DEEZER MARKETING PLAN Hult International Business School Team 9 1 2 Deezer Marketing Plan Market Summary Deezer is a France-based online music broadcasting platform that allows users to listen to music content from record labels. Market Share: Even though Spotify is one of the most significant music streaming services globally, despite its arguably immense popularity and an impressive number of subscribers, it has not reached global domination just yet. Deezer has more than tripled its worldwide subscriber base in the last few years. Leadership: Spotify maintains the leadership of the market, but Amazon, Tencent and Google have made big gains in the first quarter of 2021. Streaming Music Subscriber Market Shares Q1 2021, Global Pandora 1% Yandex Deezer 2% 2% Others 9% Netease 4% Spotify 32% Google Music 8% Tencent 13% Amazon Music 13% Spotify Apple Music Amazon Music Tencent Google Music Apple Music 16% Netease Deezer Yandex Pandora Others Players: Some of the prominent players in the music streaming market include Spotify, Apple, Amazon Music, Google Music, Deezer, Pandora Media, SoundCloud, and Tidal. Market Shifts: As of 2020, the outlook for the music industry hadn’t looked so good in decades. Streaming not only changed the music industry, but it was also its salvation. When COVID-19 came, the music streaming market was placed at over $20 billion. Deezer.com 3 Costs: Streaming services pay record labels, songwriters, music publishers, artists, and others per stream. Pay per Click Music Streaming Service Spotify Tidal Napster Apple Music Deezer Amazon Music Pandora YouTube Avg. Pay Per Stream $0.00437 $0.01284 $0.019 $0.00783 $0.0064 $0.00402 $0.00133 $0.002 Pricing: Although Deezer can be used for free, and no payment is required, for customers to enjoy an ads-free experience, a premium is offered at $9.99 a month. In addition, Deezer presents HiFi Fidelity sound experience and Family plan at $14.99 per month. Lastly, an annual premium can be purchased with a 25% discount for $89.91. Competition: Deezer’s top competitors include SoundCloud, Spotify and Tidal. Company Employees Funding Estimated Annual Revenue per Year Tidal 238 NIL $166.9M SoundCloud 1262 $542.8M $165.7M Spotify 7085 $11.3B $10.8B Pandora 1930 $921.2M $1.7B Apple Music 65 $50M $4.1B Deezer.com 4 Customer Experience Deezer’s audience can be described as enthusiastic, engaged, and curious. They share a real passion for music, have very eclectic listening habits, and seek out new things. Some positive reviews of Deezer reference their good UI, the flow of songs, how quickly it recognizes the music you like, its sound quality controls are easy to understand. Also, The Equalizer is built into the app. However, Deezer is not as user-friendly as customers would like; 59% of customers who accessed and used the services of Deezer recorded negative feedback about the quality of services. The high percentage of customer experience was attributed to technical issues, billing issues, and limited podcasts options for the customers. A high score of bad customers experience proves that the organization needs to relook into its strategies and develop strategies to improve customer experience. 80% of customers are under the age of 35, and 93% of customers prefer local music as per their region. RECOMMENDATIONS The best way to deal with bad customer experience is by focusing on complaints and implementing strategies that help deal with the issues raised by customers. 1st Allow customers to select the playlist of their liking during trial period. 2nd Upgrade system to ensure it is accurately charging subscribers. 3rd Introduce different billing approach and include trial plan. Competition It is common knowledge in every industry that competition is inevitable. As a brand grows, it attracts excellent minds with better ideas who seek to either provide the same services as your brand, provide better services than your brand, or even do lesser than your brand, but the bottom line is, there would always be competitions. “Competition is part of life, and especially of business. You can constructively harness competition for teams, but it can also be incredibly damaging and detrimental to a team or company’s culture.” Robins (2021) KEY INSIGHTS ABOUT D EEZER’S COMPETITORS, IN NO ORDER. Spotify Strengths: It offers songs, podcasts, and channels. Spotify features targets artists who have more streams and give them exclusive features on most streamed playlists. It also has a free trial available and over 30 million songs. Weaknesses: Free version does not allow offline music; it has lower quality and ads. Tidal Strengths: It offers its subscribers exclusive content from Jay-Z friends, it includes standard and highquality, plus HD music videos, has over 50 million songs and 190k music videos. Weaknesses: It is the most expensive, and it does not offer a free option. Soundcloud Strengths: Artists are allowed to upload, record, and promote their music. They include a free option, and a free trial is available. Its database is 120-150 million songs. There is a constant stream of new Deezer.com 5 music, and new music is released before elsewhere. No login or sign-up is required to use the platform. Weaknesses: It has poor product design and lacks focus on its strength. It also does not allow the creation of albums. Pandora Strengths: It is integrated into many vehicles and devices, it creates channels right off the bat, recommends based on Music Genome Project information, it also has versatile ways to make stations – songs, artists, playlists, genre, moods, etc. It also includes Offline music playback. Weaknesses: It only has 1.5 million songs; it is only available in the United States, New Zealand, and Australia. It also has one of the lowest qualities in music. Brand Positioning Deezer is identified as the premium online music streaming application positioning itself in the premium segment. The advantage is "the unique flow independently selects the user's favorite music for his preferences based on the previous search queries on the platform and makes new recommendations that do use of service by much more comfortable." The tariff policy of Deezer for subscribers is thought of well over and differentiated. Deezer considers the solvency of the population and the prospect of the development of services in this territory. Company: Deezer Overview: Deezer is a provider of music streaming services designed to offer personalized music tracks Founding Date: Type: 2007 Private Tags: Music Valuation: 1.2B Soundcloud SoundCloud is an online audio distribution platform that enables its users to upload, record, promote, and share their originally created sounds. 2007 Private Application software, audio, distribution, music, platform, social networks. 700M Spotify Tidal Pandora TIDAL is a music streaming service with music videos and curated editorial Pandora is a music streaming and automated music recommendation service. 2014 Subsidiary 2000 Subsidiary Music, Streaming. Music, platform, video. Consumer Software, music, radio, streaming. 55.3B N/A N/A Spotify is a provider of commercial music streaming service that offers restricted digital content from a range of record labels and artists. 2006 Public RECOMMENDATIONS 1st Align itself with the local market to increase its subscriber base. 2nd Increase artist’s revenue, by doing so, they will be more willing to collaborate and promote Deezer. 3rd Invest significantly in US-based live music streaming start-ups. Deezer.com 6 Communication Strategies CUSTOMER JOURNEY THR OUGH THE STAGES Awareness Online Ads: Deezer currently does not do enough Online Ads. Search Engine Marketing and PPC: Deezer currently is placed 6th on the list of Search Engines. Influencers: Deezer does not currently use influences to create awareness of its platform. Consider Social: Deezer currently only uses Facebook and Twitter, and their Instagram is poorly managed. Online Reviews: Deezer positions #94 in the Chart of Apps for Music Streaming, it is rated 4.7 in the App Store and 4.4 on Google Play. Evaluate Apps: Easy to download and crashes easily Website and SEO: There is a live chat for customer service Direct Emails: Buy Promotions: Deezer’s promotions are: one month free, 25% off for annual subscriptions, no commitment cancel anytime. Enjoy Social Experience: Users can receive tailormade suggestions, artist can create playlist to receive more click, Deezer’s also partnered with companies like Sonos to expand its service in the U.S., in that case taking the high road by offering a paid, high-definition service to Sonos’ audiophile users for $19.99. Collaboration with the Deezer app on Fitbit Ionic, Fitbit Sense, and Fitbit Versa series, you can download your Deezer playlists and Flow directly to your watch. After you download music, connect Bluetooth headphones or speakers to listen to your music Advocate and Bond Membership: Deezer has a premium membership and Hifi for a better experience. Forums: Deezer has an online community for subscribers to stay connected. Tactics by Target Audience Deezer targets more growth with local focus by working with local artist to advertise the local audience. Public Relations Plan Deezer is partnering with companies across telecommunication, media finance, retail, cable TV, mobile telephony, and e-commerce industries. Deezer.com 7 Brief Outline of the Plan Pricing Hifi will be the next premium – most superior music experience Three months free trial period Student Discount Special discount with festival tickets (which Deezer sponsors) Code for discount given by social influencers Special discount with local artist code (EG. “OJO2104” TO GET 10 DAYS PREMIUM FREE) Distribution Channels of distribution All online streaming, they source their content through digital distribution provider, to where they deliver the track to the music streaming companies, and they verify they are available online in the platforms they have selected. In current scenario, independent artist or label cannot directly approach Deezer for them to distribute their music. Increase social media interaction. Only 281k on Instagram, sponsor posts and ads on Facebook, Instagram, Twitter, and Amazon with specific target. Improve Online support. Create a real live chat to support customers. Invest in integrating the software to increase the quality of sound. Hifi is not available on the phone. Success Metrics First year goals: increase tie up with local artist and this will help you increasing the market share that helps us in penetrating new markets Increase social media reach including tie up with influences and artists Reach 20% increase of subscriber base (Actual: 60M – Goal: 72M) Additional year goals: Start sponsoring local events with local artists Use Artificial Intelligence and machine learning to improve the customer experience and increase online ratings by .1 points. Measures of success/failure: Number of subscribers Improvement of sound quality Reach new markets Number of artists on the platform Number of tracks on the platform Time subscribers spend on the app Requirements for success: Keep up with music trends Technologically driven innovation Original content Personalization Deezer.com 8 Localization Content creation Deezer.com