Ryan McKernan
Marketing 761
Tues. 7-9:40
XM Radio Case Analysis
1) Value Proposition Seamless radio coverage throughout the continental United States. A wide variety of radio programming to suit listeners from different backgrounds and with different listening interests.
Target Market Both male and female tech friendly, frequent radio listeners. Age 25-40 years of age. Depending on payment options income may become important but more than likely it is not very relevant as to who the early adopters will be.
2) To initially gain a large market share it would be wise to price low initially for basic services. The option of offering cheap ($5/Month) or Free service and only charging for the initial receiver could help gain a large customer base. Although this is a problem because revenue would be based majorly on advertising. Charging customers for premium services ex: more channels or for certain programming is a way of retaining a large initial market share......
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Approximate Word Count: 587
Approximate Pages: 3 (260 words per double-spaced page) |