Marketing Strategies For Music Companies In The Digital Era

Setting of Goal

Discuss about the Music Companies Brand And The Market Artists In The Digital Era.

The objective of this paper is to explain several factors related with marketing package of Music in Australia. The paper will also indicate the market sixe available for the Qmusic Company along all the target market segments. It will also focus on explaining the ways in which high school or university students can be persuaded to attain membership of QMusic and manage the awareness campaign within South East Queensland (Allen, Rolston Macy & Hutchison, 2015).

The current paper will focus on elaborating the ways in which QMusic is focused on impacting students for becoming members and to participate within Big Sound festival. Marketing management analysis of the music company will identify the market size from target market segments. Based on the same, the membership campaign will be developed for increasing awareness along university members and persuade them to acquire QMusic music festival membership packages (Banks, 2018).

The topic that will be covered in this report is to analyze the ways in which marketing approaches of Music impacts the students of the university so that they become important members of their music fesuvals. The scope of the report is also focused on analyzing the manner in which the students from different places can be impacted in attaining QMusic membership (Besana & Esposito, 2017). Relevant information can be gathered from secondary sources such as articles, newspapers, journals as well as websites from which important data can be collected in preparing the report in an effective manner.

However, it must also be considered that there are certain limitations of the report that will be addressed in future research. These gaps include knowledge and literature gaps as well as cost and time constraints (Brae, 2017). The secondary data sources might also have the limitation of being less genuine and authentic that can result in generating less authenticated and relevant data. This can contribute to the limitation of the report.

Music is positioned as a renowned music industry development company positioned in Queensland which as revolutionaries’ music career over the past years. The mission of this company is to develop the cultural, artistic and economic value of the contemporary renowned music in the nation. The mission objective of QMusic is also to offer maximum social, economic and cultural returns within Queensland (De Smaele, De Wispelaere & Van Stappen, 2014).

Q-Music Situation Analysis

The marketing plans and goals of QMuisc membership are to persuade the students of universities and high schools to attain membership of this music association in Australia. Membership packages offered by QMusic encompass improved scopes, networking and related opportunities, event and application discounts along with advantages and travel portal (Dellyana, Simatupang & Dhewanto, 2017).

Membership strategies by QMusic were implemented in order to make sure that the consumer might be offered with effective music membership of the company. The membership packages were segmented into wages, unwaged, band, business, individual or sole trader, interstate, regional along with international (Dewan, Ho & Ramaprasad, 2017). This facilitated its consumers to select the most suitable package as per their needs along with demand of these target audiences. Along with that, the prices they wish to spend on the membership packages of this music association.

Strengths · Positioned among the major music associations within the industry and has a commercial radio station named Medialaan that is successful · Has effective mobile applications for smart phones that contains wide range of music	Weaknesses · Differentiation is less in the programs aired on the radio stations · High cost of Music membership packages that can be ineffective in attacting a huge audience base
Opportunities · Students are offered with increased opportunities and they are persuaded in a way that awareness can be spread among the consumers that can enhance brand image · Better services can be offered by QMusic through launching new music events as per young consumer preferences	Threats · Less penetration within other market segments with its music shows · Existence of tough competition from 3MMM, ABC Jazz and FM whose advertising events are more effective than that of QMusic

PESTEL analysis is carried out in order to analyze the environment within which QMusic operates its music events and analyzing the same can also facilitate in increase awareness campaign of the QMusic.

• Political- The government provides support to QMusic through imposing new tax laws that contributed in revenue generation that has further affected operation of the business. Due to such regulations, laws and rules in order to manage the membership packages that were acquired by consumers (Ferrari, 2015).
• Economic- Economic factors impacting the business environment of QMusic includes process that were set focused on packages that further impacts the consumer purchase intentions.
• Social- In social aspect, the local culture is observed to be followed by QMusic events that make sure that the songs played as per the local target market’s taste and preferences (Hudson, Roth, Madden & Hudson, 2015).
• Technological- Technological advancements support QMusic in managing music event promotions along with programs that can facilitate in interacting with target audiences belonging to universities and schools. This might also impact the consumer behavior in attaining membership packages easily from the online medium by QMusic (Kim, 2016).
• Environmental- The environmental factors that impacts QMusic event functioning includes the events and programs operation without negatively affecting natural resources and conducting music shows in a nature friendly surrounding (Kim, 2016).
• Legal- The legal factors impacting the business environment of QMusic includes regulations, laws and rules set by the government  in order to manage the membership packages that were acquired by consumers.

Figure 1: Competitive Positioning of QMusic

(Source: Sweeney, Dorey & MacLellan, 2015)

The issues can be associated with the ways through which the students belonging to universities, high school or TAFE can be attracted and persuaded so that membership awareness can be spread among them. Issue exists in persuading these target audiences in joining the membership awareness campaign of South East Queensland of Australia (Revella, 2015).

Corporate strategy objective of Music is focused on imputing the behaviors of consumers that can facilitate them in attaining membership packages provided by this music association.

Specific Membership Objective

Specific membership objective of QMusic is focused on gaining attention from the company’s target market in Australia that includes high school and university students. Membership packages must be offered to its huge client base that can be an individual, unwaged individual and the sole trader (Skandalis, Byrom & Banister, 2017).

The three year marketing plan developed for QMusic is explained under:

• Product- QMusic products include music festival membership packages for attaining music services along with assessing the resources available with this music association. Music events, workshops along with programs that include Big Sound along with renowned bands and musicians are also music services offered by QMusic (Ryan, 2016). Qmusic will focus on developing product diversification through introducing new music shows and subscription packages.
• Price- The prices of its membership packages and music shows are set as $44/yr, $55/yr, and $110/yr, $220/yr meant for sole trader, individual, business, band or members of QMusic. Pricing strategy of QMusic will focus on setting cost differentiation strategy in which low cost subscription packages will be introduced based on consumer preferences.
• Place- The place selected by Music will be South-East region of Queensland in Australia in which target audiences can be attracted for purchasing the membership packages based on their demands (Sweeney, Dorey & MacLellan, 2015).QMusic will develop a place strategy to tap new locations of Australia in which its shows are not conducted.
• Promotion- Promotion of QMusic is carried out through employing several advertising strategies ad through sending emails to university and high school students. Such advertisements are circulated among the target audiences that can persuade their buying behavior. Pamphlets of music shows were also distributed in order to reach the target audiences. New promotional strategy of QMusic will be through social media channels those are observed to have increased reach among young target audiences.
• People- Important people for QMusic include the organizers of the music shows and the radio jockeys. Other vital people for QMusic include band artists, musicians along with the event organizers of QMusic music association (Tschmuck, 2017). People focused strategy of QMusic is on engaging new music artists from the high schools and universities for offering them chance to introduce new shows.
• Process- The process can be managed through attracting the musicians, artists, students, and industry bloggers along with the young professionals. For the music events organized by QMusic to be effective, they require to be involved in music programs and events that will ensure that positive brand image and name is attained by QMusic. Process based strategy of QMusic will be focused on conducting live shows in universities within which the music association has not conducted any shows. This can increase the target audiences’ willingness to purchase subscription.
• Physical evidence- QMusic offers its consumers with a membership package card relied on the purchased package. This membership card can facilitate it audiences in attaining access to services provided by the membership package (Sweeney, Dorey & MacLellan, 2015). Such physical music products include VIP networking invitations, application discounts, and ticket and traveling expense discounts along with resources and community hub availability. QMusic Company will develop physical evidence strategy of offering low priced or free music subscription packages for a limited period to thetarget audiences.  

Particulars	2018	2019	2020
Sales revenue:
Annual units expected to be sold:
Online radio box	1,450	1,740	2,088
Home audio and theatre	1,000	1,150	1,323
Music festivals	1,300	1,430	1,573
Q Music shop	900	1,125	1,406
Total annual units to be sold	4,650	5,445	6,390
Selling price per unit (in AUD):
Online radio box	90	92	92
Home audio and theatre	400	405	420
Music festivals	200	210	225
Q Music shop	350	365	380
Total average selling price per unit	260	268	279
Total sales revenue	1,209,000	1,415,700	1,661,335
Cost of goods sold:
Cost of sales per unit (in AUD):
Online radio box	55	60	60
Home audio and theatre	250	260	254
Music festivals	120	130	125
Q Music shop	245	250	240
Total average cost of sales per unit	168	175	170
Total cost of goods sold	778,875	952,875	1,084,660
Gross profit	430,125	462,825	576,675

Table 1: Income and Expenditure Statement of Q Music

Particulars	2018	2019	2020
Cash flows from operations:
Cash receipts from customers	1,088,100	1,274,130	1,495,202
Cash paid for:
Inventory purchase	233,663	285,863	325,398
Income tax	52,868	79,895	89,902
Net cash flows from operations	801,570	908,372	1,079,901
Cash flows from investing activities:
Sale of property, plant and equipment	–	–	–
Purchase of property, plant and equipment	170,000	120,000	160,000
Net cash flows from investing activities	170,000	120,000	160,000
Cash flows from financing activities:
Loan repayment	525,000	575,000	587,500
Stock repurchase	–	–	–
Net cash flows from financing activities	525,000	575,000	587,500
Net increase in cash	106,570	213,372	332,401
Cash at the beginning of the year	–	106,570	319,942
Cash at the end of the year	106,570	319,942	652,343

Table 2: Cash Flow Statement of Q-Music

Non-financial resources of QMusic encompass those assets that are attained by this music association and include tangible resources such as vehicles, machineries, stadiums, music boxes and other equipments (Rao & Kurtz, 2015). These non-financial resources can be managed through ensuring efficiency of such machineries along with making sure that they are operating on a better condition at the time of music events. Other non-financial resources include human resources that are required to be managed efficiently as they contribute to workplace effectiveness in QMusic music shows. The employees of this music association are well trained as they attain enough knowledge regarding the ways in which target audiences can be attracted and can be influenced to purchase membership packages from QMusic.

Development of Strategy

Supervising and reviewing must focus on tracking the process as well as analyzing the effectiveness of tacking and checking process focused on market segments that has not been adequately targeted (Meier, 2017). This can also facilitate in monitoring the overall marketing plan of QMusic. This can also facilitate in determining the feasibility of this marketing plan in managing the membership awareness initiative of the music association. Proper tracking of this plan is necessary in analyzing whether the company needs are met and for determining the market size of music lovers in Queensland.

Conclusion

The objective of this paper is to explain several factors related with marketing package of QMusic in Australia. It also focused on explaining the ways in which high school or university students can be persuaded to attain membership of QMusic and manage the awareness campaign within South East Queensland. It was gathered from the paper that marketing strategies by QMusic were implemented in order to make sure that the consumer might be offered with effective music membership of the company. The membership packages were segmented into wages, unwaged, band, business, individual or sole trader, interstate, regional along with international. This facilitated its consumers to select the most suitable package as per their needs along with demand of these target audiences.

Recommendations to the QMusic are offered for improving its marketing initiatives based on SMART framework:

Specific	QMusic is recommended to offer free tickets of music programs and events in order to develop interest in them and for persuading them to attain membership with the music association
Measurable	It is also recommended that the music association must decrease its membership packages and show tickets costs. This can attract a huge audience base that will increase profitability of this music association.
Attainable	The community resources and hub must be offered with increased availability and for attaining high advantages and discounts
Realistic	QMusic is recommended to enhance its Industry Connect Program in order to support the musicians and employees to generate higher opportunities and scopes. This can facilitate the target students in purchasing its membership packages.
Timely	QMusic must also consider generating new opportunities for emerging artists and musicians for carrying out live performance in Big Sound in the upcoming year. This can attract a huge consumer base for being its membership packages.

References

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