With two main players in the fledgling satellite radio industry, Sirius and XM, Sirius was third in a two-horse race. Notwithstanding the multiple assets of the radio, - loads of channels (sports, news, music etc.), broadcasting 24 hours daily, commercial-free – people still preferred XM to Sirius. Both radios were essentially alike, but XM was founded earlier.
The marketing cost for Sirius to build its customer base, convince people to pay for its service and then buy from the second fiddle would be, I estimate, approximately a gazillion bazillion dollars.
What should they do to establish themselves and really attract more customers?
prsa
March 29th, 2009 at 2:44 pm
In the book The 21 Immutable Laws of Marketing, the first law states Be First In A Category. It gives the example of Charles Lindberg being the first person to fly across the Atlantic Ocean - which is why everyone remembers his name. But, not surprisingly, no one remembers the second person who made the flight. But, everyone remembers Amelia Earhart because she was the first WOMAN to solo across the Atlantic.
Thus introduces the second immutable law of marketing: If you can’t be first in a category, invent a new category.
By the same token, if Sirius wants to me serious headway into the satellite radio market, they will have to try and create a new category of satellite radio. How they go about that may involve either a technical or a creative marketing solution.
From my perspective, this is the only way the Sirius will be able to make new prospective customers take a second look at them and move them to the top of their satellite radio shopping list.
March 30th, 2009 at 4:40 am
Partner with auto manufacturers so that buyers of new cars get 60 days free. Many will sample and like.
Get more newsworthy programming. Howard Stern switching was a great example but they need more. Get special programming that people want - the radio rights to the super bowl, American Idol concert series, …