2014 Marketing Plan By: Josh Kaczmarek
Table of Contents
Company Description…………………………………………………………………………………......... 1
Company History…………………………………………………………………………………………...... 1
Mission...................................................................................................................................................... 2
Core Values………………………………………………………………………………………...................... 2
Current Company Operations and Standing………………………………………....................... 2
S.W.O.T. Analysis………………………………………………………………………………...................... 3
Analysis of Competition……………………………………………………………………....................... 4
Analysis of Target Market…………………………………………………….………….......................... 5
Marketing Objectives……………………………………………………………….................................... 5
Strategies, Tactics, and Implementations………………………………….................................... 6
Price Strategy………………………………………………………………..................................... 6
Distribution Strategy……………………………………………………..................................... 6
Promotion Strategy……………...………………………………………..................................... 6
Product Strategy and Tactical Resources for Implementation ........................... 7
Timetable……………………………………………………………………………......................................... 7
Evaluation Criteria…………………………………………………………………………........................... 8
Conclusion……………………………………………………………………………………............................. 8
Survey…………………………………………………………………………………......................................... 9
Marketing Plan Company Description: Republic Records is an American Recording Label located in New York City. The label is known for facilitating artists of all varieties and giving them the freedom to make music that both the label and the artist is proud of. The focus of the label is on the artist and their individual sound, rather than a sound that people expect from a record label as a whole. Republic Records has very notable, hardworking artists on the label. The artists on the label are in different genres throughout the music industry, yet they work well within the record label and entertainment industry because they help showcase different styles and diverse talents.
Company History: In 1995, Avery Lipman and Monte Lipman (displayed in side picture) originally conceived the thought of the record label at their kitchen table in their small, New York City apartment. The first record ever released by Republic Records was “One Fierce Beer Coaster,” by Bloodhound Gang, which debuted in the Billboard 200 and later became certified gold. Due to the limitations of being a small, independent label, the Lipman brothers had no other choice but to accept an offer from Universal Records and later became a division Universal Music Group. In 1999, Republic Records joined the Universal Motown Republic Group. Shortly after, Motown Records and Universal Motown Records separated which shut down the Universal Motown Republic Group and forced Republic Records to lose its original name and become a part of Universal Republic Records in 2005. Shortly after that, Republic Records was re-‐activated under the Universal Music Group for the United States and Virgin EMI Records for the United Kingdom. It got its original name back and became the head label for the musical group as a whole. 1
Mission: Republic Records will focus on the expanding and developing entertainment market through the production and promotion of high quality music and audio entertainment and recordings. The label will become exceedingly cost-‐effective through the sale of pre-‐recorded music and audio products, including mp3 files, compact discs, and artist merchandise and memorabilia. The label’s philosophy is to offer music that will allow listeners to get to know each musician as an individual artist and experience different genres of music that the entertainment industry provides.
Core Values: • To offer many musical artists of different genres to the entertainment audiences. • To allow the listener to choose which artists they want to experience and promote each artist in a way that is fair and understandable. • To encourage relationships and collaborations with artists on the label and on other labels. In the picture, Jessie J, Ariana Grande, and Nicki Minaj’s (all signed to Republic Records) new single artwork is displayed for their original song, BANG BANG, which is set to debut on July 29 of this year. • To help our artists become inspired as they strive to make music they are proud of.
Current Company Operations and Standing: Republic Records is currently located in New York City with its original founders, Monte and Avery Lipman, assisting in the process of expanding and developing as a label. Monte Lipman was named President and Chief Executive Officer of the label in 1999 and has held the title ever since; Avery Lipman was named Chief Operating Officer and currently holds that position. Since Republic Records is in charge of everything under the Universal Music Group, they support and contribute to all the following labels: American Recordings, Aware Records, BME Recordings, Brushfire Records, Casablanca Records, Cash 2
Money Records (including Young Money Entertainment and We the Beat Music Group), Indie Pop Music, Lava Records, Loma Vista Recordings, Big Machine Label Group, SRC Records, Loud Records, ANTI-‐, Next Plateau Entertainment, Serjical Strike Records, and XO Incorporated. They advise these labels and help promote and showcase all the talents of each division under the Universal Music Group. Currently, they have very notable artists on their label, such as: Nelly, Nicki Minaj, Jessie J, Colbie Caillat, Hinder, Ariana Grande, Taylor Swift, Lorde, 3 Doors Down, and Drake. These artists are all in different genres, yet they work well within the record label and provide good entertainment for the industry’s audience.
Situation Analysis: v SWOT Analysis: 1. Strengths: § Variety of artists that provides an eclectic taste of all different genres for all the labels under Republic Records and the label itself. § Promote collaborations between different artists from different labels and artists already within the label. § Many successful, notable artists signed to the label that help the record label establish itself through the products they help produce. 2. Weaknesses: § Poor, inefficient marketing and promotion plans. § Disadvantage due to the fact that the label does not have a set management team to help price the product at a competitive amount, which may make the product look less valuable. § Limited ways of distributing product (rarely any special offers and hardly any CD production due to digital download). 3. Opportunities: § Serving potential audience members by providing new, more efficient marketing and promotions. § Using social media as a way of connecting with music listeners. § Expanding sales nationwide as well as worldwide by having global tours for artists popular in other areas of the world. § Gaining more loyal audience members through the use of traditional distribution as well as bundle packages. 4. Threats: § Susceptibility to industry’s demands because of the small role they play in the music industry.
3
§ §
Newer artists making their way into the industry through other labels. Loss of sales due to other record labels having more artists and a larger establishment set in the industry.
Analysis of Competition: Listed below are some of the major competitors (and their associated labels) because of the fact that they are the top distributors and producers in the music industry. They are consistently releasing new music from many well-‐known and established artists. • Sony Music Entertainment (Founded in 1929) § RCA Records § Epic Records § Columbia Records
•
EMI (Founded in 1931) § Capital Records § Astralwerks
•
Warner Music Group (Founded in 1958) § Fueled by Ramen § Warner Bros. Records § Grand Hustle Records
Sony Music Entertainment and EMI are direct competitors because they both have signed artists like Kelly Clarkson, Beyoncé, Miranda Lambert, Justin Timberlake, Rihanna, Christina Aguilera, P!nk, J. Cole, Carrie Underwood, Sam Smith, and Katy Perry (who are all dominating vocalists and performers in the industry at the moment). Kelly Clarkson and Beyoncé (pictured above singing at President Barack Obama’s second inauguration in 2013) are two leading singers when it comes to sales and recognition in the music industry. They perform at many events and have established themselves as artists in this very controlling, tiring industry. Though Republic Records is working hard to achieve the successfulness of Kelly Clarkson and Beyoncé for their artists, they are still having a hard time getting their artists known and recognized everywhere. 4
Almost every alternative artist in the Punk/Pop/Rock/Rap genre is signed to a Warner Music Group label. For example, Paramore, Fun., Panic! at the Disco, and Travie McCoy (all leading entertainers in their genres) are all signed under Fueled by Ramen, which is a part of the Warner Music Group. This helps show that mainstream music and alternative music is being handled and secured by labels other than Republic Records. In addition, Sony Music Entertainment has ventured out and signed a now very successful metal band called Unlocking the Truth. Republic Records is the label that was known for signing artists that other labels would consider “risky.” With Sony signing the new metal band, it helps show that Republic Records is no longer the only label taking risks with their newly signed artists. While each record label appreciates one another and helps support new music from any artist (not matter what label), they still try to compete with each other to help better themselves so that the music industry can continue to grow.
Analysis of Target Market: Due to their large, diverse genres of music within their label, Republic Records has an audience typically of young age adults/teenagers. Their target consumer could be defined as an upper-‐middle class 19 year old Caucasian-‐Hispanic mix female adult living in a suburban area right outside of Chicago. Her family income is over $75,000 a year. She is a cyclist and has been competing since she was 14 years old; she is into a healthier, more active lifestyle. She recently graduated from high school and is in her first year of college attending DePaul University. She is a middle child between her two brothers and is likely to be employed at a retail store or restaurant working as a waitress. She relies on technology and loves that she can purchase music from her MacBook Pro and/or iPhone 5 so that she can listen to her favorite songs wherever she goes. She, like many of the other target consumers, is into social media and networking sites that allow her to keep in touch with her friends and family.
Marketing Objectives: • • •
•
Improve marketing and promotion strategies. Establish a good management team that will help price the product in an efficient manner. Construct different ways for consumers to buy the product. o Allow consumers to buy bundled packages, holiday specialty items, etc. Appeal to new artists so that they want to sign to the record. 5
• •
Launch a more engaging website for new and potential consumers. Increase sales and engagement through social media sites.
Strategies, Tactics, and Implementations: Price Strategy: Republic Records would use the penetration strategy because it seems to work well for them now. They have many artists that are coming out with a bang. As of right now, Ariana Grande, one of Republic Records’ signed artists, is in the “Top 10 Singles” list on iTunes twice (once for “Problem” and once for “Break Free”). Along with that, Republic Records and Ariana Grande announced that they will be releasing a song called “BANG BANG” near the end of the month (just 4 weeks after releasing “Break Free”) which will feature Jessie J and Nicki Minaj, two other Republic Records signed artists. The penetration strategy works very well because they are allowed to feature other artists within the record label. Another reason that this strategy is fit for Republic Records is because they release music for each artist at different times of their other signed artists; this allows many of their artists to be exposed to the public on their own time, rather than shadowing other mainstream artists. Bundles will be available to their loyalty members, which will be discussed a bit more later on. Distribution Strategy: Republic Records will have all of their artists’ work available on every online music purchasing application and website; they will use the intensive strategy to help get their artists’ music heard. They will also have their artists’ music on Spotify and Pandora for people to check out their new music and see if they enjoy it. Their online distribution will make it very accessible to many members of their target audience. While distributing online, they will also sell packaged CDs that will be available at stores such as, Walmart, Target, and Best Buy. Promotion Strategy: Republic Records will offer a loyalty program that will allow their consumers to receive coupons and free songs. Their loyalty program will be available for sign-‐ up on their website and will be free for everyone. The loyalty club will also include bundles for live shows and specialty items, such as “Deluxe Edition” albums and holiday themed music records. For live shows, people will be entered into a raffle to meet the performing artist of Republic Records after they purchase their ticket. If they win, they get to go to the meet and greet for free, if they do not, they can choose to purchase the meet and greet ticket at a discounted price considering they are already loyalty members. In addition, Republic Records will use its social media to help get the word out. They will take to their Twitter, Facebook, and Instagram to help notify people 6
of what is happening with their favorite artists. They will announce shows on those outlets and they will release ticket information via the social media sites as well. Another gift that loyalty members will receive is a “follow back” from the label’s twitter account, which will allow them to direct message the record label and tell them of any issues or problems they have experienced or are currently experiencing. Product Strategy and Tactical Resources for Implementation: A survey will be made to see whether or not people enjoy the way Republic Records is conducting their business. It will track how people buy and listen to music, and if they enjoy purchasing from the label. These results will allow the label to identify any occurring problems.
Timetable: • • • • • • • • • •
• •
January: Announce tours via social network and website that will be going on in the spring season. February: Distribute surveys to help ensure that the consumers are getting what they are expecting from the label. March: Distribute specials for loyalty members for the spring tours. April: Update website for a summer feel and provide links and tabs for summer music festivals. May: Evaluate Surveys. Announce tours via social network and website that will be going on in the summer season. June: Distribute surveys after evaluating the first survey to help ensure that the consumers are getting what they are expecting from the label. July: Promotion! Favorite summer song for free download from any of their favorite Republic Records artist. August: Back to school special that allows a free mp3 download via Target after spending $25 or more on school supplies. September: Evaluate Surveys. Announce tours via social network and website that will be going on in the fall season. October: Halloween special! A contest will be held that will allow consumers to dress up as their favorite artist for Halloween. Pictures must be posted to Instagram with the hashtag #WitchArtist? and a description of the artist they are trying to be. November: Announce the winners of the Halloween special and give them free meet and greets to an artist (of their choice) from the label. December: Holiday special via Starbucks. Each red cup will have a code that will give a free download to a holiday song by an artist signed to the label. In addition, holiday merchandise of all their favorite artists will be available. 7
Evaluation Criteria: The surveys will be evaluated to help make sure the label is on the right track. They will also be charting the growth of each artist to see which ones are excelling and which one need a bit more help. Evaluations of the social networking sites and contests will be held to determine whether or not to do more contests and announcements via social networking vehicles. Republic Records will also be using smaller follow-‐up surveys to help comprehend what consumers are looking for.
Conclusion: Republic Records has been steadily moving up in the music industry. What used to be a basic label is now becoming a prestigious label that many artists are striving to sign to. The goal is to broaden the audience and reach out to as many consumers as possible. This plan will be successful if it is applied in an appropriate manner and as long a Republic Records keeps the audience informed of what each artist is doing.
8
June 2014 Sample Survey
1. What is your gender? a. Male b. Female 2. What is your age? a. 17 or younger b. 18-‐24 c. 25-‐30 d. 31-‐35 e. 36-‐40 f. 41-‐45 g. 46-‐50 h. 51+ 3. What is your favorite genre of music? a. Pop b. Rock/Punk Rock c. R&B d. Rap e. Country f. Combination or other? Write the letter options or your own favorites:
4. Do you tend to listen to more female or male singers? a. Female b. Male c. Don’t tend to pay attention to gender 5. When do you listen to music the most? a. Parties b. Small gatherings c. In your home d. While using a mode of transportation: walk, bus, car, train, etc. 9
6. Where do you get or stream your music? a. iTunes b. Spotify c. Pandora d. Google Play e. Music store or store with music department (Best Buy, Target, etc.) f. Other 7. Would you consider yourself a person who listens to all types of music? a. Yes b. No c. Depending on the artists 8. When you buy music, do you prefer the Mp3 files, or the CD? a. Mp3 files b. CD 9. Do you prefer listening to what an artist’s new album has to offer before purchasing the whole thing? a. Yes b. No 10. Would you be more inclined to buy music if bundled packages were available? a. Yes b. No c. Depending on the artist 11. Would you feel more excited about the music produced if recording artists of the label hosted seasonal holiday events? a. Yes b. No 12. How much do you spend on music every month? a. 0$ b. $1-‐$5 c. $6-‐$10 d. $11-‐$15 e. $16-‐$20 f. $21+ 10
13. Which do you prefer buying over the other? a. Singles b. Albums 14. What do you think is a reasonable price for a 14 track album? a. $9.99 b. $10.99 c. $11.99 d. $12.99 e. $13.99 15. Please leave us any notes or comments that you believe would help improve your experience with Republic Records. Thank you for your time!
11