Red Clover Band’s Marketing Plan Report

Executive summary

This marketing plan illustrates the strategies that Red Clover will adopt in an effort to gain competitive advantage in the US music entertainment industry. The band intends to position itself as a unique entity by offering incomparable lyrics that touch both the young and old generations. However, the band will mainly target youths due to their increased appreciation of country and country rock music genres. In order to attract and retain contemporary music fans, Red Clover will incorporate aggressive marketing campaign by investing in integrated marketing communication. The band will utilize public relations, advertising, sales promotion, and direct marketing. In an effort to create adequate market awareness, the band will utilize conventional and emerging marketing communication mediums such as print media, television, radio, and web-based mediums such as social networks. The band will focus on attracting a large number of customers by developing an extensive understanding of the customers’ needs. Furthermore, it also illustrates the band’s financial projections.

Business description

Red Clover Band is one of the well-established bands in the United States. The band is composed of four music powerhouses who include, Maggie Dame, Chris Dame, Pat Hibbard, and Colin Kris. The band was established in 2009 and it is mainly based at Green Bay, Wisconsin. In addition, the band organizes live events and tours in different parts of the world in order to interact and bond with its fans. Moreover, the band records and markets its music in an effort to entertain a large number of music fans (Red Clover 2014).

Product description

The quality of a product or service is critical in attaining competitive advantage. Therefore, marketing managers have the responsibility of ensuring that the product or service being offered to customers is designed effectively (Doole & Lowe 2008). Red Clover Music Band focuses on offering customers quality country-rock music through effective composition and performance. Maggie Dame acts as the lead singer for the band while Christopher Dame is the band’s most established guitarist who ensures that the group electrifies its fans. On the other hand, Patt Hibbard ensures that the band’s bass is well coordinated while Colin Kris dominates the drums (Red Clover 2014).

The band members have overseen the successful entry of Red Clover to enter the entertainment industry. The band’s success has been enhanced by the experience and skills of its members. For example, in 1992, Maggie Dame performed with Kenny Rogers, Trisha, Yearwood, and Garth Brooks, who are renowned country music artists. On the other hand, Christopher Dame has over 25 years of experience as a guitarist and he is a two-time winner of the WAMI awards as the best guitarist.

Industry trends

The country music industry in the US has experienced upheavals over the past few years. A report released in 2013 by Neilsen and Billboard shows that music sales declined by 6.3% while country music sales declined by 10.7% (Overbo 2014). Another major trend entails the high rate at which customers are adopting digital mediums in listening to music. However, industry analysts argue that the industry is likely to experience remarkable expansion due to its appeal to the old and the young generations (Overbo 2014). The entry of young artists into the industry such as Kelly Clarkson is likely to attract a large number of young fans.

The music industry in the US is characterized by intense competition, as evidenced by the large number of industry players. Red Clover faced intense competition from a number of bands established in the country and country-rock music genre. Some of the major bands that operate in the US include Bourbon Cowboys, Saving Savannah, Nashville Pipeline, Diamond and Steel, Grand Union, and Raised Reckless. Most of these bands have been in existence in the industry for a longer duration as compared to Red Clover. For example, Nashville Pipeline has been in existence since 1997 and it has undergone remarkable evolution, which improves its ability to electrify crowds.

SWOT analysis

Business entities should appreciate the importance of effective strategic management in their long-term success. This goal can only be achieved if the entities understand their strengths, weaknesses, opportunities, and threats. The chart below illustrates a SWOT analysis of the Red Clover Music Band.

Table 1: SWOT analysis

Marketing plan

1. The band intends to increase its popularity in the country and country rock music industry by reaching music fans aged between 18-25 years.
2. Red Clover is a country and country rock music band, which is mainly based in the United States.
3. Red Clover intends to attain market dominance in this market segment by creating market awareness.
4. The band will invest in aggressive marketing communication, which is expected to cost $ 300,000.

Marketing strategy

Market targeting is an essential element in the success of every business entity as it enables a firm to identify a specific market segment to market its products. Successful market targeting can be achieved by conducting a market research to evaluate the potential number of customers in the identified market and their consumption behavior. Moreover, market targeting enables an organization to understand the customers’ needs (Baker 2011). In a bid to be successful in market targeting, it is vital for organizations to adopt the most effective marketing targeting dimension. Some of the most common dimensions include geographic, demographic, behavioral, and psychographic dimensions (Baker 2011).

• Red Clover Music Band will adopt demographic, psychographic, behavioral and geographic segmentation dimensions in order to maximize the likelihood of success.
• With regard to demographic segmentation, the firm will target music fans aged between 18 to 25 years. The choice of this market segment arises from the realization of the view that individuals within this age group constitute the largest proportion of the global population.
• Red Clover will also adopt psychographic variables in its market targeting by focusing on satisfying the target market’s entertainment needs by focusing on different music genres such as Country and Country Rock.
• Red Clover will also seek to exploit the target market’s behavioral characteristics. One of the most prevalent behaviors amongst the American youth and young professionals relates to partying, whereby a significant proportion of youth has developed habit of socializing through parties, which constitute a substantial proportion of their spending. Some youths in the US spend over $100 per week on socializing and partying.

Positioning

1. The unique selling proposition will be communicated by the band’s slogan, viz. ‘The young and elderly count in country rock music’.
2. Red Clover Band intends to position itself in the country and country-rock music sector by offering customers high quality music entertainment through the effort, experience, and talent of all the band members, which will perform as a unit.
3. The band is committed to attaining optimal market position by investing in aggressive marketing. This proposition arises from appreciation of the importance of market information on the consumers’ consumption decision.

Marketing mix

The success of an organization’s marketing efforts is influenced by the degree to which it invests in attracting and retaining customers. This goal can be achieved by focusing on the various components of marketing mix, which include pricing, promotion, place, people, process, place and product (Baker 2011).

Product strategy

In its quest to develop a strong customer base, the band will ensure that it works as a team by fostering a high level of collaboration amongst the team members.

1. The band will ensure that its music composition is a collaborative effort in order to gain the input of each of the team members. This aspect will aid in nurturing cohesiveness within the band.
2. The band will invest a substantial amount of its time in training and conducting rehearsals in order to attain excellence in its music composition and performance. Some of the aspects that the band will focus on in its training sessions include how to produce unique sounds and vocals during its music performances in order to differentiate itself from other band.
3. Red Clover will invest in continuous development and improvement of its music performances and products in order to enhance its competitiveness by conducting excellent shows, hence attracting and retaining customers.

Pricing strategy

Price is a critical determinant in the consumers’ consumption process. Thus, the set price influences the likelihood of attracting and retaining customers (Doole & Lowe 2008)). Moreover, the price point set aids in communicating the value of the product or service. Red Clover Band is a relatively new band in the US music industry having been in existence for less than a decade. Despite this aspect, the band seeks to position itself as a unique entity in the US music industry.

1. Penetration pricing strategy will increase the likelihood of attracting a large customer base, hence maximizing profitability. The penetration-pricing strategy will increase the band’s appeal to youths whose income levels are relatively low and they constitute the largest proportion of its target customers.
2. In a bid to enhance its penetration in the US and global music industry, the band will adopt penetration-pricing strategy, which will involve setting the price of its events and music at a slightly lower price point as compared to other bands in the industry.
3. The penetration pricing strategy will be utilized during the initial market entry phase.
4. The band will continuously review the pricing strategy to determine the necessary adjustments. This will enable the band’s pricing strategy to be aligned with economic changes in the country and country rock music industry.

Promotion strategy

Product or service awareness is a vital component in the consumers’ purchase decision-making process (Baker 2011). Therefore, marketing managers should be focused at creating adequate market awareness through market promotion. Red Clover Band intends to market its entertainment products and services to the global market. Subsequently, the band is committed in its marketing communication. Despite this aspect, the band has not successfully created global market awareness.

1. Some of the marketing communication methods that the firm will employ include advertising, sales promotion, public relations, and personal selling.
2. Red Clover intends to address the market awareness gap by adopting Integrated Marketing Communication, which will involve utilizing diverse market communication methods.
3. The band will advertise its entertainment services through diverse mediums such as television, radio, and print media. The firm will identify well-established media houses in the US that it can use in creating awareness.
4. Red Clover will also consider creating awareness through various print mediums such as entertainment magazines and newspapers. Additionally, the band will adopt outdoor advertising by using banners in creating awareness regarding its upcoming live events. The banners will be designed effectively by including the photographs of all the four band members and the band’s slogan, viz. ‘The young and elderly count in country rock music’. Moreover, the banners will be located strategically in order to increase the chances of reaching a large number of target customers in the US.
5. To create awareness in the international market, the band will consider utilizing web-based platforms. The band will post information regarding its performances on its official website and other entertainment websites such as greenbaynightout.com.
6. The band will also adopt social media platforms such as YouTube, Facebook, Twitter, and Tumblr in creating awareness regarding its operations. The social media platforms will enable the band to interact with potential customers. For example, the band will continuously update its social media accounts about upcoming events and festivals (Gillman & White 2002). Furthermore, the band will post photos and videos on past music events, hence increasing its ability to influence potential customers. Using social media platforms will improve the band’s direct marketing capability. Moreover, the band will be in a position to understand the customers’ opinions and ideas regarding its music performances. Consequently, the band will gain additional market intelligence that it can utilize in improving its services.
7. In its public relations efforts, Red Clover will collaborate with well-established entertainment houses such as the Banana’s Entertainment LLC, who will be charged with the responsibility of publicizing the band’s performances. Subsequently, the entertainment houses will enable the band to gain optimal recognition in the music industry. For example, the entertainment houses will post information regarding the band’s events, data, venue, location, and time. Such information will increase the likelihood of attracting music fans. The band will also adopt sales promotion during its public festivals and country tours, which will be attained by offering free albums to the first 200 fans who sign to attend its live performances.

Place strategy

Red Clover intends to attain local and global market penetration. Therefore, the band will ensure that its music is easily accessible by customers in the global entertainment industry. To achieve this objective, the band will consider the following aspects.

1. The band will also distribute its music through online digital mediums. Customers will have an opportunity to purchase the band’s music online through various devices such as personal computers and other web-enabled mobile devices such as smartphones (Birkholz 2007).
2. The band will adopt direct and indirect channels of distribution. The direct channels of distribution are comprised of product distribution through its stores located in different parts of the United States.
3. The band will create awareness on how customer can purchase its music online through its official website and social media platforms such as Facebook, Twitter, and YouTube.
4. To enhance its effectiveness in penetrating the global country and country rock music industry, the band will also distribute its music through well-established entertainment houses such as the Banana’s Entertainment, which will aid in consolidating the band’s distribution effort.

People

The band will be committed to fostering a strong relationship with its fans. In a bid to achieve this goal, the band will ensure that its members understand the importance of satisfying its fans.

• Red Clover will continuously collect the views of its fans in order to determine the extent to which they are satisfied by the band’s performance. Thus, the band will augment its commitment to customer focus.
• The band members will engage in extensive training on customer satisfaction in order to deliver quality services.

Operating plan

The success of Red Clover will depend on the extent to which its operations are synergetic. Thus, the band’s operation will be a collaborative effort amongst the four band members. Each of the band members will be charged with the responsibility of ensuring that the roles assigned are executed perfectly. Maggie Dame will be charged with the responsibility of acting as the band’s lead vocalist. Christopher Dame will act as the band’s lead guitarist and vocalist. Colin Kris’ role will entail sustaining the drums’ rhythm in addition to adding vocals during performances. Pat Hibbard will be charged with the responsibility of adding the bass vocals. All the band members are adequately skilled and experienced in undertaking their respective roles. The band is committed to sustaining its competitive advantage. In a bid to achieve this goal, the band will collaborate with well-established music academies such as the JMC Academy. Moreover, the band will collaborate with Bananas Entertainment LLC, which will act as the band’s promoter.

Financial plan

In order to implement the marketing plan successfully, Red Clover will require a substantial amount of money in its annual budget. The band estimates that implementing the plan will require $ 1,000,000. The marketing plan budget will be financed through personal saving amongst the band members. The decision to use personal savings arises from the need to eliminate financial risk. Red Clover has projected to improve its financial performance by implementing the marketing strategies. The charts below illustrate the band’s projected income statement, cash flow statement, and break-even analysis.

Table 2: Income statement

Table 3: Cash flow statement

The firm projects to breakeven within one year after investing the $ 1 million in its marketing plan. The band estimates the fixed cost of producing an album to be $ 200,000. The band will set the price of an album at $100 while the variable cost will be $ 80. Therefore, the firm will break even after selling 10,000 units. On the other hand, the break-even revenue is estimated to be $ 1 million- [10,000 units x $ 100= $ 1,000,000].

Reference List

Baker, R 2011, Implementing value pricing: a radical business model for professional firms, Wiley, Hoboken.

Birkholz, A 2007, Business analysis on the web.de AG, Grin Verlag, Munchen.

Doole, I & Lowe, R 2008, International marketing strategy: analysis, development and implementation, Cengage Learning, London.

Gillman, J & White, S 2002, Business plans that work: includes actual business plans that successfully attracted financing, Adams Media, Avon.

Overbo, D 2014, Despite drop in country music sales, genre trends towards growth, Web.

Red Clover: The Band 2014, Web.