MKT 3300-003Professor SoysalGroup 8:

Amanda BuhrkuhlAshleigh LoftonBrittany WallDavid BoothRoyce WidjajaSigourney Rivas

Challenge

• Pandora has a large industry market share• However, there are many competitors:

◦ Spotify◦ iHeart Radio◦ iTunes Radio

• Pandora must find a way to differentiate themselves to remain the industry’s leader

Company

Pandora Radio: Free internet radio service A strong brand trademark since 2000 It is most popular with 18-34 years old Accessible on over hundreds of devices & cars Manage hundreds of stations based on artist, songs, & genres Songs are individually analyzed by paid musical experts 95% of its songs are played monthly

http://www.pandora.com/advertise

Pandora’s Users: 71M active users 2.7M subscribers 125M U.S registered users 75M International registered users 1.5B monthly listeners hours

Feedbacks left by registered users:

Company

Market Shares (2013): 70% market share It’s stock value has tripled $5 billion dollar stock market value Has 28 major markets 427.1M revenue 260M mobile revenue

Goals: Improving its usage Increase long term users

Company

Strengths: Skip forward & backward 6 months free trial Easy connection with Facebook Simple music library Usable without internet

Strengths: Free Real-time feedback 15M songs Connected with xbox360 & GoogleTV

Strengths: Free or $24.99 annually Most valuable brand in the world Partner with major ads deals; PepsiCo,

McDonalds, Procter & Gamble. "Buy" button

Weaknesses: Low awareness Highest cost $4.99/month on desktops & laptops $9.99/month on all devices

Weaknesses: Clutter & complicate usage Lots of songs, but all of them are from

the same 400,000 artists Huge amount of ads

Weaknesses: Apple users are used to using Pandora Doesn't allow monthly payment Available only on iPhone, iPad, iPod

Touch, Macs, Mac Pc, Apple TV.

Market Shares: 18.7% market share Revenue: $99M 2.5M paying subscribers 20M active users

Market Shares: 11.4% market share Revenue: $480M 60M active users 30M registered users

Market Shares: 75% share of worldwide digital music Revenue: Unknown Subscribers: Unknown

Competitors

Customer

• 70.9 million active listeners• Minors, young adults, adults, seniors• Diverse group of people• Pandora listeners are divided by:

◦ Music preference◦ Ease of use◦ Ad free

Context

• Political & Legal Environment◦ Copy Right Act of 1976◦ Pandora pays royalty fees

• Economic Environment◦ Pandora charges $36.99 per year/$3.99 per month

• Social and Cultural Environment• Technological Environment

◦ 1 million songs◦ High royalty fees

SWOT AnalysisStrengths:

Accessible from all Apple products, Androids, Blackberries, Windows Phone, all tablets & computers, some cars & other 100+ devices

Have over 71million active listeners Song has been specialized by music experts Best customize music experience. "Human

Touch" 95% of its songs are played monthly $5 billion dollar stock market value

Weaknesses:

Free only up to 40 hours monthly Can't download or purchase songs Higher cost compared to competitors Does not advertise itself Less partnerships than competitors Only available in U.S, Australia, & New Zealand

Opportunities: Matching price with iTunes Radio: $24.99 Partnership with more car companies Connecting with social medias for easier access

with a free three months trial; Facebook Partnering up with all HTC smart phones Having a "Juice Box" at restaurants. Partner with Gyms; preferable songs for

athletics Merging with Windows computers Allowing users to skip tracks & adding more

songs

Threats:

Pays higher royalty fees than traditional radio It's competitors have a lot more songs Growing market creates increased competition It's competitors merging with large major ads

deals Local radio Spotify iHeart Radio iTunes Radio

Demographics SegmentationAge Group Estimated Price

SensitivityNeeds & Wants

Usage Best Ways To Reach

UsersAges 13-17 22% High Simple,

entertainingSmart phones, tablets

Social media, TV ads

Ages 18-34 45% Moderate Wide range music, accessible

Smart phones, tablets, computer, cars

Social media, radio stations, TV ads, billboards

Ages 35-49 20% Low Wide range music, simple

Smart phones, cars, computers

Social media, radio stations, TV ads, billboards

Ages 50 & up 13% High Accessible, specific selection, simple

Computers TV ads, billboards, print ads

Targeting

• Target Market: Ages 18-34 in the U.S.

• 45% of Pandora listeners (highest of all segments)

• Focus must remain on this target market, cannot risk losing to competitors

• Single Target Market Approach

Positioning

“For people between the ages of 18-34 who value the art of music, Pandora is the leading

Internet Radio that is committed to delivering an incredible music experience that YOU love.”

Positioning

• Most interactive radio • Partnering with various companies in different

industries: ◦ Instant access on cars◦ Android based smart phones◦ Windows computers◦ Local gyms & restaurants

Product & Price• Product

◦ Allows up to 100 stations◦ Easily accessed (mobile devices, tablets, cars, computers)◦ Broaden Pandora Services: social media & more car models

• Price◦ Free service & paid subscription ◦ Promotional discounts with social media partners

Promotion & Place

• Promotion◦ Social media sites◦ Various makes and models of vehicles

• Place◦ 3 countries: U.S., Australia, New Zealand ◦ Distribution channel: direct◦ Pandora is currently available on: mobile devices, tablets, computers, 100 vehicles, TVs, Blu-ray, home theatres

Conclusion

• Pandora will target the largest user base: ages 18-34

• Implement changes: ◦ Discounts for ad free listening◦ Accessible on wide range of devices◦ Ease of use

• Results: ◦ Increased revenues◦ Future profits◦ Solidify Pandora as leading Internet radio

Questions