Sirius Satellite Radio Marketing Plan Essay Example For Students

Sirius Satellite Radio Marketing Plan Essay Sirius Satellite Radio, Inc. SITUATION ANALYSISCOMPANY BACKGROUNDSIRIUS Satellite Radio was incorporated on May 17, 1990 as Satellite CD Radio Inc. On November 18th 1999 the company changed their name to SIRIUS Satellite Radio Inc, which is the name under which the FCC license to distribute satellite radio was given to. SIRIUS Satellite radio currently offers over 100 of music, news, sports, talk, entertainment, traffic, weather, and childrens programming to subscribers throughout the United States. 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. MARKETSThe overall market for Sirius is any consumer that listens to the radio. The target market that Sirius is aiming for is the 100 million automobiles currently on the road today. Sirius only has to gain a small portion of this market to become a profitable company. COMPETITIONSirius 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:XM Radio. Siriuss direct competitor in satellite radio service is XM Radio, the only other FCC licensee for satellite radio service in the United States. XM Radio broadcasts certain programming that we do not offer. XM Radio service is also offered as an option on various car model brands, certain of which do not also offer SIRIUS radios. Traditional AM/FM Radio. Siriuss competition also includes traditional AM/FM radio. Unlike SIRIUS radio, traditional AM/FM radio has had a well established market for its services for many years and generally offers free broadcast reception paid for by commercial advertising rather than by a subscription fee. Also, many radio stations offer information programming of a local na ture, such as local news and sports, which Sirius does not offer as effectively as local radio. Some radio stations also have begun reducing the number of commercials per hour, expanding the range of music played on the air and experimenting with new formats in order to compete more directly with satellite radio services. Internet Radio and Downloading Devices. Internet radio broadcasts have no geographic limitations and can provide listeners with radio programming from around the country and the world. Although Sirius believes that the current sound quality of Internet radio is below standard and may vary depending on factors that can distort or interrupt the broadcast, such as network traffic, Sirius expects that improvements from higher bandwidths, faster modems and wider programming selections may make Internet radio a more significant competitor in the future. Direct Broadcast Satellite and Cable Audio. A number of companies provide specialized audio services through either dir ect broadcast satellite or cable audio systems. These services are targeted to fixed locations, mostly in-home. The radio service offered by direct broadcast satellite and cable audio is often included as part of a package of digital services with video service, and video customers therefore generally do not pay an additional monthly charge for the audio service. PRODUCTSSiriuss music channels offer nearly every genre in music from heavy metal and hip-hop to country, dance, jazz, Latin and classical. Each of their 65 music channels is programmed and hosted by a team of experts in their field, including musical performers and other unique personalities. Siriuss programming is dynamic, fluid and changes from time to time. In addition to their music channels, Sirius currently offers over 55 channels of news, sports, talk, entertainment, traffic and weather programming, most of which includes commercial advertising. Sirius continuously evaluates their news, sports, talk, entertainment, traffic and weather programming, and regularly implements changes designed to improve and enhance their service. Live play-by-play sports is an important part of Their programming strategy. Sirius is the Official Satellite Radio Partner of the NFL, with exclusive rights to use the NFL shield logo and collective NFL team trademarks. CHANNELSSiriuss primary emphasis is on the retail channel, specifically electronics, car and home audio, specialty, and department stores. The company sells plug-n-play receivers which are portable units that have the capability of being used in a house, car, boat, pretty much anywhere you have access to a base unit for it whether it be an FM modulated in car base or a home stereo unit base or even a standalone boom box. Sirius also sells standalone home audio receivers and in dash car receivers. Disability in The Workplace EssayObsolete Service: Both the satellite industry and the audio entertainment industry are characterized by rapid technological changes and frequent new product innovation. If SIRIUS is unable to evolve with these changes in a way that customers require and expect, the business could very well fail. Satellite radio is a very new service. Who knows how long it will be the latest in audio technology, and how long customers demand it before the next best thing comes on the market?Mission and ObjectivesSirius is changing the way America listens to music, sports, news, and entertainment. Sirius wants to provide quality, premium entertainment to everyone. MARKETING OBJECTIVESTo increase the number of outlet where Sirius is being sold by 50% over the next 2 years. To introduce a new product, streaming video, through its satellite radio service within the next 12 months. To gain approval to and begin to sell Sirius satellite radio in Canada under the Brand name Sirius Canada. SALES OBJECTIVESTo increase total number of subscribers to 15 million by 2010. To maintain sales growth over the next year regardless of the world economy. To reach the breakeven point and begin to make a profit. TARGET MARKETS AND POSITIONINGSirius is using a target market strategy to focus on selected consumer and auto maker segments. Sirius has segmented the consumer market based on lifestyle, hobbies, interests, and beliefs. Consumer Segments. Sirius is marketing to everyone. Sirius has gained exclusive contracts with most major sporting organizations. Sirius also has the only national gay and lesbian talk channel available on radio. To top it all off Sirius offers a music selection that anyone would enjoy and in 2006 will have the top radio entertainer joining their lineup, shock jock Howard Stern. Organizational Segments. To reach targeted consumers Sirius uses retail outlets across the country and has contracts with many major auto manufacturers to factory install Sirius into new autos. Siriuss plans to get maximum exposure through this segment increasing brand awareness and subscriber numbers. PRODUCT STRATEGIESSirius has realized that not all consumers are alike there for they offer a diverse selection of receivers. Currently there are four different types of SIRIUS radios: Plug and Play Radios, FM Modulated Radios, Three Band Radios and Home and commercial units. The radios are manufactured by several well known names including Kenwood, JVC, Clarion, Audiovox and the Brix Streamer (for Trucks). At the moment, SIRIUS radios can be bought at RadioShack and through EchoStars Dish Network. From 2004 onward, the radios will be available at more than 20,000 retail locations nationwide in order to offer maximum exposure. PRICING STRATEGIESSirius offers pricing structures for everyone. Sirius offers monthly service plans at a flat rate of 12.95 per month and cheaper rates on additional receivers on the same account. Also Sirius offers cheaper rates for a 1 year subscription and on a lifetime of the receiver. CONTROLSSirius will use several tools to evaluate and control activities implemented under this marketing plan. First Sirius will use monthly trend analyses to examine sales by channel, type of reseller, and by geographical area. This information will be used to make changes in advertising revenue where needed. Second, Sirius will use consumer feedback as a means of quality control. Customer feedback will be monitored for any potential problem areas, If any are discovered this information will be used for future changes. Third, Sirius will conduct a marketing audit in midyear and again at years end to evaluate the effectiveness and efficiency of the marketing programs. In this way, Sirius will be able to pinpoint areas for improvement and prepare a contingency plan for emerging problems.