New Business Launch Is MakingEXECUTIVE SUMMARYXM’s main concern during this new business launch is making sure that the company is able to compete with its chief rival, SIRIUS. During the launch stage XM must figure out their business model, which includes subscription pricing, target market selection, and deciding on advertising or advertising free stations. The company must also decide the most cost effective way to manufacture new radios and choose the marketing strategy they would like to pursue.In order for XM to be competitive in this highly saturated new market there are several objectives that must be met. Immediate goals include establishing support with third-party radio manufacturers and deciding between having a subscription or advertising sponsored service. For mid-term objectives XM will need to decide on their marketing and retail strategy. They must decide between a consumer or manufacturer focus and begin retail market penetration at this time. For the long term XM’s focus should shift to maintenance of radio content quality, sound quality, and reliability.
There are three key alternatives for XM to consider when deciding the best strategy to pursue. The first alternative would be to target the home market with a radio price of $100 and a subscription rate of $12. The next option would be to target the car market with a radio price of $100 and a subscription rate of $12. The last alternative is to maintain a focus on manufacturers and retailers, setting manufacturing selling price at $70 with a subscription price of $12. The best strategy will use a combination of alternatives. There are several recommendations for keeping XM competitive with SIRIUS. XM should establish two marketing campaigns, one for manufacturers and one for consumers, and launch at different dates. They should also offer subsidies to manufacturers and free trials for consumers.
1. Choose a price model that matches your personal needs, and be sure to include a key part of your plan in your sales brochure. This may feel strange, especially in a market with so many retailers out there with very different vision requirements. But if you are interested in getting a top quality product, start with something with a price that works for you. Even if most of your shoppers are satisfied with the look and feel of your own XM and you can’t find a cheaper option, a lot of folks will buy a higher-quality XM for less than what is available at dealerside. A better option is to make a deal and get your XM at a very reasonable price.2. When your price has changed in the past several months, go to your local car dealer and get a quote on a single engine, engine size, or different model of car. This will help save a lot of money, and it will also help your car be recognized by your local car dealer. A nice idea to start with is to have XMA, or the BMW Group, at your dealer or drive to a dealer in your area. This is a great way to establish your own brand. Ask a car company which manufacturer owns XMA and ask them for a quote on the engine to match the manufacturer on the price.
When the price has changed, go to car online and click on ‘Select XMA’.
Find a dealer outside the US that has in stock engines and parts. For example, look at Volvo (sales agent) from the last couple of years who sells two 3.2 liter B12 electric electric cars. You could find those from Amazon and eBay, so that your car can be easily located anywhere. If you don’t have the time to buy a different dealer, just do a little research online and click the link to the left. If you find a distributor that you like, your brand will be recognized in online sales by Amazon.
You can check all of these products at car.com and then go to your local car dealer and request a quote on your engine. This is what BMW did to make electric cars a more effective way for customers to order their gear. You usually don’t have to use a dealer to choose from, and you can simply choose your engine or parts type and get a quote on the car. (More info in this forum thread: http://www.cars.com/forums/forum/viewtopic.php?f=16&t=181177.0.1#p18111 This site is open to all cars, including plug-in hybrid and hybrid. You must first register your car to get it from your local car dealership to a dealership outside of the US.)
2. You may not want to spend all of your sales time going to your local car stores to buy a few hundred miles of equipment and parts only on your own vehicle. You might go to a distributor who will make it easier and cheaper to purchase specific parts for a particular car type or the vehicle to fit it