SELL 250

Assignment 1

Product and Client Research

Courtney McDermottStudent ID: 000528040

Instructor: Kelly Edmonds

And

The Product and Service

By signing HMV to distribute Epitaph and sister label CDs, a mutually beneficial relationship

can be established.

Prospective Client Company - HMV

The History

With over 80 years in the industry and over 400 stores worldwide, HMV is the leader in sales of music, dvds, video games, books, and more.

They have proven themselves an innovative leader in Canada since 1988 with over 123 stores across the country.

They have been voted Music Retailer of the Year by the Canadian Music Industry for 19 consecutive years.

The letters HMV stand for His Masters Voice. This is derived from the famous painting by Francis Barraud painted in 1899 of the dog Nipper next to a gramophone listening to his masters voice.

As of August 2006, there are over 400 HMV stores worldwide plus their fully functioning website.

Epitaph Profile Founded by Brett Gurewitz in

1982 as His Master’s Voice Records.

Since the 90s has grown to become one of the most diverse and well respected independent labels of its time.

Revered for both it’s artist first approach and the consistent quality of it’s signings.

With over 25 years experience in the industry, it stands apart because it works for the artists - not having the attitude that artists work for them.

Many sister labels have been created since its formation, each specializing in their own genre of music.

Has grown up to become a full service label with a very diverse and creative roster with some of the best bands that today’s music has to offer.

The closest thing to a mission statement they have is a quote by the founder in the company’s infant days – “I’m not very good at planning far ahead and it’s hard to guess what the future might hold. So for now let’s just try to do the right thing, have fun, and make money – in that order – and see where it takes it.” This still applies to Epitaph and its sister companies today.

Target Market

Alternative music to blues and all genres in between for all those who enjoy a good listening experience.

Find Epitaph at…http://www.epitaph.com/

Product/Service Profile

Epitaph CDs targets individuals that are environmentally aware as they are made from recycled material.

These individuals pride themselves on being up to date on the latest in alternative trends and distinctive genre options while contributing to global wellness through the charitable donations component of our services.

Product Details Fully ready to sell CDs, cases, and all other

goods made from recycled plastic and paper from Epitaph and all its sister labels.

Case inserts and labels are made with 100% recycled paper.

All five layers of the CDs and cases are made with 100% recycled plastic.

This recycling policy is followed by Epitaph and all sister labels regardless of where the product is made.

Product Details – continued… With the agreement, Epitaph will donate 2% of

its sales profits to the charity of the band’s choice in HMV’s name. A charitable donations receipt will be issued to HMV for tax purposes. Epitaph has established relationships with numerous

registered charities to allow label permissions to be granted.

Epitaph allows artists to choose a registered charity. As the CDs are sold, Epitaph will donate 2% of their

profits to the chosen charity. HMV will receive the tax receipt on an annual basis

from Epitaph.

Product Sales AdvantagesFeature: CDs and inserts made from recycled

plastic and paper but have the same durabilityof those made from new materials.

Advantage: This is a step towards saving the environment as there are thousands of pounds of plastic and paper used for CD production in one year.

Specific Benefit: This may increase sales at HMV and show that the company has a deep understanding of its impact on the environment.

Proof Source: Many recent studies, including those made by TrendSetters and Consumer Digest, show the trend that consumers are more aware of environmental issues and consciousness.

Feature: Charity agreement that 2% sales profit will go to the band’s charity of choice.

Advantage: Monetary betterment for charities receiving the profit share.

Specific Benefit: HMV receives the tax receipt to claim on their tax returns, as well as the obvious public awareness of HMV’s charitable attitude.

Proof Source: As per Revenue Canada, your company can claim the tax benefit in the accounting period during which it made the gift to the charity then deduct the amount of the gift from the company's Corporation Tax profits for the period.

Feature: HMV will have a direct pipeline to the latest and most diverse collection of several genres of music.

Advantage: Constantly up to date and ahead of consumer wants and needs compared to competitors.

Specific Benefit: Able to produce additional revenue due to the expanded variety and availability of artists.

Proof Source: Sony Music increased their annual revenue by 22.4% in 2000 by adding additional genres and artists to their portfolio. Billboard Magazine, Merchants and Marketing, Brian Garrity, August 11, 2001

Prospect Information

HMV – TD Square 317 – 7 Avenue SW, Calgary, Alberta

Product Director – Gary Warrens Based out of HMV Canada Inc, Etobicoke, Ontario

Call Sales Objective To sign a distribution contract with HMV

Canada Inc. with the above noted features by December 10th, 2010.

Sources:

http://tiny.cc/3hun2 www.revenuecanada.net http://tiny.cc/wcizy1i19v www.epitaph.com/about/faq/ www.hmv.ca/info/about.aspx http://en.wikipedia.org/wiki/His_Master%2

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