3. Product or Service- Shazam My Radio
A product built by Shazam and synced to Youtube
“Shazam My Radio” will be a feature that is built directly into the Shazam application(app) that will
allow users to sync the Shazam application to whatever radio station they are currently listening to.
Then the list of the songs and commercials that Shazam “listens to” will sync to that users Youtube
account. That way the user will have a list of what they were listening to and can go back and
either listen again to the song or commercial or purchase the song.
Hit the Shazam
My Radio button
in the app while
listening to the
radio
Shazam will “listen”
then ask if you a
currently listening to
a radio station. (ie.
101.9 fm
After you let Shazam
know it’s on the correct
station it will synv
everything it hears to a
Youtube playlist via your
Youtube account.
Then access your
Youtube account
to see the playlist
it created for that
radio station and
enjoy!
• Shazam will run in the background and communicate to your Youtube account after every new song
Shazam logo http://www.shazam/company
Youtube logo: http://www.youtube.com
4. Product or Service- Shazam My Radio
A product built by Shazam and synced to Youtube
About Shazam My Radio
This added feature to Shazam will already use the existing technology that was created for the Auto
Shazam function for Iphone users. This will bring the technology to Android and Windows Mobile users. On
top of that, It will allow you to also sync any of the commercials that you hear on the radio so if there is a
service or event you liked hearing about, you can go back and get more information on it.
Shazam already provides relevant links to the items you Shazam. It will provide you links to Youtube videos if
available. This feature is expanding on that to create Youtube playlists with those videos. Youtube is owned
by Google and operates as one of its subsidiaries. Shazam also already has a partnership with Google so
this feature will continue to expand that partnership.
5. External Environment
Relevant economic, social and technological trends
Environment/Home Country
• This will be used for the United States and then if successful spread out to any radio broadcast worldwide.
Economic
• According the Social Security
Administration the average salary of
an American in 2014 was $44,596. The
mean was $28,851. Each was up
respectively 3.5% and 2.9% from the
year prior.
Source: Social Security Administration https://www.ssa.gov/oact/cola/central.html
6. Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4
2007 4.6 4.5 4.4 4.5 4.4 4.6 4.7 4.6 4.7 4.7 4.7 5.0
2008 5.0 4.9 5.1 5.0 5.4 5.6 5.8 6.1 6.1 6.5 6.8 7.3
2009 7.8 8.3 8.7 9.0 9.4 9.5 9.5 9.6 9.8 10.0 9.9 9.9
2010 9.8 9.8 9.9 9.9 9.6 9.4 9.4 9.5 9.5 9.4 9.8 9.3
2011 9.1 9.0 9.0 9.1 9.0 9.1 9.0 9.0 9.0 8.8 8.6 8.5
2012 8.3 8.3 8.2 8.2 8.2 8.2 8.2 8.1 7.8 7.8 7.7 7.9
2013 8.0 7.7 7.5 7.6 7.5 7.5 7.3 7.3 7.3 7.2 6.9 6.7
2014 6.6 6.7 6.7 6.2 6.2 6.1 6.2 6.2 6.0 5.7 5.8 5.6
2015 5.7 5.5 5.5 5.4 5.5 5.3 5.3 5.1 5.1 5.0 5.0 5.0
2016 4.9 4.9 5.0 5.0
External Environment
Relevant economic, social and technological trends
Economic
• Below is a chart of the United States Unemployment Rate in % showing that unemployment continues to
decrease. This can imply that people will have more access to technology.
Source: Bureau of Labor Statistics http://data.bls.gov/timeseries/LNS14000000
7. External Environment
Relevant economic, social and technological trends
Economic/Social
• According to the PEW Research Center 90%
of all adults have cell phones
• At least 84% of all income groups own a cell
phone
8. External Environment
Relevant economic, social and technological trends
Source: http://www.stateofthemedia.org/2013/audio-digital-drives-listener-
experience/audio-by-the-numbers/
• 92% of Americans still listen to some form of radio
Economic/Social
“According to Nielsen’s Music 360 2014 study, 93% of the
U.S. population listens to music, spending more than 25
hours each week jamming out to their favorite tunes. In
fact, 75% of Americans say they actively choose to listen
to music, which is more than they claim to actively
choose to watch TV (73%). Whether in the car (25%), at
work (15%) or while doing chores (15%), we spend big
chunks of our time listening to music. The difference from
times past, however, is that the way we individually tune is
as unique as the ear buds or headphones we sport while
listening.”
Source:http://www.nielsen.com/us/en/insights/news/2015/everyone-
listens-to-music-but-how-we-listen-is-changing.html
9. External Environment
Relevant economic, social and technological trends
Economic/Social
• According to eMarketer.com cell
phone use by 2019 in the United
States alone will hit 236.8 million
people
Source: http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/
10. External Environment
Relevant economic, social and technological trends
Technological
• Cell phone and Smartphones are the most owned technological device
• Most digital media time is spent by smartphone according to a study from 2014
Source: http://www.pewinternet.org/2015/10/29/technology-device-ownership-2015/
11. External Environment
Relevant economic, social and technological trends
Technological
• Shazam and Youtube are two of the most
downloaded apps for the Android operating
system
S
12. External Environment
Relevant economic, social and technological trends
Technological
• In table below is shown the forecast for the percentage of cars that will be in use with car
connected technology. The violet color represents the percentage that will be able to be
tethered to a mobile device. As the cars get more connected, this will make it easier for Shazam
to connect to your car’s radio.
Source: http://www.analysysmason.com/About-Us/News/Insight/connected-cars-Jun2014-RDME0/
13. External Environment
Nature and extent of demand (size of the market & price elasticity)
Market Size
• “eMarketer estimates that this year, there will be 190.5 million US smartphone users of all ages,
representing 73.4% of internet users and 59.3% of the population” All these users can be potential
Shazam and Youtube users as well.
• “YouTube has over a billion users — almost one-third of all people on the Internet — and every day
people watch hundreds of millions of hours on YouTube and generate billions of views.”
• “YouTube overall, and even YouTube on mobile alone, reaches more 18-34 and 18-49 year-olds than
any cable network in the U.S.”
• In 2010 alone there were 210 million people driving in the United States. ”A Pew Research study that
shows in 2013, 91 percent of Americans over the age of 12 still listen to the radio at least on a weekly
basis. That's down just 5 percent from 2001. People listening in their cars still makes up 44 percent of the
radio audience, compared with 29 percent at home or 15 percent at work.”
Price Elasticity
• Because of the existing relationships with Google and Youtube, the Shazam My Radio service should
start out as a free add on. The more traffic and downloads that Shazam has, the more revenue it can
make and also the more revenue its partners and advertisers will make.
Source: http://www.emarketer.com/Article/How-Many-Smartphone-Users-Officially-Addicted/1012800
https://www.youtube.com/yt/press/statistics.html, http://www.statista.com/topics/1197/car-drivers/
http://jalopnik.com/am-fm-radio-is-still-popular-thanks-to-cars-1558692811,
14. External Environment
Nature and extent of demand (size of the market & price elasticity)
Why will the market be receptive to Shazam My Radio?
• Shazam My Radio aims to bring more connectivity between you and either
music or a specific service or event.
• It will allow you to discover new artists and music and services while you are
driving and paying attention to the road. It will log the song or advertisement
for you so you can come back at a safe time to discover more information
about a song or an artist or the specific advertisement.
• By logging the radio commercials, you will be able to go back and get more
information about a specific service, concert or event you heard about.
15. External Environment
Industry structure (entry/exit barriers)
State of the Industry
For the Google market Shazam and Youtube where in the top 15
most downloaded apps
Possible Barriers to Market Entry
• Intellectual Property – Youtube might not
want to use the “Shazam My Radio” function
and integrate it into their users profiles
• Capital – It will cost both Shazam and
Youtube a small initial investment to develop
the interface and software for the product
Possible Barriers to Market Exit
• Specialized feature – Even though Shazam
has its partnerships with Google, It could have
a possible barrier because of that partnership
if they wanted to do this with Spotify or
Pandora for example.
16. External Environment
Industry structure (competition)
Shazam My Radio will bring enhancements to the following items:
• Shazam app – It will give us another way of discovering music, events and services
• Youtube – It will give us a generated playlist based off of what radio station we were listening to.
• Advertisers – Many businesses, events and services use radio to advertise. By being able to link
Shazam to them it will generate more business for them
Competition
• Shazam’s competition would change only a little with the addition of this feature. Besides
their current competition of Soundhound, MusicID, Musixmatch; they would now be adding
competitors such as IHeartRadio, TuneIn Radio and NextRadio
17. External Environment
Marketing Channels
The following are just a few of Shazam’s marketing channels
• Target
• Wharton School Of Businness
• Social Media (Facebook, Twitter, Google +, LinkedIn, Instagram
• “Shazam has worked with such brands as book publisher HarperCollins, The Wall Street
Journal, Coca-Cola, Starbucks, Jaguar, and Honda in various ways – from unlocking clues
to branded scavenger hunts, to generating additional TV ad content.”
• Word of Mouth
• Google, Youtube, Apple
Source: https://www.clickz.com/clickz/column/2430311/how-targets-new-ads-show-the-real-value-of-shazam
18. Internal Environment
Resources(top management, marketing, software engineering, finance
These are the resources and what’s needed to support Shazam My Radio:
• Top Management – We will need an initial capital investment from our top management. Also we will
need to negotiate with Youtube and Google as to how to integrate this into the current partnership.
• Marketing – They will need to make sure that we are staying true to our brand identity and not over
stepping into anyone else’s.
• Software Engineering – They will be needed to design the add on to the Shazam app. They will be
needed to debug it and to test it to make sure it works with many different car radios. Also they will need
to partner with Youtube and their engineers to see how to integrate it to make a playlist on Youtube.
• Finance – They will need to manage the costs of it included development, the initial investment, and
general costs to maintain this.
19. Internal Environment
Brand Diagnosis(current brand positioning, current pricing strategy, current
promotions and distribution strategies)
Shazam’s Company Statement
"Our mission is to help people recognize and engage with the world around them"
Current Brand Positioniing
Target Segment – Their target segment is everyone. They want everyone to be able to engage with the
world around them.
Point of Difference – It was the first company of its type. It was one of the first apps in the Apple App Store
back in 2008. In 2011 in connected your mobile phone to tv to get exclusives.
Frame of Reference – Shazam competes against other mobile audio recognition apps
Current Pricing Strategy
Optional Pricing – Shazam is mostly a free app. There is Shazam Encore that you can buy for $1.99 in the
google play store that removes the advertisements from Shazam
Psychological Pricing- The 1.99 makes it feel like you are getting the item on sale instead of just saying $2.00
Current promotions and distribution strategies
Shazam is everyone from commercials to newspaper ads and magazines to smartphones and smart tv’s. It
is preloaded in smartphones, tv’s and car radio systems.
20. Internal Environment
Problem definition and critical factors
Factors within the organization that will help Shazam My Radio
• Shazam already has partnerships with Google and Youtube
• Shazam has very similar software already developed for IOS and the team is in place and capable to
move it to other platforms
• Shazam is integrated into smart car radios, smartphones and smart tv’s
Factors within the organization that will hinder Shazam My Radio
Capital – Shazam, Google or Youtube may not want to invest more to develop the software and interface
that is needed
Technology – Shazam, Google or Youtube may not want to share any of its technological capabilities more
than it already has with each other
Brand Ideyntity - The brand might be seen more as a streaming service than an audio recognition service.
Google and Youtube might not want to partner more than they already have
22. Marketing Analysis & Segmentation
Who is/are the market?
My market is anyone who drives to work. According to the 2013 Us Census, 85.6%
of Americans drive to work. 76.4% drive alone
23. Marketing Analysis & Segmentation
Who is/are the market?
•64% of American adults now own a smartphone of some kind, up from 35% in the spring of 2011.
Smartphone ownership is especially high among younger Americans, as well as those with relatively high
income and education levels.1
•According to Nielsen’s Music 360 2014 study, 93% of the U.S. population listens to music, spending more
than 25 hours each week jamming out to their favorite tunes. In fact, 75% of Americans say they actively
choose to listen to music, which is more than they claim to actively choose to watch TV (73%)2
•According to Nielsen, radio reaches 242 Americans each week and at least 90% of each demographic.
1.http://www.pewinternet.org/2015/04/01/us-smartphone-use-in-2015/
2.http://www.nielsen.com/us/en/insights/news/2015/everyone-listens-to-music-but-how-welisten-is-changing.html
3.http://www.nielsen.com/us/en/insights/reports/2014/state-of-the-media-audio-today-2014.html
25. Market Analysis & Segmentation
What does the market buy?
This is a chart according to neilsen.com from
2014. It shows that Android has taken over the
market share from IOS in the United States
26. Market Analysis & Segmentation
When does the market buy?
To put it simply, we use our smartphones daily
27. Market Analysis & Segmentation
Where does the market buy?
Shazam is a global app that is
available in all major app stores
(Google Play, Apple App Store and
Windows Store)
28. Market Analysis & Segmentation
Why does the market buy?
It is free and lets people discover music, goods
and services
29. Market Targeting
Who is the target audience?
Shazam’s target audience is EVERYONE.
"Our mission is to help people recognize and engage with the world around them“
“Shazam is a mobile app that recognizes music and TV around you. It is the best way to discover, explore
and share the music and TV you love. Shazam connects
more than 500 million people. It took us 10 years to reach 1 billion tags, 10 months to reach 2 billion, 3
months to go from 10 to 12 billion... It's an amazing app, available now in the Apple, Android and Windows
stores. And we're always looking for new and innovative ways to delight our users.”
Source: http://www.shazam.com/company
30. Market Positioning
Proposed Brand Positioning
Shazam My Radio’s objective is to enhance the radio experience through the
Shazam app and brand. Let the app sync with the radio so you can go back at
a safe time to discover new music, events, and goods and services.
By integrating Shazam more with the radio and the partnership that it currently
has with Youtube/Google, the user numbers would increase do to the fact that
Shazam currently can not constantly and consistently sync with the car radio.
You will be able to go back and look at what you were listening to in your car
later while you are not driving around. Whether it be new artist or maybe an
advertisement for a good or service, you would be able to interact more with
that artist or business
Shazam My Radio lines up with Shazam in that it will be in the Shazam app as a
feature where you select your station(ie 101.9 fm) and tell it when to start syncing
and then connect it to your Youtube or google account
32. Operations Plan
How does it work?
Shazam My Radio will be built right into the Shazam App. Activating it and using it only require a few steps.
1. In the Shazam app, make sure you are logged into your Shazam account. It will also ask in you would like
to link any other accounts to your Shazam account. Make sure to link your Youtube or Google Play
account.
2. Turn on your car’s radio
3. In the Shazam app, hit the “Touch to enable Shazam My Radio”. From there Shazam will use its database
to see the song you are listening to and then ask if you are listening to the radio.
4. Hit Yes that you are listening to the radio and from there Shazam will search for the station that the
particular song is on. Then it will generate the station you are on and ask if you want to continue to
Shazam My Radio?
5. Select yes you want to continue and then you are all set. From there Shazam will use Youtube to search
for videos related to the song or advertisement you are listening to and then create a playlist based off
that particular day (example: Friday may 3.)
6. When You are done on the Shazam app just hit end to Shazam My Radio and it will stop logging.
7. From there, log onto your Youtube account to see what you were listening to on the radio and enjoy!
Distribution Channels – Because Shazam My Radio is built into the application, the distribution channels are
the same.
33. Operations Plan
Cost, Quality, Variety, and Time
Cost
• Labor – Development costs of software
engineers, top management, marketing, and
finance departments involved with creating
the product.
• Fees – Any fees that Google/Youtube or any
other of Shazam’s partners impose on the
project
• Efficiency in using Shazam My Radio
Quality
• Performance quality would be based on how well
does it work in recognizing music and
advertisements. Also it would be based on how user
friendly it is.
• Conformance quality would be base on if the
product works without draining too much battery or
using too much data for the user.
• Proccess quality is measured by feedback form the
customer. Ratings in the google play market ect.
Variety
• With Shazam My Radio the variety is limitless
due to your ability to shazam music or
advertisements for events and goods and
services
Time
• How much time does it take to create the playlist on
youtube
• How much time does it take to recognize if a song
or an advertisement is playing
The focus for Shazam My Radio is quality. By having a quality product, we will bring in more users to the
app. If we use too much batter or data, it will cause users to look to a different app.
35. Financial Plan
Estimate of costs and revenue
Revenue Forecast
Fall 2015 2016 2017 2018 2019 2020
Market Forcasts
Initial Market Size (Users, millions) 184.2
Market Growth Rate (%) 8% 7% 4% 3% 1%
Market Size (Users, millions) 184.2 198.5 211.5 220.0 226.0 229.0
Corporate Market Share
Initial Market Share (%) 54%
Market Share Annual Growth Rate (%) 11.5% 11.5% 11.5% 11.5% 11.5%
Market Share (%) 54% 61% 67% 75% 84% 94%
Pricing Strategy
Unit Price ($/User) 0.48 0.48 0.48 0.48 0.48 0.48
Revenue ($, millions) 48.0 57.7 68.5 79.5 91.0 102.8
Assumptions
• Assume a constant market share annual growth rate of 11.5% to come close to a target market share of 93% by 2020..
• Assume a constant price per user over time, where price per user = Shazam's 2013 revenue dollar / Number of Users
• Price per user = $48 million/100 million users = $0.48 per user
Variable Values Source
Initial market size of
Shazam 100 million users
http://news.shazam.com/pressreleases/shazam-surpasses-100-million-
mobile-monthlyactive-users-1042187
Shazam's 2013 Revenue $48 million
http://musically.com/2014/03/28/shazams-last-fiscal-year-saw-revenues-
rise-to-31mwhile-losses-narrowed-to-2m/
Market size and growth
rate of smartphone users
See “External
Environments”
Section
http://www.emarketer.com/Article/2-Billion-Consumers-Worldwide-
Smartphones-by2016/1011694.
36. Financial Plan
Estimate of costs and revenue
Cost Forecast
Fall 2015 2016 2017 2018 2019 2020
Cost of Goods Sold (COGS)
COGS ($, millions) 4.23 4.23 4.23 4.23 4.23 4.23
Selling, General, and Administrative
SG&A Expense Growth Rate (%) 0.10 0.10 0.10 0.10 0.10
SG&A ($, millions) 54.5 59.9 65.9 72.5 79.7 87.7
R&D
R&D Upfront ($, millions) 0.5
R&D Recurring ($, millions) 4.8 5.8 7.2 8.2 9.4 10.6
R&D ($, millions) 4.8 6.3 7.2 8.2 9.4 10.6
Assumptions
• Assume Cost of Goods Sold (COGS) remains the same as in 2013
• Assume a constant 10% SG&A growth rate since 2013, which accounts for yearly salary increases and bonuses.
• Assume Shazam spends 10% of their revenue on R&D each year.
• Assume Shazam My Radio requires an R&D upfront cost to hire 5 additional software engineers making $100,000 each in 2016.
• Assume Shazam My Radio requires 3 software engineers making $100,000 each for R&D recurring versioning cost, after launching in 2016.
• R&D Recurring Cost of Fall 2015 and 2016 = 10%*Revenue
• R&D Recurring Cost After 2016 = 10%*Revenue + (3 engineers)*($100,000/engineer)
Variable Values Source
2013 COGS $4.23 million
http://musically.com/2014/03/28/shazams-last-fiscal-year-saw-revenues-rise-to-31m-while-losses-
narrowed-to-2m/
2013 SG&A $45 million
http://musically.com/2014/03/28/shazams-last-fiscal-year-saw-revenues-rise-to-31m-while-losses-
narrowed-to-2m/
37. Financial Plan
Estimate of costs and revenue
Forecast
Summary
Fall 2015 2016 2017 2018 2019 2020
Sales ($, millions) 48.0 57.7 68.5 79.5 91.0 102.8
COGS ($, millions) 4.23 4.23 4.23 4.23 4.23 4.23
Gross Profit ($, millions) 43.8 53.4 64.3 75.2 86.8 98.6
SG&A ($, millions) 54.5 59.9 65.9 72.5 79.7 87.7
R&D ($, millions) 4.8 6.3 7.2 8.2 9.4 10.6
EBITDA ($, millions) -15.5 -12.7 -8.7 -5.5 -2.3 0.3
The table above estimates Shazam’s using forecasted sales and costs. EBITDA is forecasted to increase. This
is great for the company as it has never reported a profit.
Because Shazam is price elastic, it is important to keep a version of Shazam free. Shazam My Radio should
be a free service. By keeping it a free service, more businesses, events, radio stations and musicians will want
to be part of it. Because of that, revenue will increase and profits will go down.
Source: http://www.forbes.com/sites/hughmcintyre/2015/01/22/shazam-is-now-worth-1-billion-despite-having-never-made-a-profit/
39. Timeline of Activites
Shazam My Radio will go through 6 phases. The following is a timeline for development starting in June of
2016
June 1, 2016 – Project Starts
July 1, 2016 – Concept Review
August 1, 2016 – Preliminary Design Review
September 1, 2016 – Critical Design Review
October 1, 2016 – Beta Testing Complete
November 1, 2016 – Final Design Review
November 14, 2016 – Release Date
40. Timeline of Activites
June 1, 2016 – Project Starts
July 1, 2016 – Concept Review
August 1, 2016 – Preliminary Design Review
September 1, 2016 – Critical Design Review
October 1, 2016 – Beta Testing Complete
November 1, 2016 – Final Design Review
November 14, 2016 – Release Date
• June 1, 2016 – The Shazam My Radio teams will get together to define the project. Marketing will start to
think of the branding of the product. The engineering teams at Youtube and Shazam will get together to
sketch out the interface
• July 1, 2016 – The team will get together with top management of Shazam and Youtube to present
Shazam My Radio. After the meeting the teams working on the project will take suggestions and tweak
the project
• August 1, 2016 – A Prototype will be presented to both Shazam and Youtube management. From here to
the next date, feedback will be given and put into the prototype
• September 1, 2016 – Another version will be presented to upper Shazam and Youtube management.
Shazam and Youtube teams will work on the interface and go to beta testing till the next date.
• October 1, 2016 – Beta testing will be complete and data provided to Youtube and Shazam
management. From there will be more tweaking of the app and interfaces of Shazam and Youtube
• November 1, 2016 – A Final design review with top management of Youtube and Shazam. From there 2
weeks will be given for any last minute touch ups or add ons.
• November 14, 2016 – Public release date
41. Evaluation
How is Shazam My Radio a success?
1.Growth in company profits and revenues
2.Growth in Users
3.Growth in market share
4.Positive ratings in the Android and Apple app stores
5.The company makes a profit!
42. Evaluation
How is Shazam My Radio a failure and actions to take:
1.There is no interest from the public and the market share begins to
decrease. From there customer feedback should be reviewed.
New marketing strategies should be taken.
2.Shazam My Radio has bugs after release. From here the software
engineers should be called to figure out the problem.
3.The company does not make a profit. If the actions from above
are already taken then asking for open feedback is needed.
Research groups should be conducted to see what can be
salvaged of the project. Review financial statements to see what
cost has incurred because of Shazam My Radio and see where
costs can be cut.