A slide to talk about Strategic Marketing of Polyphonic

1. PROBLEMS IDENTIFICATION
oNew technology:
•No competitors in thesame field
•No certificate or technical approval for HSS from a third party
•Trustable: customers (alllabels, producers or artists) have still notbeen“convinced” bythe efficiency of Polyphonic’sprovided services: using math to measure emotion activities;
oNotdefined marketing plan:
•The management was still seeking a clear and detail plan for their product & service marketing
•They havenot focusedon a target marketyet
STRATEGIC ISSUES
oPolyphonic needs money immediately
oLimited Budget of150.000 $ so Polyphoniccanchoose onlyonetarget market
oAfter choosing the target market, Polyphonichasto choose Marketing approach (4P)
•Price
•Placement (positioning)
•Promotion
•Product

2. Criteria
Labels
Producer
Artist
Profitability
1
2
3
Marketsize
3
2
1
Customercircle-life
1
2
3
Marketingcosts
3
2
1
Price
1
2
3
ANALYSIS
Internal parameters:
•FC: 500.000$
•Investments: 600.000$ development of HSS
150.000$ marketing budget
•VC: 300$ per album (10 songs)
External parameters:
•Traditional methods cost: from 3.000$ to 10.000$ per song
•Promotional cost for singles: from 300.000$ to 1.000.000$
Capacity:
•2 hours to analyze album
•4 album per day (8 hours), 20 per week(5 days), 1.000 per years (50 weeks).
•30.000 albums every year, 22.500 album under majors (75% of the market)
BEP price: [500.000$+(300$x1.000)]:1.000=800$
Assumed a hypothetical price of 10.000$ (premium price) per album analysis for offering the Labels
•Full capacity:
(10.000$x1.000)-[500.000$+(300$x1.000)]=9.200.000$
•Minimum quantityto cover FCper year:
10.000$x50 = FC = 500.000$ Minimum Q= 50albums

3. RECOMMENDATIONS
Target Market :
•Polyphonic should be focused on the Labels segment because this segment has the highest possibility to gain fastrevenue in bigger quantities, and shouldguarantee a long customer circle-life.
Price:
•The price should be about 10.000$ per album, to be a top price which ensures a sustainablerevenue and represents the high quality and the uniqueness of the product.
Selling approach :
•Polyphonic has to address directly to the record labels(B2B)and should give free-demonstrationsfor each majors (1-2 albums per major) in order to persuade the labels and prove the efficiency of HSS product.
Positioning:
•They have to concentrate their marketing campaign on the success rate (80%) which helps labels in costssavings(eliminatingmarketing costsdue to releases ofunsuccessful songs). Therefore, Labels will mainly invest in future hits and won’t lose money in songswhichdo not havea potentialto becomehits.