Paste your essLusic Inc. Marketing Plan
EXECUTIVE SUMMARY
Lusic Inc. is a growing, privately owned corporation amid first to second-year development. Lusic records the daily conversations of highly regarded artists, performers, and influencers to produce revolutionary material to the public. Using innovative software new music and podcasts can be produced with or without the influence of the artists. An increasing music industry means there is plenty of opportunities for Lusic to flourish especially since its software can only be made by a select view. Over 15 billion is spent annually by consumers on music downloads. However, most of that 15 billion is spent on just a handful of artists. This will help us be successful because we can target first-rate artists who people are influenced by. Using our artists’ influence will help satisfy our target market, and increase the companies’ income. With demand for music being at an all-time high our objectives for next year will be to start our means of development. For Lusic to continue its exponential growth we need to begin recording our influencers concepts and designs and begin morphing them into our own. A major challenge facing Lusic will be its ability to produce material efficiently while remaining constant with our consumers’ demands. As a private company, our first and foremost goal is to satisfy the consumer while increasing profits and making better use of our resources.
After researching the internal strengths and weaknesses and external opportunities and threats of the company our marketing plan was developed. The plan focuses on the company’s growth strategy, suggesting ways to ensure profit while maintaining customer satisfaction. Aside from our newly developed software, we hope to produce new products and/or services targeted to specific customer niches. Since Lusic markets a product for its clients, it currently is considered a business-to-consumer marketer. However, we would like to become a business to business marketer after partnering with other organizations to create a more complex distribution channel. Finally, by following this marketing plan, Lusic will stand out amongst our competition by better addressing our customer’s core concerns with more creativity and targeted messaging.
MARKET OPPORTUNITY
Since the creation of downloadable music in the 1960’s people have been trying to find ways to listen to their favorite music artists, and through our studies are able to see that people are willing to listen to those artists even if it comes by illegal means. This has resulted in a 15.6 billion dollar download industry (*https://www.statista.com/statistics/259980/music-industry-revenue-in-the-us/), yet more can be extracted from this market. My current competitors include Vocaloid and Hollywood USA. However, both are incomparable and inferior thanks to our ground-breaking technology. I do not view existing artists and influencers as competition because I will be looking to partner with them.
My company is unique and allows dig deeper into an existing marketplace as my marketing strategy. Market penetration will benefit my company by allowing me to partner with Apple Music, Spotify, & YouTube. Famous artists already have preexisting terms with most of these companies which will make our transition to these apps easier. Other macro-environmental trends that will benefit my company include innovative technological advancements. Laptops and mobile phones have become a part of our daily lives, and it the number of people with these devices is only going to increase in the future. 47% of music is being downloaded to mobile phones and laptops which leaves us plenty of room for improvement.
CUSTOMER ANALYSIS
To address potential customers for my market it is important to address environmental factors that might influence their choices. A customers’ income, age range, lifestyle, geographic location, and purchase history are all important to analyze to really understand my consumer and address a solution to their need. Thanks to an increase on the internet around the world geographic location will not be a major factor in the United States and we’ll populated areas around the world. Lifestyle will likely have a major factor on what artists we target, what encourages me is that we are able to analyze our consumers wants. We can guarantee Lusic Inc. can produce what our consumers’ demand. Lastly, and most importantly income will not be a major factor when purchasing our product. Our songs will be available for download on 3rd party sites such as Spotify and iTunes. These websites will reward us for downloads and pay us to ensure they are receiving our music.
Customers are consistently wanting their favorite artists to produce and release music, but their genius takes time. The constant demand for the latest music means the ball is in our court and we will be able to control our market by owning the release rights to the music. That means once the music is produced we can release our product at the right time to maximize profit.
My segment of the music industry will only include those who can download or stream music from devices such as a laptop, tablet, or mobile phone. Because my music is only offered to a specific segment I will continue to research how to draw consumers away from outdated CD’s or radios.
OBJECTIVES
Lusic Inc. will not define success purely on generated revenue and income. I will define success by measuring a variety of factors including customer satisfaction, the number of artists we sign, employee happiness, and how we impact the world. While my company is privately funded I will be looking to build my brand and relationships with consumers. Learning from previous experiences I decided not to take my company public. It is too early to have software of this capability in the hands of the public shareholders. Shareholders are typically focused on ensuring the stock price increases and can, in turn, lose focus on original company goals. My long-term plan includes taking my company private as detailed below with several other goals.
1st-year goals
• Revolutionize the music industry by becoming the first technologically advanced music producing company
• Sign >10 artists and influencers in the first year to begin recording and preparation
• Build brand awareness and public relations skills in the industry
2nd-year goals:
• Become the first software company to create artificial music
• Continue to expand the employees, artists, and technological advances inside the company
• Release first samples of our artists’ productions
• See Lusic Inc. generate its source of revenue
3rd-year goals:
• Take our company public, which in turn should generate massive amounts of revenue and allow our company to expand at a much faster rate
• Develop our board of trustees by having the top minds in the music industry join us
• Continue to cut expenses, and see income for the first time in 3 years.
• By this time our company will be generating millions of streams and downloads annually in the United States and around the globe.
• Revenue will now exceed tens of millions while expenses remain in the low millions and decreasing.
• Analyze our consumers’ data and continue to expand outside the United States.
ACTION PROGRAMS
My customers will be receiving the music they download from their favorite artists as they typically do. What makes my product and software so unique is that will be creating music. The artificial aspect of the music means that several artists, developers, and producers will have input on how the music should sound to satisfy our consumers, this will affect our software which will be continuously altered to fit the everyday needs of customers and music listeners.
Lusic Inc. is unique and our customers can listen to their favorite artists at a much more frequent rate without diluting the quality of the product. Lifelong music is also striving to use our technology to revive deceased artists. As seen in Hollywood, holograms of deceased artists are becoming much more realistic and have a rising fan base to support it. The goal is to allow consumers to listen to their favorite artists whether they are alive, dead, sick, or retired. We can become the first company to revolutionize the music industry while pulling the strings from behind the scenes. Our manufacturing process will be undisclosed until production has ceased and a song/album is ready to be released.
PRICE
Lusic Inc. had two options when looking at our recommended retail price. First, we had to determine if we wanted to use a 3rd party music distributor such as Spotify or Apple Music or to distribute our music ourselves. To self-distribute, we would need to hire a website design team that would allow us to retail our music. This would allow us to control and vary our pricing based on music popularity and genre, however, Lusic Inc. decided to choose against this option for several reasons. The first being to maximize our profits while maintaining the lowest expenses possible. After analyzing recent price changes made by iTunes we concluded the best option would be to receive 10% of every download as well as royalty bonuses when our songs are performed or played on the radio by our artists. We will be signing a contract with several distributors to maximize availability to consumers. A buyout clause in the contract will also allow us to work on our self-distributing website while we are under contract.
PLACE
Customer access is not one of our main concerns at the moment because iTunes and Spotify are easily downloadable on most devices, but any smart company looks to the future to help solve modern problems. Only 47% of music is downloaded and leads to a revenue of 15.7 billion in the United States. Lusic strives to be a worldwide industry that is available to people no matter their income status. That means we will be allowing our music to play on commercials, in clubs, at hotels, and many more locations. Certain consumers will not be able to download our music, but that does not mean we cannot reach them in a number of other ways.
PROMOTION
Social media plays a major role in promotion today. We have instant access to what celebrities are feeling and thinking through social media applications such as Instagram, Twitter, Snapchat, and more. These applications link directly to my target market because both require mobile devices or some access to the internet. Today, celebrities have millions of followers ready to listen to what celebrities are saying. A single tweet from Kanye West, who is one of our main targets, can receive millions of shares in a matter of minutes. With our product being shared by millions of people through these artists I believe promotion will be one of the easiest aspects of this company. Lusic Inc. is proud to partner with video game producing companies to feature our songs in their soundtracks as well. This promotion will provide us with more to expand our brand and result in increased income. The decision-making process by our product will be persuaded by other industries such as EA Sports and our influencers. The costs of these tweets may be high, but the reward for that kind of publicity and manipulation is priceless.
Promotion Costs
Media Sources:
$250,000
Twitter
$100,000
$25,000
$75,000
Snapchat
FINANCIAL FORECASTS
Based on my project Revenue and Costs I can calculate my expected financial position at the end of year one, two, and three. I was not expecting to be profitable because I was a newcomer to an already booming market. I would need more time to record the artists to fine tune their recordings. The software would then help create new music with the artist’s voice. We will want to ensure our product is perfect when first releasing this so a year of production is, to say the least. Lusic Inc. will sure endure several expenses such as developmental costs, costs of production, promotion, and distribution costs. Time will also be needed to build brand awareness, sign, artists, and promote.
This should not alarm potential shareholders because in the next coming years they can expect massive amounts of revenue and income while maintaining low fixed costs. My rationale for my projections is quite simple. One hit song and music video can get hundreds of millions of streams, downloads, and promotions. This is projecting if we only get one hit song. I will produce several songs, but not everyone will hit. My costs include my failed endeavors however, the revenue is only from one of those songs hitting. It is not crazy to say a Kanye, Miley Cyrus, or Shakira song would get millions of views if they made several songs. This is only the first 3 years of production listed
below.
Year
1
2
3
4
5
6
7
8
9
10
11
Sales
0
300
350
315
394
492
615
769
961
1,202
1,502
10 Year Projection:
As Lusic Inc. continues to prosper our company will reach several deals with the most streamed artists around the world. We now create several hit videos and downloadable songs creating mass revenue and promotions. Our 30 artists create over 1 billion dollars of revenue in just one decade! We are a global influencer.
CONTROLS
If Lusic Inc. is not on par with its expected changes by the end of year 3 then drastic changes will be made to the company. Cuts to capital set up costs, fixed costs, and promotion costs will be made to offset the debt incurred in the previous 3 years. If the company is profitable at any time before the end of the 3rd fiscal year then no changes will need to be made. Our projections are purely based on a single artist, while our goal remains to sign approximately a dozen artists.
CONCLUSION
Include a summary of the key points and an explanation of the logic of your proposed course of action. It is an overview of your plan and should make it clear how and why you will be successful!
Lusic Inc. has a business to consumer relationship and is entering the market for the industry at a prospering time. As technology advances we will continue to see our industry grow.
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