Hello, my name is lolo_cleary!Watch this thread
I'm interested in... Business
My study level is... BTEC Nationals
Information regarding the business in question and its current place in the market
Summarise what this proposal is going to look at?
Consider any potential challenges / drawbacks which will have to be overcome?
What are the USP’s of the business
Where about in the product life-cycle is it?
What pricing strategy is the most likely in the market
What promotional strategies are typically in use?
Summarise what this proposal is going to look at
Age group – 18-24 years, an interesting age group given that they likely grew up buying digital copies of music rather than physical ones, unlike older generations. One in four people in the 18-24 demographic said they had purchased a vinyl record in the last year, with a good number of those indicating they purchase a new vinyl each month. 83% of the age group has purchased some sort of physical media in the past year (DVDs, books, CDs, records), which is much higher than the 76% average across all age groups. -http://fortune.com/2017/11/13/young-...-than-boomers/.
Lonely middle age man – who are possibly bearded, kids have probably left home, no longer on speaking terms with wife,
More than 3.2 million records were sold in 2016, a rise of 53% on last year and the higgest number since 1991. - https://www.theguardian.com/music/20...rips-streaming
Cost - The production budget was £18,000 and this covered the pre-production process of storyboarding the concept, hire of film crew, location hire and our own internal CGI production costs. There was a cost of licensed audio from the publisher and master rights owner which was an additional £6,000.
Total production spend = £24,000.
The advertising spend is estimated to be around £10,000 of ad spend backed the final campaign.
Timescale - This is broken down roughly as follows -
Storyboarding and creative concept approval – 2 weeks.
Pre shoot planning (crew & shooting kit hire, filming location hire) - 1 week
Shot day – 1 day (vinyl pressing plant)
Shot day – 1 day (HMV store)
Audio search and licensing – 1 week
Picture cut editing – 1 week
Post production CGI ( 3d Animations, colour grading and audio layback) - 3 week
Marketing Mix - Price – Price Skimming – Price inelastic4 – around £20 on average Place – HMV physical stores (128 in 20155) / HMV online (transactions increased by 67% and revenue increased by 76%6) Core strength of the strategy is the mixed use of placement, something that many competitors to HMV are not doing.