Re-Positioning Rega Turntables to Hip Professionals

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Information about Re-Positioning Rega Turntables to Hip Professionals
Business & Mgmt

Published on August 4, 2009

Author: ericaswallow

Source: slideshare.net

Description

To take advantage of resurgence in vinyl record sales, our group has researched the feasibility of repositioning Rega turntables to a younger segment of “hip professionals.” As digital music, both purchased and stolen, has acquired a vast market share among our target audience, the greatest challenge is convincing consumers their investment in a Rega turntable will provide enough utility. Focus groups show that price and convenience are the two largest factors in purchase decision-making for our target of relatively affluent urban audiophiles. Thus, we will be highlighting the hedonic musical experience associated with turntables, while selling the product at a competitive price. We plan to communicate the terminal values Rega offers by using visuals that portray social praise and the ability to become an opinion leader in one’s reference group. Ultimately, this retro brand can be revived through effective marketing.

All materials were created by Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, Erica Swallow and Andrew Wong

Repositioning Turntables to Hip Professionals Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, Erica Swallow, and Andrew Wong Consumer Behavior C55.0002 - Section 2

Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil,

Erica Swallow, and Andrew Wong

History of the Turntable First invented in late 1870s Through the 1960s and 1970s, turntables were the leading audio technology Predominantly replaced by digital players in 80s and 90s Vinyl records and turntables growing popular once again OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

First invented in late 1870s

Through the 1960s and 1970s, turntables were the leading audio technology

Predominantly replaced by digital players in 80s and 90s

Vinyl records and turntables growing popular once again

Current Market Trends Great advances in playback since 1970s; still retro appeal US record sales increase 40% in 2007 to 1.3 million units Amazon launches vinyl-only section of its online store While MP3s conquer the market, CDs become a dying trend OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Great advances in playback since 1970s; still retro appeal

US record sales increase 40% in 2007 to 1.3 million units

Amazon launches vinyl-only section of its online store

While MP3s conquer the market, CDs become a dying trend

OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Current Market Trends “ The involvement and work the listener has to put in [the vinyl record], all make it the format of choice for people who really care about music.” -Patrick Amory, MatadorMP3 coupons provided with vinylLoudness War creating a cry for higher-quality soundOn vinyl... Beck, Kanye West, Radiohead, Madonna, U2, etc.

“ The involvement and work the listener has to put in [the vinyl record], all make it the format of choice for people who really care about music.” -Patrick Amory, MatadorMP3 coupons provided with vinylLoudness War creating a cry for higher-quality soundOn vinyl... Beck, Kanye West, Radiohead, Madonna, U2, etc.

Rega Research Limited Contemporary British turntable company established in 1973 Turntable line ranges from low-end P1 model to high-end P9 Sold through few distributors; limited positioning to target Most industry competitors’ price and promotions not effective Substitutes like iPod biggest threat for target market OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Contemporary British turntable company established in 1973

Turntable line ranges from low-end P1 model to high-end P9

Sold through few distributors; limited positioning to target

Most industry competitors’ price and promotions not effective

Substitutes like iPod biggest threat for target market

Key Consumer Needs Turntables provide access to newly popular vinyl records Warm analog sound reputed to be far superior to digital music Turntables are more conducive to social listening than iPods Ownership shows trendiness; source of affection and respect OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Turntables provide access to newly popular vinyl records

Warm analog sound reputed to be far superior to digital music

Turntables are more conducive to social listening than iPods

Ownership shows trendiness; source of affection and respect

Target Market Specifics “ Hip professionals” aged 18 - 34 Young, urban, and trendy market with education, disposable income Self-expressive and eager to emphasize their individuality Value products’ experiential qualities over material worth PRIZM: Young Literati, Bohemians ACORN: Enterprising Singles OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

“ Hip professionals” aged 18 - 34

Young, urban, and trendy market with education, disposable income

Self-expressive and eager to emphasize their individuality

Value products’ experiential qualities over material worth

PRIZM: Young Literati, Bohemians

ACORN: Enterprising Singles

Concept Statement Rega is marketing turntables to younger urban consumers Record players provide high-quality music experience with rich analog sound Available in mass-market and independent music stores, high-fidelity audio dealers Also for sale on Rega’s website with ability to customize OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Rega is marketing turntables to younger urban consumers

Record players provide high-quality music experience with rich analog sound

Available in mass-market and independent music stores, high-fidelity audio dealers

Also for sale on Rega’s website with ability to customize

Focus Group Overview Found older students in dorms familiar with music; bystanders in Virgin Megastore; insiders Illegal downloads common, but hard copies bought occasionally Respondents used to set mood, enhance preexisting ambiance Usually listen in highly social setting or complete isolation OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Found older students in dorms familiar with music; bystanders in Virgin Megastore; insiders

Illegal downloads common, but hard copies bought occasionally

Respondents used to set mood, enhance preexisting ambiance

Usually listen in highly social setting or complete isolation

Focus Group Overview Music information obtained from social networks, blogs, online radio, and some print; little TV Audio technology info came from online news, retailer sites, and industry publications Word-of-mouth highly influential iPods most popular, computer speakers also used; CD players and boom-boxes now obsolete OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Music information obtained from social networks, blogs, online radio, and some print; little TV

Audio technology info came from online news, retailer sites, and industry publications

Word-of-mouth highly influential

iPods most popular, computer speakers also used; CD players and boom-boxes now obsolete

Attitudes about Turntables OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Overall impressions highly favorable – “classy,” “retro” Nostalgia about turntables versus notion of modern DJs Hedonic benefits like ambiance and look frequently mentioned Switching costs high: learning required, differing functionality, portability, MP3 compatibility Sense that purchase = switch

Overall impressions highly favorable – “classy,” “retro”

Nostalgia about turntables versus notion of modern DJs

Hedonic benefits like ambiance and look frequently mentioned

Switching costs high: learning required, differing functionality, portability, MP3 compatibility

Sense that purchase = switch

Attitudes about Turntables OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY iPod closest reference price, $300 - $400 as high-end price Many demanded price premium to switch, $30 - $50 on low-end Survey found weak / moderate purchase intent for students Several felt purchase more likely as young professionals with income and personal space

iPod closest reference price, $300 - $400 as high-end price

Many demanded price premium to switch, $30 - $50 on low-end

Survey found weak / moderate purchase intent for students

Several felt purchase more likely as young professionals with income and personal space

Strategy: Product Inexperienced market demands simplicity of entry-level Rega P1 Simple on/off switch; most settings are already adjusted Detailed instructions and 3-year warranty reduce perceived risk Custom details draw for target Color finishes standard; colored mat, glass platter OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Inexperienced market demands simplicity of entry-level Rega P1

Simple on/off switch; most settings are already adjusted

Detailed instructions and 3-year warranty reduce perceived risk

Custom details draw for target

Color finishes standard; colored mat, glass platter

Rega P1 Base Price: $350 Color Upgrade: $50 Total cost: $400 Users must also obtain amplifier, loudspeakers, and cables Actual investment could run up to $1,600 using Rega equipment Lower prices from other vendors Strategy: Price OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY

Rega P1 Base Price: $350

Color Upgrade: $50

Total cost: $400

Users must also obtain amplifier, loudspeakers, and cables

Actual investment could run up to $1,600 using Rega equipment

Lower prices from other vendors

OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Placement Current Distribution Quality Concerns Optimal Fit

Define separate usage situations for iPods and Rega turntables Emphasize hedonic benefits and terminal values including social enjoyment and resultant praise Demonstrate accessibility of turntables and vinyl records Sales promotions to lower perceived risk and add value OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion

Define separate usage situations for iPods and Rega turntables

Emphasize hedonic benefits and terminal values including social enjoyment and resultant praise

Demonstrate accessibility of turntables and vinyl records

Sales promotions to lower perceived risk and add value

Launch direct-to-consumer ads using traditional media sources Print ads in magazines & trade publications like Rolling Stone , Spin , Stereophile , and others Online advertising campaign on related publications’ websites Non-traditional campaign using blogs, social networks, and publicity for word-of-mouth OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion

Launch direct-to-consumer ads using traditional media sources

Print ads in magazines & trade publications like Rolling Stone , Spin , Stereophile , and others

Online advertising campaign on related publications’ websites

Non-traditional campaign using blogs, social networks, and publicity for word-of-mouth

OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Strategy: Promotion Publicity to include experiential events to encourage trial Partnerships with retailers using brand ambassadors Product placement in congruent films, television shows, etc. Relationship marketing through customer service, owner-only events, birthday reminders

Publicity to include experiential events to encourage trial

Partnerships with retailers using brand ambassadors

Product placement in congruent films, television shows, etc.

Relationship marketing through customer service, owner-only events, birthday reminders

OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY Reviving the Turntable Ongoing trends could help Rega attain unique positioning Target market of young, trendy, hip professionals ready to buy Addressing consumers’ value and compatibility barriers key Hedonic benefits essential Careful marketing could prompt the revival of a retro product

Ongoing trends could help Rega attain unique positioning

Target market of young, trendy, hip professionals ready to buy

Addressing consumers’ value and compatibility barriers key

Hedonic benefits essential

Careful marketing could prompt the revival of a retro product

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