Executive Summary
Transcript: Cultural, Societal, and Demographic Trends Luckily, Pandora has the ability to combat the issue of Italy's declining economy due to its accessibility as: A free app which can be easily downloaded to a multitude of platforms, including computers, smartphones, and tablets. Users have the freedom to log on/off of their individual online account when not in use (which is helpful for those using a public networks and computers) Executive Summary Opportunities Obstacles After working on this project we found that bringing Pandora to Italy is going to be very difficult due to government regulations, prices of music royalties are high, close competition with iTunes Radio and Spotify, and Italy, itself is in a severe recession. We believe that if Pandora came to Italy it would eventually succeed, it would just take time to enter into the market and make themselves known. What We Learned Strengths Recent increase in smart phones MGP (Music Genome Project) Wireless internet has become more accessible for computers and smartphones Laptop ownership has become more common SWOT Analysis Italian government Licensing rights Royalty costs Time Other music competitors from Italy who also offer an app format PROs like ASCAP, BMI, and SESAC performance-rights organizations Industry Situation Guerrilla Marketing Marketing Implementation Marketing Goals and Objectives Our goal is to bring Pandora to Italy, and give people the music that they will love. We want to allow people the freedom of listening to any music they want if they just select the station or genre of music. Our main objective to introduce Pandora to Europe starting with Italy. After Pandora is in Italy, it will begin to expand to the surrounding places through word of mouth, and other guerrilla marketing strategies. iTunes Radio allows users to create and customize individual stations 250 DJ-curated and genre-focused stations Like and dislike buttons help tailor playlists to the listener's specific taste and mood ("Play More Like This" or "Never Play This Song") Available formats include: iPhone, iPad, iPod touch, Mac, PC, and Apple TV Not available on Android or Google platforms Access to thousands of new songs every week. Easily share stations via AirDrop, iMail, iMessage, Twitter, and Facebook Friends can listen to music that adjusts to their evolving tastes Available in Europe The Music Genome Project Stocks: Pandora Media Inc. (P) The younger population is responsible for much of the recent advancements in technology, due to their earlier exposure. Because of the poor fertility rate in Europe, and Italy in particular, we are seeing a decline in this portion of their economy making it a possible threat toward our goal of bringing Pandora to this country. Although the older generation's curiosity is expanding for newer technology like Facebook and Instagram, the learning curve is a bit slower for the "Baby Boomers" than for the "Millenniums." Competitor #2: Spotify The reason Pandora has not yet expanded outside the United States, Australia, and New Zealand is because of strict licensing laws. Pandora's CEO, Joseph Kennedy, worked on lowering music licensing fees for Internet radio services last year called the Internet Radio Fairness Act, and failed. Congressional leaders did not agree that it was unfair for Internet radio to pay more in licensing fees to play artists' music. Others argued that artists should not have to sacrifice what they are getting paid just because Pandora is not a profitable company. According CFO Tom Conrad, Pandora currently uses a "statutory licensing provision that allows [them] to do what [they] do without having to directly negotiate licenses with record labels. Although the road to pursue direct licensing is lengthy and difficult, expanding could very well be in Pandora's distant future. They recommend that hopeful customers "don't hold their breath." Pandora teams up with various online retailers and offers links for listeners to purchase songs that have been featured in their personalized channels. >400 different musical attributes are considered when selecting the next song Focus traits (2000) include rhythm syncopation, key tonality, and vocal harmonies Pandora can be played on home CE devices like WD TV, Roku, Google TV, audio-video receivers, Blu-Ray players & many HDTVs Pandora can be played in vehicles equipped with Blutooth technology If your car was not manufactured with Bluetooth, other options are available including multimedia systems that can be installed Available on Google Android OS, Blackberry and iPhone Also available as free app with ad-free streaming for Windows Phone 8 (until 2014) Access to over 800,000 songs Because our current market is primarily people 18-25 years old, we will make that our target market in Italy as well. We will use our current demographics to target people in Italy, this will provide us with a basis for how this demographic in Italy will act and react to certain marketing strategies we