Discuss the micro and macro forces that are affecting the music industry. Answer : Factors affecting the music industry include the following: ; Consumers have created a new value curve for the music industry ; Online file sharing and downloading where copyright holders are bypassed has put the traditional business model of the music industry in doubt ; Competition for consumers time, attention and money is increasing ; A vibrant world class music scene has enabled some
Icelandic bands to benefit from online marketing (which may entirely take place among their fans) ; Packing music CDC with extra features may not be enough to stem the decline of CD sales New entrants, easy to use online music stores which offer flexible pricing structure and quality downloads that can be played on a variety of devices, are In an excellent position to exploit the turmoil and eventually redefine the way music is marketed, purchased and enjoyed. This is a threat to the established music retailers and labels. . Based on this analysis, what strategic options would you recommend for both USIA publishers and music retailers in the current marketing environment? Answer: Strategic Options l) Attract non-users The majority of publicity and promotion the company undertakes utilizes word-of- mouth marketing and other free publicity such as free giveaways at public events. They may wish to take a more aggressive approach, with a new media campaign that is specifically aimed at attracting new users.
Whilst it has been noted that the doughnut industry is generally in decline, They may wish to try and grow the category again, or at least stem the decline and gain greater market share of the smaller arrest. ‘I) Increase Purchase Levels Amongst Existing Customers This is harder to achieve since the company’s current clientele have been observed to be consuming doughnuts in smaller quantities. It would be hard for the company to reverse what Is becoming an important nationwide trend of healthy eating through marketing strategy. A more appropriate option would be to try and gain greater consumption from existing customers through new products.
They have been noted for the fierce brand loyalty customers exhibit, and their staunch belief that They are the very best doughnut one can buy. They wish to build n that by adjusting it’s prices accordingly. 3. Discuss the advantages and disadvantages associated with online distribution from a music label’s perspective. Answer: Over the last ten years, the Internet has evolved from Just web pages to e-mail, to online gaming, to viewing sport and film previews, and to buying and downloading music online. The Internet has now become one of the music industry’s greatest markets, estimated to reach over 25% of sales in five years.
This may be true, yet the Internet is also one of the music Industries greatest enemies. For some years now online shopping has been available o anyone with a credit card and an Internet connection. E-commerce retailers such as Amazon. Com sell everything from garden tools, to C. Ad’s and mint-discs. It is only in the last couple years however, that online shopping has taken off. Before this the public and businesses alike had not been taking full advantage of this phenomenal asset, which has been proven to save companies millions.
It was only with the creation of Windows 98 and other Internet programs that people were sure that their credit card numbers and personal details could not be viewed by another person, or hacked’. Once this huge hurdle was overcome, the way we used the Internet and the effect it had on the music industry had changed forever. CASE: Ill Milliner in Brazil: marketing strategies for low-income customers Question: 1 . Describe the consumer behavior differences among laundry products’ customers in Brazil. What market segments exists? Answer : .
In the NEE, only 28 per cent of households own a washing machine versus 57 per cent in the SE. Women in the NEE scrub clothes in a washbasin or sink using bars of laundry soap, a process that requires intense and sustained effort. They then ad bleach to remove tough stains and only a little detergent powder in the end, primarily to make the clothes smell good. In the SE, the process is similar to European or North American standards. Women mix powder detergent and softener in a Gnashing machine and use laundry soap and bleach only to remove the toughest stains.
The penetration and usage of detergent powder and laundry soap is the same in the NEE and the SE (97 per cent). However, north-easterners use a little less than south-easterners. Many women in the NEE view washing clothes as one of the pleasurable routine activities of their week. This is because they often do their Gnashing in a public laundry, river or pond where they meet and chat with their friends. In the SE, in contrast, most women wash clothes alone at home. They perceive washing laundry as a chore and are primarily interested in ways to improve the convenience of the process. 2.
Should Milliner bring out a new brand or use one of its existing brands to target the north-eastern Brazilian market? Answer : Milliner should use different products in the existing brands. Milliner could produce a product comparable to Campfire, its cheapest product, but would it liver the benefits that low-income consumers wanted? Alternatively, Milliner could use Mineral’s formula but it might be too expensive for low-income consumers. If they could eliminate some ingredients, Milliner’s scientists could develop a third formula that would cost about 10 per cent more than Campfires formula.
The difficulty would be in determining which attributes to eliminate, which to retain and Inch, if any would actually need to be improved relative to both existing brands. One solution might be to launch multiple types and sizes. 3. How should the brand be positioned in the marketplace and within the Milliner Emily of brands? Answer : In regular detergent markets Milliner had established that the most effective allocation of communication expenditure was 70 cent above-the-line (media advertising) and 30 per cent below-the-line (trade promotions, events, point- of- purchase marketing).
The advantages of using primarily media advertising are its low cost per contact and high reach because almost all Brazilian, irrespective of income, are avid television watchers. One alternative would be to use 70 per cent below-the- line communication. At IIS$O. 05 per keg, this plan would require only one-third of the cost of a traditional Milliner communication plan. On the other hand, it would lower the reach of communication, increase the cost of per contact, and make a simultaneous launch in all north-eastern cities more difficult to organize. 1 . How does Ryan’s pricing strategy account for its successful performance to date?
Would you suggest any changes to Ryan’ pricing approach? Why/why not? Answer: An integral part of the low fares strategy is revenue enhancement through ancillary activities, increasingly used to subsidize airfares in order to improve Ryan arising to compensate for falls in fare yields. These include on-board sales, charter flights, travel reservations and insurance, car rentals, in-flight television advertising, and advertising outside its air-craft, whereby a corporate sponsor pays to paint an aircraft, whereby a corporate sponsor pays to paint an aircraft with its logo.
Advertising on Ryan’s popular website also provides ancillary income. Hence, I Mould not suggest any change in its current pricing strategy. Of course Ryan’s response may be to try to upgrade its service on the basis that it cannot drop its Ares any lower, but the problem is that when you have spent so long forging a strategy and culture that places cost reduction way above customer service that avenue is essentially denied to you. As the old saying has it, You can’t make a silk purse from a sows ear. Cazenovia may be saying ‘Buy Ryan’.
My advice, for what it’s North, is ‘Sell Ryan’. 2. Is the ‘no-fares’ strategy a useful approach for Ryan in the short term? In the long term? Answer: No fares strategy is not useful for Ryan in the short term as well as in the long term. In order for a customer experience to be branded the organization must eave intended to differentiate primarily on the basis of the customer experience and designed this to deliver value in and of itself. Whilst the Ryan experience is distinctive, it has not been designed to differentiate the airline in a positive way from other airlines.
It is more a by-product of Ryan’s chosen strategy of price order for a brand to continue to grow it has to have a loyal following of customers. There has to be a positive emotional connection between the customer and the brand in order for there to be an enduring relationship. We are much more likely to main loyal to the brands that we love 3. Do the issues facing Ryan threaten its low-fares model? Answer : With 66 million customers and brand recognition rocketing, for Ryan the sky is the limit. As long as we’re willing to pay the full’ price, Ryan will continue as one of Rupee’s most distinctive brands.
Perhaps paving the way for others to adopt the Ryan model, rather than the Southwest Airlines model. Travelers need to be aware of the hidden cost of low fares. Puerile charges and lack of transparency are the tip of the iceberg. There’s deliberate taunting of customers, dirty tricks, bending f the law and lip service being paid to consumer groups. The result is the downgrading of the whole experience of flying to ‘cattle class’ caves LOGO: the toy industry changes 1 . Why did LOGO encounter serious economic difficulties in the late asses? S founder, following many years of success the LOGO culture had become ‘inward looking and ‘complacent’ and had failed to keep pace with the changes taking place in the toy market. This lack of environmental sensitivity was evident in the US market n 2003, where LOGO failed to predict demand for its Binnacle fugues, resulting in two f its best-selling products from this range being out of stock in the run-up to Christmas. It appeared nothing had been learned from the previous year, when also In the run-up to Christmas the much sought-after Hogwash’s Castle sets were out of stock across the UK. . Conduct a SOOT analysis of LOGO and identify the company’s main sources of advantage. Answer : Weaknesses ; falling sales ; falling market share, ; Job losses and management reshuffles Threats ; Kids getting older younger ; Intensifying competition from the electronic and games market. ; Fickleness of young consumers Power of the retail sector Opportunities & Strengths ; back-to-basics strategy ; to create a story-based, multi-channel ; diversifying its brand ; children’s growing appetite for video games 3.
Critically evaluate the LOGO turnaround strategy. Key if LOGO is to ward off the many challenges it still faces. It is still involved in many license agreements, making it vulnerable to this cyclical market. Its back-to-basics strategy has been widely praised but it remains to be seen if LOGO can balance this Ninth its increasing activity in software. With children’s growing appetite for video Ames with a more violent content, can LOGO satisfy this target group while still remaining true to its wholesome ‘play well’ brand values?
Will LOGO succeed in its attempts to target young girls and its desire to target a more adult audience? Will it succeed in its attempts to reduce costs and improve efficiencies? Will CEO Jorge Big Inductors succeed where his predecessors have failed? Only in the fullness of time Nail these questions be answered but one thing is for sure: no brand, no matter how powerful, can afford to become complacent in an increasingly competitive business environment.