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Stuff

  1. 1. Project Objectives
  2. 2. Project Objectives Widen and deepen Veronicas visibility in the market:
  3. 3. Project Objectives Widen and deepen Veronicas visibility in the market: ● To establish the brand
  4. 4. Project Objectives Widen and deepen Veronicas visibility in the market: ● To establish the brand ● To encourage greater social engagement with the brand
  5. 5. Project Objectives Widen and deepen Veronicas visibility in the market: ● To establish the brand ● To encourage greater social engagement with the brand ● To monetise through: – Music product sales (physical/digital, domestic & international)
  6. 6. Project Objectives Widen and deepen Veronicas visibility in the market: ● To establish the brand ● To encourage greater social engagement with the brand ● To monetise through: – Music product sales (physical/digital, domestic & international) – Live shows (domestic emphasis & international showcases)
  7. 7. Project Objectives Widen and deepen Veronicas visibility in the market: ● To establish the brand ● To encourage greater social engagement with the brand ● To monetise through: – Music product sales (physical/digital, domestic & international) – Live shows (domestic emphasis & international showcases) – Sync, international licensing, fashion and merchandise sales
  8. 8. Project Objectives ● To invoke major label interest – not that this interest needs to be acted upon
  9. 9. Project Objectives ● To invoke major label interest – not that this interest needs to be acted upon ● Create the circumstances to make Malcolms exit possible or invite further investment if required
  10. 10. The Landscape
  11. 11. The Landscape● Global recorded music sales in 2011 were US$16.3 bn (IFPI)
  12. 12. The Landscape● Global recorded music sales in 2011 were US$16.3 bn (IFPI)● Physical format sales were $10.2 bn (62%)
  13. 13. The Landscape● Global recorded music sales in 2011 were US$16.3 bn (IFPI)● Physical format sales were $10.2 bn (62%)● Digital now accounts for 31% of overall recorded music revenues, up from 29% in 2010
  14. 14. The Landscape● Global recorded music sales in 2011 were US$16.3 bn (IFPI)● Physical format sales were $10.2 bn (62%)● Digital now accounts for 31% of overall recorded music revenues, up from 29% in 2010● UK-based artists accounted for almost 12% of global recorded music sales in 2010
  15. 15. The Landscape● Global recorded music sales in 2011 were US$16.3 bn (IFPI)● Physical format sales were $10.2 bn (62%)● Digital now accounts for 31% of overall recorded music revenues, up from 29% in 2010● UK-based artists accounted for almost 12% of global recorded music sales in 2010● Synchronisation earnings grew by 5.7% in 2011 (totaling $342 million, up from $324 million the previous year) and accounted for 2% of global recorded music revenue.
  16. 16. The Landscape Brand partnerships and synch deals have grown in importance. These include a new generation of brand partnership and synchronisation deals, involving the use of recordings in: ● TV ● Film ● Games ● Adverts
  17. 17. The Landscape Ellie Gouldings cover of Your Song was used in a John Lewis advertising campaign. This generated direct income and also helped lift the sales of her album by an additional 400,000 copies.
  18. 18. Why a label?● Having a legally-constituted profitable label will make her a far more attractive proposition in terms of being signed to a risk-averse major
  19. 19. Why a label?● Having a legally-constituted profitable label will make her a far more attractive proposition in terms of being signed to a risk-averse major● The terms of any major label buyout will be more favourable and yield a greater ROI
  20. 20. Why a label?● Having a legally-constituted profitable label will make her a far more attractive proposition in terms of being signed to a risk-averse major● The terms of any major label buyout will be more favourable and yield a greater ROI● She will have the resources to explore so many more revenue streams – many of which can be substantial i.e. International licensing, sync, fashion merchandise
  21. 21. Why a label?● Fewer employees and lower fixed costs means the label is structured to make more money with fewer sales
  22. 22. Why a label?● Fewer employees and lower fixed costs means the label is structured to make more money with fewer sales● A substantial, established, measurable fan base and sales track record will enable her to negotiate more favourable terms in a major recording contract
  23. 23. Why a label?● Fewer employees and lower fixed costs means the label is structured to make more money with fewer sales● A substantial, established, measurable fan base and sales track record will enable her to negotiate more favourable terms in a major recording contract● Even if she had the time to attend to all of the various functions which go into launching a new artist, these areas are not her specialism
  24. 24. Why a label?● She needs to minimise distractions to focus on artist development
  25. 25. Why a label?● She needs to minimise distractions to focus on artist development● Knowing she is supported by a team of specialists will give her greater confidence both on and off stage
  26. 26. Why a label?● She needs to minimise distractions to focus on artist development● Knowing she is supported by a team of specialists will give her greater confidence both on and off stage● Absence of bureaucracy means all functions are more immediate and responsive. This can facilitate access to more varied musical audiences when (for example) a studio session yields a new bhangra track!
  27. 27. Why a label?● A more direct path from the creation of her music to its promotion helps safeguard her original vision. This will lead to a far more authentic and unaffected creative output
  28. 28. Why a label?● A more direct path from the creation of her music to its promotion helps safeguard her original vision. This will lead to a far more authentic and unaffected creative output● Independent labels often have a particular sound, and fans of artists signed to a certain label often trust it to deliver music that they like
  29. 29. Breaking a new Artist
  30. 30. Breaking a new Artist 3 budget scenarios:● £150,000 + – UK-based campaign
  31. 31. Breaking a new Artist 3 budget scenarios:● £150,000 + – UK-based campaign● £350,000 + – Pan-European campaign
  32. 32. Breaking a new Artist 3 budget scenarios:● £150,000 + – UK-based campaign● £350,000 + – Pan-European campaign● £500,000 + – Global campaign
  33. 33. Breaking a new Artist The costs for breaking a new artist can be roughly divided into the 80:20 ratio:
  34. 34. Breaking a new Artist The costs for breaking a new artist can be roughly divided into the 80:20 ratio:● 20% (£6752 p/mth x 12 = £81,024)
  35. 35. Breaking a new Artist The costs for breaking a new artist can be roughly divided into the 80:20 ratio:● 20% (£6752 p/mth x 12 = £81,024) ● Veronicas artist development costs £1,140 – Singing lessons £400 – Trainer £600 – Dancing lessons £80 – Promotional subscriptions £60
  36. 36. Breaking a new Artist The costs for breaking a new artist can be roughly divided into the 80:20 ratio:● 20% (£6752 p/mth x 12 = £81,024) ● Veronicas artist development costs £1,140 – Singing lessons £400 – Trainer £600 – Dancing lessons £80 – Promotional subscriptions £60 ● Monthly subsistence £1,612 – Food £500 – Rent £600
  37. 37. Breaking a new Artist – Phone £80 – Oyster £132 – Social/personal £300
  38. 38. Breaking a new Artist –Phone £80 –Oyster £132 –Social/personal £300 ● Recording costs (Kevin) £2,000
  39. 39. Breaking a new Artist – Phone £80 – Oyster £132 – Social/personal £300 ● Recording costs (Kevin) £2,000 ● Label planning, set up & mgmnt (Stewart) £2,000
  40. 40. Breaking a new Artist – Phone £80 – Oyster £132 – Social/personal £300 ● Recording costs (Kevin) £2,000 ● Label planning, set up & mgmnt (Stewart) £2,000● 80% (£35000 p/mth x 12 = £418000) ● Video production ● Tour support ● Marketing & promotional ● Set up costs/legal, office space, desking, computers, employers liability insurance, internet ● Staff & interns costs ● Fashion design & distribution
  41. 41. Breaking a new Artist One-off costume and wardrobe costs: ● 10 x costumes (gigs/videos) @ £1500 ea ● 5 x outfits (interviews) @ £800 ea Total: £19,000
  42. 42. Label Structure
  43. 43. Label Structure A&R/Artist ● Artist Development will be International Publishing Development concerned with the overall planning of Veronicas career, generally helping them make the Marketing Art right artistic and commercial decisions. New ● It will involve everything from Legal Media assisting Veronica with song selection to choosing the people that will produce recordings, Label Publicity deciding where they will be Liaison recorded, mixed and mastered. ● Negotiating fees, booking any Sales Promotion extra session singers, musicians or ‘guests’ and taking delivery of the masters and so on. Business ● Show production, choreography, Affairs costume, set and lighting design of shows.
  44. 44. Label Structure A&R/Artist ● Marketing will create the overall International Publishing Development marketing plan behind all label output. Marketing Art ● It will be responsible for planning and coordinating all artwork, new media, publicity, promotion and New sales. Legal Media Label Publicity Liaison Sales Promotion Business Affairs
  45. 45. Label Structure A&R/Artist Artwork will be required for all International Publishing Development marketing collateral whether it be web banners, point of sale material or CD covers. Marketing Art New Legal Media Label Publicity Liaison Sales Promotion Business Affairs
  46. 46. Label Structure A&R/Artist ● New media will be in charge of International Publishing Development dealing with the newer aspects of marketing, including producing and promoting music videos for Marketing Art Veronica. In addition, this function will be responsible for helping her create a presence on the Internet New including her website and blog as Legal Media well as regular updates, blog posts and newsletters. Label Publicity ● It will deal with all production and Liaison implementation of new technologies with which she can stream her music and music Sales Promotion videos through the Internet, social media, mobile apps etc. ● Will also plan and coordinate all Business search engine optimisation and Affairs pay-per-click campaigns.
  47. 47. Label Structure A&R/Artist ● Publicity will be responsible for International Publishing Development getting the word out about Veronica, arranging for articles to be written in newspapers and Marketing Art magazines. ● It will also deal with radio and New television coverage. Legal Media Label Publicity Liaison Sales Promotion Business Affairs
  48. 48. Label Structure A&R/Artist ● Promotions main purpose will be International Publishing Development to make sure that Veronica is being played on the radio. Marketing Art ● The promotion department may also try to get videos played on terrestrial video i.e. MTV. This New can be the responsibility of Legal Media Promotions or in conjunction with the New Media department. Label Publicity Liaison Sales Promotion Business Affairs
  49. 49. Label Structure A&R/Artist ● Responsible for all the contracts International Publishing Development that are made between the company and 3rd parties. Marketing Art ● Any legal issues that arise go through this function. New Legal Media Label Publicity Liaison Sales Promotion Business Affairs
  50. 50. Label Structure A&R/Artist ● Will serve as the liaison to all the International Publishing Development labels various online distribution outlets. Marketing Art ● Will also help decide when to release material and that all functions are producing New deliverables to deadlines within Legal Media the release schedule. Label Publicity Liaison Sales Promotion Business Affairs
  51. 51. Label Structure A&R/Artist ● The sales function will oversee International Publishing Development the offline retail aspect of the record business. Marketing Art ● It will work with record stores to get Veronicas material onto retailers shelves. It will New coordinate these efforts with the Legal Media label liaison. Label Publicity Liaison Sales Promotion Business Affairs
  52. 52. Label Structure A&R/Artist This function will deal with the International Publishing Development business side of things, taking care of: Marketing Art ● Book-keeping, filing of accounts, VAT returns ● Payroll New Legal Media ● Budget sign-off ● HR Label Publicity Liaison Sales Promotion Business Affairs
  53. 53. Label Structure A&R/Artist Responsible for getting product International Publishing Development into other territories abroad, usually through licensing. I.e. Engineering Veronicas break into Marketing Art the US or across Europe. New Legal Media Label Publicity Liaison Sales Promotion Business Affairs
  54. 54. Label Structure A&R/Artist Collecting license fees from: International Publishing Development ● UK ollection societies ● Foreign royalty organisations Marketing Art ● Sync licenses New ● Sheet music etc Legal Media Promoting material to other potential users to maximise Label earnings such as: Publicity Liaison ● Other record labels ● Sync licensees Sales Promotion ● Advertising agencies Business Affairs
  55. 55. Marketing Approach
  56. 56. Marketing Approach Terry McBride ● Nettwerk Music Group
  57. 57. Marketing Approach Terry McBride ● Nettwerk Music Group – Released more than 500 albums and sold more than 150 million albums worldwide
  58. 58. Marketing Approach Terry McBride ● Nettwerk Music Group – Released more than 500 albums and sold more than 150 million albums worldwide. – Nettwerk Productions (Canadas largest independent record label)
  59. 59. Marketing Approach Terry McBride ● Nettwerk Music Group – Released more than 500 albums and sold more than 150 million albums worldwide. – Nettwerk Productions (Canadas largest independent record label) – Nettwerk Management (artist and producer management)
  60. 60. Marketing Approach Terry McBride ● Nettwerk Music Group – Released more than 500 albums and sold more than 150 million albums worldwide. – Nettwerk Productions (Canadas largest independent record label) – Nettwerk Management (artist and producer management) – Nettwerk One (publishing)
  61. 61. Marketing Approach Terry McBride ● Nettwerk Music Group – Released more than 500 albums and sold more than 150 million albums worldwide. – Nettwerk Productions (Canadas largest independent record label) – Nettwerk Management (artist and producer management) – Nettwerk One (publishing) – Artwerks (graphic and fashion design)
  62. 62. Marketing Approach Has Managed: ● Sarah McLachlan ● Coldplay ● Avril Lavigne ● Barenaked Ladies ● Dido ● Stereophonics ● Jamiroquai
  63. 63. Marketing Approach Companies create product brands by defining the values their brand extolls.
  64. 64. Marketing Approach Companies create product brands by defining the values their brand extolls. This gives the product a personality the consumer can identify with.
  65. 65. Marketing Approach Companies create product brands by defining the values their brand extolls. This gives the product a personality the consumer can identify with. In the music industry, the music is not the brand.
  66. 66. Marketing Approach Companies create product brands by defining the values their brand extolls. This gives the product a personality the consumer can identify with. In the music industry, the music is not the brand. The artist is the brand.
  67. 67. Marketing Approach Companies create product brands by defining the values their brand extolls. This gives the product a personality the consumer can identify with. In the music industry, the music is not the brand. The artist is the brand. Veronica is the brand.
  68. 68. Marketing Approach Companies create product brands by defining the values their brand extolls. This gives the product a personality the consumer can identify with. In the music industry, the music is not the brand. The artist is the brand. Veronica is the brand. It is her personality and lifestyle and the ways and means with which they are projected into the market that will establish her fanbase.
  69. 69. Marketing Approach She expresses her brand values through:
  70. 70. Marketing Approach She expresses her brand values through:● The music she releases
  71. 71. Marketing Approach She expresses her brand values through:● The music she releases● The videos she appears in
  72. 72. Marketing Approach She expresses her brand values through:● The music she releases● The videos she appears in● The music she listens to
  73. 73. Marketing Approach She expresses her brand values through:● The music she releases● The videos she appears in● The music she listens to● The artists with whom she associates
  74. 74. Marketing Approach She expresses her brand values through:● The music she releases● The videos she appears in● The music she listens to● The artists with whom she associates● The causes she aligns with
  75. 75. Marketing Approach She expresses her brand values through:● The music she releases● The videos she appears in● The music she listens to● The artists with whom she associates● The causes she aligns with● The position she takes on social and/or political and/or spiritual issues
  76. 76. Marketing Approach● The clothes she wears
  77. 77. Marketing Approach● The clothes she wears● The food and drink she consumes
  78. 78. Marketing Approach● The clothes she wears● The food and drink she consumes● The things she does to stay fit and healthy (or not!?)
  79. 79. Marketing Approach Artists receive attention for more than just their music.
  80. 80. Marketing Approach Artists receive attention for more than just their music. This is why sponsorships and endorsements with other brands have become so commonplace:
  81. 81. Marketing Approach Artists receive attention for more than just their music. This is why sponsorships and endorsements with other brands have become so commonplace: ● Jay Z and Roc-A-Fella Records (beginning as an independent outlet for his first album)
  82. 82. Marketing Approach Artists receive attention for more than just their music. This is why sponsorships and endorsements with other brands have become so commonplace: ● Jay Z and Roc-A-Fella Records (beginning as an independent outlet for his first album) ● Sean P-Diddy Combs fashion, film and label ventures (Fashion: Sean John and Sean by Sean Combs clothing lines)
  83. 83. Marketing Approach ● Gwen Stefanis Harajuku Lover Clothing (brand of apparel, fashion accessories and stationery launched in 2005) and LAMB (manufactures accessories like shoes, watches, bags and a fragrance called L)
  84. 84. Marketing Approach ● Gwen Stefanis Harajuku Lover Clothing (brand of apparel, fashion accessories and stationery launched in 2005) and LAMB (manufactures accessories like shoes, watches, bags and a fragrance called L) ● Foo Fighters playing fans personal garages on behalf of BlackBerry
  85. 85. Marketing Approach ● Gwen Stefanis Harajuku Lover Clothing (brand of apparel, fashion accessories and stationery launched in 2005) and LAMB (manufactures accessories like shoes, watches, bags and a fragrance called L) ● Foo Fighters playing fans personal garages on behalf of BlackBerry ● Lady Gaga calling a fan every night from the stage through Virgin Mobile on the Monster Ball tour
  86. 86. Marketing Approach The 8 key brand-building principles for monetisation:
  87. 87. Marketing Approach The 8 key brand-building principles for monetisation: ● Cause alignment (joint-venturing from a social and/or commercial perspective)
  88. 88. Marketing Approach The 8 key brand-building principles for monetisation: ● Cause alignment (joint-venturing from a social and/or commercial perspective) ● Authenticity (the artist doesnt invent their identity but discovers it, telling the truth in an engaging and creative, authentic way)
  89. 89. Marketing Approach The 8 key brand-building principles for monetisation: ● Cause alignment (joint-venturing from a social and/or commercial perspective) ● Authenticity (the artist doesnt invent their identity but discovers it, telling the truth in an engaging and creative, authentic way) ● Interdependence (using recycled components for packaging and printing with vegetable- based inks and/or look at ways of reducing carbon footprint for touring)
  90. 90. Marketing Approach ● Direct relationships (treat fans as the final member of the band and include them in the creative process)
  91. 91. Marketing Approach ● Direct relationships (treat fans as the final member of the band and include them in the creative process) ● Searchability (enabling content to be found as easily as possible in a way that is informative, interesting and attractive)
  92. 92. Marketing Approach ● Direct relationships (treat fans as the final member of the band and include them in the creative process) ● Searchability (enabling content to be found as easily as possible in a way that is informative, interesting and attractive) ● Interpretation (produce instrumental and a capella versions, sheet music, the instructional video showing how to perform the song on guitar or piano, technical studio effects, mixdown approach etc)
  93. 93. Marketing Approach ● Immediacy (reward fans for being first in the queue, getting information first, versus making them spend time to find it)
  94. 94. Marketing Approach ● Immediacy (reward fans for being first in the queue, getting information first, versus making them spend time to find it) ● Personalisation (different language versions for international markets and/or lyric translations)

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