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For my Music Business Marketing Group Capstone I explored marketing concepts as they relate to the nuances of the music business. I have constructed strategic plans in the selection and development of music business products, and integrated traditional and non-traditional promotional avenues. In addition, I have strengthened my understanding of analytical tools and strategic analysis of the music business, providing myself with real world, marketing knowledge that can facilitate the success of my creative work. For more examples of work like this please refer to www.TriggaRik.com/marketing-consultant/
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Marketing Plan 1
79
Elevated Music
Record Label Marketing Plan
Music Business Marketing
Marketing Plan 2
Marketing Plan 3
Marketing Plan 4
Table of Contents
1. Executive Summary
2. Market Analysis
2.1. Market Summary
2.2. Market Trends
3. Target Market
3.1. Customer Persona
4. SWOT Analysis
4.1. Strengths
4.2. Weaknesses
4.3. Opportunities
4.4. Threats
5. Competitive Analysis
5.1. Competition
5.1.1. Position
5.1.2. Strengths
5.1.3. Weaknesses
6. Market Positioning
7. Integrated Marketing Communications Strategy
7.1. Marketing Objectives
7.2. Marketing Tactics
8. References
Marketing Plan 5
1. Executive Summary
Elevated Music is an independent record label based in Orlando, Florida. We have an executive
team comprised of music professionals with decades of combined industry experience. We
work hands on with our artist and specialize in artist development and brand enhancement.
Elevated Music aims to be the leading record label for local HipHop and R&B talent in the
Orlando area.
Artist development is the main service that we provide to our customers. The appeal for a record
label is declining due to growth in technologies which make it easier for artists to market
themselves. We differ from other products in the marketplace in several ways. We only service
single acts, but of each gender in the genres of R&B and HipHop. We develop our artist by
putting them through an intense boot camp training courses that consists of a highly trained
choreographer,vocal coach public speaking coach and physical training coach. Our artist also
performs daily mock shows to help enhances their competitiveness, showmanship, confidence
and live performances.
The pricing structure of our product will incorporate several layers of price discrimination in order
to target specific consumer demographics. This will be fundamental in redefining our business
model and revenue streams, as well as further monetizing our tangible products and intangible
services. We will be using costbased pricing to ascertain appropriate pricing for our product,
which will entail using product surveys and focus groups.
Our record label will use the pull strategy to try and connect directly to our targeted consumers
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by creating a buzz about our company while highlighting the aspects of our product that
differentiate us from our competitors. Looking at our target market we will focus our efforts
towards new technologies and media, as well as next generation marketing techniques. More
specifically we will rely heavily on internet marketing utilizing mediums such as Twitter,
Facebook, Youtube as well as advertising on websites our target consumers already visit such
as worldstarhiphop.com or soundcloud.com. We would also deploy a street team to promote our
product and exemplify our brand. The company would also promote through tieins with the
latest and most innovative products relating to the music industry.
We will deliver and distribute our products to consumers by utilizing channel intermediaries who
will process large quantities of merchandise and disperse the smaller quantities to the
wholesalers and retailers. We will use contractual distribution systems, and make agreements
with independent distributors, as it is less likely for us to make such arrangements with major
distributors without building a reputation first. Companies such as Disc Makers will be utilized for
manufacturing physical merchandise. Companies such as Tunecore will be utilized to distribute
throughout digital mediums. Our website will also give consumers the option to choose which
forms of our product they would like to purchase.
2. Market Analysis
2.1. Market Summary
According to the North American Industry Classification System, our company would operate in
the Integrated Record Production/ Distribution sector Code 512220. Our independent record
label is responsible for the production, development, marketing, and distribution of artists and
their brands. Elevated Music is categorized as an independent record label. We are not one of
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the 3 major record labels such as Warner, Universal and Sony that control over 80% of the
market. Our niche market is artist and brand development.
2.2. Market Trends
The positive trend that impacts the independent record label market could be a 360 deal. It can
be beneficial to an independent label, because it can generate lucrative revenue for the
independent record label through different revenue streams from Intellectual Properties Royalties
such as: Performing Rights Royalties, Mechanical, Synchronization, Print, Foreign and also
through merchandising, brand support and any other potential endorsements. This can be a
positive impact on an independent artist even though a certain percentage will be taken away
from their royaltiesthe exposure could catapult their career.
3. Target Market
Our company targets ambitious, determined, and selfmotivated hip hop artists in the greater
Orlando Metropolitan area, which currently has over 2 million residents. The Orlando
Metropolitan is projected to be one of the fastest growing regions in the nation. The targeted
artist will be between the ages of 17 to 25 with an annual income of $20k to $55K who are
current college students or recent college graduates. We look for individuals who are talented
and have the desire to pursue a full time career as a music artist, but have minimal formal
training in performing arts and brand development. Also, we look for artists who are loyal to our
brand based on personal experiences from working with us in the past.
3.1. Customer Persona
African American male 23year old, innovative, fulltime college student, club promoter, disk
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jockey and host. Enthusiastic, goaloriented, eclectic, but listens to mainly Rap/Hip Hop has a
very diverse musical taste. A huge fan of gangster movies and likes edgy upbeat music. Driven
and performs often in local venues, but has no formal performance training. Desires to have a
successful and profitable musical career with longevity. He’s also an innovator and an early
adopter who closely follows trends and nuances in the Entertainment Industry.
4. SWOT Analysis
4.1. Strengths
● We efficiently and effectively develops artists
● We have a professional team of music veterans that are trained and experienced in the
business
● We also are proficient in using and maintaining social media to our advantage.
● We offer reasonable and affording pricing to our potential customers.
4.2. Weaknesses
● We lack an expansive media network
● We lack stability
● Do not offer 360 deals
4.3. Opportunities
● Due to the evolution of the Music/Entertainment Industry technology can either incline or
decline
● We can eventually offer a recording studio
● Cobranding and incorporation of partnerships
Marketing Plan 9
● We offer artist etiquette training and development
4.4. Threats
● Changing technologies and growth in social media usage are diverting artists and
customers towards competition.
● Well established technology and entertainment companies that are beginning to offer
similar products and services as an independent label.
● The volatility of working with underdeveloped artist, and having a high risk of not receiving
the anticipated return on investment.
5. Competitive Analysis
5.1. Competition
Direct Brand Competitor: Strange Music Inc.
Indirect Brand Competitor: CD Baby
5.1.1. Position
The product positioning of our direct competitor is perceived music that stands outside of the
traditional norms of Hip Hop and R&B. Strange Music is known for signing very eccentric
untraditional Hip Hop artists. They are perceived by their customer’s as an underground
movement and not a part of popular culture or mainstream Hip Hop or R&B.
The product positioning for our indirect competitor, CD Baby, is the perceived artistic freedom
and the maintained ownership of intellectual properties associated with being an independent
artist. Independent artists who have achieved small success or even no success find giving up
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any monicum of artistic control or ownership as taboo, and thusly have caused a shift in traffic
towards online mediums that can support sales revenue of said independent artists.
5.1.2. Strengths
The product positioning of our direct competitor is perceived music that stands outside of the
traditional norms of Hip Hop and R&B. Strange Music is known for signing very eccentric
untraditional Hip Hop artists. They are perceived by their customer’s as an underground
movement and not a part of popular culture or mainstream Hip Hop or R&B.
The product positioning for CD Baby allows independent artists to generate eRevenue without
relegating ownership and authority to a label. This level of creative interaction with a project
allows the independent artist to post content via user interface without fear of being dropped from
CD Baby’s queue for lack of downloads. This perpetuity also builds a level of trust with the
independent artist, because they can also track and view downloadee’s information.
5.1.3. Weaknesses
Strange music offers many inhouse services comparative to more established brands,
however, they do have several weaknesses. Their major weakness is brand awareness, their
efforts all though profitable are mainly underground and their artist are not household names.
Their isolated geographic location also makes it so that artist signed to them have to tour
excessively and this emphasis on touring hinders artist development. The business has seen
moderate but steady development, by aging artist and catering to a nostalgic market leaving the
company with a limited growth projection.
Marketing Plan 11
While CD Baby’s more excluded business model almost guarantees minimum online exposure,
this company’s standalone format does not offer many of the profitable revenue streams usually
accessible to other entities. This formula requires consistent content interaction, and offers little
to no ownership of any threaded intellectual properties. This lack of supervision and oversight in
turn requires the independent artist to manage several online accounts, as well as demands
more indepth involvement from the artist.
6. Market Positioning
To dedicated, determined and driven artists of the Greater Orlando area looking to sign with a
record label to assist in launching their career, Elevated Music is an Independent Record Label
consisting of committed music industry professionals that will work hand in hand for our artists
to take their brand and their music to new heights.
7. Integrated Marketing Communications Strategy
7.1. Marketing Objectives
Elevated Music’s first year goals:
● Increase sales by 100%
● Increase brand awareness by 100%
● Increase market share by 50%
7.2. Marketing Tactics
As stated in our marketing mix Elevated Music will use both a push and pull strategy to
connect with our customers. We will use traditional and nontraditional promotional methods
to highlight aspects of our product that differentiate us from our competitors. The traditional
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promotional methods we will use consist of advertising, sales promotions, public relations,
and direct marketing. The nontraditional methods will consist of word of mouth marketing,
viral marketing, stealth/undercover marketing, and mobile marketing.
Radio advertisement will be an effective way to promote Elevated Music. The average cost
of advertising is based on the length of the ad and how long the ad is being run. The typical
length ranges from 1565 minutes. We will run advertising on Internet based radio services
such as Pandora at an average cost of around $250.00 per spot. Also, we will advertise on
popular local HipHop radio stations in the area such as 95.3 and 104.5 on average cost
$2,000 per spot. Elevated Music advertisements will be ran three times a day: Morning,
afternoon and evenings for 2 consecutive weeks. It will cost approximately $84,000.
Broadcasting advertising through television commercials will also be utilized. We will air a
30 second TV commercial on major networks such as MTV and BET to promote our
business to artists in the Orlando area. The commercial will highlight our product
differentiation and run for 30 days at a cost of $500 per commercial spot. Print advertising
will also be beneficial, as we will have ads placed in all local newspaper and magazine
outlets specifically the Orlando Sentinel at a rate of $250 per ad, and the advertisements
will run for 4 days each. We will also look to have billboards placed in major cities in high
traffic areas, starting with locations near colleges in the area. These billboards will cost
approximately $1500 each. Our sales promotions will include giveaways, discounts on
services and products, free recording sessions for the 1st 10 callers, and free
merchandise for referrals. We will also ensure to have a press release for all company
milestones, special events, and sales promotions.
Marketing Plan 13
Elevated music will directly market our brand by using promo girls who will make
appearances throughout the city at events for both charity and entertainment. This is a team
of attractive young adults that will dressed provocatively in Elevated Music memorabilia.
They will be present and active at all artist’s performances and company sponsored
events. Their primary objective is to promote our merchandise and increase brand
awareness. Our college reps will be responsible for making sure all the colleges in the area
aware of our company and services. Our street team will be responsible for facetoface
promotions, interacting with people at malls, clubs, concerts, and other high traffic areas for
our target market. All promotional staff will be compensated at a minimum of $10/hr with
possible incentives.
Word of mouth will be a daily ongoing mission at Elevated Music. Our logo will be on all
merchandise which will be sold or given away at events and from our website. All
employees will have the logos embroidered on their shirts and be equipped with flyers,
brochures, and business cards. Our promo girls will keep us relevant as they attend events
and performances and take pictures with potential customers. They will most likely
generate a fanbase of their own, which will in return keep people aware of our company.
To capitalize on viral marketing Elevated Music will use a variety of Internet marketing
tools. Most importantly, Elevated will have social media pages that will have engaging
content such as artist showcases, exclusive music and interviews, as well as photos and
videos of our first class facilities. YouTube, Facebook, and Twitter will be the main social
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media extensions of our brand. There will also be paid online advertising campaigns
focused towards sites and pages our target market frequent such as Facebook, Twitter,
YouTube, and Worldstarhiphop.com. Elevated will use several types of advertising forms
from popup and takeover ads, to preroll and in display video ads. Our stealth and
undercover marketing efforts will be focused towards commenting positive reviews about
our services in blogs and chat rooms our target audience might visit. So me examples of
popular hiphop blog sites are Hiphopdx.com, Worldstarhiphop.com, and soundcloud.com.
Our mobile app will be available for both the company and the artists on our roster. The
designer QR Codes, which will be implemented on some of our merchandise, and printed
promotional materials will be in a replica of an elevator that will offer two different types of
sales promotionsA free dance lesson or a free consult with a Music Industry Veteran. The
Designer QR Codes will cost $50.00 each.
Elevated Music has a 2page brochure that will includes our brand name, tagline, and
photo, as well as list our key product benefits, and will be distributed by mail to local artist
and college students in the area. The distribution and printing cost will total approximately
$400 for every 2,000 brochures. We will broadcast a weekly podcast that will be hosted by
a company executive and available on iTunes as well as our YouTube page and company
website. The content of the podcast will include industry tips and interviews with industry
professionals. The purpose of the podcast will be to build brand credibility, while also
increasing brand awareness. We will also be producing 4 initial Tshirt designs that will
correlate directly with our brand values, logo, and promotion’s strategy. Each design will be
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processed on to plain black cotton T’s, with each design having 100 copies each, to be
sold at concerts promoting our artists and any other collaborative efforts we may
orchestrate.
8. References
http://www.pinterest.com/mrlbotheceo/recordlabel/