Outline of entire business responsibilities and activity for Lathams Music

1. Background History
Established in 1949 as “Latham & Elvidge Pianos”
1968 evolved to “Lathams Piano and Organ Centre”
Ultimately trading as “Lathams Music” - Company Name: A.O. Latham
& Sons Pty Ltd
ABN 45 000 658 033
Accountant: Taggart Partners, Hamilton (Melanie Hamilton)
Solicitors: Attwaters, Newcastle (John Attwater)
Business Bankers: NAB, Wickham (Lisa Rudd, Scott Smith)
Memberships and Licenses
Australian Music Association AMA
Australian Retailers Association ARA
Australian Performing Right Association APRA
Phonographic Performance Company of Australia PPCA
APMC Systems and Halifax Consulting Group MUSIPOS
Geographical Location History
1949-1968 – Hunter Street, Newcastle
1968-1988 – Maitland Road, Mayfield
1974-2010 – Kotara Fair Shopping Mall / Garden City Shopping Centre
/ Westfield Shopping Centre
1988-1999 – Charlestown Square Shopping Centre
1980-2010 – Bi-Annual Casual Leasing activity @ Greenhills Shopping
Centre
2010-2011 – Bradford Close, Kotara and Molly Morgan Drive,
Greenhills

2. Lease Agreements
Kotara Lease 5 years + 4yr option + 4 yr option Commencement May
2010
Greenhills Lease 5 years - Commencement August 2010
Product Range
Pianos - Acoustic Uprights and Grands, Digital Pianos and Ensembles,
Stage Pianos and Portable Pianos
Keyboards - Beginner and Intermediate
Print Music - PVG, Easy, Classical, TAB, Singles, Scores, Band, Wide
range of Instrumental, Choral, Reference Texts, Teaching Material,
Exam Music, Dictionaries, Lyrics, Papers and Analyses
Guitars - Acoustic, Acoustic/Electric (Semi), Electric, Bass, Acoustic
Bass, Classical, Kids Nylon ¼ - ¾
Amplifiers and PA - Acoustic, Electric and Bass Amps, Public Address
Systems
Drums - Percussion, Assorted Drums, Drum-Kits
Brass and Woodwind - Trumpets, Trombones, Flutes, Clarinets, and
Saxophones
Software - Music Notation, Theory and School Curriculum Software
Accessories - A wide range of accessories available through a huge
array of suppliers
Giftware - A huge range of giftware, some unique to the industry
Employees, Staffing Levels and Rosters
Currently employing 19 staff members (excluding Directors and Family).
Composition 2 Full-Time Members, 3 Permanent Part-Time Members,
and 13 Casual Staff Members and 1 Casual Keyboard/Piano Teacher.
Various Sample Rosters available.
Last Peak Season Sample Rosters are to be provided.
Staffing levels are high due to the diverse nature of customer needs.
It is often preferable for an employee to possess multiple musical
talents in order to more efficiently satisfy our customer’s needs.

3. Summary of Staff
Tracey – 19-years PPT service - Print Music, Brass & Wind, Piano,
Keyboard, School Sales, Store Supervisor
Joan – 11-years C service - Piano Sales, After Sales / Customer
Service
Simon – 9-years FT service - Guitar, Guitar Music, Sound
Amplification, Recording, Keyboard, School Sales, Store Supervisor
Jerome – 9-years C service - Guitar, Piano, Sound Amplification,
Recording, IT Specialist, Piano Removals Specialist
Grant – 8-years PPT service - Guitar, Piano, Keyboard, Sound
Amplification, Recording, Print Music, Website Maintenance,
Administration & Marketing, and School Sales.
James – 6-years C service - Guitar, Sound Amplification, Guitar Music,
Marketing
Andrew – 4-years PPT service - Guitar, Customer Service.
Libby – 3-years C service - Graphic Design, Marketing, Print Music, IT
Specialist, Flute, MVP
Kieran – 3-years C service - Piano, Keyboard, Clarinet, Print Music
Philiipa – 3-years C service - Print Music, Violin, Piano, Customer
Service
Josh – 1-year C service - Guitar, Piano, Sound Amplification,
Customer Service, BNC
Genevieve – 1-year C service - Print Music, Administration, Customer
Service, Marketing
Sam - 1-year C service - Guitar, Customer Service
Harrison – 1-year C service - Guitar, Keyboard, Customer Service
Abbie – 1-year C service - Print Music Maintenance, Customer Service
Julie – 1-year C service - Administration and Wages Clerk
Lisa – 2-years FT service - Administration Assistant, Cleaner,
Customer Service
Joan R - 20+ C year’s service - Administration Officer
Loryn - 20+ C years service - Keyboard / Clavinova Teacher
Google Docs Resources List
Staff communication is be email, however many files are shared with
them via Google Docs. These include Spreadsheets such as price lists
and rosters, Documents such as Product Info Sheets and Job
Descriptions, and PDF / Picture files of various in-store signage
designed in-house.

4. Lathams Music Teaching School
Lathams Music currently operates an established Keyboard / Clavinova
teaching school. 20+ yrs Long-standing Teacher is on Staff, Mrs. L.
Franco, and is responsible for the Annual Yamaha Clavinova Festival,
held on the first Sunday in November each year at Brown Sugar
Restaurant, Warners Bay.
All other Teachers are room rental clients. In order to maximise traffic
flow, and encourage music lessons, room rental fees are kept to a
minimum of $5.00 per lesson. Usually invoiced in bulk at the beginning
of each school term. Currently we have 4 Music Teachers using this
facility, but there is room for growth in this area.
“Kindermusik” Early Childhood Music Classes are currently being held
at Greenhills. This space is also rented to local music teachers at
$10.00 per class, also invoiced at the start of each term. Kotara store
also has allocated space for this activity.
In total, Kotara has 2 small teaching rooms, 1 large teaching room and
1 Early Childhood area / Boardroom, and Greenhills has 2 small
teaching rooms and 1 Early Childhood Area.

5. Customer Database Details
This database is the foundation of all of our best marketing activities,
offering a cost effective way of promoting our many different products to
our loyal customer base. This database is 33,000 clients strong and
growing. It is fully categorized by multiple interest groups and/or by
Primary or High Schools. A summary of its contents is as follows.
23,500+ Active since 1999, as having purchased a “warranty” item
22,000+ Street Addresses for Mail Invitations or Promotion
8500+ Mobile Phone Numbers for SMS Marketing
3000+ Email addresses (including local Primary and High Schools)
1300+ Company / School Client List
xxxx Teacher Client List
xxxx Guitar Interest Clients
xxxx Piano Interest Clients
Capacity to record Birthdays (now part of data collection)
200+ Interstate Client List
Twitter Page - 128 following, (Linked to Facebook posts)
Facebook page - 621 people like this page, 482 Monthly Active Users
14,062 Post Views for the period 2 Sept 2011 – 1st
Oct 2011

6. Lathams Music Website
www.lathamsmusic.com.au
Currently hosted and designed by Weblite / Associated IT, Mr. Michael
Lacey, Hamilton NSW.
Initiation has been made towards an expansion of our site by Artbeat
Designs, in conjunction with Libby De Souza (casual staff member
doing Honours year Majoring in Graphic Design at UON).
Fully itemised quote and contacts in a separate report attached.
At present, our webpage is the resource we use to email promotions to
our 3000+ clients with email subscriptions.
These clients are categorised into their different interest groups.
Lathams Music also owns dozens of keyword strong domain names, not
currently being used. List attached.
Corporate Colours
Corporate colours for graphic design purposes are Pantone orange
number 152, Pantone blue 2945, and Pantone purple 255. Logo Design
was done by Caroline Zambo of John Church Advertising / Worldwide
Printing, Broadmeadow in 2005. Most graphic design work in the last 3
years has been done by Libby De Souza Designs. All files are on
record.
Dealer Login Details
Yamaha Music Australia - lathamsmusic (see Grant)
Shriro (Casio) - dealer intranet
American Express Merchant Login - lathamsmusic (see Julie or Joan)
Sheet Music Direct - User ID XXXX (see Grant)
G-Mail Login - lathamsmusic@gmail.com (see Grant)
G-Mail Login - lathamsmusicgreenhills@gmail.com (see Tracey)
G-Mail Login - lathamsmusickotara@gmail.com (see Grant or Libby)
BPAY and Funds Transfer Account Details List to be included

7. Calendar Promotional Activity
MONTH ACTIVITY
JANUARY Post Christmas Sale
Stock Clearance from Christmas
Holiday Keyboard Lessons
Acoustic Piano Promotion (Pianos First)
FEBRUARY Back to School
Email Schools Specials
Student Discount Offer distributed to Teachers
MARCH March Madness Sale - Things starting with “M” on
Sale, e.g. Metronomes, Mandolins, Microphones etc.
APRIL Easter Long Weekend Sale
Chocolate Eggs on the Counter
Focus on Concert Band (Festival Time)
MAY Mothers Day Sale
Piggy Back on Domayne / Homemakers
Email Promo Music Books for Mum
JUNE Alex Steinbach Romance Offer 15% Off
Email and Snail Mail (Pianos First)
Annual Yamaha Music / Lathams Music Birthday Sale
JULY Dungeon Jazz Competition - Major Sponsor
Christmas in July Sale - Print Music Focus
AUGUST Staff Party Month - Boss is Away Sale
Snow Time Sale
SEPTEMBER Spring Music Festival - School Holidays
OCTOBER Band Fest - Local Primary and Concert Bands
Warners Bay
Preparations for Christmas - Layby Now for XMAS
Greenhills Birthday - Bands @ the BBQ Sale
NOVEMBER Yamaha Clavinova Keyboard Festival - Brown Sugar
Warners Bay
Christmas Catalog Promotion
Inside Music and Yamaha Focus Catalogs
DECEMBER End of School Year Sponsorships
Various High School Awards Programs
Christmas Catalog Promotion - Inside Music and Yamaha
Focus

8. Other Marketing Activity
Facebook and Twitter Blogs - linked together - 9 Administrators,
Supervised by Grant Gibbins. Greenhills have their own Facebook page
Facebook Ads – Conducted in order to attract “friends” in specific
demographics and locations within Australia, with musical interest.
Email Notifications - Via Website, for various Customer Interest
Events / Promotions
SMS Messaging - www.5cSMS.com.au Prepaid $0.05 for each 160
characters
TV - usually with NBN - Chris Moonie
Radio - NXFM or KOFM
Mail - Mail Merge specific targets via MUSIPOS Data Export and Word
Mail Merger (Avery J8159 Labels)
Google Ad Words - Multiple Campaigns running simultaneously under
pre-set budget controls
Yellow and White Pages – Sensis
1 unit colour ad under “Music and Musial Instruments”
1 unit colour ad under “Pianos”
Phone listing under Piano Removalists
White Pages Super Bold listing of all phone numbers
Within Muswellbrook and Newcastle/Maitland Book
Bus Seat Signs - Charlestown Road (nearest cross road, Carnley
Avenue) Great exposure for Sales and other publicity as it is a very high
traffic position. 3 other bus seat ads were used in the area to promote
the move from Westfield etc, but have since been retired. The minimum
period for leasing these signs is 2 years.

9. Newsletters to Teachers - These are posted out on a bi-annual basis,
to our key Piano and Guitar teachers, as well as to High School Music
teachers. Each one has relevant details of a host of different products of
interest to them.
Sponsorships and Production Assistance - In order to maximise the
loyalty to Lathams Music, we have engaged in an array of publicity
promoting and production assistance with many local societies.
Exposure to musicians and their audiences and families is gained
through a number of strategic sponsorships within the Region.
Examples of these are the Lake Macquarie Eisteddfod “Archibald
Latham Concerto Prize”, St Francis Xavier “Battle of the Bands”,
Cessnock High School “Lathams Music Award” for the highest
academic achievement in Music, etc.
Web Presence - Lathams Music thus far have a fairly basic web
presence, with Contact Details, Promotional Offers, Letter from the
Principal, Links to supplier sites, Basic info on a basic range of product,
and Handy Hints for various instruments. We have tendered web
designers who are quoting on upgrading the site to include “shopping
cart” facilities in order to take sales online. Their proposals are to be
included.
Instore Promotions - Each month we draw a name from the
submissions collected on the counters of each store for an open order
of $100.00 *conditions apply. This encourages people to join our
promotions mailing list. In these submissions, we ask for customer
interest groups in order to better tailor the promotion directed at them.
We also ask for email and mobile numbers for more cost effective
promoting.

10. Flyers and Posters - Various promotional flyers are distributed within
the white product bags we used for sales. This can improve customer
revisits and loyalty.
VIP Loyalty Cards - These are issued to all customers (except our VIP
Teachers) who use them to attract a $25.00 voucher once they have
spent $200.00 on general merchandise or print music.
Lathams Music Gold Card - Our VIP teachers automatically receive
15% discount, as this select group of people have shown consistent and
dedicated loyalty to Lathams Music over many years of sales, with an
excellent credit history. Management must approve teachers on this list.
LITTLE BOOK OF
BIG DEALS!
P: 4952 4311
6 Bradford Close, Kotara
11 Molly Morgan Drive, East Maitland
Vouchers valid at both Lathams stores.
BUY ANY
TWO SETS OF
STRINGS AND
GET 15% OFF
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
BUY ANY SET
OF BONGOS
AND GET A
FREE GIG BAG
BUY 2 SETS OF
AMS DRUM-
STICKS & GET
THE 3RD FREE
20% OFF ALL
WOODEN
PERCUSSION
SETS
FINALE PRINT
MUSIC 2008
HALF PRICE!
BUY 2 DVD’S IN
THE SAME SERIES
& GET 10% OFF
THE TOTAL
BUY A DIATONIC
HARMONICA & GET A
HOLDER HALF PRICE
OR
BUY A CHROMATIC
HARMONICA & GET A
HOLDER FREE
BUY A GUITAR FX
PEDAL AND GET A
2ND IN THE SAME
SERIES 30% OFF
BUY ANY SET OF
GUITAR/BASS
STRINGS & GET A
QUIKTUNE TUNER
HALF PRICE
BUY A FLUTE, CLARINET,
TRUMPET OR SAX AND
RECEIVE A MUSIC
STAND, INSTRUMENT
CARE KIT AND TUTOR
BOOK FREE
BUY ANY TWO
PRINT MUSIC
BOOKS AND
GET 10% OFF
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
Expires 1/9/10. Applies to full priced items only.
While stocks last. Offer valid once to each
customer. Conditions apply. See instore.
30% off pedal of lesser value only.

11. Inside Music Catalog - Assembled bi-annually by AMS, and
participation voluntary, however Lathams Music have not missed a
single edition since its launch (originally MDA Catalog) over 10 years
ago. This catalog is distributed to a select group of postcodes via a
letterbox drop on nominated weekends throughout May/June/July and
October/November/December/January. Copies are also available in-
store.
Best of Yamaha Catalog - Focus dealers are privy
to the most elite deals from Yamaha and as so
making this promotion one of Yamaha’s best buy-in
periods. This catalog is distributed by postcode also,
and runs over November and December each year.

12. Pianos First Promotional Material - “Pianos First” routinely run
quarterly promotions for their very popular Alex.Steinbach Pianos. For
example, this quarter, they are offering 15% off the Retail prices of their
“Romance” model, which includes the offer to use their 3 years Interest
Free facility. Other promotions have included 3 months free music
lessons (they pay your teacher), and wonderful Tasmanian Product
Christmas Hampers
CURRENT SWOT Analysis
Strengths Acknowledged
Print Music division has a strong reputation, iconic within Region.
Our customer service is friendly, respectful and not intimidating.
Delivery crew ready with specialised equipment, vehicle and expertise.
Staff expertise widely versed in all industry areas.
Traditional family values Music Store, not Rock or Pro shop.
Yamaha Gold Standard Pianos Exclusive Lag and Hagstrom Dealer.
Preferred Local Retailer for AMS products - Industry Leader.
We are conveniently and centrally located in high growth suburban
areas and high traffic commercial areas.
“At the door” parking specifically allocated for Lathams Music
customers.
Credibility, Reliability, Longevity & Versatility - Are the end results of the
goodwill of our third generation business, operating for over 62 years.

13. Opportunities recently Achieved
Change premises location to reduce rent & overheads.
Negotiated favourable lease terms.
Online website store initiated.
Increased market coverage into Maitland.
Staff incentives via achievement of targets.
Introduction of new brands such as Blackstar Amplification.
Review staffing levels to achieve maximum efficiency.
2010/11 Weaknesses Addressed
Lack of Brand coverage - since increased.
Cost of Rent - since relocated premises out of Westfield / Park Ave, &
negotiated favourable leasing terms.
Flexibility of operating Hours (Public Holidays) - now closed Public
Holidays unless “Promotion” planned.
Location - Increased coverage via two diverse locations.
Communication - Sacked Telstra and employed Engin and HCT.
Policy and Procedures - since implemented improved clarification via
job descriptions and improved communication of company procedures
via staff emails.
Number of Staff - since reviewed and maximised efficiently, job
description tasks quantified.
2010/11 Threats Addressed
Cash Flow - Take advantage of suppliers’ prompt payment terms.
Increase orders deposits / ask for pre payment of customer
orders.
Competitors - Bold and proactive approach adopted.
Losing Staff - No-one is indispensable, but loyalty is appreciated
greatly.
Ability to adjust to external forces - Increased awareness of competitors’
actions.
Debt Levels - Refinanced to take advantage of lower interest rates.
Higher Rent/Overheads - Eliminated after Westfield exit.
Increasing Costs – Re-price delivery charges to reflect fuel costs.
Loss of Major Brands - 5km radius of existing dealers protected zone.
Number of Staff - Optimised to reflect revised operational efficiencies.

14. Sample
Artwork
Its beautiful rich tone inspires romance and provides the soundtrack to the lives of millions.
The Alex.Steinbach “Romance” is Australia’s number one selling German
designed piano, the complete piano. It’s ideal for teachers, beginners,
intermediate and advanced students alike.
The Romance models are therefore an excellent choice for parents wishing
to invest in a piano that will carry their child right through to higher
examinations and performance preparation if desired.
It is also perfect for households requiring a piano to suit a number of family
members at different playing levels.
For the first time ever, Alex.Steinbach are offering a special price only available on this top selling model.
Purchase a new Alex.Steinbach Romance piano at Lathams Music
before June 30, 2011 and receive a massive 15% Discount!
The 15% off discount is available on all cash/credit card purchases as well as the Alex.Steinbach 3 Years Interest
Free Purchase Plan* allowing you to enjoy your piano at home straight away while paying it off gradually over
3 years! Available in Black or White; Semi-Gloss or Polished Walnut or Mahogany. * This offer is valid from April 1 to
June 30, 2011 and is subject to approval.
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4/6 Bradford Cl, KOTARA Ph 4952 4311
3a/11 Molly Morgan Dr, GREENHILLS Ph 49 344 661
locations!
two new
6 Bradford Cl
KOTARA
11 Molly Morgan Dr
EAST MAITLAND
KOTARA & EAST MAITLAND
PH: 4952 4311 www.lathamsmusic.com.au