Team 1

Team 1
Brittany Morrow, Colleen Olszewski,
Katie Schenkel, Shaira Shelton, & Elias
Aparcedo
Executive Summary
Spotify is an online radio station that has many competitors
in its market. Many people do not realize what all Spotify
has to offer compared to other stations such as Pandora,
iTunes Radio, or Beatsmusic. Our overall media objective
for this campaign is to build customer demand and keep
current users while gaining potential new users. With our
media plan we intend to address consumers lack of
knowledge of what Spotify is and how to use it by
advertising via print, radio, billboard, and social media. The
IMC objectives we intend to accomplish with our media mix
are: create awareness, enhance brand image, and establish
brand recognition and acceptance. We intend to measure
how effectively we meet these objectives by observing the
number of reoccurring users and new users who sign up for
Spotify after our media campaigns are launched this year.

SWOT Analysis
Strengths: Mobile and desktop design creating
a very user friendly atmosphere, Creating a
social music website, and Free advertising
through Facebook
Weaknesses: Ads do not explain the product
well, just the emotional connection to music,
Free subscriptions to mobile apps for
premium use only
SWOT Analysis
Opportunities: Rapidly changing mobile
technology creates a potential area of expansion,
With Spotify you can stream music online, New
needs: Free subscriptions to mobile users
Threats: Competition with older companies with
bigger market share, Negative economic
condition: People expect free music Government
Regulation: Spotify pays the record companies
and artists for each song that is being played


Target Market

Younger demographic (18 to mid-twenties)
More interested in the Free Spotify option
College kids and young professionals
Geared towards college univesities
Dont have money to spend on music radio
Looking for immediate gratification in their music
options
Involved in social media and looking for that option
with their music

Target Market
Older demographic (late twenties to late
thirties)
More interested in the Premium option
Established professionals
Geared more towards large cities
Have money and resources to pay for music radio
Want/care about not having ads during music

Consumer Behavior
Purchasing decisions:
It is correlated with the masses if Spotify is in then
people are more likely to join
If a friend is satisfied with Spotify then their friends
are more likely to try it as well
Features:
Free option with ad commercials
Premium options with no ad interruptions
Ability to share, tweet, facebook playlists & songs
Bonus of recommended bands in correlation to your
playlists
Ability to access Spotify via computer, smartphones,
TVs
Ability to listen to music anywhere



Consumer Behavior
Geographic differences:
High in areas where the masses have
adopted the app
Ex: college universities

Competitive Analysis
Primary competitors
1. Pandora
2. iTunes Radio
3. Beats Music
Product Analysis
History
Founded 2006 in
Sweden
Europe launch: 2008
U.S. launch: 2011
Offered in 50 languages

Main Features
The feed- follow the buzz and
what's new
Sync files between your
computer and your phone for
easy music
Music apps that can be synced
with your spotify
Social Aspect
Product Analysis
Brand personality:
" Music is Social. Local, Connecting
Competitive & Attempting to become the 'OS
of Music
Product lifecycle: Growth
Market Share: Company is not public and
does not release numbers
Prediction: 1. Pandora, 2. Spotify, 3. Itunes radio
Advertising Campaign
Spotify for Music
Integrated Television, Digital, and Social Media
Droga5
Estimated at $10 million
Youtube
A day in the life of
Phoenix
$400,000




Marketing Objectives

Build customer demand
Keep current users
Gain potential new users
Inform consumers about Spotify & how to use it
Build awareness
Gain attention
IMC objectives
Create awareness
Enhance brand image
Establish brand recognition and acceptance





Media Objectives
With our media plan we intend to:
Reach 75% of men and women between the ages
of 18-25
Target audience: young professionals
Increase frequency and reach
Get Spotifys name & brand in front of consumers
Utilize visual ads
Address consumers lack of knowledge of what
Spotify is and how to use it

Media Objectives
We want to focus on frequency over reach
Geographically we want to cover a wide range
Media components can reach our target audience
nationally and globally


Marketing Strategies
Intend to create a clearer knowledge of what
Spotify is by using informational &
promotional ads in four mediums:
Billboards
Radio
Magazine
Social Media
Marketing Communications

Promotional Advertisement
Instagram and Twitter Promotion
Gain users, create interest, and upgrade current
users
Capitalize on the target markets social media
involvement

Creative Concept
Selling Message
brand awareness and how-to advertising
Informational Advertisement
Radio advertisements
Billboards in music cities
Print in Rolling Stone
Media Strategy
Billboards
Located in three major music cities
Atlanta, GA
Austin, TX
Nashville, TN
Continuous (Year-round)
Located along major high-traffic roadways
Media Strategy
Radio
KISS FM
Flighting schedule (January, April, July, and
October)
1 commercial
Played 12 times a month
4 months evenly spaced throughout the year

Media Strategy
Print
Rolling Stone Magazine
Half-page ad
Flighting schedule
5 times evenly spaced throughout the year

Media Strategy
Social Media
Instagram & Twitter
Contest offering a year of Spotify Premium as prize
Give Incentives for new users to join
Gain followers and brand awareness
Continuous & pulsing scheduling
Media Flowchart

Media Flowchart
KISS FM- Four times a year: January, April, July, and October
Scheduling: Flighting
Rolling Stone- Five times a year: January, March, June,
September, and December
Scheduling: Flighting
Billboards- All year in Nashville, Atlanta, and Austin
Scheduling: Continuous
Social Media including Facebook, Twitter, and Instagram
Scheduling: Instagram- Flighting
Facebook and Twitter- Continuous

Evaluation
Pre/Posting Testing:
We intend to measure how effectively we meet
these objectives by observing the number of
reoccurring users and new users who sign up for
Spotify after our media campaigns are launched
this year.

Budget
Pie Chart of Media Expenditures
Social Media 10%
Rolling Stone 54%
Radio 12%
Billboard 24%
$1 Million
Budget: Billboards
Larger cities focused around music
Atlanta, Austin, and Nashville
$6,000 - $7,000 per month, per city
$240,000 all together
Budget: Radio
Radio Station KISSFM
National radio station
Top 40 radio
Same target market
Frequency
12 times per month
Pulse
January, April, July and October
$30,000 per month x 4 months= $120,000




Budget: Print
Rolling Stone Magazine
Similar target market
Circulation
1,450,000
Frequency
Janurary, March, June, September, and December
page advertisement
$107,906 per issue x 5 months =$539,530

Budget: Social Media
Hiring Social Media Specialist and Interns
$8,333.33 per month
$99,999.96 for the year
Express yourself
Anytime. Anywhere.
Share a picture on Instagram
of your favorite place to listen
to Spotify. Tag Spotify in your
photo for a chance to win a
free year of Spotify Premium.
#Spotify
One service, endless possibilities.
Sources
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Features." Tech Crunch. http://techcrunch.com/2010/04/27/major-update-from-
spotify-introduces-new-social-features/
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Fm. March 22, 2012. http://evolver.fm/2012/03/22/a-short-history-of-spotifys-
attempt-to-become-the-os-of-music/
Elliot, S. March 25, 2013. "Spotify, New Advertising, says "I've Got the Music in Me".
The New York Times. http://mediadecoder.blogs.nytimes.com/2013/03/25/spotify-
new-to-advertising-says-ive-got-the-music-in-me/
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Spotify Artists. (2013). Existing Spotify markets 2013. Retrieved from
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Stenovec, T. March 10, 2013. "Spotify Aggressively Courting New Subscribers before
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