MKT 3300-003Professor SoysalGroup 8:
Amanda BuhrkuhlAshleigh LoftonBrittany WallDavid BoothRoyce WidjajaSigourney Rivas
Challenge
• Pandora has a large industry market share• However, there are many competitors:
◦ Spotify◦ iHeart Radio◦ iTunes Radio
• Pandora must find a way to differentiate themselves to remain the industry’s leader
Company
Pandora Radio: Free internet radio service A strong brand trademark since 2000 It is most popular with 18-34 years old Accessible on over hundreds of devices & cars Manage hundreds of stations based on artist, songs, & genres Songs are individually analyzed by paid musical experts 95% of its songs are played monthly
http://www.pandora.com/advertise
Pandora’s Users: 71M active users 2.7M subscribers 125M U.S registered users 75M International registered users 1.5B monthly listeners hours
Feedbacks left by registered users:
Company
Market Shares (2013): 70% market share It’s stock value has tripled $5 billion dollar stock market value Has 28 major markets 427.1M revenue 260M mobile revenue
Goals: Improving its usage Increase long term users
Company
Strengths: Skip forward & backward 6 months free trial Easy connection with Facebook Simple music library Usable without internet
Strengths: Free Real-time feedback 15M songs Connected with xbox360 & GoogleTV
Strengths: Free or $24.99 annually Most valuable brand in the world Partner with major ads deals; PepsiCo,
McDonalds, Procter & Gamble. "Buy" button
Weaknesses: Low awareness Highest cost $4.99/month on desktops & laptops $9.99/month on all devices
Weaknesses: Clutter & complicate usage Lots of songs, but all of them are from
the same 400,000 artists Huge amount of ads
Weaknesses: Apple users are used to using Pandora Doesn't allow monthly payment Available only on iPhone, iPad, iPod
Touch, Macs, Mac Pc, Apple TV.
Market Shares: 18.7% market share Revenue: $99M 2.5M paying subscribers 20M active users
Market Shares: 11.4% market share Revenue: $480M 60M active users 30M registered users
Market Shares: 75% share of worldwide digital music Revenue: Unknown Subscribers: Unknown
Competitors
Customer
• 70.9 million active listeners• Minors, young adults, adults, seniors• Diverse group of people• Pandora listeners are divided by:
◦ Music preference◦ Ease of use◦ Ad free
Context
• Political & Legal Environment◦ Copy Right Act of 1976◦ Pandora pays royalty fees
• Economic Environment◦ Pandora charges $36.99 per year/$3.99 per month
• Social and Cultural Environment• Technological Environment
◦ 1 million songs◦ High royalty fees
SWOT AnalysisStrengths:
Accessible from all Apple products, Androids, Blackberries, Windows Phone, all tablets & computers, some cars & other 100+ devices
Have over 71million active listeners Song has been specialized by music experts Best customize music experience. "Human
Touch" 95% of its songs are played monthly $5 billion dollar stock market value
Weaknesses:
Free only up to 40 hours monthly Can't download or purchase songs Higher cost compared to competitors Does not advertise itself Less partnerships than competitors Only available in U.S, Australia, & New Zealand
Opportunities: Matching price with iTunes Radio: $24.99 Partnership with more car companies Connecting with social medias for easier access
with a free three months trial; Facebook Partnering up with all HTC smart phones Having a "Juice Box" at restaurants. Partner with Gyms; preferable songs for
athletics Merging with Windows computers Allowing users to skip tracks & adding more
songs
Threats:
Pays higher royalty fees than traditional radio It's competitors have a lot more songs Growing market creates increased competition It's competitors merging with large major ads
deals Local radio Spotify iHeart Radio iTunes Radio
Demographics SegmentationAge Group Estimated Price
SensitivityNeeds & Wants
Usage Best Ways To Reach
UsersAges 13-17 22% High Simple,
entertainingSmart phones, tablets
Social media, TV ads
Ages 18-34 45% Moderate Wide range music, accessible
Smart phones, tablets, computer, cars
Social media, radio stations, TV ads, billboards
Ages 35-49 20% Low Wide range music, simple
Smart phones, cars, computers
Social media, radio stations, TV ads, billboards
Ages 50 & up 13% High Accessible, specific selection, simple
Computers TV ads, billboards, print ads
Targeting
• Target Market: Ages 18-34 in the U.S.
• 45% of Pandora listeners (highest of all segments)
• Focus must remain on this target market, cannot risk losing to competitors
• Single Target Market Approach
Positioning
“For people between the ages of 18-34 who value the art of music, Pandora is the leading
Internet Radio that is committed to delivering an incredible music experience that YOU love.”
Positioning
• Most interactive radio • Partnering with various companies in different
industries: ◦ Instant access on cars◦ Android based smart phones◦ Windows computers◦ Local gyms & restaurants
Product & Price• Product
◦ Allows up to 100 stations◦ Easily accessed (mobile devices, tablets, cars, computers)◦ Broaden Pandora Services: social media & more car models
• Price◦ Free service & paid subscription ◦ Promotional discounts with social media partners
Promotion & Place
• Promotion◦ Social media sites◦ Various makes and models of vehicles
• Place◦ 3 countries: U.S., Australia, New Zealand ◦ Distribution channel: direct◦ Pandora is currently available on: mobile devices, tablets, computers, 100 vehicles, TVs, Blu-ray, home theatres
Conclusion
• Pandora will target the largest user base: ages 18-34
• Implement changes: ◦ Discounts for ad free listening◦ Accessible on wide range of devices◦ Ease of use
• Results: ◦ Increased revenues◦ Future profits◦ Solidify Pandora as leading Internet radio
Questions