Marketing Analysis Polyphonic HMI
1. Uncertain Attractive Yet Challenging Music Industry Landscape
The music industry is a 32 billion dollar industry, offering a huge opportunity if it can be penetrated. However, it is fraught with challenges. ArtistsArtists, producers, and record companies have little idea on how to find and create success in the industrygo abo. The dominant players, i.e. record companies utfind pursuing the production of thethe next big hit by producing in masses and hopingin hope that one turns out good, . This is shown evidenced by the low hit success rate of 10%. of a song topping music charts (Pg. 1, P2). What entails is an industrial marketing practice of huge inefficiencies and unwise budget expenditure (Pg. …show more content…
Therefore, HSS can only be seen as a subordinate tool in meeting producers’ needs. Secondly, thereThere is a high level of skcepticism as producers pride themselves as artists with skills that cannot be replaced by a machine. Lastly, they might feel threatened that the software will replace their job and hence refuse to adopt it.
Risk Drivers: The core needs of UA is to get a contract from RCs, but as RCs might not align their tastes and preferences to the scoring criteria of HSS (Pg.12, P5), a good report from HSS does not directly translate to the UA being signed by the RC. Thus, HSS is unable to meet the needs of this segment. Next, UA have financial constraints which had prevented them from seeking available avenues like Internet Polls and Call-out surveys that costs above $1000 (Pg.10, P1). Thus, this is a highly price sensitive segment. In addition, Polyphonic does not have the full registry of UA. The shoestring budget does not allow for estensive advertising as it is costly for outreach to the massive number of UA (Pg.11, P4). Lastly, the reports may be too complex for UA to understand, resulting in low adoptability.
Option 3: Target Record Companies(RC). This segment comprises of five major RCs with combined share of 84% in the U.S. market, each being home to at least a dozen labels. In addition, there are also tens of thousands of