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Thursday, March 31, 2011

The iPod Revolution


When you think back these past 10 years, you can’t imagine that time went by so fast. In a blink of an eye we entered the new millennium, experienced extreme terrorist acts, new wars, the last few chapters of the space program, the loss of very talented and iconic hero’s and the list goes on. It’s been a very interesting decade filled with extreme highs and extreme lows. But personally I think the most exciting achievements were made in the entertainment industry.

One word… Internet. The roots go way back to the 60’s but became a more public image in the 90’s while it really took off in the 00’s. With this amazing new “service” we can have the whole world in our hands without any limitations. For most of us, looking at the millennial generation, we use the Internet as our primary source for entertainment. Whether it’s social networking, watching movies, finding a lost friend, looking up your closest theater or shopping, entertainment is one of the main things we do on the Internet. This is where Apple comes in or actually, the vision of one man, Steve Jobs.

Your moms and pop’s music store is closing all over the world or losing business fast, and it’s not just because of a poor economy. The biggest upset in the record store industry came when Virgin announced the closing of their record stores across the world and especially the US. A company that made $280 million annually got shut down by the digital music age in a matter of a few years. This proves just how much the digital music age has affected the record industry and the music industry in general for that matter. (2009, paragraph 6, All US Virgin Megastores To Close By June)

But through all of this one man is smiling, Steve Jobs. He saw the future of the music world and took that gap. He changed our music lives forever and in 2001 introduced to the world… the iPod. A small device you can carry in your pocket while holding more then 1000 songs? The world was in disbelief, that’s amazing! And amazing it was. (n/d. paragraph 1, How has Apple Taken the World Pie?)

Two (2) years later Apple went a step further and in 2003 introduced iTunes. The biggest music store; available to me in my own house, by using a mouse. We don’t have to leave the house anymore to go buy a record. This was the beginning where record stores started seeing a decline in physical album sales. (n/d. paragraph 1, How has Apple Taken the World Pie?)

The great thing about Apple is that they employ both hardware and software engineers so they’re able to create all their products in house so both hardware and software can integrate seamlessly. The iPod design is so clean and simple which added to the success of the product making it user friendly to everyone.

The first iPod commercial featured a guy sitting at his desk while uploading cd’s to his computer and transferring them to his iPod; ‘A Thousand Songs In Your Pocket’, the first tagline and commercial introduced this revolutionary product to the world. It’s debatable on how the iPod became so popular but Apple’s distribution channels were a key factor. The relationship between Best Buy & Circuit City was torn apart in 1998 but came alive again in 2002 when iPods became available in over 500 Best Buy stores in addition to 225 CompUSA locations already selling the product. In 2005 Radio Shack purchased over 400 000 iPods for it’s initial 3 month sales period. Radio Shack distributed iPods to over 7000 of their locations. iPods in vending machines at airports was another major selling point, putting the iPod in over 21 000 locations. But the ultimate selling point for the iPod comes from the Apple Stores themselves. It’s the personal interactive experience in these stores that creates the ultimate selling point between the customer and iPod.

Apple has done an amazing job to get the iPod in as many distribution channels as possible. By doing this the halo effect took place. By selling millions of iPods at across the board, it provided the company with a greater scope of awareness to it’s other products including the iMac & MacBook. Because of this “halo effect” Apple’s retail computer market share in the U.S. up to 4.5 percent in July 2005 from 2.8 a year before. This proves that Apple’s distribution channels are effective.

There are many other MP3 player competitors claiming to be the next iPod killer but at the end of the day the real “iPod Killer” was Apple itself by introducing the iPhone. Now you could have an iPod and revolutionary mobile smart phone all in one. By doing this Apple could now dominate & maintain two (2) markets namely smart phones and MP3 players. Before the iPhone came around, other cell phones were regarded as the ‘iPod killer’ but they didn’t really prevail since Apple combined their revolutionary iPod with a phone and once again took the top place.

iTunes and iPod still continue to amaze everyday and will for a long time to come until the next visionary comes a long. To this date Apple owns 80% of the total MP3 market share. Also, to date Apple holds over an 85% market share for electronic music and has sold over half a billion tracks (continues to rise everyday). Apple has changed the way we look at consuming music in a lot of different ways; it’s the iPod revolution. (n/d. paragraph 1, How has Apple Taken the World Pie?)


References:

n/n. n/d. How has Apple Taken the World Pie? Retrieved April 31, 2011 from Filer. Website: http://filer.case.edu/dak22/

Christman, E. March, 2009. All US Virgin Megastores To Close By June. Retrieved April 31, 2011 from Billboard. Website: http://www.billboard.com/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story#/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story

Monday, March 21, 2011

Interview with Nick Sambrato from Mama's Sauce


For my interview I chose to interview Nick Sambrato, the owner and founder of Mama’s Sauce. Mama’s Sauce is a boutique print shop located in downtown Orlando that dedicates itself to only using the finest water and soy-based inks and cleaning products. It employs designers who truly have a passion for the design process of business cards, show posters, t-shirts, wedding invitations, etc. Mama’s Sauce also has a very interactive website where an order can be placed. It also features a blog and online store with a range of their own limited edition products.

The Mama’s Sauce team is a young group of print and design fanatics who have a drive and passion for what they do. This adds to the fun-working environment they have established. They are also very personable with their clientele so it is more like a family than your normal customer-business relationship. There is sense of community with this company, as it acts like a hub for creative people to come to and explore new things.

One of the biggest challenges Nick faced starting his company was committing. As soon as Nick said out loud he was going to do this he realized he actually has to commit physically, emotionally, spiritually, and mentally and birth this business. There was no negotiation with anyone, except himself. He told himself to just do it. Nick describes challenges as something that put you the test instead of being a hurdle. A challenge makes you stronger and prepares you not to make specific mistakes again in the future so you can build your business stronger instead of taking two (2) steps forward and one (1) step back.

I asked Nick how he prefers to negotiate with customers and contractors since he has to deal with them on a day-to-day basis. From his response I realized affiliation was very important to him because face-to-face conversation reduces personal distance so it’s easier to avoid stereotyping and other misconceptions. Nick is the owner of a business and acts professional on all levels, so when it comes to negotiating with your clientele and contractors, it’s key to always do it in person if possible. These ads to the personal touch his business focuses on so much.

The greatest advice I got from nick was to be true to yourself when negotiating. Be prepared and know what you want. Depending on the negotiating, in the end you’re selling yourself and that’s why it’s key to be professional. In the beginning of your career, it’s always wise not to be too aggressive if negotiating with someone. Depending on the issue, it’s better to think logically, ask for advice and try to achieve mutual gain. As a young adult entering the working world, I thought this was great negotiating advice from Nick.

Have a look at the Mama's Sauce website HERE

Friday, January 28, 2011

Association Green (AG)

For a company to go green now a day is very important. Especially if you have a specific niche market, like Purple Gorilla does. To go green can mean many things depending on your business but it basically comes down to adopting new and sustainable ways of consuming energy that don’t drain the planet of it’s natural resources nor render it.

Association Green is the Green Initiatives Division of Organization Management Group Inc. OMG supports for-profit and non-profit organizations. Association Green, AG for short, main goal is to create the opportunity for companies to network, educate and locate resources on becoming environmentally responsible.

There are many companies out there that want to go green but they don’t know how. That’s why associations like Association Green are important in today’s corporate like structure.

The research link on the AG site is an excellent source of links for companies who are researching their possibilities of going green. Most of time companies want to go green or they’re considering it but the big question is where to they start; now these companies have a starting point to start their green movement.

For Purple Gorilla AG can assist in many ways and organic clothing will be our first step. We’re a company that spreads the word on Social Good so we’ll be regarded as hypocrites if we don’t embrace the green movement to the fullest.

Regular cotton production uses about 25% of the world’s insecticides and more then 10% of the pesticides, so by using organic cotton or recycled cotton we’re able to reduce these numbers. Good news for the market is that the organic cotton industry is growing every year so environmental damage can be reduced.

Associations like the Green Association is a critical factor in the Social Good industry today. Via the association companies can network and unite to make even a larger effort to reducing environmental damage.



Association Green Official Website
The differences between regular cotton & organic cotton can be seen HERE

Tuesday, January 11, 2011

The Power Of Art

Patrick Chappatte is a cartoonist who uses clean, simple pencil strokes to illustrate to the point humor events. TED (Technology, Entertainment & Design) hosted Patrick in July 2010 where he talks about the power of cartoons. I think it should be referred to as art instead of cartoons because that is what they are. He's art illustrates world events in a serious/humorous way but tells the truth some people don't want to see.

Art has the power to communicate messages. In some 3rd world countries and even 1st world countries illiterate people are able to understand and visualize messages that art/cartoons are portraying. This bridges communication and language gaps that are faced in some rural areas around the world as well as in war areas.

In my business plan art messages play a big role. Purple Gorilla is exclusive/limited edition clothing line where each season garments will tell a different story. The goal is to partner with the WWF (World Wildlife Fund), the world’s leading conservation organization works in 100 countries. WWF's has a global reach with a foundation in science, involves action at every level from local to global, and ensures the delivery of innovative solutions that meet the needs of both people and nature.


Each season Purple Gorilla will release a new line of garments that focuses on a cause the WWF is fighting. All designs will be based on that specific cause so we can raise more awareness globally.

With the power of art and together with the WWF we can communicate powerful messages to everyone globally and so raise awareness to issues that need our attention just like Patrick Chappatte is doing with his art/cartoons. A picture is worth a thousand words.


Take a look at Patrick Chappatte's TED talk here

Another great read is from sustainable cities where art is used to help describe the situation in some Mexican areas. Read here.

Sunday, December 5, 2010

Putting Together A Press Kit For Your Band

One of the key elements to any musician’s success is their press kit or promo kit. This package contains every piece of promotional material the band has used and will play a very important part in the every day life of the band. The press kit will be used to get gigs at venues of your choice and to get record deals. Now days it’s important to have two (2) kinds of kits of press kits, a physical copy and digital. Both should contain the same information.

A press kit should contain the following:


Folder (Only for physical copy)

Bio

Photos – Glossy 8 x 10

Press clippings, any reviews & articles (most relevant first)

Album(s)

Hot Sheet (Bulleted sheet of accomplishments)

Example – “Rolling Stone Band To Watch”

Record releases with dates

Tours (Dates and span of tour)

Artists collaborated with

Quote Sheet – 3-4 quotes from people in the industry saying good things about your band

If your sending a press kit out to a promoter or publicist, make sure to add a cover letter to your press kit stating why you’re contacting them. Explain that you’ve heard good things about him/her or them and state why you want to play.


Now that you have your press kit set-up, always try to get more reviews and shows with it to add to your kit. The more you can add to your kit the better.

Set-up a special website that will contain your digital press kit or you can do it in PDF format. Get your bands message, style and purpose across clearly in your press kit. Remember this is selling your band; get it right!


To get the word out about your band, after any show hand out promotional pieces (often from you press kit) to those who attended. Encourage them to take two and give to a friend. This is called word of mouth marketing.

Thursday, December 2, 2010

Major Concerts Hitting South Africa 2010/2011

Photo: Kings Of Leon by Brendon Weyers

When it comes to major artists touring South Africa... we've been left in the dark for a long time. Only over the past few years South Africa has become a major stop for artists to come play, for bands such as The Offspring, Billy Talent, Celine Dion, Enrique Iglesias, Counting Crows and few more. But 2011 is going to be one of South Africa's biggest years when it comes to big concerts. The reason for this could be a few things but the most important reason would be the FIFA World Cup South Africa hosted back in June. The success of this worldwide known sporting event proved South Africa is capable of hosting major events. New stadiums were also built during preparation for the World Cup and these stadiums need to be filled. Solution = Big Concerts.

2010/2011 promises a very entertaining line-up with the following acts:

Public Enemy
3 December, 2010 - The Alex Theatre, Johannesburg
4 December, 2010 - The Alex Theatre, Johannesburg
6 December, 2010 - Travel To Cape Town/Press Conference
7 December, 2010 - The Assembly, Cape Town
8 December, 2010 - Atmosphere, Cape Town

The Beach Boys
5 December, 2010 - ICC or Beach Arena, Durban
6 & 7 December, 2010 - Grand Arena, Cape Town
10 & 11 December, 2010 - Sun City

Rammstein
9 February, 2011 - Grand West Arena, Cape Town
11 February, 2011 - Coca Cola Dome, Johannesburg

U2
13 February, 2011 - FNB Stadium, Johannesburg
18 February, 2011 - Cape Town Stadium, Cape Town

Kings Of Leon
24 March, 2011 - Cape Town Stadium, Cape Town
27 March, 2011 - FNB Stadium, Johannesburg

Neil Diamond
2 April, 2011 - FNB Stadium, Johannesburg
5 April, 2011 - Moses Mabhida Stadium, Durban
8 April, 2011 - Nelson Mandela Bay, Port Elizabeth
11 April, 2011 - Green Point Stadium, Cape Town

Roxette
11 May, 2011 - Grand West Arena, Cape Town
14 & 15 May, 2011 - Sun City

Get your tickets HERE

Check out 30 Seconds To Mars talking about their tour experience in South Africa and what roll South Africa played in the making of their brand new album; This Is War.

Wednesday, December 1, 2010

Developing A Career Plan For Your Band

Professional musicians in the UK earn far less than the national average wage, recent figures reveal – with most sitting below the official poverty line. According to the music licensing agency PPL; nearly all musicians make less than £16,000 a year, which is extremely low compared to the 2010 national average salary of £25,500 across all types of employment in the UK. With this being said, it's important for musicians to go back to the drawing board and re-asses their career plans so they can look at their faults and look for opportunities for improvement.

I'll be posting sections of a band career plan so you can use it as an example to improve your bands plan. Sections will include budgeting, marketing plan, about the artists, experience, Evaluation of the artists (SWAT) etc. The first section I'll be posting will include the marketing plan, as always I'll use the band I'm managing; Ashtray Electric.

Development of a marketing plan

A. State of the Industry

Indie Rock takes its name from independent Rock. It is a do it yourself attitude; artist do not change their music style to sound like popular music trends. Indie Rock refers to a category of music were artist are unsigned or are in an independent record label. With the Internet and the file-sharing cutting into major labels, Indie Rock is better than ever. Indie Rock offers something different to the youth of America and that has quickly shot up the charts as a favorite of the next generation. We were unable to find information regarding the album sales of Indie Rock in general but we were able to find the album sales in the Alternative genre, which is basically another sub-genre Ashtray Electric will fall under. In 2009, 68,195 (million) Alternative Rock albums were sold. This is 15% less than in 2008. Sales are going down because of piracy and file-sharing.

No Indie Rock ticket sale numbers were available. Comparing Ashtray Electric to The Killers, since they fall in the same genre, The Killers concert tickets went on sale in September 2008 and sold out in 5 minutes. The same thing with Kings Of Leon, same genre, and their concerts sold out almost immediately. This proves that there is definitely a demand for this type/genre of music out there. Looking at Ashtray Electrics’ 2009 tour, the tour went of without a hitch and pretty much sold out wherever they went.

Opportunities for new artists within the genre

Ashtray Electric has a great future ahead of them and many opportunities exist for them to gain efficient exposure all over the world. They currently reside in South Africa and have had vast success in their country, booking tours in the US and well as the UK could begin their process of dominating other countries where their genre is embraced.

Each year South Africa films many big budget Hollywood movies, Ashtray Electric could submit songs to the movies with hopes of getting their song featured. This could create a larger fan base and expose them to other countries and genres as well.

Ashtray Electric is currently signed to a distribution deal with Rhythm Records, which is located in South Africa. If they were to reach out to a bigger label that focuses on international exposure they could have the potential to reach a larger demographic all over the world.

Who are the competing artists?

aKing is a South African band who often tour with Ashtray Electric. Both bands have a similar genre and share a coinciding fan base. Modest Mouse, Vampire Weekend, and The Bravery are currently extremely popular in the US, therefore Ashtray Electric would have very difficult competitors to live up to if future tours in the US are applicable. However touring with them as an opener band would be a great way to gain exposure from the US bands audiences and make them theirs as well. Indie music such as Ashtray Electric is becoming more and more popular in the US with bands such as Modest Mouse, which is why touring now is a great time to create more fans and establish efficient relationships.

How is the radio format for this genre doing in audience ratings?

Indie music is currently doing very well in audience ratings. Last month Vampire Weekend held the number one spot in the Soundscan sales chart. Genres similar to Ashtray Electric are played on the radio all the time from big-time city stations to your local college station.

According to Everhype a website dedicated to determining the ratings of popular songs around the country. The Killers, The Tings Tings, and the Kaiser Chiefs are all bands that share the same genre and audience and are all listed in the top 10. Therefore Indie music will soon be dominating radio and television everywhere, which gives Ashtray Electric a great opportunity to act now.

What international opportunities are there for the genre?

International opportunities exist everywhere for Ashtray Electric as stated before. Ashtray Electric has the potential to tour with larger bands such as Modest Mouse and Vampire Weekend in attempts to dominate the UK and US fan base, being that they are already very popular in South Africa.

Also featuring songs in movies is a great way to gain exposure overseas for the band and establish new markets and areas where their music is demanded. Signing onto a larger international label with the hopes of a 360 deal will be very efficient for the band in order to establish a larger audience in various countries and create worldwide success.

References: http://www.ultimate-guitar.com/news/general_music_news/most_musicians_are_on_poverty_line.html