1. MKT Professor Soysal Group 8: Amanda Buhrkuhl Ashleigh Lofton Brittany Wall David Booth Royce Widjaja Sigourney Rivas

2. Challenge Pandora has a large industry market share
However, there are many competitors: ◦ Spotify ◦ iHeart Radio ◦ iTunes Radio
Pandora must find a way to differentiate themselves to remain the industry’s leader

3. Company Pandora Radio: Free internet radio service
A strong brand trademark since 2000
It is most popular with years old
Accessible on over hundreds of devices & cars
Manage hundreds of stations based on artist, songs, & genres
Songs are individually analyzed by paid musical experts
95% of its songs are played monthly

4. Company Pandora’s Users: 71M active users 2.7M subscribers
125M U.S registered users
75M International registered users
1.5B monthly listeners hours
Feedbacks left by registered users:

5. Company Market Shares (2013): 70% market share
It’s stock value has tripled
$5 billion dollar stock market value
Has 28 major markets
427.1M revenue
260M mobile revenue
Goals:
Improving its usage
Increase long term users

6. Competitors Strengths: Skip forward & backward 6 months free trial
Easy connection with Facebook
Simple music library
Usable without internet
Free
Real-time feedback
15M songs
Connected with xbox360 & GoogleTV
Free or $24.99 annually
Most valuable brand in the world
Partner with major ads deals; PepsiCo, McDonalds, Procter & Gamble.
"Buy" button
Weaknesses:
Low awareness
Highest cost
$4.99/month on desktops & laptops
$9.99/month on all devices
Clutter & complicate usage
Lots of songs, but all of them are from the same 400,000 artists
Huge amount of ads
Apple users are used to using Pandora
Doesn't allow monthly payment
Available only on iPhone, iPad, iPod Touch, Macs, Mac Pc, Apple TV.
Market Shares:
18.7% market share
Revenue: $99M
2.5M paying subscribers
20M active users
11.4% market share
Revenue: $480M
60M active users
30M registered users
75% share of worldwide digital music
Revenue: Unknown
Subscribers: Unknown

7. Customer 70.9 million active listeners
Minors, young adults, adults, seniors
Diverse group of people
Pandora listeners are divided by: ◦ Music preference ◦ Ease of use ◦ Ad free

8. Context
Political & Legal Environment ◦ Copy Right Act of 1976 ◦ Pandora pays royalty fees
Economic Environment ◦ Pandora charges $36.99 per year/$3.99 per month
Social and Cultural Environment
Technological Environment ◦ 1 million songs ◦ High royalty fees

9. SWOT Analysis Strengths: Weaknesses: Opportunities: Threats:
Accessible from all Apple products, Androids, Blackberries, Windows Phone, all tablets & computers, some cars & other 100+ devices
Have over 71million active listeners
Song has been specialized by music experts
Best customize music experience. "Human Touch"
95% of its songs are played monthly
$5 billion dollar stock market value
Weaknesses:
Free only up to 40 hours monthly
Can't download or purchase songs
Higher cost compared to competitors
Does not advertise itself
Less partnerships than competitors
Only available in U.S, Australia, & New Zealand
Opportunities:
Matching price with iTunes Radio: $24.99
Partnership with more car companies
Connecting with social medias for easier access with a free three months trial; Facebook
Partnering up with all HTC smart phones
Having a "Juice Box" at restaurants.
Partner with Gyms; preferable songs for athletics
Merging with Windows computers
Allowing users to skip tracks & adding more songs
Threats:
Pays higher royalty fees than traditional radio
It's competitors have a lot more songs
Growing market creates increased competition
It's competitors merging with large major ads deals
Local radio
Spotify
iHeart Radio
iTunes Radio

10. Demographics Segmentation
Age Group
Estimated
Price Sensitivity
Needs & Wants
Usage
Best Ways To Reach Users
Ages 13-17
22%
High
Simple, entertaining
Smart phones, tablets
Social media, TV ads
Ages 18-34
45%
Moderate
Wide range music, accessible
Smart phones, tablets, computer, cars
Social media, radio stations, TV ads, billboards
Ages 35-49
20%
Low
Wide range music, simple
Smart phones, cars, computers
Ages 50 & up
13%
Accessible, specific selection, simple
Computers
TV ads, billboards, print ads

11. Targeting Target Market: Ages 18-34 in the U.S.
45% of Pandora listeners (highest of all segments)
Focus must remain on this target market, cannot risk losing to competitors
Single Target Market Approach

12. Positioning
“For people between the ages of who value the art of music, Pandora is the leading Internet Radio that is committed to delivering an incredible music experience that YOU love.”

13. Positioning Most interactive radio
Partnering with various companies in different industries: ◦ Instant access on cars ◦ Android based smart phones ◦ Windows computers ◦ Local gyms & restaurants

14. Product & Price
Product ◦ Allows up to 100 stations ◦ Easily accessed (mobile devices, tablets, cars, computers) ◦ Broaden Pandora Services: social media & more car models
Price ◦ Free service & paid subscription ◦ Promotional discounts with social media partners

15. Promotion & Place
Promotion ◦ Social media sites ◦ Various makes and models of vehicles
Place ◦ 3 countries: U.S., Australia, New Zealand ◦ Distribution channel: direct ◦ Pandora is currently available on: mobile devices, tablets, computers, 100 vehicles, TVs, Blu-ray, home theatres

16. Conclusion Pandora will target the largest user base: ages 18-34
Implement changes: ◦ Discounts for ad free listening ◦ Accessible on wide range of devices ◦ Ease of use
Results: ◦ Increased revenues ◦ Future profits ◦ Solidify Pandora as leading Internet radio

17. Questions