IN-DEPTHIN-DEPTHA situational assessment by Brendan RalphA situational assessment by Brendan Ralph

Real Groovy sells a wide range of:Real Groovy sells a wide range of:

Music Movies

Books Games

• Deals in second-hand goods.• Usually charges high price.• Also provides online shopping.• Is seen as a Kiwi Icon.

Threats to Real Groovy’s Threats to Real Groovy’s Market Share?Market Share?

Piracy!Piracy!

Software Pirates are on the rise.

• It is absolutely free.• The internet has made it easy for pirates to share files with each other.• Though illegal, it’s virtually impossible for the law to police the internet for software piracy.

Why Piracy?Why Piracy?

Those factors make piracy popular: A part of the market that we never knew about is gone.

Digital Music StoresDigital Music Stores

Are also becoming popular.

They’re easy to get - downloaded straight to your media player…

…Or mobile phone.

Also very cheap, and the range of selection is huge!

Why Digital Music Stores?Why Digital Music Stores?

This makes digital music stores attractive - another part of the market gone.

Retail CompetitorsRetail Competitors

Still going strong

Why Other Competitors?Why Other Competitors?

• They’re all feeling the same pinch we are. Especially Sounds.• But they all have their special selling points, such as price or range of other products. • Some, such as The Warehouse, are just more well-known.

Directly-competing Retailers take up more of the music industry’s market.

What can be done?What can be done?

To increase our share of the pie?

Lower the PriceLower the Price

• Take away some of the competitor’s edge, especially because Real Groovy doesn’t focus on price currently.• Gain their sales…

Why Lower the Price?Why Lower the Price?

Depending on elasticity, higher sales revenue may even be gained from it!

Market What You GotMarket What You Got

Including… • Online shopping service!• Wide range, including second-hand!• Kiwi-Owned!

Any Form of AdvertisingAny Form of Advertising

Will do, so long as it makes people aware!

Real Groovy could make it to the top!

There are challenges ahead, There are challenges ahead, but with the right push…but with the right push…