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Unit 1 exploring a business this gives you the information you need for this assignment...

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Wax Perfection – Research Background This marketing campaign is going to be based on Vinyl records (Independent record store in Bristol) and the promotion of these vinyl to increase sales. Wax Perfection is a record shop in the local town which sells mainly new vinyl albums therefore, this rationale is for them which will include the marketing aims and objectives, competition, target market and many other factors which will help to increase awareness of Wax Perfections existing record shop. Some of these products include new albums on other formats such as CD, USB and cassette, can hand albums on a range of formats, related goods such as T-shirts, posters, record players, vinyl record cleaning products and toys. WAX perfection unique selling point is that they arrange for regular bands to come into the store for singing performances which attracts a large number of shoppers Aims and objectives- 1. To attract more potential customers by 30% by the end of 20201. 2. Increase brand awareness by 20% within the year 3. To increase sales by 15% within a year Objectives are important because they motivate us to work toward a marketing goal of attracting more customers by measuring it by the number of people in the store. A 30 percent increase is a reasonable percentage increase to achieve within a year, especially considering the vinyl record industry is growing every year and grew from £5 million to £20 million from 2010 to 2015, a £15 million increase. Getting influencers to show your art or other products since they have an established audience that knows and trusts them can broaden and enhance people's knowledge of the product once they mention it which increases awareness. They have to Increased their customer base so therefore will help the business to achieve the overall marketing and the reason that this is the lowest percentage to reach is because it is one thing to attract more customers to the store but not everyone who visit your store will buy something. S – Specific M – miserable A – achievable R– realistic T- timebound Target Market Wax perfection organises regular singing by bands and arrange short acoustics stop these events attract many potential customers to the shop many of them whom have never visited before. In addition, they also take part in an annual record store day seven exclusive records products by a range of art is. The largest segment in the final customers is eight between 45–54 bracket9 (29% of the market), and most vinyl record customers are male (61% of the market). Most vinyl records are old and classic songs. Another factor is young people increasingly embracing the buying of these records with most of the people undertaking to buy most of the albums from their favourite musicians. This market is seasonal as the winter holiday season is amounts to 25% of the yearly with vinyl sales. Competition Sales of vinyl records passed one million units a year in 2014 for the first time since 1996. The average price for a vinyl album is £20, considerably more than the price of the same album as a digital download. Special edition vinyl albums featuring extra items such as posters or codes to download additional songs can cost significantly more. When Pink Floyd ‘The Wall’ was reissued as a double vinyl album with a poster and a download code it sold for £38. In terms of retail distribution, around 8% of vinyl sales in the UK were made by supermarkets in 2017, with Sainsbury's having the largest market share (8% of vinyl sales). Sainsbury's sells a limited range of vinyl records in over 600 stores. On the other hand, streaming services now offer a wide range of music, which can cater for all, these music services also offer memberships an affordable price and therefore the digital streaming services can overtake sales of vinyl records, such as Tesco, Apple Music, Spotify etc which there is another type of competitor. The global vinyl records market is highly concentrated due to the presence of few manufacturers in the market. The rapidly changing consumer requirements have pushed vendors to focus on coming up with innovative products frequently. Competition in the market is expected to intensify in the coming years with the introduction of new technologies, various start-ups coming up, and the online trend. The growing popularity among the youth and more celebrity releases in vinyl records format will play a key role in the growth of the market over the next few years.

Market size The UK recorded music industry had a total value (revenue) of £839.4 million in 2017. This represented an increase of 10.6% on 2016. This total market size of £839.4 million, digital sales (downloads and music streaming) accounted for £506.2m million (60%) of industry sales. The Physical sales (CDs and Vinyl) generated industry revenues of £310.5 million in 2017, a small rise of 2.4% on 2016. Physical music sales have declined significantly in recent years, in 2008, physical music sales were £758 million. Furthermore, the large fall in physical music sales is entirely due to the reduced popularity of the CD format. As the chart below shows, volume sales of vinyl records reached 4.1 million units in 2017, the 10th consecutive year in which vinyl sales have grown, albeit from a low base. By contrast, sales of CDs have continued to fall in recent years as music consumers have migrated to digital formats and music streaming services. Adding to this, in the UK, vinyl albums account for less than 6% of album sales, although it is the fastest growing segment of the market. In 2014, Pink Floyds ‘The Endless River’ became the fastest selling vinyl album since 1996, despite selling only 6000 copies during that year. Vinyl has become a niche product, nonetheless, a luxury one, due to the price and low availability for certain artists and genres.

Trends Overall, despite Covid-19, through mid-August, 11.5 million vinyl records were sold in 2020, compared to 9.9 million over that period in 2019, a 17% jump. In August, sales nearly doubled last year's number. In 2017, the music business generated £839 million in income. With a 10.6% rise over the previous year, digital sales, downloads, and streaming accounted for 60% of total sales. Physical sales accounted for the remaining 40%, bringing in roughly £310 million in 2017. As a result, buyers are conditioned to regard vinyl records as a rare and valuable product. Another cause for concern in terms of vinyl record market trends is that record companies, as well as shops such as HMV and huge supermarkets, have begun to promote various artists and their vinyl. Wax Perfection's promotional efforts include "Record Store Day," an annual event in which only exclusive vinyl albums are available for purchase. However, as more modern and compact CDs were launched in the 1970s, fewer artists have quit vinyl. CDs cheaper, arguably more durable, and have a lower danger of being damaged, provided they are used properly.

Pestle analysis Political 

Politics may soon impact the vinyl industry, particularly UK politics. Vinyl is created in pressing plans, and many of these plants are located across Europe. At the moment, the vinyl manufacturing is suffering from a bottleneck problem.

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Brexit.

Economic 

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Vinyl isn’t cheap, in fact, the price has risen over the last decade. In the United States, over 14 million records were sold in 2017, which is fourteen times more than in 2005. Back then, the cost per record is around £15-£25. Now, each one goes for £30-£40. No one is sure why the prices are higher now, although the big music corporations likely do but are staying silent. With millions of units sold per year, Warner Music, Sony Music, and Universal Music (and their American counterparts) are raising prices of LPs to fit demand. However, even this boom might not save the industry. On top of that, these price hikes aren’t benefiting artists, most see little profit, if any. If the companies can figure out how to make a profit of the physical sales, then the industry will flourish. Until then, although popular, success will remain limited. What’s even worse is that many vinyl shoppers are buying from second-hand shops. You can find new editions of old classics on Amazon, but it’ll likely cost you 50% than if you bought at a thrift shop. Most people buy vintage products at thrift shops, so vinyl fit right in.

Social 

Many people prefer to use CDS or streaming services instead of vinyl

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vinyl have slowly risen in popularity over the last ten years. Why? Well, older folks are buying them again to revisit their youth.

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Millennials are buying them because it’s a fun blast from the past. They also enjoy collecting vinyl for the interesting cover arts. Despite the differing reasons, both groups are benefiting from nostalgia. Thanks to that, there’s no sign of this industry slowing down quite yet either.

Technological 

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vinyl are created in pressing plants. These plants often use aging machines with complex infrastructure. Since they’re not broken, most equipment hasn’t been updated in decades. But now vinyl demand is growing, corporations realize the old technology can’t keep up. The problem is clear, so some companies are stepping up to fill the need. They’re upgrading the machines to be more efficient. Initially, the changes were minimal. Now, a company called Vinyl Technologies Inc. has developed brand new machines, some of which can be fully automated and monitored remotely via a mobile device. I f these machines have a problem, the support teams can remotely log into the system and fix it from afar. Now, there’s a newer version that’s seamless, which alleviates much of the cost associated with running the machines. Bonus: it’s better for the environment too.

Legal 

One major concern with using vinyl is digitizing them. In some countries, digitizing your collection won’t infringe on copyright laws so long as you’re doing it for personal use. But many people are digitizing and breaking digital locks to sell them to other people online. That’s illegal, but it hasn’t stopped people from trying.

Environmental 

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some companies are adopting eco-friendlier technologies to create vinyl, but many are still using the old machines. These old machines incorporate harmful materials into vinyl, which can harm the environment. The environmental worry is in the production. Vinyl contains the ingredient PVC. It’s cheap and durable, but PVC is the by-product of fossil fuels, which can have heavy metals. These heavy metals prevent PVC from degrading. Unfortunately, most

LPs are likely to contain lead, which is toxic to humans. So, not only are these materials bad for the planet, but they’re also harmful to our health, particularly, the health of factory workers involved in the LP pressing process. To avoid all of this, the manufacturing companies need to use an eco-friendly process as soon as possible.

Swot analysis Strength- 1. vinyl record market is current on the up and is a continued growth. Sales of vinyl record reached 4.1 million units in 2017, the 10th consecutive year in with the final sales have grown. This shows that vinyl record market is growing every year and works profession can take advantage of this sells a variety of vinyl records and associated products. 2.Organise regular singing by bands . 3. Take part in the record store day every year and sells exclusive records. 4. Offers a record of the month club which is a pay subscription of £35. 5. Experienced staff. 6. Online store Weakness- 1. Global organisations taking dominance in the sales of vinyl records and associated products and therefore could be taking business away from wax perfection because they are not currently at the same level of big brands e.g., Amazon. Opportunity- 1. continually sign new musicians and musical groups in order to expand their intellectual property library. Record labels can also acquire musical acts from other companies that have already signed talent. However, this can only occur once a record label is established and willing to place a large amount of capital behind the signed artist. 2.Investors, once these types of businesses are established, are generally willing to place capital in order to increase revenues. It is very difficult to obtain a bank loan for a new record label. Threats – 1. Digital music, major technological advances have occurred that help record labels and related companies maintain protection for their produced content. 2.The continued growth of technology, internet, and illegal downloads is also a threat....