Marketing strategy for music services

OFF THE ONE | BRANDS + MUSIC

MUSIC STREAMING MARKET CONSUMER MARKETING RECOMMENDATIONS

OFF THE ONE BRANDS + MUSIC [email protected] | OFFTHEONE.COM


US MUSIC STREAMING MARKET


US MARKET TRENDS

118B

[Source: Nielsen & Billboard’s 2013 U.S. Music Report, StaAsta /IPF 2012 report, Pandora Q1 2014 Report, PEW research center January 2014]

60%

Streaming up 32% with 118.1B streams in 2013.

60% of US Internet users have used a legal digital music service vs. 20% subscripAon services & 28% paid downloads.

61% of US mobile subscribers own a Smartphone; Android 53%/40% iOS; ownership is highest among Millennials aged 18-‐34 at over 75%.

WEARABLES Ear/Headphone the next fronAer of wearables.

CONNECTED SPEAKERS Old A/V systems ge^ng connected via Sonos, Beep, etc…

CONNECTED TVS 3+ hours/day – 50M+ Americans have connected TVs, Boxes.

CONNECTED CARS 52’/day by 144M (76% alone).

75%

STREAMING BECOMES THE NEW AIRPLAY

MOBILE IS MASSIVE…

Only 4-‐5% of music consumers in the US have signed up for subscripAon streaming service.

5%

96% of Pandora’s 80M users in January 2014 came from mobile.

96%

…AND CONNECTED DEVICES TO GROW AS PLAYBACK DEVICES

42% of US populaAon owned a tablet in January 2014 (130M users).

42%


US COMPETITIVE LANDSCAPE

[Sources: Comscore, Music Report January 2014]

FREE Premium services like SpoAfy and Rdio unleash free offering.

MANUFACTURERS’ OWN MUSIC SERVICES Samsung launched Milk Music with Slacker and partnering with Deezer for their US launch.

OPERATOR + MUSIC BUNDLING Operators are bundling music services with their plans.

COMPETITION IS EXPANDING WITH FREE OR BUNDLE OFFERINGS

Other major manufacturers include music streaming services to foster their own ecosystem.


Most 3-‐5h listening sessions start around 10am

At home via home entertainment with friends & family throughout the evening

Live audio on their own in the car

Peak listening Hme of the day and transacAonal listening though social sharing

Good morning

Commute

Lunch Commute

Back home

Good night

4AM-6AM 7AM-9AM 10AM-12AM 1PM-3PM 4PM-6PM 7PM-9PM 10PM-12PM

[Source: OnDevice Research]

A DAY IN THE LIFE OF A LISTENER


4 DISTINCT TARGET GROUPS

ACTIVE LISTENERS LEAN-‐BACK LISTENERS CREATORS/LISTENERS

•  Younger, high mix of male •  DYI Discovery, acAvely share

•  30y+, slightly more male •  Commute listener •  Uses iTunes podcasts

•  30y+, slightly more male •  Urban and rural •  Commute listener •  Live audio in their car

•  Older crowd, male/female •  Mainstream taste, background usage at the office/home

•  Pandora/iHeart user

PERSONAL USERS

MUSIC

AUDIO

•  Young, lightly more male, urban •  3-‐5 h/day with peak mid day •  Aware of 10 services, uses 5 YT,

iTunes, Pandora, SpoAfy, SC

PRIMARY TARGET: Switchers & New to streaming Core Messaging must be simplified for these key segments

SECONDARY TARGET: TradiAonal Audience

AMAZE ME

MAKE IT SIMPLE

•  Comedian, radio host, •  DYI Discovery, love to share

•  Record voice memos •  Alone, classroom

[Source: OnDevice Research]


MARKETING STRATEGY


STRATEGIC DIRECTION

Phase 1

Compelling offering!

Functional products!Positive consumer experience!

Strong consumer ramp!

Phase 2

Preferred products!

Differentiated solution!Superior consumer experience!

Sustained engagement!

Corporate!Goals!

Consumer goals

Enthusiast adopters!

Reason to show up, no reason to leave!

Broad Adoption!

Brand Awareness !Strong NPS!


POSITIONING & MESSAGING FRAMEWORK!B

ackg

roun

d! Product! Name of the product!

Target Audience! Target #1! Target #2! Target #3!

Customer Needs! Customer need #1! Customer need #2! Customer need #3!

Posi

tioni

ng a

nd

mes

sagi

ng!

Tagline/Headline! Embody the biggest features of the product!

Subhead! Short (3 words)! Long (25 words)!

Positioning Statement/Product Intro! Short (˜25 words)!Highlights the “Beginner”!

Medium (˜50-75 words)! Long (˜100-150 words)!Highlights the “Advanced Users”!

Differentiating messages! Key Message #1! Key Message #2! Key Message #3!

Key

B

enefi

ts! Key Benefits!

2-3 Key benefits are listed in order of priority!Head!Simple message (˜3 words) to describe the benefit!

Support!Legal claims describing the head!

Support #1! Support #2! Support 3!

Below messaging is to be used in all consumer-facing marketing & communications!

Key

!Fe

atur

es! Features!

Features are listed in order of priority. If space only allows for two features, you must use top two features, listing the first feature first, second feature second. !

Quick Pitch!Use to communicate main benefit of Feature. Must be used before Key Message or Descriptive Message.!

Key Message!Can only be used when paired with Quick Pitch. Not allowed as stand alone with Feature. !

Description!Can be used in place of Key Message, but only with Quick Pitch. Not allowed as stand alone message with Feature !


What should our go-‐to-‐market approach consist of to best enable us to acquire new

customers?

Once we have acquired customers, what ongoing

engagement model will allow us to retain them and create

advocates?

Satisfaction!

Loyalty!

Advocacy!

Awareness"

Interest"

Consideration"

Intent"

Evaluation"

Purchase"

GTM

Customer Engagement

GO-‐TO-‐MARKET GOALS


10 SUGGESTIONS FOR MARKETING STRATEGY

BRANDING AND AWARENESS TO CAPTURE NEW USERS AND SWITCHERS (USER FATIGUE)

1.  Raise Awareness: Capitalize on posiAve senAment, clarify through simplified core messaging

2.  Connect on emoAonal level by inspiring an audio revoluAon through the emoAon of sound

3.  Build unique experiences including Mobile Studios, Studios, FesAvals

TARGET TO BE THE TOP MUSIC DESTINATION BY GOING AFTER LEAN BACK USERS

4.  Make music service top desAnaAon for lean back listening experience (curaAon, recommendaAon)

5.  Mobile, mobile, mobile and connected devices: Increase device footprint, awareness, and usage

6.  Create innovaAve 360º markeAng & partnerships with Creators, Influencers, OEMs, and Operators

7.  Develop L&R tacAcs to increase engagement (personalized alerts and CRM, curated content)

GO BEYOND MUSIC – NO ONE HAS DONE A GOOD JOB AFTER ITUNES PODCAST

8.  Aggressively pursue the largely untapped US. Non-‐music users

9.  Become the default “voice recorder” on mobile through partnership and educaAon

THINK MONETIZATION

10.  Develop new moneAzaAon models: data, patronage (by brands and users) and sponsored content

MARKETING PUSH AROUND HERO LAUNCHES (IDEALLY 2/YEAR)

NEW PRODUCT, NEW DEVICE, MAJOR FEATURE, MAJOR PARTNERSHIP

ALWAYS-‐ON MARKETING ACTIVITIES FEATURE UPDATE, MILESTONES, INFLUENCERS, PARTNER MARKETING, L&R

MARKETING APPROACH


360º MARKETING PLAN

ONLINE VIDEO ADS Celebrate and Inspire listeners

and reinforce uniqueness about music service with a “Sound of life” campaign

STUDIO TRAINING/ TOUR

Extend tour by expanding markets, target current and

new SC creators.

L&R CAMPAIGN Create a L&R program with

personalized alerts, premium editorial content (text, audio, video , photo)

MOBILE STUDIOS Culturally relevant

advertising, including TV, radio, online video, online

display & experiential/OOH executions

STUDIOS Build iconic music, radio and artist studio in key US cities to record premium content demo unique

features

FESTIVALS Partner with iconic music

and artistic festival to raise brand awareness, build

premium content library and do product demonstrations

HIGH IMPACT DIGITAL MEDIA CAMPAIGN

Create campaigns that use breakthrough innovative

technologies & cultural story-telling to increase buzz

INSIDERS Expand our network of social influencers producing unique

content to augment new content vertical

OEM/OPERATOR PARTNERSHIPS

Extend media buy through tagging spots with specific

carrier offers

EDITORIAL CONTENT ONLINE TV CHANNEL

Build premium editorial A/V content around music and

audio. Extend the brand beyond products.


GO-TO-MARKET PLAN!

Marketing!

Launch!

Sell in!

Event!(CES, lifestyle event or own)!

PRE-LAUNCH! LAUNCH! POST LAUNCH!

Target! Focus vs. Broad!

Promotion! Soft vs. Hard!

Product Sell-Thru!P1!

PRE-LAUNCH! LAUNCH! POST LAUNCH!

Tie marketing to product launch! Marketing!

Sell in! Product Sell-Thru!P2!

Launch!Event!(CES, lifestyle event or own)!

Marketing strategy for music services

Business

Transcript of Marketing strategy for music services