INTRODUCTION TO HMV

HMV MISSION STATEMENT:

In pursuit of ambition to be most successful international retailer of music, books, videos company identified 7 key objectives: 1. Apply HMV Blueprint across Group, 2. Secure leadership in chosen Markets, 3. Deliver unrivalled authority, 4. Achieve superior financial performance, 5. Exploit new product opps., 6. Embrace alternative distribution channels & technologies, 7. Optimize store portfolio. HMV is one of the Most leading retailer stores Consists of music, Movies, Games and Technology goods all over UK with more than 250 Stores. The HMV brand became famous because of its attractive Logo which is a Dog and trumpet which shows history of British Music and Culture. HMV Opened its first store in 90 years ago on 20th July 1921 in London

. Since that HMV has a record of Making Music and entertainment available to their customers in every way they want and beyond their imagination providing with Old and latest collection of Music Customers wanted. HMV recognized passion of people for music, movies and games. HMV invented the idea of organizing in store events and inviting peoples favorite artists to perform within store and fans could meet them some of them which HMV Hosted are Michael Jackson, Madonna, Beyonce, Lady Gaga, One Direction, Justin Bieber etc (HMV, 2013) HMV Mainly Sells its own branded products, they provided customer accounts for their special customers and served other on the basis of one to one. As for the customers outside UK HMV had their appointed Dealers who sells only HMV products HMV became very successful all over UK and they expanded their stores in Major cities in UK which are Manchester, Leeds and Glasgow. Since 1960s HM Expanded its Product range in Home entertainment styles. It has become the most successful and leading Retailer of music, DVDS and Computer Games by recognizing what the Customer actually needs. The Company now has 25% of share of the National Music Market and 20% Of all DVDS and VHS Videos Sold, and 10% of Computer games. HMV not only has stores around the UK but it is also expanded across border it has chains in Europe, North America and Asia (The Times 100, 2013).

HISTORY AND BACKGROUND OF HMV

His Masters Voice opened its First landmark store in 1921 at oxford Street it quickly catch peoples attention for its logo which is a dog and gramophone, which was painting of Francis Barraud HMV company acquired that painting and used it as their company logo from 1909. On Boxing day 1937 there was fire which destroyed Oxford street building only HMV logo Survived and Unharmed Hmv was the first one to invent listening booth to its customers in this world. HMV Was Becoming very successful and well known store by 1986 they had more than 25 stores all over UK they even Opened stores in Ireland and Canada they also opened a new Oxford Circus shop by that time it was worlds largest recording shop. HMV Also Became Famous and Peoples Favorite Because of Hosting Events in their stores and by Inviting Famous Celebrities more than 200 Events were hosted each year.

HMV Launched their brand worldwide, During the 1990s they opened their stores in Germany, Japan, Hong Kong US, Singapore and Australia. EMI and Venture Capital Firm Advent investors Created HMV Media group in 1998. Which Developed HMV, Waterstones and Dillons which was rebranded as Waterstones later. HMV was the most Leading music retailers after 4 years in 2002, HMV Media Group were renamed into HMV Group and it was listed in London stock exchange.HMV bought a New Venue for 46 Million in 2009 to progress into lord of live music.Back in January 2011 HMV Sales were declining they made a decision to close its 60 Stores IN UK in the next 12 months.In December 2012 it was expected to have another decline in Sales and was in danger of breaching bank agreements. (PlyMouth, 2013)

2.0 PESTEL ANALYSIS FOR HMV: POLITICAL:

The policies of governments may promote rivalry war through the liberalization of telecom, promotions of electronic commerce and legislations. Also there might by far above the ground a government openly invest in national ICT infrastructures (Akinyemi, 2000). HMV can be better, faster and more productive by conducting more convenient access of internet for national users. Today, the increase in internet users and the much of the new affordable internet access all over the planet, may lead to rapid and extreme expansion into new markets. Therefore, HMV group has a major setback in its movie and music department. The illegal downloading still remains as a major problem for the group even with the copyright and design and patent act was imposed in 1988 and then was amended in the year 2002 (Amis, 1999).

ECONOMIC:
The high interest rates in the UK can slow down the consumers spending , on the contrary of the USA where the housing slump has reduced consumer spending. However, consumer spending is increasing in India and China because of the sky-scraping economic growth in both these countries. The massive growth was in the Internet retailing between 2006 and 2011 with 100% rising in sales. This growth was based on the number of the online households in the UK, which increased by 85% since 2006. In the year 2011 there were 617 million households from all over the world have an annual disposable income that has exceeded US$5,000. One part of this amount belongs to Asia Pacific which equals 143 million this will be second to western Europe

with 185 million. The group of HMV could be invited to join the BRIC market, also there is a possibility to have more potential customers for HMV (Alighieri, 2004).

SOCIAL:
Nowadays there is an increase in online social networking. The financial risk and the risk of the product category decrease in online shopping . from the year 2002 to 2007 the growth interest was 244.7% till recent years. Many studies have showed that 18.9% of world population use the internet. Marketing must take advantage of this new social media channel. It may be necessary to consider the risks Overcoming users increase. This commitment reflects the ability to increase market share (Atwood, 2011).

TECHNOLOGY:
The telecommunication, information and the broadcasting have lived an increase for Internet access. The usability of the media rich application increased due to the rapid development of high-speed network services. Also recently there was an increase frequency of use and resources for Internet access, which is done usually by the shoppers. The easiest available way for online shoppers is media rich contents as they connect the customers to the various online markets. HMV has technological advantages for your site retail allowing them to remain competitive in their respective industries (Beckett, 2012). In September 2008, the Group launched HMV Get Closer a social networking site that allows members to share their own import and collections11 music. This was reflected in the recent launch of its new digital download service - hmvdigital provide a competitive equivalent of iTunes, Spotify and other online music libraries12.

ENVIRONMENTAL:
Nowadays, amongst the people there is an increase awareness of global warming and pollution. People all around the world are becoming more and more conscious about the healthy environment. There are many changes in business methods to attract consumers and environment by becoming greener with packaging and postage (Betjeman, 2012).

LEGAL:
In Internet trading there are no specific uniform regulations, which are governing electronic trading in electronic commerce covering all the countries. If the group of HMV wants to survive as an international firm, the group has to act according to the environment of national and international regulations and rules (Bernires, 2013).

2.0 SWOT ANALYSIS FOR HMV:

Strengths:
- Good Location. - Innovative products. - Specialized marketing expertise. - Good process for consumer oriented. - Internationally partnership.

Weaknesses:
- Lacking of physical marketing. - Limited official locations. - Slow reaction to the changes.

Opportunities:
- More brand awareness created by more advertising. - Increasing in the number of the sales channels. - Accessing into new segments for new markets.

Threats:
- Competitors Innovation. - Globally Price wars. - More online retailers. - Pirated music.

Strengths:
Good Location:
The branches of HMV Group usually are located in prime shopping districts, which means high human traffic to ensure stability and growth over the recent and the coming decades. Also the location is extremely significant to make it easy for the consumers to get the products of the group.

- Innovative Products:
The group of HMV has innovated many special and developed products using different methods such as the Badges autographed by celebrities with the CDs sales and so on.

- Specialized marketing expertise:

The group of HMV over the last decades has created one-step solutions for the lovers of multimedia. The group has gained a very high position amongst the other corporations in the industry.

- Good process for consumer oriented:

Which contains preview of movies and CDs through physical outlets in different regions all over the planet.
Internationally partnership: The HMV group has partnered up with the Curzon, Cinema operator to introduce a differentiated experience of cinema, which is one of its kind amongst the industry products (Blake, 2013).

Weaknesses:
Lacking of physical marketing:

Only marketing efforts evident through online mediums and speech of mouth. There are no such official physical marketing for the groups products. Limited official locations:

The branches of HMV are exclusively in the prime shopping districts and other similar locations, which might not be reachable for some regions around the world. Slow reaction to the changes:

The group of HMV seemed to slowly involve into the changes in the industry. That opens a wide opportunity for other competitors in the same industry (Borges, 2012).

Opportunities:
More brand awareness created by more advertising:

By advertising, the consumer is able to take note a brand name and features. Generally, the advertisements help the corporation to gains more profits also allow those qualified individuals to find out more about the firm and its business lines.

Increasing in the number of the sales channels:

To reduce the period of delivering the products for consumers, the group has to set up more Etailing websites which are localized and easily reached. There is only one physical outlet for the firm, which makes it inconvenient for the consumers.

Accessing into new segments for new markets:

In recent days, the group of HMV is mainly focusing on movie and music markets at the first place. Also the is an increasing lack in books and games specialties in the whole industry (Brookner, 2001).

Threats:
Competitors Innovation:

Such as the new listening Jack and the new dick village which posses high audio quality and ease of use.

Globally Price wars:

For example, some of the CD shops are offering promotions for bundled CDs such as 3 CDs for $49 while other markets are selling the same but by half of the price but contains different quality.

More online retailers:

Most people around the world trend to buy online music through online retailers such as Amazon and iTunes. Usually people would not think of HMV first while purchasing online music.

Pirated music:

The increase in the illegal digital downloads from the Internet, is affecting negatively the productivity of HMV Group (Brown, 2011).

4.0 Segmentation, Targeting and Positioning of HMV

Segmentation Targeting and Positioning (STP) is very important for any business and organization, to clarify the circumstances in which a company or organization stand. Some companies are not perfect for the segmentation result, these companies are not able to divide the market into several sections or sectors, and does not satisfy the customer, because the customer requires proper distribution as young as pop and fast songs, is both old slow songs. Each client has different needs and wants, given the different needs and feel the market should be divided into smaller segments with the needs of the full content and satisfaction. (Paul Baines 2013)

4.1 Segmentation of Company

HMV is famous and largest company in the UK, which has 280 stores. In 1921, it was created, and now a day it was only because he makes the right segmentation, target their customers with confidence and positioning the product in a perfectly competitive market. Plan to create new customers and strengthen their relationships with existing customers. HMV has various segments, sales of comedy TV, DVD - CD, Blu-Ray, music, tickets, movies, mp3- players, etc. They have all these things in such a different variety; they retain all the old and new movies, song, pop, new songs and old. They sell the Nintendo DSI to take a child charm that is sure to appeal if they have children; kids buy more Nintendo DSI and the more profit they make. So all this happened because they are always attractive to everyone, giving them fun and entertainment they provide, make the right segmentation. Another important segment of HMV can do and served as online activities. This section will be able to watch new movies in the game, listen to new music, and people can also upload them very flexible and economical. Be prepared, the quality movies, games and music as it is available in the original CD and DVD, s. (Ashok Ranchhod 2012) Psychographic approach for HMV is used in market segmentation. Their lifestyles, attitudes, values, benefit sought and brand loyalty is critical to market segmentation, as it can allow companies to find customers in the target market. There are different people interests may tend to have different sensitivities and wants of the product, and so the company offers a wide range of products for customers to buy all the products that they want. In addition, the status of brand loyalty among customers is an important product for the company and HMV have made great efforts to ensure that make their brand known wide-reaching. (Billboard 2013)

4.2 Targeting of HMV

As HMV good market segmentation, it also plays a good role in planning or in targeting. According to HMV segmentation should be about people who are not able to buy the product or not being able to pay the price. In the Customer HMV sales fall recently tried to free online movies, downloadable music and games sites like Torrents, etc... Since this segment is designed for players, but they do not want to pay for the DVD - ROM and CD music and those who cannot wait to give birth at home, especially to go to the store to buy goods . They can be

designed for different types and ages of people from different areas, trying to give the best deals to attract customers to watch their favorite homo. They can improve the way they addressed their ads more if advertising is more, such as buses, taxis , subway stations, bus stops, and more people learn about their offers and products that are available, and more will be attracted to, they may make it more direct means of communication. Another thing is that if the game is more focused and movies and music that can attract more players on them, because now a days music and movies available for free on the Internet and can be easily downloaded , it will hurt business HMV (Paul Baines, Business & Economics 2012) There are already included in the segmentation and targeting HMV, to create a new segment of the online options that provide for their clients, as HMV launched a new segment in the name field HMV online, now they say that the maximum number of segmentation, HMV about a new segment for their customers, which makes advertising in various areas such as bus stops, subway stations, bus and tram cam. They also advertise through print media and TV. Another important thing in advertising is a new segment that advertising should be attractive to attract customers to HMV, in advertising, writing that they provide cheap rates to download movies and play music from any other site in the company also has the best advertising Kingdom sites that you visit most of the people who live in the UK. (Sharp 2011) 4.3 Positioning of HMV

Segment -oriented marketing approach commonly offers a number of advantages for both companies and customers. It can be concluded that HMV use geographical, social class and psychographic methods in their market segmentation. HMV said to be universal, with 328 stores worldwide, and allow customers to buy their products in the country or from the official website to buy their products. This is regarded as an effective segmentation, because they usually show the client, but only for some countries or regions with specific places. The income level of customers may affect their food purchase. Prices advertise products on the market should be set lower than the fair value which on average, price for each of which can buy their products. (Brito 2013)

6.0 CONTROL AND EVALUATION:

A New Segment is introduced by HMV, which results them into face many competitors in the market, competitors will try their best to fail the segment of HMV, but HMV is trying to give competition by giving low price and Better offers to make it a successful segment. In Starting HMV have to put decent profit margin doesnt matter if they are earning low profit main reason is to mature and survive their new segment in the market. They will be doing a monthly evaluation in order to know how well are they doing plus they will be checking their expenditures on advertising and marketing etc. Nowadays there are several kinds of Viruses in the internet which comes to computer which could damage all the important Data and information of HMB they have Hired Special Computer Technicians to avoid such kinds of Damage. Another problem is theres a lot of Computer hackers on web which can effect HMVs Online business, HMV is in Contract in with Famous Security company which provides them safety from these internet hackers and thefts which helps them to reduce their risks of getting robbed online or stealing the information from them. HMVs new segment hopefully will be successful in they good decisions on all these factors mentioned above. (UKEssays, 2013)