Sirius satellite television radio marketing plan

Sirius Satellite A radio station, Inc.

CONDITION ANALYSIS

FIRM BACKGROUND

SIRIUS Satellite The airwaves was integrated on May 17, 1990 because Satellite COMPACT DISC Radio Inc. On The fall of 18th 99 the company improved their identity to SIRIUS Satellite Radio Inc, which can be the identity under that the FCC certificate to distribute satellite a radio station was given to. SIRIUS Satellite tv radio currently offers over 100 of music, media, sports, speak, entertainment, traffic, weather, and childrens coding to readers throughout the Us.

Their particular primary source of revenue can be through membership fees, with most of buyers subscribing to SIRIUS Satellite The airwaves on whether monthly or a yearly basis. They also get revenue from activation fees, advertising revenue on nonmusic channels and the direct sale for SIRIUS radios, which are currently sold in more than 6, 500 retail spots around the country. As of 12 , 31, 2005, SIRIUS has had over 1 ) 2 , 000, 000 subscribers and 375 workers.

MARKETS

The overall market to get Sirius can be any consumer that listens to the radio. The target marketplace that Sirius is aiming intended for is the 75 million vehicles currently on the road today. Sirius only has to gain some of this industry to become a successful company.

COMPETITION

Sirius encounters competition for both audience and advertising dollars. Additionally to pre-recorded entertainment bought or spending in vehicles, homes and using lightweight players, Sirius competes the majority of directly with all the following suppliers of the airwaves or various other audio companies:

XM Car radio. Siriuss direct competitor in satellite car radio service is usually XM The airwaves, the only various other FCC licensee for satellite radio assistance in the United States. XM Radio messages certain coding that we usually do not offer. XM Radio services is also presented as a choice on different car unit brands, selected of which do not also offer SIRIUS radios.

Traditional AM / FM Radio. Siriuss competition also contains traditional AM/FM radio. In contrast to SIRIUS a radio station, traditional AM / FM radio has had a well set up market for its services for many years and generally presents free broadcast reception purchased by commercial advertising instead of by a membership fee. As well, many r / c offer data programming of your local character, such as neighborhood news and sports, which usually Sirius will not offer because effectively as local radio. Some stereo also have begun reducing the quantity of commercials per hour, expanding the range of music played for the air and experimenting with new formats in order to compete even more directly with satellite radio services.

Internet A radio station and Installing Devices. Net radio messages have no geographic limitations and may provide listeners with radio programming by around the region and the universe. Although Sirius believes the fact that current high quality of Internet a radio station is below standard and could vary depending on factors that can distort or perhaps interrupt the broadcast, including network visitors, Sirius desires that advancements from larger bandwidths, quicker modems and wider encoding selections will make Internet radio a more significant competitor in the future.

Immediate Broadcast Satellite and Cable connection Audio. Several companies provide specialized sound services through either immediate broadcast satellite or cable audio devices. These services are aiimed at fixed places, mostly in home. The radio services offered by direct broadcast satellite and cable audio is normally included as part of a package of digital services with video service, and video customers consequently generally do not pay an additional monthly impose for the audio services.

PRODUCTS

Siriuss music programs offer nearly every genre in music via heavy metal and hip-hop to country, dance, jazz, Latina and classical. Each with their 65 music channels can be programmed and hosted by a team of experts within their field, which include musical artists and other exceptional personalities. Siriuss programming is usually dynamic, fluid and changes from time to time.

In addition with their music programs, Sirius at present offers above 55 programs of news, sports activities, talk, entertainment, traffic and weather development, most of consisting of commercial promoting. Sirius constantly evaluates their news, sports activities, talk, entertainment, traffic and weather encoding, and regularly implements improvements designed to increase and grow their service. Live play-by-play sports is an important a part of Their development strategy. Sirius is the Recognized Satellite The airwaves Partner from the NFL, with exclusive privileges to use the NFL safeguard logo and group NFL crew trademarks.

CHANNELS

Siriuss primary emphasis is on the price tag channel, specifically electronics, car and house audio, specialised, and department shops. The company offers plug-n-play receivers which are lightweight units which may have the capability penalized used in a home, car, vessel, pretty much anywhere you have usage of a base device for it whether it be an FM modulated in car bottom or a residence stereo unit base or maybe a standalone increase box. Sirius also markets standalone house audio receivers and in splash car receivers.

A secondary route of revenue for Sirius is through car producers. This is supposed to become among Siriuss major channels inside the coming years. Sirius features contracts numerous auto suppliers including Ford, Daimler-Chrysler, and BMW and the like who have chosen to off Sirius being a dealer installed option in certain models or as a stander feature in others which can be coupled with a trial registration pack that varies from one particular manufacturer to another.

Sirius likewise currently uses the internet an additional secondary product sales channel. Sirius offers direct selling from their site at http://www.sirius.com/ where you can get a recipient and membership directly from Sirius and have this shipped to your doorstep.

ENVIRONMENT

Economic Concerns. Sirius support is still young and growing. At present sales are recorded the rise and subscriber numbers great. The company is usually vulnerable to economical change nevertheless. Since Siriuss income is founded on a membership model and satellite radio is seen as a convince rather than necessity in a time of monetary hardship Sirius could go through greatly.

Demographic Considerations. Siriuss target audience can be any typical consumer, specifically any client with a motor vehicle. There are around 100 Mil motor vehicles on the road today. The satellite radio industry has only been able to infiltrate about 4. five Million of them so far. With this big target market and the word about this new technology spreading there is even now room for huge growth.

Social and Cultural Factors. The amount of social and cultural diversification within just Siriuss target audience is big. To take advantage of this, Sirius offers programming regardles of the model to appeal to any audience. From hiphop and best 40 visitors genres for the all Elvis channel and simple listening Sirius has covered everyones musical technology wants and needs. Also with talk radio you will find anything coming from Sirius Left and Sirius Right politics talk stations to Saying radio pertaining to the guys and even Disney A radio station for the kids.

Political and Legal Consideration. As a great operator of your privately held satellite system, Sirius can be regulated by the FCC beneath the Communications Action of 1934. The FCC is the govt agency with primary power in the United States above satellite a radio station communications. Virtually any assignment or perhaps transfer of control of the FCC certificate must be approved by the FCC. Sirius currently must comply with regulation by the FCC primarily with respect to: the licensing with their satellite system, preventing disturbance with or to other users of radio frequencies, and compliance with FCC rules established specifically for U. S i9000. satellites and satellite car radio services.

PREVIOUS RESULTS

Product sales of Sirius Satellite A radio station service are rising. Sirius has not viewed a top in customer additions and expect to optimum until 2010 expecting large growth till that time.

Members:

Metrics:

SWOT and Concern Analysis

Strong points. SIRIUS provides its members exclusive benefits to NHL, NBA as last year, NFL events. Besides regular time games, this consists of pre and post season games, playoff games, and both home and visiting team broadcasts. SIRIUS has contracts together with the National Basketball Association identifying them the state Satellite The airwaves of the NFL. Similarly, SIRIUS is also the state Satellite Car radio of the NHLs Stanley Glass Playoffs. Sirius also has legal agreements with NASCAR taking that from rival XM in 2007 and with Howard Stern who will leave Viacom to start with Sirius January you, 2006.

Weaknesses. Currently, SIRIUS insurance policy protects the company for $110 , 000, 000 per satellite television. If a dish should are unsuccessful, this payout only includes the start of their next back up satellite tv, buying an additional satellite could come out of the companys pocket. In addition , SIRIUS mentioned lessening their insurance plan over the next few years. In my opinion, the satellites will be SIRIUS is a axis of their entire organization. They should at least cover the start of their back-up satellite as well as the cost of a fresh satellite. They might even when you go as far as protecting themselves intended for the six months it would decide to try launch their backup satellite tv when their very own systems overall performance would be underneath 100%.

Possibilities. SIRIUS is currently beginning to provide service to Canada and is to add system content to begin service to Mexico eventually as well. As the base platform had been put into place, the size of SIRIUS satellite systems allows it to get expanded quite easily. This gives the company the opportunity to go into virtually any country in the world and set up shop. This will likely open up the customer base substantially.

Threats. XM Radio: XM Radio is SIRIUS major competitor in all respects of their business, including full and auto distribution preparations, programming acquisitions and technology. Also, every subscriber that XM symptoms on can be described as potential customer misplaced for SIRIUS. As of Sept. 2010 30, 2005, XM Dish Radios customer base two times bigger than SIRIUS. For that reason added subscriber-given revenue, XM Satellite The airwaves is in a much better financial position to manage any financial difficulties (i. e. satellite tv failure, high programming content material costs). XM also offers their very own service intended for $9. 99/month compared to SIRIUS $12. 95/month.

Dish Failure: Should a satellite fail, it could take in least 6 months to get the back up satellite introduced into orbit. If two satellites should certainly fail, it might take the firm up to 24 months to receive another satellite television, and acquire both the back up and the fresh satellite in to orbit and have the network working again. In this 6 month to 2-yr period, SIRIUS would confront a serious loss of clients, decreased client confidence in their dependability, and hundreds of millions of dollars worth of costs to obtain their system back into order. A thing of this value could very much run the business into bankruptcy.

Obsolete Assistance: Both the dish industry and the audio entertainment market are characterized by rapid technological changes and frequent cool product innovation. In the event that SIRIUS is unable to evolve with these changes in a way that customers require and anticipate, the business would likely fail. Dish radio is an extremely new service. Who understands how long will probably be the latest in audio technology, and how lengthy customers demand it prior to the next ideal thing comes on industry?

Mission and Objectives

Sirius is changing the way America listens to music, sporting activities, news, and entertainment. Sirius wants to offer quality, superior entertainment to everyone.

ADVERTISING OBJECTIVES

To enhance the number of wall socket where Sirius is being sold by fifty percent over the following 2 years.

To introduce a fresh product, buffering video, through its satellite television radio service within the next 12 months.

To gain authorization to and commence to sell Sirius satellite a radio station in Canada under the Brand name Sirius Canada.

PRODUCT SALES OBJECTIVES

To enhance total number of subscribers to 15 million simply by 2010.

To keep sales development over the next year regardless of the community economy.

To get to the breakeven point and commence to make a revenue.

TARGET MARKETPLACES AND POSITIONING

Sirius is using a target market strategy to give attention to selected client and auto maker segments. Sirius has segmented the consumer market based upon lifestyle, hobbies and interests, interests, and beliefs.

Client Segments. Sirius is marketing to everyone. Sirius provides gained unique contracts with most significant sporting businesses. Sirius has the only nationwide gay and lesbian talk channel on radio. To top it all off Sirius offers a music collection that any person would enjoy and in 2006 will have the very best radio showmaster joining their selection, shock jock Howard Stern.

Organizational Sections. To reach targeted consumers Sirius uses retail outlets across the country and has legal agreements with many significant auto manufacturers to manufacturing plant install Sirius into new autos. Siriuss plans to realize exposure through this portion increasing brand awareness and subscriber amounts.

PRODUCT APPROACHES

Sirius provides realized that only a few consumers are equally there because offer a varied selection of receivers. Currently you will discover four several types of SIRIUS radios: Plug and Play Radios, FM Regulated Radios, Three Band Radios and House and commercial units. The radios are designed by a lot of well known labels including Kenwood, JVC, Clarion, Audiovox as well as the Brix Streamer (for Trucks). At the moment, SIRIUS radios are available at RadioShack and through EchoStars Dish Network. Via 2004 onward, the radios will be available for more than 20, 000 full locations nationwide in order to give maximum coverage.

PRICING TACTICS

Sirius provides pricing structures for everyone. Sirius offers regular monthly service strategies at a flat rate of 12. ninety five per month and cheaper rates on further receivers on a single account. Likewise Sirius presents cheaper rates for a one year subscription and on a lifetime of the receiver.

REGULATES

Sirius will use several equipment to evaluate and control activities implemented underneath this marketing plan. 1st Sirius will use monthly craze analyses to examine sales by simply channel, sort of reseller, and by geographical area. This information will provide to make changes in advertising earnings where required.

Second, Sirius will use customer feedback as a means of top quality control. Customer opinions will be supervised for any potential problem areas, In the event any happen to be discovered this article be used pertaining to future changes.

Third, Sirius will execute a marketing review in midyear and again at years end to gauge the effectiveness and efficiency of the advertising programs. This way, Sirius should be able to pinpoint areas for improvement and prepare a contingency cover emerging complications.

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