Poster Information
- 1. 1. Heading. An analysis of modern day music. 2. Situational analysis. Competitor Analysis Competitors: Spotify, Amazon Music, Pandora, Tidal, Google Play Music, Apple Music, Deezer (Mintel, 2015) (Keynote, 2015). Main competitor: Spotify, Apple (just launched) Spotify took 87% of the value of music in 2014 (Mintel, 2015). All competitors are situated online. Spotify is the only one with a ‘free’ subscription in exchange for advertisements. 15 million paid subscribers and 60 million active users (Keynote, 2015). HOWEVER Tidal has been recently launched by rapper Jay-z and is supported by a range of artists. Apple music has also been recently launched into the market making the marketing very competitive (Keynote, 2015). Apple entering market could prove fatal: Icloud=fuse the devises together…accessibility…know more about users habits through icloud (Mintel, 2015). How does this translate into their existing communications strategy???? This translates into their existing communications strategy as Tidal, Spotify and Deezer are all competing against one another to compare how their company rates against another, as well as using this information to predict competitor behaviours whilst creating better business decisions. Though our competitors each offer a music service, our company offers an exclusive music service that combines the digital and physical aspects of music, which stands out from the competition’s communication strategy. Consumer Analysis
- 2. * Figures taken from December 2013 showed that 69.7% of men listen to music everyday, whilst it was noted that two thirds of females are the same (Keynote, 2015). * Socially, 75.3% of individuals that are part time employed listen to music everyday whilst 74.4% of full time do also (Keynote, 2015). * 84.4% adults of between the ages of 16 to 19 listen to music everyday * 76.8% of adults aged 35 to 44 listen to music everday (Keynote, 2015). * Penetration was high within the 20 to 24 and 25 to 34 age brackets, at 71.5% and 71%, respectively (keynote, 2015). * ‘Millennials’ enjoy overindulging in media and the options to create their own playlists. Millennials are key to the streaming market (Mintel, 2015). * The older generation are more comfortable using direct and traditional ways of accessing music (Mintel, 2015). * Among those who purchase the majority of their music in physical formats, adults in Great Britain were slightly more likely to buy online than visit high-street stores, at 31.7% compared with 30.2.% (Keynote, 2015). Product Analysis * Streaming services, such as Spotify, report 9 out of 10 users are ‘very satisfied’ with the service (Mintel, 2015). * They enjoy the ability to choose from a large range of music globally (30 million songs) (Mintel, 2015). * Consumers wary about the notion that more artists could remove their songs from streaming services (Mintel, 2015). * Whilst Spotify is the market leader there is a chance for competition to lure away consumers through the unquie selling point of clearer sound (Mintel, 2015). * There has been a renaissance in the sales of vinyl records, this could be linked to the availability of the records as LPs, the audio quality or the preference of the way vinyl’s are recorded and packaged (Keynote, 2015).
- 3. * Huge move away from physical formats to streaming and downloading music (Keynote, 2015). * Overall consumer expenditure on live music, recorded music and musical instruments is projected to rise in value by 9.6% between 2015 and 2019, from £2.51bn to £2.75bn. Live music is expected to represent the main driver of growth, with a forecast increase in consumer expenditure of 16.2% over this period. (Keynote, 2015) * Online, particularly via a PC or laptop, is now the dominant means of buying tickets for live music, with nearly two thirds of concert-goers having done so in 2014/15. (Mintel, 2015) * In terms of live performance, attending music concerts was one of the most popular activities in Great Britain in the year ending September 2014, with 30.3% attending music concerts in stadiums or arenas at least once, while 30.2% watched live music other than jazz or classical, or at stadiums and arenas. (Keynote, 2015) Communication Analysis Spotify is positioned to appeal to the mass market: joined up with brands such as Adidas, Starbucks and Coca-cola to taylor adverts. GLOBAL PARTNERSHIPS. campaigns (online and offline) (marketing week , online) Spotify uses twitter-facebook-blogs (Online) Apple: Uses its Brands to communicate-reliable-quality product-ease of use. Brand equity: ‘advantage of perceived superiority’ ‘ (marketing week, online) Mass advertising: advertising campaign via billboards. (Offline)Celebrity endorsement: DRAKE Tidal: (Online) Blogs (Offline) Celebrity endorsement: Jay-Z, Beyonce, Madonaa (Stakeholders) Integration with : Ticketmaster 2 Concerts to promote : PR
- 4. Social media: snapchat, facebook etc 3. Identification of Opportunity Providing a premium digital music service, ‘Chorus’, offers a unique complete music based experience with a selection of music genres and creating a link between the digital and physical music experience through the accessibility of vinyls and access to live music. 4. Target audience Aiming to target both male and female’s from the age of 16-34. Social class: employed/part time employed/ in education Particularly at 16-30 Motives: ‘Never say die’ trend- The internet is mostly responsible for the trend where consumers are indulging in styles, consumption products and pop-culture from a time period that they were too young to experience first time around. Consumers are enjoying products and services with a sense of fun and novelty (Mintel, 2014). VINYL Motives: Want instant access to their music on a variety of devises. ONLINE STEAMING. Consumption patterns: * ‘Millennials’ enjoy overindulging in media and the options to create their own playlists. Millennials are key to the streaming market (Mintel, 2015). * Part time employees (75.3% listen to music daily) Full time (74.4% listen to music daily). 5. Objectives; -Increase traffic to our website to 10,000 views by 31st December 2016 -Achieve 20,000 paid monthly subscribers to the Chorus Streaming service by May 2017
- 5. -Establish our ‘Pick up and Play’ service to account for 25% of revenue via intermediary stores, which are Tesco, with the aim of branching out to others by January 2017 -Stream live gigs from Glasgow as of January 2016 with an aim to expand to other cities within 6-12 months SWOT ANALYSIS FOR CHORUS; diagram MUSIC INDUSTRY STRENGTHS More than two-thirds of British adults (68.1%) listen to music every day. The UK is a leading exporter of music, with albums and singles from domestic artists repeatedly appearing among the top selling music in the world. There is a strong digital offering in recorded music in the UK, with a multitude of platforms offering music downloads or subscriptions, and combinations of both. The UK is a major market for live music, with a huge festival calendar and numerous stadiums and arenas across the country capable of hosting major artists. The proliferation of Internet-connected devices, particularly mobile devices such as tablets and smartphones, has made it increasingly easy to listen and buy music both in the home and on the move. There are numerous strong independent record labels in the UK, many of whom have represented massively successful, global artists. WEAKNESSES With digital sales of recorded music reporting significant growth, physical music sales have plummeted. Physical media tends to carry a higher price point than digital media. As a result, owing to the decline in physical music’s popularity, retail sales have been significantly affected.
- 6. Retail sales of recorded media declined for 10 consecutive years up to 2012. Many smaller live venues, which often provide a platform for artists to achieve national and global success, are at major risk, with numerous closures recorded over the last few years as a result of trends in property development and noise abatement legislation, among other issues. Income from streaming services for musicians, composers and other rights holders is based on a per-play basis and, as such, earnings trickle in relatively slowly over time, in comparison with the more immediate pay-offs received from physical album launches. OPPORTUNITIES There remains significant growth potential in the streaming market, given the strong demand in recent years. There are also further opportunities to improve income from streaming services by encouraging customers to move to premium subscription services, rather than using free advertising-supported tiers. There are also opportunities for digital providers of music to establish partnerships with other connected media, such as televisions, mobile phones and even automobiles, by providing bundled subscriptions or access to services on these devices. The vinyl market has seen significant growth over the last few years. Although the market is limited in terms of value, there is clearly a significant level of demand for premium, design-led vinyl albums. THREATS Certain artists and recording labels have voiced concern over royalty payments from streaming services, with some going so far as withholding or withdrawing catalogues. As the main driver of growth in the music market at present, this could limit potential growth in the market. The ongoing decline of physical music formats represents a key threat to retailers. Furthermore, in the wake of the increased uptake of streaming services, annual growth in digital album sales has fallen and the market for singles downloads has declined in value.
- 7. Music piracy continues to represent a key threat to the music market. 6. Marketing Strategy; To Provide a premium digital music service, ‘Chorus’, that offers a unique complete music based experience with a selection of music genres and creates a link between the digital and physical music experience through the accessibility of vinyls and access to live music. Marketing Communications Strategy Establish an online marketing campaign to extend advertising to social media channels -Promote and launch new ‘Pickup and Play’ service to collect physical purchases made online by January 2016 --We will have in-store promotions in Tesco to promote the ‘Pick up and Play’ service until May 2017, with posters displayed in the supermarket for consumers to see, the area itself will stand out playing music to attract the attention of customers. -Billboard campaign promoting ‘Pick up and Play’ service aswell as website to run for 11 months in Glasgow city centre and motorways beginning January 2016. Media Strategy Online Strategy -We will advertise our online marketing campaign through social media channels such as Facebook, Twitter, Youtube intensively for the first three months, then follow up with a re-iteration campaign. --Increase awareness of the website through posting informative and engaging blog topics that are linked to our social media accounts daily.
- 8. Offline Strategy -Run television adverts on channels STV and Channel 4 promoting our website and the ‘Click and Collect Service’ available at Tesco 6-8am and at 6-9pm for three months, followed by a re-iteration campaign. Chorus will sponsor the University Sports Leagues. - In our advertising mediums promote incentive of sign up to Chorus and sign up a friend and receive a month free Celebrity Endorsement -Strategy: Establish Ed Sheeran as a celebrity endorser for Chorus for both the website and Pick up and Play service. He will appear in the adverts that we run online and offline, alongside ordinary users of Chorus to incorporate a communal aspect of the service. Tactics - When you and a friend both sign up to use Chorus, both receive a free month of the service each. -Have an image on our website indicating that you can collect your purchase from the ‘Click and Collect’ stop at Tesco, as well as a Chorus landing page on the Tesco Website -Hold an exclusive gig with Ed Sheeran in January 2016 and stream via Chorus to launch the beginning of live streaming of gigs Ed Sheeran will also appear in a separate advert promoting the exclusive gig that can only be accessed through Chorus, which will run up until January 2016.