Dominica Musician Coalition Marketing/Business Plan

Mission:
To make Dominican Music readily accessible and available by revamping our marketing strategies, improving on service and creating a better relationship between those who produce and those who sell the music.

Marketing:
To increase market share by 10% each year through the investiture of new and creative marketing and promotional programs.

Service:
To respond promptly to the needs and recommendations of customers and to wholly put into practice the notion that the customer is not just a means to an end, but the end which we all passionately seek.

Comrades:
To foster pride of membership and a high level of comradery through communication, recognition and empowerment that will ultimately guarantee the satisfaction of every customer.


EXECUTIVE SUMMARY

My dear friends the beginning is the most important part of any undertaking. If we do not risk anything, we risk even more. Creativity has brought us thus far, allowing us to make mistakes at times, and always guiding us in motion in respect to our occasion. We are not in a fortunate position like other music communities, but my friends, permit me to advance with the words of the late Theodore Roosevelt, "do what you can, with what you have, where you can". Comrades, the time has come through necessity, when it is altogether fitting and expedient that we must march to the drumbeat, to the imperative, of the free market system. The prevailing wisdom of our times and the lessons learnt from other times and other circumstances call for a collective leveraging of our efforts in achieving the objectives of longevity and prosperity.

The sharing of information and the parent view of competition will procreate an environment where prices go down, quantity increases, quality is enhanced, good works are rewarded and sluggishness is eschewed. We must apprehend the fact that each single phenomenon in our community has no meaning, no existence, except by virtue of its relationship with all other phenomenon. A selected few cannot do it alone, it will take the efforts of our immediate community, in particular, and the extended, in general, to achieve any goal that is worthwhile. In this knowledge-based economy a product is 10% what it is and 90% how it is marketed. There are products which have had great capacity to improve human existence and comfort, but which never made it to the retail outlets of the world. And there are others which in there very nature can be classified as poison, but which have found there way to households of a significant fraction of the world populace as a result of how the product was communicated to the public. Beloved Citizens, it is common intelligence that we have always produced splendid music and now it is ample time that we communicate and navigate our product in a paradigm consistent with an effective profit generating formula. I pray that the respect of the parties in this proposed arrangement will have an equal standing to the policy of the purpose.

The volume of information aimed at the customer has necessitated that we no longer market to the customer; instead, we need to market with the customer. Practically, this means seeking the customer's permission to begin and then continue a dialogue that will extend beyond the sales process.


STRENGTHS/WEAKNESSES/OPPORTUNITIES/THREATS (SWOT)

Strengths
Dominica has always been known to give the world eminent musicians. In the late 70’s bands like Exile One and Grammacks astound the audiences in Martinique and Guadeloupe. In the early 80’s While political persuasion divided our beloved country and the facets of our culture were placed on the back burner bands like Kassav and Coupe’ Clue’ emerged as cultural pillars in the French Caribbean and dominated our immediate market. In the mid to late 80’s bands like WCK, Serenade and RSB created the bouyon, enhance Zoukcous music and restored Dominica culture to its hegemony of the 70’s. Today, regardless of the inept financial benefits, we continue to produce one of the best music in the Caribbean. Our strength is that we can produce music of high quality.

Weaknesses
There is a manifest lack of marketing wit in our music industry and this is our biggest weakness. We are lacking in the use and utility of channels through which we can deliver our product. We are weak where the manipulation of the market through pricing strategies, the creation and maintenance of an image, and the participation in social programs that keeps the artist fresh in the minds of fans. We are a distant behind in the use of cross marketing, in the ability to recognize and leverage market segmentation, in the ability to apprehend the potential of the local market. We have the failed to vision the potential of press conferences and to create strategic relationship with the media and other important local figures. And we have failed to use marketing techniques to combat foreign substitute and unauthorized duplication of our products. And, also, we have failed to create networks that cultivate reciprocity and foster obligation. Another weakness, which is so inherent in our nature, is the lack of unity amongst us.

Opportunities
The Opportunities are limitless. We are yet to supply our local market to satisfactory levels. This we can capitalize on. Our music, which, evidently, resonates amongst the people of the region, has yet to be navigated to the rest of the Caribbean, under the stewardship of an effective profit blueprint. This we can work on. We are situated in the middle of France (Guadeloupe and Martinique) and are yet to create strategic relationship with key music distributors on those islands. There is opportunity for growth. The opportunities that lies ahead depends on how aggressive we are in creating relationships with Dominicans in the Diaspora, people in the industry and creating strategic relationships with public figures. Opportunities await us on the Internet. How well we can interact; refresh and reform will determine our success through this medium.

Threats
Most of the barriers we beat against are in ourselves. My friends, we put then there, and we can take them out. The ability to work together will be the greatest test of this warranted coalition. Taxes levied and tariff imposed by the government will also play a tremendous role in the price we set and the income we generate. We will, naturally, suffer competition form foreign products, as countries more and more favor the idea of an open-unprotected market. The highs cost of equipment and recording coupled with the lack of a manufacturing firm in the country do hinder, in a large part, the momentum of the market.


MARKET ANALYSIS

There are 64 million people within the Caribbean Basin. 40 million of them speak Spanish. 11 million from Cuba have a small but steadily growing purchasing power parity. A few weeks ago China, which is undergoing major negotiation with the world powers to inter the World Trade Organization initiated significant trade agreements with Cuba. Just last night, in the sate of the union address, the President of the United States mentioned his commitment to make the CBI countries benefit from the proverbial agreement of NAFTA. So, prospect for free trade and increase customer base looks good.

Although many element of our culture are linear there are many languages and preferences within the region that dictates the need for inclusion of segmentation within the marketing framework. We must tailor our strategies according to the specific target market, recognizing the consequence of supply and demand. It is at the point of equilibrium that an uttered profit is feasible and if the product supplied does not jibe with the product demanded, then favorable productivity can not be met. I firmly believe that one song from every CD, from every band, should have a Latin American flavor and products should be channeled through the Latin market using this particular song as the theme. Latin Americans are the fastest growing population in the Western Hemisphere and their culture and music, which bears some resemblance to ours, is in parallel motion.

I recommend that music, marketed through the following areas of the region, be presented according to the particular preference of the people:

  • Latin America: any style with Spanish words or element
  • Jamaica, Trinidad, Barbados and all countries north of Guadeloupe: reggae/soca/zouk with English words
  • Guadeloupe and Martinique: reggae/zouk with French words
  • Windward islands: all flavors
  • All islands: pop and other foreign
In essence, if you are sending a package to Trinidad or doing any kind of promotion there you should not use a zouk song with French words as reference. Likewise if you are sending a package to a radio station in Guadeloupe you should not give reference to a song with high soca element that has English words. Regardless of how beautiful a song maybe if it does not have that element that jibes with a particular destination, it is likely to fail. Also, it might be good to continue to present experimental songs; I mean songs that have elements of foreign music. This might lead to a new style of music. Remember that the "big music from the little island" (Reggae) is a mixture of rock, funk and African beats. You never know who will be listening to your songs, and you never know who will like it. My Dear friends the new Chris Blackwell might be looking for you.

Distribution (Availability and accessibility)
The great opportunity for us, as service providers, is through the superior and increase use of channels. We can not dramatically improve our business until we learn to reintegrate work to ensure the total accessibility and total availability of our products. When a product is totally accessible and totally available and is effectively communicated to the target public, who is willing and able to buy, the chances boil down to a success story. You can change and improve products all you like, but how and where you deliver them on a daily basis is the real battlefield. We created the "Cadence" and Guadeloupe and Martinique benefited from it. We created the "Bouyon" and Trinidad and Grenada capitalize on it.

Comrades, the increase in technology, the plethora of companies which drives competition and the rapid imitation of new products and products enhancement are continuing to contribute to the perpetual curtailment of the product life cycle. This is why, my friend, we must get the product to the market place on time and communicate it effectively. Given the right marketing paradigm the next step is to identify the right place to distribute the product. Since charity begins at home, let us look at an example of how the Dominican local market should be approached.

We could, and we can, develop strategic relationships, that demands reciprocity and creates obligation, with the major retail outlets in the 21 constituencies, and if 20 CD's can be distributed to each retail outlet at a suggested retail price of $35.00 and with cost ranging from $20.00 to $25.00, we would be astound to see the gravity of profit that we have failed to erstwhile realize. This is value added to the retail outlets and anyone can readily perceive that they would not be disturbed by an extra $10.00 to $15.00 profit. I am also advocating the sale of our products in both airports of Dominica. It would be the first product seen when entering and the last one seen when exiting the country. In the minds of those leaving the country it could be a great gift or a reminder of our beautiful country. Let me also advice that the products marketed in the airport should be marketed differently; not just as CD's but as a form of a gift or reminder of the island. This pricing scheme will aid in the war against bootleg music as retail prices of the original product continue to be within the range of the street price. My friends, we can accomplish this while keeping distribution price per unit invariable. Our goal is to move from relative market share to absolute market share while simultaneously keeping prices relatively inexpensive.

Cheaper products attracts more customers; more satisfied customers led to repeat sales and, in turn, to increased profits. It is, in essence, a win - win situation. Coupled with this initiative should be an aggressive advertisement program that will guarantee public awareness. If you will observe from Fig II sales generated in the first two months of the product life cycle is very trivial. We need a robust advertisement curriculum that would ensure growth of upwards of 2000 units in the first two months preceding any release. It is also important that we brief the government on issues relating to cost optimization and tariff in order to maintain low - affordable prices; but this is an issue that will be discussed later.

The following are the benefits of total availability, total accessibility and low pricing:
Increase profit; Local competition; Compete against foreign substitute; Combat the bootleg business; Increase market share and leverage; Increase influence; Decrease the trade deficit

Fig I: Illustration of sales in the various provinces:
Canefield 1 20cd,s
Melville Hall 1 20cd's
Castle Bruce 2 40cd's
Cottage 2 40cd's
Colihaut 2 40cd's
Grandbay 2 40cd's
Mahaut 2 40cd's
Laplaine 2 40cd's
Marigot 2 40cd's
Morne Jaune 2 40cd's
Paixbouche 2 40cd's
Petite Savanne 2 40cd's
Portsmouth 2 40cd's
Roseau Central 2 40cd's
Roseau North 2 40cd's
Roseau South 2 40cd's
Roseau Valley 2 40cd's
Salisbury 2 40cd's
Salybia 2 40cd's
Soufriere 2 40cd's
St. Joseph 2 40cd's
Wesley 2 40cd's
Ville case 2 40cd's
880cd's @ $25.00(distribution cost) = $22,000.per group.

The distribution of products to Dominicans in the Diaspora of the Caribbean, North America and Europe is vital to the marketing process. We should network and create meaningful relationship with all the Dominican association, clubs and groups all across the globe. They should be briefed on every event in relation to our business and we should solicit their assistance in disseminating key information to the general target market. There are 100,000 Dominicans and Dominican offspring in Great Britain alone a linear figure to that is in North American and a number shy of that in the rest of the Caribbean. Distributing the products in the right place is important, but increasing the number of retail outlet in the Diaspora is vital to our objective of increasing sales. If I were to share with you all the information that I have and vice verse we will all double our intelligence. If we were to share contact information of retailers and distributors form Trinidad to Bahamas, from Argentina to Alaska, from South Africa to Moscow, we would all double the amount of contact information we have. This is the way the free market system works and this is one of the reasons the Americans are so successful. We most learn form the efficacies of the American system. This, my friends, is the invisible hand that drives the market. It is imperative! I repeat, it is imperative that we exchange vital information in respect to trade - this is at the epicenter of this proposition.

We must also go beyond the normal occasion of our business and network with new businesses, creating novel relationships with companies that have strong prudent financial architecture who are always seeking surplus markets. Let me also advance that we contact Wall marts and other music retail outlets that are situated in the dense Caribbean communities of North America and Europe.

Price (discounts, incentives and payment terms)
It is central to our objective that we become the leaders in pricing strategy, setting unprecedented pricing formulation. We have to be careful not to price our product at a figure that is so low that the public perceives it to be generic, nor must we price it so high that it becomes unaffordable. Our prices must be affordable while concurrently contributing to an upscale image of our product. Speaking of upscale image, we should implement an even number pricing scheme ($35.00) instead of an odd ($35.99). To often we sell our product based on price solely. We have failed to recognize the economies of scale; the upward numbers that an increase in retail outlets can generate. We should also leverage our pricing strategy in the rest of the Caribbean. In places like Antigua where it would be difficult to compete against "Burning Flames" in view of Antigua's patriotism, we will compete with price.

Discounts can be used to move products that tend to be slow movers, are at the decline stage of the product life cycle (outdated) or temporary overstocked. It can also be used to create competition against other products. A two for one sale, for example, could be initiated in order to rid the shelves of old products and at the same time adding value and image to the business which in turn induces customer loyalty. This theory of pricing must affect all persons that are engaged in selling the product; the theory of triple down economics. This means that the customer does not solely benefit from the discount, but the retailer and distributor as well. It would be a team all working for the commonweal of the business.

In order to foster options and add momentum to the business incentive should be offered to retailers and distributors who demonstrate profound abilities to propel the sales of products. Allowances or percentage cash back can be offered to retailers that sell a number of products within a given time period.


ONLINE MARKETING

The Internet offers a startling set of advantages as a marketing medium. Technology advances, consumer familiarity and retail innovation will inevitably drive both marketing programs and customer interaction to center on the Internet. We need to embark on an active exploration of key initiatives in lift of where and how to apply the power of the Internet. We need a web site that is interactive and simply to understand; one that the customer can associate with. The web page should be incorporated with the lyrics, midi files and chord progression and other elements that would create a learning environment and nurse the interest of the music.

Because responsiveness to marketing messages is closely correlated with the freshness and applicability of the information conveyed to the recipient the page should be keep fresh and forever changing. Each artist will have his or her own online fan club and information corner. The name of the site should ferret an image of the business. Products of all Musicians will be sold online with three warehouses. One in North American, one in the Caribbean and the other in Europe. Having three distribution centers will aid in reducing shipping fees, and, as a result, keep prices down.

Customers will be able to communicate, identify themselves, and declare interest and readiness to purchase and even criticize or complain. One of the major programs that I am advocating is an online weekly news letter outlining the past and upcoming events of every artist or group; keeping the customer always informed and constantly aware of the products that are available. In support of this idea we must develop an online mailing list; adding our existing lists together. One of the best ways to start is by linking the page to other Caribbean sites. I recommend that we link our page to the top 50 of the Caribbean sites and the top 50 of the Dominican sites. It is incumbent upon us, if we are to succeed that we grasp superior advantage of every inexpensive advertisement channel available.

FIG: II - The typical life cycle of a CD.(not available)

Government (external influences/barriers)
One of the greatest circumvention to our success in the music business is the government’s design of fiscal policies. It hazards our efforts in every phase of the enterprise. The exorbitant cost of duty fees that is incurred and the frequency there of, has been, and continues to be, the ultimate hindrance to perpetuating our duties as financial and cultural soldiers of our beloved country. We have to endure import duties on equipment that are sometimes upwards of 60%. In order to fully function as a band we have to purchase equipment valued more than $20,000. To record a CD we must pay circa $6,000. To print and manufacture 2500units (average units sold) cost a conservative $8,000. To transport a few units to Dominica cost circa $500 and to clear them from custom will cost 60%! I repeat 60%.

My friends, if we were to incorporate labor into this equation we would find ourselves in extreme deficit. It is incumbent on our government, men and women of wisdom and scholarship, to assist us in finding ways to better serve our country. It is our profound notion that all Dominican products produced elsewhere should be given free access to the home market. In this light we will remain loyal to the preposition that Dominican musicians should not have to pay duties for bringing a Dominican product to the home market. If the government sees it unwise to alleviate the pains of tariff then we request that it incorporate in its agenda the establishment of a CD manufacturing firm in Dominica. It would not only serve the Musicians but all those who believe that the urgency for technology advancement, which is enshrined in the government’s manifesto, is worthy of entertainment. We beseech the understanding of our noble leaders on this pressing subject.

Without these musicians we would have a very trivial carnival, a poor and subtle culture and a very minute necessity for a minister of culture. Without these musician we would not be able to sustain our cultural identity to a satisfactory level and foreign cultures would convulse through our country. It is culture that gives us identity. It is amble time that we distinguish and pay homage to the ambassadors there of. In this light, we solicit the intelligence of our leader, men of veracity and virtue.

The second is the failure of our leaders to recognize the full potential of cultural economics. Before passing away, the late Bob Marley had made U.S.$200,000,000.00 a figure that is more than three times Dominica’s annual export. Today, an image of Marley is inscribed on every Jamaica fifty cents. Not a dime has been cast in buttress of the course of the Dominican Musician. Culture and music must be treated as a facet of our economy in the same manner in which tourist is held. As a matter of fact, culture and tourism is inextricable interwoven and it is impossible to reasonably promote one without marketing the other. When our musicians perform in America, Canada, Europe and the like they bring back foreign currency that is circulated in our beloved country. We must look to our musicians as a source of income for our country and as ambassadors who uplift the Dominican spirit in the Diaspora. We pray that our present administration will exhibit a more inclusive disposition.

Third is the failure of our legislatures to enact and reform the copy rights laws of our beloved country and to do so in a manner that conforms with the valuing of intellectual property and the distribution and protection of resources. Our copy right laws which was granted to us in the 1920’s by our colonial masters, which supersede the agricultural revolution, the industrial revolution and the present revolution of the knowledge and information – based economy, is, by far, to antiquated to effectively guaranty the checks and balances of our times.

To better understand the problems that confronts us, it is important to create an open dialogue between the government and the people in the music industry of Dominica. Is by understanding the particulars of the problem that the government can shape and form laws that would effectively aid in the battle of copyright infringement. Since a significant number of violations occur in other Caribbean countries, CARICOM must address this problem with universal understanding.

In addition, the government should pass an executive degree that would, upon receipt of documentation, grant the musicians time off from work within, so that they could perform work without. To many times musicians have to suffer the cost of frequent air transportation and the lost of contracts because the domestic companies through which they are employed will not grant them time off.


ADVERTISING

Billboards
Billboards are probably the best forms of outdoor advertising. Though it is not inexpensive, given our situation the government should offer some incentive. Two off the best places to place a billboard in Dominica is in Borrows Square in Portsmouth and the bus stop in Roseau. If we are going to use billboards, we need to keep our message to 10 words or less. Also include a telephone number.

Bundling
Bundling is a design in which two or more products or services are sold as a package for less that the price of either alone. An example of bundling is buy one get the other item half price. Quite often a slow product is bundled with a fast item. A slow moving CD player at Astaphans can be bundled with a new CD of Ruff and Ready. This will assist in moving inventory as well as add perceived value to the sale. Customers are eager to buy when they are getting either added value or a deal.

Business cards
This is one of the most effective forms of marketing. Make certain that your card conveys your business message and the appropriate image. Give it to everyone you come in contact with. Everyone who has your card is a potential customer or can refer a potential customer to you. I recommend that every order that is sent out include a business card. Although cost money to make, it worth the added customer base.

Social interaction
Participating in charities, contest and talking to people about the industry is a great way of strengthening your celebrity image. It is an easy method of free publicity, visibility, community recognition and credibility. You must always inform the media about your actions. You should also be prepared to meet other business people who are interested in our line of work. It is a credible way of networking by assisting in a worthy cause. The purpose of the contest is to get people involved in your business and to keep them coming back. Not only will the contest itself generate good visibility and publicity for you, but the selection of the winner is also a newsworthy event.

Another way of developing a strong marketing base and a good image is by visiting schools, educating the 3rd and 4th formers about the music industry. These students who will be potential customers in the upcoming months when they have left school and become part of the job market will develop a close affection towards your band/brand. This is called emotional branding. Also send a copy of your work to each of the minister of government, the media and any public figure that may exert an influence on our work.

Cross promotions (joint venture marketing)
Cross promoting our business with companies like Duran Dominica Plus, Fly Drive Dominica and other companies that are addressing critical enterprise is a strategy worth implementing. All that is needed for this marketing technique to be employed is that both parties agree that they will disseminate information about each other to their respective customers. It is, in essence, a win-win scenario. For example, when Fly Drive Dominica sells a package they would include a flyer with information about Dominica Musicians and vice-versa.

Customer appreciation
As I stated previously, the customer is not a means to an end, but the end that we seek. This is why it is imperative that we institute a robust customer appreciation/service program. A small "thank you" card can have a big effect on a customer. A customer of the month program is a fantastic idea. Whatever we decide, we must strive to satisfy the customer at all times. This means learning about and understanding his/her needs, wants, and expectations, and then doing whatever it takes to furnish those needs and wants and exceed those expectations. One thing we should strive to do is to deliver more that we promise. We must go the extra mile for the customer, particularly if we are trying to rectify a complaint they have made. WE MUST NOT LEAVE ANY ROOM FOR OUR COMPETITORS.

Inserts
Inserts are less expensive than conventional advertising. A good way to employ this scheme is by making fliers and asking the publishers to insert them in the newspapers. They may charge a small fee, but that is the cost of building customer based. Think of it! Customers that buy papers will receive that information.

Grand opening - Press Conference
We need to give due consideration to press releases. This paradigm of advertising draws large crowds and mushroom initial sales. Our press release can be inexpensive and very effective at the same time. All we have to do is to ask the government permission to hold it at the bus stop in Roseau, on a Friday of a month end. We could give away some CDs and free T-shirts. Another incentive to the public to organize a contest.

In addition we could do some tie-in promotion with companies like Kubuli, Bello; companies that resonates amongst the public. I would also advice to inform all the media, and people of public calling to be there. It is an event worthy of reporting and they would be happy to be part of it. A good way to introduce the event is by having the minister of culture give a small oration.

Ten things that interest the Media:

  1. Tie-ins with the news of the day.
  2. Staging an event.
  3. Providing the community with useful information.
  4. Forming a committee to solve a problem.
  5. Giving away an award or scholarship.
  6. Making a prediction about something. C
  7. elebrating an opening or an anniversary.
  8. Doing something incredible or very special.
  9. Giving away food.
  10. Any type of success story, especially overcoming hardship.
Other forms of advertising:
  • Direct mail
  • Flyers
  • Door hangers
  • Gift certificate
  • Direct response
  • Displays
  • Coupons
  • Leveraging
  • Letter to the editor
  • Newsletter
  • Premiums
Coalition Structure
We need a public relation person, some one that will be in direct and constant contact with the media, government and the general public. This person will be responsible for coordinating our efforts to achieve the greatest level of efficiency. We need someone to design and maintain our web page. This person will constantly update and refresh the web page. We need three persons to handle the sale of units, one at each location.