Jazzy Studio Is A Music And Sound Recording Marketing Essay

Jazzy Studio Is A Music And Sound Recording Marketing Essay Jazzy studio is a music and sound recording studio that provides recording services to local talents in and around Abeokuta south local government in Ogun state, Nigeria. The organization is led by a respected businessman, Seun Odegbami, who has considerable experience in running an effective business. The company owner Seun Odegbami offers more than 10 years of industry experience and offers a strong background in sound recording, audio engineering and promotional marketing skills. The focus of this business is to put forth objectives to provide audio recording services for musicians/artists, to provide quality promotional materials, increase sales and customer base, and to offer outstanding materials and videography services in the near future. Jazzy studio is ready to elevate to the next step and the company is also seeking a business loan in the amount of à ¢Ã¢â‚¬Å¡Ã‚ ¦7million, which will be used in the purchase of equipment upgrades and advertising. 1.1 MISSION Jazzy studios mission is to provide an environment in which personal artistry is encouraged and creativity is inspired as well as expressed. The company will commit to its customers by providing a professional full service recording studio and video production company dedicated to supplying superior quality at affordable price. 1.2 VISION We intend to provide our customers with the best quality and services ensuring customer satisfaction by encouraging two factors: HONOR AND INTEGRITY. 1.3 OBJECTIVES The main objectives of jazzy studios include: To provide exceptional audio recording services for musicians/artist. To increase sales and customer base To provide promotional material (posters, fliers) for musicians/artist. To offer outstanding videography services in near future. 1.4 PRODUCT AND SERVICES The studio will offer a variety of recording and production products that will appeal to the residents of our target market and its surrounding areas. These services include: Professional audio recording Manufacture and press compact discs for artist Creating innovative sound and concepts using the best recording equipments. Vocal training Tutorial sessions 1.5 MANAGEMENT BIOGRAPHY The management team of jazzy studios comprises of three staffs namely: Seun Odegbami, Richard Ositelu and Tope Ogundipe. The team is lead by Chief Executive Officer, Seun Odegbami who directs the affairs of the company after a successful career as a manager at Marvin Records. He received his first degree in media services from university of Lagos in 2001 and later proceeded to the University of Sunderland where he bagged his M.B.A in 2003. Seun Odegbami offers more than 10 years of vast experience in the music industry. The audio engineer is Richard Ositelu.The audio engineer also called audio technician, recording engineer deals with the use of machinery and equipments for production of quality sounds. Richard finished from Yaba College of Technology with HND in sound engineering and has 5 years of working experience in the studio. Tope Ogundipe acts as an administrative officer. She is responsible for all accounting and administrative services of the organization. Tope is an OND holder from Lagos state polytechnic and also offers 2 years of working experience. Our organization is made up of three staffs that would carry out business goals and ensure customer satisfaction is guaranteed at all time. C:UsersSubbyDownloadsacc3.gif Figure 1: illustration of company organogram 1.6 COMPANY SUMMARY COMPANY NAME: JAZZY STUDIOS LIMITED ADDRESS: 4, Laderin Road Abeokuta, Ogun State. PHONE NUMBER: 01-273648, 07061524987 EMAIL: [emailprotected], [emailprotected] WEBSITE: www.jazzystudios.com Jazzy studio sits in Laderin road which is the heart of Abeokuta. The studio consists of three rooms: a waiting area, a pre-production area and a post production area with a state of the art recording sound booth. It is the only full service, professional recording studio in the area. 2.0 THE ECONOMY The economic market condition in Nigeria is struggling to leverage her vast wealth in order to displace the crushing poverty that affects over 50% of its population. Despite the slowdown in the economy, there have been a great number of young talents taking music as a long time career. The music industry has high employment-generating potentials. The growing success of the industry has not gone unnoticed by investors and indeed many record labels are investing in new and talented artistes nationwide. The recent success of top musicians in the global world has been a massive boost for young aspiring talents in the music industry. 2.1 MARKET ANALYSIS SUMMARY The overall market for sound recording is immense and the demand for sound recording is increasing. Sound recording aid the booming technology that delivers audio to MP3players, computers, IPOD etc. also, sound engineering technicians operate machines and equipments to record, synchronize, and mix sound effect in recording studio, theater productions and video production. Jazzy studio launches its services in receptive to the steady growing market segment which is among young adults in Nigeria today. Despite the economic downturns, there is still an increase of young talents in the music industry and our organization is ready to provide sound services to local vocal talent whether they are artist, children interested in tutorial session in audio recording. 2.2 INDUSTRY ANALYSIS There are approximately 1,255 sound recording studios in Nigeria. Revenues generated by the industry total more than à ¢Ã¢â‚¬Å¡Ã‚ ¦50 million and there is an estimate of about 6,000 people employed by the industry. The industry is expected to continually grow as the number of potential talents is on the rise and more competitors entering the market. The Nigerian census estimates that the industry has grow at a rate of 11.5% annually. 2.3 MARKET SEGMENTATION Our market segmentation is fairly straight forward and focuses on our target market, customers within the music and sound recording industry. These customers prefer certain quality of work and its our duty to deliver the quality they expect. The information in our market analysis table shows our main markets which are the local independent artist and children. Our market for local independent artist who are our biggest and popular market exists due to ideal location. Our children clientele exist due to tutorial sessions we offer in our community. Table: Market Analysis Market analysis 2012 2013 2014 2015 Potential customers Growth Independent artist 20% 100 120 140 160 Children 20% 32 52 72 92 Total 20% 132 202 322 442 2.4 MARKET TARGET Jazzy studio will serve the music recording market segment. Since our company is located in the heart of Abeokuta, the target market will be young aspiring musicians who probably are unable able to afford the regular studio session fee. They utilize us to build onto their audio portfolio, and to provide excellent service. Because we mainly focus on the music recording market, we know how to meet the specific needs of our clients. Therefore, we intend to reach our target market through word of the mouth marketing, fliers and business cards which will be distributed in the neighborhood 2.5 COMPETITOR ANALYSIS Jazzy studio is the only full service and professional studio in Abeokuta south local government and our business is in a non-competitive environment. The studio has modern and abstract sound systems which will attract more customers. There are currently no competitors in this line of business in Abeokuta south. 2.6 COMPETITVE ADVANTAGE Jazzy studios competitive advantage relies in our ability to position as a strategic ally with our customers. The companys reputation of being trustworthy and reliable will be a key factor by building a business based on long standing relationship with our clients. The longer the relationship, the more we will help our clients understand what we offer them and why they need it. Our Producers and audio engineers will establish strong relationships with clients to ensure that they are satisfied because it aids us in generating future business. Our organization operates under a business philosophy that specialized customer service is the best way to attract more clients. Jazzy studios also recognize the opportunity to provide tutorial sessions to young aspiring adults. This approach tends to get the attention of local young aspiring musicians/artist which is the best way to make money in the long term and bring the best out of clients. 3.0 BUSINESS STRATEGY Our business strategy involves advertising and reaching all the potential clients that we can. Our goal is to provide exceptional service to our customer and satisfy them at all cost. Currently, jazzy studio has an advantage because the owner/produce, Seun Odegbami is a well known superior business man that has excellent audio engineering and communication skills. Seun also offers more than 10years of experience to the music recording industry. Once a few bands have been secured, it then becomes our marketing strategy to plug the bands as much as possible. This will be done by leveraging all of their networking contacts. 3.1 SALES STRATEGY The CEO has an excellent customer relation and interpersonal skills; these skills will be used in making customer/musicians comfortable in trusting jazzy studio to produce and record music for them. Keeping customers happy, we feel, is an implicit part of building a relationship that will encourage business growth. 3.2 SERVICE BUSINESS ANALYSIS As a music recording company, it is our duty to offer customers the best services, a professional atmosphere and comfortable environment. We also provide musicians/artist with promotional materials, such as fliers, posters and cd covers at a very reasonable price. As simple as it may be, our method of executing customer service has an important effect on the bottom line. Skillful use of good communication will bring the business we desire. 3.3 WEBSITE MARKETING STRATEGY Our online services will provide intending customers an opportunity to access more information about the organization, promos, recording hours and tutorial. The site will be linked to various entertainment sites such as music sturvs, notjustok, and jaguda. Jazzy studio will also submit the site to several different search engines and lastly, the URL address will be prominent on printed material and correspondence. 4.0 FINANCIAL ANALYSIS The financial plan of any business is essential as it makes all the difference between organized activities and chaos (Maslauskaite and Koumpis 2011). A comprehensive business plan is useless if it does not contain a financial plan and projection for the future. The current financial plan for jazzy studio is to obtain a business loan in the amount of à ¢Ã¢â‚¬Å¡Ã‚ ¦7million. The loan will be used to update and purchase new equipment and software, increase advertising and provide video recording services. The following sections of this plan will serve to describe jazzy studios financial plan in more details: Sales projection Balance sheet Profit and loss Break-even analysis 4.1 SALES PROJECTION Sales projection is a core in a business plan. Managers tend to measure a business growth by its sales and the sales forecast sets the standard for expense, profit and growth. Jazzy studios average 21 sessions a month. Studio sessions cost à ¢Ã¢â‚¬Å¡Ã‚ ¦7500/hour. Most sessions last for 3 hours thus each session totals à ¢Ã¢â‚¬Å¡Ã‚ ¦22,500.Each promotional design cost à ¢Ã¢â‚¬Å¡Ã‚ ¦10,000. Our goal is to design between 50-100 promotional designs a year. Our forecast for jazzy records total sales in its first year is à ¢Ã¢â‚¬Å¡Ã‚ ¦3,150,000. During the years 2014-2016 we see a 30% annual increase. Table: SALES PROJECTION Sales Forecast 2013 2014 2015 2016 Unit sales Audio Production 120 135 161 195 Promotional design 45 91 110 165 Total Unit Sales Unit Prices Audio Production Promotional Design Sales Audio Production Promotional Design Total Sales 165 2013 à ¢Ã¢â‚¬Å¡Ã‚ ¦22,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦2,700,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦450,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,150,000 226 2014 à ¢Ã¢â‚¬Å¡Ã‚ ¦22,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,037,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦910,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,947,500 271 2015 à ¢Ã¢â‚¬Å¡Ã‚ ¦25,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦4,105,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦1,100,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦5,205,500 360 2016 à ¢Ã¢â‚¬Å¡Ã‚ ¦25,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦4,972,500 à ¢Ã¢â‚¬Å¡Ã‚ ¦1,650,000 à ¢Ã¢â‚¬Å¡Ã‚ ¦6,622,500 Figure : sales by year 4.2 IMPORTANT ASSUMPTIONS The table below shows the assumptions used in the financial calculation of this business plan. The average per-unit revenue cost is estimated to be à ¢Ã¢â‚¬Å¡Ã‚ ¦18,700. The average per-unit variable cost is estimated to be à ¢Ã¢â‚¬Å¡Ã‚ ¦500. The estimated monthly fixed cost is à ¢Ã¢â‚¬Å¡Ã‚ ¦100,000. Table: General assumptions General Assumptions 2012 2013 2014 Current Interest rate 10.00% 10.00% 10.00% Long term interest rate 10.00% 10.00% 10.00% Tax rate 15.00% 15.00% 15.00% 4.3 PROJECTED PROFIT AND LOSS The net income for 2013, 2014, 2015 and 2016 is forecast to be à ¢Ã¢â‚¬Å¡Ã‚ ¦3,150,000, à ¢Ã¢â‚¬Å¡Ã‚ ¦3,947,500, à ¢Ã¢â‚¬Å¡Ã‚ ¦5,205,500, à ¢Ã¢â‚¬Å¡Ã‚ ¦6,622,500 respectively. The net profit for the same period is 4.4 PROJECT BALANCE SHEET The table below illustrates the project balance sheet. TABLE: Balance Sheet Pro forma balance sheet 2013 2014 2015 2016 ASSETS Current assets Cash à ¢Ã¢â‚¬Å¡Ã‚ ¦7,005,021 à ¢Ã¢â‚¬Å¡Ã‚ ¦7,503,871 à ¢Ã¢â‚¬Å¡Ã‚ ¦8,012,760 à ¢Ã¢â‚¬Å¡Ã‚ ¦8,499,091 Other current assets Total current asset Long term asset Accumulated depreciation Total long term asset Total assets à ¢Ã¢â‚¬Å¡Ã‚ ¦3,121,023 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,126,044 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,126,044 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,121,023 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,624,894 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦10,624,894 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,121,023 à ¢Ã¢â‚¬Å¡Ã‚ ¦11,133,783 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦11,133,783 à ¢Ã¢â‚¬Å¡Ã‚ ¦3,121,023 à ¢Ã¢â‚¬Å¡Ã‚ ¦11,620,114 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦0 à ¢Ã¢â‚¬Å¡Ã‚ ¦11,620,114 LIABILITIES AND CAPITAL 2013 2014 2015 2016 Current liabilities Accounts payable à ¢Ã¢â‚¬Å¡Ã‚ ¦ 56 Current borrowing à ¢Ã¢â‚¬Å¡Ã‚ ¦0 32 91 Other current liabilities Subtotal current liabilities Long term liabilities Total liabilities Paid in capital Retained earning Earnings Total capital Total liabilities and capital Net worth à ¢Ã¢â‚¬Å¡Ã‚ ¦0 35 54 43 5.0 SWOT ANALYSIS A SWOT analysis identifies the internal and external factors that are either helpful or not and serves as a useful resources which may be incorporated into an organization strategic planning model (Chen and bruneski). The SWOT analysis aids in displaying the internal strengths and weaknesses that Jazzy studio must address. The SWOT analysis allows us to examine opportunities presented to Jazzy studio as well as possible potential threats. The companys strength which includes: having 10 years of industry experience and knowledge, quality production and sound, excellent and stable staff, essential equipment, high customer loyalty and good referral relationships as well as strong media relationship will help the company grow from strength to strength. 5.0.1 STRENGTHS 10 years of industry knowledge Essential equipments Strong media relationship Quality production and sound Cost advantages with new technology Growing customer base and customer loyalty within target group. Awesome website 5.0.2 WEAKNESSES Lack of money to advertise Cost factor with keeping state-of-the-art hardware New entrants Limited channels of distribution 5.0.3 OPPORTUNITIES Growing market with a significant of our target market still not knowing we exist. Strategic alliance offering source for referrals to extend our reach. Developing new technologies to cope with the driving force of the industry Internet through expanding e-commerce. Expanding nationwide 5.0.4 THREAT Emerging local competitors: currently there are no recording studios in the area. Increase in price inputs can cause upward pricing Changes in regulations can impact the business 5.1 LIMITING FACTORS The limiting factors that control the organization process, such as growth, resources are as follows: Lack of constant electricity Piracy