This document provides a situation analysis for a proposed record label called Military Music Group. It begins with an overview of the record label industry and trends impacting it. The target market is identified as military musicians aged 22-32 living in Miami. A customer persona of 28-year old Malcom is described. Competition includes Operation Encore, a label focused on veteran artists, and Armed Forces Entertainment, which provides entertainment to troops. Strengths and weaknesses of each competitor are examined. The document concludes by positioning Military Music Group as a label that will help military artists achieve their music industry goals.

1. SITUATION ANALYSIS 1
Situation Analysis
Harold Howard
Full Sail University

2. SITUATION ANALYSIS 2
Market Analysis
Market Summary
The type of music business that will be discussed is a record label. The North American
Industry Classification System (aka NAICS) code for record labels is 512250. Included in this
industry are “establishments primarily engaged in record production and/or releasing, promoting,
and distributing sound recordings to wholesalers, retailers, or directly to the public,” (NAICS
2017).
Record labels give artists a leg up in the music industry, providing them with funding, an
already developed network, and a team equipped with the tools necessary to jumpstart their
music career. Also, “they know which music monetization channels are working best today, and
where monetization is likely to go in the future” (Swift 2020). Because signing to a record label
can greatly affect an artist’s career, artists “want to know as much as possible about all choices
before making their decision,” (Record Label Marketing 2016). That said, this choice requires
high-involvement decision making.
According to the course text, “high-involvement situations suggest that the cognitive
stage and the affective stage usually appear first” (Record Label Marketing 2016). This means
that while this is a cognitive decision, the process requires that the artist learn of the services and
culture of the label(s) they are considering, then they consider their own in emotional take before
making their final decision.
According to the text and Maslow’s Hierarchy of Needs, people turn to music to fill the
top three “being needs”: self-actualization, esteem, and belonging. Artists in particular seek
record labels to meet their esteem needs, which “drive people to seek validation and status”

3. SITUATION ANALYSIS 3
(Record Label Marketing 2016). Because record labels give artists a stronger reach and platform,
they should allow artists to better achieve both of these things.
Market Trends
A positive trend impacting the record labels and music industry as a whole is the
dramatic increase of artists releasing music today thanks to user-friendly streaming services.
According to Hypebot, an estimated 24,000 tracks are released every day on streaming services
like Spotify, TIDAL, and Apple Music (A Journal of Music Things 2018). This surge is sparked
by accessible equipment, information, and platforms readily available there due to technological
advancements in the last ten years alone.
While this is fantastic for hobbyist artists, those seeking to break into the music industry
for a career often find that standing out has become that much more difficult in a sea of talented
musicians. Larry Miller of dot.LA explains that “as recently as 2018 and with streaming growing
surging in developed markets, the worldwide recorded music business generated not quite have
the peak revenues achieved in 1999 on an inflation-adjusted basis” – just before Napster took the
industry by storm (dot.LA 2020). Even with a label, many artists still struggle to make a viable
profit off their music alone.
Target Market
The target market for Military Music Group is service members between the ages of 22-
32. They live in Miami, Florida, have or currently serve/d in the US military, and are recording
and performing artists seeking further development into their music careers. They identify
strongly with the military and their music and would gravitate toward a team capable of

4. SITUATION ANALYSIS 4
understanding their experiences. They make between $65,000 and $90,000 a year, have
completed some college or have obtained a college degree, are fit, and they enjoy balance in their
social and professional lives. Their goals are to gain an audience for their music and to do so
with a team that can properly understand and meet their needs.
Customer Persona
Malcom is a 28-year-old soldier and musician from Miami, Florida. He prioritizes a
healthy lifestyle, practices and performs his music regularly, and manages to balance a healthy
social life with his demanding work schedule serving in the US Army. His style is simple and
clean, and he maintains his physical appearance. He manages his money and has a handful of
side hustles which enhance his network. He has several tasteful tattoos which identify with his
spiritual and personal values – especially within the scope of religion, music, and his military
experience. He has two children, is single, and keeps his home tidy and sleek.

5. SITUATION ANALYSIS 5
Competition
Operation Encore is direct competition for Military Music Group. While they also seek to
sign military musicians and artists, they are not limited to such, branching outward to those who
support the armed forces as well.
Armed Forces Entertainment (AFE) is indirect competition for Military Music Group.
They bring musicians and comedians to U.S. troops and their families stationed overseas with
events, concerts, and more.
Strengths
Operation Encore is led primarily by veterans for veterans. They understand the
experiences of their market and can therefore lead by example and work with their artists
competently. They are also nonprofit with strong core values to attract their target market. They
provide ample information making artist submissions easily available to veteran musicians
considering their services.
Being that AFE has provided entertainment for US troops for at least 60 years, they have
strong ties to the Department of Defense as the primary entertainer catering toward the military
(Armed Forces Entertainment 2021). They know their market inside and out, as well as all the
channels for making their events happen all over the world.
Weaknesses
A weakness of Operation Encore is that their lineup lacks diversity because their brand is
so specific. They also note that many of their events “will not have a backing band,” (Operation
Encore 2021), so artists must be able to perform on their own, which narrows them down to

6. SITUATION ANALYSIS 6
artists who play a key instrument to their music. Their lineup consists of veteran, country
singer/songwriters who primarily play guitar.
While AFE has excelled in catering toward troops by bringing them exciting
entertainment, they have overlooked a prime artist market to entertain their military: other
veteran and active-duty entertainers who would better connect with their fellow troops.
Market Positioning
To veterans and active-duty military artists, Military Music Group is a record label that
provides the required tool to achieve their aspirations in the music industry by signing,
producing, promoting, and distributing their music globally.

7. SITUATION ANALYSIS 7
References
Allen, P., Hutchinson, T., Macy, A., Rolston, C. (2016). Market segmentation and consumer
behavior. Record label marketing (3rd ed.). Focal Press.
Bulilan, C. (1 June 2020). Street Drummer 3 – Photograph. Unsplash. Retrieved from
https://unsplash.com/photos/4ktLEcM4PuA
Cross, A. (12 June 2018). You’ll be stunned at how many songs are added to streaming music
services every day. A Journal of Music Things. Retrieved from
https://www.ajournalofmusicalthings.com/youll-be-stunned-at-how-many-songs-are-added-to-
streaming-music-services-every-day-i-was/
McDonald, H. (28 October 2019). Understanding the pros and cons of label record deals. The
Balance Careers. Retrieved from https://www.thebalancecareers.com/major-label-record-deals-
understanding-the-pros-and-cons-2460377
Miller, L. (20 August 2020). Column: How music tech is making it easier – and harder than ever
– for artists. Retreived from https://dot.la/new-music-tech-is-making-it-easier-and-harder-than-
ever-for-artists-2647043299.html
(13 July 2021). North American Industry Classification System – record labels. U.S. Census
Bureau. Retrieved from
https://www.census.gov/naics/?input=512250&year=2017&details=512250
(2021). The Experience. Armed Forces Entertainment. Retrieved from
https://armedforcesentertainment.com/experience/

8. SITUATION ANALYSIS 8
(2021). Interest in Joining Operation Encore? Operation Encore. Retrieved from
https://operationencore.org/submissions