re-positioning rega turntables to hip professionals
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 WongTRANSCRIPT
Repositioning Turntables to Hip Professionals
Ariel Bitran, Cheryl Neoh, Jeremiah O’Neil, Erica Swallow, and Andrew Wong
Consumer BehaviorC55.0002 - Section 2
History of the TurntableFirst 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
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
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.
Rega Research LimitedContemporary 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
Key Consumer NeedsTurntables 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
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 SinglesOPPORTUNITY | TARGET | CONCEPT | RESEARCH |
STRATEGY
Concept StatementRega 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
Focus Group OverviewFound 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
Focus Group OverviewMusic 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
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
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
Strategy: ProductInexperienced 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
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: Price
Current Distribution
Quality Concerns
Optimal Fit
OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
Strategy: Placement
OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
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
Strategy: Promotion
OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
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
Strategy: Promotion
OPPORTUNITY | TARGET | CONCEPT | RESEARCH | STRATEGY
Strategy: PromotionPublicity 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 TurntableOngoing 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