Record Studio,Music Recordings,Christmass GiftsEntertainment,Movies

Archive for the ‘Marketing’ Category

History, development and growth of CCM over time

CCM, Colorado Creative Music, is music recording studio, founded in 1995 by Darren Curtis Skanson, primarily established as vanity label for producing, promoting and selling his own records, and consequently developed into microlabel with 4 product lines and 11 different albums. In 2000, the company sold 30,000 of Darren Curtis Skanson CDs and received net profit of $4,292.00. The company aims at expanding its customer base, acquire more popularity, and develop the company from microlabel to the independent one.

Vision/objectives

The business vision of Colorado Creative Music consists of three components – Core Value, Core Purpose and Visionary Goals (Thompson, Strickland, 2003).

Core values of CCM are quality, creativity, and excellent customer service. The core purpose of this organization is to make more people listen to classical and light acoustic music and admire it. As for the visionary goals, the strategic dilemma of the business arises. Thus, one of the visionary goal is to make the music produced, played and recorded by CCM musicians, heard by larger audience. The other visionary goal that doesn’t completely go in line with the first one is to win the large custom market for the company’s products and services. The collision here is in the primary value and target of the business: in the first case the attention is attached to the product, music, while the second one is focused on the development of the organization. This dilemma is the subject of strategic choice of the organization, which will be outlined and discussed later.

At the present moment, the main objectives of the company are: positioning the business against its rivals, development of distribution channels, development of the products and enhancement of the product line, anticipating changes in demand and adjusting the firm’s strategy to respond to them.

Operating environment

The firm operates on American market which is characterized by political and economical stability, technical advancements in producing and distribution processes, large number of potential customers, broad demand and intense competition.

Business model

Business model is the mechanism for the company to generate the revenues and profits. It includes strategy and implementation thereof and should answer such questions as how the firm selects its customers, how it differentiates its products from those or rivals, how it creates utility for the customers, how it acquires and preserves them, promotion and distribution strategies, how it allocates its resources and derives profit. As for promotion and distribution techniques for Colorado Creative Music, the particular attention is attached to Internet aspect of the distribution and its capabilities.

Internet is not only alternative way to traditional methods of music distribution, but also a great opportunity for artists and music-recording companies to expose these products to broad public. The advantages of such means are low cost of entrance and enormous size of potential customers market. Traditional chain of music distribution includes such components as writer/performer, publisher, musical instruments company, live performances, venue equipment and services, recording, studio equipment and services, recorded performances such as night clubs, bars, business music, broadcast, film and music videos, and retail. These are traditional stages through which the song or other musical product must pass to get to the final customer. Internet makes this chain of distribution shorter and simpler, and therefore internet-based promotion, advertisement and distribution can be considered a new business model to base the business on. Further information on virtual distribution will be discussed in relevant section.

CCM business model includes following components:

Value Proposition: satisfaction of customers’ needs in quality classic music;

Market Segment: white females (predominantly) and males of 40-60 age range. The market segment needs to be further expanded.

Value Chain Structure: structure of the firm to be described below

Revenue generation: through sales, direct sales in particular; revenue generation roots need to be expanded.

Position in the value network: enters the most specialized industry segment. A large number of competitors from all 4 segments of the industry; business may be complemented through alliance with larger recording company.

Competitive strategy: company’s strategy primarily focused on differentiation rather than cost leadership strategy, through internet distribution allows making the products of CCM cheaper than those of competitors.

Market segmentation, targeting, positioning

The music recording industry has 4 clearly identifiable segments: major recording studios, independent labels, micro-labels and vanity labels. Major companies have large quantities of artists under contracts, reaching the number of 100, specialize on multiple types of music – rock, country, jazz, classical, traditional and other, and have formal and reliable national and international channels of distribution. Independent labels have 10-100 artists under contract, focus on recording of one or two major music styles and have either national or most often regional distribution channels.

Micro-labels have less then 10 artists under contract and are tightly focused on definite style of music. They are characterized by small staff and manager performing as the leading artist of the studio. Micro-labels have rarely formal distribution system and heavily rely on direct sales to fans and wholesale to clubs and specialty retailers.

Vanity labels segment is the fourth, the last and the most specialized segment of the music recording industry. They are founded by independent artists for recording and selling their products (Darren& Winn, 2003). At present, CCM is the micro-label that strives to convert into independent label. Therefore, CCM currently occupies rather narrow market niche of classic and traditional acoustic music admirers within the age of 40-60, predominantly white, middle class females throughout the territory of the United States, though the major part of the customers is focused in Colorado region. This is the result of market targeting, when the studio developed the measure of segment attractiveness – loyal customers and fans of performers; music, and selected appropriate target segment.

Today, the company wishes to change the segment it operates into. To expand the company’s market segment it should develop product differentiation aimed at selling various products with different characteristics to different market segments. So far such differentiation is not developed.

On the basis thereof, the positioning approach now applied by the firm is differentiation positioning, which lies in filling less competitive, smaller market niche in which the firm locates its brand and attracts its customers.

Products

At present, the company disposes of 4 product lines and 11 different records. The brand names of the Company are: Darren Curtis Skanson, Acoustictherapy, Andrew Thomas Harling and Music for Candles. The style of the music offered is the same throughout all the brands: light classical guitar.

Distribution channels

The distribution channels of CCM are predominantly direct sales. These include sales in the gig, shopping mall distribution and in the back end (which includes CD order through 800 number, website sales, mail order). In 2000 CCM sold 30,000 Darren Curtis Skanson CDs, predominantly through direct sales. Though, traditional chains of distribution are more effective and they include major distributors, one-stop distributors, independent record stores and major chain record stores. Developing traditional distribution methods is one of CCM’s primary tasks.

Financial positions

CCM is a micro-label, the third of the four segments in music recording industry. Therefore, in contrast to the premier recording studios as Columbia, Sony Music, EMI and BMG, which possess enormous financial actives, financial position of CCM is rather modest. In 2000, the company reached total income number of $216,614.05 and net income of $4,292.00, which, though, was 4 times less than net income in 1998 (amounting to 20,626.70) and nearly the same as in 1997 and 1999.

Major strategic issues

Major strategic issues of the company are formulated by the manager of the company, Darren Skanson, in the Case Study for Colorado Creative Music (Darren & Winn, 2003) and include the following: – create a profitable music recording label with expanded range of artists and performers; – position Darren Curtis Skanson label to compete with major artists who have contracts to Sony Classical. For this, acquiring traditional distribution methods is necessary; – create new product line similar to Acoustcitherpay which would be saleable and provide funds for the previous two goals.

The strategic tasks and ways of their implementation are not uniform and completely complementary. Thus, the first aim of growing the company contradicts the easiest and most possible way of accomplishing the second goal – promote the music by selling CCM’s product lines to recording studio larger then CCM, independent of major label with access to traditional outlets. Thus, the company has to define its prerogative – develop the recording label or promote the music by means other than within CCM capabilities

Recording studios are proving to be successful business ventures given the right location and the right promotion. Despite possible advertising in CD labels, local recording studios lack promotion and exposure. Studios can also be a challenge to promote due to the presence of other commercial, well-established recording venues. When marketing resources are limited, business owners can turn to the use of printed marketing materials. Below are examples of printed materials that can be used to market a local recording studio.

Flyers – Flyers are direct and concise promotional materials ideal for creating awareness about a new recording studio. Flyers can spread news about the opening, new equipment, or special promos such as discounted rates for off-peak hours and seasons. Bulk orders of flyers today can be printed with the convenience of online printing services. Customers can choose from standard flyer design templates or upload personalized designs on a website.  Flyer sizes and finish can also be specified online.

Stickers – Stickers are small but attractive marketing tools. Stickers can be handed out quickly, effectively the spreading word about a new recording studio. These stickers can be given out in music stores, clubs, music schools, or even just around the neighborhood. The right graphic design and catchy tagline can help with studio name recall or referral.

Professional-looking stickers can be printed using professional printing services that offer free services such as digital proofing in PDF format and paper sample kit delivery.

Posters – Poster printing can be used as high-impact but affordable materials for marketing. Large poster sizes enable printing of more information and promotional images. This promotional information includes brand tools like logos, taglines, recording studio history and event sponsors. Posters can be used to promote new bands, open recording sessions with famous bands, mini-concerts, guest sound engineers, or even album producers. A poster print can be used to decorate the studio interior with the studio’s name, tagline, and logo. Online poster printing companies offer wholesale poster printing at discounted prices.

Make full-color decorative pieces and effective marketing tools with poster printing. Posters can help you convey essential messages using images and text. Design your prints and make use of nice colors, high resolution images, and good font size. Utilize quality stocks like 100 lb. Paper Gloss, 100 lb. Paper Matte, 10 pt. Cardstock Gloss, and 10 pt. Cardstock Matte to enhance the quality of your prints design. These are the following poster design ideas that you can use for your music production recording studio.

Poster Design Ideas for Your Music Production Business

• Include Photo Collages: Put together different photos and images to create custom collages for your posters. Use applications like Adobe Illustrator and its PhotoMerge feature or free image enhancing software like GIMP and Picasa. Individual photos must be of high quality and high resolution. Print your own images on high-gloss photo paper to create posters with clear and rich images for your music production firm.

• Make Art Posters: Beautiful poster designs can be printed as mounted artwork. Art posters can be turned into mounted canvas prints by making use of foam core or gator board mounting. Mounted prints are trimmed for a nice, clean edge. A mounted art poster is easier to display and it will give a positive and relaxing mood to your music production recording studio.

• Print Poster Calendars: You can also print personalized poster calendars for your music production firm. Aside from music-related photos and images, poster calendars can be used to promote upcoming music events in your locale. Hand out poster calendars as promotional tools. Inform the audience about the benefits that they can gain from your services. Promote your music production recording studio with full-color and attractive poster calendars.

Get your designs printed on large sized posters with the help of a professional printing company. Use online printing solutions for fast and easy poster printing and design.

Low-Budget Equipment Advice on Music Recording Necessities

Designing an unused room can be exciting; with a little bit of creativity and a few purchases, you can build any room for any purpose. If you are into music, reconstructing your room into a recording studio can instantly pave way for a small sideline business or a great hang out with friends and bring music compositions to the next level.

Being serious with your hobby is a good thing, and the next best thing can be injecting some entrepreneurial spirit into your pastime, that, a recording studio made out of an old room can be a quick and practical solution. Providing a haven for musicians within your circle can surprisingly breed genius musical ideas and compositions, and using print postcards in the near future to fully promote aspiring artists, or even yourself, can be a great solution. With just a few design and purchase tips, your room can be functional and professional-looking in just a matter of days.

1. Audio Mixer: Without this equipment, your chances of building a recording studio of your own will not happen. An audio mixer or sound board is the heart of every recording since this is what controls the level of timbre and other dynamics in recordings; without this, an input of the vocals and instruments cannot be blended in accordingly. You do not need to purchase a brand new one; asking around in different DJ mixing schools, DJs themselves, clubs, schools, or teachers in the field can easily lead you to buying much cheaper equipment.

2. Carpet or Foam-based Walls: Music recorded has to stay within the parameters of the room for reasons that you need all sounds produced to bounce clearly for proper soundproofing. This way, you can capture acoustics precisely and accurately. Usually, soundproofed rooms are structured with patterns and grooves; but for a cheaper solution for homes, you can use foam on canvas boards, carpets, or heavy drapes to dampen and reduce sound pressure.

3. Flooring: To add more to soundproofing, carpeting your floors also provides better soundproofing for any recording.

4. Reference or Studio Monitors: At your computer area, having near field monitors will help when you are triggering with notes and recording. Your large mid field monitors are used for when you are at your mixing desk; this set of monitors is what helps in evaluating crispness and balance of sound.

5. Speakers: Purchasing a good set of speakers is also important; with positioning, avoid placing them at the corner but instead a few inches away to avoid excessive bass boost.

6. Lighting: Using dim lights can build an atmosphere for being more creative; just make sure the dimness is still workable to read though music sheets. Adding fixtures such as lava lamps and dimmed spotlights can help increase mood.

7. Musician Recording Tools: Have at least five microphones present. Purchasing a dynamic microphone can already suit a small recording studio plus these items are fairly cheap compared to others. Sometimes, they come packages fit for vocal and drum recordings.

8. Digital Audio Workstation: Choosing a good kind of software to install in your computer is one thing you should spend time looking for. This is where recording, editing, and playback are produced; without this, you will not be able to manipulate the sounds coming in from the recording.

These items may seem difficult to set up and expensive; but you will be surprised that cheap finds are just around the corner and will still give you the same benefits brand new and modern equipment provide. What’s important is that you get to produce and record music; and eventually turn this into a running small business. As you progress, getting postcard printing done to give to your prospects can specifically hit a group of people. This way, your promotions are effective and cheap as well.

Different Ways to Reach Out to Prospect Musicians and Managers for a Successful Recording Studio

After the set up, loan, and investment, gaining clients just by referrals and connections are not enough to bring your sideline business to the next level. To breakeven over a long period of time is not ideal and a ROI gained instantly is a given common goal. As the entertainment industry is filled with competitors and is way past fast-paced, more direct and aggressive approaches are necessary for a start-up recording studio.

When planning your breakthrough in the music recording and entertainment industry, simple strategic plans are not enough; a big chunk of guts, expert communication skills, and a winner smile are needed to get through these toughly built businessmen and artists. Thus, consistently being in close contact with your targets is necessary until you eventually earn their trust.

1. Be on site: Before you can offer your services, familiarize yourself with your prospects. Watching the artists and eventually meeting with the handlers and music members is a sure approach. Once you are in close contact with them, hand out your UPrinting business cards, follow up by revisiting and luckily you can catch on recording with your prospects.

2. Establish stronger connections: Expanding your options is also needed, other targets can be found at events, bars, and in photo shoots. Along the way you get to inch your way through the industry and gain additional chances for recordings. Eventually, you get invited to parties, better events, and other happenings around the industry; and finding means to get to introduce yourself and your service to the right people such as club owners, celebrities, radio station disc jockeys, and publicists helps for they have access to a very large market.

3. List and link away: Find as many possible areas and places you can enlist your services. Usually, magazine directories, classifieds, online directory sites, and music websites and fan pages can supply you with inquiries.

4. Offer mini services: With the prospect clients you have met, try to offer as many free services you can to get consistently into their events. For minimal expenses, you can offer your equipment such as speakers, mixers, or supply raw music for events.

5. Ads: Once you get a flow of customers into your recording studio business, you can go UPrinting for your materials. Posters and flyers can be more capable for such type of promotions.

Getting into the scene and knowing the trends of your target market works well with a recording studio business. Through regularly meeting your musicians and artists, you can expect regular recordings as well.