Sony BMW Music Entertainment, the second largest record music company in the world. This study is about the Sony Bum’s Market Entry into Second Life, as Virtual World of Second Life becomes increasingly popular. It started as a little AD online community In 2003 developed into a sophisticated virtual world with more than 4 million users from around the globe and with an economy larger than that of a small real-world country. As part of its search for new revenue streams in an Industry that has frequently failed to keep pace with its customers, Sony BMW wants to Second Life, ND presumably to facilitate shared music experiences.
This marketing plan will help the company in achieving its strategic marketing objectives. Sony Bum’s Market Entry into Second Life: Mission Statement: “To experience the Joy of advancing and applying technology for the benefit of the public. To be leader In virtual world. ” External Environmental Analysis The external review can be done using PESTLE analysis, Porter’s five forces and by analyzing the competitors and the customers. Macro Environmental Analysis (PESTLE) Macro environment analysis is done for both country and virtual world.
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Political: USA is politically stable country and present government is working to improve the condition of business. Government is providing subsidies on some businesses as well. Such conditions are good for business and will encourage new investors and will benefit Sony BMW. In virtual world there Is no political government . Let’s a community which connect different people. Such conditions are good for business and will encourage new investors. If we look at Sony BMW politically they don’t have any pressure.
Economic: During recent recession many companies have turned down. The condition for doing genuineness is getting very tough. It was estimated that the annual sales of Sony BMW has dropped down due to the current climate. Second Life was an economy of its own. Linden Lab encouraged Second Life start-ups and supported companies to open subsidiaries, e. G. By recommending competent developers. There were many ways of doing business. Technological: adopted them self to new technology and but ways of approaching to people are Changing very fast.
Music sale is going down day by day, people don’t want to spend money on buying music, and instead they prefer to copy it from someone or get it free. With the establishment of the Internet, the personal computer considerably Changed the way people in all parts of the world consumed entertainment % content including music. For Sony BMW this implied a constant transformation of the way its core products were distributed and consumed even though the centre of the business – artists and their music – remained the same. Sony BMW was forced to adapt to these challenges by creating new revenue streams through innovations.
Even though Sony Bum’s strong position within the music video business and the Internet represented one step in the adaptation process of the modified music easiness, further ideas had to be developed and implemented to keep track with the pace of change. Environmental: Sony BMW adheres with all the environment rules and regulations. Legal: There were certain rules every “inhabitant” had to agree to. Members had to follow the 6 Second Life rules, known as the “The Big Six” A violation of these behavioral standards resulted in suspension or eviction from the community.
However, there Newer no legal regulations, laws or courts Sony BMW mission is promote music and to prevent all types of piracy within the music industry. For that purpose it’s finding new Nays of promoting music.. It is also important to follow the Code of Ethics recommended by industry while doing this business for safe practices rhea Market: Online virtual worlds are rapidly becoming recognized as an important new channel for marketing and brand-building. However, the nature of the channel is likely to be quite different to other channels, including the Web. Denominated “world”, it had become more and more popular.
Especially since late 2005, the growth rate had skyrocket and the virtual population reached more than 4 million users from all over the globe in late 2006. An increasing public awareness followed, accompanied by many reports in the international press and television. Second Life is Just one in a series of moves into new venues and perhaps toward new models. The addition of the capability to stream music in Second Life was largely responsible for the explosion in its now-robust social scene, but the number of avatars able to occupy a simulation is a technical hurdle that currently limits SSL as a mass experience medium.
However, the possibilities of new licensing/purchasing models are intriguing. Music attached to our in-world objects and islands and animations and events. It will be interesting to see if Sony, MME and the others that will follow them into Second Life will let us play with the music there. Second Life was not the first example for this type of platform, but certainly the g one which received the highest media response and thus attracted most public interest. Competition: business. Sony BMW and create the second largest music group Worldwide, the other main competitors are Polygraph, Universal Music, Warner Music and MME .
The remaining four music groups on the market – referred to as the “big four” – accounted for approximately 72% of the overall worldwide music business. With an increase in file sharing and music sales plummeting in recent years, labels and organizations have had to change their strategies and the way they work with artists. STOW ANALYSIS: STOW Analysts Strengths: ; They have established themselves as one of the few in this specialist market ; They are focusing on individual needs. ; Provide high quality products. ; Second Life is undoubtedly the pre-eminent met averse platform. ; Second life gives new plat form to offer products. Second Life also has the advantage of being able to attract substantial media attention. Its operations have been covered by the BBC, CNN, BBC and every other major news network ; Probably the most unique characteristic of Second Life is that, during its short history, it was able to capture demographics that are normally difficult to obtain in on-line digital communities Insaneness: ; Its wide popularity has lead to congestion and frequent lags in the system. ; Continued price hikes have made participation beyond a basic account which means reach to attract new customers will become less.
Opportunities: ; There is huge potential in providing these products on second life platform. Already have more than 4 million people. Which gives huge plate form to attract people? ; Second Life presents many opportunities for entrepreneurs, developers, businesses, and non-profit organizations alike. ; Second Life in good path towards becoming the internet in AD. ; For those who are considering on setting up shop in Second Life, piracy should be ; It is also important to realize that business transactions and primary concern. Racketing should be handled differently in Second Life. Business models that work in the real world does not automatically succeed in-world by translating it directly. He biggest threat to content providers is the inability to back up work off-world. Internal Marketing Audit Operating Results before investing in second life, it is important to consider the operating results.. Financial aspects of such an investment had to be evaluated, taking potential risks onto account. The case study shows that total residents who have right to log in the second life is 4,181 ,900.
The numbers are increasing on daily basis which can provide good market for Sony BMW. Strategic Issues Analysis rhea main issue can be initial cost of investment and risk of investment . Promoting Sony BMW on virtual world is not easy task because its a new plat form , so promotion should be in different way Some big companies are facing difficulties in promoting them self to new virtual world. 5. Marketing Objectives rhea marketing objective of Sony BMW is to increase its revenue by 2011 and to create strong brand image in second life and real life.
Strategic Thrust Strategic thrust determines the type of products or services to be sold in particular Markets and further helps in defining the future direction of the business. Nations product/market growth matrix is a framework used by businesses to determine appropriate strategies for growth with respect to its products and market. Sony BMW can use Market Development strategy where the company identifies and develop new market segment for the current products. Market development strategies are used by organizations when they seek to take their current product or technology portfolio in to a new market.
These new markets can be in the form new geographical territories or new segments in an existing larger market. They are also developing new or modified products to the existing market to gain more business from its existing customers. Strategic Objectives Growth – Share Matrix tool, helps managers set appropriate product strategies. As each product category has a distinguished strategic objective, product line analysis also helps in rationalizing and providing direction to the product portfolio. Easiness Strategy through Improved Marketing Mix: rhea key purpose of an organization is to make profit.
As most goods and services can be purchased from a number of companies operating in the industry, it becomes imperative for an organization to satisfy customer needs better than its nearest competitors to ensure profitability. Sony BMW is considered as high perceived benefits and allow it to transcend from being a niche player to a more mass market level with increased revenues. This position will also require continuous investment for adaptation of innovative technologies into the industrial market and hence create differentiation. Core Strategy Core strategy can be defined by identifying its core competencies and its key factor for success. It is identified that Sony BMW wants to expand their business through new Market. The opportunities lie in the development and commercialism’s of a reducible range of company-manufactured products in second life. Target Market(s) Sony BMW should choose its market target by carefully weighing the market attractiveness and evaluating the company’s current or potential strengths in serving that market.
Sony BMW should understand that the entry barriers are very low at the moment and they should be prepared for the high levels of competition in the future as it is bound to attract high levels of competition and should be ready to defend its position. Sony BMW should also consider its financial resources as it needs a absentia investment to set up new product line. The main market which is Identified is the people who are in second life. The budding fake world is not only attracting a lot more people, it is taking on a real world twist: big business interests are intruding on digital utopia.
The Second Life online service is fast becoming a three-dimensional test bed for corporate marketers, including Sony BMW Music Entertainment, Sun Microsystems, Ionians, Aids/Rebook, Toyota and Stardom Hotels. For businesses, these early forays into virtual worlds could be the next reorient in the blurring of advertising and entertainment. Competitive Advantage Beginning a promotional venture in a virtual world is still a relatively inexpensive proposition compared with the millions spent on other media.
In Second Life, a company like Sony BMW or its advertising agency could buy an “island” for a one-time fee of $1 ,250 and a monthly rate of $195 a month. Second Life is the largest and best for example, Just began Virtual Laguna Beach, where fans of its show. Good way of promoting a new album with virtual appearances. Marketing Mix Decisions Product In product Song BMW can include following things rhea Shop rhea Shop provides music fans a place to spend their hard earned Linden Dollars.
Outfit your avatar with new gear, purchase posters for your house or buy tracks from [Our favorite artists. Artist Lounge East Artist Lounge East offers sample music and videos from Sony Bum’s hip-hop and R artists. Listen to music from artists such as Justine Timberline, Outcast, Bow Wow and DIM. Legacy Lounge rhea Legacy Artist Lounge allows players to view hundreds of images of classic artists. rhea Club Enjoy the Second Life nightlife at The Club. Listen to streaming music, socialize and dance the night away with other Second Lifers in this two story dance floor.
The Loft Loosen up and soak in the soft ambiance at The Loft. The Loft is a great place for a laid-back and intimate conversation. Apartment Grab a seat and admire the art in this trendy apartment complex. The Lab Head off the island to The Lab where you can experiment with different artists. Look around the lab and you might Just discover your next favorite artist from the new up and coming ones Promotion This is one of the challenges Sony BMW will face in the market By introducing live reference by various artist in the second life.
The strategic marketing planning process is not only about devising marketing strategies and positioning plans but also about effective implementation. [pick] rhea above matrix shows the various strategy and implementation combinations and the possible business outcomes. As implementation of any strategy is associated with change, an effective implementation plan should consider cultivation of change and TTS speed. Sony BMW objective is to increase its revenue and to create new loyal customers. A well established mechanism is paramount for monitoring a strategy Implementation. Organization:
No marketing implementation is complete without considering the marketing organization, which provides the context of implementation. Sony BMW Music Entertainment was a global recorded music company, which was a 50-50 Joint denture between the Sony Corporation of America and Bertelsmann GAG. The denture’s successor, the again-active Sony Music Entertainment, is 100% owned by the Sony Corporation of America. Chief executive is the head of company and than its further divided into different departments . Marketing department is further divided into sales and promotion teams Control
Control is essential in marketing planning as it provides a review of current results to Analyses whether the marketing objectives are being achieved or not, providing marketing managers the opportunity to tweak their strategy for achievement of the goal. Sony BMW should put control measures in place to monitor its business. It should monitor closely the sales of their products and also should be studying the competitors’ activities. Its financial performance has to be monitored closely and should ensure that the short term strategies are achieved and also corrective measures should be prepared if these are not met.