LadyA Maria Immaculada Alejandra Gonzalez Carroccio In 1973,
her parents were granted political asylum and moved to Florida
Arrived with limited savings but determined to succeed!
Slide 3
Mr. Carroccio To work independently, as a sole trader, in order
to achieve financial security. Cash flow forecast weak; turned down
for bank loans eventually got a small grant from a government
agency to help entrepreneurs. Mr. Carroccio opened a small shoe
repair shop in their Spanish-speaking neighborhood in Miami.
Slide 4
Mrs. Carroccio At first She experienced difficulties because
she didnt speak much English. Then She took classes organized by a
local charity. So that she eventually Found a job in the school
cafeteria. Low wages, but fringe benefits including health
insurance. Non-profit organization Mission Statement Eventually,
with the profits from Mr. Carroccios shop & Mrs. Carroccios
wages, the family maintained an economically stable household.
Slide 5
1978 Alejandra is born! Parents wanted Alejandra to have a
normal American life. Spanish to each other, but: English with them
Singing in choral groups at school and church After school dance
lessons 12-years old occasional modeling jobs for local catalogs
& magazines. $$ put into a college fund Modelling led to small
acting roles in Miami. La Bella Rosa
Slide 6
Musical Success! Alejandra is offered a contract to produce a
CD album! Unfamiliar with negotiation she hires Gloria Woolrich as
her agent. Gloria has worked with Spanish-speaking performers, her
advice: Target the Spanish-speaking market in the US Promote
herself as Lady Alejandra to emphasize Hispanic roots with a touch
of elegance. Parents sign the contract since she is under 18. With
#1 hit in Florida Alejandra earned income from copyrights and
royalties. She needed an accountant to help: prepare final accounts
manage her money pay appropriate taxes
Slide 7
As immigrants Mr. & Mrs. Carroccio strongly emphasized
education. Theyd struggled to satisfy basic needs when they first
arrived, only achieving economic security after working long hours.
They believed if Alejandra went to university, she would have a
better life. They didnt want music to distract her. Reluctantly her
parents agreed to a second CD album, which proved even more
successful than the first one. Lady Alejandra
Slide 8
A pril senior year Alejandra wants to move to Los Angeles to be
a star instead of going to college. Parents disappointed, but
couldnt stop her because shes 18. Alejandra left her previous agent
and hired Ruth Liebermann. Ruth helps her:
Slide 9
Marketing a Music Star Product life cycle of music stars is
short unless managed carefully. Her revenue streams would be based
on developing a brand identity. Shed need to develop strategies to
extend the product (aka Alejandra)
Slide 10
Alejandra as a brand Identity based on youthful & innocent
look, powerful voice and Hispanic heritage. Current Alejandra was
nervous but agreed to go to Gavin Pratt-famous hair dresser &
style expert. Led to another revenue stream: appearing on the cover
of high- profile fashion magazines. Transition to Glamour
Slide 11
lay-dee-ay LadyA is born! Changing demographics in the US
Percentage of Hispanics-small but growing Demographic shift
creating negative political reaction Focus groups showed some
English-speakers didnt like the name Lady Alejandra We Lady A
Slide 12
2001 Earning millions per year from CD sales, concerts,
magazine covers and music videos. Employed full-time accountant to
manage revenue & expenses.
Slide 13
Employees Core Employees Band Group of dancers Variety of
musical & video technicians Events manager Logistics
Specialists Temporary Employees Needed at each venue to help set up
the stage Peripheral Employees Two personal assistants Two
housekeepers Chef Personal Trainer Driver Chief Bodyguard
supervising six bodyguards. Full-time: clothing, make-up &
hairstyle
Slide 14
Leadership Style Very direct Detailed instructions Angry if
employees didnt follow exactly Sometimes Laissez-Faire Employees
dont know what to expect Communication is poor Although it was
exciting to work for a superstar the employees frequently
complained behind her back.
Slide 15
Types of Ownership Limited Liability Alejandra owns 98% Parents
& Ruth own 2%
Slide 16
Music Industry 2000 & Beyond Music Videos Online file
sharing widely available. Video hosting websites effectively end
profitability of music videos. No more royalties from TV. CD sales
fall with illegal downloads. Artists have to produce and upload
music videos to hosting sites. New technology, MP3 &
Smartphones impact CD sales. Expensive to do and do not generate
any direct revenue.
Slide 17
Economic downturn - 2008 Falling sales Artists had to transform
themselves Media Personalities Generate revenue Importance of
branded identities Beautiful mainstream American with Hispanic
passion and intensity 2009 Appeared in many above & below the
line promotions carefully selecting the products she endorsed.
Communicating with fans through social media websites
Slide 18
Primary & secondary market research showed this was a good
fit with LadyAs established brand. It reached her main target
market: teenage girls and young women. Production was outsourced to
an established manufacturer in Malaysia. Costs lower Quality
control a problem Batch production was used to enable a variety of
products could be made. LadyA had to pay 60% of the costs in
advance. Wholesaling and distribution also outsourced to a company
in Minnesota. By 2011, LadyA perfume and cosmetics were sold in a
nation-wide chain of department stores in the U.S.
Slide 19
Business Reorganization Alejandra continued to manage all of
her household employees personally. Appointed a Managing Director
and a Human Resources Manager to assist in workforce planning and
manage the rest of the business. She delegated some functions, but
stayed in close contact with frequent meetings w/the Managing
Director. BENEFIT: roles were clear, systems and procedures in
place and Alejandras employees complained less.
Slide 20
2012 Big Year!! Married Rafaele Eco, Italian investment banker
Purchased a large mansion requiring even more peripheral employees
Alejandra became more mature and business- oriented. Leadership
style became more consistent and paternalistic.
Slide 21
Next phase life & career Female stars in America struggle
to remain popular in their forties. modeling jobs are harder to get
girls and younger women typically prefer younger musicians and
stars selling youthfulness becomes more difficult as women grow
older LadyA hired business consultants who specialized in the
strategic direction of brands; presented her with options.
Alejandra in her late-30s
Slide 22
Option 1 Move into South American markets, which generally
accept older female musicians and film stars. Ever since Lady
Alejandra became LadyA, she had focused on the English-speaking
market in the US. Though she had some fans in Spanish-speaking
markets, she had never made them a priority. For those markets,
LadyA would start using the name Lady Alejandra again, conduct a
major concert tour in South America, and try to repeat her North
American career, building an increasingly powerful name through
music downloads (such as MP3s), concerts, films, product
endorsements, magazine covers, and also perfume and cosmetics.
Slide 23
Option 1 Move into South American markets, which generally
accept older female musicians and film stars. Ever since Lady
Alejandra became LadyA, she had focused on the English-speaking
market in the US. Though she had some fans in Spanish-speaking
markets, she had never made them a priority. For those markets,
LadyA would start using the name Lady Alejandra again, conduct a
major concert tour in South America, and try to repeat her North
American career, building an increasingly powerful name through
music downloads (such as MP3s), concerts, films, product
endorsements, magazine covers, and also perfume and cosmetics.
Slide 24
Option 2 Develop more products under the LadyA brand and
develop a global market. A possibility is a clothing range. Other
possible products include accessories such as LadyA shoes, LadyA
handbags, and LadyA lingerie. These products could be distributed
in the US through the same department stores selling her perfume
and cosmetics. Other distribution channels would be required for
the international market, with e-commerce offering many
opportunities. Family branding would be maintained.
Slide 25
Option 2 Develop more products under the LadyA brand and
develop a global market. A possibility is a clothing range. Other
possible products include accessories such as LadyA shoes, LadyA
handbags, and LadyA lingerie. These products could be distributed
in the US through the same department stores selling her perfume
and cosmetics. Other distribution channels would be required for
the international market, with e-commerce offering many
opportunities. Family branding would be maintained.
Slide 26
Option 3 Re-brand herself. With this strategy, LadyA would
actually lower her media profile for three years. During that time,
she would associate herself with a charitable cause, to tackle
issues such as malnutrition in developing countries, homelessness
in big cities, or international trafficking of children. She would
use her wealth to set up various non-profit organizations to
support the charitable cause, and utilize various techniques for
marketing non-profit organizations. She would then appear on
American television talk shows and do magazine interviews, building
a new brand identity based on the image of a strong, mature,
determined and compassionate woman. This would allow for new
revenue streams to be sought based on this new brand.
Slide 27
Option 3 Re-brand herself. With this strategy, LadyA would
actually lower her media profile for three years. During that time,
she would associate herself with a charitable cause, to tackle
issues such as malnutrition in developing countries, homelessness
in big cities, or international trafficking of children. She would
use her wealth to set up various non-profit organizations to
support the charitable cause, and utilize various techniques for
marketing non-profit organizations. She would then appear on
American television talk shows and do magazine interviews, building
a new brand identity based on the image of a strong, mature,
determined and compassionate woman. This would allow for new
revenue streams to be sought based on this new brand.