Re-Positioning Rega Turntables to Hip Professionals

Repositioning Turntables to Hip Professionals

Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, Erica Swallow, and Andrew Wong

Consumer BehaviorC55.0002 - Section 2

History of the TurntableFirst invented in late 1870s

Through the 1960s and 1970s, turntables were the leading audio technology

Predominantly replaced by digital players in 80s and 90s

Vinyl records and turntables growing popular once again

OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Current Market Trends

Great advances in playback since 1970s; still retro appeal

US record sales increase 40% in 2007 to 1.3 million units

Amazon launches vinyl-only section of its online store

While MP3s conquer the market, CDs become a dying trend



Current Market Trends

“The involvement and work the listener has to put in [the vinyl record], all make it the format of choice for people who really care about music.”

-Patrick Amory, MatadorMP3 coupons provided with vinylLoudness War creating a cry for higher-quality soundOn vinyl... Beck, Kanye West, Radiohead, Madonna, U2, etc.

Rega Research LimitedContemporary British turntable company established in 1973

Turntable line ranges from low-end P1 model to high-end P9

Sold through few distributors; limited positioning to target

Most industry competitors’ price and promotions not effective

Substitutes like iPod biggest threat for target market


Key Consumer NeedsTurntables provide access to newly popular vinyl records

Warm analog sound reputed to be far superior to digital music

Turntables are more conducive to social listening than iPods

Ownership shows trendiness; source of affection and respect


Target Market Specifics“Hip professionals” aged 18 - 34

Young, urban, and trendy market with education, disposable income

Self-expressive and eager to emphasize their individuality

Value products’ experiential qualities over material worth

PRIZM: Young Literati, Bohemians

ACORN: Enterprising SinglesOPPORTUNITY | TARGET | CONCEPT | RESEARCH |

STRATEGY

Concept StatementRega is marketing turntables to younger urban consumers

Record players provide high-quality music experience with rich analog sound

Available in mass-market and independent music stores, high-fidelity audio dealers

Also for sale on Rega’s website with ability to customize


Focus Group OverviewFound older students in dorms familiar with music; bystanders in Virgin Megastore; insiders

Illegal downloads common, but hard copies bought occasionally

Respondents used to set mood, enhance preexisting ambiance

Usually listen in highly social setting or complete isolation


Focus Group OverviewMusic information obtained from social networks, blogs, online radio, and some print; little TV

Audio technology info came from online news, retailer sites, and industry publications

Word-of-mouth highly influential

iPods most popular, computer speakers also used; CD players and boom-boxes now obsolete


Attitudes about Turntables


Overall impressions highly favorable – “classy,” “retro”

Nostalgia about turntables versus notion of modern DJs

Hedonic benefits like ambiance and look frequently mentioned

Switching costs high: learning required, differing functionality, portability, MP3 compatibility

Sense that purchase = switch

Attitudes about Turntables


iPod closest reference price, $300 - $400 as high-end price

Many demanded price premium to switch, $30 - $50 on low-end

Survey found weak / moderate purchase intent for students

Several felt purchase more likely as young professionals with income and personal space

Strategy: ProductInexperienced market demands simplicity of entry-level Rega P1

Simple on/off switch; most settings are already adjusted

Detailed instructions and 3-year warranty reduce perceived risk

Custom details draw for target

• Color finishes standard; colored mat, glass platter


Rega P1 Base Price: $350

Color Upgrade: $50

Total cost: $400

Users must also obtain amplifier, loudspeakers, and cables

Actual investment could run up to $1,600 using Rega equipment

Lower prices from other vendors


Strategy: Price

Current Distribution

Quality Concerns

Optimal Fit


Strategy: Placement


Define separate usage situations for iPods and Rega turntables

Emphasize hedonic benefits and terminal values including social enjoyment and resultant praise

Demonstrate accessibility of turntables and vinyl records

Sales promotions to lower perceived risk and add value

Strategy: Promotion


Launch direct-to-consumer ads using traditional media sources

Print ads in magazines & trade publications like Rolling Stone, Spin, Stereophile, and others

Online advertising campaign on related publications’ websites

Non-traditional campaign using blogs, social networks, and publicity for word-of-mouth

Strategy: Promotion


Strategy: PromotionPublicity to include experiential events to encourage trial

Partnerships with retailers using brand ambassadors

Product placement in congruent films, television shows, etc.

Relationship marketing through customer service, owner-only events, birthday reminders


Reviving the TurntableOngoing trends could help Rega attain unique positioning

Target market of young, trendy, hip professionals ready to buy

Addressing consumers’ value and compatibility barriers key

Hedonic benefits essential

Careful marketing could prompt the revival of a retro product

Re-Positioning Rega Turntables to Hip Professionals

Business

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