SIRIUS SATELLITE RADIO
by
Paul Long
Heather Minso
Whitney Bandy
Tony Young
Kelley Henderson
TABLE OF CONTENTS
Situation Analysis
1
Target Market Analysis
6
Positioning Strategy
7
Message Strategy
9
IMC Objectives
11
IMC Budget
12
Media Strategy
14
Advertising
18
Sales Promotion
20
Public Relations
22
Personal Selling
24
Internet Advertising
25
Evaluation of IMC plan
27
References
28
Appendices
29
1
SITUATION ANALYSIS
Satellite radio was established in 1992 when both Sirius and XM paid $80 million
dollars each and received approval from the FCC in 1997 (Walczak). Sirius Satellite is
based out of New York and was officially launched July 1, 2002 while XM radio is based
out of Washington, DC and was launched September 25, 2001.
Internal Factors:
Sirius Satellite has established themselves as a hip, new face for radio listeners.
Sirius has many product strengths and benefits that separate them from AM/FM radio.
Sirius allows for easy installation. Customers can either have someone do it for them or
they can actually install the radio themselves. There is no signing of a contract when you
purchase Sirius because it is subscription based. The current subscription rate for Sirius is
only $12.95 a month, which is a relative low price for what the consumer is getting. Sirius
offers over 120 channels, with 65 channels being 100% commercial free and 55 channels
of world class sports, news, talk radio, traffic updates, and weather (Goldstein). Another
beneficial feature to customers is the option of pause or fast forward. By allowing this
specific function, Sirius allows the customers to have more control over what they are
listening to. Sirius also offers customers the option to program their favorite songs and
whenever they are playing on any channel, the listener will be notified.
Other strengths and benefits of Sirius Satellite is the accessibility to put this product
wherever the customer wants. Sirius can be installed in cars, boats, office, aircraft, and
RV’s. In the automotive sector, Sirius radios are available in nearly 80 different models
with more than 50 offered with factory installation. Partners include, Chrysler, Ford,
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BMW, and just recently Audi. Land Rover and Volvo have also announced plans to team
with Sirius radio (Sirius Satellite Radio Company History). The rental company Hertz
currently offers 29 vehicle models at 53 locations around the country that are installed
with Sirius radio (www.sirius.com). This allows renters to get a taste for the satellite radio
and see what the buzz is about.
Although Sirius does come previously installed in new vehicles, consumers also have
the option of going to local retail stores such as Sears, Circuit City, Best Buy, and Advance
Auto Parts to purchase the Sirius System. The installation is user-friendly and can be
completed in less than 15 minutes (www.sirius.com).
Like any product, Sirius has some unique selling points that set them apart from
competition. For instance, a large contributor to Sirius radio’s success in the past few years
has been Howard Stern. When Howard Stern signed on with Sirius in 2004 subscriptions
went off the charts. At the time, Howard Stern reached the target audience of Sirius 1849 year old males. Two years later, the Howard Stern Show is still just as popular on
Sirius radio and it continues to bring in new subscribers every day (www.sirius.com ).
Although Sirius offers many benefits and perks to purchasing satellite radio, there
are some weaknesses. For instance, Sirius is still in debt up to $1,084,437 due to the
payment of 80 million in order to get the satellite radio started. Sirius doesn’t target
different demographics as they should. They do have the variety of channels that fit
many different segments; however, this variety is rarely advertised to customers. It would
be very beneficial if Sirius segmented their audience depending on what they offer.
Other weaknesses include the added clutter the device causes on the dashboard and the
occurrence of radio blackouts in some areas.
When comparing Sirius to XM there aren’t many differences in the products. XM
offers more channels; however, Sirius offers more channels that are commercial free. XM
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currently has more subscriptions; however, due to current legal problems, XM subscriptions
have fallen, allowing Sirius to benefit.
External Factors:
Consumer Analysis:
Currently there are 3 million adults that have already subscribed to Sirius and an
estimated 5.5 million plan to subscribe within the next 12 months. A recent study shows
that 9% of men are more likely than the average consumer to plan to subscribe to Sirius.
Over 30% of subscribers are between the ages of 25-34 and are 38% more likely to be
single with the mean household income planning to subscribe to satellite radio being $74,
066 (Goldstein).
With the current subscribers Sirius has, the target audience is 18-49 males
(Goldstein). This specific target audience is mainly influenced by the Howard Stern Show
as well as the many sports shows such as ESPN that are offered through Sirius. A Mars
Study in 2004 shows that the majorities of subscribers to satellite radio are college
graduates or have obtained higher education (Latina). In order to appeal to customers,
Sirius has been endorsed by many celebrities and heavily advertised by media platforms
such as Maxim Magazine and Entertainment Weekly. Sirius has also tried to reach women
by placing advertisements in Cosmopolitan (Bachman).
Geographically, more consumers seem to be purchasing Sirius in the small
populated areas that have limited radio stations to listen too. Customers in larger areas
have a large variety of radio stations and because many people live in apartments, it
may be harder to install satellite radio (Latina).
In the beginning, customers perceived Sirius as a fad that would pass. People
didn’t understand why they would pay for radio when they could get it for free. This was
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also the deal with cable TV when it first arrived. Just like TV, the first innovators to use the
media were the higher educated and more affluent consumers. Consumers now
understand what Sirius has to offer. People want their information faster and without
interruptions, consumers don’t want to wait for commercials.
When purchasing Sirius, consumers want the product to match what needs they
have. Most consumers look for a low maintenance machine, affordable prices, and a
quick way to get their information. Consumers have used reviews and examined the
channel variety that is offered before purchasing Sirius. After making the purchase, many
consumers have a positive response. They like the availability of song selection, the wide
variety of talk shows, and the sound and quality of the music. Sirius appeals to customers
because of the wide variety of specialized programs and the parental controls that are
offered.
When it comes to seasonality, Sirius sees a boost in sales during the Christmas
holidays as well as Father’s Day. During the major sporting events, sales also increase.
When MLB and NFL seasons come, the sales for Sirius skyrocket.
Competitive Analysis:
The direct competitor of Sirius Radio is XM radio. These are the only two satellite
radio options available. Sirius had total revenue of $242, 245, 000 in 2005 and
employed over 614 people. XM’s total revenue for 2005 was $558,266.00 and
employed 710 people. Both XM and Sirius are in debt and will continue to be there more
years to come because of the $80 million dollar start up fee that both had to pay
(Mergent Online).
When compared together, both have qualities better than the other. For instance,
XM is only $9.95 per month while Sirius is $12.95; Sirius offers 100% commercial free
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music while XM only offers 35 out of 70 music channels commercial free. Both satellite
radios have activation processes. Sirius will actually activate your radio right then, while
you are on the phone. XM has what is called a preview channel for the first few days
giving customers up to ten channels that rotate during the day. Sirius is aimed at a
younger audience while XM is targeting a more mature audience (Holdaway). In 2005,
the sales and marketing budget for Sirius was $170, 592 while XM had a sales and
marketing budget of $487,556 (Mergent Online).
Some indirect competitors of Sirius include I Pods, MP3 Players, Clear Channel
Communications and Cumulus Media. Some benefits that I Pods offer that satellite radio
doesn’t is that you can download exactly what you want to hear. Clear Channel
Communications and Cumulus Media are the two leading radio providers; Clear Channel
alone bring in 3.5 billion in 2005 (Cohen). Local radio stations are considered competition
because they offer the personality and bond that listeners have with the DJ’s as well as
broadcasting local events that listeners will miss by having satellite radio.
Compared to the direct competition, Sirius is second; however, subscriptions keep
rising. Concerning indirect competition, Sirius is also portable like I Pods and MP3 Players.
Like I Pods, Sirius also tells listeners when their favorite songs are on.
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TARGET AUDIENCE
Currently, Sirius radio targets males aging from 18-49. It is true that Sirius has
many shows that are targeted to this specific demographic; however, they also offer
channels that would appeal to many different segments. Currently the Media Audit
Survey found that 76.1% of all adult listeners to Sirius are 35+ and 48.5 % are
45+(Dietz).
The market for satellite radio seems to be the older audience; however, Sirius has
not taken this into consideration when placing advertisements in the media. We will be
segmenting the audience, specifically focusing on the older audience. Sirius is focusing on
the younger, more educated target audience and therefore, the older audience has
remained untouched. XM is already tapping into this audience; therefore, Sirius needs to
jump on the band wagon and show how they will differentiate the product to the older
demographic. Sirius has already proven to consistently add more subscribers, for
example, last quarter Sirius added 441,101 while XM only added 285,000 (Savitz).
Because of this fact, we feel if Sirius began targeting the older audience like XM is
currently doing, they would be able to remain more competitive against XM and surpass
XM’s total number of subscribers.
Normally, this specific segment has a harder time with new innovations; therefore,
Sirius needs to show how easily adaptable the system can be.
Currently, the older
segment isn’t a fan of today’s music; therefore, by targeting Sirius to them it will allow
them more options of music to their liking.
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POSITIONING STRATEGY
This specific positioning strategy’s objective will be to draw on the older target
segment in order to reach current customers as well as attract new customers for Sirius.
We want to target customers 45-65 who have average income and who are normally not
tech savvy. In order to reach them, we want to position the brand in a new way, a way
that makes the usage of this product seem easy and effortless. Studies show that the
baby boomers are going to be a market that needs to be tapped into. Baby boomers
are now over 50 and have plenty of discretionary income and by 2025, over 80% of
people will be over the age of 50 years old. The baby boomers are use to seeing new
technology; however, so are not so welcoming to it.
Geographically, the target market will be in places not near metropolitan areas.
Being in smaller areas, there is fewer options for people to choose from, especially radio.
People will find it easier to stay more connected with the rest of the world through satellite
radio in rural areas. Because large buildings can bother the satellite readings, being in
smaller cities will also give people more access.
This specific segment is considered to be emerging consumers. Most of them will
be first time buyers of this type of technology. Many baby boomers are just now getting
acquainted with cell phones; therefore, using this type of technology will be a new step.
This positioning strategy will be consistent when trying to reach the desired target
market. We want the segment to feel comfortable when using satellite radio. Sirius will
stand for something different that gives this segment some control over what they hear on
the radio. When trying to reach the audience, benefit and user positioning will both be
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used. For instance, because Sirius has exclusive deals with car manufactures such as Audi,
BMW, Mercedes, and Jaguar we will position Sirius as a luxury item to the older segment
we are trying to reach. The baby boomers will be retiring and this is something they could
utilize in their spare time. For instance, when retiring, most people like to travel. By
positioning Sirius to an older segment we can suggest the usage of satellite radio is such
things as boats and RVs.
Different techniques will be used in order to make the target maket feel more
comfortable with the product. For instance, the 24 hours hotline will be stressed in every
advertisement heard in order to ensure the customers that there is always someone who is
willing the help them with the product. Installation will also be made easier because it will
be provided on site where the product is bought. If a consumer wants to install the
product themselves, step by step directions will be issued as well as the 24 hour hotline
availability.
The target audience needs to understand the benefits that Sirius has to offer them
and when positioning this specific product, demographics and psychographics will be
taken into consideration in order to achieve the maximum level of reach.
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MESSAGE STRATEGY
Technology advancement has become expected and common in the 21st century.
More and more people are adapting to the advancements intended to either simplify or
expand on existing ideas, or the innovations of completely new, original ideas. The
younger generations have grown to become more comfortable with the constant
technological improvements because they have grown up in a time that heavily utilizes the
internet. They have come to depend on many of the advancements that are now a part of
everyday life. However, the older, baby boomer generation did not grow up with as
much technology and are less dependent on the newer innovations that have only been
around for the past decade or so. It is possible that they are hesitant to adapt to new
technologies because they have a preconceived notion about the complexity of the
products. They may think that there is no reason to change the things in their life that they
have become accustomed to.
Our message strategy is aimed to gain the interest of the older, mature audience
and to reassure them to diminish their preconceived ideas. We are confident that by our
promotions and advertising we can turn more of the older audience into Sirius subscribers.
Radio is not a foreign idea to most of the population. However, most of the baby
boomers are only familiar with broadcast radio. Consumers in this specific target market
do not understand the many benefits of Sirius Satellite Radio. Through our thorough IMC
plan, our goal is to draw in the older audience and introduce them to a relatively new
technology that they may not have ever become acquainted with. We will focus on
promoting the easy use of the satellite radio, commercial free programming, and the
diverse segments offered that can appeal the tastes of anyone. We plan on providing the
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20 car dealerships, especially the automobile companies such as Audi that have exclusive
deals with Sirius, with brochures encouraging Sirius installation into their new vehicle if it
does not already come equipped with the radio. We plan on distributing these materials
to car dealerships that appeal to the more mature market such as Audi, BMW, and Volvo.
We also will create a print ad to advertise in magazines common among older adults such
as Time and Newsweek. Our television commercials will be aired on networks that appeal
to the older demographic as well. They may not be as accustomed to the changing
technology as the younger generations, but we plan on sending a message to let them
know that Sirius is a technology than can easily be adapted to.
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IMC OBJECTIVES
Our marketing objectives have stayed quite close to what we stated in our
situation analysis. We plan to continue our focus of creating greater brand awareness
and desire for the Sirius Satellite Radio among the older Baby Boomer generation
demographic. In trying to communicate and create greater awareness of all the benefits
Sirius has to offer, we have decided to use various forms of media to inform our target
market of the different programming Sirius offers that may be of interest to them, the
many luxury automobile brands that use Sirius in their cars, the ease of use of the Sirius
Radio system, and the benefits Sirius programming provides over regular broadcast
radio.
The lead marketing communication tool we intend to use is television. We feel that
by using clever benefit maximizing commercials; we will be able to effectively reach our
target market and create an interest and hopefully a want or need for Sirius Satellite
Radio. While television will be our lead marketing communication tool, we will be using
direct mail, print ads, and sales promotions in conjunction to television, to achieve our
integrated marketing communication objectives. In the form of direct mail we plan to
distribute cards that are eye catching and informative, detailing some of the Sirius’s
programming that would be of interest to our target market that they may not be aware
of such as; Martha Stewart Living Shows and the Oprah and Gail Show. We also plan to
create a brochure that is very informative about all aspects of the Sirius radio system,
from ease of use, to types of programming, and all the many automobiles the now have
Sirius installed in their cars. The brochures we plan to place in car dealerships for
potential customers describe the benefits Sirius Satellite Radio has to offer and will
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hopefully create another positive attribute in a customers decision set, which would lead
them to narrow their choice among auto brands offering Sirius (Which is many!).
IMC BUDGET
Regarding the budget for Sirius Satellite Radio’s new program, an objective and
task method is the best to use. The objectives will be sufficiently reached through
advertising our messages through channels including television commercials featuring
celebrities that both recommend the product and make it easy to use. Previous marketing
and advertising budget allowances have not provided for such endorsements as
celebrities have been used rarely and did not make up a sufficient percentage of the
advertising effort. The total advertising/ production budget for 2007 will be
approximately $125 million dollars, a $25 million dollar increase from 2006. Having
celebrities endorse the product will increase the advertising and promotion budget by
substantially, though research of leading competitors indicates celebrities as a valuable
advertising outlet. Production costs will also increase by comparably to the advertising
costs as more television ads featuring the celebrities will be produced. Television
advertisements will total $20 million, with 2 commercials being aired during the 2007
superbowl at a cost of $2.4 million each. Celebrity endorsement expenditures will make
up $13.5 million of the 2007 budget. Advertising tracking and continued research of the
promotion will constitute an additional $12.3 million dollars. Full page magazine
advertisements featuring the product and celebrities will account for $18 million of the
budget. Billboards and transportation signage advertisements will be $15.5 million with a
heavy emphasis placed on signage at sports arenas and concert halls. $13.7 million of
the budget has been reserved for advertisement and promotion at various fairs,
tradeshows, retailer demonstrations, and big sporting events. Purchased airtime on
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regular news, music, and sports radio programs will make up $9 million dollars, and
weekly newspaper ad insert advertising will make up $7.5 million dollars. Continued
market research and product satisfaction tracking will make up $6 million dollars of the
budget, with a final $9.5 allowance for any future advertising opportunities. The
allowance in the budget will allow flexibility for any necessary or spontaneous
opportunities that could benefit Sirius.
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MEDIA STRATEGY
Objectives
A specific media objective for Sirius Satellite Radio is too increase brand recall by
85%. Consumers need to be aware of the brand and when asked about satellite radio,
Sirius Satellite is the first that comes to mind. Sirius also needs to increase brand
preference. Consumers need to go looking only for purchasing Sirius Satellite radio, and
will refuse to purchase any other substitute. Sirius also needs to focus on reaching their
target audiences. Sirius Satellite should focus on only reaching the older markets and
demonstrating through advertisements how simple using a satellite radio really has
become. Through advertisements, Sirius Satellite will be able to situate the brand socially
as well and define the brand image so the target market can better understand the
product. In order to achieve these objectives, many different forms of media will be used
in order to reach the desired target audiences.
Advertising Strategies
The specific strategies that will be used to reach the target market are reason why
ads – telling the consumer why they should buy Sirius Satellite and showing what the
brand has to offer. Since Sirius Satellite is not currently a category leader, comparison
advertising will also be used to show the differences between the two brands. When
using the celebrity endorsements, the ads will be testimonial ads. By seeing their peers
having the capability to use the product, the target market may be more accepting of the
product. Demonstration advertising is a very important strategy to use when using
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television. When the simplicity of the product is shown to the customers, sales will begin to
increase.
Media Planning
In order for this repositioning to be successful, there needs to be an average reach
of 85% and a frequency of 3. A pulsing method will be used in order to keep the
advertisements seen constantly so potential consumers will have proper brand recall of the
product. This media strategy stresses the assorted media mix. In order to achieve the
maximum levels of reach and frequency, money will have to be allocated in many
different media vehicles such as television, direct mail, and magazines. By showing the
same ad in different media vehicles, audience duplication will be achieved thus aiding in
the achievement of the media objectives.
Media Used
Television
Television advertisements will be used in order to demonstrate the simplicity of
using satellite radio. These commercials will focus on showing the ease of the installation
and directing people to the website in order for them to browse certain packages
available. Commercials will show people in luxury cars learning how to use the satellite
radio on the car lot. This will aid in reaching the baby boomers whom are purchasing
luxury vehicles at this point in their life. Other commercials will have celebrity
endorsements who will affect our designated target market such as William Shatner and
Shirley McClain. These celebrities can aid in endorsing the 24 hours help line that Sirius
Satellite offers.
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These advertisements will be shown mainly on major news channels such as CNN
and MSNBC. Commercials will also be run during on the local stations such as NBC, CBS,
and ABC; especially when the older shows such as Andy Griffith is showing.
Magazines
Advertisements will also be shown in distinguished magazines such as Times and
other business publications such as Newsweek. These advertisements will show people that
resemble the target market, using without problems, the Sirius Satellite radio.
Magazines also allow for more contact information about Sirius Satellite to be
placed on them compared to other mediums. Contact information on where to purchase
the product and who to go to in order to receive installation. Magazine advertisements
can also help promote the 24 hour hotline that Sirius has established to help with any
consumer issues.
Retirement magazines such as AARP Magazine who target the older demographic
is also a medium chosen to use. Inserts can be placed as well as magazine advertisements
that will prompt the readers to inquire more of Sirius Satellite.
Direct Mail
Direct mail will be utilized in the media strategy with Sirius Satellite. Although
some people discard what they consider “junk mail,” the older demographic is more prone
to go through everything they receive in the mail; therefore, they are more likely to read
the direct mail sent. A specific piece of direct mail that will be sent to the target market is
an interactive diagram of what the actual Sirius device looks like. This direct mail piece
will play music that will appeal to the target audience.
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Sirius Satellite can reach their target audience by purchasing external mailing lists
from other database companies. Certain tools of direct mail that will be utilized are
catalog/brochure pieces that will explain Sirius Satellite and break down what the
advantages and benefits are for the consumer.
Support Media
Support media has been used to aide in the success of many advertising
campaigns. Support media consists of outdoor advertising, aerial ads, transit ads and
directory advertising. Certain support media will be used in order to reach the desired
target audience.
Outdoor media will be used because the target market for Sirius is the older
demographic who travel and are busy people. This older demographic is either on the
road a lot driving to and from work each day or retired and like to travel; therefore, the
frequency of an outdoor ad will be an important asset to the campaign. Because this
demographic travels frequently, aerial and transit advertising will be used as well.
Media Not Used
Newspaper
Newspaper was not used to influence the purchase of Sirius Satellite by the target
audience. Newspaper is only in black and white and readership has been declining in the
past few years. In order to appeal to the older demographic, Sirius will need to rely of
demonstrational advertising and newspaper hinders this objective.
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ADVERTISING
Creative Strategy (determining what the advertising message will say)
The creative strategy for Sirius Satellite is to target individuals ages 55 and older
and to make them aware of Sirius’ ease of use and new channel offering through the use
of television, radio, and print ads. The reason why and demonstrational advertising
methods would educate the target consumers about how they would benefit from using
Sirius Satellite radio and its different subscriptions.
Campaign Theme
Focus on “ease of use” of Sirius Satellite receiver units, and also on the “older age
themed programming”. The advertising will show the variety of choices that will appeal to
each person in the target audience.
Advertising Appeals
Rational appeal will be used to explain the benefits including the “old fashioned”
radio programs and “book club programs”, and how XM does not have such a service
offering. Use “appeal of authority” technique using older celebrities such as Regis Philbin,
Dan Rather/Mike Wallace, Andy Rooney, and Shirley MacLaine in advertisements to
endorse the purchase and use of the product.
Emotional appeal advertising will create a positive emotional appeal highlighting
the joy and fond memories of old radio programs and the positive feelings associate with
a favorite or new book from the “book club program”.
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The ease of use appeal will be used in both rational and emotional appeal
centered advertisements thus demonstrating the product ease of use and user friendly
design.
Execution Style
The use of older celebrities in the advertising campaigns will reach out to the older
population and help them relate to their wants and needs for a satellite radio. This type
of service that offers this type of programming is specifically designed with the older
population in mind. These celebrities will relate to the target consumer and instill a sense
of association with age, shared values, and experiences.
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SALES PROMOTION
Objective for Sales Promotions
Using sales promotion for Sirius Satellite is a great way to have interactive
connections with the target audience. By using sales promotions, Sirius Satellite hopes to
stimulate trial purchase, introduce this new brand to the older target market, and combat
competitor’s strategies.
Sales Promotions Used
Coupons
Coupons will be inserted in the magazines in order to increase consumer
redemption rates. The coupons will allocate to customers a 10% off a satellite purchase if
installation happens on site.
Trial Offers
Trial offers will be advertised to customers in order to give them assurance when
purchasing a new product. This trial period will last thirty days and customers can bring
the product back if they are unsatisfied. During the trial offer time, Sirius will offer
customers a variety of their listening channels as well as contact with a salesperson to
answer any questions they may have.
Premiums
With the purchase of Sirius Satellite, customers will receive a car kit that contains
an organizer cup holder that will hold a cup, cell phone, and pens. A local travel phone
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book will also be given to the customers to add convenience for the traveling target
market.
Rebates
Rebates will be used in order to keep the customer happy. After purchasing the
specific Sirius package, a mail in rebate will be offered to customers.
Sales Promotions Not Used
Contests and Sweepstakes
Contests and sweepstakes will not be used by Sirius because of the large scale of
this specific purchase. The contest/sweepstakes becomes the primary focus, and Sirius
wants the customers to want to purchase their product. B participating in a contest or
sweepstake contestants may forget what they originally wanted out of the
contest/sweepstake.
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PUBLIC RELATIONS
Situation:
Sirius Satellite Radio provides satellite radio services. As of Dec 31 2005, they
offered over 133 channels, including 69 channels of commercial-free music and over 64
channels of sports, news, talk, entertainment, traffic and weather programming to
subscribers throughout the continental U.S. Adding new channels specifically targeted to
the population ages 55 and older could possibly increase brand awareness and revenue.
Objectives:
To Reposition Sirius Satellite Radio to the older population (ages 55+) and
increase brand awareness in order to increase sales.
Target Audience:
Current and lapsed satellite radio subscribers; men and women aged 55+. This
specific demographic is normally afraid of new technology and through promoting brand
awareness; the target market will become more comfortable with the product.
Strategies:
One of the public relations strategies that will be used is to increase brand
awareness through existing channels-radio, television, internet, and print ads. Other PR
promotions will involve major sporting events that off “senior citizen special days” for
promotion of product and introducing the new channels/features of the product to convey
the idea that Sirius has programming specifically designed for the older population.
Tactics:
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Certain tactics that will be used to increase the success of PR is hosting events with
an array of celebrities and entertainers ages 55+ who are using demonstrational and
testimonial ads. By positioning “listening booths” at various locations the product
knowledge will be increased.
Estimated Calendar:
-6 month for entire project
-3 months for research/planning
-2 months for preparing media lists/programming
-1 month for arranging celebrity endorsement
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PERSONAL SELLING
One of the primary reasons we are targeting the middle to later generations is
because we feel that they may not be adopting Sirius because they don’t know much
about the newer technologies available. They may be nervous or intimidated to try
something so foreign. For this reason, personal selling will play an important role in
gaining customers for Sirius Satellite Radio.
Through personal selling, the salesperson can offer answers to any questions the
potential customer may have. They can have one on one interaction and the sales
representative can demonstrate how to use Sirius in a way that the consumer will
understand. They will be able to personally explain each feature and benefit that the
product offers. Using direct mail as a form of sales promotion will provide Sirius with the
potential and interested customers. The other forms of advertising will allow the potential
consumer become familiar with the product.
The downfall to using personal selling with Sirius Satellite Radio is that we are
targeting individuals, not corporations. Personal selling would be extremely expensive to
forego and would be very difficult to try to sell to individuals one on one.
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INTERNET ADVERTISING
The role of internet advertising in the repositioning of Sirius satellite radio is to
provide a link for 24/7 support. Currently Sirius has interactive links on Best Buy, Radio
Shack, Circuit City, and ABT Electronics websites. However, on Crutchfield website there is
not only a link to purchase a Sirius satellite radio, but also step-by-step information on
installation depending on the specific model of car. This is a vital importance to the market
we plan to reposition Sirius to. Being able to have one-on-one interaction is important for
Sirius to grow among our projected target market. We do not plan to change any internet
advertising that is currently done with Sirius. This decision is due to the projected target
market is not as technology savvy as the current target market. However the addition of
a step-by-step installation link on the Sirius satellite website will help with sales growth
among our target market.
DIRECT MARKETING
Direct marketing is one of the larger advertising elements of the IMC plan we
propose. To reach our proposed target market we plan to send out pamphlets of
information to recent buyers of any of the twenty vehicles that include the Sirius satellite
option. The decision behind emphasizing direct mailing is that most of the individuals in
our target market are not technologically savvy. By using direct mailings we are grabbing
their attention not just visually but physically in that the information is right in front of them
without having to research for it. We plan to use catch phrases from popular songs of our
target market’s music era to grab their attention. These direct mailings will be sent to both
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new buyers of the twenty Sirius satellite capable vehicles, those who have purchased Sirius
and discontinued usage of the option, and frequent shoppers of Best Buy and the other
big box retailers who sell Sirius.
E-COMMERCE
The current e-commerce plan for Sirius is working well for both the current target
market and the repositioned target market. That being we do not plan to make any
changes to the current e-commerce plan for Sirius.
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EVALUATION OF OVERALL IMC PLAN
In order to evaluate the outcome of this IMC plan for Sirius Satellite radio, sales
will be examined and broken down into age brackets in order to understand where the
sales increase generated from. Due to the sales promotion in this IMC plan, it is estimated
that the older crowd will have been the increase in sales for Sirius Satellite.
Another measurement tool will be the coupons redemption for the 10% off the
product with free installation on site. This will help researchers better understand if the
installation on site aided the decision in the purchase.
By examining the website hits as well as the 24 hour hotline call numbers,
information about the increase in callers and their personal demographics will aid in
determining if the hotline was advertised correctly and if they system helped the older
demographic feel more comfortable with the purchase of the product.
The direct mail pieces will also be examined to determine if that was any incentive
for the older demographic to find out more information about the product. Surveys could
be placed in the magazines used in order to encourage readers to give feedback.
All of the methods used in this new campaign for Sirius Satellite will be examined
and then evaluated in order to measure the success of the campaign.
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R E F E R E NC E S
Holdaway, Eric. Sounds from Space. 2005. Retrieved on October 22, 2006
Sirius Satellite Radio. Mergent Online. 2006. Retrieved on October 22, 2006.
Sirius Radio Becomes Mainstream Among American Adults. Simmons Market Research
Bureau. November 12, 2004. Retrieved on October 22, 2006.
Walczak, Jim. Facts About Satellite Radio’s History and Future. August 26, 2004.
Retrieved on October 22, 2006,
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Creative Piece 1: Brochure
Creative Piece 2: Radio Listings with Genres
Creative Piece 3: Print Advertisement
Creative Piece 4: Direct Mail 1
Creative Piece 5: Direct Mail 2
Creative Piece 6: Direct Mail 3
Creative Piece 7: PowerPoint Slides
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