Re-Positioning Rega Turntables to Hip Professionals

1,981 views
1,874 views

Published on

To take advantage of resurgence in vinyl record sales, our group has researched the feasibility of repositioning Rega turntables to a younger segment of “hip professionals.” As digital music, both purchased and stolen, has acquired a vast market share among our target audience, the greatest challenge is convincing consumers their investment in a Rega turntable will provide enough utility. Focus groups show that price and convenience are the two largest factors in purchase decision-making for our target of relatively affluent urban audiophiles. Thus, we will be highlighting the hedonic musical experience associated with turntables, while selling the product at a competitive price. We plan to communicate the terminal values Rega offers by using visuals that portray social praise and the ability to become an opinion leader in one’s reference group. Ultimately, this retro brand can be revived through effective marketing.

All materials were created by Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, Erica Swallow and Andrew Wong

1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
1,981
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
19
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Re-Positioning Rega Turntables to Hip Professionals

  1. 1. Repositioning Turntables to Hip Professionals <ul><li>Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, </li></ul><ul><li>Erica Swallow, and Andrew Wong </li></ul>Consumer Behavior C55.0002 - Section 2
  2. 2. History of the Turntable <ul><li>First invented in late 1870s </li></ul><ul><li>Through the 1960s and 1970s, turntables were the leading audio technology </li></ul><ul><li>Predominantly replaced by digital players in 80s and 90s </li></ul><ul><li>Vinyl records and turntables growing popular once again </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  3. 3. Current Market Trends <ul><li>Great advances in playback since 1970s; still retro appeal </li></ul><ul><li>US record sales increase 40% in 2007 to 1.3 million units </li></ul><ul><li>Amazon launches vinyl-only section of its online store </li></ul><ul><li>While MP3s conquer the market, CDs become a dying trend </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  4. 4. OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Current Market Trends <ul><li>“ The involvement and work the listener has to put in [the vinyl record], all make it the format of choice for people who really care about music.” -Patrick Amory, MatadorMP3 coupons provided with vinylLoudness War creating a cry for higher-quality soundOn vinyl... Beck, Kanye West, Radiohead, Madonna, U2, etc. </li></ul>
  5. 5. Rega Research Limited <ul><li>Contemporary British turntable company established in 1973 </li></ul><ul><li>Turntable line ranges from low-end P1 model to high-end P9 </li></ul><ul><li>Sold through few distributors; limited positioning to target </li></ul><ul><li>Most industry competitors’ price and promotions not effective </li></ul><ul><li>Substitutes like iPod biggest threat for target market </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  6. 6. Key Consumer Needs <ul><li>Turntables provide access to newly popular vinyl records </li></ul><ul><li>Warm analog sound reputed to be far superior to digital music </li></ul><ul><li>Turntables are more conducive to social listening than iPods </li></ul><ul><li>Ownership shows trendiness; source of affection and respect </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  7. 7. Target Market Specifics <ul><li>“ Hip professionals” aged 18 - 34 </li></ul><ul><li>Young, urban, and trendy market with education, disposable income </li></ul><ul><li>Self-expressive and eager to emphasize their individuality </li></ul><ul><li>Value products’ experiential qualities over material worth </li></ul><ul><li>PRIZM: Young Literati, Bohemians </li></ul><ul><li>ACORN: Enterprising Singles </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  8. 8. Concept Statement <ul><li>Rega is marketing turntables to younger urban consumers </li></ul><ul><li>Record players provide high-quality music experience with rich analog sound </li></ul><ul><li>Available in mass-market and independent music stores, high-fidelity audio dealers </li></ul><ul><li>Also for sale on Rega’s website with ability to customize </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  9. 9. Focus Group Overview <ul><li>Found older students in dorms familiar with music; bystanders in Virgin Megastore; insiders </li></ul><ul><li>Illegal downloads common, but hard copies bought occasionally </li></ul><ul><li>Respondents used to set mood, enhance preexisting ambiance </li></ul><ul><li>Usually listen in highly social setting or complete isolation </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  10. 10. Focus Group Overview <ul><li>Music information obtained from social networks, blogs, online radio, and some print; little TV </li></ul><ul><li>Audio technology info came from online news, retailer sites, and industry publications </li></ul><ul><li>Word-of-mouth highly influential </li></ul><ul><li>iPods most popular, computer speakers also used; CD players and boom-boxes now obsolete </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  11. 11. Attitudes about Turntables OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY <ul><li>Overall impressions highly favorable – “classy,” “retro” </li></ul><ul><li>Nostalgia about turntables versus notion of modern DJs </li></ul><ul><li>Hedonic benefits like ambiance and look frequently mentioned </li></ul><ul><li>Switching costs high: learning required, differing functionality, portability, MP3 compatibility </li></ul><ul><li>Sense that purchase = switch </li></ul>
  12. 12. Attitudes about Turntables OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY <ul><li>iPod closest reference price, $300 - $400 as high-end price </li></ul><ul><li>Many demanded price premium to switch, $30 - $50 on low-end </li></ul><ul><li>Survey found weak / moderate purchase intent for students </li></ul><ul><li>Several felt purchase more likely as young professionals with income and personal space </li></ul>
  13. 13. Strategy: Product <ul><li>Inexperienced market demands simplicity of entry-level Rega P1 </li></ul><ul><li>Simple on/off switch; most settings are already adjusted </li></ul><ul><li>Detailed instructions and 3-year warranty reduce perceived risk </li></ul><ul><li>Custom details draw for target </li></ul><ul><ul><li>Color finishes standard; colored mat, glass platter </li></ul></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  14. 14. <ul><li>Rega P1 Base Price: $350 </li></ul><ul><ul><li>Color Upgrade: $50 </li></ul></ul><ul><ul><li>Total cost: $400 </li></ul></ul><ul><li>Users must also obtain amplifier, loudspeakers, and cables </li></ul><ul><li>Actual investment could run up to $1,600 using Rega equipment </li></ul><ul><li>Lower prices from other vendors </li></ul>Strategy: Price OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
  15. 15. OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Placement Current Distribution Quality Concerns Optimal Fit
  16. 16. <ul><li>Define separate usage situations for iPods and Rega turntables </li></ul><ul><li>Emphasize hedonic benefits and terminal values including social enjoyment and resultant praise </li></ul><ul><li>Demonstrate accessibility of turntables and vinyl records </li></ul><ul><li>Sales promotions to lower perceived risk and add value </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion
  17. 17. <ul><li>Launch direct-to-consumer ads using traditional media sources </li></ul><ul><li>Print ads in magazines & trade publications like Rolling Stone , Spin , Stereophile , and others </li></ul><ul><li>Online advertising campaign on related publications’ websites </li></ul><ul><li>Non-traditional campaign using blogs, social networks, and publicity for word-of-mouth </li></ul>OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion
  18. 18. OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion <ul><li>Publicity to include experiential events to encourage trial </li></ul><ul><li>Partnerships with retailers using brand ambassadors </li></ul><ul><li>Product placement in congruent films, television shows, etc. </li></ul><ul><li>Relationship marketing through customer service, owner-only events, birthday reminders </li></ul>
  19. 19. OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Reviving the Turntable <ul><li>Ongoing trends could help Rega attain unique positioning </li></ul><ul><li>Target market of young, trendy, hip professionals ready to buy </li></ul><ul><li>Addressing consumers’ value and compatibility barriers key </li></ul><ul><li>Hedonic benefits essential </li></ul><ul><li>Careful marketing could prompt the revival of a retro product </li></ul>

×