Market Analysis

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A Market Analysis for
Columbia Records
Tiffany McKinney
Full Sail University
Project & Portfolio II: Business and Marketing
August 26, 2018

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EXECUTIVE SUMMARY
This report provides an analysis of the current status and future of Columbia Records. It
also looks at the financials of the parent company, Sony Corp. The findings show that the
company continues to show financial growth over time. It also shows that Columbia Records
continues to evolve by bringing in new executives and team members.
The report finds the current position of Columbia Records to be fairly stable with
much potential for growth. Financially they are strong but can continue to build their audience
and fan loyalty. They can work towards appealing to the next generation with the new and
younger members of the label.

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OBJECTIVE
This report was conducted to help the new CEO and the other new incoming employees
of Columbia Records determine how they can create a fresh brand while maintaining the
reputation of the company. They will need to take advantage of the younger people joining the
company and appeal to the next generation of music fans. They need to create a brand loyalty
within this audience.
RESEARCH METHODOLOGY
The information in this report was found through external research from online databases
and the internet. It was gathered during August of 2018. The information is as recent as early
2018. Quantitative details were found through the parent company’s website and yahoo finance.
RESEARCH AND KEY FINDINGS
Columbia Records was founded in 1887, and it evolved from an earlier enterprise
American Graphophone Company. It is the oldest surviving name in the recorded sound
business, which makes it the second major record company to produce recorded records. (ipfs,
2016). For music fans who prefer the not-so mainstream sounds, Columbia Records delivers
musical artists of all genres and styles that will entertain all young music listeners. Music fans
that listen to Columbia Record’s artists and support them by purchasing their records,
merchandise, or attend their live shows will surely be entertained with quality, unique music and
products.

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When looking at the financial status of this company,
specifically the parent company Sony
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Corp., Their stock price has increased over the last five years going from 20.15 to 54.99. Their
net income as of March 31, 2018 was $490,794,000, and their net profit margin was at 7.32%.
(Yahoo Finance, 2018). Although we don’t know the exact financial impact Columbia Records
has on the parent company, according to Sony Corporations end of fiscal year report of March
2017, within their music department sales increased 4.6% which is equal to 5,783 million dollars.
Since the beginning of 2018 there have been quite a few changes in faces within the
company, starting with the change of CEO in January. According to Music Business Worldwide,
Ron Perry was named CEO early this year, and since then there have been other changes
happening within the company. So far, these include Justin Eshak and Imran Majid being
promoted to co-heads of A&R, Shahendra Ohneswere as SVP of content development, and most
recently Noah Goldstein as SVP of A&R. With this great amount
of changes and fresh, young people coming into the company,
and a continually growing company, there is much potential for
innovation when it comes to targeting the young, new audience.
Ron Perry- CEO
Music Business Worldwide
This new CEO has already been making moves when it comes to finding the next best
thing. An example of this is his signing of Zhavia, a contestant on the

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singing competition show The Four. This decision alone proves
that Perry knows how to actively find what’s next in the industry and
how to appeal to the young audience. It is already impressive that a
company as old as this one has been able to stay relevant and on the
Zhavia
Columbia Records
forefront in the industry, but their ability to quickly adapt to new team members and the
changing environment within the industry is even more so impressive.
CONCLUSIONS
According to both the financials and the current news about Columbia Records, it doesn’t
look like there is any sign of them stopping in the near future. For most companies, a big change
such as new a new CEO and other key players may be signs of a company about to sink, but
Columbia has only shown further growth so far. The choice to bring in and promote younger
faces in the company displays the want for fresh ideas and innovation. When it comes to working
to appeal to new and younger audiences, their next step should be to gain a loyal following of the
company itself. They should strive to have fans of not just individual artists, but fans of the label
as a whole and all its artists.
RECOMMENDATIONS
In order to gain this loyal following of the label as a whole, there are a few ideas that
could potentially allow for this to start happening. One idea is to host a music festival or live
event that showcases exclusively Columbia Records artists. This would allow for fans of the

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individual artists to broaden their knowledge of the record labels library. This would also help
the artists themselves gain a greater following. They should aim to do this by summer 2019.
Another idea is to partner with a streaming service, such as Spotify, and have them create
a playlist that holds only music of Columbia Records artists. Streaming services are the big thing
now for music, so creating a playlist like this on a big streaming platform would reach a huge
audience and increase awareness on the label itself. They should aim to do this by the end of
2018.

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REFERENCES
(n.d.). Retrieved from http://www.columbiarecords.com/artists/
Android Apps APK - Find the best apps, games & download for free! (n.d.). Retrieved from
https://androidappsapk.co/
Music Business Worldwide. (2018, January 02). Ron Perry confirmed as Chairman & CEO of
Columbia Records. Retrieved from https://www.musicbusinessworldwide.com/ron-perry-
confirmed-chairman-ceo-columbia-records/
Music Business Worldwide. (2018, April 02). Columbia Records promotes Justin Eshak and Imran
Majid to Co-Heads of A&R. Retrieved from
https://www.musicbusinessworldwide.com/columbia-records-promotes-justin-eshak-and-imran-
majid-to-co-heads-of-ar/
Music Business Worldwide. (2018, June 13). Columbia Records hires Shahendra Ohneswere as
SVP, Content Development. Retrieved from
https://www.musicbusinessworldwide.com/columbia-records-hires-shahendra-ohneswere-as-svp-
content-development/
Music Business Worldwide. (2018, August 20). Kanye West collaborator Noah Goldstein named
SVP of A&R at Columbia Records. Retrieved from
https://www.musicbusinessworldwide.com/kanye-west-collaborator-noah-goldstein-named-svp-
of-ar-at-columbia-records/
Music Industry Production: Sony Music Entertainment. (n.d.). Retrieved from
https://lpelin.expressions.syr.edu/trf235/2016/02/24/music-industry-production-sony-music-
entertainment/
Yahoo Finance - Business Finance, Stock Market, Quotes, News. (n.d.). Retrieved from
https://finance.yahoo.com/