Business Plan Artist Management 11-10-‘10 Teacher: HP Nieskens Names: Ratna Janssens Kaylou Toonen Annelot Suijk Jasmijn Verreussel Stefanie van de Ven Hein Beekmans 1 Table of Contents 1. Executive Summary ............................................................................................................ 3 2. General Company Description .......................................................................................... 4 3. Product and Services ......................................................................................................... 5 4. Marketing Plan ..................................................................................................................... 6 5. Operational Plan ................................................................................................................ 11 6. Management and Organization ....................................................................................... 13 7. Personal Financial Statement ......................................................................................... 14 9. Budget ................................................................................................................................. 15 10. Appendices ...................................................................................................................... 16 2 1. Executive Summary We are a brand new artist management company called “LUST”. The owners of this business are Kaylou Toonen, Hein Beekmans, Ratna Janssens, Jasmijn Verreussel, Stefanie van de Ven and Annelot Suijk. We will manage new artists and help them get to know the world they are going to work in. We will guide the professional career of the artist in the entertainment industry and oversee the day-to-day business affairs of the artist. We will also give advice and counsel the talent concerning professional matters, long-term plans and personal decisions which may affect their career. With this business plan we want to start up a new virtual band, called “Monkey Mushroom”. Our target group is people from the age of 18-35 years old. We anticipate to the new trends and developments within the music industry. 3 2. General Company Description Company Goals and Objectives The vision of our company is that every talented artist, who will go for the full 100% for his career, deserves a chance in the entertainment industry. We, as an artist management, would like to contribute to this. Our managers will have close contact with the artists en they will provide a good development of the career. We consider the wishes of the artist and provide the necessary expertise. The mission of our company is that music is a way to tell a story. We would like to do this on the right an affordable way. We would like to share the music with the listeners. Market Our target group are average people between 18-35. These people will have an average income level and they will live in the bigger cities. Industry The industry we are in is the entertainment industry. This is a fast growing industry. On the long term the products and services in this industry will become cheaper. There will not be many new things to see in the coming years in this industry. Company strengths Our product is distinctive and visual. There is a visual band projected on stage. There aren’t any other bands that are doing the same thing. Expect for Gorillaz. Therefore this is our biggest competitor. 4 3. Product and Services Band At LUST (company name) we are committed to achieve the best match between music and visuals. We guarantee a spectacular virtual band called Monkey Mushroom. The band makes hip hop music with a lot of reggae influences. Their style can be describe as really edgy and alternative. The band is composed of three animated members: Singer: Lee Rapper: Mamadu DJ: Raoul USP: Monkey Mushroom not only for your ears but also for your eyes! CD The first album that they will release is called ‘Extravagant Delight’ and contains twelve tracks. The songs on the album are all written and produced by their own. Performances The band will be performing all over the country and further. A Monkey Mushroom performance is not like other performances because of the life music and the 3D-show. It guarantees a maximum experience that you have never experienced before. Merchandise Monkey Mushroom has got a wide range of merchandise for all their future fans. They got: T-shirts Sweaters Stickers Baseball caps Games Bobble heads Mugs Posters Bags 5 4. Marketing Plan Market research In the music industry there are not that many virtual bands. De most familiar band is of course “Gorillaz”. Gorillaz is a British virtual band and a multi-media project of Damon Albarn en Jamie Hewlett. The group was founded in 1988, the band members are fictional characters 2-D, Noodle Noodle, Russel Hobbs, and Murdoc Niccals. Gorillaz started in 2001 with organizing concerts. This band is therefore our biggest competition. But next to this band there are also other bands in the same music genre. We will only mention the Dutch band because we are already distinctive as a virtual band in the Netherlands. Different reggae bands in the Netherlands are; Luie Hond The Sundance Kid Zebra Marcus and the Rebels Mighty Pirates New Born Creation Jammah Tammah Poor Man Friend Instant Seawater Roots Encounter Stenchtown Mopion Out of Many E.S.P MMAF Nice Time Rude Rich and the High Notes Dread & Dreadless. Redemption. Awareness Mystic Band The Dub Meditation Ibo Jacob Elijah Kalswe & His Roots Reggae Team Economics The total turnover of the music industry decreased with 6,8% in the first half year of 2009 compared to that same period in 2008. The number of CDs that been sold decreased with 8%. In 2008 there were about 8 million CDs sold, but in the first half of 2009 there only were about 7,4 CDs been sold. The turnover of the global record industry has almost halved since 2000. Concerts now replace CD sales as income for artists. (Source: www.tijd.be) The biggest barriers we have to deal with are the costs of the production. It will cost a lot of money to develop a professional virtual band. That is why this is our biggest barrier. If there are going to be some changes in technology it will only make us product better because we are dependent on the technology we have. It can be that there will also be some changes in the Music industry or in the economy. But it hard to say if that is positive for our product or negative, this depends on the changes there are going to be. 6 Product Our product is a virtual band. De band has a DJ, a rapper and a singer. The band plays reggae and hip-hop music. That the band is virtual and de combination of reggae and hip- hop makes this band distinctive from others. In the Music industry there are not that many virtual bands. As mentioned before, “gorillaz” is our biggest competitor. The positive things of this concept are that you can give the members a special look that a lot of people would like. By using a rapper, DJ and a singer you also can reach different target groups. By putting the rapper, DJ and singer together you make your target group bigger. Once the target group is familiar with this band, the band will continue surprise the audience with new product. As figures shows out that concert are the new revenue source for the music industry, this band will also give concerts. But because of the fact that this band is virtual, the band member will be projected on the stage. This will give the audience another experience then they used to. Customers Age – 18-35 Gender - male/female Location - national/international Income level - Average income level Social class and occupation - working class Education - average education level Graphic education, music interest 7 Competition Importance to Factor Me Strength Weakness Competitor A Customer Virtual Band Animation Expensive Gorillaz 1 Products Innovative Higher better quality More risks -Lady Gaga 1 Price -Madonna - Elton John -Different -Innovative less Gorillaz 1 Quality knowledge -Innovative -Different Visual designers Innovative music Unique low animo Gorillaz 3 style and Service experience Video Games 3D movie High No human Technical Gorillaz 3 Reliability illness failure Virtual technology Refreshing not a lot of 3D Games 5 knowledge Upcoming 3Dmovies Expertise knowledge Amsterdam Capital, Long distance -Utrecht 5 worldwide, Location Reputation of Amsterdam Virtual Band 3D less 1 Appearance performance appearance DVD Visible Expensive All bands 1 Sales Method CD Touchable Concerts Reachable Television Visual Expensive All bands 1 Posters Advertising Billboards Internet Edgy Alternative, Tricky Gorillaz 1 Image innovative, different 8 Comparing to other competitors there are several things that works in our advantage. For example we offer a unique and innovative product to a saturated market what makes our product stand out above our competitors. This due to an totally new appearence comparing the rest. This all will infect our image and the quality of the product which will have a positive influence. This will also bring disadvantages. Because we are unique and innovative we are working with new technology. This brings along high costs and a need to expertise Niche We are an innovative and one of a kind new virtual band in Holland which can compete with new music developments because we offer high quality, unique appearence and have a high reliability. Promotion We will use a promotional mix which consists the following idea’s. - Monkey Mushroom will