Vix Records Coffee Bandwagon

Question: Case Overview Vix Records is considering placing recorded music into a non-traditional channel of distribution. Specifically, we are considering selling recorded music through Java Wheels, a mobile coffee retailer. Java Wheels tends to sell to younger consumers. And, younger consumers tend to be heavy users of recorded music. So, there appears to be some strategic fit there. But, our corporate parent owns a coffee retailer (Frankies Caf). Frankies tends to sell to older consumers. But, we are encouraged to partner with our sister companies. So, partnering with Java Wheels may cause problems internally in our broader corporation. Finally, existing brick-and-mortar record stores may not like us seeking to expand the distribution of our products into non-traditional channels if it means we lessen their importance and, ultimately, their recorded music sales. So, do we risk alienating our existing retailers and possibly our related companies by seeking to expand the distribution of our product? Discuss on the following topics: 1. Consumer and Trade Promotions2. Channels of Distribution3. Retailer Mix4. Cross-Functional Efforts in Strategic Planning5. Strategic Planning6. Growth Strategies Answer: 1. Consumer and Trade Promotions Consumer and trade promotion are marketing strategies for short-term goal. Consumer promotions are used to increase brand awareness and market acceptance. It induces the customers to buy the product or services. Trade promotions are to help companies differentiate a product, increase product visibility, and increase the product purchase rate. There are various ways through which consumer and trade promotions can be done. The different consumer promotions are rebates, coupons, premiums, contests, reward, and free samples. Trade promotions activities are done focusing the retailers. Incentives are provided to encourage the encourage retailers to stock a product. It also includes trade contests, point of purchase, and push money, etc. Vix Records is a seller of recorder music through Java wheels. Java wheels is a mobile coffee retailer. The targeted customers of both Vix Records and Java Wheels are younger. So, it will be easy reach to maximum consumers. Using various consumer promotion s activities the brand awareness and market acceptance can be increased such as organizing music contests and rebating the music CDs along with coffee. Side by side, music can be played all time in their van to increase the sales. Vix Records should provide incentives to Java Wheels for that and also should offer a music system to Java Wheels. It will be beneficial for both Vix Records and Java Wheels to create the brand awareness and to increase the sales. 2. Channels of Distribution Channels of distribution are the paths or routes through which goods or service pass from producers to end user that mean consumers. It is also called as distribution network along which consist of wholesalers, selling agents and middleman. However, it is to be noted that the digital distribution channel will be more profitable, easier and shorter for Vix Recordss distributors, selling agents, consumers. This removes the role of wholesalers. The distribution channel path can be like the distributors can acquire the right for distributing the music from various web, sell that music on world wide web, from where the consumers can acquire the music or download through internet (Cianci). This is because, since the target customers of Vix Records are new generation people and they are more fascinated towards new devices like iPod, digital format, new devices, electronic payments due to busy lifestyle and dependence on web technologies. This digital distribution channel would give the oppo rtunity towards new levels (Dent). 3. Retailer Mix There exist six different elements of retail marketing mix for VixRecords (Cox and Brittain): Store Location: VixRecords should create a store that is quite convenient for the youngsters or the new generation people to visit at their leisure time like, near their universities or parks or near the cafeterias which they visit often during their leisure time. Merchandise assortment like providing different music chains like music or albums of different singers, discount music store that offering some amenities etc. Store ambience of Viz record can include wi-fi facility for the youngster and area to sit and chat with their friends, while listening to the latest songs of the singers. Further, they can also focus on changing the ambience of the store according to the festivals like Christmas, Valentines Day etc (Michman and Mazze). Customer Service like the company can provide replacement to the CDs or helping the youngsters with their queries 24X7. Price: Since the youngsters are mostly the college or school going students. They might not have enough money to buy all latest albums. So, the first thing that can be done is reducing the prices of the CDs or the albums they are looking for and also setting up a loyalty membership card for the returning customers. Communication with the customers can be done through mail and SMS about the latest availability in the store and also about the discount and offers. 4. Cross Functional efforts in strategic planning Viz Record need to coordinate with the operations of Java Wheels as they are also targeting the new generation. Collaborating the operations would help to assess the environment of the firm and also assess the supply chain of the organization which would help to determine the sustaining value. In other words, Viz Record needs to define the problems and also ascertain various options that would help to deal with the issues. Through integration of various operations like marketing, sales, distribution channel, finance and operation would help to plan different activities for meeting the rising demands of the young generation from the music industry (Oliva and Watson). 5. Strategic Planning In order to increase sales, Vix Records has to adopt several strategic plan such as Sell to Customer Need: In these digitalized days, majority of people listen music using several electronic devices such as mobile phone, laptop, music player, etc. However, in developing countries the trends of listen music via CDs continue. Therefore, Vix Records has to understand the needs and demands of customer especially the demands of young generation people. Majority of young people demands for hard rock music. Therefore, Vix Records has to stores CDs of hard rocking music in their stores. Development of Attitude: The staffs of employee within the stores along with store managers have to show polite behavior towards customers. When customer visit in the stores of Java Wheels they have to take care more and provide information about CDs individually. It cans help in motivating consumer and buying CDs from the store of Vix Records. 6. Growth strategies For improving the business profitability, engagement of customer is essential. However, in order to engage customer, Vix Records has to adopt several growth strategies in bith internally and externally. In order to improve the business organization has to develop and design new products such as music CDs of hard music, rock music, several types of pop songs, etc. Apart from that, organization has to provide discounts in their old CDs especially in the holidays. It can help in increasing sales because in holidays majority of customer visits in several store. Moreover, in order to increase sale, Vix Records has to involve more music player and provide the opportunities to customers for testing the music CDs. From the viewpoint of external growth, Vix Records has to involve strategy of joint ventures. Joint venture with the several restaurant organizations such as Dubai Creek Yacht Club, The Farm, etc will be better growth strategies because people mostly visit in restaurant industry rather than other. References Cianci, Philip J. Technology And Workflows For Multiple Channel Content Distribution. Amsterdam: Focal, 2009. Print. Cox, Roger, and Paul Brittain. Retail Management. London: Financial Times/Prentice Hall, 2000. Print. Dent, Julian. Distribution Channels. London: Kogan Page, 2011. Print. Michman, Ronald D, and Edward M Mazze. Specialty Retailers. Westport, Conn.: Quorum Books, 2001. Print. Oliva, Rogelio, and Noel Watson. 'Cross-Functional Alignment In Supply Chain Planning: A Case Study Of Sales And Operations Planning'. Journal of Operations Management 29.5 (2011): 434-448. Web.