Group 3 Term Project

Market SummaryOur mission is to build brand value by delivering electronic devices that are simple, affordable, and are eco-friendly.

Our main points of differentiation are sound quality, superior usability, and battery longevity.

We will provide both the hard and soft products that satisfy the needs of a variety of

customer segments through our website, and offer our physical product through various retail channels.

Market DemographicsNeeds: A simple component under one hundred dollars with full download and one track options

Trends: Population prefers data downloads and is not overly concerned with album covers and linear notes

Growth: a decent portion of the market would love a high-fidelity format at any price.

Situation AnalysisInternal Factors Strengths External Factors Opportunities

Unique product - Great SoundMedia sales learns from all

sources of experience in the sale of digital media

Current relevant and specific market research

Break-out organization with fresh talent

Lack of successful iPod competitor

Flexibility to pursue micro markets

Break-out indie-artistsLarge (blue ocean) marketSuperior fidelity to MP3Web based market research is

easy for responders

Situation AnalysisInternal Factors Weaknesses External Factors Threats

Unclear industry positionProduct involves intangibles

and service aspectsHigh entry price-pointLarge filesLimited fundsEntering a market with large

established competitors

Apple dominates the marketWeak economyMany survey respondents are

unconcerned with increased fidelity of sound

Frequency of upstart failuresNew innovations in music

delivery

Industry analysis

Competitors Company analysisApple Sony

Superior sound to AppleBetter library management

than Sony

Strategic focus and plan

Mission: To deliver a differentiated digital music player unlike any heard before with enhanced audio capabilities for Crystal Clear sound.

Goals: To enter the established digital music player market with unique differences that create brand specific demand.

Core Competency and Sustainable Competitive Advantage: Dedication to superior sound quality, ease of use and battery longevity.

Project Objectives - Target Market Our goal is to market our product to as many

consumers as possible, without limiting our potential customer base. However, we found that individuals in the age group of 65 years or older are significantly less likely to have internet access at home. Since our

product will require the use of a computer and internet, we will focus our marketing on the younger market segments.

Trends in Music Sales Digital music sales projection: United States Worldwide

• 2006: $1.9 billion • $ 2.9 billion • 2007: $2.8 billion • $ 4.5 billion

• 2008: $3.7 billion • $ 7.0 billion • 2009: $4.5 billion • $10.7 billion • 2010: $5.2 billion • $12.9 billion • 2011: $5.7 billion • $14.8 billion

Marketing and project objectives - Points of

difference:High quality soundVarious storage/price optionsNew indie artists/ cutting edge of music sceneEase of useBattery longevity

Marketing and Project Objectives - Positioning

Wide market stancePremium quality Penetration

Basic Player: under $100Mid Player: increased

storageHigh-End Player:

Premium product for the discerning listener

Our signature player Commands Clarity

Product Marketing Program – Digital Player

Product Marketing Program - Digital Music

Complimentary product: Experimental FormatsSign new artistsFlexible fee structuring

Marketing Program - Pricing

Basic Player - $99Mid Player - $199High-End Player - $349 Online music - $9.99/album, $0.89/older songs and $1.09/new songs

Marketing Program - Promotion

Advertising Logo: Crystal Clear – Command ClarityInternet Promotion: Social Networks such as Face

BookUnsigned ArtistsDevice comes with preloaded music

Place / Channels of Distribution:

RetailersCompany WebsiteFlexible StructurePeriodic Analysis

Financial Data and projections

Financial Objective :

As evidenced below Apple has a commanding lead on other competitors, such as Sony, selling 90% of their combined sales in 2008.

Five year projection:

Implementation plan

Contract with outsourcing companyGain brand recognition through

Innovative advance advertising campaign

Release the physical product for sale at retailer stores on Black Friday

Evaluation and controlSet quarterly sales goals and assess progress using

various dashboards and analysis toolsMonitor market and geographic trendsCompare actual sales to the set goals Implemented marketing strategy accordingly. Retail sales vs. online sales will also be examined to see if

direct selling our product will be feasible.

BibliographyApple Inc.ASCAPCHAPTER 20: RECORDED MUSIC. Hand Held Audio SurveyZUNE