Friday, September 22, 2006

BOA's Jacoby Sees A New Era At XM

September 22, 2006

Yet another analyst who reported on meeting with XM Management and Nate Davis in particular. Jacoby, of Bank Of America outlines Davis' action plan:

First 60 days:
o Added senior talent to improve focus on product development, sales & marketing, retailing, and customer service.
o Gave marketing a greater voice in product development.
o Switched advertising agencies.

Next 90 days:
o Step up advertising spending and improve in-store merchandising.
o Fill Chief Marketing Officer post.
o Incentivize an “enhanced” installation of “plug-and-play” radios.

Beyond:
o Targeted marketing campaigns (i.e., segment marketing).
o Incentivize multi-year service contracts with discounted hardware.
o Focus on free cash flow…balance between growth and profitability.
o Create a rational industry environment.

This type of outline should be encouraging to investors in this sector. SSG readers who are interested in the BOA report should visit BOA HERE