1. Acknowledgements……………………………………………………………….p.1
Executive Summary……………………………………………………………....p.2
0.0 Introduction
0.1 Purpose of Document………………………………………………...p.3
0.2 Contextual Reading…………………………………………………..p.4
0.3 Methodology…………………………………………………………p.5
0.3.1 Part 1 – The Client Brief………………………………….p.5
0.3.2 Part 2 – The Creative Strategy……………………………p.5
0.3.3 Part 3 – The Message Delivery…………………………...p.6
0.4 Research Sources…………………………………………………….p.7
0.4.1 Primary Research…………………………………………...p.8
0.4.2 Secondary Research………………………………………...p.9
1.0 The Client Brief…………………………………………………………......p.11
1.1 Macro Analysis …………………………………………………........p.11
1.1.2 A Market Overview ………………………………………..p.11
1.1.3 Competitor Analysis……………………………………..…p.16
1.1.4 Porters Five Competitive Forces…………………………...p.17
1.1.5 Conclusion of Macro Analysis……………………………..p.19
1.2 Micro Analysis……………………………………………………….p.20
1.2.1 SWOT Analysis……………………………………………p.20
1.2.2 The Marketing Mix………………………………………...p.24
1.2.3 Conclusion of Micro Analysis……………………………..p.25
1.3 Project/Marketing objective………………………………………….p.25
1.4 IMC Task…………………………………………………………….p.26
1.5 Timeframe…………………………………………………………....p.27
1.6 Budget………………………………………………………………..p.28
2.0 The Creative Strategy………………………………………………………p.29
2.1 IMC Task Review……………………………………………………p.29
2.2 Communication Objectives…………………………………………..p.30
2.3 About the Brand……………………………………………………...p.32
2.3.1 Insights into the brand……………………………………...p.33
2.3.2 Brand Changes……………………………………………..p.36
2.4 Positioning Issues…………………………………………………….p.38
2.5 The Decision Making Process………………………………………..p.44
2.5.1 Influences…………………………………………………..............p.46
2.6 Communications Brief………………………………………………..p.48
2.7 Creative Solutions…………………………………………………….p.49
3.0 The Message Delivery……………………………………………………….p.50
3.1 IMC Performance Targets…………………………………………….p.50
3.2 Campaign Strategy……………………………………………………p.52
3.2.1 Recommendations ………………………………………………....p.53

2. 3.3 Micro Needs…………………………………………………………p.55
3.4 Macro Needs………………………………………………………...p.57
3.4.1 Push Strategy: Pre Sell…………………………………….p.58
3.4.2 Push Strategy: Sell In……………………………………...p.58
3.4.3 Pull Strategy: Sellout………………………………………p.61
3.5 Activities by Month and Budget…………………………………….p.70
3.5.1 Time Line………………………………………………….p.70
3.5.2 Budget……………………………………………………..p.71
3.6 Performance Outcomes……………………………………………...p.72
3.7 Vertical Integration………………………………………………….p.75
3.8 Horizontal Synergy………………………………………………….p.76
3.9 Campaign Outcomes………………………………………………...p.77
Tables and Graphs
Table 1: The Marketing Mix………………………………………………p.24
Table 2: EMI Digitals Communication Brief……………………………. p.48
Table 3: Communications Mix Review………………………………...….p.52
Table 4: Campaign Countdown Chart………………………………….…p.53
Table 5: Campaign Timeline………………………………………………p.70
Table 6: Campaign Budget…………………………………………………p.71
Table 7: IMC’s Vertical Integration………………….……………………p.75
Table 8: EMI’s interim EBITA 2004………………………………………p.81
Table 9: EMI’s Annual Financial Summary………………….……………p.82
Graph 1: Paid vs. llegal downloading……………………………………...p.12
Graph 2: Music Majors Market Share………………………………..……p.26
Graph 3: Brand Attribute Ratings…….……………………………………p.34
Graph 4: Overall Fishbein Ratings…………………………………………p.36
Graph 5: EMI Products Share……...………………………………………p.79
Graph 6: Attributes for Online stores………………………………………p.89
Graph 7: Target Consumers Favourite EMI Artists………….……………p.92
Appendices…………………………………………………………………….p.78
Appendix 1: Company Profile………………………………………….p.78
Appendix 2: Financial Situation………………………………………..p.81
Appendix 3: Competitor Profile………………………………………..p.83
Appendix 4: Competitor Finances……………………………………...p.87
Appendix 5: Brand Insights…………………………………….............p.88
Appendix 6: Music Market Questionnaires…………………………….p.97
Appendix 7: Game Mechanics………………………….……………..p.102
Appendix 8: Media Platforms and Statistics…………….……………p.104
Glossary………..……………………………………………..............................p.120
Bibliography........................................................................................................p.1.22

3. 1
Executive Summary
Purpose of Project
The purpose of this project is to provide EMI with an integrated marketing
communications solution for the company’s online music store launch in August
2005.
The Opportunity
The opportunity is to extract more from the brands extensive music publishing
products by adopting digital music channels and developing a core source of future
company revenue. In terms of EMI’s brand image the adoption of the online market is
an opportunity to invigorate the tired corporate identity and position itself as a leader
in musical innovation.
Investment Risk
EMI has invested 1.5 million for a 20 month IMC campaign which will be distributed
on Advertising, Direct Marketing, Public Relations and Sales Promotion activities.
EMI expects the outcomes of this investment to increase the company’s annual music
publishing revenue from 138 million to 170 million and increase the company’s
market share by from 17% to 21% by May 2007.
The Timescale
Push activities towards online and media channels will commence in June 2005 in
preparation for the web stores August launch, with pull activities beginning in August
2005 to attract consumer trail and purchase.

4. 2
0.1 Purpose of Document
The purpose of the document is to provide a detailed IMC solution proposal for the
launch of EMI’s online music store in August 2005, targeting 15 to 35 year old
consumers who currently represent 500,000 plus monthly legal UK music
downloader’s and in store CD purchasers1
.
The following plan identifies the potential opportunity for the re-invigoration the EMI
brand by introducing the companies own online music store, thereby opening up the
brands vast music catalogue to B2C markets, and extracting more from the labels key
music publishing assets.
The campaign’s budget of 1.5 million is to be used on an integrated combination of
Public Relation, Direct Marketing, Advertising and Sales Promotion activities in order
to stimulate a 3% increase of the companies digital revenue by 2006. The long term
purpose of this campaign is to establish EMI as a major online competitor increasing
both music publishing sales from 138 million to 170 million and market share from
17% to 21% by March 2007.
1
Mintel Report Pre-recorded Music UK (2003)

5. 3
0.2 Contextual Reading
An abundance of sources have been used to research this IMC campaign planning
project, inspiring both the creative process and strategic implementation. Each of
these resources provided essential contextual and academic support to the overall
solution, nevertheless the following texts have been of paramount importance2
.
Marketing Management Text Book:
Peter Doyle’s Marketing Management and Strategy, Third Edition 2002.
Marketing Communications Text Book:
David Pickton and Amanda Broderick’s Integrated Marketing Communications
Second Edition 2005.
Main Organizational Input:
EMI Annual Report 2004
Main source of Market Data:
Mintel Report Pre-recorded Music UK (2003)
Main Online Resource:
http://www.EMI Group.com
2
See Bibliography

6. 4
0.3 Methodology
This section defines the methodology used throughout the IMC Campaign plan.
0.3.1 Part 1 – The Client Brief
Part 1 establishes the internal and external factors for the IMC task using classical
marketing models. The music market was analysed using the PESTLE model to
highlight the major macro environmental factors and trends influencing the music
market at present. Michael E .Porters 1980 Five Forces model was used in order to
highlight the threats from the current music industry competitors, emerging entities,
suppliers influence and consumer’s purchasing power.
The micro environment was analysed using the SWOT model, which identifies EMI’s
current position for launching an online music store, based on organisational strengths
and weaknesses, potential market opportunities and the possible threats posed by
entry to the online market. Philip Kotler’s 4 promotional “P’s model was used to
construct a marketing mix for EMI’s online store , thereby illustrating the stores
benefits and establishing a contextual promotional setting for Part 2 of the document.
0.3.2 Part 2 – The Creative Strategy
This section of the document necessitated exploratory research into the EMI brand
image and target consumer’s attitudes towards online music, in order develop an
effective strategic communications platform for EMI’s brand extension.
Part 2 of the document began by outlining a focused set of communications objectives
using the SMMARRT business model to ensure the plan kept a clear and precise

7. 5
strategic alignment with EMI’s business and marketing objectives. The use of the
brand wheel model taught by Westminster Business Schools Advertising
Management lecturer Trevor Wright, outlined EMI’s core brand values and themes,
and the Fishbien model taught by Buyer Behaviour lecturer Frank Auton, identified
the necessary changes which were required for the brands successful market
orientation, based on consumers attitudes towards online music.
Peter Doyle’s Marketing Management and Strategy text book (2002) helped guide the
segmentation, targeting and positioning of the online music store in the minds of the
15 to 35 year old target consumers. While Peter Olsen and Klaus Grunert’s book on
Consumer Behavior and Marketing Strategy, (1999) assisted in determining the target
consumers decision making and purchase process of pre-recorded music products.
Finally David Ogilvy’s communication brief was used to direct the plans creative
solution, setting up the required strategic platform for Part 3’s message delivery.
0.3.3 Part 3 – The Message Delivery
Part 3 of the document delivers the campaign solution via the four key marketing
communications tools, namely Public Relations, Advertising, Direct Marketing and
Sales Promotions. These tools are measurable against the performance targets
outlined by EMI.
The message delivery strategies were primarily assisted by Peter Doyle’s Marketing
Management and Strategy text book (2002) which provided practical guidance for
implementing effective and systematic internal communications strategies.
Westminster Business Schools Marketing Communications course leader Peter
Farror’s T-set techniques and Sales Promotion lectures on Push and Pull Strategies

8. 6
provided a solid basis for constructing the plans communication activities to win
support from relevant channels of distribution and attracting consumer participation.
However the core sources of inspiration for the campaigns communication strategies
ultimately derived from online sources such as marketingpower.com and
keenbranding.com along with numerous others illustrated in the documents
Bibliography .These websites provided detailed knowledge regarding new marketing
communication techniques being applied to contemporary digital channels.
In evaluation of the IMC outcomes Peter Farror’s Cascade of Dispersion model
measures the campaigns Vertical Integration by reviewing the completion of the
objectives and tactics, alongside the overlying corporate mission and vision.
Horizontal synergy will be measured using Peter Farror’s T-set analysis by evaluating
both the efficiency and the effectiveness in harnessing internal resources to produce a
significant synergistic impact3
.
0.3.4 Research Sources
This section aims to clarify the campaigns primary and secondary research
methodology conducted from November 2004 to August 2005. The campaigns
research was fundamental in establishing appropriate task direction and generating a
coherent IMC campaign solution in accordance to the identified market opportunities.
3
Definition of Synergistic Impact by Peter Farror (2005) Sales Promotions and Field Theatre
Management: “Mutually beneficial outcome created when two or more elements are harnessed
together to achieve a common purpose and collectively outperform what could reasonably be expected
by those same elements working independently”.

9. 7
0.4.1 Primary Research
Two questionnaires were sent to a random sample of 40 individuals representing the
current 500,000 monthly UK music downloader’s and in store CD purchasers aged
between 15 to 35 years of age4
. The research was conducted to gain an insight into
target consumer’s attitudes towards the EMI brand and to understand what the
campaigns target consumer’s value when purchasing music from an online music
store5
. The Questionnaires methods are detailed below.
Music Habits Questionnaire
This questionnaire asked a series of single and multiple choice questions on
consumer’s music listening habits, acquiring the following primary data:
• Demographics
• Preferred Music Platforms
• Preferred Online Music Content
• Music Purchasing Habits
• Favourite Artists
• Consumers Reference Sources
Online Purchasing Habits Questionnaire
This questionnaire used the Fishbien model to rate the following perceptions and
attitudes towards EMI and the brands market competitors:
• Brand
• Innovation
• Musical Variety
4
See Appendix 6: Questionnaires
5
See Appendix 5: Brand Insights

10. 8
• Artist Quality
• History In Music
Although the interviews were a sample of the campaigns target population it must be
acknowledged that this data was not substantial quantitative research on the scale that
would be normally required for such a campaign launch. It did however assist in
highlighting some of the weaknesses of the EMI brand amongst the campaigns target
consumers and gave a vital insight into music buyers present day wants and needs.
0.4.2 Secondary Research
The secondary research sources derived from multiple internet websites and industry
reportage. The primary source was EMI’s corporate website (www.EMIGroup.com)
which provided interim and annual reports alongside downloadable PowerPoint
presentations such as “The Digital Opportunity”, EMI Annual Media Conference,
(March 2005).
In addition numerous other websites were used to access product information and
download reports on current online market competitors such as Apple, Napster,
Universal Music and Sony BMG. Online news articles from the BBC and The Media
Guardian provided up to date referenced statistics and allowed the project to keep
abreast of the latest music trends. This was supported by official data and information
from the British Phonographic Industry website ( www.BPI.co.uk) , along with
continual referral to Mintel’s online Market Reports, most notably Pre-recorded
Music UK (June 2003) and CDs, Records and Tapes UK (October 2002).

11. 9
A plethora of other secondary resources on the music industry, new online
technologies and products was gathered for the IMC campaign, all of which can be
illustrated in the documents Bibliography.

12. 10
1.0 The Client Brief
Part 1 of the proposal essentially answers the question “where are we now?”6
. This
will be achieved by providing a detailed analysis of the UK music industry against
EMI’s current capabilities for exploitation of potential marketing opportunities.
1.1 Macro Analysis
This section provides a political, economical, social, technological, legal and
environmental perspective of the UK music industry including an overview of the
market.
1.1.1 A Market Overview
The music industry is at a crucial point in its existence. Over the duration of the last
five years the global music market has experienced unprecedented sales decline and
growth stagnation. Many environmental factors have contributed to the industry
decline, such as lack of investment by complacent music majors in new musical talent
and slow adoption of emerging digital channels along with increasing CD piracy7
.
Yet the most prominent factor is the dramatic rise of illegal online peer to peer
exchange networks. According to the (IFPI) in January 2005 there are currently
870 million illegal music files circulating across the internet through peer to peer
networks , with 8.6 million illegal internet downloader's of illegal music files.
6
Five Questions of the Planning Cycle: Stephen King (1977)
7
Mintel Report Pre-recorded Music UK ( 2003) June, Mintel.com

13. 11
Political Factors
Intellectual Property Theft
The recent intellectual property theft legislation by the UK government Alliance
Against Counterfeiting and Piracy department, is as yet proving ineffective in
deterring peer to peer file sharing networks and organised piracy syndicates. The
importance of further action by the government is required as local businesses suffer
economic loss as a result of CD and internet piracy.8
.
Economic Factors
Market Turnover
Legal online downloads accounting for less than 5% of the music industries annual
revenues. Peer to Peer numbers grew to 6.4 million in July 2004 from 5.1 million in
August 2003, illustrating the problems faced by legitimate download services to
achieve significant sales return via online channels9
.
Graph 1: Paid vs. llegal downloading
8
IFPI Music Piracy report 2002
9
http://media.guardian.co.uk/newmedia/story/html

14. 12
Social Factors
Educated Consumers
Contemporary consumers are increasingly more informed via internet price
watchdogs and comparison websites, leading to the rise of online music purchasing.
This is due to the lower price incentives offered in comparison to high street and
supermarket competitors. Online stores offer a more intensive and varied selection of
downloadable music tracks. With increasing societal work schedules reducing
consumer’s free time, the importance of online convenience is a major purchasing
benifit for home users.
Spending Habits
The fluctuation in age and spending habits of the UK population is dictating the music
industries core youth “impulse purchasing” market segment. The emergence of
alternative past times over the last decade such as fast food restaurants, shopping
malls and the mass consumption of fashion items by young consumers10
are factors
which contribute to the decline in UK music sales. These are a potent threat to the
purchasing pull of the latest music releases.
Technological Factors
PC Penetration
The increased penetration of personal computers into UK households is up from 34%
in 1998 to 54% in 200411
. The domestic access of multi-media replication hardware is
supporting the rapid increase in the frequency of P2P network filesharing12
.
10
CDs, Records and Tapes - UK – (October 2002)
11
CDs, Records and Tapes - UK – (October 2002)
12
2002 General Household Survey (GHS)

15. 13
Innovation
The continued innovation in mobile technology is fragmenting conventional music
distribution channels, subsequently creating new mediums and platforms for
consumers to access their music. The most notable are MP3 hardware devices such as
Mini-discs players, Apple Macintosh’s fashionable Ipod music player and the
continual breakthroughs in mobile phone, MP3 and video hybridisation technology.
Server Advancements
The sustained advances in web-server compression technology are producing peer to
peer file sharing software programmes like Kazaa and Newsbin. The dramatic
increase in domestic internet broadband subscriptions (currently over 5 million in the
UK13
) and the development of download technology are facilitating faster digital
exchange and distribution of music.
Legal Factors
Civil Action14
The increased media coverage and recent civil action taken by the music industry
body, The British Phonographic Industry (BPI) is serving to raise awareness of the
illegality of peer to peer exchange throughout the UK. Scheduled BPI advertising
aimed at the educating consumers to the alternative legal channels of music
accessibility is critical in halting the UK music market decline15
.
13
ofcom.org.uk

16. 14
Legislation
There is a great necessity for a common legislation standard in digital rights
management as the attempts to halt online piracy takes industry prevalence. The
music majors have been late to act on music piracy, resulting in public relations
disputes and subsequent brand image problems as public and file-sharing networks
suffer legal prosecutions in a desperate attempt to stifle piracy.
Environmental Factors
The Music Majors
The music industry major’s oligopolistc market dominance is resulting in
complacency and a significant lack of diversity in the present day music market. Over
the duration of the last decade the major’s reluctance to invest in music and
technological experimentation has resulted in market stagnation as music purchasing
consumers become increasingly reluctant to purchase music from short term pop
music from manufactured acts16
.
Media Fragmentation
The fragmentation of the media is producing unforeseen direct and indirect
competition. The innovation within the Television industry has spawned multiple
music related channels from MTV and digital audio channels available through Sky
TV and the BBC. Also the dramatic rise in home usage of video game hardware
consoles and DVD players are all potent alternative mediums to the music industries
pivotal youth market17
.
16
“Record industry sues fans for illegally downloading music from internet” (2004) Patrick Barkham
17
Mintel Report Pre-recorded Music UK ( 2003) June ,Mintel.com

17. 15
1.1.3 - Competitor Analysis
This section introduces the key music market players. The table below delivers brief
details of the main online services currently available18
.
UK ONLINE MARKET 2004
Major Existing Services iTunes
Sony Connect (SONY/BMG)
Napster
OD2 partners
Mycokemusic.com
Virgin Download Store
Freeserve
MSN
Tiscali
NTL
Big Noise Music
GWR
HMV
MTV
Other
Wippit ( WARNER)
Metrotunes
Ministry of Sound
Streets Online
Woolworths
Playlouder
Karmadownload
War Child Music Trax2Burn
Vitaminic
Playlouder
Planned Launches
For 2005
Mean Fiddler
Easymusic ( EasyJet.com)
Yahoo
Rhapsody
Figure 1: Online Companies
19
18
See Appendix 3: Competitor Profile
19
www.ifpi.org

18. 16
1.1.4 Porters Five Competitive Forces
To analyse the competitive nature of the music industry Porters Five Competitive
Forces model will be adopted20
.
Figure 2: Porters Five forces Model
Competition within the industry - High
The intensive industry competition has increased as online markets develop. The entry
by previously non music-orientated companies such as Apple with there market
leading iTunes music store and Microsoft’s recent entry with the msn music store has
lead to high competition. The recent entry by Sony/BMG, Warner, Universal and
numerous retail companies will increase the industry competitiveness over the coming
years21
. See Appendix 3 “competitor profiles” for in-depth competitor insights.
20
http://valuebasedmanagement.net/
21
http://media.guardian.co.uk/newmedia/story/0,7496,1035400,00.html

19. 17
Power of Suppliers - High
Online companies rely on music publishing companies for new musical products to
increase consumer purchasing. The power of the suppliers in the music industry are
high as the music is still predominantly with the music major’s. This is due to their
ownership of extensive back catalogues and publishing rights of contemporary
contracted artists.
Power of Buyers (B2C) -High
The influence of buyers in music market is extremely high as customer’s opt for
online service over traditional in store CD’s. The extensive choice of websites enables
“web surfers” to shop in virtual stores to gain access to the cheapest music22
.
Threat of Substitution - Medium
The threat of substitute services is medium as competitors invest in technological
innovation stimulating new mediums and platforms of consumer music access. Music
access via Mobile Phones, Digital Audio Broadcasts (DAB) and Digital TV music
channels along with the scheduled launch of digital vending via high street “ATM”
consoles deem a significant threat to legitimate online services23
. (See Appendix 3)
Threat of New Entrants - Medium
As in store CDs sales decline, the threat by high street retailers such as HMV,
Dixon’s, Oxfam, Virgin Megastore, and supermarkets chains like ASDA and Tesco’s
to the digital market. As consumers opt for the cheaper prices, convenience and
22
Napster gives away MP3 players story (2004) Ashley Vance
23
http://www.musictank.co.uk/industry_feat.htm

20. 18
variation, the low barriers of entry to the digital market place allows established
retailers unrestricted entry into the digital music market24
.
Figure 3: New Entrants to the Digital Market
1.1.5 Conclusion of Macro Analysis
The music market faces many threats to its growth and sales revenue as the rise in
piracy and declining CD sales induce stagnation throughout the industry. This
requires drastic action by music companies like EMI, Sony/BMG and Universal to
encourage legal consumer purchasing25
. The call for more stringent copyright laws to
the UK government would assist the majors in the fight against peer file-sharing.
Moreover there is a high need for financial investments in music experimentation and
online adoption in order to move the industry into the digital age.
24
Tesco’s begins music-download site, 8 November, 2004
25
Music industry presses for common standard for downloads, Owen Gibson, (2004)

21. 19
1.2 Micro Analysis
This section of the document contains an overview of EMI’s current status in the
music market26
.
1.2.1 SWOT Analysis
Strengths
Music Catalogues
EMI’s ownership of the world’s largest catalogue of musical rights includes high
calibre artists like The Beatles, Frank Sinatra, Nat King Cole, and the Rolling Stones.
This catalogue generates sustained revenue through radio airplay and the distribution
of compilation albums to affiliate companies. The global revenue from music
publishing for the 2003-04 financial year stood at £1,723m generating a significant
profit to re-invest in future music talent and a more intensive online presence27
.
Contracted Artists
A vast collection of successful contemporary musical artists and songwriters are
attached to the EMI music label, most notably Robbie Williams, Blur, Norah Jones
and Coldplay who are all enjoying recent UK album success. EMI’s key source of
revenue however lies in singles sales with its domination of the UK chart, which was
illustrated with EMI’s artists producing 14 out of the top 20 UK selling singles in
2004.
Figure 4: EMI’s Contracted label Artists
26
See Appendix 1: Company Profile
27
EMI’s Annual Report 2004

22. 20
The recent acquisition of pop acts such as Kylie Minogue, Will Young, Britney
Spears, The White Stripes, and Sting contribute to the companies strongly poised
position for generating future revenue28
.
The Organisation
EMI has a focused organisational business culture of progression, commitment to
quality and innovative music productions. As a company EMI has a history of over
100 years of musical heritage and are responsible for promoting many of the most
iconic music stars of the last century. EMI is also committed the future of music
which embraces new musical styles and channels of accessibility29
.
Weaknesses
Market Complacency
The inadequate company innovation and market complacency over the last decade has
culminated in a tired brand image within the industry, as reluctance to experiment
with new music talent and the slow acknowledgement of alternative revenue channels
both in digital and merchandising opportunities. This has resulted in a dramatic fall in
market value from £6.5 billion in 2000 to £800 million today30
.
Undeveloped Online Potential
EMI’s online initiative has failed to maximise the digital market potential since its
low scale advertising launch in 2003 in conjunction with online distributor OD231
. As
competitors such as Warner and Sony/BMG release there own branded online stores,
28
EMI’s Annual Report 2004
29
news.bbc.co.uk/1/hi/business/4024575.stm
30
EMI sees digital future, ( 2003) Robert Langford
31
EMI’s Annual Report 2004

23. 21
EMI’s is facing the threat of decreased market share as the main competitors embrace
the digital markets.
Opportunities
Digital Innovation
EMI’s market opportunities exist within the exploitation of the emerging digital
revenue channels by investing in rigorous marketing and advertising initiatives. This
would build upon established brand saliency and permit the company to compete
against established online entities and drive the company forward into the digital
age32
.
Business Alliances
Future growth is dependant on the formation of business alliances with alternative
media companies to produce product expansion. The opportunities to diversify into
product merchandising, music video productions, film TV and alternative media
would re-invigorate EMI as an organisation. As traditional media platforms fragment,
opportunities to lead the market in mobile technology integration and be at the
vanguard in new ways in which consumers access music33
.
32
Why EMI is singing the blues”, Nick Louth, 2004,
33
EMI Annual report 2004

24. 22
Threats
Piracy
Escalating online peer to peer exchange of copyrighted MP3’s and continued CD
piracy threatening to engulf the music industry, stifling industry growth and sales
revenue. The development of independent artistes threatened, as piracy eliminates a
key source of income for struggling musical independents attempting to achieve
industry recognition34
.
34
CDs, Records and Tapes - UK - October 2002-Mintel.com

25. 23
1.2.2 The Marketing Mix
The following table delivers EMI music stores 4 marketing “P’s. 35 36 37
Table 1: The Marketing Mix
35
EMI annual report 2004
36
apple./iTunes.co.uk
37
www.mycokemusic.com

26. 24
1.2.3 Conclusion of Micro Analysis
EMI current online sales represent 2% of the group turnover, the strong back
catalogue of music stars and current third position in the music market permits the
organisation an opportunity to seize the digital revenue channels and grow alternative
revenue streams38
. EMI should focus on implementing appropriate strategies to attain
business growth and increase market share from the unexploited digital domain.
1.3 Project/Marketing Objective
The marketing objective is to launch EMI's online store in the summer of 2005 to the
UK market. The mission is to embrace the digital music channels and consequently
increase incremental online company revenue from the present 2% recorded in 2004
to 5% by May 200639
.
The long term task of IMC campaign is to reduce the gap between second placed
Sony BMG with a 24% market share and the market leaders Universal Music with a
26% share. The campaign aims to catapult EMI back amongst the top music industry
majors by increasing market share from 17% recorded in 2004 to 21% by 2007. This
would increase annual publishing sales from 138 million to 170 million by March
2007.
38
EMI Annual Report 2004
39
EMI UBS Media Conference Presentation 2004

27. 25
Graph 2: Music Majors Market Share
1.4 IMC Task
The task of this integrated marketing communication campaign is to launch EMI as a
major online competitor and re-invigorate the tired company image as an innovator in
the digital music market. The campaign is aimed at generating new custom amongst a
wide target demographic of 18-35 year old who presently represent the 500,000 plus
monthly UK downloader’s and in store CD purchasers40
. The services success would
be measured by increased online sales return via downloading statistics and website
viewing figures41
.
The marketing tools that will be implemented in the IMC campaign are as follows:
Online Advertisements
• Online advertising in the form of website interstitials, pop-up promotions,
advertisement gaming (flash based) will attract web audience’s attention to EMI’s
digital service and will stimulate service recall.
40
lecture on audience measurement (2004): November, Jon pike ,University of Westminster
41
Doyle P. (2002) Marketing Management and Strategy, Third Edition
Chapter 3, Segmentation, Positioning and the Marketing mix, pg 62
Music Majors Market Share 2004 (Europe)
According to IFPI
25%
17%
26%
13%
19%
Sony/BMG EMI Universal Warner Independents

28. 26
• Web links sent via email using data-base marketing informing consumers of
EMI’s latest music releases. Also instructions will be delivered to download the
new EMI music jukebox software in conjunction with portable devices42
.
Sales Promotions
• Payment incentives such as “pay as you go” and multiple subscription options will
allow a varied choice of music streaming and downloading for the attraction and
retention of online customers.
PR and Endorsements
• EMI’s popular contracted artists set to endorse the new online service. Positioned
articles in mainstream music magazines will be supported by a select TV campaign
on digital music channels such as MTV to attract young active music lovers43
.
1.5 Timeframe
The timeframe for the campaign will be 20 months. This permits adequate time for
the growth of EMI’s online brand identity and desired increase of the 4% market
share. This in turn would facilitate an expected increase in the overall annual profit to
£170 million by February 2007.
42
Introduction to Online Advertising Lecture (2004) University of Westminster, Dmitry and Trevor
Wright
43
Butterfield .L (2003) Excellence in Advertising , Second Edition
Chapter 2, The Advertising Contribution ( Bartley, J ) pg 27-41

29. 27
1.6 Budget
The budget for the launch of EMI’s online website is taking into account the group’s
financial figures for the year ending 2004.The current company value is at all time
low from a £6.5 billion peak in 2000 to £800 million market value today44
.
Outsourced online music sales were up to £6.1million at present from £2.8m in 2003.
This represents 2% of EMI’s overall UK revenue with the total music profits
significantly lower than forecasted at £138 million45
.
The budget for this campaign will be £1.5 million based on the direct competitor and
market leader, Universal Music Group46
. See Appendix 4: Competitor Finances for
further details.
44
EMI Annual Report 2004
45
Vivendi Universal Reports Full Year 2004 Revenues up 5% on a Comparable Basis” ( 2004)
46
See Appendix 4: Competitor Finances

30. 28
Part 2.0 The Creative Strategy
The purpose of this section of the document is to provide our client EMI with a
strategic platform for the message delivery featured in part 3 of the document. This
part of the proposal will essentially answer the client’s question of “how are we going
to get there?”47
The question will be answered by providing a brief review of the IMC task at hand, a
focused set of communication objectives, an exploratory insight into the brands
image, promotional history and target consumer segments, via quantitative and
qualitative research into the customer’s decision making process. This will enable a
highly targeted communications brief, recommendation of effective product
positioning and marketing communications launch solutions, thus maximising the
brands digital potential.
2.1 IMC Task Review
EMI music is to launch its online music store to the UK market in August 2005 with a
budget of 1.5 million allocated for an integrated marketing communications
campaign. This campaign is aimed at attracting attention through an effective use of
the communication mix and generating custom from both legal music buying
consumers and those defecting from music piracy. The task at hand is to create launch
awareness, stimulate trial of the website and generate a key source of future company
growth and revenue through online digital music sales increasing from the current 2%
recorded in 2004 to 5% by May 200648
.
47
Five Questions of the Planning Cycle: Stephen King (1977)
48
This amount has been estimated in accordance with EMI’s Annual Report 2004

31. 29
The long term task of IMC campaign is to close the gap between second placed Sony
BMG with a 24% market share and the market leaders Universal Music with a 26%
share. The campaign aims to catapult EMI back amongst the top music industry
majors by increasing market share from 17% recorded in 2004 to 21% by 2007. This
would increase annual publishing sales from 138 million to £170 by March 200749
.
This aggressive target is to be achieved by extending the EMI brand into the digital
market, communicating the brands creative, dynamic and innovative musical
philosophy. This will be executed through a potent communications mix of public
relations, direct marketing, sales promotions and advertising of EMI’s innovative
online music store.
2.2 Communication Objectives
The communication objectives will assessed by the SMARRTT business model to
ensure the plan has a clear and precise strategic alignment with EMI’s business and
marketing objectives, thus enabling easy evaluation of the campaigns effectiveness in
terms of sales and favourable brand perception50
.
49
This amount has been estimated in accordance with EMI’s Annual Report 2004
50
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition,
Chapter 13. marketing communications planning and plans, pg 298

32. 30
The Overall SMARRTT communication objectives for the IMC proposal are in
juxtaposition with the classical effects hierarchy model and are as follows51
.
Create Awareness and Attention of EMI’s online launch
Introduce EMI’s music store to online music purchasers. Building prompted recall
of the service and its advertising for the official launch date of August 2005.
Communicate EMI’s brand values
Create understanding and comprehension of EMI’s online service benefits and
communicate the brands commitment to innovative musical access and products to
45% of the online target audience by month 2.
Achieve recall
The site must enjoy a recall of 50% with online music purchasers by month 4 and trial
of the monthly EMI subscription service.52
The resulting outcomes of these objectives will be presented in part 3 of the IMC
proposal.
51
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition, Chapter
19, setting objectives, determining strategy and tactics, pg 421/422
52
www.napster.co.uk/search_music.html

33. 31
2.3 About the Brand
A Rich Musical Heritage
EMI UK’s corporate identity spans over 100 years of musical history and traditions
dating back to its formation in 1897 as the Gramophone Company in London,
England. The company brand is the oldest of the music majors and the third largest in
Europe with a prestigious history of chart and album success on a global scale53
.
The corporate personality and organisational cultural are centred on musical
dynamism and creative expression, represented by the companies acquisition and
association with innovative and diverse musical artists from both past and present.
The company has attracted and utilised creative and quality acts such as Pink Floyd,
David Bowie and the Rolling Stones to Coldplay, Scissor Sisters and Norah Jones,
each adding to the brands reputation of high quality music publishing within B2B
markets.
The company’s image of being serious about quality music is reflected with the
world’s richest back catalogue of songs from globally recognised icons such as Elvis,
Frank Sinatra and The Beatles. The brand has established trust in its customers
through the consistent delivery of high calibre recording artists and musical
publishing products covering all music genres, geographies and time periods
generating £138 million in annual company revenue.
53
EMI Annual report (2005)

34. 32
Yet the failure to capitalise on digital channels and merchandising opportunities has
seen the sales of EMI music publishing decrease as industry competitors embrace
alternative channels of revenue and digital platforms.
2.3.1 Insights into the Brand
In order to effectively target the online music purchaser’s, it is important to explore
the company’s brand image, establishing what consumer impressions and associations
EMI currently holds against that of its industry competitors. This attains a valuable
insight into the brands core values of which the campaign can address and utilise in
the communications strategy.
To attain the necessary insight primary research was conducted on a quota sample of
40 target consumers aged from 15 to 35 year olds, representing the 500,000 weekly
UK music purchasers in this demographic54
. The research was conducted using the
attitude towards the object “Fishbien” model, requiring respondents to answer
questions regarding their attitudes towards EMI and competitor brands. The research
was measured against the brands music quality, historical legacy, variety, creativity
and innovation.
The research revealed the following key findings with more detail located in
Appendix: 5 Brand Insights55
54
JP Peter, JC. Olsen and K G Grunert ( 1999) Consumer Behavior and Marketing Strategy, Chapter
6, attitudes and intentions, pg 123
55
See Appendix 5: Brand Insights

35. 33
Attitudes towards EMI
The research highlighted EMI holds the lowest positive attitude of its competitors
achieving an average of just 6 out of 10, depicted in see figure 1. The highest rating
was from Apple Macintosh’s market leading Itunes achieving a 9/10 rating. This
result can be attributed to EMI’s lack of direct brand contact within B2C markets and
Apples successful embrace of digital music alongside the popular Ipod music player.
Graph 3: Brand Attribute Ratings
Innovation
EMI is not seen as an innovative brand according to 15 to 35 year old music
purchasers, attaining an average brand rating of 6/10. This can be due to the brands
lack of investment in the digital domain and undefined brand image to this music
purchasing age group. The leader in innovation was deemed to be Sony/BMG with
9/10, which can be correlated to the company’s music and electronics products.
0
1
2
3
4
5
6
7
8
9
Brand Innovation History in
Music
Artist
Quality
Music
Variety
Price
Brand Attribute
Average Attribute Rating for M usic Brands
(Source: Primary Research)
EMI
Apple ( iTunes )
Universal
Sony/BMG
Napster

36. 34
Quality and Heritage
Research indicates that consumers believe EMI has a vast musical legacy and this
gives a perceived value of brand quality through its various associations with iconic
and popular artists. EMI enjoyed the highest rating of history in music, with an overall
rating of 9/10. This was closely followed by Universal music achieving 8/10.This
gives EMI a stable platform for the brand to launch into the digital market.
Diversity and Creativity
Consumers are aware of EMI’s diversity of past and present music acts, yet only
through prompting of the artist’s name. EMI scored a rating of 8/10 with Universal
and Apple leading the ratings with 9/10.
Overall Rating
The research highlights the main attitudes and beliefs which the campaign must
reinforce and change in order to increase the attractiveness of the brand and become
an evoked music store choice to 500,000 plus weekly UK music purchasers. EMI’s
overall Fishbein brand rating was 57 behind Universal and Apples itunes. This
indicates the brand enjoys significant positive recall amongst music purchasers from
the ages of 15 to 35 years and confirms the opportunity for EMI to extract more from
the vast portfolio of quality music publishing via digital channels.

37. 35
0
10
20
30
40
50
60
70
EMI Apple ( iTunes ) Universal Sony/BMG Napster
Source: Primary Research
Attitude towards the Brand: Results
Graph 4: Overall Fishbein Ratings
2.3.2 Brand Changes
Core Brand Values
The generic values of the EMI brand should remain fixed, in concurrence with EMI’s
brand image and consumer’s positive impressions of quality and diversity. The
communication must however orientate to the online market adopting new themes and
messages in order to effectively launch the digital brand extension.
Figure 5: Brand Identity Pyramid

38. 36
Brand Themes
Brand themes are more flexible than core values and thus can be adapted to market
changes. Creativity and perceived “cool” is an important theme to capture the desired
target audience, evident with Apples Itunes business model.56
The need to modernise
the EMI brand means the new online service should adopt a creative and cool image
utilising contracted artists such as Coldplay and the White Stripes who reflect these
themes.
Brand Image
The online stores brand image should be one of a cutting edge and innovative service
which is capable of offering something new and exciting to the music purchasing
target market.
Introducing EMIdigital.co.uk
The primary research highlighted that the EMI brand name is recognised by online
music purchasers, therefore to facilitate the introduction of the digital brand and
penetrate the largest online target segment a co branding strategy is proposed. The
name will demonstrate that the EMI label is serious about moving forward into the
digital age and therefore lending its recognised identity to enable greater consumer
recognition and re- invigorate the corporate identity. Thus the name proposed for the
new online brand is “EMIdigital.co.uk” 57
56
Technical Report: Apple iTunes Music Store, ( 2003) R, Lenzi
57
Doyle P. (2002) Marketing Management and Strategy, Third Edition, Chapter 6 :Building successful
brands, pg 159

39. 37
2.4 Positioning Issues
The following section presents a segmentation of EMI’s target audience based on
demographic, behavioural and psychographic profiling of the online music
consumer58
. This will identify the appropriate brand positioning for EMI digital.
Segmentation
To be able to define and quantify digital market, the basis for segmentation will be the
consumer’s age and psychographics, music choices and formats.
Generation Y
Also referred to as the “Millennials”, generation Y is a term descending from the
USA for young persons born from 1981to 199559
. They are the offspring of
generation X (see below) and are the largest post war demographic grouping since the
baby boomers. They are now aged from 10 to 24 year old and are the digital
generation of consumers. Generation Y has been exposed to technological devices at
home and school as a part of their learning and social development60
.
(15 – 19 yrs) These interactive consumers enjoy social connectivity to maintain
relationships. They occupy their free time by watching TV, DVDs, MTV music
videos, listening to music both on the family computer or CD player. They also enjoy
videogames and are socially active through online chatting such as MSN and text
messaging friends. Their favourite music genres are Pop Bands, Rap and Rhythm and
58
Doyle P. (2002) Marketing Management and Strategy, Third Edition Chapter 3, Segmentation,
Positioning and the Marketing mix, pg 62
59
www.answers.com/topic/generation-y
60
www.redmandarin.com/tips/reaching.htm

40. 38
Blues. They enjoy trendy brand experiences which allow them creative freedom and
often purchase music on impulse.
(20 – 24 yrs) These consumers are more sophisticated than previous generations, an
outcome of the exposure to the internet, TV and interactive media through their
development. They are used to consumerism and look for a brand that offers them a
more personalised and cutting edge communication, of which credibility plays a large
part in the acceptance of whether the brand is “cool” or not. They enjoy rock music
and alternative listening and like diversity in options and styles61
.
They are individuals who like to interact with a product, giving them the feel of
liberation and empowering them to make their own unique choice, evident within P2P
services and music CD compilations produced on their PC’s62
. They are most likely to
access music through an mp3 player or Ipod like device, as they move into the
working environment and have extra PDI to purchase stylish products.
Generation X
Generation X is a term descending from the USA to describe persons born from 1965
to 1980, following the “baby boomers” period of the early 60’s63
. Today the term is
used to classify consumer demographics, with the generation now aged from 25 to 40
years old. This generation has witnessed vast cultural transition in terms of
technology and has integrated mobile communications, the home PC, CDs and DVDs,
into contemporary lifestyles.
61
See Appendix 9: Media platforms and Statistics
62
CDs, Records and Tapes - UK - October 2002-Mintel.com
63
en.wikipedia.org/wiki/Generation_X

41. 39
(25-30 yrs) This age segment is a maturing audience in terms of music purchasing,
with preference of purchasing based more on artists and bands they are familiar with.
They are the largest album buyers with a preference for Indie and Rock music, which
offers a more insightful meaning than the one hit pop and rap hits attracting younger
segments. They are also more likely to make a longer term commitment via mobile or
internet broadband subscriptions with many moving into a permanent residence or
contemplating home purchases. They enjoy cutting edge music and products.
(30-40 yrs) This age group has adopted the online products through penetration of
PC’s at work and home. They enjoy music primarily on CD, but will try the internet
as a convenience due to the hectic life balance of work, managing homes and the
introduction of children. They like diversity of musical products and are willing to
pay for a quality and respected musical artist. Despite many of this generation
entering their late 30’s they remain in touch with youth culture and technological
advances which offer style, considerable quality and functional content64
.
Targeting
To achieve EMI’s aggressive online sales increase from 2% to 5% by May 2006 and
increase annual revenue from 138 million to £180 by January 2007, it is necessary to
direct the campaign to the largest and most profitable market segments65
. Therefore
the 20 month campaign will address male and female consumers aged between 15 to
35 year olds, from all social economic groupings. This covers the industries two
largest music purchasing segments for singles and albums.66
.
64
ONS Population Statistics (2003) National census update
65
This amount has been estimated in accordance with EMI’s Annual Report 2004
66
Doyle P. (2002) Marketing Management and Strategy, Third Edition Chapter 3, Segmentation,
Positioning and the Marketing mix, pg 62

42. 40
Why ‘Y’?
Generation Y consumers currently represent 13% (7,378 million) of the UK
population with 57% of single sales deriving from the core segment of 18-24 year
olds. They are the largest segment of the UK population (54%) using the internet to
download music worth an estimated 2.7 million in online revenue and are the core
musical ring tones purchasers (67%), a rich source of alternative future revenue for
EMI. They are also familiar with many of EMI’s popular contemporary recording
artists enabling easier and more effective marketing67
.
The X-Factor
25 to 35 year old generation X’s represent 28% (17,241 million) of the UK
population, with 58% of the 237 million annual UK albums sales generated by the
segment. They are also second in annual online purchases (22%), worth an estimated
1.2 million, and the largest age group subscribing to mobile phone contracts, a key
format of future music accessibility (41%). They are also familiar with many of the
iconic back catalogue of songs and artists associated with EMI68
.
Positioning
Positioning is the act of designing the company’s image and value offer so that the
target consumers understand and appreciate what the company stands for in relation to
its competitor’s.69
. EMI digitals brand positioning will be based on reinforcing the
company’s strengths by promoting the companies key assets of quality music
67
Mintel Report (2005) Pre-recorded Music, UK
68
NOP ( 2004),mobilecontentstudy
69
Kotler P, Marketing Management , Chapter 12 Segmentation , Targeting and Positioning, pg 78

43. 41
publishing products and vast selection of contracted artists, most notably The Beatles,
Elvis and The Rolling Stones. This quality is the USP strategy of the online store.
Consumer Benefits
EMI Digital can offer consumers additional benefits to attract its diverse target
segments. EMI digital will provide consumers the most comprehensive choice, the
most cutting edge and quality musical content. This is critical in capturing the vast 18-
34 year old target audiences, allowing the consumer to define their own musical
experience no matter what age or tastes in music. Figure 4 highlights the perceived
consumer benefits of the EMI Digital music store relative to age.
Figure 6 :
Perceived Consumer Benefits of EMI Digital
Product Attributes
EMI digital offers a superior online music experience. Not only limited to the
traditional content of most online competitors , EMI Digital offers the consumer faster

44. 42
downloading, higher quality audio, multiple payment options, artists exclusives, DVD
profiles, Free studio jukebox, portable link ups and much more. Figure 3 illustrates
the web stores key attributes.
Figure 7:
EMI Digitals Product Attributes

45. 43
2.5 The Decision Making Process
Consumers go through several stages when making an online music purchase. The
following consumer decision making model gives an insight into the cognitive and
behavioural process70
.
Problem Recognition
An area often probed by marketers, the “problem” can focus on consumers functional
needs or psychological wants. The medium involvement of an online music purchase
means that consumers make a conscious choice from a select set of evoked brand
names such like Apple or Napster. Online music consumers favour choice, and
freedom to choose the music how they want it. Therefore EMI digitals opportunity is
to offer an enriched and personalised downloading solution, with more choice of
music, accessibility and payment options than is currently provided by competitors.
Information Search and Evaluation
Online music consumers seek information via multiple sources, often depending on
the demographic of the consumer. 15 to 24 year old consumers would be likely to
view various top of mind online brands, to interact and evaluate the stores offerings
and incentives. 25 to 30 year old consumers are likely to use online resources to save
time and build knowledge of the market, looking for artists and prices which suit their
acquired tastes and budgets. 30 to 35 year olds are likely to refer to close personal ties
such as friends and work colleagues, whose opinion are trusted and have used an
70
F , Auton ( 2004) Buyer Behaviour lecture 6, Decision Making process, Westminster Business
School, pg 43

46. 44
online service. This segment is looking for familiar and quality music artists. EMI
digital requires considerable advertising and promotions in order to elevate the brand
to the considered set of online stores in the consumer’s information search.
Purchase Process
Virtual music stores offer the consumer convenience and reduced effort when
purchasing online. The ease of typing in the web store address, selecting the desired
track and entering payment details gives direct and comfortable access, reducing cost
and search time compared to traditional high street shopping. This is particularly
attractive to the 25 to 35 year consumers facing heavy work schedules. EMI digital
has the opportunity to offer consumers the ultimate music purchasing convenience,
with unrivalled choice of quality music products, varied payment options and fast
music accessibility adapting to consumers ever changing needs71
.
Post Purchase Behaviour
Ultimately the success of EMI digital will be dependant on building the brand into
a recognised and well endorsed online music provider. Therefore consumers post
purchase attitude must be positive, with the brands performance satisfying
expectations. Positive advocates are vital for the brand to successfully penetrate the
online market, with many virtual stores growing by email referral and endorsement by
respected web communities72
.
71
F , Auton ( 2004) Buyer Behaviour lecture 6, Decision Making process, Westminster Business
School,
72
www.marketingpower.com/webcast_listing.php?Ref_ID=196

47. 45
2.5.1 Influences
There are various influences which affect the consumer’s decision making process
when deciding to purchase musical products. They are discussed below respective to
the influence on the target consumer73
.
Celebrity Endorsements
Celebrities are windows of opportunity to differentiate brands in competitive
markets74
. Within the music industry recording artists are celebrities in their own right
with labels clamouring to rub some of their positive values on to their brands. Most
recent examples of this are Apples capture of Irish rock band U2 for endorsement of
its itunes service. They are a consideration for a music purchaser and can be used to
attract purchasers to websites with exclusive products or online shows.
Magazines, Newspapers and TV
Within the 18-34 year old age group many sources of reference stem from the media.
The target consumer would be likely to watch music programmes on MTV, read
respected music magazines such as NME or Q, newspaper features and music
reviews, all of which act as a key source of recommendation75
.
Web Logs, WOM and Buzz
15-24 year old music purchasers utilise virtual word of mouth reference sources such
as online communities, often referred to as “web logs”. These websites are a credible
source of recommendation for this group, as the information is based entirely on
73
JP Peter, JC. Olsen and K G Grunert ( 1999) Consumer Behavior and Marketing Strategy, Chapter7,
Consumer Decision Making, pg 143
74
T, Wright, advertising management (2005) Celebrity Endorsements, lecture 6, Westminster Business
School
75
See Appendix 5: Brand Insights

48. 46
user’s opinions and out of the marketing controlled environment. Buzz or “Ambush”
marketing is often applied to these communities in an attempt to gain vital credibility
with the target audience and promote the product76
.
Psychological Influences
The way consumers access their music is constantly evolving, whether it be the latest
software or portable gadget. This means that peer acceptance and conformance is
increasingly more difficult to achieve amongst trendy and cutting edge youngsters.
The 15 to 24 year old target segment are heavily influenced by media advertising and
thus the need to keep updating their products to be seen as trendy amongst friends and
work colleagues77
.
76
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition,Chapter
4, Marketing Communications Psychology pg 70
77
F , Auton ( 2004) Buyer Behaviour lecture 8, Reference Groups, Westminster Business School

49. 47
2.6 Communications Brief
The communications brief is written by our client EMI and is directed at the creative
department, featuring all four communication tools of an IMC campaign plan78
.
Table 2: EMI Digitals Communication Brief
78
OgilvyOneWorldwide, (2005) Communications Brief

50. 48
2.7 Creative Solutions
This section briefly describes the basis for the IMC campaign solution to be
implemented in part 3 of the document79
.
Communication Channels
Advertising and Public relations will create awareness and interest, with the use of
high profile artists endorsing the new service. Direct Marketing and Sales Promotions
will be used to induce trial and re-purchase. These communication tools will be used
in push and pull strategies to assist EMI digitals penetration of the online market.
Campaign Platform
The IMC campaign will use a combination of high impact broadcast media such as
TV and cinema to create awareness due to its large audience reach. This will operate
alongside more personal and targeted media such as special interest music magazines
and direct response online advertisements in order to drive consumers to the web
store80
.
79
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition, Chapter
20, Creative Implementation, pg 454
80
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition, Chapter
21, Media implementation, pg 464

51. 49
3.0 The Message Delivery
The purpose of this section of the document is to provide our client EMI with
appropriate solutions which address the vast target demographic of music purchasers
from the ages of 15 to 34 years of age. This part of the proposal essentially answers
“which way is best?” for the execution of EMI Digital’s IMC campaign81
This question will be addressed by reviewing the IMC performance targets set by
EMI against the four key IMC tools to be implemented in the campaign, addressing
both internal and external stakeholders with appropriate communications to maximise
the brands online potential.
3.1 IMC Performance Targets
IMC performance targets have been outlined in accordance to the UK single and
albums markets. EMI Digitals 20 month campaign objective is to adopt new digital
channels and ultimately become a key source of future growth; generating
incremental music publishing profits from 138 million to 170 million by March
200782
. This task is broken down into both short term and long term performance
targets.
The short term performance target is to open up the brands products to the current
500,000 UK music purchasers aged between 15 to 34 years, by stimulating trail and
repeat purchase of online music singles, albums and DVD’s. This target is to be
measured against the company’s digital revenue profits of which the campaign aims
to generate a 4% increase by May 2006.
81
Five Questions of the Planning Cycle: Stephen King (1977)
This amount has been estimated in accordance with EMI’s Annual Report 2004

52. 50
The long term target of the IMC campaign is to establish EMI Digital a major online
music store to 15 to 35 year old music purchasers and build the brand as an innovator
of the digital domain. The aim is to propel the company back amongst the top music
industry majors by increasing market share from 17% to 21% by March 2007, thus
closing the gap on Sony BMG (24%) and market leaders Universal Music (26%).
The communication will be aimed at Generation X and Y consumers, the UK’s two
largest music purchasing demographics for music singles and albums. The IMC
performance targets will be measured against online downloading figures from both
pay as you go and monthly “Digi-Pass” subscription services.

53. 51
3.2 Campaign Strategy
The above time based objectives will be achieved through an integrated campaign
employing all four key marketing communication tools. Advertising, Public
Relations, Direct Marketing and Sales Promotions will be implemented in EMI
Digitals pull strategy to attract consumer participation and encourage sales in line
with the EMI’s desired performance targets. The specific roles of these tools are
reviewed in figure 1 below.
Table 4: Communications Mix Review
83
, 84
The campaign strategy will also address EMI’s internal stakeholders by briefing and
motivating them to embrace the company’s new digital channels. The following count
down chart illustrates EMI Digitals forthcoming campaign activities.
83
D Pickton and A Broderick. (2005) Integrated Marketing Communications Second Edition, Chapter
26 Advertising, pg 592
84
17. P, Farror, (2005) Sales Promotions and Field theatre Management, SP Tools and Techniques
lecture 2

54. 52
Table 4: Campaign Countdown Chart
3.2.1 Recommendations
The following recommendations are proposed to optimise EMI Digitals campaign
message delivery.
Strap Line: A Consistent Voice
To effectively deliver EMI’s brand message to the wide target demographic of
generation X and Y consumers, it is important to retain a consistent voice throughout
all communications. The campaigns pull strategy will address many sub segments
through various promotional tools and therefore the campaign requires a strap line to
retain brand harmony and reduce consumer dissonance.
The following campaign strap line depicted in figure 3 is designed to unify EMI
Digitals unique value proposition and successfully define the brand in the minds of 15
to 34 year old music purchasers. The strap line embraces the target consumers need
for unrestricted music accessibility and reflects the stores multiple product offerings
and options.
Figure 8: EMI Digitals Campaign Strap line

55. 53
Celebrity Endorsement: Message Credibility
Due to EMI’s late entry into the digital domain it is important that the brand utilises
its recognised artists to deliver impactful and credible messages to encourage trial and
purchase. Many of EMI’s artists enjoy a large base of loyal music fans that currently
purchase CDs and online music, therefore to increase awareness, differentiation and
trial of EMI Digital, popular artists will act as spokesman for the brand85
.
Figure 9: The White Stripes will represent EMI Digital
The primary research seen in Appendix 5: Brand Insights, supports the proposition of
using recognised music stars to represent EMI Digital by identify the target group’s
favourite EMI artists. Subsequently the following stars will represent EMI Digital on
advertisements aimed at Generation X and Y consumers.
15-25 Yrs: Popular and Trendy artists like Ms Dynamite and Robbie Williams will be
chosen to target the younger section of this demographic with cutting edge and cool
acts like Joss Stone and Jamiroquai aimed at consumers in their mid 20’s.
25-35+ Yrs: Artistic bands like Coldplay and The White Stripes will be used to target
the younger proportion of this segment, with renowned quality artists such as The
85 85
T, Wright, advertising management (2005) Celebrity Endorsements, lecture 6, Westminster
Business School

56. 54
Rolling Stone and David Bowie chosen to attract older consumers.
3.3 Micro Needs
To successfully implement EMI Digitals campaign, internal resources must be
harnessed, with the total commitment by top management to focus resources and
energies of the organisation to meet the needs of online music consumers and adapt to
the changing music environment86
. See figure 3.
Figure 10: Adapting to the Digital Market
EMI’s internal departments will co-ordinate with the launch of EMI Digital and thus
be must informed and motivated to achieve as a collective, the desired campaign
performance targets and embrace the innovative brand philosophy. The following
departments must be appropriately briefed to successfully galvanise EMI Digitals
campaign and invigorate the company image.
86
Doyle P. (2002) Marketing Management and Strategy, Third Edition, Chapter 1,Management:
objectives and tasks pg 26-29

57. 55
Informing Brand Managers
The most important element of any organisation is its leaders87
, thus each level of
management will be informed through meetings and briefings about EMI Digitals
promotional tactics and campaign strategies, in order to keep the brands objectives
clear and focused throughout all levels of operation. In an attempt to innovate the
brand image it is important for senior managers to relay the company’s vision for the
future and promote the instrumental role EMI Digital will play.
Motivation of SBU’s
It is important to motivate each of EMI’s music labels to produce innovative and
cutting edge music content in keeping with the brands essence and to deliver on
consumers expectations. This will be achieved by internal awards and recognition for
high quality new music and outstanding quality productions.
Informing and Motivating B2B representatives
Business representatives act as human commercials for the brand and are crucial in
the acquisition of new talents and high profile artist to the EMI label. These
representatives will be informed of EMI Digitals commitment to quality and creative
artists informing them of the new campaigns focus. These representatives will be
motivated by performance related bonuses88
.
Informing EMI’s Public Relations Departments
Public Relations representatives will be informed of EMI’s promotional strategy with
specific importance placed on generating positive media coverage for EMI Digitals
87
D Pickton and .A Broderick. (2005) Integrated Marketing Communications Second Edition, Chapter
14, the organization and management task, pg 313
88
Doyle P. (2002) Marketing Management and Strategy, Third Edition, Chapter 7, Innovation and New
Product Development pg 199

58. 56
launch and managing high profile music stars press conferences and public
appearances89
. They will be rewarded with bonuses on the basis of positive media
reviews and reportage regarding EMI Digital.
Enthusing Music Recording/Production Employees
Music studio staffs are the gatekeepers of the creative process. They will be informed
of the organisational focus towards digital music products to appropriately format the
music and open up new music production opportunities. They should be inspired by
the overall vision of the campaign stimulating creative outputs and will be offered
incentives to produce.
Monitoring Performance
Internal performance will be monitored by regular staff reviews, reports and feedback
sessions with management employing individual work charts and team schedules to
monitor in-house efficiency. This permits maximum management of the internal
process with the necessary insight to implement alternative strategies, should
disappointing results transpire.
The internal briefing of the campaign and organisational implementation of the above
strategy will commence in June 2005 and be evaluated in October 2005.
3.4 Macro Needs
The following push and pull activities are aimed at attracting trade channel support
and consumer participation to EMI Digital. Using an integrated approach the push
strategy will focus on encouraging online support and media endorsement to facilitate
89
J.Slevin (2005) Public Relations Management, Media Relations, lecture 3, Westminster Business
School,

59. 57
higher prevalence with the end consumer. The Pull strategy will encourage target
consumers to log on to the EMI music store and stimulate purchase activity90
.
3.4.1 Push Strategy: Pre Sell and Sell In
Winning media endorsement and online support from respected sources are
fundamental in generating brand awareness for EMI’s new music store to 15 to 35
year old target consumers.
Online Search Engines and Directories
Search engines and directories such as Google and Yahoo rate and index online
content on the basis of paid for advertising, website visitors, personal reviews and
news coverage91
. (See Appendix 8: Media Platforms and Statistics)
Direct response advertising: EMI will use sponsored web links, also known as “key
words” to enhance the brands search engine ranking92
. These can be purchased from
Google and Yahoo and will be used to appear when consumers input relevant key
words such as “music stores”, “music downloading” or similar product or service
search phrases. Figure 3 illustrates the process in more detail.
Pay per Click Advertising: Positioned direct response web banners and interstitials
will be used to enhance EMI Digitals online listing through website “clicks”, better
known as viewings. This will encourage search engine endorsement and generate
coverage for EMI93
.
90
Fill C. (2002) Marketing Communications, Contexts, Strategies and Applications, chapter 12,
Strategies.pg 285
91
www.google.com/rankings
92
www.SearchEngineRocket.com
93
T, Byng (2005) Non personal traditional media lecture 5, Westminster Business School

60. 58
Figure 11: Search Engine Advertising
Web Communities
Web communities can be called the “unofficial” support channels for an online brand.
These channels are fundamental in building support throughout peer to peer network
systems and online communities. The subsequent promotional activities will focus on
attaining credibility within online communal channels94
.
Ambush Marketing: Trained “buzz” marketers will be employed to covertly advertise
the new web store on popular music web logs and communities. This approach is
designed to create awareness and positive word of mouth via credible online channels.
Magazines and Newspapers
The following activities will persuade magazines and newspapers to publish articles
and reviews of EMI Digital, supporting the stores August launch and generating news
coverage to boost online ratings and cement media relationships.
94
www.merchantkit.com/marketing.php

61. 59
Magazines: The PR department will contact lead magazine editors from varied music
magazines such as NME, Q, Kerrang and Top of the Pops to propose exclusive
interviews with high profile artists from the EMI label. The promise to deliver artist
insights and news on the latest independent talents arising from the label will be an
incentive for the magazines continuing participation.
Newspapers: Press kits and pro-active communication with music and entertainment
journalists will be co-ordinated by EMI’s PR department95
. Promotional kits will be
sent to newspaper featuring an exclusive selection of music from the online store,
enabling the newspaper to offer free music CDs to its readers. Access to the labels
biggest stars will be offered as an incentive favourable future press reviews and news
coverage.
Television and Radio
Promotional efforts will be orchestrated to attract support from relevant radio and
Television programmes which are popular with the two core target segments of 15 to
35 year olds.
Exclusives: EMI’s public relation department will contact satellite television networks
such as MTV, shows like Top of the Pops, and respected radio channels such as
Kerrang, and BBC Radio 1, offering exclusive live artist performances and
appearances. This tactic enables EMI to promote its new web store with live
performances of music only available through EMI’s new digital music store.
95
J.Slevin (2005) Public Relations Management, Media Relations, lecture 3, Westminster Business
School,

62. 60
3.4.3 Pull Strategy /Sell Out
The IMC campaigns pull strategy is designed to attract 15 to 24 year old Generation
Y consumers and 25 to 35 year old Generation X consumers to log on to EMI
Digital’s website and stimulate purchasing of music products. The following tactics
use an integrated marketing communications approach utilising both traditional and
new media platforms for the campaigns message delivery. See Appendix 8: Media
Platforms and Statistics for an in depth profile of the campaigns media choices.
Advertising Plan:
The Advertising campaign will play a fundamental role in creating understanding of
EMI Digitals brand values and service benefits to generation X and Y consumers. The
following strategies are designed to create launch awareness, recognition and positive
recall, propelling EMI Digital into the evoked set of online brands to the current
500,000 weekly UK music purchasers.
Cinema
Cinema is unique in terms of attention, as the consumer is generally fully engaged on
the screen, making it an effective campaign launch platform to effectively reach 15 to
35 year old consumers, the largest cinema visitors in the UK (45%, recorded in 2004).
Cinema will be used to create campaign launch awareness with a high impact audio
and visual advertisement featuring high profile musicians delivering the campaign
strapline “music the way you want it”96
.
• Adverts before summer blockbuster titles Sin City and Batman Begins will be used
to create mass campaign awareness. A selection of adverts will be placed before
96
Mintel Report: UK Cinemas (May 2004)

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independent films like Being Jon Malkovich and Drugstore Cowboy to target more
alternative audiences.
DR Television Adverts
Television will visually demonstrate the benefits of EMI’s new online store and
communicate the brands essence, targeting the current 11 million weekly viewers
aged between 15 to 34 years of age97
. Television will be used to stimulate direct
response action by depicting the brands website address and utilising interactive TV
technologies with call to actions such as “press the red button now for Coldplay
exclusive”98
.
• Generation Y: Channels such as MTV and E4 will be used to target youngsters,
with adverts broadcast between young drama and music programming like The OC
and MTV: Video select.
• Generation X: Advertisements on respected music channel VH1.
Magazines
Music Magazines will build initial consumer contact and positive recall through the
use of in-depth features, full page advertisements and pullout posters depicting the
EMI Digital logo. Magazines are highly targeted medium and a source of much
credibility and reference to music consumers aged 20 to 35 year olds.
• Generation Y: Adverts placed in popular contemporary music NME99
.
• Generation X: Adverts placed in insightful respected music magazine Mojo100
.
97
mediatel.co.uk
98
T, Byng (2005) Non personal traditional media, lecture 5, Westminster Business School
99
Kerrang.com
100
mojo4music.com

64. 62
Radio
Radio is an effective way of reaching 15 to 35 year olds, with this demographic
currently representing 54% of weekly UK listeners, spending on average over 20
hours per week listening to radio broadcasting101
. EMI will position audio
advertisements on popular internet, satellite and traditional radio stations delivered by
recognised artists to create awareness and trial of the new store.
•Generation Y: Advertising will be placed on a mixture of popular and contemporary
stations playing Rap, Pop and Rock music, namely Kerrang and Kiss 100.
•Generation Y: Advertisements placed on Q radio and the well respected VH1 radio.
101
Radio-now.co.uk/satellite.htm

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Public Relations Plan:
The Public Relations plan is designed to create awareness of EMI’ new store and
persuade online consumers to recall EMI Digital favourably. PR will reinforce the
campaigns marketing effort generating credibility, consumer preference and trial for
EMI Digital in the competitive online music market102
.
EMI Digital: Coming to a Store Near You!
To generate initial press and news coverage of EMI Digital’s launch, a series of
exclusive music performances will be made by EMI artists in London music stores103
.
This PR stunt is based on the artist’s performance of exclusive material available on
EMI Digital from August. The following tactics are designed to create initial exposure
and trial to EMI’s new music store.
• Mainstream Stores: Performances in HMV and Virgin music stores by Joss Stone
and Ms Dynamite will be made. A promotional leaflet will be given to members of
the audience, instructing them to log on to EMI Digital and receive the artists mobile
ring tone for free.
• Niche Stores: EMI’s newest signed talents from independent labels will play live at
selected niche record stores to promote their new albums of which will be
downloadable via EMI Digital. This tactic enables EMI to be associated with “grass
roots” music bands and gain credibility with niche music audiences.
102
Two way Asymmetrical model (1920) - “Engineering of consent model” Edward Bernay
103
Press Agentry/Publicity Model (1850) – PT Bautman

66. 64
EMI Sponsored Web log: The online PR Tool
To build a positive relationship and create awareness with online music consumers an
EMI sponsored web log will be set up to effectively communicate EMI’s values and
website offerings. This relatively new PR tool utilises internet communication
websites (known as blogs) to release up to date news and information on the new
brand, and permits consumers to post their own thoughts and questions about EMI on
the web log. This facilitates a two way dialogue with target consumers through a more
personalised contact and message delivery. (See Appendix 8: Media platforms and
Statistics)
The web log will be launched in parallel with a news announcement (stating the web
log address) and will provide colour commentary on EMI, promotional features, and
customer feedback that are not permissible in a traditional press release104
. The EMI
web log is designed to engage online consumers with information about music while
promoting the new brand, as illustrated below.
•About EMI Digital: Commitment to quality and innovative music.
•Why choose EMI Digital? - Product offerings, payment options, upcoming online
exclusives and latest talent joining the label.
• Weekly Web Log Discussion Topic: Is quality music dead?
The web log will also be used as a viral marketing tool with interested music
consumers being able to subscribe to a weekly email newsletter. This email will
contain a link to download the free EMI Studio Jukebox.
104 www.globalprblogweek.com/archives/corporate_blogging.php

67. 65
Direct Marketing Plan:
Direct Marketing activities will employ new media channels to effectively target
internet users. The multi-step plan will be to target both 15 to 24 year olds who
represent 90% of UK internet users, and 25 to 35 year olds who represent 80%. The
following direct response mechanisms will drive consumer traffic to EMI Digital and
build recall through interactive media content.
DR Web Banners and Interstitials
Direct response web banners and interstitials will be used to acquire target consumers
to EMI Digital, featuring a “call to action” by a certain music star with phrases such
as “Click here for my exclusive new track” as an example. These banners will be
appropriately targeted on specific websites105
.
•Generation X and Y: Banners and interstitials will be placed on popular and trendy
sites such as VirginMegastores.co.uk and music magazine websites such as
NME.com 106
.
Figure 12: EMI Digital’s web banners
105
T, Byng (2005) Non personal traditional media, lecture 5, Westminster Business School
106
Mintel Report ( 2004) Men's Magazines - UK

68. 66
The EMI Advertisement Game: Pop Quiz Music Fans!
EMI Digitals advertisement game will function to create an engaging interactive
branded experience which generates internet buzz, member get member referrals and
music purchasing amongst 15 to 35 year old target consumers107
.
This customer relationship marketing tool will exploit the target groups favourite past
time of video gaming with 54% of UK males aged 18-35 already playing online
games108
. This medium facilitates an entertaining message delivery, retaining
consumer attention for an average 5 to 15 minutes, through an interactive music
themed game109
. (See Appendix 7: Game Mechanics)
The flash produced advertisement game will placed on a vast array of websites to
target 15 to 35 year olds. The game will pop up on Google and Yahoo search engines
when users enters keywords such as “ Online gaming” and “videogames” or “ chart
music” and “music downloads” for example.
• Generation X and Y: The game will pop up on popular electronics, video game and
music websites such as Virginmusic.co.uk , HMV.co.uk and MTV.com110
107
www.advergaming.com/
108
Mintel Report ( 2004) Video, Computer and Internet Games - UK
109
advergaming.com/
110
www.netimperative.com/2000/05/statistics

69. 67
Sales Promotions Plan:
Sales promotions activities will target 15 to 35 year olds consumers to initiate trial
and purchase to EMI Digital.
Vodafone: Music on the Move
EMI Digital’s link up with Vodafone allows many sales promotion opportunities to be
placed on mobile phone products in store, online and on pack. This promotion is
centred on attracting consumers to download music from EMI Digital via their mobile
phones. The following promotions will target Vodafone’s 3G mobile subscribers aged
between 15-35 years of age which Vodafone estimates will reach 6 million by
February 2006111
.
Figure 13: Vodafone on Pack Promotion Display
111
www.theregister.com/2005/07/18/voda_vs_voip/

70. 68
• In Store: On shelf displays will be used to illustrate EMI Digitals link up with
Vodafone 3G. This will be implemented in stores such as The Carphone Warehouse,
Phones 4u and numerous other high street mobile phone retailers.
• Online Mobile Phone Stores: Direct response banners featured on digital stores
stocking Vodafone’s new 3G mobile phones such as Phones4u.co.uk and Carphone-
warehouse.co.uk.
• On Pack: EMI Digital logo, popular music stars and website address placed on
Vodafone 3G mobile phone packs. ( see figure 13)

71. 69
3.5 Activities by Month and Spending plans
The following section delivers the campaigns activity timescale and budget allocation.
3.5.1 Time Line
Table 5: Campaign Timeline

72. 70
3.5.2 Budget 112
The following table depicts the allocation of the 1.5 million budget provided by EMI
for the 20 month campaign. See Appendix 9: Media Platforms and Statistics, for
detailed prices.
Table 6: Campaign Budget
112
Figures according to BRAD Group UK, EMAP Publications and IPC Media. See Appendix 9:
Media Platforms and Static’s.

73. 71
3.6 Performance Outcomes Capture
The performance of this IMC campaign planning project will be measured against
EMI’s outlined business and marketing objectives previously set out in Part 1’s Client
Brief113
. The project will be measured against the company’s incremental sales gain,
increased market share through awareness and trial of EMI’s new music store.
Incremental Sales Gain:
The justification of EMI’s 1.5 million investment will be measured by forecasting the
sales return generated by the stores Pay as you Go and Digi pass subscription services
over the duration of 20 months from August 2005 to March 2007. It is important to
state that incremental gain can only truly be assessed once EMI Digital is a firmly
established as an online brand. Therefore it will be necessary to monitor on a monthly
basis the volumes of singles, albums, DVDs and monthly subscriptions sold, to gauge
whether the campaigns on target to successfully increase the companies online
revenue from 2% to 5% by May 2006, and ultimately increase annual publishing sales
from 138 million to 170 million by March 2007.
Single Sales Forecasts:
*An opportunity of 500,000 monthly music consumers / 50 % awareness / 30 %
capture114
= 150,000
*Risk: allocated budget of 1.5 million
Singles 75p = £ 112,500 estimated monthly revenue.
Risk: 1.5 million
113
See 1.3 Project/Marketing Objective and 3.1 IMC Performance Targets
114
based on industry norms ( upto 140,000 tracks per month downloaded in UK).- www.ifpi.co.uk

74. 72
Digi-Pass Monthly Subscriptions Forecast:
*An opportunity of 500,000 monthly music consumers / estimated Digi-Pass
subscriptions capture based on industry norms = 20,000115
.
Subscriptions £ 5.99p = £ 119800 estimated monthly revenue.
Risk: 1.5 million
Monthly Albums Forecast:
*An opportunity of 500,000 monthly music consumers / estimated album sales
subscriptions capture based on industry norms = 13,000116
.
Albums £ 7.99p = £ 103870 estimated monthly revenue.
Risk: 1.5 million
Market Awareness – Evoking EMI
To generate incremental gain the brand must successfully penetrate the online market.
Therefore continuous monitoring of the campaigns promotional channels will take
place to ensure the budget is being appropriately allocated to the most effective
channels, and is on target to achieve 45% consumer awareness by month 2 and 50%
recall by month 4. This will be achieved by monitoring the following:
• EMI Digitals search engine rankings from Google and Yahoo.
• Tracing the number of click –through hits from direct response banner advertising
on Virginmegastores.co.uk, HMV.co.uk, NME.com, Phones4u.co.uk and Carphone-
Warehouse.co.uk.
115
based on average online subscription services of 80,000 recorded between January to March 2005 :
www.theregister.co.uk
116
based on average online album sales of 52,000 recorded between August to December 2004 :
www.theregister.co.uk

75. 73
• Amount of direct responses to the MTV interact television advertisement.
• Amount of EMI music studio jukebox software downloads
• Number of Visitors to the EMI Sponsored web log and hits to EMI Digital.
Brand Attitudes: Back at the Cutting Edge of Music?
An ongoing consumer tracking programme will be implemented to monitor EMI’s
brand image117
. This will be to evaluate the IMC campaigns long term effect on brand
equity, potential for sustainable business growth and attracting the best musical talent
to the label.
• Analysing consumers web log feedback / online Questionnaires.
• Qualitative research using focus groups from the 15 to 35 year old target audience.
• Press outputs and magazine analysis about EMI.
117
See Appendix 5: Brand Insights

76. 74
3.7 Vertical Integration
Vertical Integration will be measured by reviewing and assessing the completion of
the campaigns objectives and tactics using Peter Farror’s Cascade of Dispersion
Model118
.
Table 7: IMC’s Vertical Integration
118
P, Farror ,Vertical Integration ( 2005) Sales Promotion lecture 6 , Westminster Business School:
A “top down” model, where by targets imposed from the top to all units down. Addressing the way that
organisational goals (Business or Marketing) are analysed and broken down into sub tasks into there
eventual delivery of message.

77. 75
3.8 Horizontal Synergy
The campaigns implementation of creative and strategic marketing solutions were
focused to attain message consistency, consumer interactivity and in keeping with
EMI’s mission. This process was ultimately attempting to achieve “performance in
excess of performance expected” as defined by Farror119
.
Consistent Message
The campaigns message delivery was orchestrated to attract the large target audience
of 15 to 35 year olds. To keep the consistency of message across all communications
platforms and tools, a creative “thread” was introduced to unify the brands values and
product attributes. “Music the way you want it” strap line was introduced to reduce
dissonance and allow for easier integration of the campaigns message.
Interactivity
The budget was distributed according to the platforms coverage and reach with 15 to
35 year olds. The campaign utilised new media communication vehicles to create an
interactive relationship with consumers thereby facilitating higher recall and
maximum exposure for the new brand.
Mission
Finally, the last component of the campaigns synergistic communication is mission.
EMI’s 20 month campaign was designed to increase market share and grow the brand
into digital channels. The campaigns communications to internal publics addressed
119
P, Farror ,Horizontal Synergy (2005) Sales Promotion lecture 6, Westminster Business School:
Mutually beneficial outcome created when two or more elements are harnessed together to achieve a
common purpose and collectively outperform what could reasonably be expected by those same
elements working independently.

78. 76
the need to innovate at all levels of operation to enable the brand to create synergy
alongside external communication activities
3.9 Campaign Outcomes
The campaigns outcomes will be measured by incremental sales return, market share
increase and penetration of the brand into the digital domain. The ROI of the 1.5
million budget will be measured against increased annual music publishing sales with
the objective set at an increase of 32 million from August 2005 to March 2007.
The long term outcome of the campaign will be measured against the proposed
increase of market share from the current 17% to 21% by 2007, subsequently closing
the gap on Sony BMG (24%) and the market leaders Universal Music (26%).
The campaigns outcome will also be to firmly establish EMI as digital music solution
to B2C markets, catapulting EMI Digital into an evoked brand choice alongside
Apple’s Itunes and Napster, consequently increasing the company’s digital revenue
from 2% to 5% by May 2006. This will develop the overall corporate identity of EMI
as an innovative music company, not only at the vanguard of quality music publishing
but a future leader in consumer music accessibility.
In order to evaluate the overall success of the campaign in achieving both its business
and marketing objectives, an in-depth financial and brand audit will be conducted
from January 2007 to March 2007.

79. 77
Appendix 1: Company Profile
The Company
EMI is the largest independent music company and the oldest of the “Music Majors”,
dating back to its formation in 1897 as the Gramophone Company in London,
England. EMI Music UK and Ireland is part of multiple international divisions, each
market orientated for the countries recording and publishing needs. With international
presence in all four corners of the world, EMI is currently represented in eighteen
countries including the USA, Japan, China Germany, Spain, South Africa, New
Zealand and Australia120
.
Revenue
EMI’s revenue comes from the sale of licensed recorded pop music on CD, tape,
DVD and most recently the digital domain to UK, European and International
markets. EMI possesses a strong leading share of UK sourced music and promotes
more home UK artists than any other major competitor, with 60% of artists
descending from the UK contracted to EMI121
.
Business Strategy
EMI’s is comprised of four front line labels, EMI Records, Innocent, Parlophone and
Virgin. Each business unit operates as a separate entity with an individual market
strategy and associated label, aimed at specific consumer demographics for varied
120
http://www.emimusic.co.uk/

80. 78
musical tastes. Dance music is catered for with the Positiva label, EMI gold and Jazz
for classic musical hits.
Commercial Marketing
EMI’s marketing is aimed at creating incremental revenue through the commercial
exploitation of recorded assets. This materialises in many diverse areas of business,
from sourcing and negotiating synchronisation deals122
. For example TV
advertisements and film soundtracks to Computer Games, sponsorships and
endorsements of commercial products by EMI’s artists (figure 1).
.
Graph 5: EMI Products Share
122
EMI UBS Media Conference Presentation 2004

81. 79
Market Position
Currently EMI’s market position is third in the European Market and has endured
poor album sales from the UK for the financial year march 2005. The profits are
expected to drop by 8-9% from 2004 in 2005. The companies expected profits are
estimated currently at £138 Million, some £30 million down on initial interim
forecasts. In the digital market place EMI ‘s online presence represents only 2% of its
annual turnover with compact discs still accounting for most of EMI's turnover, with
overall sales CD sales decreasing to 11.4% during the last six months123
.
Future Growth
Future growth of the third largest music company is dependant on embracing the
digital distribution of music. With Analysts predicting by 2009 digital music
publishing should account for a quarter of EMI’s profits. The companies brand equity
and sales revenue is dependant on numerous ventures which are already in the process
of implementation. EMI’ push strategies with Freeserve, BT Open world’s Dotmusic
and Telewest Broadband's Blueyonder ISP service, are presently EMI’s outsourcing
channels of online music distribution.
123
www.sync.emirecordedmusic.co.uk

82. 80
Appendix 2: Financial Situation
The declining profits of EMI, means that the budget for the communication task must
produce a significant Return on Investment. Below is a detailed list of the present
financial situation of the EMI group124
.
Table 8: EMI’s interim EBITA 2004
Graph 7: EBITA Margins
124
EMI UBS Media Conference Presentation 2004

83. 81
Table 9: EMI’s Annual Financial Summary

84. 82
Appendix 3: Competitor Profile
Below is a detailed analysis of EMI’s main online competitors in the digital market
place.
Apple
Launched in the UK on June 2004, Apples iTunes music store is the online market
leader with of sales of 170 million songs. Marketed in tandem with the fashionable
Ipod player, it has increased the company’s revenues by 33% year-to-September
2004. The iPod which accounted for 23% of the company’s sales in 2004 has
strengthened the Apple brand identity and created high recall with young music
downloader’s. Apple offers over 800,000 downloadable songs with prices of singles
retailing at 79p and £7.99 for the latest album releases125
.
Microsoft
Microsoft's pay-as-you-go online Music Club reached the UK market in October
2004, and offers tracks second only to Apples iTunes in volume126
. The global
distribution of Windows Operating Systems permits Microsoft a significant advantage
125
www.apple.com/itunes/store/
126
www.entertainment.msn.co.uk/music/