Essay About New Users And Original Customer Base

Napster 2.0
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Case Study Outline of Napster
Situational Analysis
Marketing Objectives
To re-establish Napster as the market leader for online music downloading industry.
To establish a competitive market share in the pay-for-play market.
Regain the majority original customer base, and entice new users.
Target Market
Anyone that has internet access and an interest in music.
All ages, races, sexes, income levels, education levels and computer knowledge levels.
Anyone with a minimal understanding of the internet.
Marketing Mix
Product- Legal Music Downloads with the following benefits:
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Music Downloads (Legal rights to 500,000 songs)
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CD Burning
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View Music Videos
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Access Billboard Chart Information
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Synchronize music to other devices
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Message Boards
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Detailed Artist and Album information
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Parental Controls
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Powerful Recommendation Engine
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Personal Inboxes for Music and Messages*
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Ability to Browse Other Users Music Collections*
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Search Engines by Genre, Artist, Track Title, or Popularity
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Complimentary products such as digital recording media, CDs and MP3 players
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Ability to Send Music to Friends within or outside the service*
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Access to Professionally Programmed Radio Stations*
Price-
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$.0.99/ song
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$9.95/ album
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Premium Service $9.95 (includes all (*) products above)
Promotion-
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Promote through partnerships with Microsoft, Gateway, Yahoo and Samsung
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Partnerships with XM Satellite Radio, Tower Records in Japan, a marketing agreement with BellSouth Corp. of Atlanta
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Possible partnership to rollout with cell phones on LM Ericsson of Stockholm
Placement-
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Gift cards are available at various retail stores throughout music areas as well as point of purchase
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Linked directly through Yahoo! by use of banners, search engines and e-mail
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Napster soft ware is preloaded on all Microsoft computers (they hold 80% of the operating system market)
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Samsung offers a digital audio player that is fully integrated with Napster 2.0
SWOT Analysis
Strengths
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Provides a legal alternative to music downloads
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Supporting the individual artist as well as the music industry through agreements with the 5 major recording labels
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Strong brand name rand reputation
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Alliances with industry leaders such as Gateway, Microsoft, Yahoo! & Samsung
Weaknesses
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Lack of a linkable device to transfer music to (i.e. iTunes has the iPod)
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Digital copies are not real copies
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Limited avenues for product differentiation
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Perception of “selling out” to the industry
Opportunities
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Massive market growth
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RIAA crackdown on illegal file sharing
Threats
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The availability of free downloads on various websites
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Advancements in technology
Decision Statement
Through a new advertising program, we hope to recapture our initial customer base and attract new customer’s in order to significantly increase our market share while acting in a legal manner.