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?
If we refer to products, people often take them as the things we get from suppliers with a price. Apparently, this is a definition from the perspective of exchanges and does not quite catch the essence of the meaning of product in the marketing discipline. In this regard, Rothschild (2009) offered a probably better definition for products as a bundle of benefits for customers. This definition also offers an important perspective for JB Hi-Fi to understand its products. Because after all, JB Hi-Fi is only a retailer and all its home theatre products are sourced from their manufacturers. If JB Hi-Fi only sees its products as the tangible parts, it may miss out the very important parts of the competition. However, if JB Hi-Fi sees the product as a bundle of benefits it can offer to its customers, the tangible part is only part of this bundle. There is much more for JB Hi-Fi to offer to improve the benefits to customers, and at the same time differentiate itself from its competitors.
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...
...design are lower than other competitor’s. For example, they have ultra fast computing power but our brand just has high speed computing power. Thence, some competitors which Workhorse chose their product are just they want and need.
...ipped with some of the best-known names in car audio. These companies include Delphi, Delco Electronics Systems, Alpine Electronics, Clarion, Audiovox, Visteon, Pioneer, Panasonic, Sanyo, and Motorola (“Car Units” 2002). These audio systems will definitely help in the performance of the overall radio because the speakers are top of the line and provide better quality than any others. Also, it will most likely improve the sale of the systems since the name brands will attract more buyers.
... 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).
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). However, to date neither of these companies has earned a dime. According to industry analyst though, “its not whether satellite radio will take off-rather it’s a matter of how fast.” (Helyar, 2004). Despite lofty predictions, satellite radio has some big issues to overcome before it becomes a serious threat to the $19.6 billion per year terrestrial radio industry.
The company plans to manufacture and distribute a strong personal computer brand and will win loyalty and preference all over the world. A strong brand is that which is known all over the world and one that enjoys the benefit of recommendation from satisfied customers.
Their primary source of revenue is through subscription fees, with most of their customers subscribing to SIRIUS Satellite Radio on either a monthly or a yearly basis. They also derive revenue from activation fees, advertising sales on non-music channels and the direct sale of SIRIUS radios, which are currently sold in over 6,500 retail locations around the nation. As of December 31, 2004, SIRIUS has had over 1.2 million subscribers and 375 employees.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.
The product constitutes of two major aspects which are tangible and intangible in nature. The tangible part is the product and the packaging and the intangible part constitutes of factors like installation services, warranties, credit etc. In case of Apple Products the tangible part or the product and the packaging are best in class. Apple is into deep market research and considers the varying taste of the consumer and designs and innovates the products accordingly. The IPhones or the IPODS are ...
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
continue to flourish as major labels begin to make less and less sense as far as
Marketing is a key factor in every company; to market successfully one must know what motivates a consumer to buy a product, in order to gain a new consumer, or win one from the competition. Consumer motivations are the factors that influence a target demographics’ decision making. They are used to identify why a customer chooses Product A rather than Product B. A known way to influence customer motivations is via targeted advertisements. A targeted advertisement is aimed at a specific demographic for a specific product at a specific place or time. An example would be if Product A’ s commercial were to be run during a football game that is being watched in Vermont. This would target a male audience that likes sports, in addition to the teams involved in the game. A commercial for baby toys may not be as efficient in this case as would a commercial for beer.
GM- focused differentiation, medium pricing, breadth of product line is high. A strength is market share, and a weakness is styling and reliability and perceived quality.
We can’t assume consumers will remain loyal if we don’t adapt and learn and you can’t assume brand strength alone will keep them or attract new consumers. The market will change and new will enter the market. I realized that the 5 D’s (Discovering, Defining, Developing, Doing, and Directing) in the marketing process is a continuous, an ongoing evaluation of the market conditions and the continued adaption. For Digital Channels, that means we must have the best feature rich products and service that our customers value. We can’t assume they will stay with us because they have for years. The moment a company becomes complacent, they become