THE MODERN SOUND OF CLASSICAL GUITAR A product planning presentation

Today’s Topics

Introduction & SWOT The artist

Introduction & SWOT

The Artist Strengths Natural ability Appealing public presence Personal style Public performance track record Notoriety (within initial segment) Time constraints (teaching obligations) Delayed launch of performance / recording career Limited drive Self-gratification inclination Weaknesses Opportunities Growing appetite for classical (especially guitar) music Multiplication of musical events Consolidation of local labels Internet & self-publishing (10% of market Ren-gen – diversification of pursuits Decline in musical education for the general population Generational associations Piracy Threats

Strengths

Natural ability

Appealing public presence

Personal style

Public performance track record

Notoriety (within initial segment)

Time constraints (teaching obligations)

Delayed launch of performance / recording career

Limited drive

Self-gratification inclination

Weaknesses

Opportunities

Growing appetite for classical (especially guitar) music

Multiplication of musical events

Consolidation of local labels

Internet & self-publishing (10% of market

Ren-gen – diversification of pursuits

Decline in musical education for the general population

Generational associations

Piracy

Threats

PEST & 5 forces analysis The environment

PEST & 5 forces analysis

PEST Analysis Political Copyright law Interpreter’s rights Agency laws Taxation Government & EU funding Income of population (25.5% increase) Purchasing power (Romanian managers rank 8 th in the world) Global crisis Industry developments Economic Social Education system – musical education Availability of free/ leisure time Generational cycles and gaps Family socialization Internet penetration (53.9%) DRM Online platforms ( www.musicmall.ro ) Live recording technologies Technological

Political

Copyright law

Interpreter’s rights

Agency laws

Taxation

Government & EU funding

Income of population (25.5% increase)

Purchasing power (Romanian managers rank 8 th in the world)

Global crisis

Industry developments

Economic

Social

Education system – musical education

Availability of free/ leisure time

Generational cycles and gaps

Family socialization

Internet penetration (53.9%)

DRM

Online platforms ( www.musicmall.ro )

Live recording technologies

Technological

5 Forces Analysis Buyer power Barriers to entry Supplier power Threat of substitutes Competition First in supply chain Inputs are standardized and readily available (strings, etc.) Relevance of instrument maker Natural ability Lengthy learning curve Gatekeepers - Long lead times Minimal financial outlay Influencers Arbitrary component of taste Effects on career development Buyer concentration vs. industry Availability of substitutes Successive generations of Conservatory guitar alumni Privately taught musicians Foreign musicians other classical music genres other leisure activities (e.g. reading, museums) low switching costs buyer inclination to substitute

First in supply chain

Inputs are standardized and readily available (strings, etc.)

Relevance of instrument maker

Natural ability

Lengthy learning curve

Gatekeepers

- Long lead times

Minimal financial outlay

Influencers

Arbitrary component of taste

Effects on career development

Buyer concentration vs. industry

Availability of substitutes

Successive generations of Conservatory guitar alumni

Privately taught musicians

Foreign musicians

other classical music genres

other leisure activities (e.g. reading, museums)

low switching costs

buyer inclination to substitute

Distinctive features of cultural consumption Mechanisms of consumption Segments The Consumer

Distinctive features of cultural consumption

Mechanisms of consumption

Segments

Classical Music

Types of Consumption

Consumption Mechanisms

Segmentation Variables

Consumer Segments

Consumer Segments

Market size considerations Consumption patterns The Market

Market size considerations

Consumption patterns

Cultural Infrastructure There is a regional market for concerts Cultural Consumption Barometer 2007

There is a regional market for concerts

National Consumption The average Romanian spends an average of 94.1 RON per month for cultural activities & purchases The distribution is abnormal, with high percentages who spend nothing Cultural Consumption Barometer 2007

The average Romanian spends an average of 94.1 RON per month for cultural activities & purchases

The distribution is abnormal, with high percentages who spend nothing

Cultural Capital Cultural capital is low at 6.98 on a 13 point scale 35% ignorant 18% cultured 42% medium = 13.560.000 potential market Cultural Consumption Barometer 2007

Cultural capital is low at 6.98 on a 13 point scale

35% ignorant

18% cultured

42% medium

=

13.560.000 potential market

Musical Preference 5% of Romanians like classical music = 1.130.000 market

5% of Romanians like classical music

=

1.130.000

market

Product Price Place Promotion The 4 Ps

Product

Price

Place

Promotion

The 4 Ps

The 4 Ps

Sample Cover Art

Product extensions

Supply Chain