Business concept
Vision statement
The company’s vision is “to be a dynamic national brand that will focus on providing the public with a permanent escape from the expensive services offered by our competitors”. This will be done through the provision of timely and interactive services for music shoppers in order to allow them save on time and money.
Mission statement
The business will seek to promote local population’s interest in music services through an expansion of the public’s exposure to music via the one-stop shops as well as the internet. This shall also include introducing this area to the market segments that are yet to be fully utilised. Therefore, it presents an excellent business opportunity.
Product description
Music of all types will be available in the store as well as on its website. Popular music will be one of the main products at the store. It will also seek to ensure that music is provided in all forms- DVDs, CDs and downloadable pieces.
However, the company will primarily deal with music products that are popular among the young people. In addition, the company will obtain these products and services from a wide range of sources in order to meet the demands of the clients.
Customer description
Zeek’s Music Store targets a wide range of customers but will place an emphasis on young people aged between 14 and 35 years. In fact, this group of people make the largest group of people looking for the latest music, but few businesses have been able to satisfy their needs.
Benefits for unique proposition of the company
The company will achieve a positive reputation among the young people because it has chosen to venture in an area that few organizations have considered as a business opportunity. In addition, music recording and marketing companies have been looking for convenient partners in order to enhance their marketing beyond their shops, especially in targeting neighbourhoods.
Business Model
Zeek’s Music Shop will specialize in providing the population with a one-stop shopping for musical equipment sales, pro audio sales, music lessons, rentals and repairs.
Industry analysis
It is estimated that music and film industry have one of the largest income in the economy, exceeding 50 million dollars per year. In addition, the industry is estimated to have an annual growth of more than 12% (Vogel 46). Statistics also indicate that music contributes to 6% of the national economy. Moreover, the industry employs more than 2 million people either directly on indirectly (Burnett 21).
Market analysis
It is estimated that young people aged between 15 and 25 years spend more than 35 million dollars on entertainment every year. Currently, these people have to walk or drive long hours to obtain these services.
Target customer profile
Zeek’s Music Store will target university and college students as well as working youths. In particular, this group of people seeks to obtain music product from their neighbourhoods or downloading on their computers.
Young people spend much of their time listening to music from their iPods’, computers and iPads. They need a constant and dedicated provider of these services because the music industry is highly dynamic, with new products coming daily to the market.
Competitor analysis
Currently, there the business faces competition from two main companies-Netflix and Blockbuster. These companies are international corporations that have dominated the market over the last ten years (Stickler 91) Since Zeek’s will be a local business, we expect to venture into the business currently dominated by smaller organizations in town.
Some of these organizations are small. Others deal with music rentals only while others only seek to sell pro audio products only. With the wide range of products and services at Zeek’s shop, we expect to conquer the market within the first three months of operation.
Distribution Channels
Since the company is a small and start-up organization, it will first embark on providing its services and products on the site. Customers are expected to present themselves physically at the store.
However, in order to compete with other businesses, the company will also allow customers to register on its website, pay via available online methods such as Paypal and download music and videos. For products like equipments and rentals, services such as music lessons and repairs, the company will ensure that it attracts customers to the store.
Growth plan
The company expects to achieve a 12% growth in revenue within the next five years as shown below:
Growth strategy
In the first year of operation, Zeek’s Music Store will concentrate on rentals and pro audio sales. However, in the second year of operation, music lessons and repairs will be included while sale of equipment will start in the third year.
Operation plan
In addition, expansion of the company’s stores from one to four in the city will be done in the fourth year. In particular, the company will establish new stores near colleges and universities in order to target a large group of customers.
Works Cited
Burnett, Robert. The Global Jukebox: The International Music Industry. New York: Routlegde Taylor and Francis, 2012. Print.
Stickler, Verana. Music Industry Management: Case Study Analysis. New York: Grin Verlag, 2012. Print.
Vogel, Harold. Entertainment Industry Economics: A Guide for Financial Analysis. New York: Cambridge University Press, 2011. Print.