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:
• Market and Competition
• Business Model
• Pricing
• Manufacturing and distribution channels
Market and Competition
The primary target market for satellite radio should consist of adults ages 25-50. These are customers that make most money and will be willing to pay extra for the quality entertainment service. This target market can also be divided into the smaller segments. The key segments are:
• Truck drivers and RV owners (approximately 6 million i)
• Commuters driving more than 90 minutes per day
• Business travelers who spend much of their time in the car (like real estate sales agents)
• Workplace listeners, including retail outlets with a need for continuous, non-stop music
• Residents of underserved rural areas.
• Sports fans (for example NASCAR)
These target groups spend an extraordinary amount of time listening to radio, especially in the car, and should be extremely receptive to the XM product due to their constant need for radio entertainment and willingness to pay for it.
As a result of the FCC auction, the only XM’s competitor in satellite radio arena is SIRIUS. But at the same time there other entertainment sources that could be perceived as prospective competitors for XM.
• Traditional (AM/FM) Radio - it is currently free, but only offers a homogenous shallow play lists with medium audio quality.
3. Shaw Direct provides direct-to-home satellite programming to more than 900,000 subscribers - largest in the country
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...
In the 1969 case of Red Lion Broadcasting Co. v. FCC, Red Lion Broadcasting challenged the fairness doctrine that the Federal Communication Commission imposed on them in relation to a specific broadcast. Red Lion Broadcasting Co. aired that program on November 27, 1964, which included a personal attack on one author Fred J. Cook. Red Lion Broadcasting Co. refused to give Fred J. Cook his requested free time on air for rebuttal. As a result, the FCC supported Cook and ordered the radio station to give Cook his time on air for the opportunity to refute the previous negative claims made against him. The D.C. Circuit of the Court of Appeals subsequently upheld the FCC’s decision. Another appeal made and this time it was put in the hands of the Supreme Court, which also upheld the FCCs decision with a unanimous vote.
Over the years, many people all over have listened to the radio for entertainment and information. Radio supplies news, sports, music, talk, and many other options with great ease. However, since television has become so popular lately, people look to it as an alternative to radio for the previously stated options. The reason for this can be linked to the redundancy that radio has encountered by not offering anything new and exciting for people to become interested about. Now, XM radio has solved this problem by giving people something new to look forward to by offering their services to anyone who wants to try something new. XM Radio uses satellites positioned in space to allow people to listen to the radio across the United States without having to be bothered with changing stations. This luxury has gotten consumers and analysts very excited and has been receiving a lot of hype in the media lately. The advanced methods of broadcasting will supply XM Radio with more appealing features to listeners than existing entertainment. As a result, those who are bored with the current condition of radio entertainment may use XM more than FM and AM radio.
... 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).
When one thinks of original, successful radio shows in the U.S., one show definitely comes to mind, Howard Stern. The Howard Stern morning radio show has been the most successful radio show on the radio for some time now. Howard Stern created a show unlike any other; it is a morning radio show that has it all. The show has interviews with famous people, listeners can call in to the show with there opinions, current news, and most notably its sexual content and controversial opinions on what is happening in the world we live in. The show has always pushed the limits of freedom of speech while at the same time opened new doors and ideas within the limits. Currently in our country this show has become under fire by our government and is very close to being taken off the airwaves. This is just one show that is in jeopardy of being taken off the air.
They have over 11,555 worldwide rental car locations and are at the point where they can cover their short-term liabilities with cash flow from their operations. Hertz’s adjusted earnings per share increased 77.1% meaning that their market value has increased. Their revenues increased by 34%, while they had a cumulative cost savings of $3 billion (Hertz Annual Report, 2013). This demonstrates that Hertz has the financial resources and the access to markets that they need. Hertz has successfully integrated their ExpressRent kiosks in more than 48 markets and their eReturn option for Hertz Gold loyalty program members, in which they have the ability to choose the Hertz ‘Fuel Purchase Value Option’ that lets them automatically buy a full tank at the start of the rental, so they can turn in the car with the gas at any level and not have to worry about filling up on the way to the
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.
Sirius faces competition for both listeners and advertising dollars. In addition to pre-recorded entertainment purchased or paying in cars, homes and using portable players, Sirius competes most directly with the following providers of radio or other audio services:
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
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
Gome Electrical Appliances: Competing for Channel Leadership tell us a story about the legendary development of Gome Electrical Appliances. Its low price sales strategy and the countermeasures toward the price control of the color television price alliance to maintain channel leadership. This case analysis identified two major problems of market strategies Gome took in the channel leadership battle, provided two recommendations, and then analyzed the feasibility of the recommendations.
During the summer and fall of 2014, Sirius XM, an American satellite radio broadcasting company, was found guilty of consumer fraud. The company’s means of fraud included, but was not limited to, misleading advertisements and unfulfilled promises. After many consumer complaints, the issue was taken to court. There, 45 United States Attorney Generals announced that Sirius XM Satellite Radio was guilty of misleading, unfair, and deceptive practices which violated state consumer protection laws (Hood, 2014). During the act of defrauding customers, the company also engaged in unethical business behaviors. Due to the fraudulent and unethical decisions and actions made by Sirius XM, the company will most likely forever be looked at through a different
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....
call sign, not just the radio frequency), an option to scan through channels searching only for stations playing a specified music genre, and of course adjustable treble and bass, which I'll never touch. The car manual, which had more pages dedicated to the stereo than the rest of the automobile, revealed a clever feature where I can program a volume for the radio to reset...