RRIVET MERCH

Kenny Hall // Rachel Ozios // Leah Richards // Jake Smith

Strategic Analysis

//OUTLINE//Executive Summary:

//Company Overview: / Company Information /Mission Statement / Current Company Standings

//Situational Analysis: / Competition / Marketing Summary / Industry Information

//SWOT Analysis: / Strengths / Weaknesses / Opportunities / Threats

//Strategic Marketing Initiatives: / Management Outreach / 3rd Home Developement /Concert Initiative /Meet & Greet Tickets /Loyalty Program /Rivet App

//Strategic Marketing Moves: / 1 Year Plan / 3 Year Plan / 5 Year Plan

//EXECUTIVE SUMMARY Within this strategic marketing analysis we sought out to understand Rivet

and the industry better through in-depth research in order to produce a future

outline that will progress the company in the years to come. Each section holds

significant information that gives insight into our studies and provides Rivet with

some critical pieces of advice that could make the company even better.

We started out by defining where the business is through our "company

overview" and "situational analysis" sections and then moved on to apply a

"SWOT analysis" on the company to identify what we needed to work on primarily.

We finished up by showing our main advice to catapult Rivet even further in front

of the competition in the section labeled "strategic marketing moves". We also

added our detailed outlook on what the company could do within the next five

years under "strategic marketing moves" for Rivet to understand our vision.

Each of the upcoming sections contain brief introductory paragraphs

followed by the more detailed information for the business to really grab onto and

use. We hope our suggestions and research give useful insight because we care

about Rivet and we really want to see the company continue succeeding in the

future.

//COMPANY OVERVIEWSince February of 2012, Rivet Merch has been a full service merchandiser and online fulfillment provider for artist in the music industry. They help maximize sales for their clients through the execution of ordinary details in extraordinary ways. Merchandise is processed and shipped directly to fans from the online storefront created by Rivet Merch. Artists will receive a monthly email of a detailed sales report on their orders and web traffic for the month. Customer support services will be provided via phone and email to the artist customers. By letting Rivet handle the artist merchandise orders, artists are able to focus on what they love to do: make music.

//COMPANY OVERVIEW /Company InformationName: Rivet Creative Group, LLCAddress: P.O. Box 55476 Indianapolis, IN 46205 United StatesContact Info: (888) 945-8431 Email: support@rivetmerch.zendesk.com Web: rivetmerch.comTeam: Dan & Chad (Principals)Creation: Started in 2009 when trying to help artist, Jon McLaughlin, with his marketingMeaning: Rivet - A grounding force that holds everything together

/Mission StatementRProviding attractive merchandise and affordable online merchandise stores for bands and artists. Rivet maintains the philosophy that good things happen when the ordinary details are executed in extraordinary ways.

/Mission Statement

Number of Clients: Between 18-20Products/Services: Online merchandise store front graphic design and marketing servicesSocial Media: Facebook 142 likes - 10/13/14 Twitter 135 followers - 10/13/14 LinkedIn 22 followers - 10/13/14 Instagram 85 followers 10/13/14Sale Profit %: 23% of every transactional sale

/Current Company StandingsR

//SITUATIONAL ANALYSIS There are a couple different types of competition for Rivet. Direct competition is merchandise fulfillment firms such as Topspin, and indirect competition is different platforms for artists to list and sell their own merchandise, including Bandcamp, Spotify and countless others. Rivet has immense growth opportunity as the music industry is constantly expanding and new artists are always emerging. Technology has provided a new medium to buy and sell merchandise outside of concerts and festivals, so artists are beginning to take advantage of that. Rivet has a lot of potential to capture these artists, however there are a lot of options for artists to consider so Rivet must capitalize on its unique value proposition. Overall, Rivet is set up for success, but the company needs a plan to reach new artists.

//SITUATIONAL ANALYSIS/Competition

By Rivet being a complete order fulfillment company and providing arists with creative design services, Rivet is building a unique niche in the music industry. This creates a large variety of competitors for Rivet. A few of the type of competitors include: -Companies who provide musicians online store fronts, but do not provide full service order processing - Ex: Bandcamp, Shopify Accounts, etc. -Companies who provide artists with an online storefront and full order processing services -Ex: Topspin, Merchline, etc. -Companies that offer musicians graphic design or website building services -Ex: Skyfall Media, Exothermic Design, etc.

> Value Proposition:Executing details in extraordinary ways by meeting the artists needs in the most convenient way to promote and drive revenue to both parties.

> Target Customer:Musicians who are financially and time consceince but are expanding and need a simple way to promote their merchnadise that will be cost efficient Current Promotion.

> Word of Mouth:Rivet does an awesome job at what they do. Their artist all seem satisfied and talk highly about Dan and Chad.

/Marketing Summary

> Email Marketing Campaign:Artists are pooled together through various sites such as Kickstarter, Pledgemusic, Topspin, DiscRevol and then they are contacted about current merchandise situation.

>Artist Referral Program:A program recently initiated to pull in new artists through already established client base.

>Social Media:Currently working on many platforms to bring in merchandise customers and clients.

>Website:The overall website content and appearance is impressive. It is modern, and grabs your attention. It is visually appealing, emotionally appealing, and provides value to the average browser.

The music merchandise industry is loosely dependent on the music industry, which is growing and rapidly changing. Music has transformed from a physical product to now a mostly digital product. Technology has influenced the industry immensely, leading to a growth in streaming services, digital downloads, and now digital stores for artists’ music and merchandise.

Because of these new methods for online merchandise sales, many options have emerged for artists to choose from - including firms that do merchandise fulfillment and marketing, as well as platforms for artists to fulfill and market their merchandise themselves.

The merchandise industry is quite fragmented, so artists fall into several categories: > Not selling any merchandise> Only selling merchandise after concerts> Using personal website for merchandise and self- fulfillment> Using outside platforms for merchandise and self-fulfillment> Using merchandise and fulfillment firms

/Industry

//SWOT ANALYSIS To fully understand how to grow a company strategically, looking at their strengths, weaknesses, opportunities, and threats is a foundational place to begin looking while developing a plan for growth. After analyzing the strengths and weaknesses Rivet provided for us, we have taken the time to thoughtfully plan a few action steps to capitalize on the companies strengths as well as take advantage of their opportunities.

To continually produce contentment for Rivet's clients we recommend a implementing a fulfillment program. This program is easy to start and will mutually benefit the company as well as those Rivet's supports. The program is designed to make the company aware of the specific needs of the client and how to make the most of the relationship. The program can be as simple as having the client write a letter describing what fulfills them, as well as paying for them to take the strengths find test with their company in mind. It will show the top five strengths of the company and Rivet will be able to compliment those strengths well.

Another way to take advantage of Rivet's strengths and opportunities is to develop a referral program. This referral program acts as an incentive for more bands to invite other bands they know would be interested in Rivets service. The perk for the band referring could be as simple as a free set of promotional stickers or a free design produced for the band. This referral will attract more bands because Rivet will illuminate the lack of trust on the businesses end with potential band clients. The referral comes from bands that most likely already have established a relationship and a depth of trust.

Current Technology: >Shipping Scale: directly connected to computer for accurate pricing and label printing >Email Marketing Analytic Tools Can determine if emails are being opened, how much time is spent reading the email, and if one area draws more attention than others >Monthly Sales Reports

> Executing details in extraordinary ways

> Follow through on details, even in commons things

> Creative approach

> Think outside the box

> Other companies make poor cash decisions and ultimately go out of business

> Taking advantage of platforms already out there and using things already done well

> Set apart because of background

> Fulfillment for customers in the long run, develop a relationship instead of a transaction

> Cost conscience

/Strengths

> Lack of resources

> Lack of human capital

> All work flows through Dan (labor intensive)

> Lack of focus in strategic areas due to the daily tasks of running a business

/Weaknesses

Current Technology: >Shipping Scale: directly connected to computer for accurate pricing and label printing >Email Marketing Analytic Tools Can determine if emails are being opened, how much time is spent reading the email, and if one area draws more attention than others >Monthly Sales Reports

> Jon McLaughlin

> Sara Bareilles

> Web background

> Music industry is going digital, having online presences is key

> Industry is always growing

/Opportunities

> Start up with not a lot of credibility

> Companies like Topspin

> Not enough human capital

/Threats

//STRATEGIC MARKETING INITIATIVES

The following projects are what we as a group have decided would best improve Rivet after our discussions with the owner and through our independent research. Each one has been carefully thought through and with some tweaking along the way these can be huge profitability boosters for Rivet. Our ideas spectrum includes gaining new customers, keeping current clients, developing the brand, and creating ease for all that use Rivet and their services.

//STRATEGIC MARKETING INITIATIVES

/Management Outreach Purpose:>One of the major issues Rivet faces is with making quality relationships with artists because they are constantly moving on tours and are hard to reach. Through our discussion with the owners, we were able to develop an idea for an outreach program to target artists managers. The reason for this is to hit multiple artists under one manager and to focus on the person who makes the merchandise decisions for artists.>We have established a package that Rivet can send to managers to catch their interest and get them thinking of Rivet as their artists merchandise provider. Our first task was to communicate with managers to determine their wants and then move on to make a mock package that can be sent.

Manager Survey:>We began this process by collecting specific questions from Rivet which they wanted to know from management companies and then we also formulated our own to create a comprehensive survey. Our hope was to develop a better understanding of the management companies in general and determine what they look for in a company they want to work with.

-Emailed: Over 30 management companies

-Collected Data: Talked with 5 management companies

-Formulated Packages: Designed 2 ideas Rivet can take in a variety of ways

-Critical Information: -Still obtaining final results

Package Ideas:> A water bottle, similar to a nalgene, but the top cap is a bolt or a rivet. Inside the bottle is a shirt and a cd is provided showing what Rivet has to offer but the band manager is left with a water bottle that is different from the rest. Each time he uses it, he has to unscrew a rivet to get a drink.>Finding something unique like a milk carton to be the packaging which stands for a value or strength that Rivet possesses. It could be similar to the nalgene idea: make the cap or cover for the carton a rivet or bolt that they have to unscrew but make it more a symbolic structure that really outlines what Rivet is all about.

screw but make it more a symbolic structure that really outlines what Rivet is all about.

A third home is a space where one chooses to go to be creative. A third home is an environment that one chooses to go to because of the experience the atmosphere provides. Having a third home space for Rivet team members to be creative and connect with their customers is a strategic initiative that Rivet needs to consider.

Financially this could look like a very far off dream, as Rivet currently consists of only two people. However, through satirical research, this is a very feasible idea that has the potential to happen over the next few years.

The music industry and the coffee industry have a very similar market. We recommended that Rivet partner with a coffee shop to create a third home with a musically interactive environment. Through a partnership, the two businesses in different industries could both financially benefit through splitting costs and driving more customers.

A workspace for Rivet employees would be connected to the coffee shop. The workspace would be open and innovative. The space would include open desks for a team environment. There would also be innovative conference rooms as well. Depending on the size of the space, Rivet could rent the space to other small business owners until Rivet grows.

/3rd Home Development

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>Rivet has two types of customers – the artists they sell merchandise for and the fans who purchase the merchandise. Targeting both is essential to Rivet because the more fans that purchase merchandise, the more revenue for Rivet. Therefore, the more artists they have contracted, the more fans to reach with merchandise.

>An initiative to reach both is for Rivet to host a concert. Although Rivet does not receive direct revenue from tickets or merchandise sold at the concert, there are several ways they would benefit.

-Rivet as host would get their name out there. The concert would mainly attract the millennial generation and there are many up and coming artists in this age group. Rivet could use this opportunity to position their brand to the millennial generation and gain awareness.

/Concert Initiative

-Rivet would be helping their artists through hosting a concert because artists often gain new fans on tour. Fans who come to see the headlining artist often like the opening artist and become a new fan, or vice versa. This will help Rivet build a stronger relationship with their artists while increasing merchandise sales, which benefits both the artist and Rivet

-In order for Rivet to benefit in sales from the concert, they would give out coupons to concert attendees that offer 10% off artist merchandise purchase from Rivet's website only. This would encourage more fans to purchase merchandise online as opposed to waiting in the long line for the merch table at the concert, which would boost sales for Rivet.

> These tickets provide an opportunity for fans to interact with their favorite artists, adding a personal touch that the concert experience does not offer. Rivet would be responsible for these ticket sales, which would drive more traffic to their site and potentially lead to more sales of artist merchandise.

>On the next page is a simple layout of what these tickets could look like once purchased through Rivet's website.

/Meet & Greet Tickets

Team Approach>Join local ticket selling business because of that specific industries complexity

and offer specialty deals to customers through combined strengths of working

with them.

>Ticket Selling Company Benefits:

-More traffic from fans

-More social media awareness from Rivet

-Additional value to their website by showing discounted

merchandise from Rivet

>Rivet Benefits:

-More traffic to their website from fans

-More social media awareness from the business selected

-Added brand value by showing discounted tickets to customers

-Having possible options for giveaways from connection

VIP Approach>Similar to Amazons approach by offering Prime, Rivet can offer an upgraded

version that adds value to the customers for sticking with them. This could look

like multiple things and can be implemented in a couple different ways that we

have outlined below.

/Loyalty Program

>Option 1

-By becoming part of an email list they get specialty offers,

discounts, and news about artists they love. This could just be

an added bonus that keeps Rivet on the forefront of their

brains.

>Option 2

-Rivet could get more technical with this approach and if

customers join the Rivet Club and complete certain

dares/tasks they can receive free items that would get customers

excited. These dares/tasks can include:

>Rivet dares you this month to make a music video of

your favorite artist and send it in for a free t-shirt

>If you post about your favorite Rivet merchandise item on social

media this month you will be entered in to win a free autograph from

the Jon McLaughlin

>Rivet dares you to pose with your favorite artist merchandise item

and post it to Facebook with the hashtag RivetMerch and the artists

name to win a free sweatshirt of your choice from our selection

>Option 3

-Rivet could also throw in simple things like faster shipping, opportunity to

buy new merchandise earlier, etc. to sweeten the deal

Cause Approach>Help give customers a reason to be emotionally invested into Rivet by showing

causes that are being supported by their profit. They can either be very serious

causes that the business supports for a certain reason or it could be more

directly related to the business. These options could include:

-Personal (Something Rivet is passionate about)

>Some “green” initiative

>Homelessness

>High School education programs

-Business Related (Something maybe the customers can relate to more)

>Broke artist fund

>Young artists fund

>Clothing the homeless

Points Approach>Rivets current points system is a little bulky and hard to understand. A points

reward system can work but there needs to be easier access and comprehension

behind it to get their clients involved. A simple solution would be to make a

survey that asks their customers what they look forward to most and rate what

they value most out of merchandise. After that create incentives to attain those

most valued items for free.

When Rivet is ready to take the step to develop an app, they have two major routes to pursue: create an app that helps artists manage tour merchandise logistics and create another app for customers to shop for artists’ merchandise from their phone.

At this point in time, Rivet only receives a cut of sales when customers buy merchandise online. While artists are on tour and sell merchandise at shows, Rivet does not profit directly.

The app for artists has a lot of potential for Rivet to tap into and capture a new area of revenue. Artists would pay a subscription fee to purchase it and would use its features to help manage their merchandise sales at concerts. Although Rivet would not receive a cut of the merchandise sold, they would still profit while artists are touring because artists are paying for the Rivet app.

Inspiration for this app came from an existing app called atVenu. A few of the many features of the app include:

-Accurate artist and venue settlements -Automated Nightly Email Distribution Reporting -Tour Merchandise Analytics -Robust Reports for Analyzing and Managing Merchandise -Manage Merch Inventories -Data Security

/Rivet App

The value proposition for artists is incredible, because this app is all about making their life easier while on tour. In fact, for this particular app artists “pay only while you are on the road!” and Rivet's app should follow this pricing model of having a monthly fee only for touring months.

The second app aimed toward customers who are browsing for artist merchandise on their phones could have the basic functions of Rivet's website and mirror the design but in a mobile version. Essentially those functions are selecting one of Rivet's artists, browsing their merchandise, and making purchases right from their phone.

//Strategic MarketingMoves

-We are devloping Rivets own personalized strategy which we have come up with through our research. We hope this aids the company in the years to come and that it will give Rivet a good outlook on what is needed in order to continue progressing.

-We have included a 1, 3, and 5 year plan that takes our Strategic Marketing Initiatives and lays them out into our estimated time of implementation. We believe some projects in the 3 and 5 year period could be rolled out earlier, but with Rivets current status we found that the deadlines listed are a healthy deadline.

>Management Outreach -Reasoning:

This is an opportunity for Rivet to tap into new potential business

with a very different appraoch than they have been doing. This

plan also kills two birds with one stone because when they gain one

manager they have the possibility to reach all artists under them.

>Concert Initiative -Reasoning:

Very quick, inexpensive, and good marketing tool for Rivet. There is high

potential to make a good relationship with artists and customers who are

interested in merchandise.

>Meet & Greet Tickets -Reasoning:

Meet and Greet tickets is a new way for Rivet to add value beyond

merchandise. This will help them to target the die-hard fans who want to

meet their favorite artist. It will also draw in more of those fans to see more

of their favorite artists’ merchandise.

/1 Year Plan

/3

>Loyalty Program -Reasoning: -The loyalty program is under the 3 year plan because they take time to implement. Currently, Rivet does not have a large enough client base or enough employees for the loyalty program we suggested to be feasible. We suggest Rivet to wait a few years as they grow as well as to gain a better understanding of what motivates their customers.

/3 Year Plan

/5 Year Plan

>Rivet App -Reasoning: -Apps are the norm in todays age but they are also very expensive which is why we have chosen this 5 years down the road. It is not completely necessary right now but will be useful for their customers in the future.>3rd Home Development -Reasoning: -People are always trying to find that place besides work and home where they can go relax and have fun and we believe Rivet can be that place within 5 years down the road. road. It is unpractica

Chad Kinner & Dan Wagoner // Rivet Principles

Rachel Ozios- Editor // Kenny Hall- Designer Jake Smith- Group Manager // Leah Richards- Designer