Reed E-

marketing strategy TEAM MEMBERS

Vicente Garcia RuizKyriakoulakou Ioulia Zoi

Lea ReginaultRafa Pedrero Caballero

Elene Fgl

THE COMPANY

- 1987: Buisness of tonearms started in Litunania. Vidmandas Triukas was the designer and owner of the company.

- 2007: Truikas launched the frist series of Tonearms branded Reed

Product:

Reed is producing Gramophones of high quality

Reed is also working in Europe and some outside countries as Turkey, China …

Target Market : United Kingdom

The main function: playing vinyl’s, so we targeted UK market as it remains the country of music. 2,1 millions of vinyls purchased in UK, sales climb 6,4% to 21-year high.

The overall music consumption in UK is about 121,6 millions albums-purchased.

UK is a country with a high standard of living (the fourth highest in European union)..

In 2015 UK consumer’s purchasing power at its strongest in 6 years.

Customers: Higher class people who want exclusive products, passionate people.

Tonearms should focus on Boomers II, X generation and part of Y generation.

E-Commerce in UK

- 59,333,154; Internet users- 79,31 %; penetration rate- 236,230,000; Facebook users- 1174£; internet sales per shopper- 60,25 billions £; 2015 internet sales in UK

Objectives ●Conversion

●Acquisition cost

●Target group reach

●Average subscription size

●Satisfaction

●Profit

Brand positionning - Niche market because no one sell this kind of advance device in UK

- Can be used by professional as well as passionate( Three ranges of product)

- Moreover the target market will be the range of 25-35 years old who seems to be the range of music amator and professional

- The research made in the sound field is so high that reed received award : Reed 3P awarded by Japan's Analog magazine.

- By going further into the website we can see that reed as already a retailer and distributor to sell his product in the uk (abbington music research) so we need to focus on the e-commerce , adversitising and infasize the awards .

SWOT analysis:

Strengths :

High quality of the product

Advanced technology

Big Company with experience, market power, many distinctions (high quality sound award in 2012, desing award 2013, etc.)

100,000€ to invest in marketing

Weaknesses :● Expensive product● Small target group (rich

people who wants an exclusive product or experts who wants an exclusive quality)

● Many competitors● No vinyls -> no need for a

gramophone

Opportunities :

●UK, our target market is the 3 on the top 10 markets per vinyls sales in 2014.

●UK is the 13º richest- countrie in the world in terms of GPD per capita and, 65% of consumers shop in the web.

●*Future product development (Reed is working in Reed 4P, it will replace the current Reed 3P).

Threats :

● New products and strong brands in the market of the music that can replace a gramophone. (Beats Electronics)

The kinds of factors associated with the politic class that can contribute to our activity.

●Economics grants from the government for new investors.

●Changes in the politics of the new country, fiscal, economic, law…

Political :

Economical: We have to think about the current and future economic factors in the countries where we are going to work.

●Economic policies of the government

●The income level of the targeted segment

●The level of inflation to define our economics objectives.

●The unemployment rate, we should check how big is this rate in UK market to guarantee if it would be profitable invested on it.

Social: How the elements of that society can affect our project.

●Changes in the customer preferences. As we know, a gramophone is an old product that has new competitors more updated.

●Changes in the income level, if it follows a constant process or maybe it has a lot of fluctuations that can affect to our product.

●Changes in the mind-set of the population. In a population where the majority of the people are young, where they are get used to use just new and technological products our will not be accepted for them.

Technological:Our aim is not the technological change, is how fast it changes in our market.

●Are we able to join to the current technological system?

● Use of internet (Create a web page; sell the products on the web…)

● We have to be ready to the new technological tools than can appear in the market, if we want to be competitive we have to be updated.

Environmental:

●Ecological taxes or fees

● Accomplish the ecological regulations in order to transport of our products.

●Climate change.

LegalLegal: All of these factors associated to the different changes in legal range that can contribute in a positive or negative way to our aim.

● Licence.

●Human resource law

●Different sectors.

Suggestions:Consumer lifestyle:

The top 5 consumer trends are:

1. the “generation rent”2. silver surfers,3. webrooming,4. convenience shopping5. ethical consumption

Considering the price of REED product really high , it’s better to focus on young adults and middle youth because in these age categories, people have their own money and they love to purchase fashionable and unique products .

Young adults:

they are influenced by Youtube celebrities and they seek transparency and authenticity. The young British Adults use to purchase online using their Smartphones.

Middle youth:

seek out apps in order to improve health and fitness. They also join the app Tinder increasingly.

We want to focus on Facebook and Twitter because both of the platforms concentrate the highest percentages of active users (43% of fb users and 19% Twitter users are active) .

●Firstly, willing to profit from the success of Youtube channels among the young adults in UK and the “generation rent” , we suggest Reed Company cooperate with airbnb company and create an attractive event which they will record it and upload it on official social media of Reed Company & Airbnb.

●Secondly, we propose to organize a song competition via social media. The participants have to send a cover music video and the Company will transfer this piece of music into the reed gramophone so as to prove the better sound quality of its products. The Reed Company will upload these videos on fb, twitter and youtube and the fans will vote the best cover music video via Reed Gramophone. The winner will win one Reed 3P.

●In the end, the Reed Company can offer some discounts during the week before the Brit music Awards. Brit Awards is the biggest music event in UK.

Budget & Timelines

Tonearms Reed 3P

THANKS !!