Music Community 1

Group 2. ICT Assignment.Professor Mr. Russi1. Andrea Monson2. Natalia Kurenkova3. Liliana Cardenas4. Martina Pietrobon5. Aumkar Navare

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INTRODUCTION

Our objective is to attract consumers to come back to music stores and enjoy the music experience with other music fans giving the small/medium retailers the opportunities to make revenues in several way through the help of the tools provided by our MUSIC COMMUNITY BUSINESS MODEL.

http://goanimate.com/videos/0eQjCtRn1zgQ

Recognize music Information

Easy ordering

Music Network

Show your talentCompany to concerts

Reserve your tickets

New friends and chill outs

Music experience

Information from your clients

Bring clientes to your physical store

Revenues through clients´network

Compulsion buyingCustomized service

& Understanding needs

Present 24h a day

Benefits for store

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License to Application that offers:

- Music recognition functionality that recognizes music played (e.g. at a restaurant, bar etc.). In addition, the application provides information on the price and availability of the album at the store, new releases and concert dates of the artist, as well as the opportunity to reserve concert tickets and CD online and collect them in the store.

- News about the music industry, concerts and artists for the retailer’s customers- Social Sharing: through the application the retailer’s customers have the opportunity to connect

with other fans, share their opinions, information about their current location, CDs they bought, concerts they attend etc.

What we offer :

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App

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• Music Booths / Interactive Music Cafe/ Music Screens:

- The music booth allows customers of the retailer to access the interactive music video booths and simulate a music concert where they can act as stars or make a music video, record their performance and store it on the application or personal web page.

- At the interactive music café, music lovers can chill and socialize with others or enjoy their favorite music using our music players and headphones. The selection of music is provided by the store.

- In-store music digital screens projecting music videos. The retailer’s customers can select the videos to be played through the application or at the music booths.

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Musicopedia:

- Our music encyclopedia includes music history, lyrics, concert information etc. that can be recorded on the customers’ application or on their web page to be accessed anytime they want.

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Music Passport, a Loyalty Card:

- At the store, the retailer’s customers can record the information found in Musicopedia and all their booth activities via the application or on their music passport that they then can view through the application or on their personal webpage whenever they want.

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Data mining from user to record companies, concert organizer and music retailers:

- Record companies and concert organizers: data on music and concert preferences of users including demographic information.

- Retailers: consumers’ musical preferences including demographic information

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Advertising:

- Offer advertising opportunities to record companies and concert organizers through the community application

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

ChannelKey

Activities

Key

Resources

Customer

Segments

Key

Partners

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Business Model Canvas

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CANVAS 9 steps

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners

Value Proposition:

Generate additional sales in music stores and attract customers through: • Creating a music community that

enhances customer loyalty.• Creating a unique combination of in store

and digital music experience.

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners

CUSTOMER SEGMENTS:

Small to medium retail music stores in Italy.

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners CUSTOMER RELATIONSHIP:

Technical supportSales representative that is available for any questions or further requestsTraining for store sales people

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners

CHANNELS:

Sales representatives and company websiteShow room that replicates the music experience

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners

REVENUE STREAM

2014 2015 2016 UNIT COST 2014 2015 2016

Total market for Italy = 300 Stores

Quantity Revenue amount

License to Music Community service that offers:

60 75 100 € 3,600 € 216,000 € 270,000 € 360,000Application

Music Passport (loyalty card)

Musicopedia

Data mining

Customers personal web page

Booth installation and first time customization Music booths customization 60 15 25 € 3,000 € 180,000 € 45,000 € 75,000

Commission for music booth selling 60 15 25 € 1,000 € 60,000 € 15,000 € 25,000

Extra customization of booths 0 30 40 € 500 € 0 € 15,000 € 20,000

Advertising 10 50 60 € 500 € 5,000 € 25,000 € 30,000

Data mining and advertisings from user to record companies and concert organizer 5 25 40 € 5,000 € 25,000 € 125,000 € 200,000

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

Partners

COST INFORMATION 2014 2015 2016 UNIT

COST 2014 2015 2016

Quantity Cost amount

Application & Web site development 3 0 0 € 20,000.00 € 60,000.00 € 0.00 € 0.00

Office equipment 1 0.3 1 € 2,000.00 € 2,000.00 € 600.00 € 2,000.00

Car for sales representatives 1 0 0 € 10,000.00 € 10,000.00 € 0.00 € 0.00

SALARIES

IT personnel (13 month payment / employee) 39 39 65 € 4,000.00 € 156,000.00 € 156,000.00 € 260,000.00Sales representatives (13 month payment / employee + 10% commission) 39 39 52 € 2,000.00 € 78,000.00 € 78,000.00 € 104,000.00

Support staff (13 month payment / employee) 13 13 13 € 3,000.00 € 39,000.00 € 39,000.00 € 39,000.00

Commission to sale representatives 0.1 0.1 0.1 € 48,600.00 € 49,500.00 € 71,000.00

Apps store cost fee (Apple + Google+Microsoft) 3 3 3 € 150.00 € 450.00 € 450.00 € 450.00

Office rental and general expenses 12 12 12 € 3,000.00 € 36,000.00 € 36,000.00 € 36,000.00

Royalties (for music played in the show room) 1 1 1 € 500.00 € 500.00 € 500.00 € 500.00

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Financials

2014 2015 2016REVENUES € 486,000 € 495,000 € 710,000

TOTAL COSTS € 430,550 € 360,050 € 512,950OPERATIONAL PROFIT € 55,450 € 134,950 € 197,050

OPERATING PROFIT MARGIN 11.41% 27.26% 27.75%

2014 2015 2016€ 0

€ 100,000€ 200,000€ 300,000€ 400,000€ 500,000€ 600,000€ 700,000€ 800,000

€ 486,000€ 495,000

€ 710,000

REVENUES

2014 2015 20160.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

11.41%

27.26% 27.75%

OPERATING PROFIT MARGIN

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

SegmentsKey

PartnersKEY ACTIVITES:

Sales representatives Marketing Developing platform Design booths & musicopedia

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Value

Proposition

Revenue Stream

Cost Structure

Customer

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Channel

KeyActivities

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KEY RESOURCE:

Sales representativesIT personnelSupport Staff

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

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Customer

SegmentsKey

Partners

KEY PARTNERS:

Supplier of the booth equipment Supplier for application development Concert promoters Recording companies

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Value

Proposition

Revenue Stream

Cost Structure

Customer

Relationship

Channel

KeyActivities

Key

Resources

Customer

Segments

Key

Partners

Business Model Canvas

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In store music experience

NEW ARRIVA

LS MUSICOPEDIA VIDEO

BOOTH

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Experience The Music

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Music Community

…………………A new digital experience.

Thank you. Group 2. Subject: ICT, Professor Mr. Russi.1. Andrea Monson2. Natalia Kurenkova3. Liliana Cardenas4. Martina Pietrobon5. Aumkar Navare