Case Analysis: Napster

Topics: Marketing, File sharing, Music industry Pages: 4 (950 words) Published: February 6, 2008
Case Study Outline of Napster

1)Situational Analysis

a.Marketing Objectives
„XTo re-establish Napster as the market leader for online music downloading industry. „XTo establish a competitive market share in the pay-for-play market. „XRegain the majority original customer base, and entice new users.

b.Target Market
„XAnyone that has internet access and an interest in music. „XAll ages, races, sexes, income levels, education levels and computer knowledge levels. „XAnyone with a minimal understanding of the internet.

c.Marketing Mix
„XProduct- Legal Music Downloads with the following benefits: „ÏMusic Downloads (Legal rights to 500,000 songs)
„ÏCD Burning
„ÏView Music Videos
„ÏAccess Billboard Chart Information
„ÏSynchronize music to other devices
„ÏMessage Boards
„ÏDetailed Artist and Album information
„ÏParental Controls
„ÏPowerful Recommendation Engine
„ÏPersonal Inboxes for Music and Messages*
„ÏAbility to Browse Other Users Music Collections*
„ÏSearch Engines by Genre, Artist, Track Title, or Popularity „ÏComplimentary products such as digital recording media, CDs and MP3 players „ÏAbility to Send Music to Friends within or outside the service* „ÏAccess to Professionally Programmed Radio Stations*

„Ï$.0.99/ song
„Ï$9.95/ album
„ÏPremium Service $9.95 (includes all (*) products above)

„ÏPromote through partnerships with Microsoft, Gateway, Yahoo and Samsung „ÏPartnerships with XM Satellite Radio, Tower Records in Japan, a marketing agreement with BellSouth Corp. of Atlanta „ÏPossible partnership to rollout with cell phones on LM Ericsson of Stockholm

„ÏGift cards are available at various retail stores throughout music areas as well as point of purchase „ÏLinked directly through Yahoo! by use of banners, search engines and e-mail „ÏNapster soft ware is preloaded on all Microsoft computers (they hold 80% of the operating system market) „ÏSamsung...

Cited: Ferrell, O.C.. Marketing Strategy. 3rd. Ohio: South-Western, 2005.
"Napster Hits Record Fourth Quarter Revenues." PR Newswire. 16 May 2007. PR Newswire US/Lexis Nexis. 30 Jan 2008 .
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