PRESENTED TO
XXXXXX
1. The importance of Audio
2. Why Have an In-House Radio Station instead of just tuning in the Radio/Ipods/CDS/memory sticks ?
3. Some brief supporting facts and figures
4. MCM Methodology of delivery & Competitor Comparison
5. How Exactly does the MCM Solution Work?
6. Financial Models
7. Discussion
MCM works in synergy with your business to provide a fully customised audio experience, that delivers exceptional quality and service that enhances your brand and creates a unique audio solution and effective marketing springboard, ensuring positive results.
Carefully programmed audio is a very powerful medium - It can:- Alter peoples’ perceptions- Improve mood- Influence pace within the store- Induce impulse purchases- Build customer loyalty
Through strategic and professional management of music in a retail environment a critical medium is created that not only increases business, it also improves the shopping experience and ultimately improves sales.
• Communication is one of the most vital tools in any business ,and an Audio solution suites this best.
• Audio is un-avoidable – your staff and customers cannot hide away or zone out from it
• There is a direct correlation between how long people stay in a place and
how much money they spend – and a well planned Audio Strategy will influence this significantly
Why Have an in-house radio station vs:
tuning into the radio CD’s Ipods Memory Sticks.
ADVANTAGES OF OWNING YOUR OWN RADIO STATION:
• You are able to take full control of the sensory marketing tool – AUDIO.
• Create a image of being at the forefront of technology
• Strategic and tactful placement of promotions and commercials
• A well planned play list, will create a great ambience for customers and staff
• You have captive audience so maximise on it !
• You take control of an “un-avoidable” communication medium
Tuning into the radio gives you unwanted competitor advertising over your system
CD’s are expensive and you tire of them quickly Ipods are expensive and you as the owner have
no control of the music content played in your store . Music must be downloaded and selected by the user.
Memory sticks/pre-recorded CD’s need the human element to be used and to be delivered to you. This is time consuming and there can be long delays
None of the above give you almost instant access to add/change your promotions and or adverts.
Some Brief Facts and Supporting Figures
In-House Radio delivers advertising and brand awareness recall more effectively than billboards, magazines, newspapers, television and traditional radio – because you are communicating to a Captive Audience.
Research 1 – In-House Radio: In-house Radio Listener Study, Edison Media Research, completed September 2005 2 - All other media: Tandemar Research Multi-Media Study, 1996
21%22%23%27%
32%
Store Radio TV Radio Outdoor Newspaper Magazine
44% in-house Radio
Recall
By far the most cost effective, and lowest In advertising wastage..Whilst providing high reach & frequencies
Research findings :
• 95% of shoppers prefer entertainment when shopping • 98% of shoppers were aware of the music• 88% of shoppers find retail audio advertising informative and appropriate• 58% of shoppers who hear audio advertisements make unplanned purchases • 42% of shoppers who hear audio advertisements purchase a different brand
from the one they originally intended • 73% of shoppers identify the music genre and agree that it forms an extension to
the store brand/ image• 84% found in-store radio stations a “refreshing” change from the usual
commercial stations• 77% thought that it was very impressive for the brand to have its “own radio
station”
Onyx Research - Retail and media survey 2007
International Research Findings (source www.businessvoice.com):
66% of all purchasing decisions are made on impulse at the point-of-purchase. 53% of those purchases are impulse buys.
- Point-of-Purchase advertising Institute
and About.com Business & Finance
Of the shoppers surveyed 25% think that Point-Of-Purchase Audio would influence their buying decisions.
- Arbitron Retail Media Study
41% say they made a purchase they were not planning to make after hearing the message. 36% have purchased a brand different from the one they intended to buy after hearing Point-Of-Purchase Audio
- Arbitron Retail Media Study
Methodologies of Delivery & Competitor Comparisons…
Basically there are only 3 solutions / methodologies to having your own branded Radio Station :
1. Radio Broadcast System
2. Satellite Broadcast System
3. MCM – Internet based system
MP3(Ipod) / CD / Memory stick does not constitute your own radio station.
1. Radio Signal Broadcast:
- Requires Heavy Investment into Radio Masts, and broadcast facilities- Requires a live DJ Studio to be built- Requires expensive equipment- Requires large staffing component – dedicated to the station- Requires Station managers, producers, DJs , Sound Engineers,
programme managers, and IT support staff – heavy staffing requirement- Sends ONE signal / broadcast to every site – allowing for absolutely no
customisation or demographic matching…- Requires ACMA broadcasting license
So any provider offering this solution will have very high infrastructure and running costs , and will not be able to customise playlists per store – based on demographic needs
Visualisation of competitive methodologies:
A single music lineup is transmitted to each and every site – no customisation
Store 1
Store 2
Store 3
Store 4
Radio Tower Broadcasting
2 Satellite Broadcast Systems
-This system uses satellite broadcasting similar to Foxtel- Requires Capital Expenditure into a satellite and decoder this locks customers in unnecessarily- Single broadcast signal to all sites - Requires Station managers, producers, DJs , Sound Engineers, program managers, and IT support staff - heavy staffing requirement- Sends ONE signal / broadcast to every site – allowing for absolutely no customisation or demographic matching…- These factors contribute to higher fixed and variable costs which are passed onto to the client.
Memory sticks, CDs and MP3s Expensive to deliver and maintain. Delays in delivery of content Difficult to control music content played in
store (nothing worse than walking in to hear heavy metal in a jewellery store...no sale there!!)
Long turn around time to get promotions and adverts to the shoppers
MCM Solution:
-This is not a Radio broadcast , Satellite broadcast or Streaming audio solution- Decoders are placed in each site - MCM differentiates itself from competitors in that our solution enables clients to run independent Playlists and Promotions at individual stores
- Zero Setup fees
- Zero Hardware fees
- Zero Installation fees
- Zero Maintenance fees
- The system is covered by a single monthly service fee charged per site- No DJ Studio or Radio Station Staff expenses – so running and fixed costs are lower , this is passed on to clients.
MCM
Comparison of these Systems
How exactly does the MCM Solution work ?
“Decoders” are placed on the existing music system / speaker system racks , and the play list is received via the internet – not streaming audio – this eats up too much band width and is unreliable – MCM uploads via the internet, and runs offline using as little as 100KB per month.
Our decoders are able to “plug and play” with your existing internet connections
In this way each store/site is able to run a fully customised Playlist appropriate to the type of customer, his behaviour , and the time of day this gives a tailored / individual music experience
The common thread linking all the areas together is in the “stings” e.g. ”you are listening to your Brand Radio “etc……LISTEN
MCM provides a unique IT solution that includes the following:
• Remote volume access
• Audio reports
• Play list reports
• Pre programmed Volume Adjustments based on numbers of people in the mall / store
• Music programmed to the demographic at that time
• Internet interface allowing Management to monitor the system
Financial Models
6 Product packages are available ensuring that every client need has a package and price to suite its needs:
All 6 packages will provide clients with their own branded in-house Radio Station
ALL PACKAGES ARE UPGRADABLE
Silver 1
Silver 2
Gold 1
Gold 2
Platinum 1
Platinum 2
This package gives you the music you want, going to all your sites which is free of your own commercials and
promotions.
It does provide the option to have your company branded stings on the
system – creating “your brand radio”
Advantages:
• You still get the music which is suitable to your image and site, as well as your branding on the system
for a budget price.
• Plus the option of adding or removing any song you choose.
• Budget option for very small operations
• The ability to have a possible revenue stream
A. Silver Package 1 & 2 Music Only Option
MCM
Playlist 1
Silver 1
Silver 2
Music only Option
Music Only Option
Price : $59.99 pmDecoder : $559Installation: $99No Contract
Price : $85.99 pmDecoder : $0Installation: $9924 Month Contract
Your very own radio station broadcasting a SINGLE customised
playlist to multiple sites
Ability to play adverts across all the sites
Advantage:
You still get the music you want, plus the ability to advertise your own brand as well as other products you would
want to promote.
The ability to play commercials
Still Branded as YOUR in-house Radio Station
The ability to have a possible revenue stream
B. Gold Package 1 & 2
MCM
Playlist 1
Gold 1
Gold 2
Price : $89.95 pmDecoder : $559Installation: $99No Contract
Price : $109.99 pmDecoder : $0Installation: $9924 Month Contract
Advantages:
• You can really create an incredible unique audio experience based on the audience visiting that site. The music is tailored for that demographic and therefore will keep your customers in that environment longer – spending more
• You can play adverts directed to that particular audience, thereby ensuring the right product is marketed to the right customer.
The ability to have a possible revenue stream
C. Platinum Package 1 & 2
Multiple Playlists across multiple sites
MCM
Playlist 1
Platinum 1
Platinum 2
Multiple Playlists across multiple sites
Multiple Playlists across multiple sites
Price : $115.99 pmDecoder : $559Installation: $99No Contract
Price : $129.99 pmDecoder : $0Installation: $024 Month Contract
Silver Package 1 Silver Package 2 Gold Package 1 Gold Package 2 Platinum Package1 Platinum Package 2
Multiple Sites - Music Only
Multiple Sites - Music Only
Multiple Sites / Single Playlist
Multiple Sites / Single Playlist
Multiple Sites / Individual Playlists
Multiple Sites / Individual Playlists
Individual Music Selection at each store - - - - Y Y Individual Promotions at each store - - - - Y Y Individual Adverts at each store - - - - Y Y Individual Stings at each store - - - - Y Y One Single music selection sent to ALL stores Y Y Y Y - - Generic adverts at ALL stores - - Y Y - - Generic Stings at ALL stores Y Y Y Y - - Generic Promotions at ALL stores - - Y Y - - Potential revenue stream Y Y Y Y Y Y Price per month (Inc GST) $59.99 $85.99 $89.99 $109.99 $115.99 $129.99 Hardware - Decoder Cost $559.00 No contract
Free (24 Month contract) $559.00 No contract
Free (24 Month contract)
Free (24 Month contract)
Free (24 Month contract)
Installation Cost $99.00 $99.00 $99.00 $99.00 $99.00 $0
How does MCM generate revenue for my company?
If any company is charged to advertise on your system and you approve them the revenue will be split as follows:
Assume Advertiser is charged $1000 a month to air adverts on your decoder: (Note 1 advert on commercial radio
. advertiser can pay over $5000 per advert aired)
MCM International--$300 pmMCM Australia--$150pmAdvertising reseller--$150pmMCM Reseller--$200pm
YOU--$200 pm...................This could be much more!!
Radio is the “theatre of the mind” – create the correct Image and the customer will never forget the experience they had in YOUR store…
MUSIC TO YOUR EARS AND REVENUE TO YOUR POCKET
PAYS FOR ITS SELF AND KEEPS ON
PAYING
Discussion…
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