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?
-The American people were hungry for new music, so they accepted the independent stations of the majors.
... 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).
DIFFERENTIATION- AT&T’s exclusive agreement to market and sell the iPhone with Apple Corporation has differentiated itself from its competitors. Utilization of its vast spectrum to offer video conferencing service (video share).
With a near total saturation of the consumer electronics market, companies need to look beyond their boundaries and add value to their offerings, and sometimes it means total reinvention of the company.
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.
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.
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.
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.
While people have differing opinions on what the relationship between packaging and brand identity is, it is clear that most support the idea that success depends on how well these two elements are collated. [1] On its own, a brand identity is the vessel in which a brand communicates its “identity and value[s] to consumers and […] stakeholders.” [5] (Nandan, S., 2005, p. 265) It plays a central role in a successful marketing strategy for any company, providing a brand with a “direction, purpose and meaning”. [2] (Aaker, D. A., 2010, p. 68) With such a competitive and overcrowded market, the role of a brand identity becomes essential. A brand identity helps communicate a brand’s individuality, enabling it to establish a powerful presence amongst competitors. [5] (Nandan, S., 2005, p. 265) In fact, Nandan, S. (2005, p. 276) states that,
Sirius XM could be considered a monopoly in the world of satellite radio. Sirius XM seems to have the most prevalent presence in this industry. However, if there were a competitor for the radio itself Spotify and Pandora would likely be considered competition.
By quality/value – positioning of the product based on high quality. Also can be claimed that the product have high value.
Where there is rapid growth comes increased competition; similarities in products across manufacturers have reduced brand differentiation across the board. The problem now is the severe rise of copycat companies and manufacturers that copy designs and specifications of cars, and proceed to undercut the original manufacturer’s profit margins. So to improve their brand standing, every manufacturer’s individually have resort...
Every company seeks to create its own brand - a unique and effective image. Purpose of brand is attracting and retaining customers in its market share. Branding in marketing is a complex technology, aimed at making advantageous position a brand from the competition. Facilitating the search for the necessary goods to the buyer, branding in marketing becomes more effective if the consumer product features meet market requirements. It is especially necessary to identify the goods, for a case of unprepared buyer which can not assess the competitive characteristics (for example, high-tech products). The development of technology has had a huge impact on human society. It is reflected in the fact that we are surrounded by complex technical devices that we use every day and sometimes we have no idea of how this thing is located within. Here the brand comes to help the consumer that stands out from all those product characteristics that are important to the consumer and facilitates the understanding of the product.
continue to flourish as major labels begin to make less and less sense as far as
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