Report for Tribute Ltd. on Jonnie Jones’ Music (2017)
Date April 27th, 2017
Report for Tribute Ltd. on Jonnie Jones’ Music (2017)
8
Introduction
This report is a result of the analysis music selling strategy of the company. In this, we have tried to understand what the company is all about and how they are marketing their product. The current marketing streams, the target audience and the manner of marketing have been analyzed by us. Also, we have tried to work towards the current sale pattern of the company and what are the primary sources or avenues where the company is selling. Along with selling the product, there is an element of profitability owing to differential pricing and differential costing of the product (Lathrop, T, 2007). Hence a price analysis of the same is also conducted which has helped us in developing various methods of conducting the sales. We have tried to identify the areas where the company must focus on the sale and what can effectively help in the achievement of the objective of the enterprise. Also, there has been an analysis of the key forms of music and what are the means in which people are most likely to receive them (Macy, A., Rolston, C., Allen, P. and Hutchison, T, n.d.). This has been done to understand whether the company needs to make a change from their existing method of music dissemination to some other form of music convey. All these would ideally help in developing the processes and in ensuring that the same is performed well in manner and to find out ways which can help in the development of the enterprise.
Be it choker pieces of jewelry, Harry Potter or Pokémon, this mid-year has felt like a genuine oldie but a goodie. As the years pass by, we as a whole build up a specific level of wistfulness for our more youthful days (Bristol, C. and Weissman, D, 2007). The recreations we played, the sustenance we ate, the music we tuned in to – they all make us feel something.
Adjusting promoting techniques to feeling has officially ended up being fruitful, however taking advantage of affectionate recollections can be a priceless strategy, particularly to engage millennials. From fast food and breakfast oats to gaming frameworks and everything in the middle of, savvy brands are connecting with through retro roots — and it’s called sentimentality promoting. Here’s a look into this capable new promoting pattern: what it is, who’s doing it well, and a couple of tips on how best to utilize wistfulness advertising strategies to empower millennials.
Brands from all ventures are exploring different avenues regarding sentimentality advertising — taking advantage of positive social recollections from earlier decades, intended to drive vitality to present day battles. Coca-Cola, Microsoft, Lego — even Herbal Essences haircare items — are recently a portion of the brands that are attempting their hands at venturing back so as to reignite crusade systems of the past (Belloc, H, 2013). Regardless of whether it’s taking Colonel Sanders back to KFC or connecting with millennial gamers with another Nintendo reassure, keen brands are amplifying wistfulness promoting — and getting a charge out of colossal outcomes.
Unless you live under a stone, odds are you’ve heard something about the intuitive, versatile amusement that is overwhelming the nation. ‘Pokémon GO’ is an unprecedented case of sentimentality advertising done well. Be that as it may, — and possibly more significantly — the application additionally offers awesome understanding into the energy of coupling wistfulness with present day pertinence.
Analysis of Individual Tasks
2.1 Analysis of Senior Citizen Music Market
The senior citizen music market is indeed one of the most interesting market structures wherein there is a widespread liking for music, and at the same time there is a preference of the key markets. Also, there is a need for the development of the market in the sense that new music forms cannot appeal to these form of market. Also, there has to be understanding of the market forms and overall liking for music. The tastes and preferences of the customer group have to be monitored in the light of the developmental activities, and in this regard, one has to implement the techniques of marketing. Music indeed is the tastes and requirement of the people, and whenever there is a demand for any sort, there would be a need for proper music (Madsen, C. and Yarbrough, C, 2014). With these forms and factors, it can be said that music for senior citizens has to be considered very effectively. One cannot introduce new forms of music, while they also need innovativeness. Hence that can be done only once there is a proper understanding of the music forms, and the old music is well introduced to the target audience with the help of new style and passion. When there are proper management and planning of the key forms, there would be the proper introduction of music.
Particulars
Total CDs
% of Total CD Sold
Price of CD
Estimated Profits
% of Total profits
Complimentary
130
2.72
0
(260)
(0.75)
General
353
7.38
10
2,824
8.12
Mail Order
167
3.49
10
1,336
3.84
Web Order
223
4.67
10
1,784
5.13
Concert Performance
1,376
28.79
12
13,760
39.57
Retail
2,459
51.44
8
14,754
42.43
Brighton pubs
72
1.51
10
576
1.66
Total
4,780
100
34,774
100.00
Another thing in the music market which is very important and famous is the nostalgia music. The concept of nostalgia marketing is to use the sentiments of the people to market a product. This has always been an evergreen concept and has always seen the considerable response. People have always liked this concept and have appreciated this form of marketing as there is the development of the sentiments of the people. Hence considering this it can be said that we can use this marketing tool to market the music in proper form (Baines, P., Fill, C. and Rosengren, S, n.d.). Also as a suggestion, we can implement new music tools which has the roots to the nostalgic music and which can help in the development of market structures. The newer ways and means would help in the development of the market well and would give a competitive edge in the market. Whenever there are new tools developed in the market we can have these proper forms in the market and which can lead to an understanding of market well.
2.2 Analysis of Secondary Data
By the data presented we can see that the overall sales of CDs are maximum in the retail sector. The retail sector accounts for more than 50% of the total CD sale, and hence this is the most important segment for the company which needs to be taken care of well. The company has to implement new strategies and areas where the sale in this can be improved and hence there would be the development of overall goals of the business. Also, we can see that the complimentary CDs account for approx. 3% of the total CD sale. One has to keep sure that this volume is kept under check as the complimentary CD do not add any value to the organization except indirect benefit accruing in the form of indirect advertising. Hence the complimentary CD is to be monitored well as there is a direct loss of revenue to that extent (Blackstone, W., Prest, W., and Stern, S, 2016). Also, we can see that mail and web orders account for only 8% of the total sale. There is a need to have some improvement in this kind of sale as well. In the current scenario, the world is moving online, and if the sales cannot be focussed to have an online focus, it would indeed be difficult for proper management of each of the objectives. Hence there needs to be more focus on online selling rather than the offline retail sale of the CD.
When we look into the profitability aspect we can see that concert performance even though contributing 29% of the volume contributes roughly 40% of the total margin and at the same time, retails which have 50% share in the volume, contributes only 43% of the total margin. Considering this, it is a clear indication that more and more focus needs to be put on sale at concert performances rather than a retail sale. Alternatively, the company can look at repricing the retail products so that a higher margin can be looked up to (Comfort, J., and Brieger, N, 2000). As regards complimentary is concerned, it is already mentioned that this is not leading to us any direct influence to our margins. Hence there needs some control, as costs are being incurred for these as well.
Particulars
Total CDs
% of Total
Price of CD
Estimated Profits
% of Total profits
Complimentary
130
=C4/TotalCd%
0
=C4*(E4-2)
=F4/TotalProfit%
General
353
=C5/TotalCd%
10
=C5*(E5-2)
=F5/TotalProfit%
Mail Order
167
=C6/TotalCd%
10
=C6*(E6-2)
=F6/TotalProfit%
Web Order
223
=C7/TotalCd%
10
=C7*(E7-2)
=F7/TotalProfit%
Concert Performance
1376
=C8/TotalCd%
12
=C8*(E8-2)
=F8/TotalProfit%
Retail
2459
=C9/TotalCd%
8
=C9*(E9-2)
=F9/TotalProfit%
Brighton pubs
72
=C10/TotalCd%
10
=C10*(E10-2)
=F10/TotalProfit%
Total
=SUM(C4:C10)
=SUM(D4:D10)
=SUM(F4:F10)
=SUM(G4:G10)
2.3 Analysis of Primary Data (Field Observations)
The primary data on the field observations were collected for the purpose of analyzing the response which the market has on the music of the company. By analysis of data, it can be seen that the majority of the response has been received from the people falling within the age group of 61-75 years and that too those who are less likely to like music at that age. Hence the company has a very good scope as they would have a large market and one which would have a very less competition to face. The overall market form would ensure that the growth and related profitability is reasonably high for the company (Hill, E. and O’Sullivan, T, 2009). Also by the data collected it is clear that the response of female is 60% while the male has responded only 40%. Hence there can be a large market while targeting the female audience. They are more likely to get attracted to the music and are more likely to spend on the music.
It is indeed an important decision on the part of the management to look in for an alternate source of data and which can help in developing the key concepts of the enterprise. For this, there has to be an analysis which is unbiased and which can help in the development of the key concepts in the best possible manner. This can be done only when the analysis is free from biases of all forms which is possible with more detailed data analysis and with a more scientific approach to data collection rather than a simple process of data collection (Madsen, C. and Yarbrough, C, n.d.).
2.4 Analysis of Primary Data (Questionnaires)
The overall data collected by the questions asked and that too with the analysis of the same provides us a conclusion that the Mail, Online, and Retail are indeed the most preferred purchasing preferences of the people. The customers who are young at heart have expressed intent towards mail and online form of purchasing more. This shows us that the requirement for mail and the online form is ever increasing (Skinner, S, 2014). Also when we look at the listening preferences, it can be seen that live music is the most preferred form of music and most of the people have selected this form of music for the preference of listening. The next important thing which is considered in the form of music listening is the CDs and Cassettes which can help in the form of music listening. This gives us an idea about the overall music preferences for the company and can then help the company to work further towards developing market strategies.
The data collection which has been done by the trainee seems to be very comprehensive, and this has provided us enough information about the analysis of the music and its form. There has been a proper collection of data, and this has helped in the understanding of the market responses well (Laver, M, 2015).
When we see the overall response, it is seen that the basic form of response is towards the achievement of goals and the key objectives where the firm can generate the goal and the overall likelihood of development in the key form. It is seen that the people now have an intent to move from the traditional system of listening to the music in CDs to a new method wherein they can have some more quality and wherein they can feel the music better. Also, the availability of the music has to be made easier and that the instruments which can play that music well need to be made available. The company has to take initiatives to make available the music in the form which is most liked by the people (Safir, R, 2013). This would ensure that the overall sale would increase and more and more people are buying the product. Unless the company makes available those things to the public, it would be difficult for the public to adapt to this new method and hence the likelihood of growth and success would be poor. The company would have to adapt to the new means and methods of reaching out to the public, and they will be required to develop tools to target the audience well.
Conclusions
A large number of aspects were considered in the analysis of the current business operations of the enterprise. With the help of this, we have been able to understand that the business of the company is mainly dependent on one target audience and which is the senior age group. This is one age group which has the highest preference for the products of the company and that they are even willing to spend money to listen to the music. Also, the current form in which the company has been selling the music which is in CDs needs to be changed and that the company will have to try out newer means of targeting the audience (Harries, J. and Hughes, C, 2015). The company can not continue to develop into one target segment and plan its operations. They would require an analysis of the key forms of the market of the music and also needs to change the manner in which the work is being performed currently at the enterprise. With this function and growth of the enterprise, there would be the development of all the existing affairs of the company and this would simply help in establishing the overall gains in the best possible manner for the company wide.
As an understanding point is considered, it would be prudent for the firm to understand the processes and to make sure that there is development in all forms of the market which would ensure that the affairs of the enterprise are well considered and that they are managed in the best technical manner as desired (Siegmeister, E, 2009). For the purpose of sound management of the policies the company may have to introduce new manner of conducting business and that ideally is the requirement in the current times.
References
Lathrop, T. (2007). This business of music marketing & promotion. New York: Billboard.
Laver, M. (2015). Jazz Sells. New York, N.Y.: Routledge.
Macy, A., Rolston, C., Allen, P. and Hutchison, T. (n.d.). Record label marketing.
Safir, R. (2013). Marketing and merchandising for musicians. Boston, MA: Course Technology, Cengage Learning.
Bristol, C. and Weissman, D. (2007). Making a Living in Your Local Music Market: Realizing Your Marketing Potential. Music Educators Journal, 93(4), p.19.
Marketing Contemporary Music Recordings with Concert Performances: A Case Study. (2016). College Music Symposium, 56.
Belloc, H. (2013). On. New York: George H. Doran Co.
Harries, J. and Hughes, C. (2015). Planning for learning through making music. London: Practical Pre-School Books.
Madsen, C. and Yarbrough, C. (2014). Competency-based music education.
Siegmeister, E. (2009). The new music lover’s handbook. Irvington-on-Hudson, N.Y.: Harvey House.
Baines, P., Fill, C. and Rosengren, S. (n.d.). Marketing.
Belloc, H. (2013). On. New York: George H. Doran Co.
Blackstone, W., Prest, W., and Stern, S. (2016). Commentaries on the laws of England. Oxford: Oxford University Press.
Burrow, J. and Bosiljevac, J. (2012). Marketing. Mason, Ohio: South-Western Cengage Learning.
Comfort, J. and Brieger, N. (2000). Marketing. New York [etc.]: Prentice Hall International.
Harries, J. and Hughes, C. (2014). Planning for learning through making music. London: Practical Pre-School Books.
Hill, E. and O’Sullivan, T. (2009). Marketing. London: Longman.
Keegan, W., Moriarty, S. and Duncan, T. (2015). Marketing. Englewood Cliffs, N.J.: Prentice-Hall.
Madsen, C. and Yarbrough, C. (n.d.). Competency-based music education.
Siegmeister, E. (2013). The new music lover’s handbook. Irvington-on-Hudson, N.Y.: Harvey House.
Skinner, S. (2014). Marketing. Boston: Houghton Mifflin Co.
Solomon, M., Marshall, G. and Stuart, E. (2018). Marketing. Hoboken, NJ: Pearson.
Appendices
Particulars
Total CDs
% of Total CD Sold
Price of CD
Estimated Profits
% of Total profits
Complimentary
130
2.72
0
(260)
(0.75)
General
353
7.38
10
2,824
8.12
Mail Order
167
3.49
10
1,336
3.84
Web Order
223
4.67
10
1,784
5.13
Concert Performance
1,376
28.79
12
13,760
39.57
Retail
2,459
51.44
8
14,754
42.43
Brighton pubs
72
1.51
10
576
1.66
Total
4,780
100
34,774
100.00
Particulars
Total CDs
% of Total
Price of CD
Estimated Profits
% of Total profits
Complimentary
130
=C4/TotalCd%
0
=C4*(E4-2)
=F4/TotalProfit%
General
353
=C5/TotalCd%
10
=C5*(E5-2)
=F5/TotalProfit%
Mail Order
167
=C6/TotalCd%
10
=C6*(E6-2)
=F6/TotalProfit%
Web Order
223
=C7/TotalCd%
10
=C7*(E7-2)
=F7/TotalProfit%
Concert Performance
1376
=C8/TotalCd%
12
=C8*(E8-2)
=F8/TotalProfit%
Retail
2459
=C9/TotalCd%
8
=C9*(E9-2)
=F9/TotalProfit%
Brighton pubs
72
=C10/TotalCd%
10
=C10*(E10-2)
=F10/TotalProfit%
Total
=SUM(C4:C10)
=SUM(D4:D10)
=SUM(F4:F10)
=SUM(G4:G10)
Particulars
Brighton Mall
The Theater
Combined Results
Minutes
1
14
11
25
2
41
19
60
3
25
9
34
4 or more
24
13
37
Age
<15
0
2
2
16-30
4
0
4
31-45
16
0
16
46-60
17
9
26
61-75
64
41
105
76<
3
0
3
Gender
Female
65
30
95
Male
39
22
61
Particulars
Young at heart
Seniors
Total
Purchasing preferences
Retail
3
2
2
Concert
4
4
4
Online
1
4
2
1
2
1
Phone
4
5
4
Listening preferences
Cassette
2
2
3
CD
2
5
3
Live
3
5
1
Digital
2
3
5
Radio
2
2
5