Marketing Strategies of Sony Music Entertainment: A Report

This report provides a comprehensive analysis of Sony Music Entertainment's marketing strategies, beginning with an overview of the organization and its competitor, Warner Music Group. It examines the current state of the music marketplace, including digital music trends and market value. The report delves into Sony Music Entertainment's marketing strategies, emphasizing the use of social media and digital platforms, and compares these strategies to those of Warner Music Group. It also includes SWOT, PESTLE, and Porter's Five Forces analyses to assess the external factors influencing Sony Music Entertainment. Furthermore, the report suggests an innovative approach to improve marketing efforts, focusing on geographic, demographic, psycho-graphic, and behavioral segmentation strategies to target specific customer groups. The report concludes with recommendations for optimizing marketing strategies within the competitive music industry landscape.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of the organisation and examine one of its competitors.............................................1
Current state of the music marketplace and brief overview of the market ................................2
Marketing strategy of Sony Music Entertainments.....................................................................2
Marketing strategy of Warner Music Group's.............................................................................3
Why they have chosen these strategies.......................................................................................3
TASK 2............................................................................................................................................4
Brief explanation of the selected entertainment strategy to improve..........................................4
New innovative approach which develop in Sony Music Entertainments..................................4
Plan of implementation with critical analysis outline the challenges.........................................5
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing consists different set of activities which helps to communicate and delivering
and develop value for customers, clients, partners, etc. It aids in make better decisions to satisfy
customer needs better than competition (Stöttinger, Schlegelmilch and Zou, 2015).
Present study based on Sony Music Entertainments which is an American Global Music
Conglomerate and incorporated as general partnership with entertainment services. They served
their services in different areas of the world.
In order to gain insight information of the present report, it covers brief description of the
enterprise and its competitor. Furthermore, overview of the market and strategies determines
which assists to apply effective marketing strategies. Moreover, innovative approach will be
explaining to implement successful plan.
TASK 1
Overview of the organisation and examine one of its competitors
Sony Music Entertainments is an American Global Music Conglomerate which owned
and incorporated as general partnership. It is subsidiary of Sony Corporation of America which
was originally found in 1929 and renamed as Columbia Recording Corporation in 1938. It is one
of the second largest company behind Universal Music Group and ahead of Warner Music Group
on the grounds of UK. Mainly the selected music entertainment consider their operations from
1991-2004. They got license to CBS trademark in 1988. In Epic associated, label renamed to
replace CBS model. In August 2004, Sony entered joint venture with equal partner Bertelsman
with merging Sony Music.
However, Warner Music Group is also music entertainment organisation and one of the
big competitor of Sony Music Entertainments. Headquarter of this group is in New York City.
They own one of the largest music publishers. Furthermore, there are several divisions of Warner
Music Group such as Atlantic Records Group, Warner Bros. Records Group, etc. It is one of the
largest music publishers which expanded business to digital media operations with its
acquisition.
SWOT analysis of Sony Music Entertainment
Strength Weaknesses
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 Strong brand
 Diversified business
 Popular profitable products
 Lack of dominant mobile devices
 Vulnerability of database and network
 Limitability of several products
Opportunities Threats
 Further expansion and diversification
 New product development
 Rapid innovation
 Cyber attacks
 High competition
 Software policy
PESTLE analysis for Sony Music Entertainment
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Political factor: Political conditions create impact on Sony
with increasing support by government to
secure data. Furthermore, online business
promotion also consider with political support
in market.
Economic factor:  In the UK, high growth exist so that it
impact positively on economic trends.
Furthermore, economic stability of
developed market also determines
successful opportunity for growth rates.
Social factor: Online gaming is increasing which support to
develop opportunities for Sony's products.
Improving wealth distribution also developed
environment of the business which is relevant
for chosen corporation.
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Technological factor: Sony is highly depends on technologies which
is used in business. It also facilitates to use and
consumption of products. Effect of
technological trends and conditions increasing
dependence on digital technologies. There is
high rate of research and development.
Legal factor:  With the help of improving patent
protection, increasing regulations and
products regulations Sony must deal in
UK environment.
Environmental factor:  Environment factor also consider with
increasing emphasis on business
sustainability. Environmental friendly
products demand also develop with
advance technology. Furthermore,
recycling facilities is also opportunities
to develop opportunities of availability.
Porter five forces for Sony Music Entertainment
External factors create impact on business environment of Sony which can be
successfully evaluated from porter's five forces elements. They are as follows:




Competitive rivalry (Strong force):  Due to high aggressiveness of the firm,
competitive rivalry exist that affect to
company's revenue. Low switching
costs is also element that create impact
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on Sony.
Bargaining power of buyers (Strong force):  High quality of information and
moderate frequency of purchase exists
so that it create impact on bargaining
power of buyers in Sony.
Bargaining power of suppliers (Moderate
force):
 Sony corporation depends on suppliers
to support their business. Overall
supply is moderate so that it support to
influence the availability of material
that are use by firm.
Threat of substitute (Moderate force):  High threat of substitute is major threat.
In this regard, low switching cost and
moderate variety of substitute exist in
the market.
Threat of new entrants (Weak force): Due to low switching cost and high cost of
brand development, Sony must address
potential growth of new entrants.
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Current state of the music marketplace and brief overview of the market
Digital music industry has been gaining momentum over the last several decades. It
considers consolidation and growth in wide range of digital platform to assess and play digital
music. It is streaming became more popular in UK 2016 which continuing explode in popularity
as per new report by BPI. It also examines size of music market which include format that how
British artists spread around the world. Value of music sales soared by 10% to £1.2bn, to lift
total value of UK entertainment market to a new all time high of £7.2bn in 2017. They grew by
6% in 2016 so that they contribute £4.4 billion in the economy (Brief overview of music
entertainment market UK, 2018). As per annual economic study by UK music and its members
showed that music industry continued grow last year across almost every sector of the business.
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Illustration 1: Music industry income
(Source: Music industry income in the United Kingdom (UK) from 2003 to 2017 (in million
GBP), 2018)

From the present graph, it can be interpreted that in UK, there are different music
industry grow from 2003 to 2017. In starting time, they are growing very fast while in mid term
their profits reduced. In addition to this, in other years company grow to develop different
activities of music event.
BCG matrix of Sony music Entertainments
Question mark: Rolly Stars : products examples Home
entertainments systems
playwriters , LAPTOPS
Dogs :
CDs
Cash cow : Projectors
Digital cameras
Sony music Entertainment they are the business with low growth rate and high market
share. Generating cash more than its requirement which can be used by other units.
Marketing strategy of Sony Music Entertainments
Sony Music Entertainments using social media channels such as Facebook, Twitter and
Instagram. These networks of social media and certain mailing lists, iTunes and streaming
platforms assists to reach towards target audience with subscription services. In addition to this,
they are also using combination of both traditional and digital marketing channels due to lack of
social media activities. Digital platforms must be require implement so that subscription services
come to satisfy necessity for receiving content from their favourite artists (Kelsey, 2017).
Content marketing consider core elements of the digital platform. It shows consumer
offering which specialists at Sony Music central that create empathy with using social media.
With the help of social media marketing, Sony Music Entertainments can easily discover new
content and analysing musical and marketing terms which create future impact. With the help of
Sony Music Experience, interactive marketing strategy successfully develop that emphasis on
targeting audience at emotional level.
Marketing strategy of Warner Music Group's
Warner Music Group consider content marketing strategy to promote their music
entertainment in different areas of the world. Mainly they consider newsletter which consider
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musical artist's career, touring and live concerts that are major revenue generator. Operational
challenges around direct marketing concert has been complex so that most tours across the
industry marketed with appropriate dates (Fritz, Sohn and Seegebarth, 2017). Sales and
marketing teams oversees centralised web, commerce and analytical where different marketing
platforms managing with thousands of email campaigns.
Main challenges in front of Warner Music Group were Content, timing, geographic, etc.
relevance. They are able to tackle these challenges by integrating powerful partners such as
stakeholders, employees, customers, etc. They all are gather to face challenges and overcome it
with promoting more desired level results. Moreover, sales and marketing team of this music
group oversees centralised web, commerce, analytics and managing platform across the multiple
territories (Anda and Temmen, 2014).
Why they have chosen these strategies
Sony Music Entertainments using social media marketing strategy because it assists to
promote music entertainment in different areas of the world and that too cost effectively. It
assists to understand more about music industry so that it is important to make changes
according to marketing strategy. There are several benefits of using social media strategy
(Charlesworth, 2014). For instance, less occurrence of cost and target large number of audience.
They can deal on the concept of 24/7 to conduct good research. There are several new
technologies, apps, tools, trends and strategies explore which assists to contain updated
information.
However, Warner Music Group using content marketing to show their consumers what
they are mainly offering. As a result, videos and pictures are most effective way to engage for
followers with using social media. Therefore, it is important to post and tweet content several
times in a particular day (West, Ford and Ibrahim, 2015). Unique way to post every content is
needed which increases value resides to create differentiating every single product or service.
Furthermore, special features also assess in every piece of musical material such as video, songs,
interviews, etc.
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TASK 2
Brief explanation of the selected entertainment strategy to improve
In the Sony Music Entertainments, social media marketing strategy has been selected
which consist promotion of music entertainment in different areas. However, there are more
competitive environments exist that continuously streamed for free or low cost every day. For
music fans, access to great albums never been easier (Lovelock and Patterson, 2015). There are
more choice to develop different range of services. In order to increase connectivity of the
internet and rise in content distribution options for musicians, large record of conglomerates,
smaller, independent record labels considered.
In order to improve social media platforms, there are more control over the distribution
needed. Use of services towards many artists now have option in industry for conventions
completely. With respect to improve, competitive environment for music artists also successfully
develop which is available to stream online for free (Smith and Wong, 2016). Social media
activities assists to promote more desired level efficiency which increases connectivity of
different perspective. As a result, Facebook, Twitter, Instagram, etc. tools develop to attain more
desired level efficiency.
Geographic segmentation: Company is
planning to target all the customers within as
well as outside the national territory. Business
entity will use social media site for promoting
services.
Demographic segmentation : the strategy of
Sony music entertainment to attract the
younger children belonging to the age of 18-
to 30 years.
Psycho-graphic : segmentations : business
entity is planing to cater the needs of the
customers in niche market. An organisation
will target music enthusiasts that want to
collect the best gear or equipment as a status
symbol for showcase collections.
Behavioural segmentation : Music are
categorises into different parts these are
traditional or latest.
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New innovative approach which develop in Sony Music Entertainments
In Sony Music Entertainments, innovative approach can be consider through using new
channel of distribution. They adopted public relation strategy in which both elements each
person and whole firm considered developing entertainment services. Individual or firm both
kind of ways consider in order to new customer channel. In this regard, different kinds of
individual included in process of innovative approach that assists to meet with creative results.
They perform functions as intermediaries so that distribution assists to promote, sell and make
availability of goods and services with contractual arrangements. Mediator channel of innovative
approach create successful way from production to consumer (Mayer, Borges and Simske,
2018). It is important for marketer to decide route or channel which is best for particular music
entertainment.
New customer channel assists to create way that increases audience. As a result, it will
help to focus on new program which must be develop by Sony Music Entertainments.
Plan of implementation with critical analysis outline the challenges
In order to promote operations with public relation, it is important to look upon
intermediaries. This assists to attract several numbers of customers in event. This function could
be supported with using appropriate stages. With respect to implement new customer channel,
following steps must be develop in Sony Music Entertainments: Types of intermediaries: Sony Music Entertainments need to identify appropriate type of
intermediary such as individual or firm which depends on the functions that performed.
Wholesalers and distributors buy in large quantities and proper take care of all sales
activities which take ownership of products (Kubacki and Rundle-Thiele, 2016). When
they sell through wholesalers and distributors, small percentage for final selling price
included. Retailers directly sell to their consumers at high amount so that it is essential to
look upon the least expensive intermediary. On the basis of intermediaries, they can
promote new App in the market easily. It can be specify as new product development
opportunities in the different areas of the world. Intermediary functions: Getting products from manufacturing facility consider
requirement of consumers which can be fulfil by specific functions. Intermediaries need
to keep track of orders and collect money. These activities consider sales and order
processing with administrative staff and management (Jamal, Peñaloza and Laroche,
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2015). Sony Music Entertainments have to keep track of orders for order processing.
Hence, functions can carry to know efficiency at low cost. On the basis of new App,
functions of intermediaries can be distributed easily. It increases process of
administrative staff and management to look upon development activities. Criteria for choosing intermediaries: When functions of Sony Music Entertainments can
retain, intermediaries select which is the best match of requirements. Key criteria are
control of marketing and customer support. As a result, wholesalers are best suited way
for music entertainment (Posner, Williams and Posner, 2015). Distributors have more
technical expertise which assists to offer some customer support and allow to take part in
promotion and pricing strategies.
 New on line intermediaries models: Selling through the internet has changed with
traditional sales models. In this regard, some intermediaries obsolete and bringing new
structure in Sony Music Entertainments. With the help of online marketing by different
intermediaries, music entertainment can gain more successful results (Charter, 2017).
With the new line of intermediaries, Sony can successfully lead in music event program.
It also increases successful outcomes to look upon target customer development.
RECOMMENDATIONS
Music entertainment consider different activities that increase customer satisfaction and
make them happy with event program. It assists to regulate program that would be beneficial to
increase systematic functioning. On the basis of online and traditional marketing, there are
certain recommendation must be implement (Lovelock and Patterson, 2015). In order to
recommend for the Sony Music Entertainments, following recommendations can be perceived:


Existing products New products
Existing market : By bringing
improvement in promotional
activities and launching the
new products an organisation
can increase in market share.
 Deal as per market
trends and
competition: In Sony
Music Entertainments,
it is essential to deal
 Further business
diversification: With
respect to increase
positive results, Sony
Music Entertainments
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