Polyphonic HMI is in the process of establishing their Hit Song Science technology in the music industry. Major issue is the choice of a target market that would make most effective use of limited $150,000 marketing budget. Following this decision, Polyphonic HMI also needs to determine its key marketing strategies such are pricing, positioning of the product for the target market in order to maximize the profits.
ANALYSIS OF INDUSTRY (based on Porter’s 5 Forces)
The music industry is highly competitive. The key players in the industry are the artists who write, compose, and perform the music; record companies who publish the music; and producers who help the artist select music …show more content…
Alternative 3: Target Producers (estimated potential market size of 10,000 albums/ year).
Pros: HSS is an assisting tool to developing hit records and singles. Opportunity to receive royalties from retail sales of successfully predicted singles/albums. Cons: Producers rely on experience, skill and gut feelings when producing music, so HSS may be viewed as an immediate threat to their trade. The market size of producers is also relatively small and would require significant market penetration in order