Case Analysis: Napster
DXL Product- Legal Music Downloads with the following benefits: Ii Downloads (Legal rights to 500,000 songs) Music 01 CD Burning View Music Videos Access Billboard Chart Information Synchronize music to other devices Message Boards Detailed Artist and Album Information Parental Controls Powerful Recommendation Engine Personal Infixes for Music and Messages* Ability to Browse Other Users Music Collections* Search Engines by Genre, Artist, Track Title, or Popularity Did Complimentary products such as digital recording media, CDC and MPH players Ii Ability to SendMusic to Friends within or outside the service* Ii Access to Professionally Programmed Radio Stations* OX pence- ii $.
0. 99/ song ii $9. 95/ album 01 Premium service $9. 95 (includes all (9 products above) OX Promotion- Ii Promote through partnerships with Microsoft, Gateway, Yahoo and Samsung Ii Partnerships with XML Satellite Radio, Tower Records in Japan, a marketing agreement with Bluebells Corp.. Of Atlanta Did Possible partnership to roll with cell phones on ELM Ericson of Stockholm Gift cards are available at various retail stores throughout music areas as well as mint of purchase Ii Linked directly through Yahoo! Y use of banners, search engines and e-mail Ii Anapest soft ware is preloaded on all Microsoft computers they hold 80% of the operating system market) Ii Samsung offers a digital audio player that is fully integrated with Anapest 2. 0 2) STOW Analysts Strengths Provides a legal alternative to music downloads Supporting the individual artist as well as the music industry through agreements Ninth the 5 major recording labels Strong brand name rand reputation Alliances with industry leaders such as Gateway, Microsoft, Yahoo! Samsung Weaknesses Lack off linkable device to transfer music to (I.
. Tunes has the pod) Digital copies are not real copies Limited avenues for product differentiation Perception of selling tout” to the industry Opportunities Massive market growth ARIA crackdown on illegal file sharing Threats The availability of free downloads on various websites Advancements in technology 3) Decision Statement Through a new advertising program, we hope to recapture our initial customer base and attract new customers in order to significantly increase our market share while citing in a legal manner. 4) Alternative Solutions . Go out of business.Abandon file sharing. B. Continue business as is with no changes being made to their current strategy.
C. Anapest could offer a loyalty or frequent downloaded program for current customers along with previous customers. This will help regain Anapests:s previous market share along with retaining their current market share. En do not recommend changing the price per download, currently ‘tunes is an industry leader that is charging the same prices. This price is a current industry tankard and to remain competitive we do not feel a price change is necessary.En feel that adapting to current market trends by offering customers added benefits Mould be the best move for Anapest. We also feel that Anapest can change its marketing strategies to better capture market share.
Rhea following suggestions are what we feel Anapest should do to recapture, gain & sustain their market share: 381 Through advertising efforts, Anapest should promote that they support the individual artists to sustain the future of the music industry. Show artists united Ninth Anapests brand in advertising efforts.Anapest should offer a frequent buyer/loyalty program to aid in customer retention. Offer monthly specials such as being able to download certain amount of songs at a monthly recurring price. Compete with competitors like Tunes by offering weekly e-mail specials for a free music download (or other desired promotional activity). We feel Anapest should aim to regain some of its former market share but not expect to get 100% back. Raking into account that Anapest is now a fee based company versus a free download many.
UPDATE on Anapest 2. At the end of the fiscal 2007 year, Anapest CEO, Chris Grog concluded that Anapest Nas the osmosis popular on-demand music subscription service with healthy annual revenue growth and a significant decline in cash burn. I” The company is remaining focused on bottom-line improvement and to continue surging forward capitalizing on their strong market share position. Org believes that the new era of music-enabled cell phones will be a substantial contributor to Anapests future growth based on their partnerships with the leading airless carriers and handset manufacturers worldwide. ” At the end of March 31, 2007, Anapests total worldwide subscriber base was 830,000. The number of paid subscribers Jumped 47 percent from the third to fourth quarter in 2007 and 37 percent year over year. At the time the time the case study was done in our book, Anapest offered 500,000 songs with major record label approval.
At this current time, Anapest now offers over four million songs. Norms Cited Farrell, O. C.. Marketing Strategy. 3rd. Ohio: South-Western, 2005.
Newswire US/Lexis Nexus. 30 Jan 2008 .