The agreement stated the West would bear the production cost and Gaga would be expansible for specific set elements-such as her piano-that were used only in her performance. The problems began when West famously declared at a televised relief concert for Hurricane Strain victims that “[U. S. President] George Bush doesn’t care about black people” and stormed the stage at 2006 MET Europe Music Award after failing to win the best video award, arguing that his video should have won because it “cost a million dollars”.
West Experienced a very public breakdown during the Vim’s on September 13, 2009. During 17-year-old singer-songwriter Taylor Swift acceptance beech for the best female video, West Jumped up on stage, Interrupted her acceptance speech, took the microphone from her, and began to protest In support of one of the other nominated evidences Beyond. His action left the crowd in attendance and millions of television viewers stunned. Although he publicly apologized for the incident shortly after, the storm around West didn’t die down.
And now, roughly a week after the event West had made a public announcement that he was taking a break from the music industry, sitting a number of personal reason, and officially withdrawing from the tour. Because the schedule for the Fame Kills Tour had been released 2 days after the Vamp and ticket had gone on sales, the process of refunding ticked holder would have to be set In motion. Lady Gaga ( B) On March 2011, Lady Gaga team decide to pursue a solo tour but option for smaller venues and designs regarding the launching of Saga’s new album, Born this way.
Gaga recorded a new album, titled Born This Way,while on the Monster Ball tour. They had opted for May 23, 2011 release date. Normally there is a three-or-four- month lead time, but announced the album release seven ground. On February, 011,Gaga released the album’s first single, also titled Born This Way. By March 2011, in its fourth week release, the song had already sold 1. 25 million copies (450. 000 in week one, 500. 000 in week two, and 300. 000 in week three) With the first single release behind them, carter and his Team’s attention to the album release, less than two and a half months away.
The problem arise whether to set an intensive marketing effort to support the Born This way album or set a more moderate, less wide-reaching approach and rely on positive word of mouth to propel the album. Product Information The Fame Kills tour according to the success of Lady Gaga It’s album named the fame. The 1st album launched In Canada on August 19, 2008. And then, Australia, a couple weeks later. The album was released in the U. S. On October 28, 2008 helped by the hot 100. The album debuted in 17th place and eventually reached number six on the billboard’s dance/ electronic album chart.
By September 2009 the fame had sold nearly 1,4 millions copies and its songs, led by Just dance with 4,5 million copies a combined 11 million unit in the U. S alone. After of her success in her first album in he summer 2009 Lady Gaga choose to collaborate with Kenya to increase his popularity because Kenya was the top 3 artist in 2008. In 2009, the music industry primarily relied on income from selling recorded music in the form of individual songs or albums and selling live music in the form of tickets to concerts. Recorded Music rhea recorded music business was an $8. Billion industry in the U. S. Physical sales had fallen, while digital sales had grown to be a $1. 6 billion share. Digital outlets such as Apple’s tunes and Amazon had been strong growth even Apple’s tunes had overtaken Walter to become the largest seller of recorded music. Popular artists tended to have an exclusive contract with a record company. Under the terms of such record contract, artists usually committed to creating four to six albums’ worth of music, while the label agreed to manufacture, distribute, and promote the music. Ginning artists could expect an advantages in the range of $200. 000 to $300. 000, Nile superstars sometimes received up-front fees of $1 million or more. In return for their efforts, record labels received a share of sales. A typical album contained 10 to 2 songs, was usually priced between $10 and $15, and provided a record with $3 to $4 in profit on an album. There are four large record companies dominated the global recorded music industries like Universal Music Group, Sony Music Entertainment, Warner Music Group, and MME Group.
Each had many different label’s name as an example universal covered the flagship label Interstice Gaffes A&M as well as The Island Deft Jam Music Group and Universal Mouton Republic Group, among others. Lady Gaga included in Streamline Records, The subsidiary of Universal. Live Music ay 2009, annual revenues from touring exceeded $ 4 billion in the U. S. Promoters played an important role in facilitating concerts. Promoters have a responsibility in exchange for a fee, they booked a concert venue, paid to advertise the concert, and supervised the overall running of the concert.
Promoters can operate locally, nationally, or internationally. To make touring arrangements largely depended on the caliber of the artist, there are three types of the artist such as. * New and niche artists usually had the choice to play either as a headliner in a club or as the opening act on an established artist’s tour. In return for their performance they can received a axed fee ranging from as little as $250 to as much as $5. 000 per night, or a share of admission revenues. * Mid-level artists had the power to headline small venues seating upwards of 1. 00 people to amphitheaters seating as many as 6. 000 to 8. 000 people. They can received $5. 000 a night in fixed fees for playing in the small venues and $50. 000 per night if they playing in amphitheaters. * High-profile artists in arenas-venues with the capacity of 12. 000 to 20. 000 people can received guarantees in the range of $100. 000 to $500. 000 per night, sometimes as high as $1. 000. 000. The artists typically received 85% of the net profits, with the promoters pocketing the remaining 15%.
Initially represented by Paradigm, Gaga had signed with William for their services, WOMEN received a percentages of Saga’s gross profits. The Role of a Manager Managers were tasked with successfully directing the career of an artist, their responsibility covered both overseeing an artist’s day-to-day business affairs and setting a long-term strategy for the artist’s professional activities, including recording music and touring. In return for their services, managers could received 15% of an artist’s earnings.
Competition situation Source: The Nielsen Company, 2010 rhea data above was based on sales from 12/29/2008 – 1/3/2010. As you can see from above, Lady Gaga has made it way at the top at digital album sales and digital artist. On the other side, she lose at the conventional version, physical album, although still could compete at fourth position and make it at fifth position at top ten selling artist. Lady gaga seem to hold control at the digital area, that could be build upon the social media effort on backbone, Twitter, and Youth.
Now for potential rival offerings eased on the same kind of songs they offered, there are Bribery Spears, Beyond, Kathy Perry, Madonna, Iranian, Gwen Stefan, and Christina Agiler as competitors. Beside the songs, they also have the same kind of styles, for example like Kathy Perry No once has a freak and alien like concept when she released E. T song, many of fans responded that she tries to copy Lady Saga’s style. At 2009 the strongest competitors based on sales are Black eyed peas, Taylor Swift, Michael Jackson, nonce, Bribery Spears, and else.
But as you can see from above she can make her place for at least the top 5 of sales. On the other side at 2011, she lose to Adele and Kathy Perry for Top ten selling artist and top ten selling digital artists, Lady Gaga herself was put at fourth and fifth place for each categories. Strength and Insaneness of Lady Gaga: Strength: * Brand name and unique product A strong brand name is a major strength of Lady Gaga, that gives Lady gaga to charge higher price for their products because consumers place additional value in the brand. Fashion Icon Lady Gaga has always a unique dress and sometimes controversial like dress from meat she wore at Vamp 2010 and she’s always been a trendsetter. Controversial songs love, sex, religion, money, drugs, identity, liberation, sexuality, freedom and individualism are the kind of topics in Lady Saga’s songs. Management * Strong Strong management can help Lady Gaga reach its potential by utilizing strength and eliminating weaknesses. * Most popular living person on Social media On March 2011, Gaga had around 8,5 million Twitter followers & 29 million backbone fans. Economies of scale rhea cost advantages that lady Gaga obtain due to size. The greater the volume the * vulgar Not all countries can accept Lady Saga’s style. For an example Indonesia, Malaysia, Korea banned Lady Gaga to held a concert there. * Controversial songs individualism topics are too sensitive for some people. * Too idealist Some of her ideas to set the concept for her tours or performance are seeking for perfection. But this could be a problem for the cost involved. Inefficiencies * Work an inefficient work environment means that Lady Gaga goods and services are not being utilize properly. Tarnished reputation A tarnish reputation can hurt Lady Gaga brand in the eyes of consumer * Weak Neck management increases business risk and reduce profits for Lady Gaga brand cause there are responsible for the health of the business. * Online Presence rhea online market is essential for displaying information and selling products. A “eek online presence can result in loss opportunities for Lady Gaga brand. * Weak Research and Development Neck R;D can slow Lady Gaga growth as competitors. Opportunities: * Innovation Greater innovation can help Lady Gaga to produce unique products and services that meet consumer’s needs. Fragmented market Fragmented markets provide many opportunities for Lady Gaga to expand and Increase market share. Fragmented markets have many small competitive who lack the cost advantages of the larger companies. * New Technology New technology help Lady Gaga to better meet the consumer’s needs with new and Improved products and services. Technology also builds competitive barriers against rivals. * Emerging markets Emerging markets are fast growing regions of the world that enable Lady Gaga to quickly expand. Loosening regulations Looser regulations allow Lady Gaga to perform in a way that is most advantages for them and their customers Threats: * Mature markets Mature markets are competitive. In order for lady Gaga to grow in a mature market, it has to increase market share, which is difficult and expensive. * Intense competition Intense competition can lower Lady Saga’s profit, because competitors can entice consumer away with superior product. * Government regulations Change the government rules and regulations can negatively affect Lady Gaga. * Change in tastes Consumers can change their tastes very quickly.
Lady Gaga depends on knowing Inch goods and services consumers want. * Political risks Politics can increase Lady Saga’s risk factor, because governments can quickly change Volatile costs mean Lady Gaga has to plan for scenarios where costs skyrocket. Cautious planning leads to development delays that can negatively affect Lady Saga’s Marketing Mix Case (A) Product : Anyone thinking lady gaga is original should Sistine to the lyrics, the key changes phrasing. Rather than original it’s an lamination of the best bitts leading artists like Madonna and Gwen Stefan blended with contemporary dance floor and club bass lines.
This isn’t wrong, it’s great marketing. Taking proven formulae and reinvesting them for defined audience is the art of great marketing which we see in corporate sectors with the likes of virgin successfully taking this approach when breaking into new markets. Copy what already works and give it your own personal flavor. That’s the gaga way. Price : Lady Gaga has only existed as a global brand for three years since her debut album the fame. So in Just three years how has she achieved such a wide commercial reach?
The answer lies with the combination of the marketing mix elements but crucially by balancing paid for music and especially downloads and video samples, shareable by her adoring fans and helping to spread the message far and wide. In commercial terms most organizations shy away from free because it costs, but with some careful planning and no little close of self belief, free samples of product and service can create great engagement with target customers and stimulate long term loyalty. Place : ay embracing the very latest online media lady gaga brand awareness has gone global in the blink of an eye.
But that’s too obvious and misses the real value of research and serving existing traditional media and outlets. By balancing TV and radio friendly promotions with traditional high street store merchandising and striation in regions with her largest base of fans (currently north gaga ensured there are no barriers to awareness of purchase and CDC and DVD’s leave the shelves in the hands of young and old alike Promotion : There is no denying that social media is at the core of lady saga’s success, “My name is Lady Gaga”, I”eve been on the music scene for years and I’m telling you, this is what’s next. ” 8. Million twitter followers and 29 million backbone fans by march 2011 and now with over 14 million twitter followers and 36 million backbone fans (growing at a rate of 1. Million/week) there has never been a better way of engaging on a one to one basic fans. As backbone positions itself at the “heart of the internet” any business Nether BIB or BBC should take a long hard look at itself and ensure it’s getting the best out the potential of social networking People: rhea legions of adoring super fans or as lady gaga calls them little monsters, are a demographic easily and quickly identifying with the gaga brand.
Being such a fan is lifestyle rather than simply a liking of the music. Clothes, style, outlook and beliefs form part of this global community hanging on every word from their idol. In and evolve in the future but also increases the risk in getting it wrong, alienating of failing to deliver to promise. A similar evolution is happening for Apple as it rapidly transitions from a specialists creative industry tool to a mainstream technology leader Process: rhea rest of marketing mix pales into relative insignificance when you consider the impact of the live lady gaga experience.
In the last three years nobody in the music industry has worked harder, toured longer or dedicated their life to their passion in such a compelling and all consuming way. The whole customer experience of the fame monster tour followed back to back by the monster ball tour through this period has ensured that Lady gaga is constantly in the spotlight, always accessible relevant to her fans and continuously sneezing the moment and maximizing profit through what potentially could still be a short lifespan of her product.
The lesson businesses and marketers must learn from this is make no assumptions you will always be here and seize the moment whilst you can Physical Evidence : If by reading this case, you are sitting there thinking that’s all very well but Lady Gaga s a musician and entertainer and what has that go to do with me ? Well by following the basic rules of the extended marketing mix she has bee revenues and profits over the last three years that most of us could only dream of. The monster Ball tour grosses $227. Million, making it one of the highest-grossing concert tours of all time and the highest-grossing for a debut headlining artist. I think that could be the physical evidence that the extended marketing mix really does work. Case (B) phrasing. Rather than original it’s an lamination of the best bits leading artists audio friendly promotions with traditional high street store merchandising and purchase and CDC and DVD’s leave the shelves in the hands of young and old alike. IS Lady Gaga”, I”eve been on the music scene for years and I’m telling you, this is what’s best out the potential of social networking.
And also she has brand partnerships to increase her popularity, such as partnerships with interstice chairman olivine and legendary hip hop producer DRP. Dare, beasts by DRP. Dare was line of specialist high end music headphones, and lady gaga was Join with MAC Cosmetics feature MAC Cosmetics’ Viva Glam advertising campaign to support AIDS Fund. People: demographic easily and quickly identifying with the gaga brand. Being such a fan is a commercial terms this has a huge potential influence on how the brand WI develop failing to deliver to promise.
Process: impact of the live lady gaga experience. In the last three years nobody in the music industry has worked harder, toured longer or dedicated their life to their passion in fame monster album followed back to back by the monster ball tour through this period has ensured that Lady gaga is constantly in the spotlight, always sibilance relevant to her fans and continuously sneezing the moment and maximizing profit through what potentially could still be a short lifespan of her product.
And next with her album Born this Way. So, The lesson businesses and marketers must learn from this is make no assumptions you will always be here and sixtieth moment whilst you can Physical Evidence : Nell by following the basic rules of the extended marketing mix she has been revenues and profits over the last three years that most of us could only dream of. Unit sales for the fame and the fame mentor in U. S (march 2011) 30. 42 million , making it one of the highest-grossing album for a debut headlining artist.
I think that could be the physical evidence that the extended marketing mix really does work Problem Definition For the case (A) “hat to do next for The Fame Kills Tour which should be held on the arena tour after swankiest withdraws from this tour , whether to continue with the arena tour but go even cancel any tour plans ? For the case (B) Nat is the best launch strategy for the newest album born this way, whether to pursue as wide a roll as possible, with an intensive marketing effort or more iterate, less-reaching and therefore less costly, approach, and rely on positive Nor of mouth to propel the album ?