ASSIGNMENT ON INTERNATIONAL BUSINESS group assignment spotify

- The largest music streaming service providers with over 406 million monthly active users, including 180 million paying subscribers, as of December 2021.. However, in the Vietnamese mar

FPT UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

ASSIGNMENT

ON INTERNATIONAL BUSINESS Group Assignment: Spotify

Teacher : Hoàng Thị Hồng HạnhCourse Title : Marketing Principles

Group Members

NAME: STUDENT ID:Đào Minh Sơn HS176140Lưu Hà Duyên HS170017Lương Vân Anh HS170059Nguyễn Phong Lưu HE163190Nguyễn Hoàng Dương HS170100

Hà Nội, 03/2022

TABLE OF CONTENT

B Theoretical Basis

I Business’s environment analysis.

The marketing environment is made up of external actors and forces that have an impact

on marketing management's capacity to develop and sustain successful connections with

target customers Companies, like Kellogg, must constantly monitor and adapt to

changing conditions—or, in many cases, lead those changes

Marketers, more than any other group in the firm, must be aware of current

environmental trends

Those who are on the lookout for new opportunities are known as trackers Despite

the fact that every organization's manager should

Marketers have two distinct abilities They must be aware of their surroundings They userigorous approaches for gathering information and producing insights about the

marketing environment, such as marketing research and marketing intelligence They

also invest

More time spent with customers and competitors Marketers can change their strategy

to meet new market difficulties by carefully monitoring the environment

1 Micro environment

The company, suppliers, marketing intermediates, customer marketplaces, competitors,

and publics are all near to the firm and have an impact on its ability to service its

customers

2 Macro environment

Demographic, economic, environmental, technical, political, and cultural influences all

have an impact on the microenvironment

II Marketing Mix ( The 4Ps )

The four Ps of marketing are the key factors that are involved in the marketing of a good

or service They are the product, price, place, and promotion of a good or service

Often referred to as the marketing mix, the four Ps are constrained by internal and

external factors in the overall business environment, and they interact significantly with

one another

The 4 Ps are used by companies to identify some key factors for their business,

including what consumers want from them, how their product or service meets or fails to

meet those needs, how their product or service is perceived in the world, how they stand

out from their competitors, and how they interact with their customers

1 Product.

Product refers to a good or service that a company offers to customers Ideally, a

product should fulfill an existing consumer demand Or a product may be so compelling

that consumers believe they need to have it and it creates a new demand

2 Price.

Price is the cost consumers pay for a product Marketers must link the price to the

product's real and perceived value, but they also must consider supply costs,

seasonal discounts, and competitors' prices

3 Place.

When a company makes decisions regarding place, they are trying to determine where

they should sell a product and how to deliver the product to the market The goal of

business executives is always to get their products in front of the consumers that are

the most likely to buy them

4 Promotion.

Promotion includes advertising, public relations, and promotional strategy The goal of

promoting a product is to reveal to consumers why they need it and why they should

pay a certain price for it

III Marketing Objectives 1 Targeted Customers.

Target means identifying the target audience and market, identifying the group of

people who share the most common characteristics and interests in your product for the

purpose of serving the implementation of your marketing strategy and business strategy

company Simply put, target is the analysis of the audience that your business needs to

target

2 Strategic Objectives.

Strategic objectives are the big-picture goals for the company: they describe what the

company will do to try to fulfill its mission Strategic objectives are usually some sort of

performance goal—for example, to launch a new product, increase profitability, or grow

market share for the company’s product

IV Marketing Orientations.

This report is conducted because of the lack of profit from Spotify The purpose of this

report is to analyze Spotify’s current situation and identify actions that can be made in

order to make Spotify Profitable Spotify is the world leader in music streaming service

According to Reuters, Spotify has the market share of 44.77 billion dollars in 2021

However, due to the Covid-19 pandemic, it dropped to 26.54 billion dollars in 2022 Its

biggest strength are market share and its growth that has been sustainable since the

service was launched in 2008 The music streaming overall has been riding high for the

past few years and it should keep it that way even though its growth will not be as

impressive as it used to Spotify’s business model is quite the same as its competitors

The only main difference is the possibility to listen to music for free, with some

limitations, offered by Spotify This offer makes Spotify attractive for neophytes that

would like to try a streaming service before paying for it This slight difference is not

enough to give Spotify a significant competitive advantage though

A INTRODUCTION

- Spotify is a Swedish audio streaming and media services provider

- Founded on 23 April 2006 by Daniel Ek and Martin Lorentzon

- A freemium service, basic features are free with advertisements and limited control, whileadditional features, such as offline listening and commercial-free listening, are offered via paidsubscriptions

- Users can search for music based on artist, album, or genre, and can create, edit, and share playlists

- The service is available on most modern devices including Windows, macOS, and Linux computers, IOS and Android smartphones and tablets, AI-enabled smart speakers such as Amazon Echo andGoogle Home, and digital media players like Roku

- The largest music streaming service providers with over 406 million monthly active users, including 180 million paying subscribers, as of December 2021

- Spotify is currently available in 180+ countries as of October 2021

I Business’s environment analysis.

1 Macro Environment.

1.1 Political Environment.

Vietnam's politics is considered to be stable, and the State of Vietnam always advocates

the implementation of a foreign policy of independence, self-reliance, openness,

diversification and multilateralization of international relations , actively do international

integration

* Opportuinity: Vietnam with the trend of constantly expanding and developing, creating

opportunities for foreign enterprises to develop and invest in Vietnam

1.2 Legal Environment.

- Vietnam currently does not have any online music platforms that are fully licensed, especially

in the context of copyright being focused

- Musicians and singers also want a platform for them to collaborate and get paid to share their music with users

- Vietnam is currently a low-middle income but continues to grow.

- GDP in the first 6 months of 2021 increased by 5.64%, higher than the growth rate of

1.82% in the first 6 months

- In 2020 but lower than the growth rate of 7.05% and 6.77% of the same period in 2018 and 2019

=> So, Users will increase a lot and pay more to use online platforms

1.4 Technological Environment.

- On May 11, 2021 in Hanoi, Appota Group - a digital entertainment technology company officially released a market report: "Mobile applications 2021": Vietnamese people are tending to download and use more mobile applications after the pandemic Specifically, each person spends an average of 5.1 hours using mobile applications, an increase of 25% compared to 2019

- The percentage of users accessing social networks very early, specifically from level 1, level 2 and above

*Opportunity:

- Having the opportunity to approach a young, dynamic and skilled customer base in technology

- Developed technology and online payment platforms, helping customers make purchasing and payment decisions easier and more convenient

- Easier to develop technology-based marketing strategies

1.5 Cultural Environment.

- Vietnam has a young population structure, a group of people with a dynamic personality, easy

to receive and adapt to new trends Moreover, a group of young people spend a lot of time using electronic devices such as laptops, smartphones and televisions during the day, they are very easy to access to

applications and services on digital platforms

- Likes to consume new products, when encountering advertisements, curiosity will be

stimulated to learn information about products

* Opportunity:

Vietnam is a country free of beliefs and religions, so the distribution and promotion

of products do not face many difficulties

Budget accounting: Spotify's maintenance cost accounts for 70% of revenue, of

which 55% is to pay for the issue of buying music rights from artists and

entertainment companies, 10% for the development and maintenance of the platform

The remaining 15% is used for promotion activities

=> Spotify has abundant financial resources and is quite invested in Marketing activities

However, in the Vietnamese market, marketing strategies, especially promotion, should be

advertised more carefully so that Spotify can exploit this potential customer market

2 Information system.

- With more than 10 million users listening to music every day and 271 million users worldwide.

- Spotify holds a huge amount of personal information, Data about music preferences, favoritekeywords, song data listening, geolocation based on the device they use most when listening to music, andmore

=> Many artists have even collaborated and paid Spotify to have their songs brought to

users The same goes for brands that partner with Spotify to launch advertising

campaigns on this platform

2.2 Suppliers.

- 1 supply chain consisting of 3 parties: Artist/Entertainment - Spotify - Customer (music

- In order to bring its music streaming service to market, Spotify focuses on its existing

connections with social networking platforms (Facebook, Instagram, Twitter, LINE) , ) to run ads

- Through third-party providers, Appstore and Playstore, to provide services to customers

2.4 Competitors.

Apple Music, amazon music, youtube music, gg play music, pandora, SoundCloud,

Napster, tidal

II Company’s marketing mix.

1 Product.

In addition to providing consumers with copyrighted music products, Spotify has been

developing a plan to provide users with not only a pure music application but also a

place to listen to music Users can share playlists and their personal music tastes with

friends, family, and even strangers A platform that is both a music application and a

music social network, designed to not only address the needs of personal music listening

but also to provide a space for entertainment and sharing in order to build a cohesive,

high-quality music community

1.1 Features of products and services provided.

- Podcast service, which not only provides music, but also audio series, including music and stories, which users can share and post on the Spotify platform

- Spotify is also a Music Social Network, users can create playlists of their favourite music and share with friends via social networks Facebook and LINE At the same time, they can also share their favourite music files to the Instagram or Facebook story feature

- Daily Mix ( bring together your recent listens with other tracks to keep you engaged )

- Release Radar ( is a playlist of new releases that updates every Friday Listeners get new musicfrom artists they follow and artists they listen to )

- Discovery Weekly (a playlist developed based on user listening behaviour)

1.2 Spotify's Visual Platform.

Spotify's intuitive platform design is minimalist, eye -catching, convenient and easy to

use for users How to arrange playlists is easy to see and find With many features and

eye-catching interface design, Spotify will stimulate users to discover more about this

application

1.3 Bundled Features.

Content filtering function, music can be integrated to play on a variety of

devices, including phones, laptops, tablets, speakers, TVs and even cars

2 Price.

Currently, in Vietnam, Spotify has only launched two of its paid product packages:

Mini and Individual, aimed at highly individual users

- Premium Individual package: 59,000 VND/month, compared to $9.99 in foreign markets, this

is a much cheaper price, with the aim of reaching more users because Spotify has only appeared in Vietnam.not long ago

- Premium Mini package : 2,300 VND/day, 8,800 VND/week, a very cheap price.

3 Place.

Because it is a technology product, an application on the operating systems of phones

and computers, Spotify uses the same distribution channels as other technology products:

Appstore on IOS operating system, CH Play on Android operating system and Microsoft

store on Windows operating system

Since businesses already charge users to use the software, downloading the app will

be completely free

4 Promotion.

4.1 Advertising.

Currently, Spotify's promotion activities are mainly aimed at running ads, Spotify

running ads on the most popular social networking platforms in Vietnam, Facebook

and Instagram Posts running ads aim to highlight the features Spotify's feature, or to

announce a new product package,

4.2 Sales promotion activities.

To increase sales, Spotify has offered a free one-month premium trial for new registered

accounts When Spotify is new to the Vietnamese market, this trial package program

will help users better understand the product, discover its superior features, and enjoy a

personalized music listening experience for a month After that, when returning to the

normal free account, the functions are limited such as:

- Cannot get notifications, can't quickly update the latest songs

- Forced to use random music mode

- Forced to watch ads, music listening experience is interrupted, annoying

- Can only change songs 6 times per hour

=> This will help Spotify encourage and motivate users to switch to Premium

packages for unique, personalized music listening experiences

4.3 Public Relations.

- PR activities of businesses in Vietnam mostly focus on activities on their Facebook Fanpage forthe Vietnamese market with content aimed at introducing new features, product packages or posts promotingnew songs by Vietnamese artists

- At the same time, Spotify also runs community-oriented programs For example, on World Mental Health Day, Spotify created a playlist specifically for this event, showing support for mental health issues in the community,

- Community activities: Spotify donated $10 million to racial equity organizations, $20 million

to global organizations supporting creators financially successful by COVID

III Marketing Strategic objectives and orientations.

1 1 Targeted Customers * Demographic:

- Age 18-34 (Generation Z and Millennials)

- Geographical location: Living in big cities, so they have a high standard of living, are more aware of music copyright issues

- Income: Customers in this age group are students and working people, most of them have their own incomes and separate bank accounts