POLYPHONIC MARKETING PLAN
Polyphonic Business Strategy
2010
Marketing Plan
Table of Contents
Target Market 3
The Five Major Record labels 3
Size 3
Growth 4
Profitability 4
Artists 4
Size 4
Growth 4
Producers 5
Size 5
Profitability 5
Marketing Plan 5
Positioning Decision 5
Product decision 6
Pricing decision 6
Distribution decision 6
Promotion 7
Future Markets 7
EXHIBITS AND TABLES 8
Polyphonic HMI is a start-up technology company with a single potentially marketable product: Hit Song Science (HSS). HSS is an artificial intelligence tool that analyzes the mathematical characteristics of a song and then compares it with characteristics of past music hits, thus making it possible to determine a song’s hit potential. By late 2003, the company had been unsuccessful in marketing the product; moreover, these past failures had now left Polyphonic HMI with a “shoe string” budget of $150,000, with which to identify a suitable target market, develop a marketing plan, and generate revenue relatively quickly.
Target Market
HSS technology is most applicable to songs targeted at the general mainstream music audience market. The estimated 2500 albums marketed to this audience accounted for retail sales of $75,000 (low) to $10.7 billion (high). Therefore, Polyphonic HMI must choose the market segment that has the largest share of this mainstream market. Three potential target markets were analyzed: record labels, producers and unsigned artists. Amongst these three potential target markets, the five major record companies account for 84% of the retail sales of the global music market, which is valued at $32 billion (“see Table A”). Analysis of the three segments based on size, growth, profitability and ease of access, identified that Polyphonic should target the five major record labels. Here, Polyphonic HMI had the greatest potential for market success and penetration1.
The Five Major Record labels
Size
Since the five companies account for 84% of sales, we estimate that they
2010
Marketing Plan
Table of Contents
Target Market 3
The Five Major Record labels 3
Size 3
Growth 4
Profitability 4
Artists 4
Size 4
Growth 4
Producers 5
Size 5
Profitability 5
Marketing Plan 5
Positioning Decision 5
Product decision 6
Pricing decision 6
Distribution decision 6
Promotion 7
Future Markets 7
EXHIBITS AND TABLES 8
Polyphonic HMI is a start-up technology company with a single potentially marketable product: Hit Song Science (HSS). HSS is an artificial intelligence tool that analyzes the mathematical characteristics of a song and then compares it with characteristics of past music hits, thus making it possible to determine a song’s hit potential. By late 2003, the company had been unsuccessful in marketing the product; moreover, these past failures had now left Polyphonic HMI with a “shoe string” budget of $150,000, with which to identify a suitable target market, develop a marketing plan, and generate revenue relatively quickly.
Target Market
HSS technology is most applicable to songs targeted at the general mainstream music audience market. The estimated 2500 albums marketed to this audience accounted for retail sales of $75,000 (low) to $10.7 billion (high). Therefore, Polyphonic HMI must choose the market segment that has the largest share of this mainstream market. Three potential target markets were analyzed: record labels, producers and unsigned artists. Amongst these three potential target markets, the five major record companies account for 84% of the retail sales of the global music market, which is valued at $32 billion (“see Table A”). Analysis of the three segments based on size, growth, profitability and ease of access, identified that Polyphonic should target the five major record labels. Here, Polyphonic HMI had the greatest potential for market success and penetration1.
The Five Major Record labels
Size
Since the five companies account for 84% of sales, we estimate that they