1. Abercrombie & Fitch Marketing team Pandora Radio Anqi Wang Dongqi Wang
Jing Xu
Jing Zhang
Ni Su
Yueqi Meng

2. CONTENTS 01 · Background and Objectives 02 · Methodology
03 · Areas of Discussion
04 · Key Findings
05 · Conclusions and Recommendations

3. Background
Pandora is a music streaming and automated music recommendation service.

4. Number of Pandora's active users from 2009 to 2014 (in millions)
Background
Number of Pandora's active users from 2009 to 2014 (in millions)
Total Revenue increases by 30%
Advertising Revenue increases by 31%
Subscription and listener base increases.

5. Problems
Competitors
Most of Pandora’s competitors are more customized and allow audiences to choose music freely

6. revenue-model-comparison
Problems
Figure from 2015, Pandora is actually losing subscribers
revenue-model-comparison
2015, Compare to its competitor Spotify, it is losing the battle
Potential Risks

7. Pandora is not as popular as it was several years ago
Problems
, The growth rate of active users of Pandora decreases significantly
, Revenue growth rate from advertisement is decreasing
Pandora is not as popular as it was several years ago

8. improve Pandora’s popularity and increase active users
Objective
Determine the reason why Pandora is not popular among users anymore. The research will be used to develop an effective method to
improve Pandora’s popularity and increase active users

9. Qualitative Research Focus Group Dyads
Methodology
Qualitative Research
Focus Group
Dyads
Active Group
Non-active Group
Dyads Advantages:
Two respondents in each group have same interest
Separate different kinds of interviewees and avoid cross influencing

10. Respondent's characteristics
Methodology
Aged between
20-30 youngsters
Both male and female
Respondent's characteristics
Smart phone users.

11. Screening Requirements
Methodology
Like to listen to music on mobile
Used Pandora radio
Screening Requirements
Keep using Pandora radio/ Switch to other music apps
Have not participate in a market research study for past 6 months

12. We developed two discussion guides:
Areas of Discussion
We developed two discussion guides:
One for active users, the other for non-active users
In what conditions do you use music apps?
What features of Pandora do you like/ dislike?
Why do you choose to pay/not pay?
If Pandora is a person, how would you describe it?
Any recommendations for Pandora?
Main topics

13. Non-active users (Sean & Stephanie’s group)
Key Findings
Non-active users (Sean & Stephanie’s group)
Turn to Spotify from Pandora
Use Pandora for Background music
Cannot choose music on Pandora
No willing pay for ads
Stephanie
Sean

14. Active users (Sebastian & Lars’ group)
Key Findings
Active users (Sebastian & Lars’ group)
First one and free
No willing pay for ads
Like thumb up function
limited skipping function doesn’t bother them
Lars
Sebastian

15. Active users (CiCi & Sam’s group)
Key Findings
Active users (CiCi & Sam’s group)
Use Pandora when bored, commuting, before bedtime, working, showering, working out, studying
Pandora is a friendly person
No willing pay for ads
The long history of providing music streaming service gives a great reputation for Pandora.

16. Non-active users (Manson&Dorothy`s group)
Key Findings
Non-active users (Manson&Dorothy`s group)
use apps to listen to music when they are working&showering,etc.
paid users of Spotify, less ads and more flexibility
Can not search the songs & annoying ads on Pandora
For pandora, they can add any favourite song into the playlist and access it later. Often while at home or doing exercising, they will just play on that playlist of all songs that they have liked.

17. Conclusions Conclusions:
Pandora still has a high reputation as it is the first music streaming service. Pandora has bases of loyalty customers especially who prefer to go with tradition. However, history is history. The history is sweet but the reality is so cruel. Pandora cannot remain stagnant as competitors such as Spotify has stolen Pandora’s customers. In this condition, Pandora has to make some changes to bring more value to customers and stole customers back from Spotify.

18. Suggestions Suggestions: (Tactical and Strategical) Tactical:
Add features for saving or repeating a song so that the same song can be played again
Create own stations with selected songs
Try to improve and allow more skips
Strategical:
Add more other language(such as Chinese) songs
Expand availability outside nation

19. Q&A
Any questions?

20. Pandora Radio
Abercrombie & Fitch
Marketing team
Thank you!
Team 2