Michelle+January

toc

Strategy report
TO: Proximity Music Team FROM: Michelle January DATE: 9/28/09 SUBJECT: Clear Channel Communications strategy analysis

Here is my strategy analysis for Clear Channel Communications. Clear Channel continues to dominate the radio and music industry. They will have no problem staying above their competitors if it continues attract a diverse group of consumers and introduce new services. Gen-Y users will keep supporting this company as they develop a more digital strategy.


 * Profile**

Clear Channel Communications is the largest pure-play radio station owner and operator. It owns the largest selection of full power AM, FM, and shortwave radio stations and twelve XM satellite radio channels. This company was founded in 1972 by Lowry Mays and Red McCombs. Currently Clear Channel is overseen by its CEO, Mark Mays out of its main headquarters in San Antonio, Texas.

Clear Channel now reaches more than 154 million people. It has more than 97 million listeners every week with about 1,200 radio stations in operation. It also has over 240 stations in Australia, Mexico, and New Zealand. Clear Channel records more than $3 billion in revenues annually. (Wikipedia, 2009)


 * Competitive Landscape**

Clear Channel owns stations in 247 of the nation’s 250 largest radio markets. Many other businesses view Clear Channel as a monopoly and having predatory and anticompetitive business practices. (Lyndall 2004) In 2001 this company was accused of running an “illegal monopoly that thwarts competition” by an independent concert promoter in Denver. (Boehlert 2001)

Business advertising and consumer demographics drive demand in this industry. The profitability of individual companies depends on advertisement volume, programming mix, and efficient operation. The companies that are closest to competing with Clear Channel are Cumulus Media, Cidadel Broadcasting, and CBS radio. Small companies can also be competitive by the use of special programming or broadcasters who attract large audiences.


 * Clear Channels’ Strategy**

To stay on top Clear Channel keeps diversity as a primary part of their strategy for competing in the marketplace. Its top leaders say that their workforce is very creative because of the variety of personal backgrounds, culture and business prospective that are brought to the table. They draw upon unique backgrounds and experiences to develop better solutions, faster results, and an extraordinary vision for the future. (Clear Channel 2009)

Clear Channel also plans on moving to a more digital delivery of music. There strategy is to stream radio to mobile phones, computers and other devices. Recently they released an online media player that secures access to about 850 radio stations at IHeartradio.com. (Yao 2009) Clear Channel also hopes to increase revenue with internet and mobile ads to reach an even larger audience.


 * Gen-Y implications**

Clear Channel communication controls the majority of the radio industry so Gen-Y consumers very rarely have never used services that this company provides. This company is able to reach out and attract a very diverse group of consumers. Clear Channel is continuously researching to create new products and services to introduce in order to better serve their Gen-Y consumers. Right now Clear Channel is moving to a more digital strategy to distribute its services. Executive vice president, Evan Harrison said “Our custom digital programs are connecting consumers to brands in entirely new ways” to explain the significantly increased levels of consumer engagement this company along with its partners are receiving. (Clear Channel 2009) I think that as long as clear channel continues to have innovative ideas they will keep increasing its appeal to the Gen-Y consumers.


 * References**

Boehlert, Eric. Suit: Clear Channel is an illegal monopoly. (2001, Aug 8). Salon.com. Retrieved September 25, 2009 from http://dir.salon.com/story/ent/clear_channel/2001/08/08/antitrust/index.html

Clear Channel. (2009). Corporate. Retrieved September 23, 2009 from http://www.clearchannel.com/Corporate

Lyndall, Craig. Clear Channel Charged with Crushing Competition. (2004, Apr 20). Blogcritics.org. Retrieved September 28, 2009 from http://blogcritics.org/culture/article/clear-channel-charged-with-crushing-competition/

Wikipedia. (2009, September 29). Clear Channel Communications. Retrieved September 29, 2009 from http://en.wikipedia.org/wiki/Clear_Channel_Communications

Yao, Deborah. Radio Giant Clear Channel Amps up Digital Strategy. (2009, June 8). Abc news. Retrieved September 29, 2009 from http://abcnews.go.com/Technology/wireStory?id=7782794

Blog proposal
TO: Proximity music team FROM: Michelle January SUBJECT: Blog post proposal DATE: 10/26/09 I propose that we do our blog post on the development of digital music distribution. This post will show the effects of new technology and how it is changing with the new generation. We can also use this post to show the benefits of digital music to people who do not currently make use of it. The growth of the digital music industry is contributed to the increased demand to download and listen to music online. Album sales are declining because the Gen-Y are becoming more modernized. They are seeing that it is more convenient to be able to pick their favorite songs instead of wasting money on a whole CD. Then they have better technology, such as the iPod, where they can listen to their library of music anytime and anywhere. Companies in this industry are realizing that they have to become digital or else they will probably go out of business. I suggest that we use the information from the blog, __Future Music__, to show the new technology that companies are coming out with. [] We can embed these materials from this blog: []
 * Rationale**
 * Sources**

[]

Report proposal
TO: Proximity Music Team FROM: Michelle January DATE: November 19, 2009 SUBJECT: Proposal for report on Google

Google has been the largest search engine for years blowing competitors out of the water. Now by introducing a new music search feature Google is making its way into the music industry and becoming a threat to similar services. I propose to write a document on Google making the attempt to enter the streaming music market.


 * Need**

The fight for who will be on top within the music industry continues as new technologies are introduced.

• Google is positioning itself to become a one-stop shop for music searching and purchasing.

• Becoming partners with other established music businesses is a key opportunity for Google in order to be a threat to its new competitors.

• New search engines will drive revenues of music distributors which puts them in favor of this new innovation.

• Google does not currently sell the music but directing millions of internet users to partnered sites is indirectly boosting sales which are threatening to the industries leader, Apple.

Everyone in the digital music industry needs to take notice of Goggles uprising. Its service is growing and one day it could be all a consumer needs to search, listen, and purchase music. Google currently has control of most of regular web page search users so consumers are already comfortable with using its services and will not have any issues with using its new music features. Competitors will be struggling to stay on top of this market.

Gen-Y, as well as clients of proximity who are interesting in the music industry, need this report to see the new features Google is offering and how this will be affecting other music providers.


 * Topics**

The proposed report, “Google’s strategy to be on top,” will cover the following topics:

• Google’s new service features vs. other music searches

• Most significant implications around Google’s music search

• Competition in the industry

• Future plans for Google

This report will also include examples of using Google as a music search and compare that to other music search engines.

Sources

Below are some key sources to be used for the report. I still need to research more information on other music searches and future plans for Google.

Buskirk, Elliot. ‘Google Audio” to Mash up 4 Cool Web 2.0 Music Services. Wired (2009, October 23). Retrieved on November 18, 2009 from http://www.wired.com/epicenter/2009/10/google-audio-lala-ilike-pandora-and-imeem/

This blog offers information on completion with other search engines and future features to be offered by Google. Burskirk believes that Google will be a one-stop shop for music and that this introduction of new services by the advertising and search giant is an ambitious one. He makes references to Pandora, iTunes, and Lala and explains how they affect or will be affected by this powerhouse. He also talks about the new android released by Google and how that will affect its competitors.

Cheng, Jacqui. Hands-on: Google music streams useful, not revolutionary. Arstechnica (2009, October 29). Retrieved on November 18, 2009 from http://arstechnica.com/media/news/2009/10/hands-on-google-music-streams-useful-not-revolutionary.ars.

This blog offers example of using Google’s new music search and compares it to other searches. It has pictures of results from different searches. Cheng also talks about how Google’s music search is currently limited to the US. He also talks about licensing with music labels and how that has an effect on the music industry.

Google’s new revenue stream: books and music. Pandia (2009, October 31). Retrieved November 18, 2009 from http://www.pandia.com/sew/2213-googles-new-revenue-stream-books-and-music.html.

This site talks about Google’s economic success and how it plans to expand it by offering new services of book and music searches. It says that Google plans to challenge apple iTunes even though consumers cannot buy directly from Google yet. Pandia lists partnered sites and says that Google will receive a percentage of the sales generated.

Grove, Jennifer. Google Music Search: 3 Major Implications for the Music Business. Mashable (2009, November 7). Retrieved on November 18, 2009 from http://mashable.com/2009/11/07/google-music-implications/.

This site talks about what Google’s search gives consumers. It also goes into detail about the 3 most significant implications around Google’s search. Which are iTunes: market share will decline, Google: this generations Billboard, and MySpace: relevance once again. Grove also talks about the industries leaders and how they need to watch out for Google.

Heater, Brian. Google Music: iTunes Killer or Bing Breaker?. (2009, October 27). PCMagazine.com. Retrieved November 18, 2009 from LexisNexis Academic.

Heater talks about how Google might be after Microsoft not Apple. He believes that Google will create a struggle for both of these companies. Microsoft is soon releasing its own music site called Bing and this is predicted to be a huge competitor to Google’s new site. Heater compares all three companies and gives his opinion on who will come out on top.

Bruno, Antony. Discovery Channel. (2009, November 7). Billboard.com. Retrieved November 18, 2009 from LexisNexis Academics.

Bruno writes this article to show how Google’s enhanced music search could boost artists and digital services. He says that Google ill not only provide the largest platform for music discovery but it will drive traffic and revenue to their partnered sites. He gives percentages and figures in order to compare and contrast goggle to other competition.

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus


December 9, 2009

Roy Khalilieh, The Director of Marketing The Sony Corporation of America 550 Madison Avenue New York, NY 10022

Dear Roy:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Sony’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the release of Google’s new music service.

As you noted yesterday, Sony feels that it must establish brand identity with Gen Y now in order to sell its products that will be able to incorporate Google’s music service. I believe Proximity can work with you to devise a comprehensive campaign that uses on-demand media and social networking to achieve that goal.

We can provide you with customized survey and focus group results to help shape Sony’s image as a competitive, well built company. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Sony on social networks such as Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Sony’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Michelle January Associate Media Analyst


 * About Proximity**

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns