COURSE: BA (Hons) MarketingMODULE TITLE: Retail Marketing

TUTOR: Sandy RossASSIGNMENT: Crash Records Consultancy Report

WORD COUNT: 4,391DATE OF SUBMISSION: 12th January 2015

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1.0 Executive Summary

This consultancy report was commissioned to analyse Crash Records market and competitive set. The report is based on thorough secondary and primary research identifying key issues and making recommendations of the activities observed.

Research for this report included the creation of a comprehensive consumer report, based upon five mystery shopper visits to Crash Records. The report included observations on store presentation, merchandising and business aspects of Crash Records in comparison to their competitor, Jumbo Records. In order to compare the two stores, three visits were made to Jumbo Records.

Secondary research was conducted through databases such as Mintel, EBSCO and journals through the CIM and Internet Retailing groups. Market analysis was gathered through MarketLine Advantage and Keynote.

The most important external finding was that there is still a market for physical music and that vinyl sales are developing a revival in independent record stores. The whole music industry is predicted by Mintel (2014) to grow over the next five years. Internal findings showed a long standing competition with Jumbo Records where customers remain loyal to their store. However, neither of the stores offered little differentiation. Also found was a non-functioning website and, in comparison, a poor in store atmosphere.

In order for Crash to resolve key issues found, it is recommended that they:

Add second hand vinyl to Crash’s product list.

Develop the website so purchases can be made through the online store and implement click and collect service.

Improve the instore interior atmosphere.

Advertise Crash Records at local music events.

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Contents Page

1.0 Executive Summary p2

2.0 Introduction p4

2.1 Company Background p4

3.0 Secondary Research p5

3.1 Macro Environment p5

3.1.1 Market Analysis p5

3.1.1.1 The Vinyl Revival p6

3.1.2 PESTLE Analysis p7

3.2 Micro Environment p7

3.2.1 Competitor Analysis p7

3.2.1.1 Jumbo Records p7

3.2.2 Consumer Analysis p8

3.3 SWOT Summary p9

4.0 Marketing Mix p10

4.1 Product p10

4.2 Price p10

4.3 Promotion p11

4.4 Place p11

4.5 People p12

5.0 Primary Research p13

5.1 Crash high street store p13

5.2 Online store p14

5.3 Advertising p14

6.0 Recommendations p15

7.0 Conclusion p16

8.0 References p17

9.0 Appendix p19

9.1 Photographs & Screen shots p20

9.2 Tables p27

9.3 Text p31

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2.0 Introduction

2.1 Crash Records Background

Crash Records has been a part of the Leeds music scene for 25 years. Crash is an independent record store that first opened on Woodhouse Lane in 1985. Two years later the store moved to its present location on the Headrow (Crash Records, 2014).

Crash sell a range of CDs, and vinyl (7”/12” singles and LPs) and specialise in indie, alternative, rock, punk and metal. As a ticket agent for all the major venues in the area they receive allocations for a wide variety of gigs and events in the Leeds area. Tickets can be purchased over the counter in the shop or on the website.

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3.0 Secondary Research

3.1 Macro Environment

3.1.1 Market Analysis

The recorded music market - traditionally the most significant music sector is currently experiencing a period of long-term decline. The declining value of the recorded music segment is largely attributable to the transition away from physical music formats and towards comparatively cheaper downloads.

Illegal online file-sharing has had an impact on revenues in the recorded music market, although the entertainment industry has stepped up its efforts in tackling this issue in recent years. Despite the overall decline, digital segments have remained a positive factor for recorded music, with continued annual growth in both downloading and music streaming revenue in recent years. Over the next 5 years, music will ultimately remain vital to UK consumers as an aspect of their lifestyles (Keynote, 2014).

Figure 1.0 shows the predicted growth of total music sales from 2014 to 2019. The growth in the value of consumer expenditure on music is predicted to be driven mainly by the live music sector and the continued strong performance of the musical instrument market. Recorded music is likely to struggle over the next 5 years, although the development of digital downloads and streaming services could provide growth towards the end of the forecast period (Keynote, 2014).

This market demonstrates that new formats offering distinct advantages to the end -user can present a serious threat to existing formats, even where the latter is cheaper. In the early 1980s, CDs were considerably more expensive than vinyl and cassette formats, and imposed significant switching costs because CD players were also very expensive.

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Figure 1.0Source: Mintel 2014

Nevertheless, the new format offered genuine advantages to the consumer, such as high quality sound and resistance to degradation in normal use. This led ultimately to the complete collapse of the pre -recorded cassette market, and relegated the vinyl album to niche markets. Similarly, CDs have been largely replaced by digital downloads, because these offer significant advantages: e.g. the ability to purchase individual tracks, and the ease with which they can be used in portable MP3 players and phones (MarketLine advantage, 2014)

The speed with which the new, alternative formats undermined the existing format, sometimes despite higher prices and switching costs, indicates that buyers found the substitutes highly advantageous (MarketLine advantage, 2014). However, figure 1.1 shows that physical music still makes up a higher

3.1.1.1 Vinyl sales revival

According to figures from the British Phonographic Industry (BPI) and the Official Charts Company, Vinyl sales are at their highest level for 15 years. Just over 780,000 vinyl albums were sold in 2013 – the largest numbers since 817,000 were sold in 1997. The 2013 figure also constitutes a 101 per cent rise on 2012 sales (Lachno, 2014). This comes on top of a growth in vinyl sales from 2008-2012 (see figure 1.2).

Despite this growth, vinyl LPs continues to account for a minor proportion of the market, just 0.8% in the year ending September 2013 (Keynote, 2014). Vinyl LP growth came against the backdrop of a falling album sales market, which reduced by 1.5% in the same period. While independents sold only 3.2% of all albums in the UK in that period, they accounted for more than 50% of total vinyl album sales (The Guardian, 2013).

The rebirth of vinyl records has remained a growing trend in 2014 with more than one million vinyl records being sold in the UK so far this year (December 2014) - the first time the milestone has been achieved since 1996 (BBC, 2014)

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Figure 1.2: Trend in sales of vinyl albums 2008-2012Source: Mintel, 2014

Figure 1.1Source: Mintel 2014

3.1.2 PESTLE Analysis

A PESTLE analysis has been conducted to analyse the macro environment (see appendix 9.2.4). The key findings established were the rising growth of digital and streamed music services, which are soon to overtake CD as the main music format (Keynote, 2014). However importantly for Crash, vinyl records sales have been growing year-on-year since 2008 (see figure 1.2) and live music will remain a growing market throughout the economic recession (Keynote, 2014); two markets in which Crash operate.

3.2 Micro Environment

3.2.1 Competitor Analysis

In the UK there are 300 remaining independent record stores (Topping, 2013). Within the Leeds area there are 3 independent record stores; however in terms of competitors to Crash these have been reduced to one; Jumbo Records. This is due to the third (Relic Records) operating through second hand vinyl whereas Jumbo and Crash supply new vinyl and other media platforms. Relic and Spotify have been identified to Crash as indirect competitors (see appendix 9.3.1).

3.2.1.1 Jumbo Records

For just over 43 years, Jumbo Records has been supplying Leeds with music. Hunter Smith opened Jumbo in September 1971. Moving through shops in Queen’s Arcade and the Merrion Centre, Jumbo settled in the top corner of the St Johns Centre in 1988 (Leeds List, 2014). With a long standing history in the Leeds area, Jumbo Records have amassed a loyal fan base.

The store itself is large (see appendix 9.1.1) and therefore holds a large amount of stock with caters for a variety of customer’s musical taste. Jumbo also operates an online store on their website where customers can browse and purchase products. The major products sold are CD & Vinyl (7”, 10” and LP), concert tickets and magazines/ books. On top of this, Jumbo also sell merchandised t-shirts as well as vinyl accessories such as carry cases, slip mats and cleaner.

With the vinyl market being a niche (see figure 1.1), promotion for the store isn’t a necessity. Loyal customers know who and where they are, whilst potential customers would be gained by word of mouth or by use of a search engine. “Jumbo has been a mecca for me for about 20 years, from visiting from Sheffield as a student in the early 90’s I now live within walking distance! Probably explains my presence there at least three times a week. Testament to the friendly staff” (Guardian, 2014).

As well as having great customer service, Jumbo also uses social media as a platform for advertisement and as a place to interact with their customers. They operate a Facebook, Twitter and Instagram page for the store. These accounts are well managed and updates are provided with latest stockings, offers and music information.

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Figure 1.3: Jumbo LocationSource: Google Maps

Jumbo Records is located in St Johns, an indoor shopping centre in central Leeds. Within St Johns, the store is located in the upper corner meaning it is not in visible site of any potential footfall in the shopping centre. Jumbo is not within visibility of any passing trade, therefore Jumbo rely on their loyal customer base and persons who come to St Johns with the intention of visiting Jumbo.

Crash Records is within walking distance (see figure 1.3) of Jumbo which further justifies why it has been identified as a key competitor.

3.2.2 Consumer Analysis

Among those aged 16 to 24, music streaming services were the most popular way to consume musical content (88%), followed by a digital music collection (82%) and then a physical music collection (63%). The opposite was the case among those aged 35 and older: physical music collections (85% to 91%) were most popular, followed by digital music collections (67% to 11 %) and finally music streaming services (58% to 7%). Take-up of physical music collections (72%), digital music collections (70%) and music streaming services (70%) among those aged 25-34 were all at similar levels.

The table shown in the appendix 9.2.1 shows the purchasers of physical music from high-street shops (see appendix 9.2.1).Penetration of physical stores as the main method of music purchases was at its highest among the older age bands — at 28.2% for those aged 55 to 64 and 28% for those

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Figure 1.4 Source: Ofcom, 2014

aged 65 and over — due mainly to the comparatively low uptake of new technologies associated with people within these age groups. Of particular significance is the 3.8% penetration rate exhibited in the 20 to 24 age band — a significant drop on the 21.4% penetration in the 16 to 19 age band and representing the second-lowest rate — suggesting dramatically higher uptake of new technologies among this age group. (KeyNote, 2014)

By social grade, those in grade A and E accounted for the highest and lowest rates of penetration — at 32.9% and 17%, respectively, for high-street stores as the main route to music purchasing, while penetration among those in the remaining grades fluctuated at around a quarter. The presence of children within a household also had a noticeable impact. Those with older children (between 10 and 15 years old) and those with no children accounted for the highest rates of penetration, at 25.4% and 24.3%, respectively (KeyNote, 2014); thus proving that a consumer of physical music is likely to have a large amount of disposable income.

3.3 SWOT summary

Shown in the appendix 9.2.3 the SWOT summorises the key strengths and weaknesses of the Crash’s internal environment and details opportunities and threats found in the external environment.

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4.0 Marketing mix

Significant cultural, social, demographic, political and economic influences during the last decades of the 20th century, combined with rapid technological advances have radically transformed the consumer's needs, nature and behaviour. The new consumer has been described as existential, less responsive to traditional marketing stimuli and less sensitive to brands and marketing cues while the influence of family or other types of reference groups on the new consumer's behaviour is changing or diminishing (Christopher, 1989).

More researchers share the view that the modern consumer is different: demanding, individualistic, involved, independent, better informed and more critical (Capon and Hulbert 2000; Lewis and Bridger 2000).

Traditionally, considerations were known as the 4 P’s- Product, Price, Place and Promotion. As marketing became a more sophisticated discipline, a fifth ‘P’ was added- People. And recently two further ‘P’s were added, mainly for service industries- Process and Physical evidence (CIM, 2009).

4.1 Product

As a record store, Crash sell Vinyl (LP, 10” & 7”) and CD. They are also an official ticket merchant, selling gig tickets for events in the Leeds area. Other products include offical tshirts and record players. This is immediatly recognisable upon looking at their store window which shows all products as well as listings of upcoming concerts in the Leeds area. The product range is very similar to their main competitor Jumbo (see section 2.1) therefore in terms of products sold they have no competitive advantage.

On some occassions Crash’s stock levels were unable to meet customers expectations. This could be justified by the size of the store and the fact that Crash can order products in for customers. However for highly desired items, Crash need to reevaluate certain stock volume.

4.2 Price

Crash offer good value for an independent record store; new vinyl releases are cheaper in comparison with Jumbo Records (see appendix 9.1.2). The pricing stategy includes product line pricing, and physcological pricing. The price of physical music is very similar in all music retailers; meaning customers are price sensitive, it has an elastic price. A small change in price would mean a change in sales volume.

A small corner of the store is dedicated to sale items, however the products within the sale are there for the purpose of liquidating old stock rather than increasing short term sale volumes.

In an interview with Scott Gamble, Crash Records manager, said “We try and put our prices as cheap as possible but we can’t always compete with places like Amazon who can afford to put prices lower.” (Personal communication, 13th November 2014) “I understand times are hard but I hope people would give us a go first. We’re keen and we have a good range of stock and provide an experience we hope people will enjoy.”

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4.3 Promotion

Crash’s largest promotion of the year is ‘Record store day’ a day where records store sell new rare and limited edition vinyl. Crash promote and build up excitement to the event through social media posts, which creates a hype and engages customers. The event sees queues forming overnight in order to get their must have items (see appendix 9.1.5).

This year, Universal Music UK offered independent music retailers a boost in the form of 12 exclusive vinyl releases to roll out onto their shelves from December 1st (UMusic, 2014). Crash is one of the 120 participating stores in the UK. The store has been advertising the promotion through daily Twitter updates (see appendix 9.1.3), their website and also have a poster on the store window (see appendix 9.1.3: figure 5.2). Crash is the only record store in Leeds that is taking part in the promotion, meaning it has a competitive advantage and will maintain customer loyalty.

In store, Crash show no attempt to get customers to follow them on social media. However, in order to see store promotions, the public will need to already be familiar with Crash e.g. follow them on Twitter or regularly visit their website as this is their main tool used to communicate. Crash have a large following on Twitter as this is where all of the stores promotional events are communicated (see appendix 9.2.2).

4.4 Place

Crash is located on the Leeds Headrow, a prime location for passing trade in the city centre (see figure 2.0). The store is easily visible for customers looking to find the store (see appendix 9.1.4); the yellow banner draws attention to the store name and the display window clearly shows the products offered.

Inside, the shop is narrow with CD’s and vinyl on either side (see appendix 9.1.4). Crash make good use of a small amount of space; products are divided into separate stands with clothing overhanging. Record players and accessories are placed behind the till which is on the opposite end of the store upon entry.

Creating the right environmental setting is of prime importance for shop owners. To create the desired ambiance, lighting may make a contribution, but it is only one of numerous elements that play a role, such as the furnishing and finishes of the shop’s interior, size, crowdedness and music

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Figure 2.0 Source: Google Maps

(Custers et al, 2010). Atmosphere is seperated into four separate elements; exterior, store layout, interior and interior displays. Crash’s general interior is dark, untidy and the music being played in the store can on occassions be loud and off-putting. Therefore the atmosphere created can be unpleasent for new customers. Perceived overall atmosphere is the overall impression of the store's atmosphere as a pleasant or unpleasant place to shop (Rayburn, 2013). The store fittings i.e. the floor boards, music stands and wall panels also look old and worn.

Crash have an online website (www.crashrecords.co.uk). However, the website is not mobile friendly and many links do not work. There has been an undeniable change in people’s buying habits in recent years. The way consumers choose to buy and research products is evolving as technology does…It is therefore essential that retailers manage the customer journey seamlessly from attention to action, and engage with customers along their purchase journeys in a personalised and contextual way (Internet Retailing, 2014). And with 81% of retail marketers believing their customers can easily switch to competitors (Internet Retailing, 2014) it is vitally important for Crash to provide the service experience they offer in store on their website.

4.5 People

The staff at Crash are friendly and knowledgeable people in the music industry. With the stores main custom coming through repeat customers, the staff engage and offer a personalised service to each individual. Research by Julian & Ramaseshan (1994) found good customer service as essential for relationship retention between the customer and the retail business. Due to the size of the store there is usually only one member of staff present, however they are always attentive and willing to offer musical suggestions to customers.

The staff use personal selling as a tool to stimulate add-ons and inform customers of recommended albums and artists. This provides a proper level of customer service and improves/maintains satisfaction. It creates a strong engagement and means the service is personalilsed to meet the customers’ needs.

Crash manager said “It is up to the people. We offer a service we feel is needed and that we feel we do well with a personal touch. It is all to do with services.” (Personal communication, 13th November 2014).

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5.0 Primary Research and Findings

In order to fully understand Crash, primary research was undertaken. The store was visited on five seperate occasions to create a comprehensive consumer report detailing presentation, merchandising and business aspects of Crash. In addition to these observations three visits to the competitors store (Jumbo) were made in order to investigate the problems found at Crash further.

The dates visited were Record store day (RSD) (19/04/2014), Black Friday (28/11/2014), New album release date (Oasis: Reissue (29/09/2014)), Saturday afternoon (06/12/2014) and a Thursday morning (13/11/2014).

5.1 Crash high street store

On RSD the event sees queues forming overnight in order to get their must have items (see appendix 9.1.5). The exclusivity of certain items mean that stock levels are low and are sold on a first come first served basis. The store is hectic with five employees working to help customers in the enclosed environment (see appendix 9.1.5).

On a day with such exclusivity it is expected that persons will miss out on certain products, however on other occasions visiting Crash, customers have been left dissapointed with items selling out or not being available. For example on the 29/09/2014 Crash had 10 of the reissued ‘Oasis: (What’s the Story) Morning Glory?’ in stock. By midday, the store had sold out. Employees offered customers the chance to order the vinyl into the store, however this would take “4-5 working days”. The majority declined the offer, leaving the store empty-handed.

Due to local competition with Jumbo being important it was essential to ‘shop the competition’ and visit their store in order to compare their stock levels and product range. Upon observation it was clear that Jumbo’s range of vinyl was wider and they had superior amounts of stock, this is aided by the stores larger size. Product types in the two stores are the same although Jumbo’s range is greater. Therefore Crash need a new product range to differentiate the two stores.

Crash offer a good service for customers. Staff are friendly and are willing to engage in conversation. On all store visits staff were participating in discussions with customers and were especially more engaging on the Thurday morning visit where the store had no other customers.

For new customers, the store can visually look dark and old. Due to the store door and window being covered in stock and posters, little natural light gets in. This creates a poor atmosphere and contributes to the customers perceptions of the shop. In 1997 three university students researched the effects of store atmosphere on customers’ mood and puchase behaviour (see appendix 9.3.2). Ultimately it was found that customers in a positive atmosphere spent more on spontaneous purchases. A poor atmosphere can shorten the amount of time customers spend experience shopping in the store.

On the contrary, visiting Jumbo, the store is bright, clean and well aired. On the exterior, Jumbo has no door which is inviting to new custom (see appendix 9.1.1). Consequently an improved shopping experience is needed by amending their interior atmosphere and design.

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5.2 Online Store

Online, Crash Records customers are able to purchase tickets and new in vinyl & cd; a low total of 53 items combined (Crash Records, 2014). It was clear that Crash’s online stocking was poor by typing ‘Pink Floyd- The Endless River’ (the fastest selling vinyl album of the century (NME, 2014)) into the search tool, the searcher is greeted with no results. This is a stage where potential custom may then visit competitors’ website in order to make a purchase. In comparison to Jumbo’s website orders can be made from a large back catalogue of albums.

At the header of the online store Crash write “If there is a particular LP, 7" or 10" single you would like us to try and order for you the please email ‘crash@crashrecords.co.uk’ and we will get back to you on availability and price.” This creates a personal engagement however lengthens the time of the sale being made and increases the time for the buyer to change their mind. Thus, Crash need to offer customers a wider stock range on the online store, shortening the length of the transaction. More shoppers than ever are likely to take advantage of click and collect this year (Internet Retailing, 2014).

5.3 Advertising

Both Crash and Jumbo pride themselves on the history and longevity (Est. 1985 & 1971 respectively) therefore both have a loyal customer base; making it difficult for either store to poach competitors custom. Consequently the main importance for Crash is to target new and potential customers. Currently Crash’s only form of advertising runs through their social media pages, a place that communicates with persons already familiar with the store. This means that they have no form of advertising in place to target possible/future custom. As a result of this Crash needs to advertise the store in a way that reaches its target market.

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6.0 Recommendations

Recommendations made have been tailored upon to solve the problems identified during primary research. The recommendations were developed through the use of a TOWS matrix (see appendix 9.2.5).

Add second hand vinyl to Crash’s product list.

Develop the website so purchases can be made through the online store and implement click and collect service.

Improve the instore interior atmosphere.

Sponsor local music events.

Firstly, it is suggested that Crash begin a new product range of second hand vinyl. After visiting Jumbo it was clear that the two stores sold alike products; it is therefore recommended that Crash offer a new product line in order to differentiate themselves from their competitor. The second hand market is growing (see appendix 9.3.3) and it will provide a wider range of product to Crash. Due to the size in store at Crash, the venture will be more prominent on the stores website however some stock will be presented instore.

Within the changes to the website, it is advised that Crash update their online music catalogue with more products listed with descriptions and pricings. It is also suggested that a click and collect feature is implemented. Click-and-collect orders will make up 15% of all internet retail sales of physical products by value in 2014, up 12% from 2013 (Mintel, 2014). Such a feature would be more beneficial to Crash than the current scheme as it makes the purchase process quicker for the buyer.

Local competition is important to Crash, and they need to enhance their shopping experience and image in order to capture customers from Jumbo and appeal to new persons. It is proposed that Crash improves its shopping experience by developing its interior atmosphere. This includes renovating the shop walls and product stands as well as letting more natural light in through the glass door and shop window. Renovation and brighter colours are two of the changes made to the experimented store (see appendix 9.3.2). On top of these changes, the music being played in store should be lowered to make customers feel more comfortable shopping at Crash. These changes will revitalise the stores image and give buyers a modern place to shop.

Finally, Crash should identify specific customer segments and deploy unique strategies to address the desires of those segments rather than a mass market. This creates a high level of loyalty and shields retailers from more conventional competitors (HMV and Amazon). A recommended approach to doing so would be to sponsor local music events in venues for which Crash sells tickets for example Brudenell Social Club and Belgrave Music Hall. Advertising at such venues would reach Crash’s demographic in one setting.

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7.0 Conclusion

To conclude, Crash are in a market in which digital formats available are growing in size, a large threat to the store. However through Crash’s loyal customers and the attitudes towards physical music, Crash will remain a successful store.

As detailed in the report, recommendations have been made in order to improve the current customers experience by improving the in store atmosphere and developing the website. In order to differentiate Crash from their competitor the product extension into second hand vinyl will be made. And finally to gain potential custom, Crash will sponsor local music events.

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8.0 References

BBC News [2014] Vinyl record sales hit 18-year high. [online] Available at: http://www.bbc.co.uk/news/technology-30216638 [Accessed 3 Dec. 2014].

BPI [2013] Vinyl revival continues as LP sales reach highest level in more than a decade. [online] Available at: http://www.bpi.co.uk/home/vinyl-revival-continues-as-lp-sales-reach-highest-level-in-more-than-a-decade.aspx [Accessed 18 Dec. 2014].

Buckley, P.G. [1987] The internal atmosphere of a retail store. In: M. Wallendorf and P. Anderson

(eds.), Advances in consumer research, Vol. 14. Provo, UT: Association for Consumer Research.

Capon, N., Hulbert, J.M. [2000], Marketing in the 21st Century, Pearson Education.

Christopher, M. [1989] "The Existential Consumer", European Journal of Marketing, Vol. 23 N 8, pp. 80 [Accessed 6 Dec. 2014]

CIM [2014] Marketing and the 7 P's [online] pp.4-6. Available at: http://www.cim.co.uk/files/7ps.pdf [Accessed 8 Dec. 2014].

Crash Records [2014] About Crash Records [online] Available at: http://crashrecords.co.uk/online/section.php?xSec=103 [Accessed 13 Dec. 2014].

Custers, P, de Kort, Y, IJsselsteijn, W, & de Kruiff,M. [2010] 'Lighting in retail environments: Atmosphere perception in the real world’, Lighting Research & Technology, 42, 3, pp. 331-343, Academic Search Complete, EBSCOhost, viewed 15 December 2014.

Donovan, R.J. and J.R. Rossiter [1982] Store atmosphere: An environmental psychology approach.

Journal of Retailing 58, 34–57.

Donovan, R.J., J.R. Rossiter, G. Marcoolyn and A. Nesdale [1994] Store atmosphere and purchasing

behavior. Journal of Retailing 70, 283–294.

The Independent [2013] Vinyl revival boosts independent record stores as sales surge by 44%. [online] Available at: http://www.independent.co.uk/arts-entertainment/music/vinyl-revival-boosts-independent-record-stores-as-sales-surge-by-44-8732059.html [Accessed 18 Dec. 2014].

Internet Retailing [2014] Customer Experience Research Report. p.4&10.

Internet Retailing [2014] Customers visit shops less often as they opt to order online instead. [online] Internet Retailing. Available at: http://internetretailing.net/2014/12/fewer-customers-visit-shops-as-they-opt-to-buy-online-instead/ [Accessed 15 Dec. 2014].

Gamble, S. [2014] Crash Records Manager. (Personal communication, 26th April 2004).

Julian, C.C., & Ramaseshan, B. [1994] The role of customer-contact personnel in the marketing of a retail bank’s services. International Journal of Retail & Distribution Management, 22(5), 29–34.

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Lachno, J. [2014] Vinyl sales highest for 15 years. [online] Telegraph. Available at: http://www.telegraph.co.uk/culture/music/music-news/10556186/Vinyl-sales-highest-for-15-years.html [Accessed 1st Dec. 2014].

Lewis, D. and Bridger, D. [2000] The soul of the new consumer : authenticity - what we buy and why in the new economy. London: Breale

MarketLine Advantage [2014] United Kingdom - Movies & Entertainment industry profile. [Online] Available at: MarketLine Advantage Database. [Accessed 2nd December 2014]

MarketLine Advantage [2014] United Kingdom- Digital Media. [online] Available at: http://advantage.marketline.com.ezproxy.leedsbeckett.ac.uk/Product?pid=MLIP1473-0009&view=d0e5 [Accessed 21 Dec. 2014].

Mintel [2014] 'Click-and-Collect - UK - September 2014’. Mintel Oxygen Reports, EBSCOhost, viewed 15 December 2014.

Music Industry Market Review [2014] Key Note, [online] p.1. Available at: http://www.keynote.co.uk.ezproxy.leedsbeckett.aFc.uk/market-intelligence/view/product/10914/chapter/0?medium=download [Accessed 2 Dec. 2014].

Rayburn, S, & Voss, K. [2013] 'A model of consumer's retail atmosphere perceptions', Journal Of Retailing And Consumer Services, 20, pp. 400-407, Science Direct, EBSCOhost, viewed 15 December 2014.

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and possible behavioural effects. In: M. Wallendorf and P. Anderson (eds.), Advances in consumer

research, Vol. 14. Provo, UT: Association for Consumer Research.

Sheerin, J. [2013] A Music Buyer’s Guide to Independent Record Stores. [online] Leeds-List. Available at: http://leeds-list.com/music/a-music-buyers-guide-to-independent-record-stores/ [Accessed 4 Dec. 2014].

Spies, K, Hesse, F, & Loesch, K. [1997] 'Store atmosphere, mood and purchasing behavior', International Journal Of Research In Marketing, 14, 1, pp. 1-17, Business Source Premier, EBSCOhost, viewed 16 December 2014.

Topping, A. [2013] Independent record stores enjoy modest revival. [online] the Guardian. Available at: http://www.theguardian.com/music/2013/jul/25/independent-record-stores-modest-revival [Accessed 1 Dec. 2014].

UMusic [2014] Indie stores get festive with “12 Days of Christmas”. [online] Available at: http://umusic.co.uk/umusic-blog/12DaysofXmas [Accessed 8 Dec. 2014].

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9.0 Appendix

9.1 Photos

9.1.1 Jumbo Records

9.1.2 Crash and Jumbo price comparison

9.1.3 Promotions

9.1.4 Crash Records

9.1.5 Record Store Day

9.2 Tables

9.2.1 Purchasers of music from high-street shops

9.2.2 Social Media following

9.2.3 SWOT summary

9.2.4 PESTLE analysis

9.2.5 TOWS Matrix

9.3 Text

9.3.1 Indirect competitors

9.3.2 Store atmosphere

9.3.3 Second-Hand goods

9.3.4 Customer reviews

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9.1 Photographs

9.1.1 Jumbo Records

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Figure 3.0: Jumbo Records exterior

Figure 3.1 & 3.2: Jumbo Records interior

9.1.2 Crash & Jumbo price comparison

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Figure 4.1: Crash Records: Arcade Fire- Reflektor

Figure 4.4: Jumbo Records: Johnny Cash- American V

Figure 4.5: Crash Records: Oasis- Definitely Maybe

Figure 4.6: Jumbo Records: Oasis- Definitely Maybe

Figure 4.2: Jumbo Records: Arcade Fire- Reflektor

9.1.3 Promotions

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Figure 5.1: Crash Records window display

Figure 5.2: Crash Records: Promotion poster

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Figure 5.4: Social Media promotion

Figure 5.3: Social Media promotion

9.1.4 Crash Records

8.1.5 Record Store Day 2014

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Figure 6.1: Crash Records exterior

Figure 6.2: Crash Records interior

Figure 7.1: Record store day queue 07:00 a.m.

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Figure 7.2: Record store day window promotion

Figure 7.3: Record store day in store Crash

9.2 Tables

9.2.1 Purchasers of music from high-street shops (Keynote, 2014)

9.2.2 Social Media Following:

Crash Records Jumbo Records

Facebook 4,422 5,783

Twitter 17.4k 12.8k

Instagram - 626

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As shown in table 9.2.2, both stores have a good following on Facebook and Twitter. Crash has over 4,000 more followers on Twitter; a social platform which both stores use more frequently. This is a large advantage for Crash as news and stock information will reach a greater amount of people.

STRENGTHS WEAKNESSES

1. Good reviews online (see appendix 9.3.4)2. Large amount of followers on Twitter and

likes on Facebook.3. Strong and frequent interaction with

consumers on social media.4. Dedicated staff with good customer

service.5. Crash has a good location in Leeds City

Centre.6. Loyal customers due to the rarity of

independent record stores.

1. Small store in comparison to Jumbo.2. Little promotional offers to entice

customers.3. Hard to poach custom from competitors.4. High competition with Jumbo Records.5. Competition holds a wider variety of stock

in store.6. Some of the website links do not function.7. The website is not mobile compatible,

alienating a large demographic

OPPORTUNITIES THREATS

1. Live music will remain a growing market.2. The second-hand goods market is growing.3. The competitions online store makes it

possible for customers to make purchases from a large back catalogue of products.

4. More shoppers than ever are likely to take advantage of click and collect this year.

1. Music streaming services have shown the most significant growth in the recorded music market since 2010.

2. Digital music is predicted to exceed demand of physical music.

3. Illegal file sharing is having a negative effect on the recorded music market.

9.2.3 SWOT

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PESTLE Factor Overview Impact and Importance

Factor How the factor could potentially effect Crash Records Time Frame Opportunity or Threat Potential Impact Importance

Economic The number of high-street independent record outlets has slumped from 2,000 to just 300 over the past two decades (The Independent, 2013).

Medium Threat High Medium

Economic Estimates for live music suggest a growing market throughout the economic recession (Keynote, 2014).

Long Opportunity High Medium

Social More than 1 million vinyl records sold in the UK so far this year (December 2014) - the first time the milestone has been achieved since 1996 (BBC, 2014).

Short Opportunity High High

Social Over the next 5 years, music will ultimately remain vital to UK consumers as an aspect of their lifestyles (Keynote, 2014).

Medium Opportunity Medium Low

Social Vinyl buyers are willing to scour second-hand stores to make purchases (BPI, 2013).

Medium Opportunity Medium High

Technological Since 2010, music streaming services — both paid subscription and ‘advertisement-supported’ — have represented the most significant area of growth for recorded music (Keynote, 2014).

Long Threat Medium Low

Technological Since 2003 the market for music downloads has grown significantly year-on-year, and is expected to overtake the CD as the main music format over the next few years (KeyNote, 2014).

Long Threat Medium Low

Legal The National minimum wage for over 21 year olds is £6.50 (Gov UK, 2014).

Long Threat High High

9.2.4 PESTLE Analysis

9.2.5 TOWS Matrix

STRENGTHS1. Good reviews online2. Large amount of followers on

Twitter and likes on Facebook.3. Strong and frequent interaction

with consumers on social media.

4. Dedicated staff with good customer service.

5. Crash has a good location in Leeds City Centre.

6. Loyal customers due to the rarity of independent record stores.

WEAKNESSES1. Small store in comparison to

Jumbo.2. Little promotional offers to

entice customers.3. Hard to poach custom from

competitors.4. High competition with Jumbo

Records.5. Competition holds a wider

variety of stock in store.6. Some of the website links do

not function.7. The website is not mobile

compatible.8. In store atmosphere is poor.

OPPORTUNITIES1. Live music will remain a

growing market.2. The second-hand goods

market is growing.3. The competitions online store

makes it possible for customers to make purchases from a large back catalogue of products.

4. More shoppers than ever are likely to take advantage of click and collect this year.

(SO) RECOMMENDATIONS

Sponsor local music events (S5, S6, O1)

(WO) RECOMMENDATIONS

Add second hand vinyl to Crash’s product list (W3, W4, W5, O2)

Develop the website so purchases can be made through the online store (W1, W4, W5, W6, W7, O3)

Implement a click and collect service (W1, W4, W5, O4)

THREATS1. Music streaming services have

shown the most significant growth in the recorded music market since 2010.

2. Digital music is predicted to exceed demand of physical music.

3. Illegal file sharing is having a negative effect on the recorded music market.

(ST) RECOMMENDATIONS

Maintain the high level of service to dissuade customers from choosing to intake their music digitally (S1, S3, S4, T1, T2, T3)

(WT) RECOMMENDATIONS

Improve the instore interior atmosphere (W4, W8, T1, T2, T3)

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9.3 Text

9.3.1 Indirect Competitors

9.3.1.1 Relic Records

Relic Records website claims that they are part of the Leeds “vinyl triangle” along with Crash and Jumbo. Located on one of Leeds busiest streets opposite the Grand Theatre, Relics Records has been buying and selling vintage and collectors records since 1991.

The 1500sq ft store is packed with over 25,000 vinyl, 10,000 CD’s and 1,000 DVD’s. Relic Records also operates sales on Amazon and EBay, but do not have their own store on the website.

Relic’s difference in comparison to the other record stores is that all its products are rare and vintage second hand; unlike Crash and Jumbo who sell on the basis of new music releases.

9.3.1.2 Spotify

“Spotify Limited (Spotify or "the company"), launched in 2006, is a provider of digital music-streaming services, with a catalogue of approximately 20 million songs, which can be searched under a number of different terms.

The company allows on-demand access to music from various major record labels on a variety of devices including mobile phones, personal computers and tablets.

Spotify offers a free service supported by advertising and a premium subscription service, which removes advertisements and allows users to download music. Registered users are able to integrate their accounts with social media applications.

The company pays artists, via record companies’, royalties for all music streamed on the website.” (MarketLine advantage, 2014)

9.3.2 Store atmosphere, mood and purchasing behaviour (Spies, Hesse & Loesch, 1997)

“The effects of store characteristics on customers' mood, on their satisfaction, and on their purchasing behaviour are investigated. Two furniture stores differing with regard to their atmosphere, i.e. their condition, information rate and layout, were selected. Customers' mood – measured at the beginning, in the middle and at the end of their shopping – was shown to improve in the pleasant and to deteriorate in the less pleasant store. Satisfaction with the store was greater in the pleasant store. Regression analyses showed that this was due to a direct effect of store atmosphere as well as to an indirect effect mediated by customers' mood. Customers in the pleasant store spontaneously spent more money on articles they simply liked. This effect was only due to customers' mood.”

“There were, differences between the two stores with respect to store atmosphere, operationalized as the store's condition, its layout and the information rate. Store A had been renovated in 1992, i.e. one year before the investigation took place. The entrance area was wide and bright with plenty of natural light. The walls were painted in white and the lighting was well-planned. Store B, on the other hand, showed many signs of deterioration. Walls were painted in dim colours which, above all, made the ceilings look particularly low. Lighting, brightness, colours and height are considered to be important features creating store atmosphere (e.g. Buckley, 1987).”

“With respect to purchasing behavior, it could be shown that store atmosphere did not affect the total amount of money spent but only the amount of money spent for spontaneous purchases.

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Customers spent more money for spontaneous purchases in the pleasant compared to the less pleasant store. This is in accordance with Donovan and Rossiter (1982), Donovan et al. (1994)or Sherman and Smith (1987)who found that customers in a positive mood bought more items and spent more money than was originally planned. In the present study, the effect of store atmosphere was completely coupled with mood-effects, i.e. there was no specific effect of store atmosphere alone.” (Spies, Hesse & Loesch, 1997).

9.3.3 Second-Hand Goods

Between 2008 and 2012, the number of enterprises engaged in retail sale of second-hand goods in stores decreased by 5.4%, falling from 4,054 to 3,834.

The turnover of the sector reached £2.36bn in 2012, which is up by 17.6% from £2.01bn in 2008.

The sector’s gross value added is up by 23.5%, from £702m in 2008 to £867m in 2012.

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Total purchases made by the sector have risen by 7.3% between 2008 and 2012, from £1.24bn to £1.33bn.

Total acquisitions are up by 102.6% between 2008 and 2012, from £39m to £79m, while over the same period disposals are up by 45%, from £20m to £29m.

9.3.4 Customer reviews

Crash customer quotes “Crash is another of Leeds' great indie stores. As mentioned prior, they sell a large range of CDs, Vinyl, DVDs and other related items. The shop may be a bit of a squeeze but if you are a music lover that won't get in the way of raking through their stock.”

“As a store it's small but perfectly formed, floor to ceiling and all available space in between is filled with music in either vinyl or CD format… And whilst it's not as big as Jumbo Records, it offers mean competition.” (Yelp, 2014).

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