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... king in two different markets: 1. Independent Vinyl/CD Pressing 2. Independent Music Distribution The vinyl/CD pressing market is beginning to grow due to the proliferation of home recording equipment. The UK garage scene has championed these technologies and many projects released today haven't been through professional or even semi-professional studios. This accessibility of equipment has lead to more and more new UK garage artists coming out and releasing songs on 'white label', consequently the demand for more small-medium sized pressing houses has increased and the market is showing promising signs of reaching financial stability.
The music distribution market is a much less visible market than vinyl/CD pressing as it goes on in the background of the music industry. Independent distributors are being increasingly used by major record labels looking to cut costs, with some labels closing their own pressing houses as they prove to be financially non-viable. However, due to the time and effort necessary to create distribution networks there has not been an abundance of new companies / businesses setting up. Analysis Of Market Into Sectors; Identification Of Sector Business Is Aimed At: Our business is aimed at both the commercial and consumer sectors. Likely Customers; Who Are They, Type, Size, How They Buy: We have identified three main groups of prospective customers: 1. Unsigned Artists/Groups: These will be looking to press: a.
Small runs to market themselves to A& R's, Producers, Publishers and Record Companies. b. Small-Medium sized runs to distribute and sell singles and EP's. 2. Producers: these will be looking at small runs to distribute their own songs as well as productions for other artists, to Record Labels, DJ's and prospective artists. 3. Small Independent Record Labels: these will be looking to press medium-large sized runs to distribute and promote their artists.
We feel that managing pressing and distribution for record companies will be where the majority of our income will come from as links are made and cemented, independent labels will keep coming back to us again and again. As well as purchasing larger runs, labels will also be paying for CD inlays and covers, which will help our ties with the pressing house / es . Unfortunately links with small labels may not be possible from the outset as these labels will be looking for a track record on our part that we can fulfil what we set out to do. With this in mind, we will be looking for more one-off jobs from artist and producers during the first six months of operation. Once we can show small record labels the quality of our service and the distribution network we have, we will begin to actively approach labels with sales pitches. We hope to secure pressing & distribution contracts with approximately 3 - 4 labels within the first two years of operation.
This will provide us with the financial standing point to begin to look at expansion. Selling: Promotion & Advertising Our promotion strategy will work on five fronts: 1) Blue label. com - The companies website will feature information on the business, summaries of price plans, contact information, snippets of songs we " ve handled and mailing list information for DJ's to sign up to. The layout of the site will be smart and sophisticated, whilst maintaining an attraction to a younger audience. 2) Business cards & flyers in independent record shops - These are targeted directly at DJ's as many of them work closely with unsigned talent.
The design of the flyers and cards will be in the same vein as the website, combining sophistication and an 'urban' edge. 3) Adverts in 'urban' magazines and newspapers - Adverts in publications like The Voice, New Nation, Re-Wind, Etc will help raise the profile of the business within the 'urban' community. 4) Prize winners from talent contests / showcases - "The winners will receive a free run of 250 12 " from Blue Label. " Instances like this will hopefully put our name in the minds of all the acts at the events. 5) Word of mouth within the hip hop, garage, R& B & drum-n-bass communities - We feel that once our name gets out in these area's, news will spread quickly. Who Will Sell? There will be no designated sales team within the business during the early stages of the business. Early on, when business is slow, we plan to go out to talent shows, showcases, club nights and parties, actively pushing the service, handing out flyers and business cards to performers and DJ's.
After the first 6 - 12 months, we hope to begin actively seeking contracts from independent labels, as to handling their pressing and distribution. This will be handled by myself, or the other Fixer, and / or by a new member of staff in the position of marketing manager. He / she will also oversee the layout and structure of the companies website. If a marketing manager is not employed, the website will be designed by our in-house designer / technician , but with input and advice from all members of the team, acting as a combined design team. The website will hopefully provide the information and attraction for potential customers. Pricing Structure (Cost Vs.
Differentiation) The pricing structure we provide for our clients will be directly proportional to the price plan of our out-sourced pressing house. They provide many different options as to size of run, format, packaging, labelling, cover art, etc. These options will be made available to our clients when they attend their consultation with our Personal Sales Executive. Operational Details Where Based, Location: Our base of operations will be located in South or East London, typical sites in these areas should be cheaper to rent and will also be well located for artists / producers /labels to reach. We hope to increase our approachability by working out of a retail site on a main road as opposed to being hidden away in an industrial park or office block. The majority of independent labels and studios are based in West London, so we feel that there is a market for people looking for our type of service, on their doorstep.
Over time we hope to raise Blue Label's profile to the point where we can attract business from across the whole of London. Suppliers: PC World Business will supply all necessary office equipment including office furniture as well as computer equipment. PC World Business have rates and deals for new businesses and if we purchase before 31 st March 2004, we can get a 100 % tax break on all I. T. and communications equipment. Initial Equipment Needed: ICT Equipment: 1 server / webserver with monitor = lb 750 2 PC's with Monitors = lb 1150 1 Network Kit (1 Switch, 3 Network Cards, Necessary Cables) = lb 130 1 Printer/Scanner/Photocopier = lb 250 3 licenses for Windows Office XP Professional Edition = lb 1000 3 landline phones = lb 230 1 mobile phone = lb 250 Total = lb 3760 Office Equipment/Furniture: 3 desks = lb 300 3 wheelie chairs = lb 90 5 visitor seats = lb 150 2 filing cabinets = lb 55 1 Stereo System = lb 250 Total = lb 845 Office Supplies Letter headed paper = lb 40 Stationary = lb 60 Total = lb 100 Financial Analysis Monthly Profit/Loss 2 yrs: Monthly Cashflow Forecast For 2 yrs: Balance Sheet Forecast For 2 yrs: (Please see attached charts) The Assumptions Behind Your Forecasts: SS All cash from sales during the first 6 months refers to clients purchasing runs of one specific size and format.
Due to the number of variables available, this has been done to reduce confusion. There is a gradual increase in the number of clients from Jan- 04 to Mar- 04 to represent a realistic situation. SS All cash from sales in the 2 nd 6 months of 2004 include record label purchases as well as artists and producers. SS A second Physical Distributor is hired at the beginning of 2005. Principle Risks Which Could Affect Figures, Things Beyond Your Control: SS Rent increase due to possible property market booms. SS Pregnancies within the workforce, leading to maternity pay as well as paying for temporary replacement.
Prospects Objectives - Short & Medium Term: 0 - 6 months: Spreading the companies name within the 'urban' community and seeking work from individual artists and producers. 6 - 12 months: Begin approaching labels with regard to managing their pressing and distribution, whilst still maintaining a steady flow of 'one-off' jobs from artists and producers. 1 - 2 years: Establish contracts with various labels and start to lay the financial groundwork for future expansion. Look into possible employment of extra staff in the Physical Distribution and Fixer positions. 2 - 5 years: Look into expansion options including; taking over the main pressing house we use; on-line sales and promotion; expansion to a national distribution level; development of Blue Label into an independent label in it's own right. The Finance Needed & What It Is For: We are looking for a loan of lb 40, 000 repayable over 5 years. This will cover the start-up costs and also cover for a possible slow start during the first 2 - 3 months of operation. The start-up costs will include solicitor's fees for the checking of our contracts and to oversee the leasehold. It will also include the purchasing of our domain name.
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Research essay sample on Record Labels Medium Sized
