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Sirius Marketing Plan Situation Analysis Sirius Satellite Radio, Inc. is one of the major players on the U. S. and Canada satellite radio market, with its headquarters in New York City. Sirius Satellite Radio, Inc. was officially launched on July 1, 2002.
Currently provides its customers 69 music channels and 65 channels of news, sports, and entertainment. Sirius Satellites music channels are broadcasted 24 / 7, commercial-free. Some channels are included in the Dish Network satellite television service. Sirius Satellite Radio, Inc. business model provides pay-for-service radio. The subscription costs range from $ 12. 95 /month to $ 499. 00 /lifetime subscription.
Sirius Satellites slogan is The Best Radio on Radio. The companys name takes its origin from Sirius, the brightest star in the night-time sky. The companys logo contains a dog, unofficially named Mongo (Radio, 2007). The companys revenues are high, as Sirius Satellite is a profitable company with its revenue USD $ 637. 24 million (2006), and net income US$ 1, 104. 87 million (2006).
The key people are Mel Karmazin, CEO, Scott Greenstein, President, Entertainment/Sports James Meyer, President, Operations & Sales. Sirius Satellite employs 772 people (Sirius Satellite Radio, 2007). Despite of successful business performance, the companys product, satellite radio, is a product that has not proven its remarkable value to the subscribers. Sirius Satellite Radio, Inc.
requires marketing strategy that will allow the company to retain its positions in the market, and increase the quantity of companys subscribers. The previous marketing strategies seem to be not very effective due to competitors rivalry on the market, as through timing and publicity of XM Satellite Radio, the previous marketing plan failed. Therefore, among other goals and objectives, the company needs to revolutionize the radio industry by showing the awareness of value its product will provide, and develop efficient marketing tactics and strategies in order to increase the number of subscribers for Sirius Satellite Radio. Industry Analysis Competitors The major competitor is XM Satellite Radio. XM Satellite Radios brand is relatively similar in their pricing and marketing policies. The brand is relatively popular in the media, and has extensive press coverage.
Traditional radio, satellite TV and Cable TV are also competitors for Sirius Satellite Radio brand, however, they provide less services and mainly offer a fixed range of programs. SWOT Sirius Satellite Radio strengths are: well-known brand; large portion of the satellite radio market share; lack of competition in the market, as the FCC has given only two licenses for satellite production; clear high-quality sound; Sirius Satellite Radio weaknesses: the company has difficulties in differentiation from its major competitor, XM Satellite Radio; weak marketing plans in the past; monthly service fee similar to the competitor's pricing policy, thus being unattractive to potential subscribers; Sirius Satellite Radio opportunities: good chances for growth and development; new and innovative products and services; Sirius Satellite Radio threats: strong competitor (XM Satellite Radio); rapidly changing technologies may undermine the stability of the overall satellite radio market, thus making satellite radio an obsolete service; Target Market and Customer Analysis Sirius Satellite Radios target market will include the subscribers, who want to have the assurance to avoid listening to commercials, and those, who want to listen to favorite radio channels without losing a signal (thus, choosing quality). Demographics: Target group will include both female and male; all ethnicities; persons with low, middle and high income, age focus ranging from 16 to 65. Geographical Location: Heavy distribution throughout the United States Potential Size About 4 % of the population (over 10 million subscribers (overall) ) Purchase potential: $ 9. 99 per month subscription fee Marketing Strategy There are two major possibilities to increase the number of subscribers for Sirius Satellite Radio. The first one is to provide the customers with a well-thought satellite radio service that will target each group and each niche segment, thus increasing the overall quantity of the Sirius Satellite Radio audience. The second strategy will offer to setup a mass market radio service supported by the appropriate price points, and adopting a low-cost strategy that will allow the company to attract the maximal number of the potential customers, taking into account the lowest possible price for the customer to pay for the satellite radio service, allowing the company to remain profitable.
The proposed marketing strategies will allow the company to provide its customers an improved listening service, to allow them listening to a clear digital sounds, and to provide Sirius Satellite Radios subscribers wider variety of new interesting stations when they want them. Besides, the attention should be paid to the distribution system, as effectively chosen, distribution system is crucial to the company's success. Therefore, along with the other available strategies, the company will examine the possibility to establish partnerships with other FM radio broadcast frequencies to make them adapt their receivers to the Sirius Satellite Radio broadcasts as additional feature in order to introduce Sirius Satellite Radios products to the maximum possible quantity of potential customers. In addition, the company should place high emphasis on developing and detailing the appropriate marketing appeals that will be used to the customers, as it is also very important. From the issues discussed, Sirius Satellite Radio is aware of the fact that every aspect of their product, satellite radio, is quite risky due to peculiarities of the product's lifecycle, the competitive advantages of their competitors, such as XM Satellite Radio, timing, and lack of awareness among the Sirius Satellite Radios potential customers. Therefore, the given marketing plan is very important, as, if appropriately implemented it will allow the company to achieve its strategic goals and objectives, thus increasing the number of Sirius Satellite Radios subscribers.
Implementation Tactics The main objective of Sirius Satellite Radio is to increase the number of its potential subscribers. Therefore, the company should place high emphasis on its marketing appeal. Sirius Satellite Radio plans on targeting 18 - 55 year old non mainstream music lovers, workplace listeners, business travelers, outdoorsman, and frequent listeners of am and talk radio and sport programs. Therefore, the major marketing message will imply the follows.
The company wants potential subscribers feelings to correlate with the idea that they belong to the technological elite, thus making them feel that they are on a platform of an innovation and a modern-day society. The Sirius Satellite Radio will provide the subscribers more value by satisfying their wishes, desires, and demands to be in the upper echelon of the modern society. Advertising will include: Points of purchase (70 % of advertising budget will be spent on points of purchase, as this is the most important place to catch the potential subscribers attention) Magazines (Specialty Tech Magasines, Oprah's magazine, Newsweek, etc) Television (advertisements on SPIKE TV, OLN, LIFETIME, Tech TV (Discovery) during the morning and day time hours) Internet (official website only) The promotion will be focused on demo stations. The publicity will be set up at sporting events and concerts, as well as other sport and entertainment related events; however, the focus of the marketing strategy will be on mouth marketing, as it is the most effective one. The company will utilize mix of push and pull, where push marketing will come from Visteon, and pull marketing will come from the Sirius Satellite Radio subscribers demands that will come from advertising and promotion. Timing (Year 1 - 5): Within the first 5 years Sirius Satellite Radio plans on providing its potential subscribers with a subscription promotion as a gift when they will participate in the Sirius Satellite Radio product survey.
The company plans additional 20 channels of high quality reception and sound; focus on partnerships with retailers and manufacturers in order to ensure that Sirius Satellite Radio product is getting the best possible quality. References Radio, P. N. (2007, February 2). Sirius Exceeds 6 Million Subscribers and Achieves First Cash Flow Positive Quarter. Press Release. Retrieved October 16, 2007, from web Sirius Satellite Radio. (2007).
Retrieved October 16, 2007, from web
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