.html

Forbes: https://www.forbes.com/sites/greatspeculations/2017/03/07/how-youtube-tv-will-stack-up-in-the-ott-market/#2c034aa95d2a

Streamingmedia.com: http://www.streamingmedia.com/Articles/Editorial/Featured-Articles/OTTs-Troubling-Trend-Is-Anyone-Actually-Making-Money-117530.aspx

AdAge: https://adage.com/article/media/ott-ad-revenue-hit-2-billion-2018-magna/314986/

Martechseries: https://martechseries.com/mts-insights/guest-authors/yeah-ott-advertising-is-a-bfd/

Marketing Charts; https://www.marketingcharts.com/digital/non-mobile-connected-devices-81735

videoink; https://www.thevideoink.com/2017/06/02/whos-watching-what-three-svod-giants-with-very-different-audiences/

PricewaterhouseCoopers: https://www.pwc.com

Readwrite: https://readwrite.com/2018/04/25/3-companies-winning-the-ott-race-with-advertisers/

https://www.amazon.com/Roku-Streaming-Stick-3600R-Quad-Core/product-reviews/B01DA0YCNC/ref=cm_cr_dp_d_hist_1?ie=UTF8&filterByStar=one_star&reviewerType=all_reviews#reviews-filter-bar

https://www.bestbuy.com/site/reviews/roku-streaming-stick-2016-model-black/4858200

https://www.bestbuy.com/site/apple-apple-tv-32gb-4th-generation-black/4905036.p?skuId=4905036&cmp=RMX&extStoreId=870&ds_rl=1260573&ref=212&loc=1&gclid=Cj0KCQjwxvbdBRC0ARIsAKmec9aJHaLL7OQ9y92TUSOORRVAM2Iq_odHorCIoi8B1Ml-vFa0QqQ3St4aAuDpEALw_wcB&gclsrc=aw.ds

https://www.usatoday.com/story/tech/columnist/2017/10/23/buy-roku-vs-its-4-k-streaming-rivals-how-compares-apple-tv-fire-tv/778760001/

https://www.networkworld.com/article/2223602/smb/5-reasons-why-the-roku-is-the-best-internet-tv-streaming-box-choice.html

https://www.theverge.com/2018/7/20/17595384/roku-ceo-anthony-wood-ads-hardware-business-interview-business-model

https://www.fool.com/investing/2018/06/18/is-roku-ready-to-enter-the-smart-speaker-market.aspx

http://fortune.com/2017/05/27/roku-ceo-anthony-wood-streaming/

https://www.poynter.org/news/people-dont-want-trade-privacy-targeted-ads

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