Brand Profile for XM Radio
*Brand Name: XM Radio
*Brand Quality: Superior digital sound technology, unparalleled signal coverage, proven chipset technology, and outstanding programming.
*Physical Characteristics of the Brand: All hardware is manufactured by third parties, the service is all that is supplied by XM; however all hardwire contains the XM logo.
*Brand Strategy: “With XM, listeners will enjoy the clearest the clearest, hottest, hippest, and most provocative radio entertainment, seamlessly across the country.”
*Brand Image: Satellite radio inventor, innovator, and market leader.
*Brand Reputation: XM enjoyed the #1 position for quite some time until Sirius obtained a contract from Howard Stern, this move eventual put the companies neck and neck in comparison.
*Brand Price: $12.95/month, 1-year @ $11.87/month, 2-years @ $11.33/month, and 3-years @ $9.99/Month. $6.99/month for family account (for 2 to 5 radios)
*Brand Core Value (if competition lowered its price, why would consumers still buy?): What XM offers that is exclusive is every MLB and NHL game, Nascar, and a radio show by Oprah Winfrey.
*Brand Logo and Tagline: “Beyond AM, beyond FM”.
*Brand Design and Packaging: All of XM’s hardware is manufactured by third parties such as Terk, Delphi, and Pioneer Electronics. However all product packaging bears both the logo and XM’s full channel listing. This provides consumers with the opportunity to see how diverse and expansive their channels are.
*Brand Equity: Since XM radio was the first company to offer satellite radio in September of 2001, allot of people become subscribers and never left.
*Brands Primary Competitors: Prior to the recently proposed merger, Sirius was their main competition. In addition the emergence of HD radio will now most likely their main competition however categorically XM/Sirius will in my opinion, have a monopoly on this market. Others include Clear Channel and broadcast radio.
Consumer Buying Behavior
Primary Target Audience: XM’s programming includes something for nearly every demographic. The extensive channels include gospel, country, rock, 40’s-90’s themed stations, hip-hop, R & B, talk, sports, comedy and kids programming. Therefore I presume XM is attempting to provide something for everybody.
*Consumer Demographics: 8 million subscribers with the majority 65%; of their subscribers are Male.
*Other External Factors Influencing Brand Purchase: The inclusion of an XM tuner as an option in most new cars provides an external opportunity for purchase of their service.
Consumer Buying Decisions: Primarily for their exclusive content some of which includes an Oprah Winfrey show and channel, and full NASCAR and MLB coverage.
*Who Most Influences the Buying Decision?
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