The Company Has Identified Two Market Segments, Which Will Form The Main Targeted Business Plan Example

Published: 2021-06-21 23:41:59
essay essay

Category: Business, Taxes

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

1.1 Mission Statement
The Border Southerners, a State of California “Y” Corporation, spotlights unconventional music, entertainment typically overshadowed by mainstream ideologies. It seeks to satisfy the shared experience of The Urban Trendsetter and Generation Y. it compensates its employee fairly, a fair return to shareholders, and a fair royalty to artists.
1.2 Goals
- Realize a steady flow of revenue from record sales, merchandising, digital sales, licensing and live performances
1.3 Key to Success
- Emphasis on creating a constant flow of high products related to quality songs and music
- Ensure prompt delivery of products and services, effective management of financials, monitoring of marketing and promotional budgets, and develop successful growth strategies
- Harness on the presence of internet and build a foundation for a recognizable web brand
1.4 Financial Requirements
The Border Southerners (hereafter referred to as The Company) has plans to infuse a capital of $100,000 to help continue establishing the foundation already established by the company. This money will go towards meeting the costs associated with creating a new record label, marketing, promotion, and working capital necessary to establish and grow The Company into a successful record label company. The Company plans to repay this loan within a period of three years. The plan includes to immediately starting paying the loan interest at a rate of 5% or $500 per month. Additional information detailing these procedures is outline throughout this plan.
2.0 Company Summary
The company is currently working the single “Reincarnated”, published originally by Jim Copes, and definitely, these people have a point to drive home. Fans always get excited as they admire the artistic contend found in the music. The company produces music with modern original beats, blended to create a viral hip-hop sound that traverses the cultural boundaries and has general appeal. In March 2012, Border Southerners received its first ringtone deal with Orange Mobile for “Reincarnated”, which is currently available through all major cell phone carriers as well as VIO Mobile.
3.0 Marketing Plan
The Company will target two primary market segments, which include record stores and consumers at live events. Since these are the main source of income, they will be the main targets for the company. The initial focus of The Company will be aimed at establishing presence within California, enough to enable sign up brands, which form the key to generating revenue. Signing up brands will drive marketing activities that the company will undertake in order to generate revenue in the future.
3.1 Market Segmentation
3.1.1 Record retailers
Record retailers retail CDs to the end customers and they typically move the greatest number of CDs. It takes time for record stores to move a substantial quantity. As such, the bands must develop a name through the compilation of CD releases as well as through live performances to entice record stores to sell their merchandise. The company will use this segment to eventually sell the compilation CD and band CDs after initial stages.
3.1.2 Consumers at live shows
This group of customers attend live music shows in their local areas and often buy the CDs while at the show enjoying music. It is more than impulse buying because they hear the music, get impressed and then decide to buy the compilation CD from the band.
3.2 Target Market Segment Strategy
Border Southerners has chosen these two segments because they are the main source of revenue. Border Southerners will remain on their core business activities focusing on developing visibility of the record label, however, the viability of the business is CD sales while consumers at live shows and retail stores constitute the source of revenue. The industry is intimate with most participants in the industry within a region know each other. With this in mind, networking will constitute the most efficient means of communication.
3.3 Record Label Business Analysis
Generally, the record label industry when considered on the light of general sales is a highly concentrated national industry. There exist many international companies controlling larger portion of the company. As such, this is the promotion/distribution channel that bands seeking to break through into national excellence and significant record sales must concentrate on.
Additional, there are ‘Indie” labels, which are larger regional companies, but not have the same capacity as a national company. These labels can be significantly large, only that they do not conduct business in orthodox ways. Majority of Indie labels have the capability to support national acts who are professional musicians.
Another segment is local record labels that typically target non-professional musicians. These musicians have day jobs that occupy their time in addition to music. Majority of regional record labels must concentrate on a specific city such as Border Southerners in Fullerton, California, it is often difficult to survive on such a small audience. Without doubt, it is a viable business model that needs a strategic focus to make ends meet.
3.3.1 Competition and buying patterns
- National record label – they include Sony, Atlantic Records, and BMG labels among others. Their main concern is CD sales because the more they sell the more profit they make. Bands do not depend on individual attention , but on mass appeal. They key is commercialization.
- Indie labels – Examples include Ropeadope, Sub Pop, and Ozone. These firms are also concerned with CD sales, however tend to go for bands with less commercial appeal and rip more from the niche of that band. The main shortfall of Indie labels is that they are not able to offer specialized attention because they pursue a broad market. They are basically small with the main concern of selling more CDs with less commercial means.
- Regional labels – this a conglomerate of all other labels of different types participating in the space. Some are similar to Border Southerners where CD sales are key, but viewed more holistically by concentrating o the health and popularity of the band while recognizing that if this is not addressed, CD sales will fall. Additionally, there are many different types of record labels that represent a large number of bands within an area, deficient of the reach enjoyed by large firms, and not caring much about the bands themselves, just like larger labels.
3.4 SWOT Analysis
5.0 Strategy and Implementation Summary
Border Southerners will leverage their competitive advantage of low band count and low overhead to ensure intimate specialized care and promotion from lucky few bands that it represents. The marketing strategy used by Border Southerners will concentrate on developing extensive web of networks to assist the visibility of their label as well as developing visibility for brands it represents. Border Southerners will assume an extremely active role in the local music scene as an efficient way of plugging their bands. Also, Border Southerners will pursue aggressive sales strategy with the aim of getting many record stores as possible to help in sales of CDs in addition to live shows as another outlet for CDs.
5.1 Competitive Edge
The company plans to employ a two-way competitive edge. The first is to have low overhead. The office for Border Southerners will be in Hillary’s home. There is no immediate need for offices, as work can be conducted from home office. In addition, unlike many record labels, there will be no recording studio to support. The company will save significant cost by renting studio as needed.
Border Southerners will also achieve their competitive edge by maintaining a low band count. Border Southerners will work with five or les bands under contract simultaneously. While this will reduce the ability of Border Southerners to realize large record sales associated with bands under different label, it will allow Border Southerners to offer the bands it represents with specialized and intimate care. This is unique to the industry as most record labels have many different bands under contract.
Border Southerners has recognized the opportunity to divert from the status quo and operate under the business philosophy that specialized customer attention and care in the best way to make money in the long term. This is the best way to make money with the limited marketing resources. This approach of specialized care has proved successful in athlete representation field. Two cyclists, supporting the same trend within the athlete representation industry, have recently adopted this approach. Both Kevin Livingston and Lance Armstrong opted for a contract that only represent a couple of athletes in contrast to the norm by choosing a large company with many athletes.
5.2 Marketing Strategy
Border Southerners is aware of the fact that the value of the label intrinsically dependent on their reputation within the music community. Border Southerners plans to portray itself as a premier label, creating a compelling reason for bands to sign up with them. Border Southerners plans to develop visibility in the industry by releasing various compilation of CDs. The aim of releasing these CDs is to spread the word about Border Southerners. This will help in acquiring their initial bands. Border Southerners will achieve these through aggressive networking with who is who in the Fullerton music scene.
After attracting a few bands, the next marketing strategy will be to plug the bands as much as possible. This will also be done by leveraging networking contacts. One effective way of doing this is to arrange for many live shows as much as possible. Performing many shows is important for Border Southerners in generating demand.
5.3 Sales Strategy
The initial sales will be slow and it is forecasted that the first two compilation CDs will be given out free. Sales revenue is anticipated after the second compilation. Once bands are signed, Border Southerners’ legitimacy will be developed and signed to start to generate revenue on both compilation as well as band CDs. Sales will be generated through online website CD sales. Margins from online sales are considerable higher because it eliminates retailers in the distribution channel.
Another source of revenue will be contract buyout. There is a possibility for a band to receive an offer from larger record labels for national distribution. There will be a buyout contract in all of the band’s contracts that will allow larger label to buyout the contract.
Management Summary
Hillary Angelo first ventured into music after college. After graduating with a Bachelor of Arts degree, Hillary and band mates of California 20s decided to form their own record label to support a regional tour. The aim of the label was for personal satisfaction and self-promotion. Their intention was not to make profit but took it as an opportunity to support their tour with a CD. The tour lasted for a month.
Hillary earned a law degree from California Law School in Fullerton, California. She did her intern at the Department of Justice in the summer of her first and second year, but was unable to secure a job after graduation.
It is at this point that she decided that she could turn her passion for music into a job and started a record label. She decided to solicit for funds from her husband.
Personnel Plan
The primary employee will be Hillary.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!


We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read