In the framework of E-Marketing course at Vilnius University, we create a marketing strategy concernig a small lithuanian comany , Reed , that sells gramophones of high quality

1. Reed
E-marketing
strategyTEAM MEMBERS
Vicente Garcia Ruiz
Kyriakoulakou Ioulia Zoi
Lea Reginault
Rafa Pedrero Caballero
Elene Fgl

2. THE COMPANY

3. - 1987: Buisness of tonearms started in Litunania. Vidmandas Triukas was the designer and owner of
the company.
- 2007: Truikas launched the frist series of Tonearms branded Reed
Product:
Reed is producing Gramophones of high quality
Reed is also working in Europe and some outside countries as Turkey, China …

4. Target Market : United Kingdom

5. The main function: playing vinyl’s, so we targeted UK market as it remains
the country of music.
2,1 millions of vinyls purchased in UK, sales climb 6,4% to 21-year high.
The overall music consumption in UK is about 121,6 millions albums-
purchased.
UK is a country with a high standard of living (the fourth highest in European
union)..
In 2015 UK consumer’s purchasing power at its strongest in 6 years.
Customers: Higher class people who want exclusive products, passionate
people.
Tonearms should focus on Boomers II, X generation and part of Y
generation.

6. E-Commerce in UK
- 59,333,154; Internet users
- 79,31 %; penetration rate
- 236,230,000; Facebook users
- 1174£; internet sales per shopper
- 60,25 billions £; 2015 internet sales in UK

7. Objectives
● Conversion
● Acquisition cost
● Target group reach
● Average subscription size

8. Brand positionning
- Niche market because no one sell this kind of advance device in UK
- Can be used by professional as well as passionate( Three ranges of product)
- Moreover the target market will be the range of 25-35 years old who seems to
be the range of music amator and professional
- The research made in the sound field is so high that reed received award : Reed
3P awarded by Japan's Analog magazine.
- By going further into the website we can see that reed as already a retailer and
distributor to sell his product in the uk (abbington music research) so we need
to focus on the e-commerce , adversitising and infasize the awards .

9. SWOT analysis:
Strengths :
High quality of the product
Advanced technology
Big Company with experience,
market power, many distinctions
(high quality sound award in 2012,
desing award 2013, etc.)
100,000€ to invest in marketing
Weaknesses :
● Expensive product
● Small target group (rich people
who wants an exclusive
product or experts who wants
an exclusive quality)
● Many competitors
● No vinyls -> no need for a
gramophone

10. Opportunities :
● UK, our target market is the 3
on the top 10 markets per
vinyls sales in 2014.
● UK is the 13º richest- countrie
in the world in terms of GPD
per capita and, 65% of
consumers shop in the web.
● *Future product development
(Reed is working in Reed 4P, it
will replace the current Reed
Threats :
● New products and strong
brands in the market of the
music that can replace a
gramophone. (Beats
Electronics)

12. The kinds of factors associated with the politic class that can
contribute to our activity.
● Economics grants from the government for new investors.
● Changes in the politics of the new country, fiscal,
economic, law…
Political :

13. Economical:
We have to think about the current and future economic
factors in the countries where we are going to work.
● Economic policies of the government
● The income level of the targeted segment
● The level of inflation to define our economics objectives.
● The unemployment rate, we should check how big is this
rate in UK market to guarantee if it would be profitable
invested on it.

14. Social:
How the elements of that society can affect our project.
● Changes in the customer preferences. As we know, a gramophone is an old
product that has new competitors more updated.
● Changes in the income level, if it follows a constant process or maybe it has a lot
of fluctuations that can affect to our product.
● Changes in the mind-set of the population. In a population where the majority
of the people are young, where they are get used to use just new and
technological products our will not be accepted for them.

15. Technological:
Our aim is not the technological change, is how fast it changes
in our market.
● Are we able to join to the current technological system?
● Use of internet (Create a web page; sell the products on
the web…)
● We have to be ready to the new technological tools than
can appear in the market, if we want to be competitive we
have to be updated.

16. Environmental:
● Ecological taxes or fees
● Accomplish the ecological regulations in order to transport of our products.
● Climate change.

17. Legal
Legal: All of these factors associated to the different
changes in legal range that can contribute in a positive or
negative way to our aim.
● Licence.
● Human resource law
● Different sectors.

18. Suggestions:
Consumer lifestyle:
The top 5 consumer trends are:
1. the “generation rent”
2. silver surfers,
3. webrooming,
4. convenience shopping
5. ethical consumption
Considering the price of REED product really high , it’s better to focus on young
adults and middle youth because in these age categories, people have their own
money and they love to purchase fashionable and unique products .

19. Young adults:
they are influenced by Youtube celebrities and they seek transparency and
authenticity. The young British Adults use to purchase online using their
Smartphones.
Middle youth:
seek out apps in order to improve health and fitness. They also join the app Tinder
increasingly.

20. We want to focus on Facebook and Twitter because both of the platforms
concentrate the highest percentages of active users (43% of fb users and 19%
Twitter users are active) .

22. ● Firstly, willing to profit from the success of Youtube channels among the young
adults in UK and the “generation rent” , we suggest Reed Company cooperate
with airbnb company and create an attractive event which they will record it
and upload it on official social media of Reed Company & Airbnb.
● Secondly, we propose to organize a song competition via social media. The
participants have to send a cover music video and the Company will transfer
this piece of music into the reed gramophone so as to prove the better sound
quality of its products. The Reed Company will upload these videos on fb,
twitter and youtube and the fans will vote the best cover music video via Reed
Gramophone. The winner will win one Reed 3P.
● In the end, the Reed Company can offer some discounts during the week before
the Brit music Awards. Brit Awards is the biggest music event in UK.

23. Budget & Timelines

24. Tonearms Reed 3P

25. THANKS !!