Marketing Plan: Phase II
Replay Radio is the new product introduced by XM Radio. This product is intended to revolutionize satellite radio. The proper marketing strategy and plan will ensure that this product will be a success. This paper will summarize the product's life cycle and describe the product's attributes. Team B will also identify a price strategy, analyze the impact of channel management, identify a promotional strategy, create an advertising plan, and identify public relations strategy.
The product life cycle and pace of Replay Radio is determined and affected by various factors. During the life cycle phase of Replay Radio XM's marketing team will introduce the new product. During this phase the team will be on a strict budget but not limited. This stage is the most important of all stages. XM's marketing team plans on successfully marketing Replay Radio to all consumers from teenagers to middle aged adults. The total concept of our product will be to produce a quality product and generate excitement about the new technology.
Due to the pending patent of the technology and the competitive advantage XM tends to gain, a skimming price strategy is implemented and limited amounts of the product are available in the beginning.
The second phase is growth, during this phase of the product's life cycle the product tends to become more profitable and competitors tend to become more attracted to the market. Companies tend to start forming alliances, and more money is put into the advertising the product (Life Cycle, 2007). Replay radio should be in mass production at this point of the life cycle and be marketed to manufacturers worldwide.
The third phase is maturity; products that tend to survive the early phases normally spend the longest in this particular phase. Sales tend to grow at a decreasing rate then stabilize and price wars begin with the competition and promotion of the product becomes more widespread (Life Cycle, 2007).
The final stage is decline, at this point the products sales tend to turn downward in the market. This downward trend happens when the taste of the consumer changes. Price cutting is intense and some products are taken off the market totally. In some cases profits can improve by reducing the amount of money spent on marketing the product and cost cutting (Life Cycle, 2007). Hopefully, by this point Replay Radio will have added technology to give to the consumer.
Replay Radio is the newest technology in satellite radio. Using the same technology that is used for TiVo, Replay Radio lets satellite radio users record all their favorite shows. Recording is just the beginning of this products attributes. Replay Radio will also automatically find radio shows and can be set to record them daily. The rewind function can be used without the record function. How many times do people want to hear a song again on a radio station? With Replay Radio, it is possible not only for...