Freshman Marketing Group Paper - Marketing Plan

1. 1
MKT 111 BC
Marketing Plan
Phly 6 Entertainment
Ira Miller, Aamir Austin, Keith Boggi
Matt Williamson, Shon Jones, Joe McGrath
December 6, 2014

2. 2
Table of Contents - (Ira)
Introduction of Company – 3 Company Description – 3
Mission Statement – 4 Objectives – 4
Sustainable Competitive Advantages – 5 Marketing Ethics – 6
Technology Considerations – 7 Social Responsibility – 7
Global Expansion Considerations – 8 SWOT Analysis – 9
Industry Analysis – 11 Competitive Analysis – 12
Company/Marketing Analysis – 13 Market Research/Target Markets–14
Marketing Program – 15 Financial Data & Projection – 18
Implementation Plan – 20 Evaluation & Control – 20
Summary – 21 References – 22

3. 3
Introduction of Company - (Shon)
Phly 6 Entertainment is a record label and recording studio founded by CEO Ira
Miller in early 2014. Phly 6 focuses on artist development, management, production,
graphic design and promotion in order to provide its growing clientele with the
resources that will guide each artist as they begin their journey into the industry.
Founded in Philadelphia, PA, Phly 6 Entertainment aims to become the city’s premier
source of high quality mixing and mastering while also accommodating each artist with
the necessary components that will allow them to grow and prosper.
​Company Description - (Ira)
Based outside of Philadelphia, PA, Phly 6 Entertainment is a small record label
poised to compete with the frontrunners in the music industry. We stay true to our
roots and work together as members of the Phly 6 Family. We have built a strong base
here in the Tri-State region and we continue to grow. Phly 6 Entertainment was
launched officially in June of 2014, with the release of a single from The Marxman, a
newly signed artist. Within three weeks the song had over 20,000 plays
(Souncloud.com). Starting with our first release and continuing to improve, Phly 6
Entertainment provides the platform from which our artists can achieve success.
With an industry in flux, we understand new customer demands. By building a
solid local base we will earn revenue from playing live shows as well as merchandise
sales, preparing our artists for future mainstream successes. Phly 6 stands for the
integrity of musicianship rather than industry standards, and our strong following
supports the idea of this being an effective marketing strategy.

4. 4
We offer recording services with brilliant audio engineers and a top of the line
production team. Our marketing team works hard to ensure that our projects get heard
by the right people, and our production team works to ensure that these projects sound
professional and up to the standards of the industry and our artists. Our industry
contacts and promotional services enable us to create strong networks starting locally
and growing nationally. With this approach combined with a strong local infrastructure
we are positioning ourselves for short and long term success.
Mission/Vision Statements - (Joe)
“The mission of Phly 6 Entertainment is to gain a significant piece of the market
share in the Philadelphia and Delaware Valley region through a commitment to
excellence in all our product offerings, through ecological methods of distribution and
maintaining a positive community presence.”
Phly 6 Entertainment is becoming the new standard in the recording industry.
Blending the best new technology, professional audio engineers, and a visionary
management and marketing team, Phly 6 works with its clients to build strong fan bases
true to each artist’s niche. We give our musicians a platform to show the world their
greatness. We believe in our artists as much as they believe in Phly 6.
Objectives - (Ira, Matt, Keith)
The primary objectives of Phly 6 Entertainment are to:
★ Obtain commercial financing of $80,000 to cover startup costs and initial
operating expenses by June 2015

5. 5
★ Generate one new client contract every three to six months by networking with
key industry leaders and with local talent for our first two years
★ Generate a net profit in the first two years of operations by developing a strong
client base and keeping overhead costs to a minimum
★ Introduce 2,000 people to Phly 6 during our first two years, and encourage their
continued interest through social media and local events
★ Increase album sales by 250 percent in our first two years, for each signed artist
★ Provide between 500 and 1000 hours of studio time per year. At $50 per hour,
this earns revenue between $25,000 and $50,000
Sustainable Competitive Advantages - Joe
Phly 6 Entertainment is the up and coming company in our industry. We provide
state of the art technology combined with innovational management and marketing
practices. With a team that no one can duplicate, we offer the best choice for up and
coming artists in the Tri-State region. Led by Joe, Shon, Ira, Keith, Matt and Aamir, our
leadership is unquestionably one of the best in business. We have the motivation, the
vision, and innovation to take our company to where no company has been before.
By using social media and exclusive distribution rights, we can build exposure for
our artists and build awareness for their music. Our artists know that our team is here
to support them any way we can, through the whole process of writing, recording,
producing, marketing, and distributing. By focusing on quality over quantity for each of
our artists we are able to spend the time necessary to ensure high level output. Once we
have the finely crafted product, we have a strong marketing and management team

6. 6
where we are able to garner success through social media channels as well as streaming
channels, increasing ability to distribute and release our product on a larger scale. We
are family here at Phly 6. Whenever one of us succeeds, we all succeed.
Marketing Ethics - Ira
★ ​Exploitation of artists such as Britney Spears, Kesha & Gucci Mane
○ We do not market artists of any age where vulnerabilities are exploited,
such as sexuality, violence, or through an image of depravity
★ Easy accessibility to amateur in-home recording studios at a low cost
○ We offer premier recording services, high quality engineering, a great
marketing and sales team, and a refined approach of artist development
★ ​Pirating music
○ Phly 6 has no official stance on pirating. We offer the majority of our
music freely through channels such as SoundCloud, Pandora, Spotify, etc.
A​rtists get paid per play from these channels (see pg. 16) while consumers
can stream freely, but are unable to download Phly 6 music
A very common trend in the current online music scene is to buy likes and views
to make web pages look better than they are truly performing. This is done to increase
investment in companies as well as artists by private investors and by fans. Essentially
these are computer simulated pages clicking a button repeatedly in exchange for money
from the owner and manager of the page being liked (Dahl, 2013). This could help
promote music videos to the front page of YouTube or to gain further awareness of our
company or one of our artists, but Phly 6 does not condone this. Phly 6 Entertainment

7. 7
operates strictly out of our own organic reach to ensure the highest quality page likes
and consumers. This is another reason our fans trust us, which builds brand loyalty.
Technology Considerations - Shon
At Phly 6 Entertainment we incorporate various social media platforms such as
Facebook, Twitter, etc. into our marketing strategy. The integration of these social
networking sites ensures that our artists are able to communicate with their fans
instantly. This allows our artists to receive direct feedback from fans, promote their
music and create an online presence that was once out of reach. Through music
distribution sites such as SoundCloud and Pandora, every artist’s musical catalog is
available to stream directly from any Android or IOS device using mobile applications.
Each play and download through these applications turns into earned revenue for Phly 6
and our artists (see pg. 16).
Social Responsibility - Matt
Phly 6 Entertainment demonstrates social responsibility by being in constant
contact with social media as well as helping develop our client’s accounts to
guarantee professional business factors including respect and leadership. We make
sure to keep ethical standards, and maintain an attitude of having no opinions on
outside issues. Through our profound social media marketing team we can expand the
horizons of young people to look up to their favorite musicians in a hands on and easy
way, while building customer loyalty. By providing the service of producing music for
artists we also will be selling the products of the artists. For example, live stream music
listening links, albums from iTunes, and other merchandise. At Phly 6 we strive to

8. 8
minimize the distribution of physical copies to reduce waste, by promoting more online
and live stream music, and having eco-friendly merchandise for sale through our
website.
Phly 6 supports social causes and exhibits corporate social responsibility
by giving back to the community all around the Philadelphia area. Phly 6 artists as well
as management give back by being involved, promoting and playing in an annual festival
at Drexel University called “High on Life.” This event is held on Drexel’s main campus
to promote sober and staying above the influence behavior at a college level (Buchanon,
2014). Phly 6 strongly advocates for providing youth who do not drink or use drugs an
environment in which they feel comfortable and can enjoy college life and enjoy music
just like everyone else. Phly 6 Entertainment CEO Ira Miller helped local event
managers start the event in 2013 to promote drug free activities at the college level, a
cause Phly 6 believes in.
Global Expansion Considerations - (Keith)
As Phly 6 expands we will have industry contacts from Philadelphia all across the
Tri-State area. There are many ways to reach out to our management and artists, such
as through our strong social media presence such as Twitter, Facebook and Instagram,
in person at our local headquarters located outside of Philadelphia, PA, or through email
or phone. Visit our website to find all contact information. The music industry in the
Tri-State region is very open to networking and building long lasting relationships with
one another, a huge selling point for our region. We plan on deepening bonds with large
venue owners, physical distribution centers, local talent and talent finders, production

9. 9
engineers and artists in our region. The more tied in Phly 6 becomes and the more
brand recognition we can gain in the Tri-State region the stronger our infrastructure will
be when we make our push down the road to become a more nationally recognized label.
SWOT Chart - Aamir
Strengths
1. International Product
2. Diverse market
3. Easily marketable
4. In-house productions
Weaknesses
1. Inexperience
2. Music sounds easily copied
3. Artists with inconsistent fan bases
4. Piracy cuts profits
Opportunities
1. Music used for marketing purposes
2. Foreign music on the rise
3. New technology lead to easier
talent search
4. New media forms/outlets
Threats
1. Larger labels
2. Diminishing profits in the industry
3. Internet
4. Streaming vs. album buying
SWOT Narrative - Aamir
Strengths
As a record label Phly 6 faces many strengths in a diverse market. Music, as a
product, is an international art form. It is also one of the easiest forms to market.
Starting in a close knit region like Philadelphia affords us a loyal starting fan base. As

10. 10
more countries adapt to changing trends such as radio and commercial success of
international hip hop artists, the global community offers Phly 6 the ability to grow and
adapt, gaining talent from places underrepresented in the music industry. At Phly 6 we
offer artists several ways to distribute their music and also build their brand name. We
have our own in-house engineers, producers, studios, and even distribution.
Weakness
As a starting label we face many challenges. A weakness that we will face is our
inexperience and our smaller market starting position. While we own our own
distribution to start, we can only distribute in a limited capacity. Our internal
capabilities are limited by the amount of experience the Phly 6 team has in the music
industry. This lack of knowledge and experience can hurt us in a very competitive
marketplace, where there is oversaturation in certain regions. Also, as the music
industry changes we are forced to either change with it or be left behind.
Opportunities
Phly 6 will face many opportunities to grow and evolve. Music is one of the best
marketing tools that businesses employ. Whether in stores, commercials, or even in
products, music presents a prominent place for Phly 6 to shine. As the global network
and community grows through social media, the market for foreign music will grow with
it. New sounds, artists, and even dances will provide opportunities for Phly 6. The
internet is also an emerging opportunity for the music industry. With new media forms
and outlets, we have the ability to innovate before being constricted to one or two forms

11. 11
of distribution. The internet also makes the search for talent easier. Artists can go from
YouTube sensation to contracted artists overnight.
Threats
One of our main threats will be the competition of larger labels with more diverse
artists and fan bases. These larger labels have the capital and relationships that we will
immediately be aiming to attain within the industry. Labels also have artists that could
copy the sounds of our artists. Another threat is the internet space. As our artists grow
and maintain a growing fan base, people will begin to pirate or look for ways to get the
music from outlets other than our own. The internet also brings people the option of
streaming an album instead of buying it. This is a growing problem in the already
dwindling music industry.
Industry Analysis - Shon
The recording industry is changing, and Phly 6 plans on being a frontrunner in
the new landscape of the business. Piracy is no longer so much a concern for record
companies as much as it is an accepted fact of our business. The music industry
continues to evolve and adapt itself with time. With this new growth and progress,
artists have begun to shy away from their involvement with large music labels. The
music industry is still a $15 Billion industry in 2013, and projected to grow %5 this year
(IFPI, 2013). Music distribution, marketing, and recording are no longer tools that are
exclusive to these larger labels. The use of various social media platforms and music
streaming sites allows artists to network and market their music independently and
efficiently. Artists also are now more involved in every aspect of the song creation

12. 12
process. Some of these aspects include the song’s production, songwriting, and
engineering. With the growing trend of artists working independently and controlling
more of how their music is created, Phly 6 Entertainment looks to build a relationship
with our artists that will encourage their creative growth and input. Our artists are able
to work side by side with our producers, songwriters and engineers to ensure that their
final products accurately reflect their vision.
Competitive Analysis - (Ira & Joe)
One of our competitors is Phire music. Inc. It was started in 2009. They have the
experience that we are looking for. Their marketing objectives for their musicians are
focused on distribution, touring, merchandise, a newsletter, and online presence. ​Their
strengths include having an established brand and use of top of the line technology.
Weaknesses include lack of employees. Phire music has less than 10 people working for
them. Their way of marketing the artist is through social media, Facebook, Twitter,
MySpace, Youtube, etc.
Rostrum Records is a similar company based out of Pittsburgh, PA. Founded by
Benjy Grinberg in 2003, Rostrum is home to a diverse roster of artists and in only
eleven years has worked itself into not only local success but also has developed itself as
a mainstream force. Signing artists such as Wiz Khalifa and Mac Miller as young artists
and helping them to develop musically as well as build relationships in the industry with
other artists, producers, booking agents and venue owners, all of which has been a huge
part of the label’s success. They have a strong team of social media managers as well as
digital strategists, A & R teams, and sales and marketing personnel. By getting their

13. 13
artists started locally and working with each musician one on one and spending a lot of
time and money on each they were able to take a very personal approach with the artist
development. This helped to create music both the artists and the label were happy
with, and what attracted investors and customers to become loyal to the Rostrum
Records brand. They are the successful model of what Phly 6 Entertainment aims to be
(LeBlanc, 2011).
Company Analysis/Marketing Analysis - Matt
Our company focuses on the opportunities in the industry rather than on the
problems. We are becoming a key leader in the music industry because we are equipped
with problem solving skills that benefit us through the steps of success. A current
problem in the industry is the concept of “rock is dead” from Gene Simmons, as well as
singers and songwriters. It is almost impossible for these up and coming new
independent artists to survive. A problem that is going to hurt us is free music as well as
downloading music illegally which is happening more frequently. Our opportunity and
main point to focus on would be to push live streaming via the web, mobile phones, and
postings on other social media. For example, young talent that is yet to be discovered
will not have an equal opportunity now a days as years ago to succeed due to the large
increase in numbers of electronic music as well as live stream. The problem is that there
is no industry left for this type of way in the music business. That is why we focus on our
opportunities such as live streaming. By responding to the problem directly as a team
we can fix this but if things do not work then focus on the positive and the chances that
may arise in the future with new technology.

14. 14
Market Research - (Ira)
Market demographics can be shown through the Phly 6 Entertainment Facebook
page. This is a rough estimate but presumably accurate survey of our organic reach,
from which we can refine our targeting approach. As you can see in the figures shown
below, Phly 6 is mainly being reached by 13-35 year olds, especially males. Young adults
are the main target market for our record label, and is the main reason for our product
approach to the market. By understanding that the young adult market has limited
disposable income, we strongly advocate for utilizing streaming channels that are free
for our loyal customers, but still earn revenue for Phly 6. By building strong
relationships with our fan base through these mediums we are able to sell more tickets
to our live performances, and have more sit downs with artists and fans, all of which
leads to repeat buyers and brand loyalty to Phly 6 Entertainment.

15. 15
Market Segmentation (Shon)
At PHLY 6 Entertainment we break our target market into several different
demographic and geographic segments to ensure that our label appeals to a wide variety
of artist. These marketing segments include genre, age, sex, and artist location. Our
label was founded with the intention of discovering and developing artist in the hiphop
genre. As a young and up-and-coming label we look to target artists between the ages of
eighteen and twenty-five. Since we are based in Philadelphia, PA our geographical
segmentation is focused primarily on this city and the surrounding Tri-State area.
Marketing Program​: ​Product Strategy (Matt)
Phly 6 Entertainment has more than one offering. We want to g​enerate one new
client contract every three to six months for our first two years, which is where half of
our company’s product offering comes from. Each of our artists will play 15 shows in
their first contract year with Phly 6, raising revenue through ticket sales. The Phly 6

16. 16
recording studio ​hopes to provide between 500 and 1000 hours of studio time at $50
per hour, raising revenue of up to $50,000 annually. Music is in the market maturity
stage, but through focus on differentiation we are able to provide a heterogenous
product and increase the perceived value for our product as opposed to other similar
offerings. With a relatable approach to consumers through social media and offering
music for free through streaming websites, we are able to increase our merchandise
sales where we are more marginally profitable.
Phly 6 embraces the technology of streaming music and offers almost all of our
music through streaming technology such as Pandora, Soundcloud, and Spotify where
customers pay nothing to listen to our music but our artists still get money each time a
song is played through one of these channels. For one millions plays through these
streaming applications artists are paid approximately $1,300 (Sydell, 2014). We also
embrace the digital strategizing of the modern music industry, and have social media
managers work with our artists to keep them in touch with fans to build brand loyalty
both to them as individual artists as well as to Phly 6 Entertainment. We have a
marketing team that is able to focus on looking at the industry and music scene as an
aggregate to discover growing trends.
Marketing Program​: ​Pricing Strategy- (Joe)
Phly 6 offers all of our music for free through streaming media as to gain new
listeners’ attention and loyalty, and increase our market share. This is part of our
philosophy, and part of our marketing plan under penetration pricing, focused on
garnering a new customer base and customer loyalty. This is a sales based approach,

17. 17
but we also utilize profit oriented objectives. We hope to increase the lifetime value of
the customer by hooking them into Phly 6 music and by providing a more personal
relationship with our artists and label through a strong social media presence. This will
turn into maximized profits in the long run, by creating a very strong customer base.
Marketing Program: Promotion Strategy (Ira)
We intend to introduce 2,000 people to Phly 6 Entertainment during our first
year of operations and encourage their continued interest through social media and
local events. ​By having CD signings, contests, and meet and greets with artists we are
able to have a strong personal selling approach to our customers. We also have links to
live streaming music and music available for download through social media, which we
promote in Phly 6 newsletters, on Phly 6 managed social media, and through blog and
magazine connections we have started to develop. These mass selling tools used to
promote our product will help in the long run to eventually have customers in stores and
music shops asking for the physical copies of Phly 6 music through a consumer initiated
communication process.
Marketing Program​: ​Place Strategy - (Keith & Ira)
Phly 6 is based outside of Philadelphia, PA. We have built strong relationships
throughout the Delaware Valley and the Tri-state area. Through our endeavors of
staying locally loyal we are able to keep the majority of our business direct to the
consumers, whether through live shows, merchandise, or streaming music. Even most
of our business that comes through social media or websites would be directly managed
by Phly 6 Entertainment rather than third party intermediaries.

18. 18
Phly 6 also has a strong social media presence on mediums such as Twitter,
Facebook and Instagram. Also by using selective channels such as Spotify, Pandora, and
Soundcloud we access a globalized marketplace where our product is aimed at our target
market without Phly 6 exceeding our ideal market exposure. This enables us to keep our
focus on having strong local ties where we can remain profitable with relatively low
overhead, but can build national and global awareness through these media resources.
Marketing Program​: ​Target Market - (Aamir)
As a record label Phly 6 plans to gather artists from all genres of music. We have
strong connections to the underground music scene in the Tri-State region.
Philadelphia is the type of city that contains a very diverse market. Our main consumer
target market is the 18-30 year old male that resides in PA. As shown by earlier figures
representing Phly 6’s demographics we are achieving our goals of target marketing, our
most common demographic reach through our Facebook page is 13-34 year old males.
Financial Data and Projection - (Ira)
These numbers are based off our CEO’s personal experiences in the music
industry. Figures are assuming $1,300 revenue for every one million plays through
streaming technology (pg. 16). Owning exclusive masters and rights (which Phly 6 has)
gives $0.70 on the dollar through iTunes sales. Future sales are based off Phly 6 artists’
current and our expected success in the market. Studio projections are based off the
current Phly 6 Entertainment recording studio, and expected future projects and hours
paid for by non-Phly 6 artists. Cost figures are projected through local distribution

19. 19
channels Phly 6 has developed relationships with in the Delaware Valley. We avoid
Philadelphia business taxes by being outside city limits.
Income Statement - (Ira)
2014 2015 2016 2017 2018
Total Revenue $17,830 $33,200 $50,950 $59,000 $114,750
iTunes $700 $1,950 $3,500 $7,500 $14,000
Merchandise $200 $800 $2,500 $6,000 $10,500
Physical sales (CD’s) $450 $900 $1,800 $5,000 $9,000
Streaming $80 $750 $2,800 $5,000 $13,250
Studio Time $16,000 $28,000 $38,000 $30,000 $32,000
Ticket sales $400 $800 $2,350 $5,500 $36,000
Total Costs $86,717 $33,059 $46,100 $56,750 $102,605
Advertising $0 $0 $3,000 $3,500 $15,000
Equipment $60,000 $0 $5,000 $4,000 $25,000
Insurance $6,000 $6,000 $7,250 $7,250 $10,500
Permits/Licenses $2,000 $2,500 $3,000 $3,000 $4,500
Production $500 $500 $1,000 $3,000 $6,000
Rent $12,000 $12,000 $12,000 $12,000 $12,000
Salaries - Artists $217 $559 $1,350 $3,000 $11,105
Salaries - Mgmt. $0 $2,000 $3,000 $4,000 $8,500
Salaries - Mktng. $0 $0 $0 $3,000 $15,000
Salaries - Prod. $0 $3,000 $4,000 $7,500 $6,000
Taxes $0 $0 $0 $0 $0
Utilities $6,000 $6,500 $6,500 $6,500 $4,000

20. 20
Implementation Plan & Organization Support - (Aamir)
At Phly 6 our marketing plan is mainly focused on the use of new technologies
and social media to gather the support and network we will need to succeed. We plan to
use services such as Soundcloud, Spotify, and Pandora to introduce our music to new
listeners. Our followers are then encouraged to follow our artists and the label through
our multiple social media sites. We have pages on Facebook, Twitter, and even
Instagram in order to stay connected to our fans and loyal customers. We will host
multiple events in the community to promote not just our artists but our connection
with the community.
Our Company has 4 major departments: Artist development, marketing and
promotion, production, and management. Our artist development team is in charge of
securing and protecting our investments in our talented artists. Our marketing and
promotion team is charged with the task of building and sustaining our brand in the face
of the public eye. Our production team is the base of our organization ranging from
artists to the engineers in our studios. Lastly, the management team are the people in
charge of ensuring that all aspects of the business run smoothly and focus on the growth
of the brand.
Evaluation and Control - (Keith)
The evaluation of Phly 6’s total income after one year will be $17,830. With this
Phly 6 will still be running a large deficit from the relatively high overhead costs. With
fans promoting through word of mouth, people and Phly 6 gaining more artists within
the next year it is projected that Phly 6 will bring in the revenue of over $50,000 by our

21. 21
third year, becoming our first real profitable year. The controls are that within 5 years
Phly 6 should have over 10 artists and be bringing in a more nationally geared revenue
through live performances, itunes sales, and studio time. We project our total income in
our fifth year of operation to be over $100,000.
Summary - (Shon)
Phly 6 Entertainment is an emerging Philadelphia based record label and
recording studio. By June 2015, Phly 6 looks to gain a commercial finance of $80,00o
to cover the company’s initial operating expenses and start up costs. For the first two
years of operation, we will acquire one new client contract every three to six months by
networking with local talent and various industry leaders. By developing a strong and
talented client base, we expect to generate a net profit in the first two years of operation.
During this time we also plan to increase the sales of each artist by 250 percent, and
introduce 2,000 people to the company with the use of social media networking and
involvement in local events.
At Phly 6 we differentiate ourselves from other labels with our relationship with
our clients. We treat our clients and employees as members of our family. Phly 6
ensures that our artist’s music circulates and is distributed to a number of influential
figures within the industry. We have also established a strong local base within the
Tri-State area. This has helped us create brand awareness and brand loyalty within the
region. Our company understands the constant changes in the market and the demands
of new customers. To effectively meet these demands we need the proper financial
backing to put our plan into motion.

22. 22
References - (Joe)
Cannon, J.P., McCarthy, E. J., Perreault, W.H., 2014. Basic Marketing: A Marketing
Strategy Planning Approach. New York, New York. McGraw-Hill
Sheeran, E. annual reports. 2014. Current. Retrieved from​ ​www.ifpi.org
Sydell, L. (2014 Novemeber) Pandora’s New Deal: Different Pay, Different Play. NPR
music. Retrieved from​ ​www.npr.org
Linton, I., (2014) How To Introduce A Companies to New Regions. Chron. Retrieved
from​ ​www.Smallbusiness.chron.com
Edelman. D. What is pricing strategy? Ehow business Marketing. Retrieved from
www. Ehow.com