Real Groovy

The battle continues…

By: Eshani PrasadStudent ID: 4950329

Real Groovy

A New Zealand Company Music retailer Offer music, books, loyalty schemes,

online music download and membership

Currently 4 retail outlets in New Zealand

Challenges: Major boom in digital downloading Changes in demand for CDs and

DVDs International companies entering New

Zealand music retail market

SWOT AnalysisStrengths

Weaknesses Opportunities

Threats

Internal Environment Applying new strategies For example:

• Insurance claims • Loyalty schemes • Running ticket box office operations

Software System

A “systems orientated” company VNC ( Virtual Network

Computing) Used to maintain stock and

additional titles

Strengths

Provide customers with better quality

Range of music No price competition with

music retail competitors in New Zealand

Well mastered LPs

Opportunities

Merchandising Promotion of new products

with advertising to target audience

Offer wider range of physical music recordings

External Environment Diversifying Establishing website

• New features: Free membership loyalty Schemes online music Shopping

Target Audience Mainly the younger

generation How to attract them? Advancement in

technology

Threats

International companies entering the New Zealand Retail Market

Price Variation Changes in demand …

Key ISSUES

Digital DOWNLOADS

Downloading ! Preferred over recording Reduction in total turnover Reduction in company

revenue

Downloading !Good OR bad ?

Easy Availability Cheaper

BUTNot a wide rangeDissatisfactory

Demand for product Rather than demand,

they meet a NEED Main tactic – offering a

wide range Quality better than

quantity No price competition

As a result

Demand Decreases

Entering of International companies

SoundsJB Hi Fi

JB Hi Fi / Sounds Offer discounted prices Price flexibility Low key merchandising

techniques

Conclusion

Overall performance level is ...

Conclusion: Various marketing strategies Advancement in technology Digital downloading Demand for CDs and DVDs Entering of international

companies

Recommendation

What to do:

Recommendation Better ADVERTISING.

This will increase their sales and lead to a wider market share in the New Zealand music retail market