Date post: | 07-Jul-2015 |
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Non-Traditional Retail Opportunities
Expand reach of music into a larger number of locations addressing:
- Evolving consumer purchasing habit
- Eroding traditional retail shelf space
Viable and growing source or revenue
Complements and enhances marketing reach artist campaigns (new releases and catalog)
Develops long term partnerships with established retailers outside of traditional account base
Importance of Non-Traditional Retail
Michael BarberConsultant for NordstromBillboard February 2010
“… the decline of the cd has been due to the fact that there are simply fewer places to buy them. We are finding that customers still have an appetite for cds…When you
make it available, They still want it”
“ A lot of the magic is happening at non-traditional retailers. Probably the biggest thing that’s happened – at least in
fashion retailing over the last three years - is the growth of the flash sale sites such as Gilt, RueLaLa, HauteLook and
Ideeli”
Karl HallerVP Strategy Brooks BrothersThe Hub March/April 2011
TraditionalTraditional
Music part of the core business
- Designated outlet for music sales
- Consistently carries music to varying degrees
Retail buyers are familiar with music and general knowledge of music industry
Product treated as both art and commerce
Attracts music consumer (impulse plays less of a role)
Lower margins (15-30 points)
More flexible price points
Returnable product model
Negotiated promotions
Higher SKU count
Non TraditionalNon Traditional
Music not a part of core business
- Not a designated outlet for music
- Repetitive business contingent upon continual success of promotions and specific title selection
Accounts rely on SME’s expertise to provide customized assortments to help the retailer connect our product to their shopper
Product treated as standard consumer product (all commerce, little art)
Brings music to the shopper (high impulse purchase)
Higher margins (40-50 points)
Lower priced product
One way sales on various product lines
In & Out promotions
Lower SKU count
Account Characteristics
Grocery
Kroger
Supervalu
Wegman’s
Whole Foods
Drug
CVS
Duane Reade
Rite Aid
Walgreens
Department Stores
Century 21
Kohl's
Nordstrom
TJ Maxx
Other
BJ’s
Cracker Barrel
Radio Shack
Toys R Us
Convenience
7-11
Flying J
Pilot
Travel America
Specialty
Dress Barn
Justice
Maurice’s
Urban Outfitters
TV
HSN
PBS
QVC
Shop NBC
On-Line
Beyond the Rack
Gilt Groupe
Ideeli
Rue La La
Catalog
Collector’s Choice
Daedalus
Follett
Midwest Tapes
Where We Sell
How We Can Work Together
• Mass appeal artists work best. The more universal the artist and their release the better.
• Margin demands are higher so flexibility on wholesale cost is necessary.
• Willing to experiment with different models. (Digital cards, music + merchandising, scan based trading, etc.)
• Artist participation in certain channels critical in garnering interest, especially in TV, online and specialty retail.
• The further out knowledge of the release the better. This sector of retail has longer lead times than the traditional market.
• Information about any artist marketing tie-ins or endorsement deals.
• Need to convey information in “non-industry” languages.
• Complete understanding of the full marketing plan.
• Approach must fit the retailer and create value for their shopper.
Name of Client: Rue La La
Type of Store: E-Tail/Online Flash Sales
Invitation-only online retailer
Client Demographic: Female, 20-35
4 million members
• Rue La La partnered with SME to sell a variety of collections in a 36 hour on-line flash sale • Sale supported by email blast to Rue La La’s +4 million members • Promotion featured 30 collections, and 10 high-end ($800) icon prints• 14 icon prints and 2700 collections sold in 36 hours
Name of Client: Justice
Number of Stores: 900 (located mainly in high-traffic malls)Type of Store: Clothing RetailerClient Demographic: “Tween” Girls 7-14
Willow Smith• We are in the process of closing a deal with Justice that would make Justice Stores the Exclusive Retail location for Willow Smith Apparel and Accessories through Holiday 2012.
• In addition to the Exclusive merchandise deal, Justice will also carry Willow’s debut CD in their store; Initial orders for the CD could be in excess of 20k units.
• Justice will provide a enormous amount of marketing support for Willow Smith which includes Catazine placement for the merch & CD, heavy rotation on their in-store Tween Network, and exposure on Justice’s website.
Name of Client: Scholastic
Global children's publishing, education and media companyType of Store: Catalog and On-lineClient Demographic: “Tween” Boys and Girls 7-14
• Scholastic reaches millions of children daily via book clubs, catalog mailings and other school activities
• Prime placement was secured in catalog mailings with additional website support and news articles
• 15,000 Big Time Rush units were sold to Scholastic one way • Scholastic soundscans
Florence + the Machine
• Gilt City partnered with artist management to be the exclusive presale partner for all 9 stops of her upcoming U.S. tour
• Ticket offer included one of a kind poster designed by Florence Welch exclusive to Gilt members
• Sold out in all Gilt City markets within minutes
Name of Client: Gilt Groupe
Type of Store: Provides online access, by invitation only,
to luxury brands at reduced. Each sale lasts 36 hours.
Client Demographic: Female, 20-35
5 million members