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In 1999 TiVo was preparing to launch its digital video recorder (DVR) in the United States. The company's goal was ambitious: it hoped to revolutionize how Americans watched television and to become a central player in the emerging interactive TV industry.

Although it had a technological advantage, TiVo faced one competitor (ReplayTV) and potential entrants such as Microsoft, so its success was far from guaranteed. Evidence suggested a bright future for the company, however; the concept had attracted $240 million in venture capital, and market research indicated a uniquely high level of consumer interest.

TiVo needed to capture the first-mover advantage and build its sales and brand as quickly as possible to support the company's IPO, which was planned to take place within eighteen to twenty-four months. TiVo's positioning at launch would play a key role in determining its success.

After analyzing and discussing the case, students should be able to:

• Use analogies appropriately to forecast demand

• Use various marketing research techniques to make appropriate inferences about the challenges to consumer adoption of an innovative product

• Develop multiple frames of reference and discuss the merits of each

• Develop multiple points of difference and discuss the merits of each

• Develop multiple positioning statements and discuss the merits of each

Use analogies appropriately to forecast demand

Use various marketing research techniques to make appropriate inferences about the challenges to consumer adoption of an innovative product

Develop multiple frames of reference and discuss the merits of each

Develop multiple points of difference and discuss the merits of each

Develop multiple positioning statements and discuss the merits of each

The case collates secondary data pertaining to Maruti’s current position, Nexa, the premium retail sales channel of Maruti, and recent developments in the Indian automobile industry. It presents the facts and data published on websites, newspapers and magazines in the form of a case study.

Nexa was launched by Maruti in 2015 to enhance the buying experience of its premium customers and to re-position itself as a premium brand. It started offering customized services to car purchasers through its well-trained employees, attractive store environment and omni channel experience. Through all these facilities, though Nexa had a bumpy ride for selling its first product, it managed to pace up and perform better in the next few years. It remained to be seen how Maruti would handle competitor and cost challenges and how it would strategize its efforts to strengthen its footprint in the Indian automotive industry.

This case can be used in retail management, sales and distribution management, marketing management and related courses/modules at the master’s level.