MARKETING STRATEGY

SRF Music has developed a marketing strategy designed to enhance, promote and support the belief that its artists fill a void in the music industry.  To accomplish this, the label will position itself as an eclectic independent record production and music publishing company, advertising its first releases with a quality and integrity appropriate to their respective musical styles and markets.

Target Marketing

To effectively market records to their final consumers, SRF will coordinate artist/product development, public relations, promotion, sales and distribution efforts.  The key to success will be the maximization and efficient use of all human and financial resources to effectively reach record consumers.

The label's target audience is made up of White and Afro-American males and females, ages fifteen to thirty-four.  This market is segmented into two main categories of consumers:

Active Music Consumers.   Soundata, a music/entertainment research company, estimates that there are seventy-two million "Active Music Consumers" (persons over the age of twelve who have made at least three prerecorded music purchases in the past six months) in the United States.  They are responsible for ninety percent of all music purchased and typically spend an average of $49.37 per shopping trip.  Forty-eight percent of all U.S. households contain at least one person who fits this criteria.

Active Music Consumers look to buy records released by new artists, listen to college radio, read music magazines religiously (including "underground" magazines) and frequently purchase obscure music, particularly that which is marketed by independent labels.  These consumers are motivated by a desire to be on the vanguard of the "next big thing."

 

The stores patronized by Active Music Consumers range from traditional chains to large discount merchandisers such as Best Buy and Circuit City.  Survey results presented by Soundata at past NARM conventions showed that nearly one-third of all Active Music Consumers buy their prerecorded music in stores other than national chains.

 

Moreover, fifty-five percent of Active Music Consumers visit a record store monthly, and nearly forty percent of those consumers make a purchase.  A solid sixty percent of Active Music Consumers say that, compared to movies, buying prerecorded music is a "good value."  Indicating that consumers attach more importance to the music than the price, a majority of Active Music Consumers surveyed by Soundata in the past said they never choose to buy one CD over another solely because it is "less expensive.'

 

Finally, Soundata surveys reveal that Active Music Consumers are technologically up-to-date:  more than fifty percent own or have access to a PC and internet access, and more than fifty percent of those have either CD-ROM or DVD drives.  This means that this group of music consumers not only shows a propensity to purchase music via computer online services, but owns the equipment necessary to do so.

 

Average Music Consumers.   This group of consumers includes all other buyers of prerecorded music.  A large number of these consumers watch several hours of MTV a week, listen to commercial radio daily and read mainstream music magazines such as Rolling Stone.  They typically purchase records which either are or have been "chart toppers."  The principal buying motive for this group of consumers is the desire to be part of the current trend.  These fans purchase records after they become popular with Active Music Consumers. 

 

Development of a Loyal Fan Base

A loyal fan base is the backbone of every recording artist's success.  Loyal fans are consumers who buy every record released by an artist, are avid attendees of the artist's concerts and openly support the artist's career.  Active Music Consumers account for most of an artist's loyal fan base; consequently, it is imperative that SRF concentrate its primary marketing and promotional efforts on this group of consumers. 

MARKETING & PROMOTION STRATEGIES & TACTICS

SRF will implement a variety of marketing, promotion and public relations tactics to generate record sales.

Radio Airplay.  Promotion efforts will revolve around securing heavy radio airplay -- the single best way to ensure market saturation, and, therefore, a record's success.  Of particular importance will be airplay on those radio stations programmed with the "Triple-A" (Adult Album Alternative) format.  A prerequisite to obtaining this coveted airplay may be the hiring of one or more independent record promoters, who traditionally have bee regarded as being capable of "making" or "breaking" a new release.   Therefore, the marketing/advertising/promotion budget stated above is not "etched in stone."  Funds can -- and more than likely will -- be moved around to afford as much flexibility as possible in the overall marketing mix.

 

Video Airplay...