Harvard Case - Sunbeam Television (A)
"Sunbeam Television (A)" Harvard business case study is written by V. Kasturi Rangan, Scott Lathrop. It deals with the challenges in the field of Marketing. The case study is 19 page(s) long and it was first published on : Sep 14, 1995
At Fern Fort University, we recommend Sunbeam Television adopt a multi-pronged strategy to capitalize on the emerging cable television market. This strategy involves a focus on niche programming, strategic partnerships, and aggressive marketing to attract a loyal audience and establish a strong brand presence.
2. Background
Sunbeam Television, a small independent television station in the 1970s, faced the challenge of competing with established networks and the burgeoning cable television industry. The case study highlights the company's struggle to find its niche and attract viewers in a rapidly evolving media landscape. The main protagonist is Jerry Silverman, the owner of Sunbeam, who must navigate the complexities of the industry and make critical decisions about the company's future.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong local presence: Sunbeam enjoys a strong reputation within the local community.
- Experienced team: The company has a dedicated team with expertise in television production and broadcasting.
- Flexibility: As an independent station, Sunbeam has the flexibility to experiment with different programming formats and target specific audiences.
Weaknesses:
- Limited resources: Sunbeam is a small company with limited financial resources to compete with larger networks.
- Lack of national reach: As a local station, Sunbeam struggles to attract a wider audience beyond its immediate market.
- Limited programming options: Sunbeam's programming is primarily focused on local news and syndicated shows, which may not appeal to a broader audience.
Opportunities:
- Growing cable television market: The cable industry is expanding rapidly, offering new opportunities for independent stations to reach a wider audience.
- Niche programming: Sunbeam can differentiate itself by focusing on specific genres or target audiences with unique programming.
- Strategic partnerships: Collaborations with other media companies, cable providers, or local businesses can expand reach and resources.
Threats:
- Competition from established networks: Sunbeam faces fierce competition from established networks with vast resources and national reach.
- Changing consumer preferences: Viewers are increasingly turning to streaming services and on-demand content, posing a challenge to traditional television broadcasting.
- Technological advancements: The rapid pace of technological advancements could disrupt the television industry, requiring Sunbeam to adapt quickly.
Porter's Five Forces Analysis:
- Threat of new entrants: The cable television industry is relatively mature, but new entrants like independent stations and streaming services still pose a threat.
- Bargaining power of buyers: Viewers have a wide range of options for entertainment, giving them significant bargaining power.
- Bargaining power of suppliers: Suppliers of programming, such as production companies and distributors, have moderate bargaining power.
- Threat of substitute products: Streaming services, online video platforms, and other forms of entertainment pose a significant threat to traditional television.
- Rivalry among existing competitors: Competition among television stations, cable networks, and streaming services is intense.
Marketing Analysis:
- Target market: Sunbeam should focus on identifying and targeting specific audience segments with niche programming.
- Marketing channels: The company should leverage traditional media like print and radio advertising, as well as emerging channels like social media and digital marketing.
- Marketing message: Sunbeam's marketing message should emphasize its unique programming offerings, local focus, and community engagement.
Financial Analysis:
- Investment needs: Sunbeam needs to invest in new technology, programming development, and marketing efforts to compete effectively.
- Revenue streams: The company should explore various revenue streams, including advertising, subscriptions, and partnerships.
- Financial sustainability: Sunbeam needs to achieve financial sustainability through cost optimization, revenue growth, and strategic investments.
4. Recommendations
Develop Niche Programming: Sunbeam should focus on developing high-quality, original programming targeting specific audience segments. This could include local documentaries, educational programs, or culturally relevant content.
Strategic Partnerships: Sunbeam should seek partnerships with cable providers, local businesses, or community organizations to expand reach, share resources, and cross-promote content.
Aggressive Marketing: Sunbeam needs to implement a comprehensive marketing strategy that leverages traditional and digital channels to reach its target audience. This includes:
- Targeted advertising: Use local print and radio advertising, as well as online advertising platforms, to reach specific demographics.
- Social media marketing: Develop a strong social media presence to engage with viewers, promote programming, and build a community.
- Public relations: Engage with local media outlets to promote Sunbeam's programming and build brand awareness.
- Community events: Host events and screenings to connect with viewers and build relationships.
Embrace Technology and Analytics: Sunbeam should invest in new technologies like streaming platforms and digital distribution channels. Utilize data analytics to understand viewer preferences and optimize programming and marketing efforts.
Focus on Customer Experience: Sunbeam should strive to provide a positive viewing experience for its audience. This includes offering high-quality programming, responsive customer service, and engaging content.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Sunbeam's core competency lies in its local focus and community engagement. The recommendations align with this mission by emphasizing niche programming, strategic partnerships, and community outreach.
- External customers and internal clients: The recommendations prioritize the needs of viewers by offering engaging programming and a positive viewing experience. They also consider the needs of internal clients, such as employees, by providing opportunities for professional development and growth.
- Competitors: The recommendations focus on differentiating Sunbeam from its competitors by leveraging its strengths, such as local focus and flexibility.
- Attractiveness: The recommendations are attractive due to their potential to increase viewership, generate revenue, and strengthen Sunbeam's brand position in the market.
6. Conclusion
Sunbeam Television has a unique opportunity to thrive in the evolving media landscape. By focusing on niche programming, strategic partnerships, and aggressive marketing, the company can establish a strong brand presence, attract a loyal audience, and achieve financial sustainability.
7. Discussion
Alternatives:
- Focusing solely on local news: Sunbeam could choose to focus on local news coverage, but this would limit its potential audience and revenue streams.
- Adopting a generic programming strategy: Sunbeam could try to appeal to a broad audience with generic programming, but this would make it difficult to stand out from the competition.
- Merging with another station: Sunbeam could consider merging with another station to gain resources and reach, but this would involve significant risks and challenges.
Risks and Key Assumptions:
- The cable television market may not continue to grow at its current pace.
- Viewers may not be interested in niche programming.
- Strategic partnerships may not be successful.
- Marketing efforts may not be effective.
Options Grid:
| Option | Pros | Cons |
|---|---|---|
| Niche Programming | Differentiates Sunbeam from competitors, attracts a loyal audience | May limit potential audience, requires significant investment |
| Strategic Partnerships | Expands reach and resources, provides access to new markets | Requires careful selection of partners, potential for conflicts of interest |
| Aggressive Marketing | Builds brand awareness, attracts new viewers | Requires significant investment, may not be effective without a clear strategy |
8. Next Steps
- Develop a detailed marketing plan: This plan should outline target audiences, marketing channels, messaging, and budget.
- Identify potential partners: Sunbeam should research and contact potential partners to explore collaboration opportunities.
- Develop a pilot episode of niche programming: This will allow Sunbeam to test the concept and gather feedback from viewers.
- Invest in new technology and infrastructure: Sunbeam should upgrade its equipment and software to support streaming and digital distribution.
- Monitor progress and make adjustments: Sunbeam should regularly track its progress and make adjustments to its strategy as needed.
By taking these steps, Sunbeam Television can position itself for success in the evolving media landscape and achieve its long-term goals.
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Case Description
Sunbeam Television, owner of a television station in Miami (a Fox affiliate), buys Channel 7 (a CBS affiliate) in Boston. They bring to the Boston station the concepts and ideas of their Miami news product--that is, a crisp, content-based design rather than one centered around personalities. Industry changes force them out of the CBS affiliation in Boston. Having considered both FOX and NBC, Sunbeam finally settles on NBC. The implications and motivations of their decision are to be discussed.
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