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Running Head: Market Position 1
Market Position 13
Market Position
Michael Sales
Argosy University Online
July 9, 2017
The Interview:
"Hello Danbert. It's nice to see you again. Were you
aware that we are friends on Facebook?"
"Oh well hay man. I've been crazy famous in the UK and I
have a ton of friends stemming from all that."
"You're referring to the successes of Chumba Wumba and
the hit song 'Tub Thumping.'"
"Yeah I got famous and made a ton of money."
"Did you produce the latest album out of necessity for
money, or was it mostly for pleasure."
"I took a fifteen year hiatus after Chumb Wumba broke up.
I've had a teaching gig, and I had a star role in a motion picture.
The role I played in that movie helped transform me back into
the musician I am most of the time. My burnout was gone and I
started really feeling the creative juices flowing. I took what I
learned from dealing with my Band Chumba Wumba and formed
the new band: 'The Axis of Dissent.'"
"For this assignment I'm supposed to be interviewing a
corporate executive about the line of products in his or her
division. Would you say you're somewhat of a corporate
executive?"
"I'm under the understanding that this interview will not be
disseminated to the public in any way. If it were I would have
you strike that last question. Our message is largely about
being green and sustainable, not giving in to corporate slavery,
really having a lot of awareness about how we serve to the top
1%, and being an activist against wars funded by our
government at the benefit of corporations. So no, I'm not like a
corporate executive. I'm a band leader with a message to
deliver."
"But you lead a band with fifteen members, worked deals
with three different record labels on your latest album – one of
which is EMI Music Publishing in Germany, and no doubt
collaborated in many other ways."
"I see where you're going. The music business venture I run
sort of makes me into a corporate exec. Yeah, I wear a lot of
different hats.
"The concept art you published on Facebook for the latest
album isn't anywhere to be seen on that album. I loved the
frozen river Island concept with you as some sort of a King
holding up signage. It's not on the CD version I got from you."
"That concept art was targeted at my local following here
in the Methow Valley. I live in the outskirts of Twisp, and the
locals know that had the photo taken on the Twsip River that
runs through my property."
"Do you feel any need for change in your business'
climate?"
"There are three things I'm always focusing on at any
given moment. I need to create fresh new material, I need a
system for refining the material into songs that will catch on,
and I need to find better ways to get the music out there. Did
you notice that along with having my CD for sale, that I also
had a leaflet? The leaflet is for people that don't have $15 for
an album or are undecided. The leaflet has high-resolution
artwork, information about the bands general messages, the
topic and moods of certain songs on the album, and information
about the band members themselves. So I can at least gain in
popularity without actually taking someone's money at a ranch
party."
"That was a great party, but the roast pork was terrible."
"Yeah, I know. I think the seasoning they used was
rancid."
"When you talk about targeting a certain market you sound
like a corporate executive. Do you have a marketing
consultant?"
"Verbal Burlesque Records handles my publicity. I have a
full time publicist. That person really works out to be like a
administrative assistant. They help be editing my message and
plan my schedule."
"Your latest hit of off your new album is quite catchy. It's
played at the radio station where I work part time, and the video
for that song queue's up quite regularly there on the big screen.
It's a professional video that I would say has good appeal.
Elaborate on YouTube and how it is monetized for content
creators."
"There is a big trend that sees people song surfing on
YouTube. They may listen for hours at a time. A lot of artists
are monetizing their music with videos that are authorized for
YouTube corporate advertising. We have an anti corporate
message and we can use YouTube to pull at our CD sales, so we
have opted out of the advertising monetization with YouTube.
Honestly it's a necessity for young artists though. Record labels
are folding up all the time, and most artists are struggling
financially. People in the industry are trying to draw people
away from YouTube, and YouTube might not always be free."
"It'll be interesting to see what unfolds."
"Yes it will."
"Do you think the lyric: 'Capitalist must die' in the song
'To Be Or Not To Be' is a bit extreme? Are you proposing that
people loose their love of free market systems all together?"
"That's a difficult question. The band wanted to send a
message, and this is what the collective of 15 people in the band
had to say. I have to treat my people well. I don't want to deal
with high attrition in my band."
"What do you do to create brand loyalty?"
"I always try to provide a better experience than my
competition. My mobile sound stage is state of the art. I only
work with the best pros in the business. My latest album has 16
tracks. I'm lucky to have the Chumba Wumba/Tub Thumping
notoriety behind me. I've built up a brand name for myself. I'll
mention the old Chumba Wumba days often when I'm posting as
Danbert Nobacon on the web."
"That's quite a few songs compared to the competition.
What else are you doing to differentiate yourself"
"I moved to this small community because I wanted to get
away from all the electricity and be in the snow. I didn't know
how long I'd stay. As it turns out this area has been very
nurturing for me and great for my image."
"Is the music industry changing?"
"Our music on the latest album is available in over 60
places on the Internet. It has to be that way these days.
Everything is monetized whether it's free streaming, paid
streaming, downloading MP3s, or physical distribution of a CD.
On some of the platforms we have to accept a lower rate of
compensation. Have you noticed how many music stores have
closed down over the last twenty-five years?"
"Yes. I can't even think of a store anywhere in my neck of
the woods. What do you do in the face of stiff competition?"
"I use social media. I'm not a social-media wiz by any
means, but I often take the opportunity to state my stance on a
crucial political issue at the time. My stances are worded
longer than most of what you read. That's so that my potential
fans can engage with me for longer periods of time, if they
choose. They can tune out if the message seems to long, and
that doesn't hurt my image."
"What else are you doing to give your customers
something they really value? Nothing beats a catchy love song.
People might not even realize it's a love song. I'm mixing up
the selection on my albums so theirs pop, folk, and even some
big-beat rocketronic – although I want to emphasize that all our
music comes from real talented musicians. The music doesn't
come from a box."
"What do you do to minimize the number disappointed
customers?"
"I have an extensive live performance schedule. Whether
I'm at a major exhibition hall or sitting playing a guitar at a
books store, people have a chance to know more about me and
hear the music in advance to buying it. We work hard at getting
on as many radio stations as possible. I have a guy that drives
around in a little full time electric car giving demos to radio
DJs."
"This is the last question Mr. Nobacon. Are any of your
record labels incorporated?"
"I refuse to answer that question on the grounds that my
answer might tend to incriminate me."
"There you have it folks. That ends my interview with the
tremendously talented and entertaining Mr. Danbert Nobacon."
"Thanks Michael. It was a pleasure meeting with you
today."
PART II:
The Analysis:
Target Customers:
Danbert is aiming to provide entertaining music for a wide
range of people including those that enjoy pop, folk, and other
stuff that's heavier in bass. His target audience is also
disgruntled with the percentages of poor and middle class as
compared to the ultra rich 1%. His target audience is also very
pro green and ecofriendly. His lyrics literally say keep the oil
in the ground, however Mr. Nobacon drives a nice shiny new
SUV. To give his some credit it may be a Hybrid. The per
album cost of $17.89 is a pretty common price. That ratio to
customers who are more satisfied may be higher due to Mr.
Nobacon's careful marketing practices and the hard work he
puts into "Real" music and performances.
N. Hunter writes nearly all the lyrics on the new album,
Stardust To Darwinstuff. The exception being lines from
Hamlet by William Skakespear, Inferno by Dante Alighieri, The
Masque of Anarchy by Percy Bysshe Shelley, and The Outline
of History by H.G. Wells, This is something I did not know, and
now I'm wondering if Nobacon is as talented as I thought.
There is a ten-paragraph statement by the artist on CD
Universe. I'm assuming this is Nobacon talking, as I am
familiar with his chosen topics and emphasis. Here is a two-
paragraph excerpt:
"And yet our industrial machinery and bombs can tear up an
ecosystem in a matter of minutes and hours, visiting devastation
on our landscapes and extinction upon an escalating number of
our fellow species. Whilst we have been lurching towards the
precipice for the past few decades, it has never been more
apparent that our human condition requires something
extraordinary of us if we ourselves are to survive as a species.
The dangers are ever more pressing as President Trump seeks to
expand fossil fuel extraction anywhere and everywhere, at the
same time as defunding climate science and environmental
protections. Moreover, this comes packaged with the outright
lie that such budget cuts are necessary to increase spending on a
US military that is 'falling behind,' when in fact the US war
machine has long been, and by far, the most over armed and
destructive capability the planet has ever seen. In the coming
months 'we the people' of the US will need to continue to evolve
as bedrock of resistance to prevent President Trump's executive
orders becoming our daily reality. And, as 'we the people',
wherever we are on the planet, connected by our fragile
atmosphere, and in the cause of a fairer, more sustainable
existence, we will need to stand with those peoples who resist
and refuse to be bowed by the planetary hegemony of this
'American way of doing business," (CD Universe, 2017, para 10
-11).
Nobacon goes on to bash Trump and talk global politics and
science in his artist statement.
Nobacon has a generous press release that was published in The
Wenatchee World newspaper and online newspaper. North West
Music Scene also has a write up that says his newest album is
packed with "Political Punch." The Amazon Best Sellers
Rank: #585,193 Paid in Albums (See Top 100 Paid in Albums)
and #63057 in Digital Music > Albums > Pop. The current
Amazon selection is for that of over 180,000 artissts and 29.1
million songs. Danbert does not have physical distribution of
the latest album on Amazon.com at this time.
From what I have gathered via the interview, it is evident that
Stardust to Darwinstuff is creating an emotional bondage, while
at the same time he is targeting his audiences correctly.
Danbert seems to be focusing on social media marketing. If you
check out the YouTube video for the song Stardust to
Darwinstuff, you can get a good feel for his performance style,
lyrics, music style, and see first hand a great video as a part of a
excellent YouTube marketing strategy (YouTube, 2017).
With great coverage in the social media spectrum, Nobacon
does better with Facebook than any other platform with 1,962
friends. We didn't discuss whether he boosts his posts with
financial investment with Facebook or if he has multiple pages
perhaps for the band and the album specifically. I did find his
musician page and he has 542 followers on that page, which is
how the boosts take place if one decides to do them. Just my
the miniscule number of likes on his posts, I'd say he isn't
boosting.
I'm not sure how many places online Danbert's newest album is
really available online. I think he needs to invest in some
search engine optimization. His Facebook page only mentions
one live performance, but I know he's done many more. I don't
think he is as devoted to Facebook as he says he is.
Requirements of Customers:
Nobacon was pretty specific in addressing his targeted
consumers. The most active rebels tend to be a younger crowd
that hate Trump, demand green social responsible everything,
and hate the top 1% with a passion are on his map. Just a quick
download or a quick YouTube play and you're seeing the
number one song on his album. That's pretty good marketing,
although I think I'm doing better with the marketing of my own
album. I'm not getting better numbers, I'm just in more places
with more options for monetization of the Internet usage.
Customer Satisfaction:
When I asked Nobacon about his methods of satisfying his
customers, he mentioned that he covered a full spectrum of
issues that activists will jump on a bandwagon for. He seems to
be sincere in his presentation. His potential followers would be
quick in sniffing this out if it weren't true. At $9.49 for a CD
download, and $0.99 for a song download, he is priced just like
nearly every other artist out there.
Product Position:
The major problem is that there may not be enough hits on his
album to generate large sales. His "Hit" as I am calling it is
nowhere near as popular as his Tub Thumping from his Chumba
Wumba days. If he's buying songs already, perhaps he should
invest in a higher percentage of
top-notch material.
Competitive Analysis:
In a later conversation with Nobacon, he wasn't very concerned
about the level of competition or differentiation because the
genres in music are blended to a high degree now. It seems he's
relying on the same themes and slogans that made Chumba
Wumba successful, but that was fifteen years ago.
As far as selling art in general, music may be the easiest way to
generate the highest royalties of any other venture. That's just a
estimation I have with my own experience in selling photo art,
books, and my own CD. The investment in marketing services
can be low to none the way the market is set up now, even
though big record label deals are becoming less of a goal.
We didn't talk about his percentages on royalties with his band
members. Splitting things 15 different ways at the moment
seems like it could be quite restricting. However, if he is
relying more on other talent at this time, like he said – they
need to be compensated well.
Competitive Advantage and Sustainability:
Currently he is still enjoying a pull on his product through his
old Chumba Wumba/Tub Thumping fame. Look that one up on
YouTube too if you get the chance. Being remotely located
with a limited budget means Nobacon isn't reallhy performing
outside Washington State. Here in Twisp he's a household
name, but have you heard of him all the way out there in
Athens, Alabama? Many of his old fans are in Europe. He did
use a German record label for part of the production.
Currently his video is creating a stir. It's coming up on my
YouTube all the time because I searched for it in the past. This
type of YouTube inner workings can play out well for him with
anyone who searches for him. It would have been nice to talk
figures more with Nobacon, as there is a large Internet blackout
currently for Mr. Danbert Nobacon.
PART III:
Matrix:
Nobacon
Daniel Powter
The Calling
Dream
Price
2
2
2
2
Effect of Antics
1
2
2
1
Quality of Lyrics
2
2
2
1
Breadth of Products
1
0
0
0
Brand
2
2
2
2
Accessibility
1
2
2
1
Diversity
1
2
1
2
Fun and entertainment
2
2
2
2
Emotional value
1
2
2
1
References
Amazon.com. (2017). Stardust to Darwinstuff. Retrieved July
9, 2017, from https://www.amazon.com/Stardust-Darwinstuff-
Explicit-Danbert-
Nobacon/dp/B071XR3K6B/ref=sr_1_2?s=dmusic&ie=UTF8&qi
d=1499651805&sr=1-2-mp3-albums-bar-strip-
0&keywords=Danbert+Nobacon+%26+The+Axis+of+Dissent
CD Universe. (2017). Stardust to Darwinstuff CD. Retrieved
July 9, 2017, from
http://www.cduniverse.com/productinfo.asp?pid=10780861&styl
e=music&fulldesc=T
Facebook. (2017). Danbert Nobacon Cover Photo. Retrieved
July 9, 2017, from
https://www.facebook.com/photo.php?fbid=10212135268965266
&set=a.10200708208055885.205565.1482007373&type=3
YouTube. (2017). Stardust to Darwinstuff. Retrieved July 9,
2017, from https://www.youtube.com/watch?v=6KhyC73Gg8k
Running Head: External Environmental Scan 1
Market Position 7
External Environmental Scan
Michael Sales
Argosy University Online
July 17, 2017
Introduction
First of all something should be corrected from the Market
Position Analysis. Mr. Danbert Nobacon's legal name is Nigel
Hunter. Mr. Hunter writes all of his own songs. This makes
sense going by his reputation. He advertises that you can
contact him on Facebook if you need him to write you a
personal love song.
Danbert Nobacon has done well for himself. He was able to
leave the UK and come to the US. He purchased riverfront
acreage in the Methow Valley on the Twisp River just East of
the town of Twisp. His relocation expenses were probably
substantial, and his property is probably on the Twisp River is
probably worth over $300,000. He has settled in nicely, with a
great reputation. He stared in a play at the Merc Playhouse in
Twisp title "I Hate Hamlet" with the starring role. It was funny,
and I think it was the first time I had ever seen him. He
participates in the "Trashion Fashion Show" every year with
outlandish costumes.
He likes to show his body a lot. During a Boardwalk Open
House he worked an open bar in an alley wearing nothing but an
apron. He was well liked as an instructor for the high school's
drama curriculum. He stared in a full-length motion pictured
filmed, directed, edited, and produced by a local filmmaker
named Terry Hunt. The name of the film is "Haiku" and it can
be viewed on IMDb. He again had the starring role as a burnt
out rock star that became a newspaper journalist. He comes to
the Methow Valley to interview an old rock star and write his
life story. It's funny most of the way through and a pretty good
film.
Paul Resnikoff, writing for Digital Music News, says that
streaming problems are a big concern for the modern rock band
musician. He says,
"The leading streaming music companies — YouTube/Google,
Spotify, SoundCloud, Apple and others — have been routinely
accused of treating artists poorly through duplicitous contract
structures and low payments. Apple seems to be taking serious
steps to repair this, and Tidal has emerged as a more artist-
friendly platform. But sadly, most artists have no idea what
they should be receiving, or what is fair payment for a stream
(ad-supported, paid, or in-between)," (Resnikoff, 2016, para 1).
He goes on to explain that this creates a low trust environment
in which there is very little guidance, streaming firms are
deliberately creating complicated payout structures, firms are
overstating their pay-stream payout structure, and they are
paying lower rates to smaller label musicians. There are many,
many more problems in the streaming sector, and a musician
needs to embrace the business side of music and stay savvy.
Smaller musicians are increasingly playing for free as a
promotional effort. Resnikoff says, "Musicians are
increasingly playing free shows, in the hopes of getting paid
work down the line. According to a recently released
report from the UK-based Musicians’ Union, more than 60
percent of artists have played at least one free gig in the last
year," (Resnikoff, 2017, para 68). He says musicians are
ignoring the growing potential in performing cover gigs, such as
weddings, parties, and bar mitzvahs. This can be remedied by
latching onto growing services like GigSalad. I watched
Danbert perform at a local ranch party this summer. I don't
know if he was paid, but I know he sold albums there. This
external environmental issue seems to apply a lot to a musician
like Danbert who has just released his sure to be less popular
album with his new band.
Porter's Five Forces Analysis of the Music Industry
The Porter's five forces analysis works like a framework that is
beneficial in analyzing the real competition in an industry. It is
also helpful in developing a business industry. The intense
nature of an industry is defined with these five forces. Whether
new businesses will be enticed into the industry is also shown.
Porter stated that, ""As these forces grow stronger, they limit
the ability of established companies to raise price and earn
greater profit,” (Hill & Jones, 2012). For the music industry
these forces demonstrate clearly the sluggish nature of
developing a royalty stream and the sheer inability to recognize
much revenue at all for most musicians.
Threat of New Competition – Danbert no doubt chose a
community where he might do better as a folky music artist.
His latest album is nearly all folk aside from two poppish songs
that stand out on the album for me. Locals will certainly invest
in his albums as it is very important in this small community to
stay in the know and be able to gossip about popular topics. In
the Methow Danbert is popular. His efforts to travel to Seattle
and perform in small book shops and taverns may not sway as
well in his favor, however. Locally there are a lot of musicians
who want to perform publicly and will do it cheap. The greater
Methow Valley has a population of about 5,000 friendly souls
and there are lots of venues where local musicians can perform.
The Blues Festival, local bar patrons, The Methow Arts
Alliance, and pure entrepreneurial drive, brings bands that have
regional tours here often.
Currently much of the music to be taken in in local venues is
folky. There is certainly plenty of classic rock, jazz, and mixed
genre bands that may even have rap or hip-hop elements to their
style. Nationally hip-hop and rap music continues to become
more and more popular. The younger crowd wouldn't go out of
their way to see Danbert and his band perform.
Threat of Substitute Products or Services – a popular solution
for local patrons is to simply host an open mic night. There is
seldom a cover and the performers don't generally even put out
a donation jar. Karoke is regularly held at The Branding Iron,
which is the most profitable saloon in Twisp. Danbert does
perform locally and it helps to bring the musician into the more
interesting and popular third dimension. Danberts participation
in alternative entertainment at night including plays, fashion
shows, and fundraisers seems to be well planned by him,
possibly before he ever moved here. Bands and musicians can
perform at wineries, breweries, resorts, art galleries, holiday
events, and this is again that sort of low or non paying effort
that can be a real drag for an artist hoping for bigger and better
things.
The sheer number of local performers and music available for
sale puts a real damper on Nobacan album sales, I'm sure.
People can always go on YouTube binge and watch Danbert
throughout his career for free easily from the comfort of their
own home. To get a chance to see him in person you can attend
any local event or stop at the post office and likely see him. He
will engage the public and total strangers, although he may not
reply to messages on Facebook.
Bargaining Power of Customers (buyers) – There are many
different music genres today, and there are of lot of bands that
area blend of several. Danbert's style is presently almost
exclusively folk, and folk isn't that popular. Physical CD album
sales continue to fall, and other revenue streams are tending to
cut musicians short. Album sales were down 16.9 percent in the
first half of 2016, (Christman, 2017, para 1).
Pop hits have to be pretty awesome to get radio time on the
wider reaching stations. Locally any artist can get on the radio
as long as they don't cuss in their lyrics. But local stations have
non-profit radio licenses and their royalty payouts are a small
fraction of what a for profit radio station must pay. Band
loyalty is good, and Danbert has his share of followers from
Europe and his Chumba Wumba / Tub Thumping hay day. That
song remains popular. We must not dismiss his fortune in
having a probably substantial royalty stream still flowing in
from that song. He says he made a ton of money. That's a good
thing to say whether it's true or not. The song was everywhere
back in 1998. It was at the club, it was on the radio, it was on
television, it was in the movies, and you'll still hear it on the
radio today.
Bargaining power of Suppliers – There are a lot of options for a
musician to get their work produced at this time. Many
musicians tend to be tradition, thinking a big label is their meal
ticket. The distribution chain for physical albums is
increasingly going to Amazon.com and big supermarkets.
Traditional record stores are scarce. The musician is dependent
upon a firm that can produce physical CD albums cheaply and
promise the biggest royalties on those as well as downloads.
Intensity of Competitive/Industry Rivalry – New album releases
vary from year to year, but overall the competition in the
market is shrinking. Christman writes about the 2016 industry
statistics, "New album releases have been most affected by the
continued contraction, falling 20.2 percent overall, to 44.1
million units," (Christman, 2016, para 2). With an increase in
the popularity of classic rock, old albums become a greater
completion. Christman says that although sales have sunk,
"People are listening more than ever," (Christman, 2016).
Key Factors and Trends in any other areas affecting your
industry
Current free market conditions that effect the purchasing power
of consumers affects the music industry like many others.
Political views cause the public to perhaps shun rap or embrace
a philanthropist like Sting. Technology such as Wi-fi enabled
mobile smart devices let people stream at little or not cost at
any time they want. Online ordering makes placement a whole
new dynamic for business-minded musicians. These are some
of the factors affecting the industry.
External Factors as either Opportunities or Threats
The external factors would chiefly be the use of technology and
the change in consumer trends. If a band does their research in
regard to CD printing costs, public performance planning, and
companies that are a one stop shop all for all of their 100's of
streaming, download, and physical CD distribution avenues on
the internet, they will be able to pump out new albums and build
a breadth of work. With this breadth the brand will become
more recognized. By implementing their own technology is the
wake of a technology hurricane, bands can compete in the
modern age. A new generation of consumers can latch on to
your bands unique style and presentation. If you stand out in
some way your product will be more attractive.
There is a huge variety of music to listen to and many young
people say if it's not hip-hop they don't listen to it. The
younger buyers still tend to be the biggest market to target, so
Danbert is missing the boat in my opinion. I certainly would
like to see his genre change up to all pop or all hip-hop or even
put rap song or two on his album. With all the streaming
options it is becoming less and less popular for people to
"collect" music. Overall Danbert is out of the woods, having
taken a long hiatus from the Chumba Wumba venture he led. I
think overall people who are familiar with Danbert know that
his creative forces enhance his skill as a musician, and they
optimistically hope for great things from him.
References
Chistman, E. (2016). U.S. Record Industry Sees Album Sales
Sink to Historic Lows (Again) –– But People Are Listening
More Than Ever. Retrieved July 17, 2017, from
http://www.billboard.com/articles/business/7430863/2016-
soundscan-nielsen-music-mid-year-album-sales-sink-streaming-
growth
Resnikoff, P. (2016). The Music Industry Has 99 Problems.
And They Are… Retrieved July 17, 2017, from
https://www.digitalmusicnews.com/2016/07/22/music-industry-
99-problems-2/

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  • 1. Running Head: Market Position 1 Market Position 13 Market Position Michael Sales Argosy University Online July 9, 2017 The Interview: "Hello Danbert. It's nice to see you again. Were you aware that we are friends on Facebook?" "Oh well hay man. I've been crazy famous in the UK and I have a ton of friends stemming from all that." "You're referring to the successes of Chumba Wumba and the hit song 'Tub Thumping.'" "Yeah I got famous and made a ton of money." "Did you produce the latest album out of necessity for money, or was it mostly for pleasure." "I took a fifteen year hiatus after Chumb Wumba broke up. I've had a teaching gig, and I had a star role in a motion picture. The role I played in that movie helped transform me back into the musician I am most of the time. My burnout was gone and I started really feeling the creative juices flowing. I took what I learned from dealing with my Band Chumba Wumba and formed the new band: 'The Axis of Dissent.'"
  • 2. "For this assignment I'm supposed to be interviewing a corporate executive about the line of products in his or her division. Would you say you're somewhat of a corporate executive?" "I'm under the understanding that this interview will not be disseminated to the public in any way. If it were I would have you strike that last question. Our message is largely about being green and sustainable, not giving in to corporate slavery, really having a lot of awareness about how we serve to the top 1%, and being an activist against wars funded by our government at the benefit of corporations. So no, I'm not like a corporate executive. I'm a band leader with a message to deliver." "But you lead a band with fifteen members, worked deals with three different record labels on your latest album – one of which is EMI Music Publishing in Germany, and no doubt collaborated in many other ways." "I see where you're going. The music business venture I run sort of makes me into a corporate exec. Yeah, I wear a lot of different hats. "The concept art you published on Facebook for the latest album isn't anywhere to be seen on that album. I loved the frozen river Island concept with you as some sort of a King holding up signage. It's not on the CD version I got from you." "That concept art was targeted at my local following here in the Methow Valley. I live in the outskirts of Twisp, and the locals know that had the photo taken on the Twsip River that runs through my property." "Do you feel any need for change in your business' climate?" "There are three things I'm always focusing on at any
  • 3. given moment. I need to create fresh new material, I need a system for refining the material into songs that will catch on, and I need to find better ways to get the music out there. Did you notice that along with having my CD for sale, that I also had a leaflet? The leaflet is for people that don't have $15 for an album or are undecided. The leaflet has high-resolution artwork, information about the bands general messages, the topic and moods of certain songs on the album, and information about the band members themselves. So I can at least gain in popularity without actually taking someone's money at a ranch party." "That was a great party, but the roast pork was terrible." "Yeah, I know. I think the seasoning they used was rancid." "When you talk about targeting a certain market you sound like a corporate executive. Do you have a marketing consultant?" "Verbal Burlesque Records handles my publicity. I have a full time publicist. That person really works out to be like a administrative assistant. They help be editing my message and plan my schedule." "Your latest hit of off your new album is quite catchy. It's played at the radio station where I work part time, and the video for that song queue's up quite regularly there on the big screen. It's a professional video that I would say has good appeal. Elaborate on YouTube and how it is monetized for content creators." "There is a big trend that sees people song surfing on YouTube. They may listen for hours at a time. A lot of artists are monetizing their music with videos that are authorized for YouTube corporate advertising. We have an anti corporate message and we can use YouTube to pull at our CD sales, so we have opted out of the advertising monetization with YouTube. Honestly it's a necessity for young artists though. Record labels are folding up all the time, and most artists are struggling financially. People in the industry are trying to draw people
  • 4. away from YouTube, and YouTube might not always be free." "It'll be interesting to see what unfolds." "Yes it will." "Do you think the lyric: 'Capitalist must die' in the song 'To Be Or Not To Be' is a bit extreme? Are you proposing that people loose their love of free market systems all together?" "That's a difficult question. The band wanted to send a message, and this is what the collective of 15 people in the band had to say. I have to treat my people well. I don't want to deal with high attrition in my band." "What do you do to create brand loyalty?" "I always try to provide a better experience than my competition. My mobile sound stage is state of the art. I only work with the best pros in the business. My latest album has 16 tracks. I'm lucky to have the Chumba Wumba/Tub Thumping notoriety behind me. I've built up a brand name for myself. I'll mention the old Chumba Wumba days often when I'm posting as Danbert Nobacon on the web." "That's quite a few songs compared to the competition. What else are you doing to differentiate yourself" "I moved to this small community because I wanted to get away from all the electricity and be in the snow. I didn't know how long I'd stay. As it turns out this area has been very nurturing for me and great for my image." "Is the music industry changing?" "Our music on the latest album is available in over 60 places on the Internet. It has to be that way these days. Everything is monetized whether it's free streaming, paid streaming, downloading MP3s, or physical distribution of a CD. On some of the platforms we have to accept a lower rate of compensation. Have you noticed how many music stores have closed down over the last twenty-five years?" "Yes. I can't even think of a store anywhere in my neck of the woods. What do you do in the face of stiff competition?" "I use social media. I'm not a social-media wiz by any means, but I often take the opportunity to state my stance on a
  • 5. crucial political issue at the time. My stances are worded longer than most of what you read. That's so that my potential fans can engage with me for longer periods of time, if they choose. They can tune out if the message seems to long, and that doesn't hurt my image." "What else are you doing to give your customers something they really value? Nothing beats a catchy love song. People might not even realize it's a love song. I'm mixing up the selection on my albums so theirs pop, folk, and even some big-beat rocketronic – although I want to emphasize that all our music comes from real talented musicians. The music doesn't come from a box." "What do you do to minimize the number disappointed customers?" "I have an extensive live performance schedule. Whether I'm at a major exhibition hall or sitting playing a guitar at a books store, people have a chance to know more about me and hear the music in advance to buying it. We work hard at getting on as many radio stations as possible. I have a guy that drives around in a little full time electric car giving demos to radio DJs." "This is the last question Mr. Nobacon. Are any of your record labels incorporated?" "I refuse to answer that question on the grounds that my answer might tend to incriminate me." "There you have it folks. That ends my interview with the tremendously talented and entertaining Mr. Danbert Nobacon." "Thanks Michael. It was a pleasure meeting with you today." PART II: The Analysis: Target Customers: Danbert is aiming to provide entertaining music for a wide range of people including those that enjoy pop, folk, and other stuff that's heavier in bass. His target audience is also
  • 6. disgruntled with the percentages of poor and middle class as compared to the ultra rich 1%. His target audience is also very pro green and ecofriendly. His lyrics literally say keep the oil in the ground, however Mr. Nobacon drives a nice shiny new SUV. To give his some credit it may be a Hybrid. The per album cost of $17.89 is a pretty common price. That ratio to customers who are more satisfied may be higher due to Mr. Nobacon's careful marketing practices and the hard work he puts into "Real" music and performances. N. Hunter writes nearly all the lyrics on the new album, Stardust To Darwinstuff. The exception being lines from Hamlet by William Skakespear, Inferno by Dante Alighieri, The Masque of Anarchy by Percy Bysshe Shelley, and The Outline of History by H.G. Wells, This is something I did not know, and now I'm wondering if Nobacon is as talented as I thought. There is a ten-paragraph statement by the artist on CD Universe. I'm assuming this is Nobacon talking, as I am familiar with his chosen topics and emphasis. Here is a two- paragraph excerpt: "And yet our industrial machinery and bombs can tear up an ecosystem in a matter of minutes and hours, visiting devastation on our landscapes and extinction upon an escalating number of our fellow species. Whilst we have been lurching towards the precipice for the past few decades, it has never been more apparent that our human condition requires something extraordinary of us if we ourselves are to survive as a species. The dangers are ever more pressing as President Trump seeks to expand fossil fuel extraction anywhere and everywhere, at the same time as defunding climate science and environmental protections. Moreover, this comes packaged with the outright lie that such budget cuts are necessary to increase spending on a US military that is 'falling behind,' when in fact the US war machine has long been, and by far, the most over armed and destructive capability the planet has ever seen. In the coming months 'we the people' of the US will need to continue to evolve as bedrock of resistance to prevent President Trump's executive
  • 7. orders becoming our daily reality. And, as 'we the people', wherever we are on the planet, connected by our fragile atmosphere, and in the cause of a fairer, more sustainable existence, we will need to stand with those peoples who resist and refuse to be bowed by the planetary hegemony of this 'American way of doing business," (CD Universe, 2017, para 10 -11). Nobacon goes on to bash Trump and talk global politics and science in his artist statement. Nobacon has a generous press release that was published in The Wenatchee World newspaper and online newspaper. North West Music Scene also has a write up that says his newest album is packed with "Political Punch." The Amazon Best Sellers Rank: #585,193 Paid in Albums (See Top 100 Paid in Albums) and #63057 in Digital Music > Albums > Pop. The current Amazon selection is for that of over 180,000 artissts and 29.1 million songs. Danbert does not have physical distribution of the latest album on Amazon.com at this time. From what I have gathered via the interview, it is evident that Stardust to Darwinstuff is creating an emotional bondage, while at the same time he is targeting his audiences correctly. Danbert seems to be focusing on social media marketing. If you check out the YouTube video for the song Stardust to Darwinstuff, you can get a good feel for his performance style, lyrics, music style, and see first hand a great video as a part of a excellent YouTube marketing strategy (YouTube, 2017). With great coverage in the social media spectrum, Nobacon does better with Facebook than any other platform with 1,962 friends. We didn't discuss whether he boosts his posts with financial investment with Facebook or if he has multiple pages perhaps for the band and the album specifically. I did find his musician page and he has 542 followers on that page, which is how the boosts take place if one decides to do them. Just my the miniscule number of likes on his posts, I'd say he isn't boosting. I'm not sure how many places online Danbert's newest album is
  • 8. really available online. I think he needs to invest in some search engine optimization. His Facebook page only mentions one live performance, but I know he's done many more. I don't think he is as devoted to Facebook as he says he is. Requirements of Customers: Nobacon was pretty specific in addressing his targeted consumers. The most active rebels tend to be a younger crowd that hate Trump, demand green social responsible everything, and hate the top 1% with a passion are on his map. Just a quick download or a quick YouTube play and you're seeing the number one song on his album. That's pretty good marketing, although I think I'm doing better with the marketing of my own album. I'm not getting better numbers, I'm just in more places with more options for monetization of the Internet usage. Customer Satisfaction: When I asked Nobacon about his methods of satisfying his customers, he mentioned that he covered a full spectrum of issues that activists will jump on a bandwagon for. He seems to be sincere in his presentation. His potential followers would be quick in sniffing this out if it weren't true. At $9.49 for a CD download, and $0.99 for a song download, he is priced just like nearly every other artist out there. Product Position: The major problem is that there may not be enough hits on his album to generate large sales. His "Hit" as I am calling it is nowhere near as popular as his Tub Thumping from his Chumba Wumba days. If he's buying songs already, perhaps he should invest in a higher percentage of top-notch material. Competitive Analysis: In a later conversation with Nobacon, he wasn't very concerned about the level of competition or differentiation because the genres in music are blended to a high degree now. It seems he's
  • 9. relying on the same themes and slogans that made Chumba Wumba successful, but that was fifteen years ago. As far as selling art in general, music may be the easiest way to generate the highest royalties of any other venture. That's just a estimation I have with my own experience in selling photo art, books, and my own CD. The investment in marketing services can be low to none the way the market is set up now, even though big record label deals are becoming less of a goal. We didn't talk about his percentages on royalties with his band members. Splitting things 15 different ways at the moment seems like it could be quite restricting. However, if he is relying more on other talent at this time, like he said – they need to be compensated well. Competitive Advantage and Sustainability: Currently he is still enjoying a pull on his product through his old Chumba Wumba/Tub Thumping fame. Look that one up on YouTube too if you get the chance. Being remotely located with a limited budget means Nobacon isn't reallhy performing outside Washington State. Here in Twisp he's a household name, but have you heard of him all the way out there in Athens, Alabama? Many of his old fans are in Europe. He did use a German record label for part of the production. Currently his video is creating a stir. It's coming up on my YouTube all the time because I searched for it in the past. This type of YouTube inner workings can play out well for him with anyone who searches for him. It would have been nice to talk figures more with Nobacon, as there is a large Internet blackout currently for Mr. Danbert Nobacon. PART III: Matrix: Nobacon Daniel Powter The Calling
  • 10. Dream Price 2 2 2 2 Effect of Antics 1 2 2 1 Quality of Lyrics 2 2 2 1 Breadth of Products 1 0 0 0 Brand 2 2 2 2 Accessibility 1 2 2 1 Diversity 1 2 1 2
  • 11. Fun and entertainment 2 2 2 2 Emotional value 1 2 2 1 References Amazon.com. (2017). Stardust to Darwinstuff. Retrieved July 9, 2017, from https://www.amazon.com/Stardust-Darwinstuff- Explicit-Danbert- Nobacon/dp/B071XR3K6B/ref=sr_1_2?s=dmusic&ie=UTF8&qi d=1499651805&sr=1-2-mp3-albums-bar-strip- 0&keywords=Danbert+Nobacon+%26+The+Axis+of+Dissent CD Universe. (2017). Stardust to Darwinstuff CD. Retrieved July 9, 2017, from http://www.cduniverse.com/productinfo.asp?pid=10780861&styl e=music&fulldesc=T Facebook. (2017). Danbert Nobacon Cover Photo. Retrieved July 9, 2017, from https://www.facebook.com/photo.php?fbid=10212135268965266 &set=a.10200708208055885.205565.1482007373&type=3 YouTube. (2017). Stardust to Darwinstuff. Retrieved July 9, 2017, from https://www.youtube.com/watch?v=6KhyC73Gg8k Running Head: External Environmental Scan 1 Market Position 7
  • 12. External Environmental Scan Michael Sales Argosy University Online July 17, 2017 Introduction First of all something should be corrected from the Market Position Analysis. Mr. Danbert Nobacon's legal name is Nigel Hunter. Mr. Hunter writes all of his own songs. This makes sense going by his reputation. He advertises that you can contact him on Facebook if you need him to write you a personal love song. Danbert Nobacon has done well for himself. He was able to leave the UK and come to the US. He purchased riverfront acreage in the Methow Valley on the Twisp River just East of the town of Twisp. His relocation expenses were probably substantial, and his property is probably on the Twisp River is probably worth over $300,000. He has settled in nicely, with a great reputation. He stared in a play at the Merc Playhouse in Twisp title "I Hate Hamlet" with the starring role. It was funny, and I think it was the first time I had ever seen him. He participates in the "Trashion Fashion Show" every year with outlandish costumes. He likes to show his body a lot. During a Boardwalk Open House he worked an open bar in an alley wearing nothing but an apron. He was well liked as an instructor for the high school's drama curriculum. He stared in a full-length motion pictured filmed, directed, edited, and produced by a local filmmaker
  • 13. named Terry Hunt. The name of the film is "Haiku" and it can be viewed on IMDb. He again had the starring role as a burnt out rock star that became a newspaper journalist. He comes to the Methow Valley to interview an old rock star and write his life story. It's funny most of the way through and a pretty good film. Paul Resnikoff, writing for Digital Music News, says that streaming problems are a big concern for the modern rock band musician. He says, "The leading streaming music companies — YouTube/Google, Spotify, SoundCloud, Apple and others — have been routinely accused of treating artists poorly through duplicitous contract structures and low payments. Apple seems to be taking serious steps to repair this, and Tidal has emerged as a more artist- friendly platform. But sadly, most artists have no idea what they should be receiving, or what is fair payment for a stream (ad-supported, paid, or in-between)," (Resnikoff, 2016, para 1). He goes on to explain that this creates a low trust environment in which there is very little guidance, streaming firms are deliberately creating complicated payout structures, firms are overstating their pay-stream payout structure, and they are paying lower rates to smaller label musicians. There are many, many more problems in the streaming sector, and a musician needs to embrace the business side of music and stay savvy. Smaller musicians are increasingly playing for free as a promotional effort. Resnikoff says, "Musicians are increasingly playing free shows, in the hopes of getting paid work down the line. According to a recently released report from the UK-based Musicians’ Union, more than 60 percent of artists have played at least one free gig in the last year," (Resnikoff, 2017, para 68). He says musicians are ignoring the growing potential in performing cover gigs, such as weddings, parties, and bar mitzvahs. This can be remedied by latching onto growing services like GigSalad. I watched Danbert perform at a local ranch party this summer. I don't know if he was paid, but I know he sold albums there. This
  • 14. external environmental issue seems to apply a lot to a musician like Danbert who has just released his sure to be less popular album with his new band. Porter's Five Forces Analysis of the Music Industry The Porter's five forces analysis works like a framework that is beneficial in analyzing the real competition in an industry. It is also helpful in developing a business industry. The intense nature of an industry is defined with these five forces. Whether new businesses will be enticed into the industry is also shown. Porter stated that, ""As these forces grow stronger, they limit the ability of established companies to raise price and earn greater profit,” (Hill & Jones, 2012). For the music industry these forces demonstrate clearly the sluggish nature of developing a royalty stream and the sheer inability to recognize much revenue at all for most musicians. Threat of New Competition – Danbert no doubt chose a community where he might do better as a folky music artist. His latest album is nearly all folk aside from two poppish songs that stand out on the album for me. Locals will certainly invest in his albums as it is very important in this small community to stay in the know and be able to gossip about popular topics. In the Methow Danbert is popular. His efforts to travel to Seattle and perform in small book shops and taverns may not sway as well in his favor, however. Locally there are a lot of musicians who want to perform publicly and will do it cheap. The greater Methow Valley has a population of about 5,000 friendly souls and there are lots of venues where local musicians can perform. The Blues Festival, local bar patrons, The Methow Arts Alliance, and pure entrepreneurial drive, brings bands that have regional tours here often. Currently much of the music to be taken in in local venues is folky. There is certainly plenty of classic rock, jazz, and mixed
  • 15. genre bands that may even have rap or hip-hop elements to their style. Nationally hip-hop and rap music continues to become more and more popular. The younger crowd wouldn't go out of their way to see Danbert and his band perform. Threat of Substitute Products or Services – a popular solution for local patrons is to simply host an open mic night. There is seldom a cover and the performers don't generally even put out a donation jar. Karoke is regularly held at The Branding Iron, which is the most profitable saloon in Twisp. Danbert does perform locally and it helps to bring the musician into the more interesting and popular third dimension. Danberts participation in alternative entertainment at night including plays, fashion shows, and fundraisers seems to be well planned by him, possibly before he ever moved here. Bands and musicians can perform at wineries, breweries, resorts, art galleries, holiday events, and this is again that sort of low or non paying effort that can be a real drag for an artist hoping for bigger and better things. The sheer number of local performers and music available for sale puts a real damper on Nobacan album sales, I'm sure. People can always go on YouTube binge and watch Danbert throughout his career for free easily from the comfort of their own home. To get a chance to see him in person you can attend any local event or stop at the post office and likely see him. He will engage the public and total strangers, although he may not reply to messages on Facebook. Bargaining Power of Customers (buyers) – There are many different music genres today, and there are of lot of bands that area blend of several. Danbert's style is presently almost exclusively folk, and folk isn't that popular. Physical CD album sales continue to fall, and other revenue streams are tending to cut musicians short. Album sales were down 16.9 percent in the first half of 2016, (Christman, 2017, para 1). Pop hits have to be pretty awesome to get radio time on the wider reaching stations. Locally any artist can get on the radio as long as they don't cuss in their lyrics. But local stations have
  • 16. non-profit radio licenses and their royalty payouts are a small fraction of what a for profit radio station must pay. Band loyalty is good, and Danbert has his share of followers from Europe and his Chumba Wumba / Tub Thumping hay day. That song remains popular. We must not dismiss his fortune in having a probably substantial royalty stream still flowing in from that song. He says he made a ton of money. That's a good thing to say whether it's true or not. The song was everywhere back in 1998. It was at the club, it was on the radio, it was on television, it was in the movies, and you'll still hear it on the radio today. Bargaining power of Suppliers – There are a lot of options for a musician to get their work produced at this time. Many musicians tend to be tradition, thinking a big label is their meal ticket. The distribution chain for physical albums is increasingly going to Amazon.com and big supermarkets. Traditional record stores are scarce. The musician is dependent upon a firm that can produce physical CD albums cheaply and promise the biggest royalties on those as well as downloads. Intensity of Competitive/Industry Rivalry – New album releases vary from year to year, but overall the competition in the market is shrinking. Christman writes about the 2016 industry statistics, "New album releases have been most affected by the continued contraction, falling 20.2 percent overall, to 44.1 million units," (Christman, 2016, para 2). With an increase in the popularity of classic rock, old albums become a greater completion. Christman says that although sales have sunk, "People are listening more than ever," (Christman, 2016). Key Factors and Trends in any other areas affecting your industry Current free market conditions that effect the purchasing power of consumers affects the music industry like many others. Political views cause the public to perhaps shun rap or embrace a philanthropist like Sting. Technology such as Wi-fi enabled mobile smart devices let people stream at little or not cost at any time they want. Online ordering makes placement a whole
  • 17. new dynamic for business-minded musicians. These are some of the factors affecting the industry. External Factors as either Opportunities or Threats The external factors would chiefly be the use of technology and the change in consumer trends. If a band does their research in regard to CD printing costs, public performance planning, and companies that are a one stop shop all for all of their 100's of streaming, download, and physical CD distribution avenues on the internet, they will be able to pump out new albums and build a breadth of work. With this breadth the brand will become more recognized. By implementing their own technology is the wake of a technology hurricane, bands can compete in the modern age. A new generation of consumers can latch on to your bands unique style and presentation. If you stand out in some way your product will be more attractive. There is a huge variety of music to listen to and many young people say if it's not hip-hop they don't listen to it. The younger buyers still tend to be the biggest market to target, so Danbert is missing the boat in my opinion. I certainly would like to see his genre change up to all pop or all hip-hop or even put rap song or two on his album. With all the streaming options it is becoming less and less popular for people to "collect" music. Overall Danbert is out of the woods, having taken a long hiatus from the Chumba Wumba venture he led. I think overall people who are familiar with Danbert know that his creative forces enhance his skill as a musician, and they optimistically hope for great things from him. References Chistman, E. (2016). U.S. Record Industry Sees Album Sales Sink to Historic Lows (Again) –– But People Are Listening More Than Ever. Retrieved July 17, 2017, from http://www.billboard.com/articles/business/7430863/2016- soundscan-nielsen-music-mid-year-album-sales-sink-streaming- growth Resnikoff, P. (2016). The Music Industry Has 99 Problems.
  • 18. And They Are… Retrieved July 17, 2017, from https://www.digitalmusicnews.com/2016/07/22/music-industry- 99-problems-2/