the internal environment, swot and marketing plan

31
Page | 2 The Internal Environment Marketing Goals LSTN’s mission statement is to “change the world through the power of music” and that is LSTN’s exact goal. This is LSTN’s main marketing goal for the company. Their way to reach this goal is through a program they put into place ever since the company was born. It is called “Giving Back. Amplified.” This program offers a unique opportunity to the customers to contribute to their goal. Whenever a purchase of a pair of headphones or earbuds is made a portion of that profit is donated to the Starkey Hearing Foundation which helps restore hearing to people in third world countries. Current Marketing Strategy Currently LSTN’s marketing efforts are to raise awareness of the headphones and to raise awareness of their cause, to aid in the restoration of the hearing for people in third world countries. In terms of marketing though there is not much of a presence. They have had much free publicity which is excellent, from reviews of the headphones in magazines and websites to the headphones being featured on the Today show. It has helped to get their “foot in the door” of the headphones market as a whole. Another avenue they have taken to help market the existence of their company is through videos on YouTube. This though has not reached a great audience because they are simple videos on their channel and they only advertise mainly to people who subscribe to the channel. Another way they advertise is their products being sold in stores such as Tilly’s, Nordstrom, and most recently Abercrombie & Fitch. This brings about awareness of the products to customers of these stores. They also have social media accounts on Facebook and Instagram, but the advertising is only limited to the people who follow these accounts. In general these #0623

Upload: chris-veenker

Post on 09-Jan-2017

40 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: The Internal Environment, SWOT and Marketing Plan

P a g e | 2

The Internal EnvironmentMarketing GoalsLSTN’s mission statement is to “change the world through the power of music” and that is LSTN’s exact goal. This is LSTN’s main marketing goal for the company. Their way to reach this goal is through a program they put into place ever since the company was born. It is called “Giving Back. Amplified.” This program offers a unique opportunity to the customers to contribute to their goal. Whenever a purchase of a pair of headphones or earbuds is made a portion of that profit is donated to the Starkey Hearing Foundation which helps restore hearing to people in third world countries.

Current Marketing StrategyCurrently LSTN’s marketing efforts are to raise awareness of the headphones and to raise awareness of their cause, to aid in the restoration of the hearing for people in third world countries. In terms of marketing though there is not much of a presence. They have had much free publicity which is excellent, from reviews of the headphones in magazines and websites to the headphones being featured on the Today show. It has helped to get their “foot in the door” of the headphones market as a whole. Another avenue they have taken to help market the existence of their company is through videos on YouTube. This though has not reached a great audience because they are simple videos on their channel and they only advertise mainly to people who subscribe to the channel. Another way they advertise is their products being sold in stores such as Tilly’s, Nordstrom, and most recently Abercrombie & Fitch. This brings about awareness of the products to customers of these stores. They also have social media accounts on Facebook and Instagram, but the advertising is only limited to the people who follow these accounts. In general these elements have seemed to pay off overall but, in order to broaden the customer base more needs to be done within these elements and outside them.

PerformanceLSTN, being a relatively small and new business, has given them quite small market share as compared to industry leaders such as Beats, Sennheiser and Bose. LSTN’s marketing efforts also contribute to their small market share as well as their performance in this industry. In terms of awareness most people who are in this market looking to make a purchase have never heard of

#0623

Page 2: The Internal Environment, SWOT and Marketing Plan

P a g e | 3

LSTN. That being said they are really not a brand preference for anyone. Brands such as the industry leader Beats, and Sennhieser are more of the brand of choice for people in this market. As a whole the performance of the industry is on the rise due to a change in culture/fashion preference. Headphones’ overall demand is on the rise. This is because headphones have become something of a fashion staple with consumers now.

Organizational ResourcesAt the time, LSTN appears to be doing fine as far as organizational resources go. Financially LSTN seems to be doing great. They have the current capital and employee experience to benefit in the continuation of the business. The main resource that is crucial for LSTN is its relationship with suppliers and customers. On the supplier side they have an excellent relationship. LSTN makes their headphones and earbuds from reclaimed wood which generally helps cut costs substantially and makes the overall company seem to be environmental conscious. They get this main material used to make the majority of their headphones and earbuds from furniture and floor manufactures. As far as any changes to the level of this resource being available, LSTN doesn’t need to worry about that because it will be readily available in abundance in the future. On the customer relationship side they seem to have an exceptional relationship. This is partially because LSTN is a small business. They communicate with anyone who contacts them via social media and will do anything to help their customers if they have any concerns or problems with their product. They are also readily available via phone to solve any problems or just to provide information on the company and its products.

The Customer EnvironmentCurrent and Potential CustomersLSTN’s current customers tend to be the hipster crowd. Their age runs from 16 to 30, they tend to be people who love music but also have a taste for fashion, specifically the hipster fashion mindset. To the current customers, over the ear headphones are somewhat of a necessity to them. It helps portray to the public that they are fashionably “in” as well as lovers of music in general.

#0623

Page 3: The Internal Environment, SWOT and Marketing Plan

P a g e | 4

As far as potential customers go, they could be considered audiophiles. This term meaning that they crave headphones that provide extraordinary sound and do not care about the cosmetic appeal of them.LSTN’s Troubadours adhere to these basic features of their customers. They provide a product that is different than any of the other products offered in their market. This is because the Troubadours are made from reclaimed wood providing a different yet exceptional listening experience than other headphones or earbuds. They also have a strong cosmetic appeal which hints towards the more fashionable side which the customers strive to find in over-ear headphones. Customers also like the ability to talk on the phone with the use of their headphones. LSTN’s Troubadours provide that with an in-line microphone.

WhereThough most purchases of the Troubadours are from LSTN’s website, the Troubadours can be purchased from a variety of places all across the United States as well as parts of Europe. LSTN’s Troubadours are available in small businesses and small record stores across the United States. They are also available in parts of Europe. Below are the main places of purchases as well as the method to purchase.E-commerce

1. Amazon.com2. Barns&Noble.com3. Hastings.com4. Tillys.com5. Nordstrom.com6. Abercrombie.com7. Toms.com8. LSTN.com

In-store1. Barnes & Noble2. Hastings3. Tilly’s4. Nordstrom

#0623

Page 4: The Internal Environment, SWOT and Marketing Plan

P a g e | 5

5. Abercrombie & Fitch6. Fry’s Electronics7. Sub-Pop Records8. (Some) Whole Foods

As far as time goes, there really is not a specific time as to when people purchase the Troubadours. Sales might increase somewhat during the holiday season but that is the only unique trend that will fall under the category as to when they are purchased.

Why Customers PurchaseThe LSTN Troubadours offer the customer a unique listening experience that other headphones in the market don’t offer. This is because they are made of reclaimed wood, specifically Cherry, Mahogany, Beech and Zebra wood. The wood provides unique acoustical properties that can also be tailored to the listeners preferred style of music based on the wood type if the customer so chooses to take that route. If the customer prefers the more cosmetic approach rather then sound approach, than there are the four listed wood types to choose from. The Troubadours also have a more vintage approach to the overall design rather than a slick, more futuristic approach other companies tend to do. Another advantage the Troubadours offer that competitors don’t offer is the opportunity for the customer to give back. The program is called “Giving Back. Amplified”. When the customer purchases the Troubadours or any other of LSTN’s products, part of the profit from the purchase goes to the Starkey Hearing Foundation. People in general like to give back for a multitude of reasons whether it is to feel good about themselves or maybe because the cause is dear to them. With a purchase of LSTN headphones, people will relate to these multitude of reasons and will feel more confident and good about their purchase overall. The Troubadours also run for a price of $150, which is fairly reasonably for a good pair of headphones.

#0623

Page 5: The Internal Environment, SWOT and Marketing Plan

P a g e | 6

Why Customers do not PurchaseOne of the main reasons people do not purchase the Troubadours is because of the lack of awareness resulting from the company. This is because the company is relatively new, two years old to be exact. They have had little time to establish themselves in a market that has tons of brands and is dominated by a few of them. The dominating few consist of the market leader Beats Electronics, followed by Bose, Sennheiser, Audio-Technica, Skullcandy, Grado, AKG and Sony. The majority of these brands have been around for some time, roughly twenty years or more. With that, they have been able to establish a firm share of the market as well as build a strong brand loyalty with customers. But it is Beats Electronics that has dominated the market since it came out in 2008. Beats started with a strong marketing campaign that practically advertised that their headphones were the headphones to end all headphones. The resulting conclusion of this marketing campaign has skyrocketed them to become the current industry leader, surpassing many well reputable brands. Beats over the few years they have been around has also created a substantial brand loyalty. With this, along with its genius marketing efforts, most people in the headphone market look to purchase Beats headphones because they offer a sense of prestige along with similar features like noise-cancelling and an in-line remote to control certain functions of your cellular device. The Troubadours remote only has a mic, limiting its cellular use potential. Beats also has a strong cosmetic appeal with their headphones.They offer a very fresh and futuristic look, which was new to the headphones market. Their headphones also specialize in the more bass heavy side of the sound spectrum. They chose to design these headphones like this in part with music currently being produced to be bass heavy. With their headphones being bass heavy, consumers are more likely to choose Beats headphones because they specialize in the more popular and preferred genres of music that are bass heavy. Beats over-ear headphones cost $300 with the wireless pair costing $400.When consumers look for headphones that have superior sound quality and don’t really care about cosmetic appeal, they look to Audio-Technica and Sennheiser. Both brands develop their headphones to appeal to people who are more like audiophiles. They roughly cost between $100 to about $300. If these audiophiles are willing to dish out a considerable amount of cash than they will possibly look to Grado and AKG headphones which can get up to

#0623

Page 6: The Internal Environment, SWOT and Marketing Plan

P a g e | 7

over $500 or more. While these headphone brands focus more on the frequency spectrum of their headphones, LSTN chooses to provide not exceptional but good sound quality. For that reason the Troubadours might be a turn off for audiophiles.If consumers in the headphone market are looking for top notch noise-cancelation headphones, then they look no further than the brand that is known for noise-cancelation, Bose. They cost no more than $300 for the best pair. The Troubadours are not noise-cancelling so customers looking for that feature will have to look elsewhere.Lastly if consumers are concerned about price but want decent to average sound quality along with cosmetic appeal, they generally tend to purchase Skullcandy or Sony headphones. Their headphones appeal to the more money conscious people of the market roughly costing no more than $130. LSTN falls more with Skullcandy and Sony by providing an above average sound quality and also providing the cosmetic appeal at a reasonable $150.In conclusion, the final component as to why people don’t purchase LSTN headphones is because the majority of these brands are offered in major retailers such as Walmart, Target and BestBuy, unlike the LSTN Troubadours. With this it is much more of a hassle to acquire these headphones because they are not at the most popular retail stores where most people shops at. Plus not being in major retailers limits the reach of your product to the consumer substantially.

The External EnvironmentCompetition

1. Beats Electronics: Beats was established in 2008 and quickly came to be the industry leader in a matter of a couple of years thanks to very effective marketing and product placement. Their products they offer consist of earbuds, on-ear headphones, over-ear headphones and

#0623

Page 7: The Internal Environment, SWOT and Marketing Plan

P a g e | 8

portable speakers. These products can be found at almost all major retailers such as Walmart and BestBuy via in store or online. They can also be found worldwide. The main product the Troubadours are up against is the Beats Studio over-ear headphones. These headphones typically run around $300 for the wired version or $400 for the wireless. Some features they offer: bass heavy sound reproduction, noise-cancelation, in-line remote and microphone that controls volume and can control cellular device functions, easy portability and a variety of colors. For most consumers in the headphone market, this is the go to pair. Their headphones appeal to anyone in the headphone market. As of 2013, Beats had $1.5 billion dollars in revenue. This is expected to grow especially with the recent buyout of the company by Apple.

2. Bose: Bose was founded in 1964. Their specialty they offer in their products is the finest noise-cancelation available in headphones. The noise-cancelation is what their marketing efforts are tailored to. The main product the Troubadours will be up against will be the Bose QuietComfort over-ear headphones. They run typically around $300 and are available in-store and online at most major electronics retailers such as BestBuy. The features they offer are Bose’s noise cancelling technology and an in-line remote and microphone that can control volume as well as cellular device functions. As of 2013, Bose had $2.5 billion dollars in revenue. Their products are also found worldwide.

3. Sennheiser: Sennheiser is a German audio company that was founded in June of 1945. They adhere to the audiophiles by providing headphones that offer brilliant sound quality and that is what they market towards. As of 2013, they had a revenue of $182 million in the United States. Their products range from earbuds to on-ear and over-ear headphones. The main product offered that the Troubadours will be up against is the Sennheiser Momentum over-ear headphones which run for $300. Features it provides are a wide frequency spectrum which provides excellent sound reproduction and in-line remote and microphone that can control volume as well as cellular device functions such as a phone call. The Momentums also have a very vintage look that has a great cosmetic appeal. Currently Sennheiser is trying to target the people who care about the way their headphones look as well as the sound quality offered.

#0623

Page 8: The Internal Environment, SWOT and Marketing Plan

P a g e | 9

4. Skullcandy: Skullcandy is a headphone company that was founded in 2003. The products they offer are headphones, earbuds and portable speakers. Skullcandy focuses their marketing towards the more extreme sports people. As of 2013 they have an estimated revenue of $220 million dollars and have been slowly declining in sales. Their products are offered at major retailers such as Walmart, Target and BestBuy. The Troubadours main competitor is the Skullcandy Aviators. The main features it possesses are affordability with a price tag of $130 and an in-line mic and remote which controls volume, playback controls as well as cellular device functions. The Aviators are also available in a variety of colors.

5. Audio-Technica: Audio-Technica is a headphone company that was founded in 1962. The products they offer are earbuds, on and over-ear headphones. The main marketing focus for Audio-Technica is to market towards audiophiles, music producers and other fields that require professional grade headphones. They do this because they have a reputation for making headphones that provide excellent sound reproduction. They have an estimated revenue of $250 million as of 2013. The main competitor the Troubadours are against is the ATH-M50 over-ear headphones. These headphones run around $170 and offer amazing sound reproduction. This pair is the usual go to for producers and audiophiles, mainly for its affordability and its sound quality.

TrendsAs far as trends go, there are only two factors that have really affected the over-ear headphones market, that being sociocultural trends and technological trends.Starting with sociocultural trends, over-ear headphones have been on the rise in recent years. They have become something you take around with you everywhere instead of just using them in the seclusion of your home or workplace. Thanks to the brilliant marketing done by Beats, headphones have now become somewhat of a staple in fashion. Nowadays you see celebrities and athletes wearing them all the time. Before headphones makers didn’t necessarily care all that much about the way the headphones cosmetically looked. But now it is becoming more and more essential to focus efforts on designing headphones that look just as good as they sound. Headphones in general are now more culturally accepted for any situation whether you’re working out at the gym, going to get some coffee at a coffee

#0623

Page 9: The Internal Environment, SWOT and Marketing Plan

P a g e | 10

shop, using them at the workplace, really they can be used anywhere for any situation at any time. This trend is very beneficial to LSTN headphones because they have designed their headphones to be cosmetically appealing as well as have good sound reproduction.

Next there is technological advancements. The most recent advancements that have affected the headphone industry is noise-cancellation, the instalment of the in-line remote and microphone and wireless headphones. With noise-cancellation, there is a microphone on the outside of the headphone that takes in outside noises and then relayed the sound back to a speaker inside the headphone that is facing away from the ear. The speaker then creates an anti-sound that then blocks the sound from ever being picked up by the ear. This has affected the industry somewhat by providing a unique feature that affects the listening experience of the customer but will jump the price of the headphones it is featured on because more electronics are required for noise-cancellation. Overall though it is not a necessity and therefore must be desired by the consumer.The next technological advancement is the creation of the in-line remote and microphone on the cord of the headphones. This offers the ability to control certain functions of your mp3 player or your phone without having to dig it out of your pocket. These functions include volume control, pause and play, song selection and the ability to take phone calls with your headphones. This feature is not all that desired but is now common among most brands of earbuds and headphones.Lastly we have the advancement of the wireless capability. This gives the consumer the ability to be wire free giving the headphones a little added flexibility. This feature has become possible all thanks to Bluetooth technology. All you have to do is just link up your headphones to your phone or mp3 player and you are set. Though to have this feature will require the customer to put down a little more cash. With that this feature is not a necessity, but must be desired by the consumer.In general these advancements just add to the possible features headphones can provide. LSTN, if they desired to, could use these advancements to further develop future product lines. With their products being made of wood, this makes their products already differentiated from current headphones. They could offer the noise-cancellation and wireless features on their wood headphones and appeal to a smaller, more niche market.

#0623

Page 10: The Internal Environment, SWOT and Marketing Plan

P a g e | 11

SWOT AnalysisA. Strengths

1. Product Differentiation2. Lower Cost of Materials3. Product Quality4. Location of LSTN HQ5. Effective Management6. Great Customer Service7. Extensive Philanthropy

With LSTN’s product differentiation, they provide a unique product that has rarely been seen in the headphone market for a reasonable price. Customers will be able to distinguish them from other firms in the market more easily. With the lower cost of materials used to make the headphones, LSTN will be able to keep the prices of their products as low as they can. The initial product quality of their products, specifically the Troubadours will help build brand loyalty over time. This is because the consumers will feel more confident in LSTN’s products because of superior product quality. Great customer service is beneficial because it is how your consumers talk to the company. With LSTN being a small company, this gives them more of an upper hand in the customer service area because they can respond not only to emails and phone calls, but also to social media posts. Other much larger firms cannot do this because of their size and the required resources to do so. Lastly the philanthropy that LSTN has provides its customers gives them an advantage because it makes the consumer who purchases their product feel even more happy about their purchase because they know that part of the profit has gone to charity. Other firms in the industry do not offer this kind of opportunity to its customers.

#0623

Page 11: The Internal Environment, SWOT and Marketing Plan

P a g e | 12

B. Weaknesses1. Small Product Line2. Weak Marketing3. Small-Sized Company4. New to the Market

With a small product line comes the possibility of a limited reach of features to customers. Certain customers may turn to a different product because of this. LSTN’s weak marketing has aided in the lack of awareness of their existence in the headphone market. With weak marketing comes a smaller reach to acquire new customers. The weak marketing is also probably due to the fact that LSTN is a small business. Being a small business means you won’t possess the amount of capital and assets other firms have. Lastly, LSTN being new to the market, means that the majority of the customers in the headphone market don’t even know they exist.

C. Opportunities1. Headphones that look and sound good have been increasing in

popularity.2. Demand for over-ear headphones is increasing.3. Demand for headphones with unique features is growing.

LSTN has the ability to chase these opportunities and capitalize on them. With the increase in headphones that look as good as they sound, LSTN has produced a product that adheres to that exact opportunity. With demand for over-ear headphones increasing, there presents an opportunity for growth in sales for LSTN. With the demand for a pair of headphones with a certain uniqueness on the rise, LSTN has also adhered to this opportunity. They provide a headphone that gives a unique listening experience that is different from most headphones. They also provide a cosmetic appeal that is different from most headphones, which will help set them apart from other brands.

D. Threats1. Extremely Crowded Market2. Consumer Loyalty With Existing Brands3. Changing Customer Tastes4. Intense Rivalry

With an extremely crowded market, it is much harder for a company to break through the clutter and reach their desired target audience. With LSTN being

#0623

Page 12: The Internal Environment, SWOT and Marketing Plan

P a g e | 13

relatively new to the market, the crowded market poses as an extreme problem they must overcome. Existing brand loyalty poses as a threat because these customers will be much more difficult to convince to purchase their product. A lot of the brands in the headphone market have been around for at least 20 years or more, giving them the advantage in the market because they have had more time to establish themselves. Changing customer tastes poses a threat to LSTN as well. With the nature of customers changing their preferences in what they like, LSTN’s products could be at risk at not appealing to their target market. Lastly, intense rivalry poses a threat because if LSTN were to hypothetically get caught up in this, they would surely not last being a small company. Currently the intense rivalry is between Beats, Bose and Sennheiser. The rivalry between Beats and Bose flared up after Bose partnered with the NFL. Bose had the NFL ban all Beats headphones from being worn by the athletes while they were on camera. Though this action didn’t really catch on with the players and unfortunately for Bose, Beats just got a lot of free publicity. The rivalry between Beats and Sennheiser began this year with a new pair of headphones that specifically targets the consumers Beats targets. In general Sennheiser has opted to take Beats head on in the market by producing a pair of headphones that has a futuristic cosmetic appeal and specializes in being bass heavy.

SWOT Matrix

Strengths1. Product Differentiation2. Lower Cost of Materials3. Product Quality4. Location of LSTN HQ5. Effective Management6. Great Customer Service7. Extensive Philanthropy

M I R3 3 93 2 63 3 93 1 33 3 93 3 93 3 9

Weaknesses1. Small Product Line2. Weak Marketing

M I R-2 1 -4-3 3 -9

#0623

Page 13: The Internal Environment, SWOT and Marketing Plan

P a g e | 14

3. Small-Sized Company4. New to the Market

-1 2 -2-3 2 -6

Opportunities1. Headphones that look and sound good have been

increasing in popularity.2. Demand for over-ear headphones is increasing.3. Demand for headphones with unique features is

growing.

M I R3 3 93 3 93 2 6

Threats1. Extremely Crowded Market2. Consumer Loyalty With Existing Brands3. Changing Customer Tastes4. Intense Rivalry

M I R-3 3 -9-3 2 -6-3 3 -9-2 2 -4

(M = magnitude of element, I = importance of the element, R = total rating of element, 1 = low/3 = high)

Competitive AdvantagesOne of LSTN’s main competitive advantages is its product differentiation. With the Troubadours being made of wood, this is a radical change compared to the other headphones in the market. This differentiation will help break through the clutter of other products because of the sole fact that the headphones are a fresh new take on over-ear headphones. Another one of LSTN’s main competitive advantages is that it provides the unique opportunity for the customer to give back with just a purchase of one of their products. That is all that is required, no need to give a donation on top of the purchase. With this, the customer will not only feel confident about their purchase, but they will feel great about themselves because they were able to contribute to a cause. No other headphone company does this, one could consider LSTN as the “Toms” of headphones. LSTN markets towards these

#0623

Page 14: The Internal Environment, SWOT and Marketing Plan

P a g e | 15

advantages by clearly presenting them the packaging of the Troubadours, helping them to stand out against other similar products in stores. The last main competitive advantage will be the fact that the products produced at LSTN are made of reclaimed wood. This meaning much lower costs for materials used to make the products which will result in lower overall prices. Plus consumers will respect the fact that LSTN is environmentally conscious and will be drawn to them for that.Now can LSTN convert its weaknesses into strengths? The answer is some of them. To be exact the weak marketing and the small product line. The other two weaknesses are completely un-controllable to LSTN. LSTN can definitely convert its marketing efforts to be much stronger. They must if they want to continue to thrive in the headphone market. By strengthening their marketing, they can market their competitive advantages to reach more of their desired target market.As far as threats go, LSTN can only adapt to them. When it comes to changing customer tastes, LSTN believes that their headphones can transcend trends. This is because they have a very simple design, which points more towards vintage headphone designs. Vintage has been “in” for quite some time and seems to continue to be “in” in the near future as well. When it comes to an extremely crowded marketplace, the only way to break through is with the help of marketing. Marketing is really the only tool that can be used to tackle this threat as well as existing customer loyalty with other brands. You cannot attract other consumers if they do not know you are there.

Strategic FocusThe overall strategic focus of the marketing plan will be to market these strengths. In a way we will take a more aggressive approach compared to the current marketing efforts. We will market the fact that LSTN has taken a simple product, being the over-ear headphones and designed them with a fresh new look and sound that is new to the market. We will also focus the

#0623

Page 15: The Internal Environment, SWOT and Marketing Plan

P a g e | 16

marketing efforts to share the philanthropy side of a purchase of these headphones. We will bring to light these strengths to the consumers in the headphones market. Lastly we will focus some efforts to make sure our intended audience knows the headphones are made of reclaimed wood. This will resonate will with them because most consumers in general will support a business that is environmentally conscious.Below are the main brands and product the Troubadour will be up against.

Marketing Goals and ObjectivesMarketing GoalThe marketing goal is to increase awareness. This goal has been chosen because this is exactly what needs to be done for LSTN.

Objective

#0623

Price Quality Sound Cosmetic Appeal

Features0

2

4

6

8

10

12

8 8 8

9

6

8

7 7

6

7

2

10

9

8

7

3

10

7

5

7

3

9

7

9

8

7

9

10

4

3

Strategy Canvas

LSTN TroubadoursSkullcandy AviatorsSennheiser MomentumBose Quiet ComfortBeats StudioAudio-Technica ATH-M50

Page 16: The Internal Environment, SWOT and Marketing Plan

P a g e | 17

The objective to reach this goal is to increase website traffic by 20%. This will require a time frame of roughly three months and this will ensure our marketing efforts will have time to reach the intended target audience. The unit responsible for achieving this objective is a combined effort of LSTN’s marketing department along with Veenker Marketing Group.

Marketing StrategyPrimary Target MarketThe primary target market for this marketing strategy is in general music lovers. These people tend to be male and female and from the ages of 16 to 30. A good portion of the music lovers also tend to be in the hipster crowd. We will aim some efforts towards that crowd as well. We have chosen to do so because they are people who tend to look for products that are not mainstream, whether it be the actual music they love or the clothing they wear. LSTN headphones, safe to say, is not considered mainstream. We came to this conclusion for obvious reasons, one being they are not leading the market. With LSTN not being mainstream, this will work to our advantage when we implement the marketing strategy. The LSTN Troubadours adhere to the music lovers and hipsters because they accentuate great sound and style. These are two components the target market will be looking for in a pair of over-ear headphones. They will want something fresh and original, yet unique and different from everything else. Most of the majority of our target market will be in urban areas, specifically big cities. Our target market also seems to be online whether it’s on a cellphone or laptop throughout most of a typical day. They are constantly connected whether it be through Facebook or Instagram, or finding out just what is happening in the world today. Regardless they have a large presence online which can be used to our advantage.

Integrated Marketing Communication Strategy

#0623

Page 17: The Internal Environment, SWOT and Marketing Plan

P a g e | 18

Veenker Marketing Group has chosen to take the IMC approach to address the overall objective and goal of the marketing plan. We also felt this would be the most useful way to communicate with our target market .The actual IMC strategy will consist of three separate YouTube ads that highlight LSTN’s competitive advantages. Putting ads on YouTube felt like the most cost efficient and effective way to hit our target market. The rationale behind this is because most everyone uses YouTube. On average a YouTube user will visit the site fourteen times per month spending roughly twenty-five minutes on the site each visit. Another conclusion as to why we will use YouTube is because with YouTube ads you can target your exact target market based on the interest, geographic location and age. When boils down to cost of a YouTube ad, we will only be charged for when an ad is completely viewed. We will also develop a series of web banners that will be placed on two of the most visited music review websites, Pitchfork.com and Noisey.com. This will be strictly an advertising strategy that will meet our marketing objective and ultimately our goal.Here are the objectives we will meet.

1. To build general awareness among the target market about LSTN’s product, the Troubadours as well as inform them that they are made of reclaimed wood.

2. To show that LSTN’s Troubadours are a pair of headphones that can be used for everyday life no matter the situation.

3. Lastly we will showcase exactly what happens when you purchase a pair of Troubadours. This will show the “Giving Back. Amplified” campaign LSTN does.

4. Lastly we will really hit the music lovers hard with very simple web banner ads featured on two websites, Pitchfork and Noisey. The goal hear is to just bring general awareness of the company.

Objective 1To tackle this objective, Veenker Marketing Group has put together an ad that features 44 pictures of people with their Troubadour headphones doing various things as well as various poses with the headphones. We synced it up to the song You’re the Doctor by Ty Segall. With that song blaring in the background we decided to sync the time of the picture change with the drummer hitting the snare drum. We did this because the drummer keeps a relatively standard beat with the snare. Most viewers will pick this up very quickly. Also by syncing the picture change with the snare drum, we were able to make the ad be a total of twenty-one seconds long. Being twenty-one

#0623

Page 18: The Internal Environment, SWOT and Marketing Plan

P a g e | 19

seconds long means that the person on YouTube who views this ad will not have the option to skip the ad. With Veenker Marketing taking the liberty to make this ad, it resulted a total of $0 dollars to make. Our goal is to get an estimated 10,000 views of this ad.

Objective 2To confront this objective, Veenker Marketing Group has decided to construct a storyboard of a YouTube ad that will showcase that LSTN’s Troubadours are a product for everyday use. There will be a song playing throughout the ad. The song is called Bodysnatchers by Radiohead. This ad will run around the one minute marker meaning people will have the option to skip. Veenker Marketing will have to consult a production company in order for this ad to be created. Our goal is to get an estimated 6,000 views of this ad.

#0623

Page 19: The Internal Environment, SWOT and Marketing Plan

P a g e | 20

Objective 3For the third objective we will showcase what happens when you purchase a pair of LSTN Troubadour headphones. This ad will run about one minute. It

will be set in a remote village in Africa. Over the video of the ad, a song will be playing. This song is called Be Patient (Still) by Smidi. The ad will also star

#0623

In this scene she will be leaving her duplex. She will then walk down the San Francisco street with the camera in front of her remaing motionless with various scene

changes every time the snare drum is hit while she walks. Her walk will

go un-interrupted as the scenes change.

She will walk into a coffee shop while the camera stays outside.

This will take a total of three secs and she will begin walking again. Various scene changes with every

snare drum hit. Camera will remain in front of her as she walks. Her

walk will remain fluid as the scenes change.

She will then meet up with some friends for a moment, the camera

will pan over there for this. She will take her headphones off and the music will stop. She will chat for about three secs, the viewer will not be able to make this out. She will then say "see ya guys later" and then continue on down the

streets of San Francisco with the camera right in front of her again.

She will continue to walk down the street with various scene changes happening in sync with the snare drum. She will then come up to a

bookstore and walk in. This is where the ad ends and the LSTN headphones logo appears saying "built for the music lover on the

go."

Page 20: The Internal Environment, SWOT and Marketing Plan

P a g e | 21

the two founders of LSTN, Bridget Hilton and Joe Huff. For this ad also, we will need to consult a production company to travel with them as well as produce this when there are done. We hope to get an estimated 4,500 views at most.

#0623

The camera will start off with a shot like this then slow rise above and pan to a group of children running into a

village.

The camera will follow the children who then run upon the Starkey Hearing

Foundation tent. This is where people will be getting hearing aids. Then a

transparent diagram will appear showing when you purchase a pair of headphones, you help restore hearing for someone in a third-world country.

Next you will see both Bridget and Joe helping install hearing aids on some

kids.After this the camera will go back to the original shot at the beginning of

the ad and pan back down to where it started. At the top left corner, a

message will appear, "Giving Back. Amplified"

Page 21: The Internal Environment, SWOT and Marketing Plan

P a g e | 22

Objective 4For the last objective we will put a series of banner ads that will appear on the websites Pitchfork.com and Noiesy.com. We decided to do this because we wanted to advertise to the music lovers on a different venue. These ads will be very simple with no clutter in them at all. We chose to make these ads simple because we want to poke at the person’s curiosity. With this we hope to get an estimated 20% increase in visits to the LSTN website. Below is the standard sizes used for banner ads along with the sizes we chose.

#0623

Page 22: The Internal Environment, SWOT and Marketing Plan

P a g e | 23

CostsObjective 1 Deliverable

Production………………………………………………………………………….………$0$.10 per view on ad with goal of 10,000 views..…………………….$1000.00Total $1000Objective 2 Deliverable

Production……………………………………………………….…………...…$2456.92$.10 per view on ad with goal of 6,000 views……………………….…$600.00Total $3,056.92Objective 3 Deliverable

Production…………………………………………………………………...….$2173.13Travel………………………………………………………………………….....…$856.18$.10 per view on ad with goal of 4,500 views……………………..…..$450.00Total $3,479.31

#0623

Page 23: The Internal Environment, SWOT and Marketing Plan

P a g e | 24

Objective 4 Deliverable

Designing…………………………………………………………………………………..$0Cost of Ad space on Pitchfork.com for 3 months..………………………....$299Cost of Ad space on Noisey.com for 3 months……..…………………….....$249Total $548Total Cost of All Deliverables $8,084.23

(These costs are subject to change)

Marketing ImplementationFor the actual implementation of this marketing strategy, it will be done in a series of three rounds. First, starting with objectives one and four, both will be implemented at the exact same. This will help ensure that our ad will have time to sink in with our target audience. Also with the help of YouTube, objective one will be able to hit its precise target market, male and females with interests in music or electronics, within the age frame of 16 – 30 years of age. The ad will not be bound by any specific geographic location because that would limit our reach. The ad for objective 4 will also run, hoping to reel in the more die hard music lovers. Both of these ads will be implemented on the 1st of December and will run until February 28th.For the second round, the deliverable for objective two will then be implemented on YouTube on January 1st and will run until February 28th. With the help of YouTube we will hit our precise target market listed in the first paragraph. We came to the conclusion to implement this ad next because the ad’s run time is over 30 seconds long. This means that viewers will have the option to skip. By putting this after objective one’s ad, we hope to have a

#0623

Page 24: The Internal Environment, SWOT and Marketing Plan

P a g e | 25

better chance of getting people who have seen that first ad and therefore would be more willing to see more about LSTN through more ads.For our last round, we chose the deliverable for objective 3. This is because it will take some time for it to be produced. By now our target audience will have a good idea as to who LSTN is. By showing this ad last we will help ensure them that purchasing a pair of Troubadours along with any other products would be great choice. This ad will run for one month, being implemented on the 1st of February and will stop running on February 28th.

Evaluation and ControlFor the evaluation and control portion we will use tools provided by Google to help track the progress of our deliverables. For objectives one, two and three, we will use YouTube’s free analytical tool that they provide. With this we can see who is actually watching our ads and how they interact with them. We can get all the statistics we need to evaluate and control these ads and we can see if our target market is responding to our ads the way we want them to. If they aren’t we can then change our target market to be more specific or even more broad. All of this is possible all thanks to the power of internet cookies.For objective four’s deliverable, we will use Google Analytics to track the success of our banner ads on the websites Pitchfork.com and Noisey.com. With Google Analytics another free tool unless you upgrade to Premium, which will help show the statistics as to if our intended target market is

#0623

Page 25: The Internal Environment, SWOT and Marketing Plan

P a g e | 26

interacting with our banner ads. It will show the amount of people who click on the ads or ignore them, it will also show if it later helps lead to a sale. In general it will show the actual reach of our campaign and its effectiveness. It is the perfect tool for the evaluation and control of this deliverable.

#0623