To: AMRC Board of Directors
From:Robert Acker Dir. Strategic Planning
Subject:Summary - Market Entry Plan for XM Launch
I am forwarding this document as a primer for our initial business strategy presentation next week. I have prepared a summary of our launch plan to facilitate the meeting discussions and decisions. This plan addresses all critical decisions that must be made prior to launch. These questions include: ·Value Proposition
·Tactical Marketing Plan
·Launch Budget Focus
Executive SummaryXM will become the dominant Satellite Radio service provider in the US radio industry. We will use viable and relevant new technologies to satisfy strong (and growing) consumer demand for better radio a super-high quality, ad-free, mobile, and personal listening experience. We will gain deeper market penetration than Sirius by providing products and service for all listening environments (car, home/office, and personal). We will compensate for Sirius' head start by focusing on the buying channels and allowing them to create the initial market awareness. We will dominate the customer access channels and build brand value alongside premier partners and retailers. The XM brand will penetrate the evoked set via ACCESSIBILITY. Because demand will be catalyzed by ad-free broadcast, we will adopt a subscription model. Due to inelastic demand, pricing will be premium-competitive in order to maximize short and long-term profitability.
Value PropositionBrand value is built by creating value with the customer; this can be done by developing the perception that the customer sees our product as something they created. As with the prior transition to FM radio where customer uptake was facilitated by the peoples' desire for less frequent advertisements, we will use this fact to position XM as a solution with ad-free, top-quality content...