Satellite Radio is at a point where several decisions need to be made before it sells its satellite digital radio. Some important considerations that XM need to decide on are: What type of segment(s) should XM market to? What will be the retail price of the product, and will XM require a monthly subscription fee? If so, how much should it be? Should XM allow advertisements on their programming? Is penetration pricing the best strategy? What would the early launch of SIRIUS
SIRIUS is going to target rural America as their primary market due to the lack of FM radio stations. XM does not want to compete in the rural America market because there are better consumer segments available. The research projected that Tech-Seekers and Tech-Friendly have the largest growth among other segments.
Offering a suggested retail price at $100 for an XM home or car radio will increase the purchase intentions for the Tech-Seekers and Tech-Friendly segments. Their purchase intentions increase steadily when the price of the radio declines.
Tech-Seekers and Tech-Friendly both seek high-tech products. XM should offer different packages to these segments. An example would be to offer a lifetime subscription for the price of 5 years, assuming the monthly subscription fee of $12. The radio transmitting device will be included in this price. The average customer lifetime value is 5 years, so an offer like this one will guarantee the revenue for a five year customer regardless of whether or not they continue to use the service.
Perhaps no other company has benefited more from this deregulation than the company which is the focus of this essay – Clear Channel Communications, Inc (CC). The Telecommunications Act and the actions of the FCC paved the way for the rise of this radio industry behemoth. In 1995, the company owned 43 radio stations nationwide. By 2002, it owned 1,239, making it the largest radio company in th...
-The American people were hungry for new music, so they accepted the independent stations of the majors.
Good morning, Sioux City. This is Adam Lewis and you are tuned to KL&R on this delightful March 3rd for all your news so you’ll know what’s going on.
... of market penetration could be implement to foster WRSX to increase market share by providing maintenance of the current position first, rather than striving to expand (Cole, 2003).
Channel Exposure- AT&T is adequate in its point of sales. They intend to match most competitors in using Radio Shack, BEST Buy, Walmart, Mall locations, high visible real estate traffic.
Time value of money (TVM) is a monetary concept that is very important to all parts of the financial world. This concept basically says that $100 today is worth more than $100 a year from now (or anytime in the future). Also, an individual should earn some value of compensation for not spending their money. This compensation is essentially called the interest that will be earned on the initial cash. What about when an individual opts to receive money in the future rather than today? That can lead to problems. This is because they are taking a gamble by loaning money- since there is almost always risk in loaning money. A couple of these risks include inflation and default risk. Default risk means that the person who borrowed the money does not repay the money to the person that loaned it. Inflation means that the general prices of products will rise. How does all this work? In theory the person that gets the $100 today could invest it, even at a very low annual percentage rate (APR), and still come out ahead. If they invest it at 2% APR, they would have $102 at the end of one year. Th...
INTRODUCTION Would people be willing to pay $12.50/month for commercial free radio beamed right to their car or home. Well two companies and many big investors are betting about $3 billion dollars that people are willing to do just that. In 1997, the Federal Communication Commission (FCC) granted a portion of the S-band spectrum for satellite radio and two companies purchased use of these bands and started the only two companies competing in the satellite radio business today, namely Sirius and XM. Analysts like William Kidd of CE Unterberg Towpin, predict satellite radio will generate about $10 billion a year in revenues by 2007 (McClean, 2001).
Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
The radio grew in popularity and was as successful as it was because it was able to reach all across the nation, helped the American people interpret the Great Depression, and was a universal place of communication and entertainment. Although the first radio-wave theorem was developed in 1864 by James Clerk Maxwell, it was not until the 1920s and 1930s that the device really gained popularity in the U.S. During the Great Depression, families, advertisers, and even politicians used the radio for purposes such as entertainment, news, and a forum to the American people.1
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
Traditional AM/FM Radio. Sirius’s competition also includes traditional AM/FM radio. Unlike SIRIUS radio, traditional AM/FM radio has had a well established market for its services for many years and generally offers free broadcast reception paid for by commercial advertising rather than by a subscription fee. Also, many radio stations offer information programming of a local nature, such as local news and sports, which Sirius does not offer as effectively as local radio. Some radio stations also have begun reducing the number of commercials per hour, expanding the range of music played on the air and experimenting with new formats in order to compete more directly with satellite radio services.
initial availability. The price for the X5 is $49, 400, $44,620 for the dealer invoice, and
Their first and primary target market is their residential market. This market includes houses, apartments, condominiums, duplexes and mobile homes with one or more individuals in residence. Comcast does not have an income target, as the entire residential population, regardless of income wants cable, Internet, and telephone service. Their secondary market is their business market. This market is vast and will include sole proprietorships, partnerships, and corporations. These businesses are primarily interested in Comcast’s high speed Internet and telephone
We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
Sources:Strategy and the Business Landscape, by Pankaj GhemawatBritish Satellite Broadcasting versus Sky Television. Harvard Business School Case