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Napster 2.0

Case Study Outline of Napster

1) Situational Analysis

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

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

c. Marketing Mix
 Product- Legal Music Downloads with the following benefits:
 Music Downloads (Legal rights to 500,000 songs)
 CD Burning
 View Music Videos
 Access Billboard Chart Information
 Synchronize music to other devices
 Message Boards
 Detailed Artist and Album information
 Parental Controls
 Powerful Recommendation Engine
 Personal Inboxes for Music and Messages*
 Ability to Browse Other Users Music Collections*
 Search Engines by Genre, Artist, Track Title, or Popularity
 Complimentary products such as digital recording media, CDs and MP3 players
 Ability to Send Music to Friends within or outside the service*
 Access to Professionally Programmed Radio Stations*

 Price-
 $.0.99/ song
 $9.95/ album
 Premium Service $9.95 (includes all (*) products above)

 Promotion-
 Promote through partnerships with Microsoft, Gateway, Yahoo and Samsung
 Partnerships with XM Satellite Radio, Tower Records in Japan, a marketing agreement with BellSouth Corp. of Atlanta
 Possible partnership to rollout with cell phones on LM Ericsson of Stockholm

 Placement-
 Gift cards are available at various retail stores throughout music areas as well as point of purchase
 Linked directly through Yahoo! by use of banners, search engines and e-mail
 Napster soft ware is preloaded on all Microsoft computers (they hold 80% of the operating system market)
 Samsung offers a digital audio...