Friday, September 28, 2007

More Auto Companies Installing HD


This week, a Ford Motor press release announced that it will be installing HD radios on demand, and in nearly all product lines. The product lines include not only Ford models, but also Lincoln and Mercury as well. This new feature can also be purchased for previously purchased cars from 2005, 2006, or 2007- this is available nationwide. “We believe HD Digital Radio will be an important part of Ford's commitment to delivering innovations with mass appeal,” says Kim Irwin, Vehicle Personalization and Accessories manager for Ford. “We're helping our customers stay connected by supporting the features and functions they want in their vehicles. The dramatically improved audio, text and data features of HD Digital Radio – along with its hundreds of new radio stations – create a compelling combination at the right price.”

To advertise Ford’s HD product launch, the Digital Radio Alliance will be airing a 13-week long radio-marketing campaign in partnership with Ford. The two organizations are exchanging the product installation option for complimentary advertising, which is a pretty interesting marketing circumstance. The tag line for promoting HD radio in general is"HD- Discover It!" which is a good approach to marketing, because there is still little knowledge of HD among the general public. There are two options for Ford's new feature, one is the standard HD set, and the other adds iPod connectivity- which I imagine will be very popular. The first option is priced at a suggested $279, while the latter is $299. Installing these radios takes about a half hour and adds on a $50 fee.

This is a significant step for HD radio because it will boost awareness and sales of the new audio format. Ford, which composes a huge portion of the country's auto sales could be the largest promotion that HD radio has incurred thusfar. Afterall, it was not untill auto companies began embracing satellite radio did it really take off- so perhaps the same will happen for HD radio. Ford is not the first company to begin installing HD radio, however. The pioneer for this option was BMW.

Their HD option is available for factory installation of all new models across all product lines. The HD option costs an additional 500 bucks. Other automakers following the HD bandwagon are Jaguar and Mini-Cooper USA. "We are pleased to offer our customers the high-quality sound of HD Radio broadcasting in the new MINI Cooper and Cooper S hardtops." says Rich Steinberg, the head of MINI USA product strategy. "HD Radio broadcasting now offers our customers an additional level of choices when it comes to premium, in-car audio technology." It seems as though common themes of innovation and customer options are the driving force behind offering this new feature. Adopting HD installation is also a way to assocaite innovation with your brand, not to mention press coverage and the buzz it creates through word of mouth. Figures from BMW group predict that HD radio stations will exceed 3,00 in the next few years. You can view an updated list of HD radio stations & multicast stations at www.hdradio.com. HD Radio™ is a trademark of iBiquity Digital Corporation.

1 comment:

Kim Gregson said...

1 good post for hte week - 5 points