By determining and analyzing our customer base we can develop Spottily aggregates music from right holders, distributes It to consumers through stoop and mobile software platforms and monotones both through a free ad- funded service and a paid subscription service. This two tier system targets different consumers and overall provides a service which caters to a broad range. The purpose of this proposal is to outline a strategy for targeting the identified segment group of 18 – 24 year olds through service design and strategic promotion. Introduction Music Is rapidly evolving In the way people listen to, share and experience It. The area of digital music has greatly changed the way In which music is sourced and distributed. As music Is Increasingly becoming tattletales, It Is difficult for the original distributors to keep up with this ever changing landscape and stay current, relevant and ultimately economically viable. In a rapidly changing marketplace determining target market segments and creating a competitive differentiation is essential.

Background Digital music distribution services grew out of the unauthorized peer-to-peer file sharing phenomenon of the late sass. This caused a great shift in the way music was shared and listened to from piracy and tunes downloading to on-demand streaming from Youth and others. While physical music product markets are declining rapidly, online digital music markets have been rapidly growing, however the majority of these channels of music consumption generate little to no money for the artists. Digital music can be divided into two supermarkets download and streaming.

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Digital revenue, however the growth rate of the streaming market is higher than the growth rate of the digital music download markets . This means it is a rapidly growing market Ninth more people are using this format to access music. Spottily is a digital music streaming service that allows customers to listen legally to USIA without individually purchasing or downloading each song. Launched in Sweden in October 2008 Spottily currently has over 24 million users, over 6 million of Noon are paying subscribers. Specify’s model aims to engage listeners to once again realism this lost value.

By converting them from other poorly monitored platforms to spottily – two tier system?.. Reduce rate of piracy and allow artists to generate far greater royalties whilst giving listeners more value per listen and far greater convenience. Service is split into three different product strategies . Changing from music as a product to music as a service. Nat is their mission statement and aim http://press. spottily. Com/AU/2013/04/16/spottily-launches-in-8-new- markets-today/ Brand Diagnosis Market Segments No is listening – target market rough development and expansion Spottily used geographic segmentation.

This Nas done as each country had different barriers in terms of licensing and overall acceptance of this new medium. It is now available in 28 markets with the most recent being in Latin America with Mexico, and Asia with Hong Kong, Malaysia, and Singapore. The largest markets are in Sweden and the US, however there is major opportunities in booming developing markets in Asia (China/Japan), India and Africa ;specially with growing markets in smart phones and applications. He target audience for Spottily is as broad and far reaching as there are different genres and music tastes. The tables below show the distribution of current Spottily users. Segmenting the consumer market as it is can direct who is listening ere largest market for digital music streaming is tech as’. N. Y young people under the age of 35. However, as has been shown through the large influx of 55+ aged Backbone bickerers, older generations are becoming more linked and active in the digital Nor.

Being able to identify these distinct segments will lead to better adoptions of the Spottily service model to suit cater to their needs. It is very important to understand the segmentation of the digital market because new targeting will be needed to continue growth further into mainstream audiences. These broad segments can be segmented into four categories; Alliance listeners, Core Enthusiasts, Active Fans, and Indies Followers. Target Segments 18- 24 year olds Actively involvement Students and in part time/full-time work

Can have mainstream or niche music taste Outgoing Like DID discovery Adventurous Interactive software Tech-sway – Early tech adopters Sociable Looking to be at the forefront of technology music and social median found people: what do the have in common who are they? Come up with three clear words which epitomes the target segment and what their needs are towards the product. Market share and competition Market share – current market leader in Australia 2012 BPI figures show music streaming was worth 13. MM Positioning and Consistency SOOT analysis/ Positioning Statement

Marketing objectives – pricing statement easiness/marketing strategies Specifying an Opportunity So how did Spottily, launched by a Swedish startup in an industry rife with more recognizable and existing services, rise to the forefront of the digital music world? By combining an ingenious branding campaign that focused on exclusivity as a means of drawing interest, as well as designing a business model that could appease both digital music lovers and the recording industry that is attempting to win them back, Spottily immediately has risen to the top of the crop of digital music providers.

There are challenges that Spottily faces as it attempts to break into a competitive market. Aside from established competitors, including Pandora as well as long-term industry stalwarts like Apple’s tunes Store and new rivals like Amazon and Google, Spottily also faces the same oppositional recording industry that has repeatedly attacked rival digital music services with litigation and bad press.

However, by designing a business model that ensures revenue streams for music publishers, as Nell as the same open-source options for program users that drew them in flocks to earlier (illegal) offerings like Anapest and Limier, Spottily has managed to bridge the gap and provide a service that remains both a legal and attractive option for millions around the globe to access their favorite artists and songs. He S. W. O. T. Analysts Strengths Free legal music Personalized/Targeted playbills Pricing Schemes Service Features Forming Partnerships Entrepreneurial development program Limited offline use for non-premium users Advertising can be a deterrent Allowing free use discourages users from paying for premium dad press from some artists and the music industry Current lack of profitability

Opportunities Threats Potential partnerships Increasing credibility within the music industry Shares values with music industry against piracy Increased accessibility Expansion in global markets teats by Dry Drew – recently acquired by Apple Piracy methods such as Pirate Bay and Greenshank Pandora Individuals within the music industry and certain artists Shawn Parker (creator of Anapest) being on the award of Directors may tarnish brand image ere two tier model built on a paid and advertising funded structure allows Spottily to guarantee revenue for music publishers and providers, while still allowing users to lid and craft music libraries that access their favorite artists and preferred musical genres Unparalleled mobile and desktop app design provides perhaps the most user-friendly digital music service on the market A brain and investment trust consisting of proven start-up veterans like Sean Parker ensures faith in the management behind the service Ninth hundreds of millions of music fans around the world, market cap potential remains extraordinarily high for the service Insaneness catalogs on Spottily service Nile Spottily does ensure revenue for publishers and artists, the returns are not usually close to those produced through the traditional brick-and-mortar store and physical album sales Spottily insistence on premium subscriptions for full mobile services and access to files limits its appeal to consumers used to accessing free music (and who can still access free music through torrent downloads) With the continued evolution of mobile technology, live concert video streams and performance broadcasts remain an area of potential expansion Spottily ability to appease music creators and producers allows them an advantage on illegal services potentially threatened with shutdown reheats

Established competitors like the tunes Store, as well as new forays by Amazon and Google, ensure long-term challenges for user preference Revenue and profits remain low, as the service attempts to both appease consumers acclimated to free music while also remaining viable as a profitable business model Revenue questions still leave open the threat for litigation from spurned artists or aspects of the recording industry ere Future of Digital Music As the digital music industry continues to adapt and evolve to increasingly attract consumers who previously relied on illegal or unreliable options for their digital USIA needs, services like Spottily continue to face pressure to find a business model that both appeases consumers, as well as returns a profit for investors.

While Spottily has, over the past few years, proven to be both an innovative and adaptive brand in regards to both the service itself, as well as the company’s branding, the question of “ho will be the name that introduces the new era of digital music sharing remains open. While Spottily model remains perhaps the most effective option of appeasing all of the different actors in the digital music realm, the future remains an uncertain tat. However, in the present, we as entrepreneurs can glean a number of clear takeaways from Spottily rise to the top of the pack. From their initial release campaign, which asked users to provide emails to the company in order to be ‘invited” to enjoy the service, Spottily has latched onto the philosophy of exclusivity that helped inspire the meteoric rise of other digital-based services like Backbone and Google Plus.

This notion of making a service seem “cool” or “exclusive” through marketing tricks like this is something we can take back to our own ventures. While he service eventually expanded to being available to anyone (as was expected from the outset), building this type of hype behind a new venture can help ensure greater media coverage and market saturation from the initiation of the business. Which of AS wouldn’t want that for our business? Objectives Description Promotional Devices Frequency Part 3: Body of the presentation Define the need in the market Describe market size, growth, trends and maturity Provide industry and market segment information – market challenges Nat market segment(s) are served by the company? Nat is the company’s potential in the market?

Describe the direct (competing product/service) for the business Describe the specific strengths, weaknesses and opportunities related to the competition what is the business’ competitive advantage? NH will customers buy the product/service over the competition? How does your product/service differentiate itself from the competition? How will you sell your product or service (distributors, internet)? How will the company generate revenue for its product or service? How will you access customers? (advertising/promotions) Nat customer support will be needed? Part 4: Conclusion – give a brief summary of your key points. Objective Obtain a credible standpoint industry, artists, consumers iris is vital to the business’ viability. Without artist and industry support spottily faces an ongoing uphill battle.

Spottily Create features which enable further penetration of the service into everyday life Target consumers Convert from free to premium Spottily Partnerships Spottily has partnered with a number of well-known brands in different industries, linking their names and creating mutually beneficial networks which tie in with the key objectives. Backbone Spottily has partnered with the world’s largest social media platform Backbone in an effort to facilitate users accessing, discovering and sharing music. The seamless Backbone integration was a giant step in bring music back to a truly social, shared experience. Made the service a truly social site where people can view playbills and favorites of their friends, make recommendations and share newly discovered artists and songs. This fits directly within the model of creating a social – targets the market segment.