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Repositioning High-FidelityTurntables to Hip Professionals
July 31, 2009Consumer Behavior C55.0002Tuesday / Thursday 3:30 – 4:45Ariel Bitranab2490@nyu.eduCheryl Neohlxn201@stern.nyu.eduJeremiah O’Neiljeremiah.oneil@nyu.eduErica Swallowericaswallow@gmail.comAndrew Wongandrew.wong@nyu.edu
 
I. Executive Summary
To take advantage of resurgence in vinyl record sales, our group has researched thefeasibility of repositioning Rega turntables to a younger segment of “hip professionals.” Asdigital music, both purchased and stolen, has acquired a vast market share among our targetaudience, the greatest challenge is convincing consumers their investment in a Rega turntablewill provide enough utility. Focus groups show that price and convenience are the two largestfactors in purchase decision-making for our target of relatively affluent urban audiophiles. Thus,we will be highlighting the hedonic musical experience associated with turntables, while sellingthe product at a competitive price. We plan to communicate the terminal values Rega offers byusing visuals that portray social praise and the ability to become an opinion leader in one’sreference group. Ultimately, this retro brand can be revived through effective marketing.
II. Project Definition and Goals
During the 1960s and 1970s, the vinyl record was the most popular format for musicdistribution. New recording techniques allowed the mass production of vinyl records, launchingthe golden age of the audiophile. This era ended in the 1980s and 1990s when studios developednew music formats; rich and warm analog sound soon gave way to cold and flat digital music.Yet, within the past decade, vinyl records have made a comeback along with the turntablesnecessary to play them. Accordingly, we have decided to reposition Rega turntables to a younger urban market of “hip professionals,” the new consumers of vinyl records.Rega’s turntables can address four consumer needs: access, quality, socialization, andrespect. First, high-fidelity turntables grant consumers access to analog music. Rega can satisfycustomers’ needs to play new records by repositioning complementary products. Second, modernaudiophiles often describe analog sound as being of unmatched quality, a major selling point.Third, consumers can use record players to satisfy social needs. Unlike the iPod’s solitary music
 
experience, turntables play music for group enjoyment. Fourth, turntable ownership symbolizestrendiness and musical expertise, garnering respect for young audiophiles.For our project, we worked to resolve several key issues associated with Rega’srepositioning strategy. First and foremost, our research considers how consumers perceive thisneed-gap and whether they regard turntables as a potential solution. Along these lines, our reportalso describes the target market’s current attitudes towards turntables and where these consumersacquire information to evaluate audio technology. Our work also considers how consumers listento music and how consumption contexts can influence equipment used. Finally, we describe thestrategic implications for Rega and its positioning against potential competitors.
III. Preliminary Industry Investigation
Recently, the vinyl record industry has seen an unprecedented resurgence. After LP saleshit a record low in 2006, the International Federation of the Phonographic Industry reported thatglobal sales doubled during 2007 from 3 million to 6 million units (Winneker). Domestically, theRecording Industry Association of America reports 1.3 million records were sold in 2007, 36.6%more than in 2006 (Newman). As a result, turntable sales grew nearly 80% during this same time period (Winneker). To exploit this potential revenue stream, artists like Madonna, U2, Coldplay,and Metallica are releasing vinyl records for both back catalogs and new hits. Moreover, retailerslike Best Buy, HMV, Virgin, and Amazon.com are beginning to stock LPs alongside their CDs.Rega Research Limited, a premier British maker of contemporary turntables and high-endaudio equipment, is poised to take advantage of this trend. Since Rega’s launch in 1973, productlines have included amplifiers, speakers, tuners, and its legendary turntables (“History”). Thecompany’s current turntable models range from the entry-level P1 to the high-end P9, and itstonearms are highly regarded for quality performance for a low cost (Stereophile; “History”).
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greatcliffhange7983

What?Aaaah... that's the issue in dispute http://bit.ly/bwe7hb

reply02 / 21 / 2010
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