1. Strategic Marketing Plan
for Downham Music
Prepared for: Mr. Dodson and Dr. Wiese
Prepared by: Eminence Marketing
Team Members:
Richard Bilbee
Chris Bourgea
Zach Duke
Jason Wiese
Bryce Woodyard
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2. BACKGROUND
Downham music was founded in 1958 by the Downham family. It has been family owned and operated
ever since its inception. It is currently owned by Randall Downham who inherited the business from his
father. They offer a wide variety of services in the music industry including instrument and instrument
accessory sales, instrument repair, instrument rental, music lessons, and it also has a wonderful venue for
concerts.
OBJECTIVE
We plan to increase profits and flow of traffic into the store for Downham Music by developing a strategy
that will increase the number of private lesson students.
TARGET MARKET
We have identified the target market as musicians of the beginner and intermediate level, ranging from
ages 10-16. We want to focus on this market because it is often the students who choose to get private
lessons, because they are encouraged by their music teachers, and then they go tell their parents about it.
SWOT ANALYSIS
Strengths:
•Downham Music is not only a music store where musical instruments and accessories can be
purchased and rented, but it is also a provider of services including instrumental repairs and private
lessons.
•Downham Music has a great location on Broadway Street with excellent facilities including multiple
practice rooms and an upcoming venue which attracts musicians to come and perform. Downham’s has
recently moved into this location and it has made an immediate impact on the store.
•Mr. Downham, the owner, has assembled a very experienced staff with knowledge on all aspects of
music. We immediately noticed that the staff and Mr. Downham were very friendly and excelled in
customer service.
• Downham has made relationships with local music programs at North Side Middle School, South
Side Middle School, Highland High School, Anderson High School, Frankton Jr/Sr High School, Lapel
Jr/Sr High School, and Liberty Christian School.
•Thehighest selling products in the store are accessories, such as guitar strings and cleaning supplies,
which a musician of any experience level must acquire.
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3. Weaknesses:
•Downham does not have any high name brand musical equipment such as Fender Guitars or
Marshall Amplifiers. Without high name brand equipment, Downham’s cannot attract experienced
musicians that require higher quality equipment.
•Downham has not been able to establish a solid foundation of consistent customers.
•Downham’s website has been under construction for over a year - prohibiting them from making
possible sales and reaching new customers.
Opportunities:
•We immediately noticed an opportunity to reach other music programs at local schools and also
home schooled students.
•There are many people that do not play an instrument, but we see Downham as an opportunity for
students to learn through private lessons.
•Downham has not fully utilized the ability of the internet. The internet could be used to organize
private lessons and sell musical equipment.
Threats:
•In the local schools, many of the music programs are beginning to die.
•Downham faces intense competition from local competitors such as Dan’s Music, Music Today, and
Muncie Music to chain stores located in Indianapolis such as Sam Ash and Guitar Center.
RATIONALE FOR MARKETING OPPORTUNITY
Mr. Downham has told us that there is a direct correlation between the flow of people in the store and the
success of the business. We want to create flow through the store by increasing the amount of private
lessons. The flow of people from lessons will help improve all aspects of Mr. Downham store including
the music store, instrumental repair, and even the venue.
Research and Customer Analysis
Our Objective...
Our primary objective was to discover the awareness of Downham within our target market and
to discover if our product (private lessons) is wanted and needed.
The Surveys...
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4. We passed out 100 surveys to students at East Side Middle School and South Side Middle
School. These students were either beginner musicians who play instruments or students who
never played instruments.
•If you play an instrument; do you think lessons are worth it?
•If you do not play an instrument and lessons were being offered for a minimum cost , would
that interest you?
•Have you ever heard of Downham Music?
•Do you believe that lessons are worth it?
Our Results and Analysis...
Out of the 100 surveyed students, all falling in our target market range of ages 10-16, 79 partake
in playing an instrument and 21 do not. However of these 21, 16 of them said that if lessons were
being offered at a reasonable price, they would be very interested in taking up an instrument.
Furthermore, we asked the students who do play an instrument if they have or are currently taking
lessons and 65 students do not. However, 66% of the students vehemently agreed that musical
lessons are extremely essential. 48% of the students had not even heard of Downham Music.
From these statistics, this proves to our marketing group that there is a market to be reached that
Mr. Downham has been unable to grasp due to lack of recognition/knowledge of his music store.
We firmly believe we can change this and thus, create a stronger flow of traffic in Downham
Music.
Competitive Analysis
Our Competition...
Sam Ash
Location:
Sam Ash is located at 8284 Castleton Corner Drive, Indianapolis, IN. Castleton only 30 minutes away
from Anderson and is often perceived to be the hottest shopping spot in Indiana.
About the Company:
Sam Ash is a commercial music retail store that is very popular amongst the experienced musician. They
sell a variety of name brand equipment and hence, tend to be pricier than most competitors.
Our Observations:
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5. Upon personally observing Sam Ash’s music store, we noticed that although Sam Ash has extremely
talented employees in every designated section of the store, they lacked customer service and almost had
a sense of arrogance about them. It is very up-to-date music store in the sense that they have the latest
technology in amplifiers, recording software, and sound pedals. Prices of instruments were quite
expensive. Sam Ash only focuses on retail and they offer no other services. Also, Sam Ash has a very
up-to-date website that allows customers to purchase gear and also notifies on up coming sales.
Guitar Center
Location:
Guitar Center is located at 8475 Castleton Corner Dr Indianapolis, IN. It is located in a very busy and
popular location. It is right next to the Castleton Square Mall and a very strong competitor to Sam Ash.
About the Company:
Guitar Center is highly respectable chain music store with locations all across the United States. Their
main focus is guitars and guitar equipment. They do have other products, but their money maker and
main market is the experienced/professional guitarist.
Our Observations:
Upon observing Guitar Center, we noticed great customer service and a staff that was very
knowledgeable and willing to help. Guitar Center has very high quality products for more experienced
musicians, but also very expensive products. Just as Sam Ash, Guitar Center is a very up-to-date music
store with the best quality and latest technology. Also, Guitar Center is focused on retail and provides no
other services. Guitar Center has an amazing website that allows for customers to purchase equipment,
updates on up coming sales, and shows customers all the locations across the world.
Muncie Music
Location:
Muncie Music is located at 207 W Jackson St. Muncie, IN on a very busy intersection in the heart of the
city. It is very close to Main Street and is located close to a few schools.
About the Company:
Muncie Music is very similar to Downham Music. Muncie Music is even considered Downham’s biggest
competitor. They have a retail store, but also provide instrument rental, repairs, and lessons.
Our Observations:
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6. We immediately notice that Muncie Music was Downham Music strongest competitor. They offered all
the same services that Downham provides. Also, they have a broader range of products at cheaper prices.
They have created a very modern website and they are using it very effectively. They have made
connections with local school music programs. However, Muncie Music did not have a venue located in
their store. Also, they did lack in experience and customer services compared to Downham Music.
Competitive Advantage
Although Downham Music lacks in name brand equipment due to financial reasons, Mr. Downham and
his staff excel in customer service and have knowledgeable experience in this trade. Downham Music
provides instrumental rental and repair, lessons, a local venue for up and coming talent, and also a retail
store that is ideal for the beginning musician. Another advantage that Downham Music has over its
competitors is the affordable price of $13.75 per lesson. Most music stores such as Sam Ash and Muncie
Music Center are focused on the sale of the product and the gaining of revenue. However, Downham
Music is focused on lending out their extensive knowledge to the customer and the gaining of a long term
customer relationship. Downham Music looks to educate the customer as well as serve their retail needs.
Very few places care about the customer as much as Downham Music.
General Marketing Strategy
After research and analysis of our target market and competitors, Eminence Marketing has developed a
general market penetration strategy for Downham Music. There is no reason to change the product
(lessons) or change the market because from our research we have found that there are students who want
to take lessons that are not currently taking them.
First, we plan to enlighten the community about Downham Music through promotion. We want to
educate our target market of all the services, especially lessons, Downham Music can provide. Secondly,
we realize that Downham Music is very old fashioned and in order to reach a young age they must
modernize themselves. Finally, we must promote that Downham is more than just a retail store, but it is
an experience and a place to gain musical knowledge. We believe that through this strategy, we can make
an impact and increase traffic flow through Downham Music.
The Marketing Mix
While our team, Eminence Marketing, was reviewing the marketing mix, we discovered that there were
some variables that could not be altered. The price of lessons must remain unchanged because 73% ($10)
of revenue made from lessons goes straight to the teacher and the other 27 % ($3.75) goes to Downham
Music. The product, the lessons, obviously cannot be changed. Although these two important parts of the
marketing mix remain unaltered, we realize that there is a must for modernizing the store. Also, we can
affect the availability of our product by making various suggestions. While all of these are equally
important for making a business successful, we have analyzed the marketing mix and decided to devote a
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7. majority of our time on promotion, simply because this is what we feel is necessary to increase traffic
flow in Downham Music.
Our Suggestions
Modernization...
Before Downham Music moved into its current location, a church occupied the estate. Close to
two years later, evidence of the church are still present at Downham Music. In order to
successfully reach their target market, we recommend that Downham Music should shy away
from their current decorative strategy. We believe that the set up of the store inside and out is a
bit old fashioned and believe that changes such as a new paint scheme, modern music being
played when people enter the store, and modernizing the current logo to something that is more
appeasing to the eye will create a better experience for customers. Furthermore, Downham Music
should embrace the internet and its useful resources.
Availability...
Increasing the availability of lessons is a great way to increase traffic flow. Downham Music
currently only offers lessons three days out of the week. By simply holding lessons everyday of
the week, this would allow young musicians to come and partake in lessons at a time that is most
convenient to them and their parents.
Promotion...
•Commitment Plan
The commitment plan would allow musicians to purchase lessons for three or more months.
This would guarantee that Downham Music would create a loyal customer base over this period
time. By purchasing lessons in bulk, the musicians would be given a discount, which would
make payments easier for parents and would also encourage the student to continue his/her
relationship with Downham Music.
• Movie Theater Ad
According to the National CineMedia, a company which enables local businesses to promote
themselves before the showing of a movie, 45% of families in a local community see a movie at
least once a month. According to the Anderson City Clerks office, the current population of
Anderson, Indiana is 59,734. This means that 26, 800 people per month could potentially become
aware of Downham Music if they were to promote at the local movie theater. A fifteen second ad
is $100 a month and would be shown before every movie. Although some consider this a major
investment, we believe that the return would be greater. This is a great chance for Downham
Music to connect with their target market because 10-16 year olds attend movies quite frequently
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8. and are often accompanied by their parents. In the past, advertisement has been misused by
advertising at local diners which typically serves a target market with a much higher average age.
The advertisement would include all of the services Downham Music can provide, but would
have an emphasis on lessons and the education of musical instruments.
•Instrument Brochure
Our research has shown that students involved with their school’s music program are
unaware of Downham Music, yet are still very interested in finding lessons. We propose
that Downham Music should include promotional material in all equipment that is sold
to the music program at schools. When a student receives his or her instrument, he or
she would also receive all the information about Downham Music on a brochure located
in the case of the rented instrument. Also inside the case, we would include a form to
sign up for lessons which could be given to the music instructor and then handed in to
Downham Music to set up the students future lessons.
•Director Encouragement Plan
As previously stated, students involved with their school’s musical program are unaware of
Downham Music. We believe Downham Music needs to have a direct relationship with music
directors in order to promote lessons. Downham Music would set up a plan to encourage music
directors to promote lessons at their establishment. If more students take lessons at Downham
Music, the music director would receive discounts on supplies and instruments. With
encouragement and support from local music directors, Downham Music has greater potential to
increase the flow of traffic.
•Myspace
Downham Music has yet to use the internet appropriately. Downham Music does have an
internet server, but does not have a website because of the lack of knowledge and time to
construct and manage one. Myspace would be a great solution to Downham’s internet issues.
Having a Myspace account would enable Downham Music to make website updates extremely
easily. Also, Myspace would not require a lot of maintenance. According to HitWise, a
company which tracks website views in the United States, Myspace is the number one most
trafficked site on the internet. Better yet, Downham Music would benefit from Myspace because
the target market they are trying to reach is the same that is constantly on Myspace. Myspace
could be used to promote lessons and update those who already partake in lessons. Also,
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9. Myspace could be used to promote upcoming events regarding the store, promote all features of
Downham Music (repair, lessons, retail), and could even be used for buzz marketing with the
Myspace Top 8 feature. It is evident that the tools of Myspace can help Downham Music reach
their desired target market and promote lessons.
•Connecting with the Community
Downham Music must find a way to connect with the local community. We suggest that
Downham Music should create a direct relationship with other local businesses. The business
which we believe would be most beneficial is Ricker’s Convenience Store. Ricker’s is based in
Anderson and is highly involved with the community. Jay and Nancy Ricker are involved with
many organizations and they also serve on many different boards in Anderson, including The
Chamber of Commerce, Habitat for Humanity, and the board of the Anderson Symphony
Orchestra. Being on the board for the Anderson Symphony Orchestra, shows the Ricker family
has a passion for music and acknowledges that enhancing one’s knowledge in music is extremely
beneficial. The education of music is something which Downham Music can provide through
their lessons. Also, Ricker’s has extensive experience dealing with our target market through
Ricker’s pop, which is very popular amongst 10-16 year olds. Creating this relationship with
Ricker’s would also help with advertisement, publicity, and networking. Hence, we believe
Downham Music must connect with local businesses, preferably Ricker’s, in order to connect
with the community and, ultimately, their target market.
Synopsis of Our Work
Eminence Marketing completed the following tasks in order to present educated recommendations to
Downham Music:
•Completed a situational analysis to discover Downham Music’s target market, strengths, weakness,
opportunities, and threats. After successfully completing the SWOT analysis, we created the objective of
creating more traffic flow through the lessons program at Downham Music. We decided on this because
there is a direct correlation between traffic flow created from lessons and revenue made from the retail
side of the business.
•Distributed surveys to 100 students in our target market to find the awareness of Downham Music
amongst our target market. We also were trying to discover if our product (lessons) were wanted and
needed.
•Analyzed and compared Downham Music’s competitors.
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10. •Identified Downham Music’s competitive advantage.
•Evaluated the current market mix to develop recommendations for improvement.
Downham Music has the potential to become a premier store in Anderson. However, in order to
accomplish this, Downham Music must realize that in order to appease their desired target market, the
store must become more modernized, offer lessons more days per week to increase availability, and
promote their product in ways that will reach their target market successfully. We believe with our
suggestions, Downham Music can reach the objective of increasing traffic flow through lessons within the
target market.
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