I/A Entertainment

I/A Entertainment

Gerald, Zhang Teng, Shilpa, Vanessa, & Zulumila

Outline

EXECUTIVE SUMMARY

MARKETING ANALYSIS

CONSUMER ANALYSIS

BUSINESS OPPORTUNITIES

MARKETING STRATEGY

About Us

I/A Entertainment is an independent record label based in Philadelphia, Pennsylvania. All recording, artist management and production is done in Geralds home.

I/A Entertainment aims to be leading record label for Hip-Hop and R&B talent in Philadelphia area.

Services offered:

Artist Development

Audio/video productions

Editing audio & video

Artist marketing /promotions / personal branding

Music distribution

Studio time**

Year 1: Budget = $7,500 Revenue = $150,000

Year 2: Budget = $15,000 Revenue = $300,000

Year 3: Budget = $300,000 Revenue = $6,000,000

Market Analysis

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Market Summary

Our independent record label is responsible for the production, development, marketing, and distribution of artists and their bands

I/A entertainment is categorised as an independent record label

According to the North East American industry classification system , our company would operate in the integrated record production / distribution sector

Market Trends

The positive trend that impacts the independent record label market could be a 360 deal

Revenue streams from Intellectual Properties Royalties such as:

Performing Rights Royalties

Mechanical

Synchronization

Print

Merchandising

Brand support

Potential endorsements

Market Trends

CD players are still the most popular activities

People also listen to music on the radio more times per week than any other method

Quickly catching up with DVD sales

Online-delivered music accounted for just over 10% of the value of the total market for recorded music in 2007, compared with just over 5% in 2006 and just 2% in 2005

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Market Trends

Twenty-nine million consumers acquired digital music legally during 2007 (iTunes)

Growth was largely driven by consumers age 36 to 50

Younger generation today are too busy stealing music through P2P networks to actually pay for it in either CD or digital format

One million people stopped buying CDs in 2007, and NPD said that a majority of those people were younger consumers.

More specifically, some 48% of U.S. teens didnt buy a single CD during the year

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Primary Consumer Segment

Geographic

I/A entertainment is working currently in Philadelphia region

Demographic

Higher 17-30 years age group

Target smaller groups of people interested in music

Behavior Factors

Genre of music, which is in interest of smaller groups, later target bigger groups

Platform for the new artists with talent

Target Market

We target ambitious, determined, and self motivated hip hop artists in the Philadelphia area

The targeted artist will be between the ages of 17 to 25 with an annual income of $20k to $55K who are current college students or recent college graduates

Individuals who are talented and have the desire to pursue a full time career as a music artist, but have minimal formal training in performing arts and brand development

We look for artists who are loyal to our brand based on personal experiences from working with us in the past.

Market Needs

Allow digital distribution (online)

Communicate through social networks

Allow users free downloads from internet

Make mobile ringtones of the favorites

Build Apps for easier access

Podcasts live shows

SWOT Analysis

StrengthsWe efficiently and effectively develop artists

We have a professional team of music veterans that are trained and experienced in the business

We also are proficient in using and maintaining social media to our advantage.

We offer reasonable and affording pricing to our potential customers.

WeaknessesStartup difficulty developing brand awareness

Not famous

Budget

Relying on outside capital

Lack of professional marketing experience

We lack an expansive media network

We lack stability

OpportunitiesDifferent genre, mixing Rap and R&B

Digitized music

Participation within a changing industry in the internet era

Large local market of young audiences

Co-branding and incorporation of partnerships.

We offer artist etiquette training and development

ThreatsWell established technology and entertainment companies that are beginning to offer similar products and services as an independent label.

Changing technologies and growth in social media usage are diverting artists and customers towards competition.

The volatility of working with underdeveloped artist, and having a high risk of not receiving the anticipated return on investment.

Copyrights and legal issues

Unmet Needs

Try new things outside of the traditional major-label model

Independent in original sense

Attention of fans

Include more than local competitors in competitive analysis

Compile a list of strengths and weakness for the competition

IA Entertainment differentiates themselves by the mix of artists they sign and promote, making this a crucial section of an IA Entertainment marketing plan.

Favor less conventional outlets for the shows -- outlets more likely to attract our target customers

Concert promotion is one of the major revenue drivers for any record label.

Live concerts

Great Music

Self-development

Music Sales

Talent finders

Music Market/ Product Grid

Current MusicNew Music

Current MarketMarket penetration strategyLong term consumer loyalty

Book our artists at camping festivals and art expositions, for example, rather than arenas and concert clubs.

Product development strategySign with the new artists

New artist with the interest of same music which is popular in the current market

Make name both in retail recording and live music scene.

Leveraging networking contacts

Plus the artists as much as possible

Performing quite often

New MarketMarket development strategyProviding more information about the artist that we represent

New generation music

Continually organize tours for our groups focused around recent album releases

Aggressive networking to assist in securing our initial artists

Diversification strategyCalling up newspapers and inviting them to sessions, basically letting them know what is going on

Submit press releases

Music apps

Find good story angles for the print media

List every show played by the bands

Coddle the radio stations

Develop press kits

Get professional quality photos.

Target Consumer Profile

Age around 13-40 year old

Innovative

Full-time college student/an employee

club promoter/disk jockey /host

Enthusiastic

Goal oriented

Eclectic

Has a very diverse musical taste

A huge fan of gangster movies and likes edgy upbeat music

Driven and performs often in local venues, but has no formal performance training

Desires to have a successful and profitable musical career with longevity

An innovator and an early adopter who closely follows trends and nuances in the Entertainment Industry

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Integrated Marketing Communications Strategy

Marketing objectives:

I/A Entertainments first year goals

Increase sales by 100%

Increase brand awareness by 100%

Increase market share by 50%

As stated in our marketing mix we will use both a push and pull strategy to connect with our customers. We will use traditional and nontraditional promotional methods to highlight aspects of our product that differentiate us from our competitors.

Branding Strategy

Build and repay loyalty to users

Always keep original group style

Make achievable promises

Psychological pricing strategies

Penetration pricing strategies

Marketing tactics:

Traditional Promotional Methods:

Sales

Promotions

Public Relations

Direct marketing

Non Traditional Promotional Methods:

Mouth marketing

Viral marketing

Stealth/uncovering marketing

Mobile marketing

Radio Advertisement is an effective way

Channel Strategy

Allow digital distribution (online)

Communicate through social networks

Allow users free downloads from internet

Make mobile ringtones of the favorites

Build Apps for easier access

Podcasts live shows

Channel Strategy and Promotion Mix Strategy

Awareness-through concerts-spread the word

Online site for purchase of music/tickets

Promote through social media

Post- purchase discounts

Promotion

Make social presence- through instagram , facebook etc

Advertise through Banners

Preview clips before launches

Use Radio stations to capture wide group

Promotion Strategy

Push Promotion:

Social Media marketing, Radio shows,Widgets,online advertising, newsletters.

Online blogs

Make announcements with teasers on who will be in it and viral hashtag campaigns

Release preview clips & Instagram videos

Do giveaways including tickets and merchandise

Partnering with famous companies requiring our music or services

Offer seasonal price discount and sales

Pull:

Share music/links/pictures on social media

Internet Radio and Radio stations

Magazine / online advertising

Adding widgets

Prepare and send newsletters

Get Support from others/partnerships

Budget of promotion

Budget Year 1: $7,500

Year 2: $15,000

Year 3: $300,000

Budget breakup:

Printing cost (CDs+flyers)

Website development and marketing personnel cost

Giveaways(t shirts) cost

Radio telecast cost

Digital rights/copyright cost

Cost estimation for the Promotion

Run advertising on Internet based radio services such as Pandora at an average cost of around $250 per spot.

We will participate in popular local Hip-Hop radio station on a 2 hour show average cost $500 each time.

Broadcasting advertising through television commercials will also be utilized,we will air a 30 second TV commercial on major networks such as MTV to promote our business to artists in the Philadelphia area which is $500 per spot

We will have ads placed in all local newspaper and magazine outlets specifically at a rate of $250 per ad.

We will also look to have billboards placed in major cities in high traffic areas, starting with locations near colleges in the area which will be $1500 each

Other sales promotions will include giveaways, discounts on services and products, free recording sessions for the 1st 10 callers, and free merchandise for referrals.

The average cost of advertising is based on the length of the ad and how long the ad is being run. The typical length ranges from 1565 minutes.

Promotion Cost - Year 1

Promotion Cost - Year 2

Promotion Cost - Year 3

We will broadcast a weekly podcast that will be hosted by a company executive and available on iTunes as well as our YouTube page and company website.

The content of the podcast will include industry tips and interviews with industry professionals.

The purpose of the podcast will be to build brand credibility, while also increasing brand awareness

We will also be producing 4 initial Tshirt designs that will correlate directly with our brand values, logo, and promotion strategy.

Each design will be processed on to plain black cotton Ts, with each design having 100 copies each, to be sold at concerts promoting our artists and any other collaborative efforts we may orchestrate.

Details for Podcast and Initial Tshirt Plan

Thank You For Listening!