UMG Presentation Pitch.

1. By: Nicholas Braun, Adrian Perez Zaid, Khiry Cross

2. Big 3 Label
80% From Touring
40% Dip in Merch Sales
Large Scale Touring
ORGANIZATIONAL CHALLENGES

3. Secure the Future of UMG:
Merchandise Bundling

4. Secure the Future of UMG:
Merchandise Bundling
Merch Importance K-Pop Success Increase Average

5. Secure the Future of UMG:
Merchandise Bundling
Taylor Swift Drake Post Malone Billie Eilish Ariana Grande Lady Gaga Olivia Rodrigo BTS Justin Beiber

7. Have 80% of Top Artists
Bravado Merch Co.
Stagnant Innovation
Merchandise Strengths
Merchandise Weakness

10. Strategy Implementation
Built-In Bravado 500,000 Year 1
Existing Licensing
Legal: Operations:
Existing Systems
Project Manager(s)
Goals:
Expansion Yearly

11. Online Advertisements

12. Owned/Earned Media

13. Direct
Utilizing Existing Lists
Newsletters
Automatic Sign-Up
Special Announcements

14. 50,000 x Artist Price: $129.99 Cost: 50.37
Sales
Projections: $39,810,000 (Y1) | $59,715,000 (y2) | $99,525,000 (y3)

15. APR 22
Work With
Artists &
Begin
Designs MAY 22
First Draft
of Bundles
JUN 22
Start
production
on Merch
for Y1
JUN 22
Announce!
JUL 22
Finalize all
merch
bundles!
AUG 22
Launch 1st
Merch
Bundles
Pre-Launch Timeline

16. Album Cycle Timeline
Finalize Bundles
Prepare Website
-2-3 Months:
Begin Marketing
Announcement(s)
-1 Months:
Artists Interactions
Sell 50% of Stock
Launch Month:
Future Plans
Sell Initial Stock
+1 Month:

17. THANK YOU!

18. References
Aswad, J. (2021, August 5). Sony Music posts strong quarter as streaming rises 56%. Variety. Retrieved March 5, 2022, from
https://variety.com/2021/music/news/sony-music-earnings-streaming-1235034308/
Apptus. (2022, February 23). Generation Z: Online shopping habits and behaviour [2022]. Generation Z: Online Shopping Habits and Behaviour [2022].
Retrieved February 28, 2022, from https://www.apptus.com/blog/generation-z-online-shopping-habits/
Bravado. (2022, March 4) Retrieved March 5 from: https://www.bravado.com
Bravado. UMG. (2021, March 26). Retrieved March 5 from: https://www.universalmusic.com/label/bravado/
Blistein, J. (2020, March 30) Universal Music Group Details Plan to Help Artists During Coronavirus Outbreak. RollingStone. Retrieved February 28th, 2022 from:
https://www.rollingstone.com/music/music-news/universal-music-group-coronavirus-relief-plan-all-together-now-975198/
Bowenbank, S. (2021, September 21). Here's why Taylor Swift says her hands are in the 'permanent shape of Claw'. Billboard. Retrieved March 12, 2022, from
https://www.billboard.com/music/music-news/taylor-swift-fearless-taylors-version-signed-copies-permanent-claw-hands-9632962/
Bowenbank, S. (2022, January 12). Olivia Rodrigo's net worth has pretty much skyrocketed since she released "Drivers license". Cosmopolitan. Retrieved March
12, 2022, from https://www.cosmopolitan.com/entertainment/celebs/a35353559/olivia-rodrigo-net-worth/
Bukszpan, D. (2019, September 14). Vinyl records are on track to Outsell Compact Discs for the first time in 33 years and prices have risen 490%. CNBC.
Retrieved March 12, 2022, from https://www.cnbc.com/2019/09/14/vinyl-records-on-track-to-outsell-cds-and-prices-have-risen-490percent.html
Forbes Magazine. (n.d.). Hot topic. Forbes. Retrieved March 5, 2022, from https://www.forbes.com/companies/hot-topic/?sh=37a98c845943
Goldberg, J. (2022, February 21). E-commerce sales grew 50% to $870 billion during the pandemic. Forbes. Retrieved March 6, 2022, from
https://www.forbes.com/sites/jasongoldberg/2022/02/18/e-commerce-sales-grew-50-to-870-billion-during-the-pandemic/?sh=789c95e94e83
Götting, M. C. (2021, December 8). Warner Music Group: Net Income 2021. Statista. Retrieved March 5, 2022, from
https://www.statista.com/statistics/790035/net-income-of-the-warner-music-
group/#:~:text=Warner%20Music%20Group%20recorded%20a,over%205.3%20billion%20U.S.%20dollars.
Herman, A. (2021, July 20). How gen Z is driving the future of retail. NRF. Retrieved March 15, 2022, from https://nrf.com/blog/how-gen-z-driving-future-
retail#:~:text=These%20generations%20are%20using%20social,about%203.8%20hours%20each%20day.

19. References
Hodak, B. (2018, March 7). New study spotlights gen Z's unique music consumption habits. Forbes. Retrieved March 5, 2022, from
https://www.forbes.com/sites/brittanyhodak/2018/03/06/new-study-spotlights-gen-zs-unique-music-consumption-
habits/?sh=5ceb2dae42d0
How artists are making the most of Merch during the pandemic – Spotify for artists. – Spotify for Artists. (n.d.). Retrieved February 28,
2022, from https://artists.spotify.com/en/blog/how-artists-are-making-the-most-of-merch-during-the-pandemic
Ingham, T. (2022, February 3). In tough year for Merch sales, bravado CEO exits Universal Music Group. Music Business Worldwide.
Retrieved February 28, 2022, from https://www.musicbusinessworldwide.com/in-torrid-year-for-merch-sales-bravado-ceo-exits-universal-
music-group/#:~:text=Global%20merchandise%20sales%20at%20UMG,(on%20an%20organic%20basis).
Kusek, D. (n.d.). The musician's Essential Guide to Merch: What to get, how much to charge, and where to buy. Sonicbids Blog - Music
Career Advice and Gigs. Retrieved March 12, 2022, from https://blog.sonicbids.com/the-musicians-essential-merch-guide-what-to-get-how-
much-to-charge-where-to-buy
Lee, W. Faughnder, R. (September 22, 2021). A risky bet fueled Universal Music’s resurgence. Now it’s publicly trading. LA Times.
Retrieved February 28th, 2022 from: https://www.latimes.com/entertainment-arts/business/story/2021-09-21/universal-music-stock-sale-
streaming-vivendi-grainge
McDonald, H. (2019, November 20). Find out what to expect with merchandise deals and contracts. The Balance Careers. Retrieved
March 11, 2022, from https://www.thebalancecareers.com/points-of-tour-merchandise-deal-2460908
McIntyre, H. (2017, April 17). The new role merchandise plays when creating a musician's Brand. Forbes. Retrieved February 28, 2022,
from https://www.forbes.com/sites/hughmcintyre/2017/04/17/the-new-role-merchandise-plays-when-creating-a-musicians-
brand/?sh=623713df29e6
Moniuszko, S. M. (2020, February 6). Taylor Swift signs deal with Universal Music Publishing Group, says leadership supports 'women's
empowerment'. USA Today. Retrieved February 28, 2022, from
https://www.usatoday.com/story/entertainment/music/2020/02/06/taylor-swift-si
gns-deal-universal-music-publishing-group/4678412002/

20. References
Music Tour Merch sales begin to bounce back. Licensing International. (2021, December 13). Retrieved March 6, 2022, from
https://licensinginternational.org/news/music-tour-merch-sales-begin-to-bounce-back/
Pickert, R. (2022, February 10). U.S. Inflation Charges Higher With Larger-Than-Forecast Gain. Bloomberg.com. Retrieved March 6, 2022, from
https://www.bloomberg.com/news/articles/2022-02-10/u-s-inflation-charges-higher-with-larger-than-forecast-gain
Sedran, O. (2021, October 10). Band Merch on a budget - pricing and ideas for DIY Artists. LinkedIn. Retrieved March 12, 2022, from
https://www.linkedin.com/pulse/band-merch-budget-pricing-ideas-diy-artists-olivia-sedran/
Statista, Published by Statista Research Department. (2021, October 27). Global Social Media ADS CTR 2021. Statista. Retrieved March 15, 2022, from
https://www.statista.com/statistics/872099/social-media-advertising-
ctr/#:~:text=Social%20media%20ads%20CTR%20worldwide%202020%2D2021&text=Recent%20evaluation%20of%20social%20media,media%20CTR%
20was%201.2%20percent.
Resnikoff, P., Smith, D., & King, A. (2017, April 7). Millennials listen to 75% more music than baby boomers, study finds. Digital Music News. Retrieved
March 5, 2022, from https://www.digitalmusicnews.com/2016/06/02/millennials-listen-more-music-baby-boomers/
Rolling Stone. (2020, April 27). How coronavirus is wreaking havoc on music. Rolling Stone. Retrieved March 3, 2022, from
https://www.rollingstone.com/pro/lists/coronavirus-music-business-latest-974262/the-week-the-music-stopped-984573/
Sony Music. Sony Music Entertainment. (n.d.). Retrieved March 5, 2022, from https://www.sonymusic.com/
Spangler, T. (2022, February 17). Universal Music Group teams with Curio to sell NFT Digital Collectibles for music artists, labels. Variety. Retrieved March 1,
2022, from https://variety.com/2022/digital/news/universal-music-group-curio-nft-1235184683
Stassen, M. (2022, February 17). Universal partners with Marc Geiger-backed NFT platform curio to develop NFTS for its global artists and Labels. Music Business
Worldwide. Retrieved March 1, 2022, from https://www.musicbusinessworldwide.com/universal-partners-with-marc-geiger-backed-nft-platform-curio-to-develop-nfts-
for-its-global-artists-and-labels1/
Study uncovers how much money K-pop fans spend on their favorite groups. VICE. (n.d.). Retrieved February 28, 2022, from
https://www.vice.com/en/article/xgzwy3/kpop-fans-money-spent-merchandise-albums-concerts-korea-bts-bt21-blackpink

21. References
Taylor Swift signs exclusive global publishing agreement with Universal Music Publishing Group. UMG. (2020, February 6). Retrieved February 28, 2022, from
https://www.universalmusic.com/taylor-swift-signs-exclusive-global-publishing-agreement-with-universal-music-publishing-group/
Tsvetkova, R. (2021, April 16). How much do ads cost on Instagram, Facebook, twitter & linkedin? Falcon.io. Retrieved March 15, 2022, from
https://www.falcon.io/insights-hub/topics/social-media-roi/how-much-do-ads-cost-on-facebook-instagram-twitter-and-linkedin-in-2018/
UMG’S Response to Covid-19. Universal Music Group. (March 30, 2020). Retrieved February 28th, 2022 from https://www.universalmusic.com/covid-19-
response-news/
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E11794_P24.htm
Universal Music Group and Authentic Brands Group announce strategic initiative to acquire and actively manage artist brands. UMG. (2021, November 16).
Retrieved March 1, 2022, from/
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https://www.universalmusic.com/universal-music-group-n-v-reports-financial-results-for-the-third-quarter-ended-september-30-2021/
Universal Music Group Makes history with 2019 artist success. UMG. (2020, March 9). Retrieved March 3, 2022, from
https://www.universalmusic.com/universal-music-group-makes-history-with-2019-artist-success/
U.S. Census Bureau (2020)
Valve and Meter, 2020 PPC statistics - a comprehensive list of pay-per-click stats. Valve and Meter. (2020, February 26). Retrieved March 15, 2022, from
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als%20industry.
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22. Images
Graphics from UnDraw
Images Sourced from UnSplash
https://media.gq.com/photos/608c579919cc29647abfe295/16:9/w_1280,c_limit/178666247_473457073860908_6360102480389743255_n.jpeg
https://americansongwriter.com/wp-content/uploads/2013/03/Taylor-Swift-22.jpg
https://iscale.iheart.com/catalog/artist/30779802
https://i.guim.co.uk/img/media/70f6cbdd9735d555838d285f8092951aa795b044/336_536_3086_1851/master/3086.jpg?width=1200&height=1200&quality=85&auto=format&fit=crop&s=f830
c8a0cb0e550f1882669be4915dd3
https://assets.teenvogue.com/photos/613b5fd248eda7f19679403c/4:3/w_1999,h_1499,c_limit/1235152164
https://upload.wikimedia.org/wikipedia/commons/thumb/e/e0/Lady_Gaga_at_Joe_Biden%27s_inauguration_%28cropped%29.jpg/1200px-
Lady_Gaga_at_Joe_Biden%27s_inauguration_%28cropped%29.jpg
https://static01.nyt.com/images/2021/05/21/arts/21review-rodrigo01/merlin_188054001_2a34e77d-e653-488a-a4d9-1a0f1ddf73e4-superJumbo.jpg
https://st1.bollywoodlife.com/wp-content/uploads/2021/03/BTS-Taehyung-Jimin-Jin-RM-Jungkook-Suga-J-Hope.jpg
https://variety.com/wp-content/uploads/2017/09/justin_bieber.png?w=1024
https://upload.wikimedia.org/wikipedia/commons/thumb/d/d8/Warner_Music_Group_logo_%282021%29.svg/1200px-Warner_Music_Group_logo_%282021%29.svg.png
https://upload.wikimedia.org/wikipedia/en/thumb/4/40/Sony-Music-Logo.svg/1200px-Sony-Music-Logo.svg.png
https://hottopic.scene7.com/is/image/HotTopic/hottopic_logo_nvr?fmt=png-alpha&wid=600
Taylor Nation: Twitter, Instagram, TikTok
@taylorswift13 TikTok Page
@cantspeakabout TikTok Page
@universalmusicgroup Instagram

23. THANK YOU!

24. Sales Projections
Year One Year 2 Year 3
Unit Volume 500,000 750,000 1,250,000
Unit Price $129.99 $129.99 $129.99
Unit Cost $50.37 $50.37 $50.37
Net Sales: $39,810,000 $59,715,000 $99,525,000

25. Year One Year Two Year Three
Net Sales $39,810,000 $59,715,000 $99,525,000
Marketing $1,133,500 $1,467,500 $1,868,000
Employees $134,000 $134,000 $201,000
Payroll Taxes $26,800 $26,800 $40,200
Total Expenses $1,294,300 $1,628,300 $2,109,200
Net Profit / Loss $38,515,700 $58,086,700 $97,415,800
Net Profit / Loss % 97% 97% 98%
Income Statement

26. Marketing Cost Explained
Year One Year 2 Year 3
Social Media
Ad Clicks
650,000 800,000 1,250,000
Average CPC $1.33 $1.33 $1.33
Google Ad
Clicks
100,000 150,000 200,000
Average CPC $2.69 $2.69 $2.69