Sirius Displays Tune Message for Satellite Radio

New York -- The growing popularity of Sirius and the idea of satellite radio as a whole presents a significant merchandising challenge: Consumers don't quite know how it works, or understand the portability and the types of programming available.That said, retail staff don't fully understand satellite radio either. So to coincide with its latest display program, Sirius employed a third party company to maintain display setup and train store staff."We're still having to explain the hardware side of things," says Holly Salk, director of retail merchandising. "There is still not a clear understanding of what satellite radio is and what [consumers] get for paying for it." The P-O-P includes permanent counter units and temporary freestanding displays among others. The displays are rolled out on a continual, as-needed basis. Current versions of floor displays feature an assortment of information about the programming and radio show personalities (including Martha Stewart and Howard Stern).To help educate consumers, the countertop units feature graphics that illustrate the portability of the unit, which can be plugged into a car stereo, boom box, or home stereo. Informational cards can be switched out as campaign messages change, generally about four times a year. Components like tear pads and brochure holders can also be attached to the frame.Salk says the displays, designed and produced by New York-based Integrated Display Co. (IDC) and MP Displays, are generally made of styrene, brushed metal and Plexiglas, while some displays are finished with a wood laminate.Since about 80% of Sirius' sales are driven through major chain accounts like Best Buy, Circuit City, Target and Wal-Mart, the company gears most of its P-O-P efforts to the big-box players.The cost of the comprehensive display program is significant. A pallet display program runs about $80 per unit, and endcap displays at Best Buy and Circuit City can cost as much as $240 to $480 each.Part of that cost is the result of the unusual needs of the display, which requires a satellite feed to be hardwired into the store so that the display can effectively receive the signal and play the programming. "It's a professional installation that requires someone to get on the roof and drop in a line and make sure that they are getting the signal," says Salk. Sirius has also dedicated dollars to the maintenance of each display in each store. The company contracts with MarketStar, a third-party detailing force based in Ogden, Utah, that trains store employees and educates them on the product and special programs like periodic rebate offers. MarketStar also assures that displays are functioning properly.Salk noted that controlling the look and message on P-O-P is becoming more and more difficult as chain stores impose increased regulations on the design process. "[Early on], we took initiative to develop the displays and to execute them for the retailer," says Salk. "It has evolved today where they take some of our messaging and content and they control the development of it, and then show us what it is going to look like. If you go into a Target, it's definitely their look. You won't recognize the Sirius brand there." Likewise, Salk says that endcaps at Best Buy are developed internally through funds that Sirius allocates to marketing development. Still, Salk says that the growing popularity of satellite radio as a category is opening doors to new merchandising avenues. "Right now, Sirius is such a hot commodity that we are given opportunities that we weren't given two years ago," she says, citing as examples an endcap campaign at Office Depot and a kiosk program in Circuit City. Salk says that Sirius will likely change its merchandising strategy after the holiday season, when the company revisits some of its existing displays that have been in service for three years and are due for an upgrade. Future display programs will focus on promoting original programming rather than the hardware. "As the category evolves, our message is going to be more content-driven," she says.

P2PI MEMBERS

JOIN P2PI

You May Also Like

GoPro's Merchandising Overhaul at Best Buy

Retail Media in 2024