Marketing Analysis Polyphonic HMI Essay

Better Essays

Defining the Problem
Major Issues
1. Uncertain Attractive Yet Challenging Music Industry Landscape
The music industry is a 32 billion dollar industry, offering a huge opportunity if it can be penetrated. However, it is fraught with challenges. ArtistsArtists, producers, and record companies have little idea on how to find and create success in the industrygo abo. The dominant players, i.e. record companies utfind pursuing the production of thethe next big hit by producing in masses and hopingin hope that one turns out good, . This is shown evidenced by the low hit success rate of 10%. of a song topping music charts (Pg. 1, P2). What entails is an industrial marketing practice of huge inefficiencies and unwise budget expenditure (Pg. …show more content…

Value Drivers: For UAs, nothing gets in the way of pursuing their dreams. In addition, they form a mostly technologically savvy crowd who are willing to adopt new technologies like HSS. The potential of this segment is huge where 300-400 demos are sent to a record label per week. Approximately 187,200 demos (350 demos per week) are sent in per year to the dozen or so RCs under Universal Music Group for the US market (Pg. 5, P6).
Risk Drivers: The core needs of UA is to get a contract from RCs, but as RCs might not align their tastes and preferences to the scoring criteria of HSS (Pg.12, P5), a good report from HSS does not directly translate to the UA being signed by the RC. UAs have financial constraints which have prevented them from seeking available avenues like Internet Polls and Call-out surveys that costs above $1000 (Pg.10, P1). The shoestring budget does not allow for extensive advertising as it is costly for outreach to the massive number of UAs (Pg.11, P4). Lastly, the reports may be too complex for UAs to understand, resulting in low adoptability.
Option 2: Target Producers. This segment comprises 20-30 successful producers, few hundred producers with occasional hits and thousands of minor producers.
Value Drivers: The use of HSS can help to diminish uncertainty to a certain extent, giving producers a better gauge of the potential of their songs.
Risk Drivers: There are a few noteworthy risks.

Get Access
Get Access