Tribute Ltd Company’s Report
Table of Contents
1.0. Introduction 2
2.0. Analysis of the Individual Tasks 3
2.1. Senior Citizen Market Analysis 3
2.2. Analysis of Secondary Data 5
2.3. Analysis of the primary data 7
Conclusions 11
References 13
Introduction
Tribute Ltd is a private limited company which operates in the market with the aim of promoting the work of tribute artists who needs to carry out the marketing so as to improve the sales of their products. The main motivation which helps them carry the day is the strong associations which they had created and developed with these artists, and the trust which exists between them and the company. Besides, they avail different opportunities which aid them to adapt efficiently to the markets. The company also ensures that they develop a brand loyalty which aid in customer retentions. It is done by the use of Nostalgia marketing strategy to inform and attract more customers (Ryan, 2017). In the promotion process, the Guitarist Jonnie’s work is emulated.
The work of the company cuts across ages, and most of the time it is through the internet which enables them to reach the entire audience. It is the realization that the young and old use the internet for various reasons, but it has been noticed that the young uses the internet as compared to the middle and aging population (Acred, 2017). The marketing process targets the use of social media to each and attracts more old age and youths. Their main motive is to bring back the old memories of the company’s successes hence connect to the entire industry through marketing activities. Therefore, the primary purpose of the company analysis is to do a market research for the tribute company and finally report the behavior of populations and give a recommendation whether going digital so as to reach more clients both young and old is a viable idea.
2.0. Analysis of the Individual Tasks
2.1. Senior Citizen Market Analysis
The Senior Citizen Market is a market which comprises of the persons which have attained the ages between 60 to 65 years. They are that group of the people who have either retired or in their retirement age (Bernhardt & Kinnear, 1976). In the market, they are considered to be the largest generation who can provide an efficient market to the company. In the current study, it was found that 11% of this population possess and know how to use the iPad (Writer, 2012). However, the youths who represent the larger population comprise of 70.4% of the entire population. It is also known that the population normally listens to the music of their generations. For instance, it shows that those who were born in the early 1960s will listen to the musicians of the time like Aretha Franklin, Archie Bell & the Drells, the FruitGum Company and Jimmy Hedrix. On the other hand, the youths who were born in the late 1990s, listen to the musicians and artists like Blab happy, anathema, Anaal Nathrakh and Adams and the Antis. It hence demonstrates that given the current population of England which is 66 million, the company stands a chance to acquire a larger market share since the number of the population who are 45 of age and above comprise of 39.4% of the population (Acred, C. (2017). It thus shows that the company stands a chance to acquire a market of 26 million people by 2017.
About Jonnie’s work and the inversion of the internet, the company ha an opportunity to get a large audience since Jonnie’s piece of work is loved by many which fall across all age ranges. Even though the elderly does not use the internet as compared to the youths, the company still has a chance to have a larger population especially if different websites which shall enable the work to be acknowledged by both elderly and young are established. It is a process which shall enable customers to be aware of Jonnie’s work. The promotion should thus be done by the medium which is used by the majority of the targeted clientele. Therefore, given that the elderly clients are not using the internet except for sending basic emails and some chats, or teleconferencing, then extra costs should be incurred to help in the promotion so as to attract their attention to the company’s product and services otherwise it is not viable to go digital.
The use of the Nostalgia marketing strategies also plays a major role in promoting the products and services. It aims at creating the unique emotional feelings in customers who are mainly composed of the old and attract them (Ryan, 2017). It shall sooth their hearts with music which reminds them of their happy experiences in the past. It will involve the use of imagery of the past items like the food, sculptures, piece of art and other items just to invoke the feelings of the elderly hence acquiring a larger audience.
2.2. Analysis of Secondary Data
The following is the data for the Jonnie sales record for the year 2014 to 2016.
Jonnie CD Sales Analysis
Total CDs
% of total
Price of CD
Estimated
% of total profit
Profits
Complimentary
130
2.72%
£0
-260.00
-0.75%
General
353
7.38%
£10
2824
8.12%
Mail order
167
3.49%
£10
1336.00
3.84%
Web order
223
4.67%
£10
1784.00
5.13%
Concert performances
1376
28.79%
£12
13760.00
39.57%
Retail
2459
51.44%
£8
14754.00
42.43%
Brighton pubs
72
1.51%
£10
576.00
1.66%
Totals
4780
100.00%
34774.00
100%
From the table above, it can be deduced that the sale of the CDs totaled to 4780 units. From the sales, the complimentary totaled to 130 units, general CDs totaled to 353 units, mail orders totaled to 167, and the web order totaled to 223 CDs. However, the higher sales were recorded in retail which recorded a totaled of 2459 units followed by the concert performance which was 1376 CDs. The lowest sales were recorded by Brighton pub which was only 72 CDs. The information about the spread of sales can be presented as shown in the figure below:
When the profits are projected and determined, the complementary are noticed to be making losses of 260 pounds. It shows that the production of this line of product is not viable to produce the brands of the CD to the market. The CDs for retail sales contain higher profits which amounted to14754 pounds which were closely followed to those from concert performance which was 13760 pounds. Still, regarding profit, the Brighton pubs performed dismally and recorded a profit of 576 after the complimentary. The information can be represented as shown in the diagram below:
From the table, the percentage of the corresponding profits can be estimated as shown below:
It thus shows that Tribute company should put a lot of effort on the promotion of the products whose performance is not strong hence enabling them to breakeven and maximize their profits. More live concerts should be done so as to boost the levels of revenue for the Jonnie’s products.
2.3. Analysis of the primary data
From the analysis which has been done on the frequency of customers per minute, the customers visit the premises (theater and Brighton Mall based on gender and sex can be presented as shown in the table below
Brighton Mall
The Theatre
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
From the table, it can be shown that the individuals both male and female regardless of the age were mainly going to the mall or theater between the 2nd and the 4th minutes. It simply shows that the customers first listen to the type of music before they first decide on which option they choose. It thus shows that the total people who go at the first minutes are those has had a taste and preference for Jennie’s work hence totaling to 25 individuals. Between the first and the second minutes, they totaled to 60 individuals. However, in the 3rd minute, the number of people declined to 34 individuals before they incline again to 37 people. The frequency in which people flow into the halls and mall can be represented in the figure below:
From the table, It can also be depicted that those who have attained the ages between 61 and 75 years are the people making the visits as compared to those who are between 0 to 45 and those who are 76 and above.It thus shows that the population of those who love the Jonnie’s work are those who are between 61 to 75 hence can prevent the company from going digital. It is because, since a larger percentage of the population are youths and they prefer the use of online devices as oppose to being online, they will tend to live out the middle age individuals. Therefore, another medium should be used to entice this responsive group of clientele. The age group which is above 76 can be few given that they are considered to be old and do not give a lot of emphasis to entertainment. Besides, some might be old enough hence cannot attend such functions. Therefore, the production process can be channeled towards the taste and preference of the customers who are between 61 years of age to 75 years of age. The information can be presented in the figure as shown below when the totals across the age groups are compared.
Therefore analysis of the type sex who visits the mall and the theater is also evident. It can be shown that the show is liked mostly by females as compared to the male counterpart. Therefore, more sales can be made to the females as compared to male. The incline in the number of the female can be attributed to the impulse purchase which is quite rampant among women. It can thus be shown that the female like the Jonnie’s products and work hence can boost the sales immensely. The information can be presented on the graph as shown below:
The female totaled to 61% of the total population across the ages while the remaining 39% comprise of the 39%.It thus shows that the production process should be done and be made appealing towards attracting more female into the shows and to the malls to buy the Jonnie’s CDs.
During the study, there was a bias which is attributed to the systematic error. These type of errors mainly occurs during the collection of data especially when the researcher had failed to take into account all the variables under study. They can include the error in accounting for the lapse in a minute in which the customers arrived at the mall and theater and the difference in the age group who attended since some people could deny unveiling their ages or giving false information about it. They can also arise from the differences in the time of the day, the location of the mall and the theater. These can thus cause problems in the estimation process which can subsequently lead to wrong decision making.
To attain accurate results, the company should find various ways of correcting such like errors in data. There are various methods which can be used, and they include the use of calibration method. In this method, the researcher can compare the results with someone else results. If there is a difference, and then the procedures can be compared to identify the steps which could have been having the differences. These can enable them to identify the error and make the necessary adjustments. Besides, the collection of data could have just happened for the entire duration and ensure that a large group of people within and without the Mall are interviewed so as to have a large population in which the sample can be withdrawn. These will ensure that true and viable results are achieved.
Conclusions
In conclusion, it can be said that when the idea of going digital can be proved to be futile since the larger market of the Jonnie works are the elderly population who are between the ages of 50 to 75 years. These groups of individuals do not like going online unless they tend to send some mail or a message. From the analysis, the Nostalgia marketing method is very important and can effectively be used to attract the older people (Cross, 2015)However, when the Internet medium is used, then many are going to be left out. Besides, the products or regions/Markets which record a negative sale should not be invested in since they will not compensate fully for the costs of sales and other expenses hence can lead the whole company to liquidation. Therefore, the sales of the products which bring a lot of profit margin to the company could give the expected required rate of return. It can be evident from the analysis that most of the population has given preference to the retail markets and concert performance as compared to other methods.Thus the company can give them the priority when they are contemplating to expand their market shares.
References
Acred, C. (2017). Our ageing population.
Bernhardt, K. L., & Kinnear, T. C. (1976, January 01). Profiling the Senior Citizen Market. Retrieved April 03, 2017, from http://www.acrwebsite.org/volumes/9214/volumes/v03/NA-03
Charness, N., Parks, D. C., & Sabel, B. A. (2001). Communication, technology, and aging: Opportunities and challenges for the future. New York: Springer Pub. Co.
Cross, G. S. (2015). Consumed nostalgia: Memory in the age of fast capitalism.
Dávila, A. (2012). Latinos, Inc: The Marketing and Making of a People. Berkeley: University of California Press.
Doyle, P. (2013). Value-based marketing: Marketing strategies for corporate growth and shareholder value. Hoboken, NJ: Wiley.
In Niemeyer, K. (2014). Media and nostalgia: Yearning for the past, present, and future.
Reference.com. (n.d.). At what age are you considered a senior citizen? Retrieved from https://www.reference.com/business-finance/age-considered-senior-citizen-67c0a4d6f1cf37ac
Ryan, D. (2017). Understanding digital marketing: Marketing strategies for engaging the digital generation. Philadelphia, PA: Kogan Page Ltd.
Ryan, D. (2017). Understanding digital marketing: Marketing strategies for engaging the digital generation. Philadelphia, PA: Kogan Page Ltd.
The Pandora For Old People Taps Baby Boomer Music Market. (n.d.). Retrieved from https://www.fastcompany.com/1765062/pandora-old-people-taps-baby-boomer-music-market
United States, United States, United States, United States, & United States. (1951). Aging. (Aging.) Washington, DC: Agency.
Writer, L. G. (2012, July 01). Effective Marketing to Senior Citizens. Retrieved April 03, 2017, from http://smallbusiness.chron.com/effective-marketing-senior-citizens-50122.html