Current Situation at:

4913544Falen Tuuga Stevenson

Introducing

A store which supplies…

Vinyls

CDs

DVDs

& Merchandised products:

was at the top of its game… Until

..The Music Industry Saw A Change In The

Market!

The company now faced 3 new challenges:

Advanced Technology

Online Shopping

Competitors

Real Groovy VS

Advanced

TECHNOLOGY

Downloading

+

Ipod & Mp3 Sales

=

100

60 65

2610

2002 2003 2004 2005 2006

Sales (%)

Year

Real Groovy VS

ONLINE SHOPPING

Online shopping website

+Costs to Run

=

Real Groovy VS

COMPETITORS

Competing Companies

+

Lower Prices

=

Loss of Customers

However……

With a wide-spread consumer target…

has remained a strong competitorin an ever-changing market

Who Buys What at Real Groovy?

• 15-24 year olds

• 24+ year olds

SO…

Future Solutions?

1.Introduce an

Online Jukebox

System.

Eg.iTunes

2.Introduce V.I.P Incentive systems to keep and add to current clientele.

Make products

more affordable

to the wide spread

demographic.

3.

4.Expand merchandise to include music related equipment eg.iPod accessories.

Stay………