Business Studies Case Study on a Music Industry (With Diagrams) Essay Example for Free

Business Studies Case Study on a Music Industry (With Diagrams) EssayBenny, a class 9 boy who excelled in the art of singing wanted to make use of his archaic talent and raise money for his future education. He set up a small period business with 2 of his friends to raise money, as he was very poor. One of his friends Sam decided to keep accounts as he was skilled at Maths and had a good understanding of what price to set. some other of his friends Josh was in charge of building personal relations with some consumers to enhance sales as he had excellent persuasions and people skills. All three of them thought about diffe hold marketing strategies. They conducted look and found* This was a gap in the market as there are few smart child singers going public* Most of the people in their class were willing to buy the CD at a reasonable price, his juniors and seniors were also willing to buy,* There would be an excitement about the record record phonograph phonograph album only for he first few weeks as the three of them had built considerable hype for the entry of the event,* Knowing Benny personally helped as people knew that they could associate and comment on his album, selling the album anywhere else would not earn enough.* They would need to add a lot more value to the album like adding a live video of Benny singing and dancing and a virtually DJ mixed song.They calculated the cost of making one CD* They had to pay a monthly rent of Rs 10,000 for the recording studio apartment for one month but due to lack of funds the owner of studio allowed them to pay 50% after 4 months* Printing the cover page of the CD- 5 Rupees* Cost of exonerate CD 15 Rupees* Cover of the CD 10 Rupees* Other Rs. 5000 per monthThey did not think that they could do all the work themselves and hence employed 20 members of their class and promised to pay them 100 Rupees if they managed to sell 20 CDs each per month. They worked under the sales department.The album was la unched in January and Sam decided to sell each CD for a cost of 99 Rupees. The first month the 3 of them sold only in their instruct and to their close friends and were able to sell 500 CDs in cash while another 250 were sold in recognition.The next month the 3 of them decide to go outside school after taking guest feedback through questionnaires, interviews and observations and improving the mistakes they made in the album. Then they decided to market the CD throughout Mumbai and were promoted and sponsored by planet M, as Planet M is a well known music shop which supercharged 10000 per month for advertising. Every week on a Saturday, which is statistically Planet Ms day with the most footfalls, a special promotion took place where Benny sang live in the store. Planet M also advertised this in the Rolling Stones Magazine and newspaper.Benny became an instant hit and at the end of the year they sold 1000 CDs per month in cash and 500 CDs in credit that was to be paid by the nex t month. Now Benny and his friends have decided to sell the rights of the album to Tips Industry limited for 500,000 so that they could sell whole over India. They took this step as there placard exams were approaching but as per the contract Benny has to perform about 1 stage turn up per month all over India and gets 10,000 Rupees for doing so.