Business Plan
Executive Summary
This paper set out to explain the Best Entertainment Company. The company aims at being the best music records company by producing quality products at fair prices. It is based in New York, and it intends to attract popular artist. It also aims to support upcoming musicians.
The company has a team of qualified personnel who will ensure that the set goals are achieved. The customer analysis is set to understand the customers, segment customers and improve the product to suit the needs of customer
The competitor analysis help the company understand the strengths, weaknesses, threats and opportunities of its competitors. This will help the company develop strategies to increase its market share in the market.
Introduction
Business Snapshot
Best Entertainment Company will be based in New York. It acquires and develops musical intellectual properties with an intention of distributing albums within the market. It was formed by John Smith and Laura Heisting. It is involved in production of all types of music jazz, pop, gospel, urban, rock, and blues. The company finds artist, make records and distribute the records and market them. It intends to establish music stores in different areas.
Business Description
Best Entertainment Company is a well established entertainment company which will supply profitable, high quality, audio and visual entertainment both in local and international market. Best believes in producing quality music that suits all listeners. It has qualified personnel who are supposed to ensure that the objectives of the company are met.
Best intends to use more money in production than in marketing. It has set out to employ the best music producers to ensure the highest quality products are produced. It has three internal subdivisions; Best Music, Best Video, and Best Ancillary. It sells recorded music in CDs, cassettes and vinyl albums. This is a major source of revenue. It also earns revenue from concert promotions.
Most of the music and videos that Best produces and owns will create valuable short-term revenue streams. Owning and controlling the patent rights of albums will enable the company to grow its music catalogue hence make more profits in the future.
The main objective is to bring in new and innovative musicians through partnership of music production companies, promotional firms and musicians. It also intends to supply the market with quality music. In addition, the company intends to raise capital for a new project to support upcoming musicians. The company aims at producing quality music, which will be sold at affordable prices.
Barriers to entry
There are few barriers to entry in the music industry. One of the barriers to entry is the risk posed by piracy. Piracy is a threat to long time survival of a business in the music industry. Piracy reduces the sales of the music records and this discourages investment into the new market. The high cost associated with production and marketing is a barrier to entry. There is a lot of competition in the music industry, and for a company to be successful it has carry out extensive advertising, which is very expensive.
Situational Analysis
Bests Personnel
The top management includes members who came together to form the Best; John Smith and Laura Hestings. All the members in the Board of Directors are highly qualified, and there is no doubt the company will be leading in the music industry in the future. In addition, a qualified, experienced and talented team has been selected to operate. It has more than sixty employees in the production, market, artist and repertoire and artist promotion departments. It has signed contracts with more than forty artists.
Customer Analysis
The business targets the youth because they enjoy listening to music. Most of young people hobby is to listening to music hence the targeted consumers. It is producing different types of music since not everyone enjoys the same type of music. In addition, the business also targets Christians by producing the gospel music.
It is a business to consumer since transactions are carried out between the business and the end users. It has retail shops that sell its products directly to the consumer. It supplies the music albums to consumers directly.
Customers Segment
The company will segment the customers on the basis of age, place and gender. Most young people enjoy listening to rock and pop while the old people enjoy listening to jazz and souls. The difference in taste and preference due to age gives the business an opportunity to segment the market. In urban areas, people are willing to pay more for the product than in the rural areas. In the urban areas, people have access to information hence the company must ensure that its music is up to date. The gender also affects the type of music one listens to. Most women enjoy listening to blues and rock while on the other hand, men enjoy listening to hip pop.
Market Analysis
Best Entertainment aims at targeting two market segments record stores and consumers at live performances. Being the main sources of income the company will give these two segments the best. The company will ensure that it signs in the new artist to ensure that its revenue increase. The artist should be popular to attract more customers. The company will also record with the new artist who are talented.
Market Segment
Record stores segment will mainly involve selling of CDs and videos to consumers. The artist will be expected to develop their music to ensure that the CDs will sell. The company will also ensure that the CDs are of the best quality and produced in large numbers to ensure that supply is adequate. This segment will be used to sell compilation CDs.
The consumers at live concerts segment aims at selling the CDs at a live performance. The targeted consumers attend such concerts, and if they enjoy listening to a certain song they will purchase the CD. The company will ensure that it promotes its music at live performances mostly at the local level.
Competitor Analysis
The business will face competition from major record labels; Universal, Sony, EMI and Warner music group. The actions of these major companies are important because they influence the industry.
Most of the products sold by these companies are of high quality and satisfy the needs of consumers. The products are also available in the recording stores and easily available to consumers. The companies charge a high price for their products. The most common method used to advertise is media. Product placement in movies is also another way used to advertise by the major recording labels.
The company aims to attract promising artist to ensure that it increases its market share through increased sales. It will also improve its musical stores and ensure that they are located in all areas.
Value Propositions
In the music industry, customers will purchase music recorded by well-established artist. The company must ensure that the artist is producing good music, which the customers will enjoy listening to. The artist will also be encouraged to improve their popularity to attract more customers. Popularity of the artist will increase the sales leading to an increase in profits. In addition, it will enable the company to charge a high price since consumers will still purchase the products.
The high price charged by other competing companies is the major problems the customers are facing. Most customer complained about high prices in the research carried out. Best company intends to use digital technology to cut on production cost and charge a lower price. The company also intends to establish different stores in different parts of the country to ensure that customers are able to purchase the favorite CDs with ease.
Marketing Plan
Best Entertainment aims to carry out an extensive marketing campaign that will ensure an increase in sale. The marketing objectives include; establishing a good rapport with music distributors and developing website where customers can get all information. It also intends to reach out to all its customers in different places and ensuring there is a constant supply of its product.
Marketing Strategies
The company will outsource marketing services from a qualified marketing company. It will make use of most the advertising methods, but the internet will be the main mode since most of the targeted consumers have access to the internet. Direct advertising will be used to promote sound artists.
The company intends to open stores in many parts of the countries, but most will be concentrated in the urban areas. Most of the customers live in the in the urban areas. The stores will sell all types of music hence all different consumers can get the type they enjoy listening to.
The location of the business will not be affected by customers segment. The customers will get the products through distribution. The business will be located in a place that is convenient for, most of the artist. It will be located in New York to ensure that it can attract the best artist.
Customer Relationships
The business intends to maintain a good relationship with its customers. Networking is one of the ways it will use to reach most of its customers who are situated in other countries. It has established an email where customers’ feedbacks and complaints are handled; to maintain a good relationship with local customers it is advertising extensively, and to reward its loyal customers the company will stay in touch and invite them to special events and keep updating them.
Revenue Streams
The company will assess the production cost to ensure that the price set is affordable to most of the consumers. It will also assess the competitors’ price to ensure that the set price will increase the market share.
The CDs are sold by other companies. The music industry is very competitive hence it is good to consider the moves made the other companies in the market. Customers will expect that the price lies within the prices charged by other firms. Most of customers in urban areas are willing to pay a higher price than customers at rural areas.
The company plans to make money through the sale of CDs. This is the main source of revenue. The price of CDs will depend on the popularity of the artist. Price is secondary to popularity of an artist because consumers are willing to pay high prices for popular artist. On the other hand, customers are not willing to pay a high price for music produced by less popular artist. It also intends to raise revenue through the sale of videos and albums. In addition, the company intends to earn revenue from concert promotion.
The revenue model is the best because the company will be able to make profits which are the objective of any business. The price will also influence the market share hence it should be fair to customers.
References
Entrepreneur Media. (2005, May 1). 5 Key Ways to Build Customer Relationships. Retrieved October 25, 2013, from http://www.entrepreneur.com/article/77686
Ameen, S. (2013). Difference Between B2B and B2C Explained Thoroughly. Retrieved October 25, 2013, from http://community.tradekey.com/article-34/Difference_Between_B2B_and_B2C_Explained_Thoroughly.html
Barnes, C., Blake, H., & David, P. (2009). Creating and Delivering Your Value Proposition: Managing Customer Experience for Profit. United Kingdom: Kogan Publishers.
Felten, E. (2005, February 25). How Competitive is the Record Industry? A Natural Experiment. Retrieved October 25, 2013, from https://freedom-to-tinker.com/blog/felten/how-competitive-record-industry-natural-experiment/
Job-centered community for freelance writers. (2007). CCM Music Recording Company -- STEP Analysis, SWOT Analysis, Five Forces. Retrieved October 25, 2013, from http://www.writers-united.org/node/687
Rouse, M. (2007). Customer Segmentation. Retrieved October 25, 2013, from http://searchcrm.techtarget.com/customer-segmentation
