Downham music


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Downham music

  1. 1. Strategic Marketing Planfor Downham MusicPrepared for: Mr. Dodson and Dr. WiesePrepared by: Eminence MarketingTeam Members:Richard BilbeeChris BourgeaZach DukeJason WieseBryce Woodyard 1
  2. 2. BACKGROUNDDownham music was founded in 1958 by the Downham family. It has been family owned and operatedever since its inception. It is currently owned by Randall Downham who inherited the business from hisfather. They offer a wide variety of services in the music industry including instrument and instrumentaccessory sales, instrument repair, instrument rental, music lessons, and it also has a wonderful venue forconcerts.OBJECTIVEWe plan to increase profits and flow of traffic into the store for Downham Music by developing a strategythat will increase the number of private lesson students.TARGET MARKETWe have identified the target market as musicians of the beginner and intermediate level, ranging fromages 10-16. We want to focus on this market because it is often the students who choose to get privatelessons, because they are encouraged by their music teachers, and then they go tell their parents about it.SWOT ANALYSISStrengths: •Downham Music is not only a music store where musical instruments and accessories can bepurchased and rented, but it is also a provider of services including instrumental repairs and privatelessons. •Downham Music has a great location on Broadway Street with excellent facilities including multiplepractice rooms and an upcoming venue which attracts musicians to come and perform. Downham’s hasrecently moved into this location and it has made an immediate impact on the store. •Mr. Downham, the owner, has assembled a very experienced staff with knowledge on all aspects ofmusic. We immediately noticed that the staff and Mr. Downham were very friendly and excelled incustomer service. • Downham has made relationships with local music programs at North Side Middle School, SouthSide Middle School, Highland High School, Anderson High School, Frankton Jr/Sr High School, LapelJr/Sr High School, and Liberty Christian School. •Thehighest selling products in the store are accessories, such as guitar strings and cleaning supplies,which a musician of any experience level must acquire. 2
  3. 3. Weaknesses: •Downham does not have any high name brand musical equipment such as Fender Guitars orMarshall Amplifiers. Without high name brand equipment, Downham’s cannot attract experiencedmusicians that require higher quality equipment. •Downham has not been able to establish a solid foundation of consistent customers. •Downham’s website has been under construction for over a year - prohibiting them from makingpossible sales and reaching new customers.Opportunities: •We immediately noticed an opportunity to reach other music programs at local schools and alsohome schooled students. •There are many people that do not play an instrument, but we see Downham as an opportunity forstudents to learn through private lessons. •Downham has not fully utilized the ability of the internet. The internet could be used to organizeprivate lessons and sell musical equipment.Threats: •In the local schools, many of the music programs are beginning to die. •Downham faces intense competition from local competitors such as Dan’s Music, Music Today, andMuncie Music to chain stores located in Indianapolis such as Sam Ash and Guitar Center.RATIONALE FOR MARKETING OPPORTUNITYMr. Downham has told us that there is a direct correlation between the flow of people in the store and thesuccess of the business. We want to create flow through the store by increasing the amount of privatelessons. The flow of people from lessons will help improve all aspects of Mr. Downham store includingthe music store, instrumental repair, and even the venue. Research and Customer AnalysisOur Objective... Our primary objective was to discover the awareness of Downham within our target market and to discover if our product (private lessons) is wanted and needed.The Surveys... 3
  4. 4. We passed out 100 surveys to students at East Side Middle School and South Side Middle School. These students were either beginner musicians who play instruments or students who never played instruments. •If you play an instrument; do you think lessons are worth it? •If you do not play an instrument and lessons were being offered for a minimum cost , wouldthat interest you? •Have you ever heard of Downham Music? •Do you believe that lessons are worth it?Our Results and Analysis... Out of the 100 surveyed students, all falling in our target market range of ages 10-16, 79 partake in playing an instrument and 21 do not. However of these 21, 16 of them said that if lessons were being offered at a reasonable price, they would be very interested in taking up an instrument. Furthermore, we asked the students who do play an instrument if they have or are currently taking lessons and 65 students do not. However, 66% of the students vehemently agreed that musical lessons are extremely essential. 48% of the students had not even heard of Downham Music. From these statistics, this proves to our marketing group that there is a market to be reached that Mr. Downham has been unable to grasp due to lack of recognition/knowledge of his music store. We firmly believe we can change this and thus, create a stronger flow of traffic in Downham Music. Competitive AnalysisOur Competition...Sam AshLocation:Sam Ash is located at 8284 Castleton Corner Drive, Indianapolis, IN. Castleton only 30 minutes awayfrom Anderson and is often perceived to be the hottest shopping spot in Indiana.About the Company:Sam Ash is a commercial music retail store that is very popular amongst the experienced musician. Theysell a variety of name brand equipment and hence, tend to be pricier than most competitors.Our Observations: 4
  5. 5. Upon personally observing Sam Ash’s music store, we noticed that although Sam Ash has extremelytalented employees in every designated section of the store, they lacked customer service and almost hada sense of arrogance about them. It is very up-to-date music store in the sense that they have the latesttechnology in amplifiers, recording software, and sound pedals. Prices of instruments were quiteexpensive. Sam Ash only focuses on retail and they offer no other services. Also, Sam Ash has a veryup-to-date website that allows customers to purchase gear and also notifies on up coming sales.Guitar CenterLocation:Guitar Center is located at 8475 Castleton Corner Dr Indianapolis, IN. It is located in a very busy andpopular location. It is right next to the Castleton Square Mall and a very strong competitor to Sam Ash.About the Company:Guitar Center is highly respectable chain music store with locations all across the United States. Theirmain focus is guitars and guitar equipment. They do have other products, but their money maker andmain market is the experienced/professional guitarist.Our Observations:Upon observing Guitar Center, we noticed great customer service and a staff that was veryknowledgeable and willing to help. Guitar Center has very high quality products for more experiencedmusicians, but also very expensive products. Just as Sam Ash, Guitar Center is a very up-to-date musicstore with the best quality and latest technology. Also, Guitar Center is focused on retail and provides noother services. Guitar Center has an amazing website that allows for customers to purchase equipment,updates on up coming sales, and shows customers all the locations across the world.Muncie MusicLocation:Muncie Music is located at 207 W Jackson St. Muncie, IN on a very busy intersection in the heart of thecity. It is very close to Main Street and is located close to a few schools.About the Company:Muncie Music is very similar to Downham Music. Muncie Music is even considered Downham’s biggestcompetitor. They have a retail store, but also provide instrument rental, repairs, and lessons.Our Observations: 5
  6. 6. We immediately notice that Muncie Music was Downham Music strongest competitor. They offered allthe same services that Downham provides. Also, they have a broader range of products at cheaper prices.They have created a very modern website and they are using it very effectively. They have madeconnections with local school music programs. However, Muncie Music did not have a venue located intheir store. Also, they did lack in experience and customer services compared to Downham Music. Competitive AdvantageAlthough Downham Music lacks in name brand equipment due to financial reasons, Mr. Downham andhis staff excel in customer service and have knowledgeable experience in this trade. Downham Musicprovides instrumental rental and repair, lessons, a local venue for up and coming talent, and also a retailstore that is ideal for the beginning musician. Another advantage that Downham Music has over itscompetitors is the affordable price of $13.75 per lesson. Most music stores such as Sam Ash and MuncieMusic Center are focused on the sale of the product and the gaining of revenue. However, DownhamMusic is focused on lending out their extensive knowledge to the customer and the gaining of a long termcustomer relationship. Downham Music looks to educate the customer as well as serve their retail needs.Very few places care about the customer as much as Downham Music. General Marketing StrategyAfter research and analysis of our target market and competitors, Eminence Marketing has developed ageneral market penetration strategy for Downham Music. There is no reason to change the product(lessons) or change the market because from our research we have found that there are students who wantto take lessons that are not currently taking them.First, we plan to enlighten the community about Downham Music through promotion. We want toeducate our target market of all the services, especially lessons, Downham Music can provide. Secondly,we realize that Downham Music is very old fashioned and in order to reach a young age they mustmodernize themselves. Finally, we must promote that Downham is more than just a retail store, but it isan experience and a place to gain musical knowledge. We believe that through this strategy, we can makean impact and increase traffic flow through Downham Music. The Marketing MixWhile our team, Eminence Marketing, was reviewing the marketing mix, we discovered that there weresome variables that could not be altered. The price of lessons must remain unchanged because 73% ($10)of revenue made from lessons goes straight to the teacher and the other 27 % ($3.75) goes to DownhamMusic. The product, the lessons, obviously cannot be changed. Although these two important parts of themarketing mix remain unaltered, we realize that there is a must for modernizing the store. Also, we canaffect the availability of our product by making various suggestions. While all of these are equallyimportant for making a business successful, we have analyzed the marketing mix and decided to devote a 6
  7. 7. majority of our time on promotion, simply because this is what we feel is necessary to increase trafficflow in Downham Music. Our SuggestionsModernization... Before Downham Music moved into its current location, a church occupied the estate. Close to two years later, evidence of the church are still present at Downham Music. In order to successfully reach their target market, we recommend that Downham Music should shy away from their current decorative strategy. We believe that the set up of the store inside and out is a bit old fashioned and believe that changes such as a new paint scheme, modern music being played when people enter the store, and modernizing the current logo to something that is more appeasing to the eye will create a better experience for customers. Furthermore, Downham Music should embrace the internet and its useful resources.Availability... Increasing the availability of lessons is a great way to increase traffic flow. Downham Music currently only offers lessons three days out of the week. By simply holding lessons everyday of the week, this would allow young musicians to come and partake in lessons at a time that is most convenient to them and their parents.Promotion... •Commitment Plan The commitment plan would allow musicians to purchase lessons for three or more months. This would guarantee that Downham Music would create a loyal customer base over this period time. By purchasing lessons in bulk, the musicians would be given a discount, which would make payments easier for parents and would also encourage the student to continue his/her relationship with Downham Music. • Movie Theater Ad According to the National CineMedia, a company which enables local businesses to promote themselves before the showing of a movie, 45% of families in a local community see a movie at least once a month. According to the Anderson City Clerks office, the current population of Anderson, Indiana is 59,734. This means that 26, 800 people per month could potentially become aware of Downham Music if they were to promote at the local movie theater. A fifteen second ad is $100 a month and would be shown before every movie. Although some consider this a major investment, we believe that the return would be greater. This is a great chance for Downham Music to connect with their target market because 10-16 year olds attend movies quite frequently 7
  8. 8. and are often accompanied by their parents. In the past, advertisement has been misused by advertising at local diners which typically serves a target market with a much higher average age. The advertisement would include all of the services Downham Music can provide, but would have an emphasis on lessons and the education of musical instruments.•Instrument Brochure Our research has shown that students involved with their school’s music program are unaware of Downham Music, yet are still very interested in finding lessons. We propose that Downham Music should include promotional material in all equipment that is sold to the music program at schools. When a student receives his or her instrument, he or she would also receive all the information about Downham Music on a brochure located in the case of the rented instrument. Also inside the case, we would include a form to sign up for lessons which could be given to the music instructor and then handed in to Downham Music to set up the students future lessons.•Director Encouragement Plan As previously stated, students involved with their school’s musical program are unaware of Downham Music. We believe Downham Music needs to have a direct relationship with music directors in order to promote lessons. Downham Music would set up a plan to encourage music directors to promote lessons at their establishment. If more students take lessons at Downham Music, the music director would receive discounts on supplies and instruments. With encouragement and support from local music directors, Downham Music has greater potential to increase the flow of traffic.•Myspace Downham Music has yet to use the internet appropriately. Downham Music does have an internet server, but does not have a website because of the lack of knowledge and time to construct and manage one. Myspace would be a great solution to Downham’s internet issues. Having a Myspace account would enable Downham Music to make website updates extremely easily. Also, Myspace would not require a lot of maintenance. According to HitWise, a company which tracks website views in the United States, Myspace is the number one most trafficked site on the internet. Better yet, Downham Music would benefit from Myspace because the target market they are trying to reach is the same that is constantly on Myspace. Myspace could be used to promote lessons and update those who already partake in lessons. Also, 8
  9. 9. Myspace could be used to promote upcoming events regarding the store, promote all features of Downham Music (repair, lessons, retail), and could even be used for buzz marketing with the Myspace Top 8 feature. It is evident that the tools of Myspace can help Downham Music reach their desired target market and promote lessons.•Connecting with the Community Downham Music must find a way to connect with the local community. We suggest that Downham Music should create a direct relationship with other local businesses. The business which we believe would be most beneficial is Ricker’s Convenience Store. Ricker’s is based in Anderson and is highly involved with the community. Jay and Nancy Ricker are involved with many organizations and they also serve on many different boards in Anderson, including The Chamber of Commerce, Habitat for Humanity, and the board of the Anderson Symphony Orchestra. Being on the board for the Anderson Symphony Orchestra, shows the Ricker family has a passion for music and acknowledges that enhancing one’s knowledge in music is extremely beneficial. The education of music is something which Downham Music can provide through their lessons. Also, Ricker’s has extensive experience dealing with our target market through Ricker’s pop, which is very popular amongst 10-16 year olds. Creating this relationship with Ricker’s would also help with advertisement, publicity, and networking. Hence, we believe Downham Music must connect with local businesses, preferably Ricker’s, in order to connect with the community and, ultimately, their target market. Synopsis of Our WorkEminence Marketing completed the following tasks in order to present educated recommendations toDownham Music: •Completed a situational analysis to discover Downham Music’s target market, strengths, weakness,opportunities, and threats. After successfully completing the SWOT analysis, we created the objective ofcreating more traffic flow through the lessons program at Downham Music. We decided on this becausethere is a direct correlation between traffic flow created from lessons and revenue made from the retailside of the business. •Distributed surveys to 100 students in our target market to find the awareness of Downham Musicamongst our target market. We also were trying to discover if our product (lessons) were wanted andneeded. •Analyzed and compared Downham Music’s competitors. 9
  10. 10. •Identified Downham Music’s competitive advantage. •Evaluated the current market mix to develop recommendations for improvement.Downham Music has the potential to become a premier store in Anderson. However, in order toaccomplish this, Downham Music must realize that in order to appease their desired target market, thestore must become more modernized, offer lessons more days per week to increase availability, andpromote their product in ways that will reach their target market successfully. We believe with oursuggestions, Downham Music can reach the objective of increasing traffic flow through lessons within thetarget market. 10