Section 003- Group 8

Royce Widjaja
David Booth
Brittany Wall
Ashleigh Lofton
Sigourney Rivas
Amanda Buhrkuhl

Executive Summary:
Pandora Radio is the largest Internet radio broadcaster in the United States, thanks in part
to their unique song selection algorithm, the Music Genome Project, and is the industry leader in
monthly active listeners and total songs played. The current market for Internet radio is diverse,
with numerous competitors vying with one another for more listeners and intense competition in

features and benefits of the listening experience. In order to maintain such success in this market,
Pandora must increase ad revenue by increasing the amount of active listeners.
Pandora will increase the user base by improving the usage of the service and partnering
with other companies for product integration. Pandora will also increase the features for free
users and make listening through various social media a streamlined process. Pandora will focus
these efforts on the 18-34 age group, as it offers Pandora the highest potential listeners in the
short and long term. This will solidify Pandoras role as the leading Internet radio service which
in turn will drive advertising sales and result in increased revenue and profit for Pandora and its
shareholders.
Challenge:
Within the competitive Internet radio industry, Pandora is the clear leader. Pandora takes
advantage of its proprietary musical algorithm, the Music Genome Project, to deliver listeners
the kind of music they want. Although Pandora has a large industry market share, a large
competitor, Apple, just recently released iTunes Radio, yet the effect on Pandora has yet to be
discovered. Pandora faces the challenge of maintaining its user base in order to remain the
industry leader. Pandora will take advantage of its unique features, make Pandora more visible
by integrating with other products, and entice its users by offering discounts and making it easier
to use. Pandora will position itself as a solid industry leader after the success of this campaign.
Situation Analysis (4C's)
Company:
Pandora Radio is a freeInternet service that formed in 2000, and currently the number one
provider of Internet music streaming. Pandora is currently only accessible in the United States,
Australia, and New Zealand. Currently, Pandora is most popular with 18-34 years old. What
makes Pandora such a popular Internet radio service is that users are be able to "like" or "dislike"

a song, which create a personalize musical algorithm of a certain genre based on favorite songs
and artists. Pandora's core competency is that it has 800,000 songs, 400 musical attributes, and
2000 focus traits that are individually analyzed by Pandora's musical experts. Pandora has
created the world's largest personalized Internet radio service, with 70 million monthly active
listeners. It has become the largest radio station in every major market in the United States with
over 8% of total U.S radio listening. It has built an extraordinary team, over 700 strong with a
sales presence over 28 major markets, that delivered over 15 billion listener hours in fiscal 2013.
It has delivered total revenue of $427.1 million and mobile revenue of $260.1 million in fiscal
2013. Pandora has a $5 billion stock market value as of November 22, 2013. Pandora is also
available in multiple devices including Apple products. It has a high monthly fee compared to its
competitors, but it is not the highest. Its overall goal is to increase users by improving its usage,
merging with other companies, allowing users to skip tracks, connecting through Facebook
account for easier and faster access, and focusing more in the United States.
Customers:
As of October 2013, Pandora Radio has greater than 70% Internet radio market share yet
only has 8.06% share of U.S. radio listening, an increase of 1.45% from 6.61% at the same time
last year. This share represents a total of 70.9 million active listeners, an increase of 20% from
59.2 million during the same time period last year (Pandora). Pandoras customers represent a
diverse group of people, all wanting the same yet different things. Pandoras customers are most
divided on the type of music they want to hear, but are connected through a common goal; listen
to the songs they want to hear, when they want to hear them. Some listeners want ease of use
while others prefer ad free listening. Most of Pandoras customers prefer not to pay for service
however; those that do pay do not necessarily shop around for prices. Being that Pandora is such
a unique listening service, the competitors do not offer the same benefits. This helps listeners

during their decision process to choose an ad free listening service because they know the songs
they choose to listen to will be supplemented with very similar songs that will expand their
musical horizon. The Music Genome Project, which exclusively powers Pandoras musical
selection, also attracts free listening customers who do not necessarily mind sitting through
occasional advertisements. Overall, Pandoras customers represent a very wide ranging group
that included minors, young adults, adults, seniors, and everyone in-between.
Competitors:
Pandora's two main sources of revenue are advertisers and paid subscriptions, however
the cost that Pandora is paying for the right of streaming the selected music takes out a huge
portion of their profits. Recently, the biggest challenges that Pandora faces are the increasing cost
of streaming music, decreasing in the number of users, other radio companies such as Spotify,
iHeart Radio, Traditional Radio, and the release of iTunes Radio; a similar online radio service
by Apple. Despite these challenges, Pandora now has the opportunity to become an even greater
Internet radio service. While Pandora is available in multiple products, its competitors are only
available on certain products. Spotify, Traditional Radio, and iTunes Radio. Spotify is only
available on computer devices unless subscribed monthly or annually. Traditional Radio is only
available in cars or on a normal radio. iTunes Radio has the least accessible because it is only
available on Apple products. While comparing Pandora to Spotify, Pandora is obviously the top
winner in its market share. Spotify has a market share of 18.7% with a revenue of $99 million
with 2.5 million paying subscribers. Pandora has a $5 billion dollar market share with $427.1
million and mobile revenue of $260.1 million this year, while Apple iTunes radio holds 75%
share of worldwide digital music market and has $5.6 billion in revenue and they have recently
sold its 25 billionth song, with 15 billion of those sales coming in the last three years. Pandora
charges $36.00 annually, it does not have the highest monthly and annually fee, but it does not

have the lowest either. Traditional Radio and iHeart Radio is free, and iTunes radio has a fee of
$24.99 annually. Spotify is only company that charge a higher fee than Pandora. Spotify is only
free on web and desktop client, it has a fee of $4.99 a month on devices or $9.99 for the premium
version. Also, there were multiple complaints from users that the iHeartRadio app crashes on
them multiple times. Overall, Pandora has the second highest fee compared to its main
competitors, but with the free months free trial if activated upon account registration with a
Facebook account the annually fee seems reasonable and its strength makes up most of its
weaknesses and it is way better off compared to its competitors.
Context:
(Political & Legal Environment)
For this matter, the Internet radio industry varies across the globe. In the United States,
Pandora takes advantage of a statutory licensing provision of the Copyright Act of 1976. This
provision allows Pandora to play music from various sources without the need to directly
negotiate with the owner of the digital media. This law sets a minimum royalty fee schedule that
all Internet radio broadcasters must abide by. Pandora is currently lobbying Congress to pass a
law entitled the Internet Radio Fairness Act, which attempts to drastically reduce royalty fees
paid by Internet radio broadcasters such as Pandora and iHeartRadio, owned by Clear Channel
Communications, set in 1976 under the "Fair Market Value Model."
In other parts of the world, statutory licensing provisions do not exist. Internet radio
broadcasters like Pandora are forced to directly negotiate with owners of digital media over the
licensing rights and royalties paid to the owners each time the song is played.
This presents a challenge to Pandora in that royalty fees would be substantially higher and
negotiating with various record companies would drastically increase costs associated with
having their service played in these parts of the world.

(Economic Environment)
Royalty fees are set by statutory licensing provision of the Copyright Act of 1976. It
declares a minimum fee schedule that all Internet radio broadcasters are forced to pay to the
owners of digital media. All Internet radio broadcasters are subject to this fee schedule however,
not all Internet radio broadcasters create revenue in the same way. Pandora charges $36.99 per
year or $3.99 per month for ad free listening of their service. iTunesRadio starts out at an annual
price of $24 while Spotify charges $10 and iHeartRadio is completely free. Pandora's listeners
are centered mainly in the United States which is an advantage for Pandora. Those in the United
States typically have higher disposable income than those in other parts of the world which
allows Pandora's stateside customers the ability to afford a paid subscription.
(Social & Cultural Environment)
Focusing more on what users need and want will present Pandora with a great
opportunity to gain more listeners and ultimately get a head start over its competitors. In order to
focus the market more in the United States, Pandora must first learn about their customer.
Finding out information like when listeners have access to the Internet, how long listeners listen
to their music, what they do while listening, what times of the day they listen to music, and what
kind of music they listen to is perhaps the most important step they can take. Pandora will also
have to find out about potential competitors in the target markets such as local radio stations and
then determine their market share and strengths and weaknesses. Pandora will also have to focus
on touting the benefits of Internet radio over traditional radio and exploit the weaknesses of the
competition.
(Technological Environment)
Our focus for this project is to develop a thought out marketing plan that focuses more in
the Technological Environment for Pandora Radio in the United States. As of right now, Pandora

has a lot of major weaknesses such as consisting only 1 million songs, cost of steaming music,
and decreasing in users. Like many other Internet radio services, Pandora pays a higher royalty
fee than the traditional radio stations. However, assuming Pandora can overcome those obstacles
by negotiating with more record labels for the right to play their music as well as Pandoras
library of songs, our marking plan will focus on the different ways to market more in the United
States. Pandora could also use Facebook for geolocation services to gain insight into what
listeners in the area would be interested in and use that data to gather a consortium of ad
producers who traditionally only market to local radio stations. Overall, Pandora will effectively
get a jump on the market and increase their customer base, leading to increased market share and
higher future profits.
Strengths:
Pandora Radio now has a $5 billion dollar stock market value with high quality songs
andit has been around since 2000. The company is stronger than ever before, which provide the
company with numerous strengths that give it advantages over its competitors other than being
well-known which are being available on multiple devices and not just a certain product like its
competitors. Pandora is also accessible anywhere you have access to Internet which now many
places offer free Wi-Fi. It is also accessible from IOS, Android, BlackBerry, Windows Phone,
Nook, Kindle Fire, and different automotive manufacture's cars and dozens home devices.
Pandora Radio has less advertising than conventional radio, making it more appealing than the
radio yet it still had advertising just not as many. When listening to Pandora Radio one can
choose an artist but after a few songs from that specific artist a different artists music will play
making it random and not what the person wanted. Pandora's music is based on its music genome
project that has been specialized by music experts. These specialized songs not only have higher
quality than other companies, it also has characteristics which provide the best customized music

experiences. It also let users create and manage up to 100 stations based on artist, songs, and
genre. The personalized songs have a "Human Touch" which let users control the feeling over the
songs that they want to hear. For that reason, 95 percent of Pandora's songs are played every
month.
Weaknesses:
Pandora has numerous weaknesses such as, people want to listen to Pandora Radio but 40
hours is the limit in a months period. It consists of only a million songs, while its competitors
have so much more. Pandora also does not advertise itself and they does not seem like they treat
themselves as a radio station, they seem to focus more on calling its company an "Internet
service company." They also need to stop telling its users to stop listening to the advertisements
that they sell. One of Pandora's biggest weakness is that it cost $36.00 annually, having a higher
fee than most of its competitors. This fee is higher than Traditional Radio, iHeart Radio, and
iTunes Radio.
Opportunity:
Pandora can expedite their service by taking the opportunity to specifically focusing in
the United States and add more songs to their library. Pandora can perform marketing research to
get to know their target customers more in the United States. Once this process is completed,
they can negotiate with international record labels and add a wide variety of songs to their
library. The best opportunity for Pandora is to increase its users by improve its usage in merging
with Windows computers and social medias for easier access, having a free three months trial of
ads free for an annual purchase if registered through a Facebook account, and partnering up with
more brands such as, HTC smart phones, local Gyms, and restaurants. It would increase much
more users if people could log into Pandora with their Facebook account and listen to music
through Facebook. In the restaurants Pandora could offer a "Juice Box" which would personalize

the mood and sensation of different restaurants. Pandora also wants to be in every devices and
allowing users to skip tracks. Pandora currently has their software pre-installed in some car
entertainment systems, but they can take the opportunity to expand their partnership with other
car companies to bring Pandora to more vehicles. Like many other Internet radio services,
Pandora pays a higher royalty fee than the traditional radio stations. Pandora can balance out
these expenses by reducing the fee to subscribe for their services. This will result in a higher
customer base and they can keep loyal customers by adding a more personalized music genome.
Threats:
Pandora is now facing many threats. One competitor such as Spotify offers a six months
free trial if activated upon account registration with a Facebook account, which allow users to
login with easier access. Although Spotify has easier accessible through Facebook, it is
expensive ($4.99 a month, $9.99 for monthly for premium version) compared to Pandora when
they do not offer the best customized music experience. Another competitor isiHeart Radio,
which is free like Traditional Radio. iHeart Radio is a live radio, it has 15 million songs with half
a million artists, and it is connected with xBox360, GoogleTV, and mobile devices. The top
competitor for Pandora isApple; it has the most valuable brand name in the world. Recently,
Apple has just launched iTunes Radio this past month. The iTunes allow users to skip tracks, buy
songs with just a single click; it is available on iPhone, iPad, iPod Touch, Macs, Mac Pc, and the
Apple TV. Apple also has partnered up with major ads deals like PepsiCo, McDonalds, and
Procter & Gamble. The biggest advantage for Apple is its songs, which resulting a major
disadvantage for Pandoras licensing rules.

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SWOT ANALYSIS

Strengths:

Strong brand trademark since 2000

Accessible from multiple devices from
anywhere when Internet is available
Less ads than conventional radio
Have over 71million active listeners
Ability to create and manage up to 100
stations based on artist, song, genre
Best customize music experience.
"Human Touch" control the feeling
over the songs you want to hear.
95% of its songs are played monthly
$5 billion dollar stock market value
Song has been specialized by music
experts

Weaknesses:

Opportunities:

Creating new partnerships with car

companies to bring Pandora to vehicles
Add more songs
Partnering up with more brands such
as, HTC smart phones
Having "Juice Box" at restaurants.
Partnering up with Gyms, allowing
preferable songs for athletics
Offering a free three months trial
Merging with Windows computers
Allowing users to skip tracks
Connecting with social medias for
easier access; Facebook
Allowing to play Pandora through
Facebook
Market towards children
Market towards older people

Free only up to 40 hours monthly

Numerous ads
Higher cost compared to competitors
Random selection
Consist only 1million songs
Does not advertise itself
Less partnerships than competitors
They need to treat themselves as a radio
station, instead of just an Internet
service company
They need to stop telling its users to
stop listening to the ads that they are
selling.
Unavailable to purchase 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
xBox360
Google TV

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12

COMPETITORS

Pandora Radio:

Free or $3.99/month or $36 a year

Based on Music Genome Project
Song has been specialized by music
experts
Songs have musical characteristics
Best customized music experience
Ability to create and manage up to 100
stations based on artist, song, genre
"Human Touch" control the feeling
over the songs you want to hear.
Around since 2000
Access from IOS, Android, BlackBerry,
Windows Phone, Nook, Kindle Fire,
and different automotive manufacture's
cars and dozens home devices; 100+
devices overall.
95% of its songs are played every
month
Higher quality library
High stock market shares
Has 200 million registered users
$5 billion dollar stock market value

iTunes Radio:

Spotify Radio:

Free (only on web and desktop client)

or $4.99 on devices (unlimited; no ads)
$9.99 on devices (premium; unlocks
service full potential) monthly.
6 months free trial
Similar to iTunes Library
A big point is its Facebook integration.
Easy connection from Facebook
account to Spotify account
Ability to see friend's playlists
Ability to follow your friend's playlists.
Ability to listen to friend's music at the
same time.
Consider more expensive than many
other music services

Free or $24.99 a year

Most valuable brand name in the world.
Music discovery tool(automatic
playlist)
Supported with text and audio ads
Skip tracks
"Buy" Button
Available on iPhone, iPad, iPod Touch,
Macs, Mac Pc, Apple TV.
Simple to use
Partnered up with major ads deals;
PepsiCo, McDonalds, Procter &
Gamble.
27 million songs
42% of the 67 million people who
actively used iTunes monthly are
Pandora users.
75% share of worldwide digital music
market
$5.6 Billion in revenue
Recently just came out

iHeartRadio:

Free
All in one digital radio service
live radio stations
For people in NY areas
Best when away from traditional radio
Thumbs up or down each and every
song that's played.
Real-time feedback.
Can create personalized custom stations
just like Pandora.
15 million songs
Half a million artists
Connected with Xbox360, Google TV,
and mobile devices.

13

14

Users & Market Share

Pandora's annually listeners from September 2012 through October 2013:

Pandora's annually listeners (hours) from September 2012 through October 2013:

15

Pandora's Market Share from December 2012 through November 2013:

Marketing Strategy (STP):

Segmentation:
Pandora has been a rising company since 2000 when it was first launched but in order to
increase users we have looked at all segments to find which one would benefit our company the
best. We have split up our segments using the demographics segments through ages.

Age Group

Estimated

Ages 13 to
17:

22%

Price
Sensitivity
High

Ages 18 to
34:

45%

Ages 35 to
49:

Ages 50 &
up:

Need & Wants

Usage

Simple,
Entertaining

Smart Phones,
Tablets

Best way to
reach users
Social Media,
TV ads

Moderate

Wide range
music,
Accessible

Smart Phones,
Tablets,
Computers,
Cars

Social Media,
Radio stations,
TV ads,
Billboards

20%

Low

Wide range
music, Simple

Smart Phones,
Cars,
Computers

Social Media,
Radio stations,
TV ads,
Billboards

13%

High

Accessible,
Specific
selection,

Computers

TV ads,
Billboards,
Print ads

16

Simple

Using the demographic segmentation of ages will be easiest to determine what Pandora
Radio needs to do in order to increase users. We will look at who listens to Pandora Radio and
what they want to see with our services as well as how they use it. We can make changes that
benefit each group to increase the amount of people who listen. We have chosen age groups that
have similar wants in their segment but are different from the other segments and are all large
enough to make profits. The information we have can help make our services more desirable to
the consumer.
We estimate those aged 13-17 represent 22% of the listening population, and are highly
sensitive to prices because most do not have a steady income. They want Pandora Radio to be
simple to use and entertaining and most listen using smart phones and tablets and are easily
reached through social media. Ages 18-34 are estimated at 45% of the listening population and
have a moderate sensitivity to prices. This group wants a wide range of music and for Pandora
Radio to be accessible through multiple devices. This group uses Pandora Radio on smart
phones, tablets, computers and cars and is most easily reached through social media, billboards,
TV ads and radio stations. Ages 35-49 take up 20% of the listening population and have low
price sensitivity. They want Pandora Radio to have a wide range of music to choose from and for
it to be simple to use. This group uses Pandora Radio on smart phones, in the car and on
computers and is easily reached through social media, radio stations, TV ads and billboards. The
last age group is 50 and up which take up 13% of the listening population and are highly
sensitive to prices. We believe this group will use Pandora Radio most on computers and want it
to be simple to use, specific selection of music and easily accessible. They are reached easiest
through TV ads, billboards and print ads.

17

Targeting:
After careful evaluation, our group has chosen to target the age group 18-34. This age
group offers Pandora the highest potential users in the short and long term. Forty five percent of
Pandoras listening population consists of people between the ages of 18-34. Due to this being
the largest segment, Pandora must focus on this age group in order to prosper in the Internet
Radio industry. If we choose another segment evaluated, Pandora may risk losing a large portion
of their users to their competitors.
We are going to use the Single Target Market Approach to increase Pandoras user base.
The age group 18-34, is moderately sensitive to prices and desires a wide range of music
selection through multiple devices such as smart phones, tablets, computers, and cars. This age
group can be most easily reached through social media, billboards, TV ads, and radio stations.
The marketing strategy will consist of partnerships with various companies such as Windows
computers, Android based smart phones, social media, local gyms and restaurants. With these
partnerships, Pandora will be advertised directly to this age group, which will help to increase
the amount of its listeners.
Positioning:
Pandora has several competitors in the Internet Radio industry, such as iTunes Radio,
Spotify and iHeart Radio. However, Pandora does it better than anyone else. The most recent
entrants have all been large, well-funded companies that have agendas outside an incredible
music experience. They have other reasons such as selling cell phones or downloads. What
Pandora does is to offer the best customize music experience and nothing more. It's emblematic
of the difference.

18

Pandora can differentiate themselves from competitors through positioning themselves as

the most interactive Internet Radio for people between the ages of 18-34. In order to uphold this
image, new innovations must be derived. Partnering with various companies in different
industries will allow Pandora to be a dominant interactive Internet Radio. Offering Pandora
instant access on cars, Android based smart phones, Windows computers, and local gyms and
restaurants reinforce this image.

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.

Pandora is accessible from any device such as mobile devices, computers, tablets and
cars. Spotify, iHeart Radio, and iTunes are only accessible through a limited number of devices,
however. Pandora offers free internet radio services and a strong brand trademark from any
device unlike its competitors. It is accessible anywhere with internet. Users are able to like or
dislike songs, which provides a good customized experience. Pandora is most popular with 1834 year olds. On the other hand, Spotify has very low awareness and most Apple users are more
familiar with Pandora. iTunes does not allow monthly payments unlike Pandora. Also, in order to
use iTunes, you must have an Apple product such as, iPhone, iPad, iPod Touch, Mac, Mac PC, or
Apple TV.
Marketing Plan (4P'S)
Product:

19

Pandora was created in 2000 and ever since then has increased its customer base year
after year. Currently Pandora is the largest interest radio station on the market. Pandora allows
customers to create up to 100 unique stations that satisfy their taste in music. Pandora has many
advantages associated with it. Pandora can be easily accessed from almost all mobile devices,
tablets, car stereos, home computers and much more. Pandora needs to take these advantages and
broaden them. Doing this is eventually making Pandora a household name in the online radio
industry.
We have decided to launch Pandora onto Facebook, Twitter and in even more car models.
Doing this will not only promote Pandora as an online radio service but hopefully draw more
customers in to purchasing monthly and annual memberships. Pandora has a wide range of age
groups listening to their radio online. By making it easy to access through your car or when
youre browsing on social media is going to increase Pandoras customer base which will
eventually increase their profits from annual memberships and advertisements.
Price:
Even though Pandora is a free service for any customer that has access to the hundreds of
different devices Pandora is currently on, Pandora will still need to offer competitive pricing to
stay ahead of its opponents and to make a higher profit. With our new plan of marketing to help
Pandora become more accessible and easy to use, we will still offer the free service but by
having Pandora accessible through Facebook and other social media sites with hopefully lure
paying customers in.
Another way that Pandora can increase its consumer base is by offering promotional
discounts to customers. One of the ways Pandora could do this is by allowing customers to sign

20

up with Pandora through Facebook and then allowing the customer to get 3 free trail months.
That way after the free trial period is over; the customer will start paying with the monthly
service, helping Pandora increase its profits.

Promotion:
Pandora has done very little when it comes to promoting their services. Although their
growth has changed drastically since the company opened up in 2000, Pandora needs to start
looking into the future with all these new competitors opening in the market. New target areas
should include social media sites such as Facebook, Twitter, and Instagram, along with a variety
of car makes and models.
Promoting Pandora on social media sites will attract a broad range of consumers and also
open up a lot of room for Pandora to tap into the 18-34 year old age group. Many consumers in
the age group of 18 to 34 love listening to music and are almost always on social media sites.
What a great way to have listeners listen to Pandora while browsing Facebook or Twitter, not to
mention its a great way to get Pandoras name out there on the web.
Installing Pandora in various makes and models of vehicles will open up a lot of windows
of opportunity for Pandora to gain monthly and annual memberships. By having Pandora in
vehicles they could offer the first 6 months of service free with the purchase of an annual
subscription to Pandora Radio. Pandora is cheaper than car radio services like Sirius and XM
which have memberships that get up into the $200 to $300 price range, so this could be a great

21

opportunity for Pandora in the future. If Pandora were to install their radio services into cars, that
would put them way ahead of iHeartRadio and Spotify.
Place:
Pandora is currently only based in three countries, the United States, Australia, and New
Zealand. Pandoras distribution channel is direct because there is no middle man between what
Pandora offers and the customer. Pandora does not go through a retailer, broker, or agent making
it a direct distribution to the customer. Customers using Pandora has very easy access to the
music database. Currently Pandora is available on all mobile devices, computers, and is installed
in over 100 different car models. Pandora is also available on a variety of appliances, televisions,
Blu-ray players, home theatres, the kindle fire, nook, iPad, and blackberry devices.
By installing Pandora on even more devices and car models will drastically increase
Pandoras customer base. Pandora needs and should be on every single device on the market and
in every car that has four wheels. Also, integrating Pandora with Facebook and Twitter is going
to help draw more attention to Pandora which will then cause more consumers to start using
Pandora on an everyday basis. These distribution tactics will lead to a very successful platform
for Pandora to expand to even more countries in the near future.
Short and Long Term Projections:
With the marketing strategy we have selected, Pandora will incur a lot of expenses in the
short term. Qualitative and quantitative marketing research will need to be conducted in order to
execute an effective strategic plan. Partnering with different companies in various industries is
timely and costly, but is required to propose various profitable strategies. It will take a couple of
years for Pandoras new services to fully develop across our targeted segment.

22

Over the long term, we hope that our marketing strategy will increase Pandora listeners
and subscribers. In turn, our long term projections show that revenues will surpass expenses,
turning Pandora even more profitable. Pandora will continue to be the dominant internet radio
across the U.S. In the case that one area of our strategic plan endures a loss, we are confident
Pandora will not suffer by a great amount. This is due to the diversified strategies that include
partnering with different restaurants, local gyms, Windows computers, and Android based smart
phones.
Conclusion:
Pandora Radio is the leading Internet radio service because of an innovative music
selection algorithm and is poised to position itself as the solid industry leader. Pandora will target
the largest user base of listeners and will implement a few changes such as; giving discounts for
ad free listening, making Pandora accessible on a wide range of devices, making it easier to use
and will in turn increase advertising revenue and future profits. Implementing these changes will
solidify Pandora as the leading internet Radio provider thanks to ease of use, musical selection,
and accessibility.

References:
Communication and Design Research.(n.d.). Mimi Weber. Retrieved November 4, 2013,
from http://mimiweber.net/Strategy-Pandora

23

Renauer, C. (n.d.). Pandora. Blog Net Work. Retrieved November 2, 2013, from
http://beta.fool.com/crenauer/2012/12/12/pandora-strengths-weaknesses-opportunities-andthr/18421/

Pressman, A. (n.d.). Pandora Fans Flocking to Apple's iTunes Radio. Yahoo Finance.
Retrieved November 16, 2013, from http://finance.yahoo.com/blogs/daily-ticker/pandora-fansflocking-apple-itunes-radio-135503562.html

Is Pandora the Greatest Media of All Time? Q&A with RicMiliti Part 2. (n.d.).Mark
Ramsey Media LLC. Retrieved November 16, 2013, from
http://www.markramseymedia.com/2013/05/is-pandora-the-greatest-media-of-all-time-qa-withric-militi-part-2/

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