assignment 1 (real groovy) leighton wilson

By Leighton Thomas Wilson4907216

Real Groovy isReal Groovy is: A chain of music stores in

New Zealand.

The four stores are located in Auckland, Wellington, Christchurch, & Dunedin

And it has a worrying problem…

Due to music sales Due to music sales declining.declining.

CD sales decreased by 20% in 2006

As more people look towards the As more people look towards the internet for cheaper products,internet for cheaper products,

To download songs and buy other music apparel.

These downloads are both illegal and legal…

with a 24% increase in illegal downloads in 2006.

But mainly illegal…But mainly illegal…

This will have negative impacts on the

business…

Which could result in great financial Which could result in great financial losses.losses.

So Real Groovy has to find new So Real Groovy has to find new ways to keep the businessways to keep the business profitableprofitable

And the pressure on the record store has forced it to generate profits in different ways.

The business has attempted to increase profits by:

Having a diverse range of Having a diverse range of products on saleproducts on sale

As well as locating their stores in As well as locating their stores in the CBD’s of cities where many the CBD’s of cities where many consumers are concentratedconsumers are concentrated

And also by setting up a website And also by setting up a website in 2001.in 2001.

These techniques have helped Real Groovy succeed to this point

When competitors like ‘Sounds When competitors like ‘Sounds Music’ stores’ have failed.Music’ stores’ have failed.

However Real Groovy can still improve its revenues…

By selling digital By selling digital soundtracks from the soundtracks from the website or stores.website or stores.

This will allow people to purchase This will allow people to purchase one or two songs, instead of a one or two songs, instead of a whole CDwhole CD

Improving sales for the business.

This will keep people coming to the stores or website

Where they could also purchase Where they could also purchase other items, such as apparel.other items, such as apparel.

This strategy should improve profits for the business

And allow it to continue operating And allow it to continue operating into the foreseeable future.into the foreseeable future.

THE END