Sony Music Entertainment Market Analysis

INTRODUCTION TO MARKETING TABLE OF CONTENTS INTRODUCTION 1 MAIN BODY1 TASK 11 About Sony Music Entertainment with its competitor examination1 generated Current state of the music marketplace and brief of overview of the market 1 Marketing strategy of Sony Music Entertainment 2 Competitor marketing strategy 2 Why these strategies have been chosen3 TASK 23 Explain strategy of selected enterprise to improve 3 New or innovative idea 4 Plan of implementation with critical analysis to face challenges and increase possible outcomes which affect to final results 4 RECOMMENDATIONS 6

INTRODUCTION TO
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
About Sony Music Entertainment with its competitor examination......................................1
Current state of the music marketplace and brief of overview of the market .......................1
Marketing strategy of Sony Music Entertainment..................................................................2
Competitor marketing strategy...............................................................................................2
Why these strategies have been chosen..................................................................................3
TASK 2............................................................................................................................................3
Explain strategy of selected enterprise to improve.................................................................3
New or innovative idea...........................................................................................................4
Plan of implementation with critical analysis to face challenges and increase possible
outcomes which affect to final results....................................................................................4
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing defines as the tool which assists to promote and increase desired results in the
enterprise. In this regard, key process of the marketing research successfully conducted for
promoting or selling of products and services. It is beneficial to gain more effective and desired
results to promote effective functioning. In the market, it would be beneficial to gain desired
results with effective promotion (Bernstein, 2015).
Present study based on Sony Music Entertainment which is American global music
conglomerate that owned successfully by Sony. They deal to create more desired level outcomes
in all over the world with music entertainment.
For gaining insight information of the present study, it covers information of the
company and its competitors as well. Furthermore, marketing strategy of the enterprise and its
competitor also assessed to develop significant advantages. At last, integrated marketing
campaign develop successfully to prepare appropriate new plan.
MAIN BODY
TASK 1
About Sony Music Entertainment with its competitor examination
Sony Music Entertainment incorporated functions in music entertainment. This company
operate as a music publishing which includes several music labels which consider classic, rock
and other albums. In whole world, there are several countries where it operates in successful
manner such as Australia, France, Ireland, Spain, etc. (Pratamasari, 2017).
As critically analysis, Warner Music Group also deals in American multinational
entertainment and record appropriate label conglomerate which has headquartered in New York
City. There are more than 3500 employees employed to operate functions in 50 nations all over
the world. This enterprise successfully operates with different labels in the world which includes
Warner Bros., records, Parlophone, etc.
Current state of the music marketplace and brief of overview of the market
In the UK, the latest industry data estimated that core music industry develop their
significant advantages to understand effectiveness with appropriate growing. This music
entertainment work, considered around £4.4 in this country so that it helps to increase more than
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142,208 jobs for different types of employees. There are certain famous artists contain in
worldwide in 2016 such as Adele, Coldplay, Bowie and David. Therefore, music generates
around £2.5revenue from export. Total audience who look for live music in the country is around
30.9 million from which 27 million attending concert and 3.9 million going to music festivals
(MUSIC SECTOR SIZE AND VALUE, 2018).
In addition to this, within the UK market company traded to increase revenue which can
be generated from sales in all over the world. There is around 10.6% to £839.5 million customers
gained in 2017. Growth of the company also increases with appropriate sales which generated
through selling more albums. Furthermore, UK's music attraction mainly considered through
festivals, concert venues and musical heritage sites which helps to generate around £4 billion.
Direct and indirect spent in 2016 assists to develop more effective results in the country.
Marketing strategy of Sony Music Entertainment
Sony Music Entertainment is one of the most popular sought to lead with music
entertainment services. They adopted relationship marketing in which companies focuses on
building relations with customers as compare to exclusive trying to sell something which
included in transactional marketing (Sheth and Kim, 2018). Customer love services of the Sony
Music Entertainment, so that an organisation spend more money in particular event to attract
more clients. There are many functions and operations successfully develop to increase channels
such as store, web, mobile, etc.
In order to adopt this strategy, Sony Music Entertainment organises music event in
systematic manner. It requires great experience every time to focus on shorter term goals. Hence,
individual sales continuously develop with this marketing strategy. With respect to promote
music entertainment, communication implemented that assists to transform with appropriate and
valuable resources (Datta, Knox and Bronnenberg, 2017).
SWOT analysis
Strength Weaknesses
 Sony has Built a brand which is
highlighted with the fact and most
valued brand.
 Technology excellence of the company
 High cost of media production
 High core competency.
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is much better to perform several
targets.
 Sony get maximum success from its
play station.
Opportunities Threats
 Company can take advantage of its
movie and music business.
 With the help of joint venture, they are
successfully developed results.
 They have opportunities to enter in
health care sector.
 Faces high competition from
competitors.
 Apple can also give tough competition
with introducing own version.
Competitor marketing strategy
Warner Music Group using transactional marketing which assists to drive on music and
increase entertainment that can helps to face challenges in music entertainment services. With
respect to look upon investors demand, they encourage customers to buy coupons, discount, to
make appropriate event with music entertainment development (Lacoma, 2018). Targets are also
constantly running with systematic promotional events to get interest of customers in the
enterprise.
In this context, Warner Music Group emphasis on maximising efficiency and volume to
increase sales instead of developing relationship with audience. It will assist to increase financial
results which is beneficial to aggregated and earned high profitability. Furthermore, promotion
also helps to beat competitor in an effective manner. It increases new development of products
and services.
Why these strategies have been chosen
Sony Music Entertainment is using relationship marketing because they want to build
appropriate relationship with maximum number of customers. In this consideration, they are
constantly taking high initiatives to bring effectiveness in their business work and ascertained
appropriate results (Ricci, Rokach and Shapira, 2015). It develops more significant advantages
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with different channels such as store, website, mobile apps, etc. The organisation chosen this
strategy, because it builds strong relationship with target audience.
On the other hand, Warner Music Group using transactional marketing which drive for
increasing effective sales to face challenge and run in music entertainment. Therefore, it can be
stated that desired results will be successfully gain (Pierson and Bauwens, 2015). It helps to
increase customer attraction with transaction marketing so that effective results will be
successfully achieved.
TASK 2
Explain strategy of selected enterprise to improve
Simple relationship marketing strategy defines as specific function for a broader CRM
system. It assists to focus on long term relationship maintenance with customers which increases
loyalty as well. As a result, it helps to increase positive results from marketing strategy that
encourages for continue development of business. Managing customer relationships create
network to increase brand awareness (Maloney and Phil, 2016). It also assists to expand potential
customer base that assists to develop improvement of the entertainment development.
Furthermore, Sony Music Entertainment also need improve and build brand identity which
assists to develop relationship further. Another improvement with special event can be
considered with prospective customers in a great way to build relationships (Sheth and Kim,
2018).
New or innovative idea
In respect to determines innovative idea, it can be stated that Sony Music Entertainment
can consider new app with Apple to make success with new information. Leadership strategy of
the enterprise assists to increase opportunity and build outcomes as per latest trends. Innovative
idea in the enterprise assists to perform very well functioning. Creative and live entertainment
assists to implement unique shows to design complete and open a general session. Therefore,
people are equipped to provide latent in every entertainment in imaginable (Lovelock and
Patterson, 2015). It is design to consider all descriptions to watch event and look towards energy
levels throughout the week. As a result, Sony Music Entertainment considered more desired
work to beat other competitors.
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In order to attract customers, they are also required to create functioning and maintain
customer loyalty in Sony Music Entertainment which increase understanding and treating them
in better way. It helps to develop profits and loyalty as well. Main aim to implement it in the
enterprise to measure audience trust and satisfaction from music entertainment. It also assists to
understand and treating in better way with contribution of independent variables (Ricci, Rokach
and Shapira, 2015). It also assists to develop effective advertisement tools to catch effective
results at workplace.
Plan of implementation with critical analysis to face challenges and increase possible outcomes
which affect to final results
In order to implement plan, there are several challenges occurs in front of Sony Music
Entertainment. They are as follows: Lack of proper internet knowledge: In order to implement plan, it can be said that Sony
Music Entertainment have lack of proper internet knowledge. Therefore, it creates impact
to launch new App.
 Lack of skilled employees: Apart from this, in Sony Music Entertainment lack of skilled
employees which create problem in launching new App successfully in the market. As a
result, it impacts on final result to find appropriate working (Datta, Knox and
Bronnenberg, 2017).
After assessment of following challenges, Sony Music Entertainment need to consider
following steps: Set the right expectations: Sony Music Entertainment need to implement right
expectations of their customers. Therefore, in new App of the company they require
focus on advertisement which assists to deal with final results in successful manner.
However, it can be critically said that music entertainment unable to fulfil all people
requirements at same time. This is because, every person has different perception so that
it requires more time to implement effectively (Pierson and Bauwens, 2015). Build the team and resources: Furthermore, Sony Music Entertainment need to build
team and resources to consider final results. It contains different types of resources that
assists to meet with more effective functioning at workplace. In this regard, skilled
employees, finance, social media, etc. resources needed. In critical evaluation, it can be
said that it increases cost of the company to deal with Apple company.
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 Communicate plan: New App development considered more opportunities with
advertisement which is effective tool for music entertainment. As a result, in corporate
blogs the chosen business able to communicate their benefits with target audience.
Furthermore, with the help of search engine marketing techniques, Sony Music
Entertainment able to communicate the plan on the web (Datta, Knox and Bronnenberg,
2017). However, in critical evaluation it can be said that there are different disadvantages
to use of such as lack of control and long-term investment which need to be consider by
Sony. As a result, they should take certain steps to overcome this problem. Build with time-frame: In order to implement plan, time-frame is also important
perspective which must be implement to communicate appropriate functioning. In this
regard, 2-3 months require to build successful App and launch it with Apple company. In
term of critical evaluation, it can be said that when Sony unable to accomplish their
results in following period they need to set more time to attain effective results. Monitoring: In addition to this, the chosen business consider new application through
they are developed brand message across the market with traditional and non-traditional
marketing channels with promotional methods. In this regard, Sony Music Entertainment
monitoring with using email, content, display advertisement and social media to promote
consistent message for a specific audience (Sheth and Kim, 2018). It helps to recognise
value of comprehensive plan which evaluate strategic roles with variety of
communication. However, there is no strong monitoring on work of the organisation so
that it diminish positive outcomes of the enterprise. Opportunity cost: With respect to implement opportunity cost, it can be stated that this is
profit lost when one alternative is selected over another. This concept is useful as
reminder to examine all reasonable alternative to make a decision. It can be creates as a
value which refer and given to decision in plan implementation. However, when Sony
has no any alternative option, it reduces its effectiveness to gain desired results. Communicate results: With this regard, company need to adopt way through they can
easily show their new App in market. Therefore, they adopted social media is through,
Sony Music Entertainment can effectively reach to remain strongly. In order to run with
accurate functions, it can be stated that on Facebook, Instagram, Twitter, etc. the chosen
enterprise promote their functions and operations in successful manner (Kruger and
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Saayman, 2016). It is the best way to communicate appropriate results in the enterprise.
Beside this, it can be critical evaluation, misuse of these elements also take place in Sony
because there are several people not satisfy with new App of the Sony.
Porter five force Competitive rivalry (high): Due to various kinds of business entrance into market, Sony
get high impact from competitive rivalry. It creates impact on revenue of the
organisation. There are several elements create major impact on the Sony such as high
aggressiveness of firms, low switching costs and moderate number of firms. Bargaining power of Sony (High): It influences customers which covered market share
and profitability of products. Sony also consider several elements due to which they
bargaining power create impact on results such as market campaign, trends, etc. Bargaining power of suppliers (Moderate): Sony corporation also depends on suppliers
to support business. In this regard, strategic change in one supplier would have moderate
and limited which create impact on company. Threat of substitute (Moderate): Substitute and threats could hamper growth and
development of Sony corporation. This is because, low switching costs facilitate
movement of customers from products that established with available substitute.
 Threat of new entrants (Low): Low switching costs empower new entrants to attract
customers easily. Therefore, new entry is major barrier to brand development.
RECOMMENDATIONS
In order to recommend for Sony Music Entertainment, following things need to be
implement in it: Digital customer relationship management: In order to develop significant advantages,
it can be stated that the chosen business should consider digital customer relationship
management. It assists to increase significant advantages to implement new App for
music entertainment by Sony Music Entertainment. On the basis of digitalisation, it can
be stated that customer relationship also build positive effectiveness with goals and
objectives. Recruit skilled employees: Furthermore, the chosen enterprise also requires recruitment
of skilled workers those who have ability to understand new system and App. It increases
effectiveness to work in appropriate manner (Sheth and Kim, 2018). It increases target
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audience and gain several opportunities to implement new App in the market. There is
different consideration to integrates digital aspects to maintain relationship system. As a
result, CRM consist optimisation of digital CRM that provide appropriate results quickly.
 Focus on target customers: Moreover, it can be recommended that Sony Music
Entertainment should find target customers with digitalisation. Value of their customers
also changed and created with pressure to consider better relationship. As a result, it helps
to identify interested customers through Sony can implement successful plan (Sheth and
Kim, 2018).
CONCLUSION
From the above report, it can be concluded that Sony Music Entertainment consider their
effective functioning to build brand image. They adopted new idea to build App which launch
with Apple company so that it is useful perspective to conduct appropriate analysis. Purchasing
decisions are also changed which ascertained to look upon website, customer services,
employees and products development. Furthermore, new and innovation ideas make effective
functioning. At last, recommendations provided on which the selected enterprise must focus to
compete with Warner Music Group.
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REFERENCES
Books and Journals
Bernstein, G., 2015. Understanding the business of entertainment: the legal and business
essentials all filmmakers should know. Focal Press.
Datta, H., Knox, G. and Bronnenberg, B.J., 2017. Changing their tune: How consumers’
adoption of online streaming affects music consumption and discovery. Marketing
Science. 37(1). pp.5-21.
Kruger, M. and Saayman, M., 2016. A 3E typology of visitors at an electronic dance music
festival. International Journal of Event and Festival Management. 7(3). pp.219-236.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Maloney, P. and Phil, M., 2016. The Britannia Panopticon Music Hall and Cosmopolitan
Entertainment Culture. Palgrave Macmillan US.
Pierson, J. and Bauwens, J., 2015. Digital Broadcasting: an introduction to new media.
Bloomsbury Publishing.
Pratamasari, A., 2017. International Business Strategy in Selling Korean Pop Music: A Case
Study of SM Entertainment. Jurnal Global & Strategis. 10(2). pp.221-234.
Ricci, F., Rokach, L. and Shapira, B., 2015. Recommender systems: introduction and challenges.
In Recommender systems handbook (pp. 1-34). Springer, Boston, MA.
Sheth, S. and Kim, J., 2018. Social media marketing: The effect of information sharing,
entertainment, emotional connection and peer pressure on the attitude and purchase
intentions. GSTF Journal on Business Review (GBR). 5(1).
Online
MUSIC SECTOR SIZE AND VALUE. 2018. [Online] Available through:
<http://www.thecreativeindustries.co.uk/industries/music/music-facts-and-figures/uk-
music-market-size-and-value>.
Lacoma, T., 2018. What Is Transaction Orientation Marketing? [Online] Available through:
<https://smallbusiness.chron.com/transaction-orientation-marketing-24958.html>.
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