Spotify vs Apple music

Agenda : Company overview, Product's feature& Price, Strategy & Implementation, Risk analysis and mitigation

Transcript

2. Company overview Product’s feature & price Strategy & Implementation Risk analysis and mitigation Agenda
3. Company Overview (Apple Music) • Release iTunes software for Mac computer • Itunes store launch 200,000 songs prices at 99cents each • Sold 25 millions tracks at the end of the year Steve Jobs Founded in 1976 Launched iTunes in February 2003 company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
4. Company Overview (Apple Music) 2003 : Launch iTunes store in U.S , Prices at 99 cents per track 2004 : Branching in U.K , France and Germany 2009 :, Prices at 69 , 99 cents and 1.29$ Reaching 22 million due to Ipod’s success company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
5. Company Overview (Apple) 2013 : iTunes turn 10 years 2015 : Launch Apple Music & acquired Beats (Beats Music) 2019 : 60 millions suscribers 2012: World dominated , Russia and India & 54 other countries company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
6. Company Overview (Spotify) • Unpaid services (Invitation only): limited number of user → lift 2009 • Paid subscription users could join any time Daniel Ek and Martin Lorentzon Founded in 2006 Launched in October 2008 company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
7. Company Overview (Spotify) 2011: Launch in USA (6 months of free) with 10M in EU 2012 : Launch in Germany, Australia, New Zealand 2013: 1M US paid & 6M users for 11 countries 2016: 30M paid & 100M active users company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation 2017: 140M active users 2018: 83M paid & IPO in NYSE
8. Company Overview company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
9. • Free 1 month to new user • 199 Baht/Month for Family ◦ Access up to 5 people 129 Baht/Month Promotion: Price • Free for first 3 months • 69 Baht/Month for University Student • 199 Baht/Month for Family ◦ Sharing of itunes purchases ◦ Access up to 6 people company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation Promotion: 129 Baht/Month
10. Global Streaming Music Subscription Market 2018
11. • 40 million songs • On-demand unlimited listening of every song in the spotify catalog • Free service: ◦ can’t select a particular song ◦ could create a station with ads • Premium user: ◦ higher-quality audio + other features Features • 50 million songs, plus your entire iTunes library • Free try • Download for offline • See what your friends are listening to company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
12. • Feature: Features • Feature: company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation BETTER BETTER
13. To solve the problems 1. REDESIGN 2 Strategies to solve problem Create New Features 2. EFFECTIVE COMMUNICATION Raise Features Awareness company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
14. To solve the problems REDESIGN Strategy 1 Create New Features To attract more customers and penetrate market: 1. Socialize 2. Redesign and develop platform 3. Real time 4. Convenient company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
15. To solve the problems REDESIGN Create New Features To attract more customers and penetrate market: • Socialize ◦ Upload your song (original and cover) • Redesign and develop platform ◦ Theme and arrangement ◦ Improve AI system for personalized playlist • Real time ◦ Playlist according to current trend in each countries • Convenient ◦ Payment: Counter-service in 7-11, Truemoney, etc company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
16. To solve the problems EFFECTIVE COMMUNICATION Strategy 2 Raise Features Awareness Due to high brand awareness but low features awareness: 1. Advertisement 2. Billboard 3. Social Influencer 4. Tie-in company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation
17. To solve the problems EFFECTIVE COMMUNICATION Raise Features Awareness Due to high brand awareness but low features awareness: ◦ Tie-in ◦ Social Influencer ◦ Advertisement ◦ Billboard company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation Marketing Campaign
18. To solve the problems Risk analysis & Mitigation company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation Risk analysis Switching cost Influencer does not effective as expected New features in app don’t suit customer’s needs New features won’t grow sustainably Low Medium High Low Medium High Impact Probability
19. To solve the problems Risk analysis & Mitigation company overiew product’s feature & price Strategy & Implementation Risk analysis & mitigation Risk analysis 1. Switching cost 2. Influencer does not effective as expected 3. New features in app don’t suit customer’s needs 4. New features won’t grow sustainably Mitigation 1. FREE Trial , Get benefits or rewards 2. Create KPI to measure the effectiveness of influencer 3. Do wider range survey with target group 4. Always take customer’s feedback as an improvement
20. Q&A THANK YOU