Real Groovy Situation Analysis Sunny Wong

Situation analysis

By Sunny WongID:4902554

Products for sale

Physical Record: Music CDs, DVDs, LPs, Books, Games etcTickets for concertsMagazinesDance Vinyl (new and used, local and imported)AccessoriesT-shirtsPosters and Flags

• Real Groovy have Deep Catalog of product (more than 20000 titles) Well Stock organization to help customer find product Good Services provide to customers Well Trained Staff A-well designed website A good delivery system in New Zealand The Brand name is well-known in New Zealand Well use of internet and promotion- Affiliate Program

• Extra costs for imported from United States• Higher selling price than competitors• Only 4 stores in New Zealand- cannot get high market share in

the whole country

Real Groovy is Facing

They are

• 1. Music download

• 2.Competition

• 3.Store locations

• 4. Population(ethnic group)

1. Music Download

The increase in technology level

We can get faster network and more resources from the internet because of the technology level increased.

• Faster • More resources

And teenagers share music on the internet for free.

Those reasons lead the music downloads become an issue but it is illegal.

2.Competition

Bigger companies can offer more resources.

• Lower price Deeper catalog for goods

And it become a real competition and a big issue for Real Groovy because

• The selling price of big company is lower than Real Groovy's cost.

• The big company can offer a deeper catalog and cost more for advertising to increase customers.

3.Store location• 4 stores located in New Zealand

Issues of location

• Only four stores in New Zealand, it means they lose many potential customers in the areas they haven’t cover.

• On the other hand, the market of New Zealand Music Retailer is not fully employed yet. Especially in the rural areas.

4. Population (ethnic group)

Issues of Ethnic Group

• The population of the Asian and other ethnic group in New Zealand has been increased a lot in these 10 years. And they have their own culture and their own music.

• Real Groovy only sale products in English, but not all people in other ethnic groups like western music. So Real Groovy can not provide services to them.

Recommendations

1. Music Download

• Make the own version of music download from the net like MOOV. Join the membership and pay for the monthly fees to get a great quality of music download.

2. Competitors

• Sale the products that competitors may not have and specialize in one particular area like tickets or accessories

3. Location

• Start up new stores in different location in the whole country to gain market shares and build up the brand name for get into the international market.

4. Population (ethnic group)

• Every customers have their wants, but it may not be the same. So Real Groovy can try to purchase some goods like Asian movie or music to get into their market and get more potential customers.

Notes• All the pictures in these slides have been found through the searching

engine Yahoo and Google.• Addresses are as followed:

• http://www.twistingthrottle.com/images/real-groovy.gif• http://www.sisco78dvd.com/store/index.php?page=1&cat_id=291• http://www.im-anger.de/stonehenge/download/download.html• http://forum.aceboard.net/23756-1160-8950-0-Rubrique-RETRO.htm• http://store.apple.com/• http://www.amherst.edu/~cmottau08/meta%20tags.html

• http://www.edu-fair.com/Fair/newzealand/images• http://www.scoop.co.nz/stories/HL0109/S00001.htm• http://www.spanogroup.com/assets/images/faqIcon.gif• http://moov.now.com.hk/• http://www.flickr.com/photos/lumaxart/2365535334/• http://lourenceranchhomes.com/Builder/Crossings?S=A• http://www.flickr.com/photos/mundilfari_gjk/2417780862/• http://www.marocti.com/internet.htm• http://www.midlandstech.edu/edu/sds/copyright/dontdownload.gif

• http://www.flickr.com/photos/jfpower/186199577/• http://www.presence-pc.com/actualite/amazon-16497• http://www.realgroovy.co.nz/Information/5007