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MARKETING PLAN FOR A NEW ANDROID APP

LYRICK
Group No. 2 – SECTION B
K Srivastav – 18PGP081
Lekshmi D – 18PGP083
Lingala Raghunath Sai Sachin – 18PGP084
Manisha – 18PGP091
Manjiri Ajane – 18PGP092
Ravi Prakash – 18PGP120

1.0 Executive Summary


Streaming music is not a new phenomenon by any means. Since the early 2000’s people have been
streaming their music either from their phones, tablets or computers at mostly mp3 resolution either
at home or on the go. So whats new in streaming audio today? Probably the biggest advancement has
been the ability to stream higher quality music than before. Higher quality i.e. in terms of better music
streams from different streaming services and the applications on smart phones necessary to bring in
those streams.

The number of smart phone users are humungous with an increasing estimate of 2.5 billion users
in near future (2019). Out of them over 93% of the users listen to music.

We have for them the “LYRICK” Android application, which gives personalized lyrical audio
experience. It assembles all audio on phone (online music tracks, radio channels, podcasts at one
place and generates lyrics on your smartphone for whatever you listen to.

It’s LYRIC GENERATING TECHNOLOGY can provide lyrics for any:

1. Music track

2. Podcast

3. Live streaming

2.0 Situation Analysis

2.1 Market Summary


Lyrick possesses good information about the market and knows a great deal about the common
attributes of the most prized customer. This information will be leveraged to better understand
who is served, what their specific needs are, and how Lyrick can better communicate with them.
Target Markets
■ Recreational
■ Music Enthusiasts
■ Tech Savvy minds
2.1.1 Market Demographics
Geographics:
■ Lyrick has no set geographic target area. By leveraging the expansive reach of the Internet and
multiple delivery services, It can serve both domestic and international customers.
■ The total targeted population is entire smart phones users of US Market ~ 224 million users

Market Forecast:
In the U.S., digital revenue last year grew 15 percent to $6.5 billion, up from $5.65 billion the
year before. A good-sized portion of those revenues came from streaming music subscriptions,
which grew 63 percent from $2.5 billion in 2016 to $4 billion in 2017.
The U.S. has also become the most important streaming market worldwide, accounting for 40
percent of total global recorded music revenues. Thanks to the innovation and diversity of music
services available in the U.S., the report predicts that the number of paid music subscribers will
reach 90.1 million by 2025 — nearly double today’s number of $49.1 million.
Source for data: https://techcrunch.com/2018/04/23/43-of-music-revenues-came-from-
streaming-last-year/
IFPI Global Music Report 2016: Global music revenues increase 3.2% as digital revenues
overtake physical for the first time
IFPI Global Forecast 2017: 20.3% - Revenue growth. 30.6% - Streaming Growth.

Demographics:
• There is an almost equal ratio between male and female users.
• Ages 15–65, with 48% clustering around ages 23–34. The recreational users tend to cover
the widest age range, including young users through active adults.

2.1.2 Customer - NEEDS

Customers can view lyrics of songs which they already have, also online music tracks view lyrics for
radio broadcasts, online podcasts. The app assembles all audio (songs, pod-casts, radio broadcasts) at
one place for future listening satisfaction of the customer.

Customer – DISTINGUISHING CHARACTERISTICS


Our Customers are “ME – Time” Users and they enjoy music at their own personal spaces. They are
MUSIC LOVERS and they have high self-esteem about how they feel about the music that they listen
to. They have the desire & enthusiasm to sing.

2.1.3 Market trends


The music industry has changed. Nearly every rule has been broken or reinvented. Fans consume
music differently, and as a result artists get paid differently. The landscape of music industry has seen
generous changes when internet began to take over the music industry. It was in 2015 when we first
saw numbers changing significantly, with smartphones taking the lead and physical sales dropping
year after year. What this means is that music industry will continue take on its digital form in 2018.
The country recently surpassed the U.S. as the world’s second-largest smartphone market, which
is estimated to reach 450 million users by 2020. Moreover, with increase in the number of
smartphones manufactured domestically (augmented by Make in India), which has direct ties to music
streaming.
T-Series is a dedicated Indian music YouTube channel which has world’s 2nd largest subscription base
of 56 million subscribers. With this large amount of music consumers in India, we can see a continuous
growth in all the directions

2.1.4 Market Growth:

• Revenue in the Music Streaming segment amounts to US$11,439m in 2018.


• Revenue is expected to show an annual growth rate (CAGR 2018-2022) of 6.6%, resulting in a
market volume of US$14,786m by 2022.
• User penetration is 24.7% in 2018 and is expected to hit 26.6% by 2022.
• The average revenue per user (ARPU) currently amounts to US$9.02.
• In global comparison, most revenue is generated in in the United States (US$6,427m in 2018).
– statista.com

2.2 SWOT Analysis:


The following SWOT analysis captures the key strengths and weaknesses within the company and
describes the opportunities and threats facing Pegasus.

2.2.1 Strengths:
■ Knowledge and creativity
■ Innovation

2.2.2 Weaknesses:
■ The reliance on contributors for creating the database of lyrics
■ Proof reading of vast lyrics data with less available workforce

2.2.3 Opportunities:
■ Excellent User Interface
■ Expansion to Video service as well
■ Creating a huge database of lyrics
■ Expanding the services to other regional languages as well
■ Live audio streaming of different music concerts along with lyrics
■ Tie up with musicians, lyricists, speakers
■ Steady & Swift Market Penetration

2.2.4 Threats:
■ Stiff and severe competition from existing apps
■ Inefficient PR, Communication
■ Lyric generating Technology can be copied unless it is patented
■ Future/potential competition from an already established market participant
2.3 Competition:
Lyrick is the only brand of its kind. The few competitors are online free lyrics for song but the user has
to search and find the lyrics which is not practical always. Also, a product that can provide the
lyrics/words of podcast or radio broadcast on a real-time basis is not available in the market as of now.

2.4 Product Offering:


It’s LYRICK GENERATING TECHNOLOGY can provide lyrics for the following,

1.Music track
2.Podcast
3.Live streaming

2.5 Keys to Success:


The keys to success are designing and producing products that meet market demand. In addition,
Lyrick must ensure total customer satisfaction. It can achieve this by the following aspects,
▪ One stop place for all music lovers & karaoke enthusiasts
▪ Tie up with iTunes, Spotify, Pandora
▪ Employing top developers for future competence
▪ Eliminating the need of having different apps for different audio on smartphone
If these keys to success are achieved, it will become a profitable, sustainable company.

2.6 Critical Issues:


As a start-up business, Lyrick is still in the early stages. Therefore, the critical issues are:
■ Establish itself as the premier company.
■ Pursue controlled growth that dictates that payroll expenses will never exceed the revenue base.
This will help protect against recessions.
■ Constantly monitor customer satisfaction, ensuring that
the growth strategy will never compromise service and satisfaction levels

3.0 Marketing Strategy


The key to the marketing strategy is focusing on the speed, accuracy and reliability of the content.
Lyrick is able to address all of the different segments within the market because, although each
segment is distinct in terms of its content, its products are useful to all of the different segments.

3.1 Mission:
Lyrick’s mission is to provide the customer with the lyrics/words of all audio-songs, podcast and
radio. “We exist to attract and maintain customers. With a strict adherence to this maxim,
success will be ensured. Our services and products will exceed the expectations of the
customers.”
3.2 Marketing objectives:
As the upwardly mobile young audience has an incredibly high affinity with music and the joy it brings
to any occasion. Mobile applications, smartphone penetration and the propensity for the target
audience to download applications is a fit. LYRICK’s core audience is right within its target audience
age group and that is why LYRICK’s offers unmatched music lyrical experience, it differentiates high
end customers from low end customers.

3.3 Financial objectives:


LYRICK’s apart from being just a lyrics app offers value proposition to the collaborators as well like
increase in their share value compared to their competitors and more competency in terms of
technology. LYRICK’s got 10 million downloads in the first fiscal year. And as we know that major
revenue generating are the premium customers, the targeted conversion of free to premium
membership is 9%. And hence the targeted revenue is 3.6 million USD.

3.4 Target Markets:


We are focusing on people of age group of 15-45 years. Who are looking for the following features in
the app and who possess following characteristics:

• Customers can view the lyrics of the songs which they already have as well as for the music
tracks that are online.
• Customers can view the lyrics for all radio broadcasts, online podcasts, etc.
• They can enjoy a lovely feature of assembling all audios at one place (Songs, podcast, radio
broadcasts) for making their playlist more organized.
• The customers which we hope to cater are mostly “ME TIME” customers.
• They are self-esteemed people having immense music love.
• They have desire and enthusiasm for music and singing.

3.5 Positioning:

LYRICK’s app can be positioned as one stop solution for audio needs for people possessing passion for
music. It is increasing the accessibility of audio content. It is positioned as affordable & easy to use. It
can be accessed on any device so platform independency is it’s main USP.

4.0 Marketing Tactics


The objective of this marketing program is to position LYRICK as the premier lyrical android application
in every android device serving the domestic as well as the international market. The marketing
program will seek first to create customer awareness concerning the offered products and services
and then develop the customer base. Specifically, LYRICK’s marketing plan is composed of the
following approaches to product, pricing, distribution and communications.

4.1 Product:
According to local market research there is a demand for lyrical application for which patent is still
pending. LYRICK will provide free application features and a 3-week free trials for all the new
members. During the trial period audio assembling will be restricted to a maximum of 30 number and
access will be provided to only access music track lyrics.
Once the user subscribes for the premium services, all the premium application features will be
unlocked for him/her. They can now enjoy LYRICK with audio assembling of up to 500
songs/podcast/radiocast per month. Access of lyrics to all audio on phone will also be streaming
online. Premium user will have option of enjoying Karaoke too.

4.2 Pricing:
The premium version of the application would be priced at 3.99 USD for a monthly subscription.
Because of the advantages of selling directly, higher margins can be achieved with premium pricing,
that will still be appealing to customer segments.

4.3 Distribution:
LYRICK will be majorly available on Google Play Store. In addition to this it will be also available on
other major stores like Windows and iOS store in near future. Provision for Distribution on Getjar,
amazon application store and opera mobile store is also in progress.

4.4 Communications:
The message that LYRICK will seek to communicate is that it offers the best designed, most useful and
user-friendly lyrical experience. This message will be communicated through variety of methods. Basic
promotion will be done by the initial customers only by word of mouth. Post that, LYRICK website will
provide a rich source of product information and offer consumers the link to Google Play Store for
premium version purchase. Website will be designed in such a way that it will imbibe the perception
of professionalism among customers. LYRICK will also be reaching among the customers via social
media platforms such as YouTube, Facebook, Orkut, WhatsApp and telegram.

The leading glossy gadgets magazines will also be including LYRICK’s advertisements to promote it.
Entrepreneurial events have also been planned for additional coverage of the android application.

5.0 Controls
To guide the organisation to reach out to the masses is the prime purpose of the marketing
programme. Factors taken into consideration while implementing the same is as mentioned
below-
■ While implanting any marketing programme the key factor we considered is the
‘Revenue’ generated. On basis of the same the budget is decided for any marketing
programme.

■ The product should generate a sense of ‘Customer Satisfaction’.

■ The recreational activities like updating the product features to reposition the product.
5.1 Implementation:

The distinctive marketing programs taken into consideration with respect to time and budget

TABLE 5.1 Milestones

Marketing Plan

Milestones Start Date End Date Budget Manager Department

Marketing sketch (revenue 1/1/18 2/1/18 $ 0 Manisha Marketing


&expenses)
Application feedback 1/1/18 3/15/18 $20,400 Srivastav & Ravi Marketing
(consumer satisfaction)
Advertising campaign –e
advertisements (through 1/1/18 6/30/18 $ 3,500 Sachin Marketing
television, radio)
Advertising campaign (through 3/1/18 12/30/18 $ 4,550 Lekshmi Marketing
newspaper, magazines)
Totals $28,450

5.2 Contingency Planning:


Difficulties and Risks
• Internet penetration – being an online product the major difficulty is of availability
and accessibility of internet.
• There are various upcoming rivals in the market, thus dealing with the competitors is
of major deal.
• The product can be easily pirated.