Summary
Zeek’s Music Shop seeks to provide music customers with an alternative source of affordable and easy-to-get products from all genres of music. To reach its the customers, Zeek’s Music Shop will prove to be the best provider of all types of music, ranging from the oldest to the latest music in CDS, DVDs, and all forms of modern digital storage materials. The business will use these technologies to provi9de music products for all the people who are interested in music.
This means that there is no limit based on age, gender, age and race. However, the business will be focused on attracting people aged between 14 and 45 years because they are fond to music and more interested in music, especially modern genres, than older generations (Krasilovsky, Shemel and Gross 12).
Purpose
This plan aims at describing the detailed plan that will be used for marketing Zekk’s Music shop and its products to the target customers. It will provide an in-depth analysis of the intended market niche, strategy for reaching the target customers and a financial plan.
The target market
Zeek’s Music Shop, being a unique business of its kind in the area, will attempt to attract music shoppers from all races, generations and social divides. The business will therefore aim at providing the public with a unique source of music products, ranging from the old to new generation pieces.
The shop will seek to know the what members of the public need in music. As such, the business will interact with people aged between 14 and 60 years, but will specifically focus on targeting the people aged between 14 and 45 years. Nevertheless, the business will serve all customers, regardless of their age, sex and ethnicity.
Market Niche
Zeek’s Music shop provide a unique source of music products in that it will not just deal with recorded music, but will also include musical instruments, books, technologies, training equipment and music production equipment.
Most of the local music shops specialize on providing music products in recorded format such as DVDs, CDs and other digital or electronic formats. This means that Zeek’s music shop will provide a wide range of products that will satisfy the needs of the special and unique customers.
How to reach the customers
Zeek’s music shop is a one-stop shop that will allow customers to choose between traditional shopping and online shopping. In the modern context, generations tend to determine the procedure through which a customer makes purchases (Tschmuck 29). In music industry, customer behaviour is marked by generational differences (Dolata 23).
For instance, young people, aged between 14 and 35 years, will prefer online shopping, while those people beyond this range prefer to visit music shops in order to determine the presence of the products they need. Therefore, Zeek’s music shop will provide all forms of products, including online and physical stocks.
Pricing plan
Financial plan
Zeek seeks to expand its growth on a yearly basis. In the first year, the business targets 1200 sales followed by 1800 in the second financial year. In the third year, the company will increase its sales by 14%, followed by 21% in the fourth year. The company expects to have increased its annual sales by more than 27% in the fourth year. This means that the company will strive to market its presence and products beyond its home city, in addition to using online and digital technologies to target its customers.
Sensitivity analysis
Zeek’s Music Shop seeks to ensure that its prices for all products do not vary significantly to changes in factors of affecting demand and supply. As such, the company will ensure that its prices for all products fall within the client’s expected range of prices. To do this, the company will consider all the forces of demand and supply at a given time and project any changes in future, which will allow the finance department to set prices based on the expectations.
Risk assessment
Tha major risk affecting Zeek’ Music shop is based in change in the forces of demand and supply. For instance, it is difficult to determine whether the national and international economic statuses will experience major or minor recessions. Moreover, it is difficult to determine the trend of national and industrial economic changes (Rachlin 19). These factors affect the company’s ability to set and determine future prices and expectations.
Capital estimates
The company will start as a partnership, but will give room for external investment in the third year of operation. Therefore, the company will seek to raise additional 55% of its initial capital in the third year in order to improve its performance and expansion in the market.
Propose plan for funding growth
As mentioned above, Zeek’s music shop will develop strategies that will invite and attract external investors. However, investors will only take 24% of the company’s annual revenue after tax in terms of bonds, shares and equities.
Works cited
Dolata, Ulrich.The Music Industry and the Internet. A Decade of Disruptive and Uncontrolled Sectoral Change. Mason, OH: Cengage, 2011. Print.
Krasilovsky, William, Sidney Shemel and John Gross. This Business of Music. New York: Billboard Books, 2010. Print.
Rachlin, Harvey. The Encyclopedia of the Music Business. New York: Harper & Row, 2006. Print.
Tschmuck, Peter. Creativity and Innovation in the Music Industry. New York: Springer 2006. Print.