Joshua Bloom – University of Michigan Ross School of Business

PUTUMAYO WORLD MUSIC COMPANY

BACKGROUND OF PUTUMAYO
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Created in 1993 by co-founders Daniel Storper and Michael Kraus Idea was to package individual artists from distinct regions onto an album for retail sale Target customer is defined as “cultural creatives” which represents millions of people around the world that are passionate about culture, travel, and the arts Album Examples

EXISTING BUSINESS MODEL
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Putumayo Talent teams will travel the world in search of artists that potentially could be placed onto a Putumayo album. The albums are packaged by Putumayo, and are distributed and sold in nontraditional retail outlets such as museums, cafés, deli’s, clothing shops, and grocery stores Company typically releases 14 albums per year
Value Chain
International artists Putumayo talent teams Retail Stores Target Customer

*value creation occurs from talent teams discovering and interacting with local artists from around the world *competitive advantage lies with quality of album compilations, and nontraditional retail sales strategy

INNOVATION TO BUSINESS MODEL
•Create an interactive website that allows for R=G and N=1 concepts to improve the business model •R=G •website will have the capability for local artists to upload music to the site for review by talent teams •Current database of thousands of artists will also be loaded to the site •N=1 •website will enable customers to interact more with Putumayo, other cultural enthusiasts, and artists from around the world •Artists pages will have artist background info, events listing, and area to post questions •Customers can create personalized portfolios of sampled and purchased music, and can create user names to communicate with other Putumayo customers •Several Search parameters will exist to help users find new artists and new music. Putumayo can potentially integrate music genome technology, which is currently used by Pandora.com to help users find new music based off of previously sampled or purchased music.
Cultural Enthusiasts Global Artists

Putumayo Employees

Interactive Website

Non-Profit Organizations

Retailers

Music Events

GROWTH POTENTIAL
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Interactive website will enable the formation of a Putumayo community, which will increase customer loyalty New sources of revenue growth:
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Addition of website does not sacrifice traditional business model of selling in retail outlets
International artists Putumayo talent teams Interactive Website Target Customer

Advertising space on website Direct purchases of songs from website Formation of albums based off of most popular song downloads create albums that are already market tested

*Creation of interactive website allows for more value added processes

Putumayo Albums

Retail Stores

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