The purpose of this assignment was to effectively showcase the ability to use entrepreneurial skills by creating a business plan and pitching the idea to a superior. My team came up with "Syncresis", a new alternative to Spotify based on Tidal. As part of a group effort I was tasked with creating the marketing plan. The following text is from our mock-business proposal.
ADVERTISING & PROMOTION CAMPAIGNS
Since the largest portion of our targeted market is the indie crowd much of our marketing will be catered towards them. As stated in a Spotify report 93% of those questioned would be open to trying out a new music streaming experience. With the added benefit of this demographic typically being correlated with innovators, and a history of setting trends, the market is very much in our favor since our competitors have become the ‘mainstreaming’ option. To make our company appealing we must have strong ethics since millennials tend to spend their money where they believe it is going to the right place. We want our users to be reaching for the future and our company to embody that mindset.
The demographics will be young millennials, generally 15-35. A portion of these people will be still living with their parents and therefore will need to do influencing of their own to get their parents to opt for our service. Our advertising will take place in major urban cities as that has the highest percentage of indie enthusiasts. Race is not a relevant demographic since indie tends to be very diverse in race. Psychographics are a much more prominent aspect of this style of marketing as indie music lovers have a very prominent sense of style. Since these are younger people they tend to have less income, but tend to go out of their way to spend when it has to do with style.
Advertising will be highly based on what advantages are gained on subscribing to us over other music streaming services since the majority of the population we are targeting are already well aware of what music streaming services are. These advantages are that we provide higher quality sound for the free accounts, a closer connection with musicians that get paid more for participating in our streaming service than competing companies, providing discounts through partnerships with music festivals, and chances to win free tickets and discounts. With these in mind of the consumers are sales should be sky-rocketing.
MEDIA USED/WEB PRESENCE
Instagram will be a very highly used social tool for our company. In our first year we hired an Instagram specialist who bought an already existing Instagram account with hundreds of thousands of followers that already posted about indie music. We lost followers once the account switched over to us, but another reason we hired the specialist was so that we could easily gain more through their expertise. Since then we pay other Instagram users such as famous users or influencers to post about our content. Each time it generates an abundance of followers. Syncresis quickly became a verified user on Instagram.
We post visually stimulating photos to keep even people who aren’t interested in the company following us and captivate the attention of those who have yet to follow. The reason Instagram matters so much as an advertising tool is because it’s very popular with the indie crowd who tend to spend more attention on media related art. It’s also a very powerful tool to generate awareness of promotions and prizes. Twice a year for big events we will pay for an Instagram ad. We will have contests for our followers to create their own advertisement and feature their art in our advertisements. Followers will be pushed to vote on which is the best. People may get their friends to help support their artwork and will generate buzz about our company. Winners will not only be known for their art, but also receive free music festival tickets. Below is our Instagram account and Advertisement example.
We are also present on Facebook and Twitter however these don’t require a specialist for each, only a social media specialist to post and respond to people. The duty of this person is to basically mirror the Instagram specialist.
We believe traditional television is a dying art and therefore will be focussing on creating high-quality Youtube media in hopes to go viral with comedic/strange advertisements. These will be mainly writing focussed rather than being flashy with celebrity endorsements. Only a portion of the video will be posted on Youtube, a link in the description will lead the consumer to be able to view the rest on our website for free. Youtube also provides advertisement slots before videos so we will take advantage of this.Youtube influencers will also be hired to promote our product in their videos. We hired an advertising company to set up billboards and public advertisements in condensed areas in six major cities year round. Selected areas are Los Angeles, New York, Portland, Seattle, Silicon Valley, and Austin.
We will be attending five of the most popular music festivals and five of the most popular indie music festivals with a booth representing our brand. There we will be handing out coupons to receive %15 off your subscription to Syncresis and %25 if you refer a friend as well. The friend will also benefit with %15. We will also be selling merchandise with our logo on it.
Buzzfeed has generated great results in captivating the views of indie lovers and extremely skilled in getting people to read sponsored content between teenagers to young adults. This is why we plan to have fifteen posts written about us per year. Their advertising of us will create a positive image of our company as well.
The third employee in marketing will be the art director designing advertisements that appeal to millennials. Some of the advertising we provide on our site will be in partnership with other businesses advertising for us. Examples of this would be small time indie musicians, indie outlets, vinyl and vintage stores, Amoeba, Urban Outfitters, Etsy, The Echo, The Smell. Each carefully selected as something indie lovers associate with.
MEDIA COSTS & FREQUENCY
Entire Budget: 2,500,000
Youtube videos will be given a budget of $167,000 for the year. Costs mainly spent on writers.
Instagram Advertisement $350,000 x2 (Twice a year to promote large events)
Contest winner tickets $335 x 6 = 2,010 x 6 = 12,060 (6 tickets 6 different times for different concerts around the world)
Instagram advertising campaign $57,000
Billboards and public advertisements for a month $14,000 x 12 = $168,000 x 6 = 1,008,000
Tumblr Advertisement $25,000 x 5 = 125,000
Music festival booth $2,700 x 10 = 27,000
5 sponsored content Buzzfeed posts 100,000$ x 3= 300,000
YouTube ad .10 cents per view
YouTube endorsements $100 x 40 = $4,000
FreeAppsFast promotion $96,000
Facebook promote $10 a day = $3,650