Target Market Analysis
The report is prepared to discuss about the various aspects of membership package of QMUSIC in Australia. The main subject of the research is to determine the ways by which the students of High School, TAFE or University can be encouraged to become members and even manage a membership awareness campaign in South East Queensland. The report will also demonstrate the size of market available to QMusic among all these targeted market segments (qmusic.com.au, 2018).
The report subject will discuss how QMusic has aimed to influence the students of High School, TAFE or University to become members and take part in BigSound festival. The report subject also outlines the identification of size of market from the targeted market segments along with membership campaigns developed to raise awareness among the students of these places and influencing them to avail the membership packages offered by QMusic (Kotler, 2015).
The limitations are knowledge gaps, literature gaps along with the time and cost constraints. There was time limitation, which could create difficulties in engaging the people altogether and influence them to purchase the membership packages provided by the organization. Due to lack of time, it might be difficult to gain in-depth analysis and obtain relevant information required to conduct the research effectively.
The research scope is quite good, it can help the researcher to understand the need of QMusic, and ways by which the company can make the students of different universities and schools become members. The report will also cover the importance of becoming members of QMusic and the ways by which the students from all these places can be influenced have been considered within the scope of research (Armstrong et al., 2015). The information is to be gathered from secondary sources including journals, articles, newspapers and websites from which the necessary data and information will be gathered for preparing the report with ease and effectiveness.
QMusic is one of the major music industry development associations in Queensland that has transformed the music careers since the last 24 years. The mission statement is to advance the artistic, cultural and economic value of the contemporary popular music in Queensland and deliver maximum economic, social and cultural returns within the place (Keller & Kotler, 2016).
The membership marketing plan goals and objectives are to influence the students of schools and Universities to become members of QMusic in Australia. There has been huge growth in economy ranging up to A$ 2.793 million and multiple programs that are arranged to attract the guests. The marketing goals and objectives also include helping the musicians and workers obtain relevant knowledge and skills to become successful and at the same time, create opportunities for the individuals by allowing them to take part in the music event and programs by becoming a member. The membership packages include networking, better scopes and opportunities, application discounts, event discounts, benefits and travel portal (Moutinho & Vargas-Sanchez, 2018). The membership packages delivered by QMusic will allow the members to access different kinds of services, some of which are paid and the others paid. QMusic access is made free for the individual who just want to obtain industry news and analyze the scopes and opportunities along with access to various music resources (Dekker et al., 2013).
Membership Package
The membership strategies were implemented to ensure that the clients could be provided with the best packages of QMusic. The membership packages were broken down into wages, unwaged, individual or sole trader, band, business, metropolitan, regional, interstate and overseas. This allowed the clients to choose the most suitable package according to their needs and preferences along with the prices that they want to spend for a particular membership package of QMusic (Ramaswamy & Mosher, 2013).
The SWOT analysis could be used to determine the strengths, weaknesses, opportunities and threats of the organization in terms of the membership packages and membership awareness campaign in South East Queensland.
Strengths- QMusic is one of the major music industry development associations that has flourished in the music industry as a commercial radio station of the media company named Medialaan. It is one of the biggest commercial radio station and third largest radio station in Flanders. The station plays popular music and the radio station activities are broadcasted live with the use of a website. One of the major strengths could be the implementation of the mobile application for the smart phones and alternative music is also played. The music association has managed good relationships with the audience and due to this; daily programs were managed where people could request their favorite song and that would be played. All these things should be informed to the students of the schools and universities for making them know about the membership aspects at QMusic, furthermore would raise their level of interest in accessing the resources, gain industry related latest news and even take part in the events arranged by the organization (Miquel-Romero, Caplliure-Giner & Adame-Sánchez, 2014). The music played could reach mass audience and was considered as a least cost medium where the proximity to purchase was high as well. The size of market available for QMusic is also high, which will makes it easy for target the audiences. With the involvement of YouTube and print media publications, the content of the music programs will be easily dispersed among the clients too (Kotabe & Helsen, 2014).
Weaknesses- One of the major weaknesses could be the less differentiation of the programs that were aired at the radio station. The fragmented audiences was another major weaknesses of the company due to which, few of the programs were not as popular as the others. Research was important for managing the advertising segment and for attracting clients. Due to lack of proper research, the stations conducted the research with biasness. There was increase in listenership though there was not much increase in the ad revenue. Due to the presence of multiple radio jockeys, anyone could open a radio station and thus the competition had increased (Weinstein & Pohlman, 2015). It might be difficult for QMusic to attract the students of High School, TAFE or University and influence them to purchase the membership packages too. Few of the membership packages including Business/organization and Band was quite costly, which might even
Membership Awareness Campaign Strategies
Opportunities- There shall be huge scopes and opportunities because with the influencing of the students, the membership campaigns can spread awareness among the clients and the brand reputation will improve. The size of targeted market segments would increase, which could make the radio station provide better services and work according to the clients’ interests for ensuring client satisfaction.
Threats- Lack of penetration in few of the other market segments and retaining the existing RJs have got tougher as well. Due to the presence of large numbers of competitors including Smooth 95.3, 3MMM, NOVA, ABC Jazz, 2Day FM, threats continue to emerge for QMusic (Gustavo, 2013). Inappropriate advertising and promotional strategies could also create a major threat and prevent the radio station to reach the targeted market segments.
The political, economic, social, technological, legal and environmental factors affecting the commercial radio station and its ability to spread membership campaign awareness would be assessed with the use of PESTLE analysis.
The Government provided support and helping hand by imposing new tax, which contributed to the revenue generation and this affected the business functioning. Due to this, the rules, regulations and laws for managing the membership packages were followed too (Coombes & Nicholson, 2013).
The economic factors could include the prices that were set for the packages and should influence the buying behaviors of the customers.
QMusic adopted the local culture and made sure to play the songs that could favor the choices of the students who were targeted from the market segments (Martín-de Castro, 2015).
Technological advancements could help in managing the promotions of the event and programs and even communicate with the students of the schools and universities. This could influence their behaviors and make them avail the membership packages offered by QMusic.
Various policies, laws and rules could help in maintaining the safety of clients while influencing them to avail the membership packages and at the same time, promote safe and standardized work conditions (Möller & Parvinen, 2015).
The environmental factors could affect the business functioning and the membership packages for the events and programs managed by QMusic could allow for spreading awareness among the clients to maintain a healthy environment.
The issues could be related to the ways by which the students of High School, TAFE or University should be attracted and influenced and developing the membership awareness campaign in South-east Queensland.
The corporate strategic focus of QMusic is to influence the behaviors of the clients and making them avail the membership packages offered by the radio station company (Hadida & Paris, 2014).
SWOT Analysis
The specific membership focus is targeted to the students of High School, TAFE or University in Australia and the package that should be provided the most to the clients could be the individual unwaged and individual or sole trader.
The products include MEMBERSHIP packages for availing the services of QMusic and accessing the resources available. Workshops, music events and programs such as BIGSOUND along with popular musicians and bands performing at events are also considered as major services offered (Sweeting, 2013).
The promotions are done through various advertising techniques and by sending emails to the Universities and schools that shall be circulated among the students to influence their buying behaviors. Leaflets were distributed so that mass audience could be reached (Benner & Waldfogel, 2016).
The place is mainly the South-easy Queensland and all over Australia from where the individuals could be attracted to purchase the membership packages according to their preferences.
The people include the organizers of the events and radio jockeys along with the human resources including employees of QMusic. Other people include the musicians and band artists who perform at the programs (Schüßler, Dobusch & Wessel, 2014).
The processes could be managed by attracting the artists, musicians, industry bloggers, students and other young professionals. They need to engage in the events and music programs for ensuring that the radio station could create a positive brand image and name.
The company provides the customers with a membership package card based on the package that has been purchased. The membership card would allow for gaining the benefits and accessing the services available within the package. This could include application discounts, VIP networking invitations, travel and ticketing discounts, community hub and resources accessibility too (Wang & Shaver, 2014).
Particulars |
2018 |
2019 |
2020 |
Cash flows from operations: |
|||
Cash receipts from customers |
1,088,100 |
1,274,130 |
1,495,202 |
Cash paid for: |
|||
Inventory purchase |
233,663 |
285,863 |
325,398 |
Income tax |
52,868 |
79,895 |
89,902 |
Net cash flows from operations |
801,570 |
908,372 |
1,079,901 |
Cash flows from investing activities: |
|||
Sale of property, plant and equipment |
– |
– |
– |
Purchase of property, plant and equipment |
170,000 |
120,000 |
160,000 |
Net cash flows from investing activities |
170,000 |
120,000 |
160,000 |
Cash flows from financing activities: |
|||
Loan repayment |
525,000 |
575,000 |
587,500 |
Stock repurchase |
– |
– |
– |
Net cash flows from financing activities |
525,000 |
575,000 |
587,500 |
Net increase in cash |
106,570 |
213,372 |
332,401 |
Cash at the beginning of the year |
– |
106,570 |
319,942 |
Cash at the end of the year |
106,570 |
319,942 |
652,343 |
Table 1: Cash Flow Statement of Q-Music
Particulars |
2018 |
2019 |
2020 |
Sales revenue: |
|||
Annual units expected to be sold: |
|||
Online radio box |
1,450 |
1,740 |
2,088 |
Home audio and theatre |
1,000 |
1,150 |
1,323 |
Music festivals |
1,300 |
1,430 |
1,573 |
Q Music shop |
900 |
1,125 |
1,406 |
Total annual units to be sold |
4,650 |
5,445 |
6,390 |
Selling price per unit (in AUD): |
|||
Online radio box |
90 |
92 |
92 |
Home audio and theatre |
400 |
405 |
420 |
Music festivals |
200 |
210 |
225 |
Q Music shop |
350 |
365 |
380 |
Total average selling price per unit |
260 |
268 |
279 |
Total sales revenue |
1,209,000 |
1,415,700 |
1,661,335 |
Cost of goods sold: |
|||
Cost of sales per unit (in AUD): |
|||
Online radio box |
55 |
60 |
60 |
Home audio and theatre |
250 |
260 |
254 |
Music festivals |
120 |
130 |
125 |
Q Music shop |
245 |
250 |
240 |
Total average cost of sales per unit |
168 |
175 |
170 |
Total cost of goods sold |
778,875 |
952,875 |
1,084,660 |
Gross profit |
430,125 |
462,825 |
576,675 |
Table 2: Income and Expenditure Statement of Q Music
The non-financial resources include the assets that are owned by QMusic and consist of a physical value such as equipments, machineries, vehicles, stadiums, music box, etc. These non-financial resources could be managed by maintaining the effectiveness of the equipments and machineries and ensuring that those function properly during the music festivals and events that should be held by the radio station. The human resources were considered as non-financial resources too that should be managed properly to maintain efficiency within the workplace of QMusic. The existing staffs must be retained as well, because they possessed knowledge on how to attract clients and influence them to purchase the services from the company through membership packages (Renard, Faulk & Goodrich, 2013).
PESTLE Analysis
Monitoring and reviewing should allow for tracking the progress and checking whether the market segments had been targeted properly or not. This could also help in reviewing the entire marketing plan and determine whether it could be feasible enough to manage the membership awareness campaign or not. Keeping track of the plan is important to check whether the organizational requirements are met or not and even determine the approximate market size available to QMusic in Queensland, Australia (qmusic.com.au, 2018).
Conclusion
From the report, it could be understood that QMusic aimed to influence multiple market segments consisting of the students of University, school and TAFE to purchase the membership packages offered. The company aimed to encourage and motivate them to become members of the radio station and thus various content and information were made available in YouTube, storyboard and print media to arouse interest among the clients regarding the membership awareness campaign. A budgetary plan was also created to identify the costs that would be incurred while managing the marketing campaign for QMusic.
S- It is recommended for QMusic to provide free samples of music events and programs to the students so that they can feel interested and get influenced to avail the membership packages
M- QMusic is recommended to slightly lower the prices of few of the membership packages so that it can be availed by much more people and increase the profit level for the radio station company.
A- The community hub and resources must be provided with accessibility for gaining much more benefits and discounts
R- It is also recommended to improve the Industry Connect Program for assisting the musicians and staffs to create more scopes and opportunities and influence the students to purchase the membership packages of QMusic.
T- The radio station company must also create scopes for new artists and musicians to present their live performance at BIGSOUND in September 2018, which could attract more individuals towards the membership packages.
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