MKT 3300-003 Professor Soysal Group 8: Amanda Buhrkuhl Ashleigh Lofton

1. MKT 3300-003 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 18-34 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 • http://www.pandora.com/advertise

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

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

10. Demographics Segmentation

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 18-34 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