1. Project details
• Company’s name: Up & Down records
• Place: Madrid
• Estimated launch date: 01/01/2011
• Kind of company: Limited Company
• Description of business activity: We will constitute a record company (a company that makes and sells musical recordings) that will offer an opportunity to young musiciansby helping to launch them into the music industry.
• Estimated staff needed: (see organizational chart) Page 5.
2. Description of products and services
We thought of a service company using human labor as the main input because this way, we will have more capacity of action with the 100 000 € of investment. Our philosophy is based on offering our infrastructure to everyonethat needs help with their musical project. Also offering all the services needed to achieve their record launching. We will be focusing on indie-rock music because although nationally it is not well recognized, worldwide is having a great success.
3. Market Study (Segmentation/ Target Market)
We decided to carry out a concentrated market segmentation in order to direct amarketing mix to a single market segment; a group of individuals within a market that share common characteristics.
After doing our market research, we decided to limit our target market to people between 18 and 26 years old as we are looking for young talents, however, always accepting exceptions.
We have chosen this age range as there are many youngsters with great musical potentialthat do not have the means of being successful by themselves. And that is exactly what Up & Down does.
In order to recruit new talents, our agreements with “Mushi”, escuela de musica y baile, and “21st Century Music”, best musical schools in Spain, will allow us to follow closely these young talents.
Furthermore, another way to spot these youngsters is by attending to musicfestivals around Spain were emerging talents can be found.
Key market research Results
To implement the marketing concept, we first obtained information about our potential customers so that we are able not only to determine customer’s wants but also how well are those wants being satisfied by current competitors. Therefore, we collected our information with a questionnaire and we found out thatthe key results for our launch were:
4. Marketing plan:
A positioning Statement:
“To music lovers, between 18 and 26 years old, Up & down records is a new concept at music industry, which will offer a great musical experience and will keep you curious about our bands”.
Marketing mix strategy:
What we offer is a newconsumer service; we are giving new talented indie-rock young musicians the opportunity to be known in the music world. We have chosen this type of music because nationally indie-rock hasn’t had a chance to emerge while it’s being very successful around the world.
Once we recruit them, they will be able to choose whether to record their songs on vinyl CDs (is an analog sound storage mediumconsisting of a flat disc with an inscribed, modulated spiral groove) or to be sold directly on the Internet. The advantage of being recorded on vinyl is that this is a good idea to stop piracy as real music lovers do care about sound, being the best sound possible through these types of CDs (see picture below).
[pic] Once we see people like them we will give them a chance to giveconcerts. They will be national because we want to concentrate all our efforts in the local market.
Our logo: [pic]
Our pricing objective is to survive and after that we suppose that our goals will be to increase our market share and maximize profits. In order to survive, we decided to use penetration pricing, setting a low price and reference pricing as strategy....