MKT 3300-003 Professor Soysal Group 8: Amanda Buhrkuhl Ashleigh Lofton Brittany Wall David Booth Royce Widjaja Sigourney 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

Company 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

Competitors Strengths: Skip forward & backward 6 months free trial Easy connection with Facebook Simple music library Usable without internet Free Real-time feedback 15M songs Connected with xbox360 & GoogleTV 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 Clutter & complicate usage Lots of songs, but all of them are from the same 400,000 artists Huge amount of ads 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 11.4% market share Revenue: $480M 60M active users 30M registered users 75% share of worldwide digital music Revenue: Unknown Subscribers: Unknown

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 Analysis Strengths: Weaknesses: Opportunities: Threats: 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 Segmentation Age Group Estimated Price Sensitivity Needs & Wants Usage Best Ways To Reach Users Ages 13-17 22% High Simple, entertaining Smart 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 Ages 50 & up 13% 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

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