Studio Description:

We are starting a new venture that will attract the youth of Pakistan. Main aim of out studio is to provide

quality music recording to young aspiring musician and those who are probably unable to afford the

regular studio secession fees.

The name of Our Studio is “Beats” we are providing artificial and live music recording with best of its

quality and targeting every musician specially youth because they have urge to demonstrate their talent.

“Beats” is in its start-up stage we are going to mix music with technology and live secession and bring up

the hidden talent which can boost up the confidence to provide self-expression and style in the life of our

customers

Best recording and quality services is our first priority and for this purpose our main focus is to provide

live secession rather then artificial music and we are also giving choice to our customer of selecting to

whom they wanted to play for them, this is also our competitive advantage

Studio History:

The idea to start it as a business came from a problem which we were observing from a very long time

like there are a lot studios which provide quality services in this field but their cost is very high and only

rich people can afford it. Now a days everyone has urge to record their own track whether they can afford

it or not, but there are no such music studios which can fulfill their desire of becoming a singer. Mostly

student are interested in showing their talents but they don’t have that much money to spend on this.

There are no such studios which can fulfill the desires of those who have urge to show their talent just

because the studios which are right now available in Pakistan, they are really expensive and they are not

facilitating these people who have this aptitude. By visualizing the whole scenario given above makes us

to think that this discrimination must be terminated so we decided to start it as a business because mostly

people are interested in this. Our basic motive is to provide best services to young aspiring musician and

those who are probably unable to afford the regular studio secession fees

Core strategy

1. Mission Vision Statement:

Mission statement

Beat studio’s mission is to provide youngster with a reasonable platform upon which they can build and

pursue their musical careers and get known in the world of music art.

Vision Statement

We aim to provide our customers with the best quality of music and services ensuring customer

satisfaction by encouraging two factors: HONOR AND VERACITY.

2. Differentiating Point:

Our differentiating point is that we are cost leader which mean we are giving low cost to our customers so

that they can easily pay for their desires. Our prices are relatively low then our competitors. We have

variety of packages which starts from Rs.10000/- to onward where our competitors are charging

Rs.30000/- per recording.

3. Product /market scope:

As mentioned earlier, we would be targeting the youth of Pakistan. The youth comprises of 60.3% of the

total population so it will provide us the opportunity to attract a large number of consumers that could

avail our services. It would be up to us to create an image in the minds of the consumer to influence them

to facilitate themselves with our services.

Industry Attractiveness:

The industry of music industry is in its maturity stage already but the innovation that we are bringing-up

in the form of technology is providing an opportunity for us to customize existing product will help us to

prosper, flourish and gain a significant market share.

Industry structure:

The industry structure helps in determining the profit potential of a particular music industry. The average

rate of return can be affected by the structure of the music industry. The profit potential in the music

studio is quite high as this sector is quite active in Pakistan that ensures the availability of our required

product in good quality at quite a reasonable rate. Secondly, the manufacturing costs are not too high;

these low costs can help us secure a reasonable profit by offering the recording music to our consumers at

affordable prices this will help us attain a good position in the market with a significant profit.

PEST Analysis

1. Political Analysis:

Taxation:

The most important factor could be taxation for political which is controlled by government, it will affect

music industry’s incomes, as well as consumer preferences as the more the VAT on music the more the

price of music.

Public expenditure controls:

When People’s expenditure being controlled which lead to CD sales decline, and it will affect the whole

music industry profit at the same time.

Government stability

Government stability is positive to music industry, as for any business it will harm the total business

procedure and policies, if there is no stable platform for business.

2. Economical Analysis:

Interest and inflation rates

Inflation can affect consumer spending, though based on demographic but it also can influence greater

performance to music industry if targeted to specifically to the generation who gained from change of

Interest and inflation rates

Consumer confidence

If the consumer’s confidence is high it means they are ready to buy and actually make lot of purchases.

Music is always one of the things that they will keep among their first priority list for that spending.

Economic growth prospects

When the country’s economy increases, the whole business environment expands as a whole. So more

choice of suppliers as well as increased consumer base.

3. Social-cultural Analysis:

Values in society

The different culture can enjoy different music, so the musical industry should change their music style

by different values in society.

Changing lifestyles

The most dramatic recent change in ‘buying behavior’ has been found to be among the younger

generation. There is also the issue of increasing substitute goods from different industries, such as video

games and DVD that compete against the music industry as a whole.

4. Technological Analysis

New product potential

New product has potential, creating new competition, also new way of reaching customers and delivering

product

Changing technology

The future of the music industry is unclear as new technology is changing the way in which consumers

search for and obtain new and old favorite music. As older methods of music exploitation prove to be

increasingly ineffective, major entertainment companies are changing their platform for finding, growing,

and ultimately selling artists.

Feasibility Analysis

1. Product/service feasibility

Music is passion for most of the people and it is a trend now to become a part of this field. Now days

every single person wants to become a singer or composer, we have taken this trend into our account and

launched a music studio with the latest musical technology and brought a new level of entertainment to

the interested people. Especially student will get thrilled about this music studio as it will give them a

platform to get them self recognized in the music industry and it will also solve the problems that are

related to finance because our prices are very low as compare to other music studio. Now a day’s most of

talented singer is looking for such platform so, there an immense chance for the acceptability of our music

studio in the music industry.

Music studios are very expensive that’s why a lot of people can not afford it specially students but we are

launching this studio to give them the same services at lower prices which they can get in any of this

expensive studios. It is also a platform for the talented musician who can play their musical instruments

and get them self renowned.

We will launch our music studio next month because for this we don’t have to wait for some specific time

as music is a trend forever. Several of people are interested in making their own songs or to sing the

covers but they can not afford the high price of studio that’s why we are giving them an opportunity to

fulfill their dreams because are prices are comparatively low and we give them best quality.

We have also carried out a survey in different universities just taking a view from student about our

studio. We also asked that how much they can pay for the recording. Most of the students said that they

are willing to pay 10000rs for this so; we have started our range from 10000rs to onward. Through this

survey we identify that student will happily pay at least 10000rs for their recordings.

2. Industry feasibility:

The music industry in Pakistan is at its growth stage already but because of our low rates and innovative

sound system we will soon achieve this maturity level and will retain our place in the music industry gain

a major market share.

The minimum price of lowest quality recording is 30000rs but we will provide the best quality to our

customer in just 10000rs.Our studio is for those who can not pay that much for the recordings. Mostly

those people who cannot afford to pay that much prices are welcome in our studio where they can get best

quality with comparatively lower rates. It is also a platform for the talented musician who can play their

musical instruments and get them self famous

Target Market:

Target market was the most important thing in launching our studio. We are basically targeting university

and college students as interested and talented youngsters have urge to do something in music field that’s

why our main focus is youth

3. Organizational feasibility:

We are 4 equal partners:

Hasina sadiq khan

(Management)

Asad siddique

(Marketing Manager)

Saad ali

(Operations Manager)(Helper)

Anam mustafa

(Finance Manager)

Hasina Sadiq Khan CEO(Management)

Asad Siddique Marketing Manager

Saad Ali Operations Manager (Audio engineer)

Anam Mustafa Finance Manager

Hsina sadiq khan is an MBA student and has experience in managing the affairs and scheduling the

things. She will be responsible for the scheduling the jamming and recoding secession of our customers.

Asad Siddique is an MBA student and has experience of marketing. Being a marketing manager he will

try to promote our studio through online advertising, Face book, and radio and by word of mouth. He will

also approach those customers who are not aware of such cost effective studio in their locality which

gives them best quality of sound with comparatively low rates.

Saad Ali is also an MBA student and will be responsible for operations i.e. how we can minimize cost,

which locations and customer will best suits us and how to facilitate them with our innovative sound

recordings.

Anum Mustafa is also an MBA student and has experience of 1.5 years in ideas a society of UCP as a

president. She is responsible for all the financials of our business and also fined investors who can finance

us so we can expand our business and will try to bring investors.

Porter’s Five Forces Model:

A complete analysis of the profit potential of a particular industry can be determined by conducting a

“Competitive Forces Model” analysis:.

1. Bargaining power of Suppliers:

Music producer for artists and internet services providers including website management companies are

the suppliers for Electric and Music Industries. For signing of Artists case, the bargaining power can be

high as it is very difficult to sell for a record label. In contrast, Web developer case, the bargaining power

can be low as the competition in the market is growing promptly.

2. Bargaining power of Customers:

The bargaining power of customers is getting higher due to the fact that competition and online piracy is

increasing. To cope with this force, the studio has to use promotions such as discounts and draws in order

to attract customers.

3. Threat of New Entrants:

Amid the digital music market era, the threat of new entrants always remains at a high level which can

provide similar services like us. To consider the entrance into the digital music market of the high ranking

online brands such as Amazon and eBay with the reputable brands such as Walmart, the competitive field

is increasingly being threatened.

4. Threat of Substitutes:

The substitute for music industry is pirated music which offer free of charge music. Due to the fact that

the choice of a customer to purchase and to download music is remaining; the threat of substitutes is very

high.

5. Industry Rivalry:

It is high competitive in digital music industry as there are a huge number of competitors. Each player in

the market tries to attract customers by offering various promotions; therefore, there is high threat for

EMI.

After using the five forces analysis for EMI, it found that the ability to generate high profits in the digital

music industry is difficult. Alternatively, there is the probability to penetrate the market by lower margins

in order to generate scale based profits.

Key success factors

The key success factors in the EMI are the:

Price

Service differentiation

We will be focusing on each one of them to sustain in the market.

1) Price:

When people will feel that they are having better and quality services than what they are actually paying

then they will feel satisfied.

2) Service differentiation:

We are providing a unique service which is not present in the market at the moment that is we have

demos of all the registered musicians and we give choice to our customer to choose whoever they want

for them to play.

Competitor analysis

There are several music studios in Pakistan but the studios in Lahore are our competitors such as

SACHAL MUSIC, GM STUDIOS, MAANN STUDIOS, XS STUDIOS, WALNUT STUDIOS. These

are our main competitor which are also providing good services but in high prices and they are not giving

any choice to the customer to facilitate them. When we will enter in the market we will provide low cost

recording to our customer with best quality which is our competitive advantage and also we have demos

of all the registered musicians and we give choice to our customer to choose whoever they want for them

to play which will provide a reasonable platform upon which they can build and pursue their musical

careers and get known in the world of music art.

Positioning

Tagline of Company

“Beat the strings”

The tagline of our studio is beat the strings, it show the passion for the music. It will create an urge for the

in the mind of customers who are interested in making their dreams come true in the world of music art.

Market Analysis

1. Product/Service

We have introduced a music studio which is a platform for the musicians where we will be recording

sound tracks for our customers. We have different packages regarding sound recording and we also

providing freedom of choice to our customer for selecting the musician they want. Musician are registered

and we have their demos in which they had played different instruments so when a customer wants to

record a track, he or she have choice to select the musician to whom they want for them to play. Aim of

our studio is not to gather money it’s just providing customer with quality services.

2. Price

We have different packages for recordings as I said earlier that our focus is not to earn profit it’s just to

facilitate our customer with quality services. The price starts from R.S. 10000, which is affordable for

every person who have urge to record their covers or sound tracks. We are going to charge a reasonable

price in the rest of the packages so that everyone would be tempted to record the music.

3. Placement

We will start our studio in “Johar Town” as it is the main hub for the universities. We have chosen this

location because we are also targeting student s and they will have an easy access to our studio

4. Promotion:

We will promote our studio through e-marketing and will make our page on Facebook, and will also

promote our studio by pasting information regarding studio in different universities. Customer feedback is

really important for us that are why we will also ask for their feedbacks from our customers so that we

may know how we are doing our work.

Target market

Target market is the most important thing in launching a new product. There are a lot of studios but their

prices are really expensive and students and most of the people cannot afford it. We are basically

targeting young generation as they are very much in to music now days and also comprised of 60.3% of

the population and youth are music lovers, that’s why our main focus is on solving their problem.

Value chain

a) Human Resource Management:

In HRM department we have four young and energetic people who are fully devoted to their assigned

duties. Hsina sadiq khan has experience in managing the affairs and scheduling the things. Asad Siddique

has experience of marketing. Being a marketing manager he will try to promote our studio through online

advertising, Facebook, radio and by word of mouth. Saad Ali will be responsible for operations i.e. how

we can minimize cost, which locations and customer will best suits us and how to facilitate them with

our innovative sound recordings. Anam Mustafa has experience of 1.5 years in ideas a society of UCP as

a president. She is responsible for all the financials of our business.

b) Infrastructure

The Infrastructure of Beat’s studio is fascinating and charming. Our studio is located in H3, Johar town,

Lahore. Ideal colour schemes, pleasurable lighting , comfortable sitting arrangement, trained staff and

their proper division of work, art interior beautiful and wooden rooms for the jamming and recording

sessions.

Strategic process :

Input Process Output

Word of mouth

Social media Monday-Thursday Final product

Jamming sessions In form of CD, DVD, USB or Social media

Friday-Saturday Advertisement

Customer Recording days

Strategic Assets

1. Strategic Resources:

We are using best quality of mixer and sound recorder so that we can facilitate our customer with

the maximum range. Infrastructure of our business is versatile as each recording session i.e.

jamming and sound recording is scheduled so there will be no ambiguity regarding jamming or

recordings. Musicians have their own musical instruments with whom we made contact per

recordings so basically we are using musicians musical instruments it will also reduce our cost

and can increase the productivity and passion in the mind of musician because most of the

musician have attachment to their instruments

2. Competitive advantage:

Beats studio’s competitive advantage relies in our ability to position as a strategic ally with our

customers. The company’s reputation of being trustworthy and reliable will be a key factor by building a

business based on long standing relationship with our clients. The longer the relationship, the more we

will help our clients understand what we offer them and why they need it. Our audio engineer will

establish strong relationships with clients to ensure that they are satisfied because it aids us in generating

future business. Our organization operates under a business philosophy that specialized customer service

is the best way to attract more clients. We are also giving choice to our customer of selecting to whom

they wanted to play for them; this is also our competitive advantage.

Beats studios also recognize the opportunity to provide jamming sessions to young aspiring adults. This

approach tends to get the attention of local young aspiring musicians which is the best way to satisfy our

customers in the long term and bring the best out of clients.

3. Core competency

Studio which are our competitors, providing good services but in high prices i.e Rs.30000/- per recording

and they are not giving any choice to the customer to facilitate them. When we will enter in the market we

will provide low cost recording to our customers that starts from Rs.10000/- but with best quality which is

our competitive advantage and also we have demos of all the registered musicians and we give choice to

our customer to choose whoever they want for them to play which will provide a reasonable platform

upon which they can build and pursue their musical careers and get known in the world of music art.

Partnership network

Outsourcing/ Insourcing :

We are outsourcing musician who can play any kind of musical instrument. We are

providing a unique service which is not present in the market at the moment that is we

have demos of all the registered musicians and we give choice to our customer to choose

whoever they want for them to play. In this way we are giving value proposition for two

customer first one is the singer who wants to sing and the other one are the musicia n who

are offering their services for a price

Customer interface

Support:

Beats studio has a healthy relationship with the customers. One of the most

important elements of customer interface is the target market that who exactly are

the customers of the studio. We are basically targeting university and college students

as interested and talented youngsters have urge to do something in music field that’s why

our main focus is youth this is the only reason for a studio to exist is its customers.

Our musician are very important source for conveying the information to others, it

also include the channel we are using for interacting to our customers i.e. social

media and pamphlets and word of mouth. Our studio generally get benefit from

having a clear target market because of the specifically of the targeted customers, it

can focuses on its marketing and promotional campaign and it can build up profound

core competencies pertaining to its specific market place.

Pricing:

We have set low prices to gain a large maker segment. Our competitor which are also

providing good services but in high prices and they are not giving any choice to the

customer to facilitate them. We are giving value proposition for two customer first one is

the singer who wants to sing and the other one are the musician who are offering their

services for a price. Musicians who are playing instruments are hired on contract basis

are getting Rs2000/- per recording and there are 4 recordings a week that means that they

can possibly earn Rs32000/- per month from us.

Pricing Packages

We have variety of pricing packages for our customers so they can avail and choose according to their

budget, which is convenient for them. We are offering 5 different packages to our customers. Packages

which we are offering are as follows.

Package Price Instrument

Starter Rs7000/- The person will play for itself

Economical Rs10000/- Guitar

Terbuka/Drum

Bronze Rs15000/- Guitar

Drum

Violin/Piano

Si lver Rs20000/- Guitar

Drum

Piano

Bass guitar/Violin

Pl atinum Rs25000/- Guitar

Bass guitar

Violin

Piano

Drum/Terbuka

Tornado Rs30000Rs/- Guitar

Bass guitar

Electric guitar

Piano

Cello

Drum/Terbuka

VRIO

Valuable

Beats studio has strong relationships between singers and its musicians that are the most valuable

resources of Beats studio. No large amount of investment is required for this purpose but it needs

efforts to build up the brand name for a positive impression in its potential customers’ mind, so

do the relationship with the musician is very important. Procuring the resources is time

consuming and these resources cannot be purchased they are earned through devotion, dedication

and determination.

Rare

The differentiate services that are available in Beats studio are not easy to be found in its

competitors which make a rare resource for the studio. We are also giving choice to our customer

of selecting to whom they wanted to play for them, this is also our competitive advantage

However, and the resources can only help the studio outperform the local competitors that doing

the business in the same.

Costly to Imitate

Beats studio is doing their business on two differentiated points i.e. low cost and giving choice

to our customer of selecting to whom they wanted to play for them. It is a very costly process for

the other competitors but the our studio is based on these two factors which are imitable. If

someone tries to copy our points it will take a longer period for them to do so.

Organizing

Beats studio reputation of being trustworthy and reliable will be a key factor by building a

business based on long standing relationship with our clients. All the departments which are HR

department, marketing department, finance department and audio engineer are low cost and

performing their assigned duties very effectively.

Core competency:

Studio which are our competitors, providing good services but in high prices i.e Rs.30000/- per

recording and they are not giving any choice to the customer to facilitate them. When we will enter in the market we will provide low cost recording to our customers that starts from Rs.10000/- but with best quality which is our competitive advantage and also we have demos of

all the registered musicians and we give choice to our customer to choose whoever they want for

them to play which will provide a reasonable platform upon which they can build and pursue their musical careers and get known in the world of music art.