Case Analysis: Napster
Case Study Outline of Napster
1) Situational Analysis
a. Marketing Objectives
X To re-establish Napster as the market leader for online music downloading industry.
X To establish a competitive market share in the pay-for-play market.
X Regain the majority original customer base, and entice new users.
b. Target Market
X Anyone that has internet access and an interest in music.
X All ages, races, sexes, income levels, education levels and computer knowledge levels.
X Anyone with a minimal understanding of the internet.
c. Marketing Mix
X Product- Legal Music Downloads with the following benefits:
Ï Music Downloads (Legal rights to 500,000 songs)
Ï CD Burning
Ï View Music Videos
Ï Access Billboard Chart Information
Ï Synchronize music to other devices
Ï Message Boards
Ï Detailed Artist and Album information
Ï Parental Controls
Ï Powerful Recommendation Engine
Ï Personal Inboxes for Music and Messages*
Ï Ability to Browse Other Users Music Collections*
Ï Search Engines by Genre, Artist, Track Title, or Popularity
Ï Complimentary products such as digital recording media, CDs and MP3 players
Ï Ability to Send Music to Friends within or outside the service*
Ï Access to Professionally Programmed Radio Stations*
X Price-
Ï $.0.99/ song
Ï $9.95/ album
Ï Premium Service $9.95 (includes all (*) products above)
X Promotion-
Ï Promote through partnerships with Microsoft, Gateway, Yahoo and Samsung
Ï Partnerships with XM Satellite Radio, Tower Records in Japan, a marketing agreement with BellSouth Corp. of Atlanta
Ï Possible partnership to rollout with cell phones on LM Ericsson of Stockholm
X Placement-
Ï Gift cards are available at various retail stores throughout music areas as well as point of purchase
Ï Linked directly through Yahoo! by use of banners, search engines and e-mail
Ï Napster soft ware is preloaded on all Microsoft computers (they hold 80% of the operating system market)
Ï
1) Situational Analysis
a. Marketing Objectives
X To re-establish Napster as the market leader for online music downloading industry.
X To establish a competitive market share in the pay-for-play market.
X Regain the majority original customer base, and entice new users.
b. Target Market
X Anyone that has internet access and an interest in music.
X All ages, races, sexes, income levels, education levels and computer knowledge levels.
X Anyone with a minimal understanding of the internet.
c. Marketing Mix
X Product- Legal Music Downloads with the following benefits:
Ï Music Downloads (Legal rights to 500,000 songs)
Ï CD Burning
Ï View Music Videos
Ï Access Billboard Chart Information
Ï Synchronize music to other devices
Ï Message Boards
Ï Detailed Artist and Album information
Ï Parental Controls
Ï Powerful Recommendation Engine
Ï Personal Inboxes for Music and Messages*
Ï Ability to Browse Other Users Music Collections*
Ï Search Engines by Genre, Artist, Track Title, or Popularity
Ï Complimentary products such as digital recording media, CDs and MP3 players
Ï Ability to Send Music to Friends within or outside the service*
Ï Access to Professionally Programmed Radio Stations*
X Price-
Ï $.0.99/ song
Ï $9.95/ album
Ï Premium Service $9.95 (includes all (*) products above)
X Promotion-
Ï Promote through partnerships with Microsoft, Gateway, Yahoo and Samsung
Ï Partnerships with XM Satellite Radio, Tower Records in Japan, a marketing agreement with BellSouth Corp. of Atlanta
Ï Possible partnership to rollout with cell phones on LM Ericsson of Stockholm
X Placement-
Ï Gift cards are available at various retail stores throughout music areas as well as point of purchase
Ï Linked directly through Yahoo! by use of banners, search engines and e-mail
Ï Napster soft ware is preloaded on all Microsoft computers (they hold 80% of the operating system market)
Ï
Cited: Ferrell, O.C.. Marketing Strategy. 3rd. Ohio: South-Western, 2005. "Napster Hits Record Fourth Quarter Revenues." PR Newswire. 16 May 2007. PR Newswire US/Lexis Nexis. 30 Jan 2008 .