This group analysis of Tidal streaming service was conducted in a Marketing Management course. It includes thorough research in the company's current operations, as well as a fully integrated marketing mix of recommendations to help the company gain market share and boost positive consumer perception.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
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Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
Spotify Marketing Campaign for Marketing Theory & Practice Mary Peters
Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
I share ideas for what Spotify (my favorite app) could be doing better as far as new product features and partnerships along with demographic data (see appendix). This deck is for fun and relates to personal opinions as a user along with real data. Enjoy it!
Final MBA Presentation of Spotify based on a case study. It reviews the company's status and has recommendations on what strategically, their next move should be.
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E-marketing case
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Team:
Jean christophe Madlaing
Mathieu Chaumard
Pauline Lambert
William Belle
Liqun Zhang
http://www.linkedin.com/in/bellewilliam
Analysis of Spotify's Customer Management Framework for all phases: development, creation, growth and retention.
Recommendations focusing on some executional and strategic issues.
PowerPoint presentation about the most popular music streaming app nowadays: Spotify.
Type of file: .pptx
Fonts: "Montserrat Black" and "Montserrat Light"
Theme made by me.
Disclaimer: I don't own Spotify, this is a simple school presentation.
Music revenues are declining for more than ten years. But we are not listening less music. Digital revolution, piracy, streaming and mostly customers behaviors are affecting heavily the monetization of the entire industry. Define a new business model is key to grow.
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I share ideas for what Spotify (my favorite app) could be doing better as far as new product features and partnerships along with demographic data (see appendix). This deck is for fun and relates to personal opinions as a user along with real data. Enjoy it!
Final MBA Presentation of Spotify based on a case study. It reviews the company's status and has recommendations on what strategically, their next move should be.
Présentation Deezer 2012 - William BelleWilliam Belle
E-marketing case
2012
Team:
Jean christophe Madlaing
Mathieu Chaumard
Pauline Lambert
William Belle
Liqun Zhang
http://www.linkedin.com/in/bellewilliam
Analysis of Spotify's Customer Management Framework for all phases: development, creation, growth and retention.
Recommendations focusing on some executional and strategic issues.
PowerPoint presentation about the most popular music streaming app nowadays: Spotify.
Type of file: .pptx
Fonts: "Montserrat Black" and "Montserrat Light"
Theme made by me.
Disclaimer: I don't own Spotify, this is a simple school presentation.
Music revenues are declining for more than ten years. But we are not listening less music. Digital revolution, piracy, streaming and mostly customers behaviors are affecting heavily the monetization of the entire industry. Define a new business model is key to grow.
A Digital Marketing Strategy for Spotify Maura Hickey
This is a digital strategy for Spotify, delving into a situation analysis, customer analysis, competitor analysis, external factors, objectives, digital marketing channels strategy and tactics, measurement and control and strategy implementation.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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What might I learn?
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Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
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3. Value Proposition
➢High fidelity (hi-fi) music files (1411 kilobytes per second, vs. 320 kbps)
➢Direct and transparent financial benefits to artists: first-tier artists (16) each
received 3% of the company share and second-tier artists a smaller amount
➢Exclusive content from artists
“Seamless listening across mobile, tablet, desktop
and network players. Enjoy lossless music
streaming on Apple devices from iPhone, iPad and
iPod to Mac, as well as on PC and Android systems.
Plus integration in a wide range of high fidelity
network players.” - Tidal website
4. Company
March, 2015
➢ Jay-Z acquired Aspiro for $56
million
➢ Jay-Z relaunched Tidal with
celebrity-packed press conference
November, 2015
➢ Over 1 million subscribers
➢ Company executives exiting
➢ **Failing to gain traction**
5. Context
Music Industry Landscape
Physical Woes VS. Digital Delight
1H (first 6 months) Revenue of 2015:$3.2 billion
➢Physical Formats: $0.77 billion 14%
➢Streaming Service:$1.02 billion 19%
➢Permanent Downloads:$1.28 billion 2.5%
6. Context
Streaming Service Landscape
Freemium VS. Subscription
Total Streams of 1H 2015:$1TRILLION!
➢Subscription Service: 25%
➢SoundExchange Distributions: 20%
➢On- Demand Ad-Supported: 27%
Note: $0.006 to $0.0084 per stream
1500 streams= 1 album ($9)
12. VS.
➢ 75M users, (20M paid
subscribers)
➢ Spotify Free ($0.00),
with ads
➢ Spotify Premium ($9.99),
ad-free
➢ Family plan ($5/mo/extra
person),
50% student discount
➢ Desktop and mobile
apps for most
➢ 1M subscribers
➢ Tidal Premium ($9.99),
ad-free, 320 kbps
➢ Tidal HiFi ($19.99),
ad-free, 1411 kbps
➢ No desktop or mobile
app for Windows
Phone, Phone, Mac, etc.
➢ Pays more to the artists than
competitors (all miniscule
amounts, even still)
15. Price
TIDAL HiFi:
$19.99 in the US
£19.99 in the UK
€19.99 in Europe
$96 HKD in Hong
Kong
TIDAL Premium:
$9.99 in the US
£9.99 in the UK
€9.99 in Europe
$48 HKD in Hong
Kong
Apple charges a 30% surcharge
on the monthly subscription.
Students in the US are eligible
for a 50% discount.
Discounted family plans are
available.
16. Promotion
➢ October 20: Tidal X
concert
➢ Made in America Festival
➢ Barclay’s concerts
➢ Celebrity endorsements
➢ Social media presence
18. Value Proposition, revisited
1. Indifference towards HIFI music
a. Lack proper equipment to distinguish
between low-bitrate and hi-fi audio
b. Mobile users: concern of larger data
usage for essentially similar content -
corresponding to US data plan
2. Consumers indifferent to artists’ benefits
3. Left with . . . exclusivity
1. High fidelity (hi-fi) music files
(1411 kilobytes per second, vs.
320 kbps)
2. Direct and transparent financial
benefits to artists: first-tier
artists (16) each received 3% of
the company and second-tier
artists a smaller amount
3. Exclusive content from artists
20. Pricing
BEFORE:
Tidal Premium ($10/mo) - 320kbps
Tidal HIFI ($20/mo) - 1411kbps
Change offerings by blending sound quality of Premium and HIFI
together. 320kbps is still HQ sound, and the average target consumer does
not care about any extra quality.
May anger small group of people (some past HIFI subscribers), but
making the product cheaper and simpler will gain subscribers.
NOW:
Tidal Premium ($9/mo) - music-only
Tidal Xclusive ($15/mo) - full-content
21. Pricing
Premium ($9): cheaper than before, cheaper
than competition -> gain greater market
share!
Xclusive ($15): cheaper than old HIFI with a lot of
interesting content -> unique differentiation!
Approximate growth rates - Cheaper price (Premium) and quality, unique product (Exclusive) will increase subscribers,
with approximately increasing growth rates for 3 years.
22. Promotion
ADVERTISING
➢ Free college concerts
➢ Student fairs (College Fest)
➢ #SocialMedia presence
➢ College ambassadors
➢ Popular music shows (The
Voice)
Spread awareness, build positive
DISCOUNTING
➢ Student Discount & Family Plans
➢ Reference Discounts
➢ Conversion Discount: old Premium
($10) to new Exclusive ($15), get
first year with no price change.
➢ Emphasize free trial
Gain more subscribers and market
share
Promote to target audience: young people
23. Product
➢ Focus on exclusive contents by artists for
fans
○ Video premieres
○ Bonus tracks and demos
○ Behind-the-scenes in the studio
➢Optimize customer experience
○ Tailor tempo-matching playlist for runners
25. Jay-Z and Samsung
➢History of partnership (MCHG)
➢Jay-Z recently took a meeting
with Samsung (rumors flying)
➢Rihanna just signed a
sponsorship deal for $25 million
26. Samsung Partnership
Why?
➢ Samsung just shut down Milk Video
service and it’s music service isn’t doing
well, either
➢ Samsung has 28.7% market share of
smartphone users (54.55 million in US)
➢ Apple partnership with Beats
How?
➢ Preinstall Tidal on all Samsung devices and
give users a free trial
➢ Samsung users get exclusive content vs. other
Tidal users
➢ Samsung markets Tidal to customers
➢ 25% retention would be an additional 13.5
million users (50% or 27 million)
Editor's Notes
Typical American spends 28 min/day streaming music
21% increase in mobile app usage and 79% increase in music app usage
Twitter focused (skip)
Average Age
Perception of ‘free’ music
Average spending: http://www.statista.com/statistics/325994/music-spending-average-consumer/
Average spending on online music streaming (U.S) : $3/year
Sarah
Sarah
Manny
Manny
Our model assumes a consistent Premium:Exclusive ratio throughout all three years (simple). Realistically, people may switch to the Exclusive package (especially with incentives and discounts), changing the segmentation towards the more expensive offer = more profit!