Musicjuice.net Case Analysis 5092b

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On 07/01/2012

By Debasish Devkumar Padhy cP ag e



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It talks about the challenges of new internet ventures which provides funding for musicians to record albums by allowing listeners to preview the artists work and decide whether or not to invest. They had to go through tough times to generate any interest or even awareness amongst online musicians and fans. Their main key challenge was finding audience so they have to understand the needs and wants of audience. Therefore to be successful they must provide value to its costumer, so they must relieve pain or stress for the costumer in such a way that the costumer recognizes the relief and is willing to pay for it. c!"#

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Situation analysis

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Problem statement

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Options

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Criteria

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Evaluation of options

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Recommendation

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Action plan

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Exhibit

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MusicJuice.net provides funding for independent musicians to record albums by allowing listeners to preview the artists work and decide whether to invest or not to . In which the new artists will themselves and will post their songs. fans and other can listen to their songs and will invest a minimum of $10 which will help the musicians to collect amount for recording their songs. 3 The funds raised from the fans will cover the cost of making the CD, Marketing and distribution. the profit made from the sales were split in 3 ways 1/3rd to the musician, 1/3rd to the website company and 1/3rd to the investor. Total requirement for recording CD is $50000 so to fund one musician 5000 investors required as minimum they had to contribute is $10. The CD͛s were to be sold at the shows

organized by the musicians and online portal like Amazon.com, iTunes and Musicjuice.net. Sellaband has successfully funded the recording of CDs for 18 musicians and has over 2000 musicians signed up. Slicethepie has funded 13 CDs, but its number of musicians is unknown. MusicJuice, at the time of the case, had 180 musicians signed up and was nowhere close to funding the production of a CD. So Slicethepie have been more successful than Musicjuice. , % 3 - Tour creation enabled musicians to raise money not only to record CDs but also to pay the expenses to fund a tour. And the fans who will invest an extra $10 they would last until the CD or tour was completed and they can even chat with the musicians and will even receive signed version of the CD that is they will become the Member Founders were not good at finalizing the contract with website developers which ended up taking longer and costing more . Out of two founders one lacked knowledge on the coding ÕP ag e

aspects and other lacked the business skills which took lot of time to understand how the business model would work. The two founders became frustrated and impatient with one another and their relationship deteriorated. .

In spite of differentiating their business from others ,they ultimately implemented it poorly which was not widely adopted and in turn is failed to reach its required targets.

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% r‘ They didn't understand the needs and wants of audience properly due to which it didn't motivate the audience to participate. r‘ They were not having much uniqueness in their project which must provide some unique value that s cannot find elsewhere. r‘ They couldn't attract a large base and in turn failed to reach their targets. r‘ They started identifying revenue models for their service and spending money on expensive marketing campaigns and building new features for the website before determining if there was a market for their service . /¦# ) r‘ Targeting record companies by creating value for record companies r‘ Organizing concerts and other events for musicians. r‘ Organizing competitions among musicians online. r‘ Implementing 24*7 radio, online streaming videos and inserting short ments in every few songs. V/# 0 The delay in the development of the website allowed an unforeseen competitor to enter the market. So it is needed to build brand awareness as In this business the main asset is their website and the business model can be easily copied. ë¦#

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$ % r‘ Musicians sign up will increase. r‘ Record companies will take more interest to be first one to finalize the contract with artists. r‘ It is difficult to impress the record companies with new artists.

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r‘ Crowd will increase which may turn into investors. r‘ Brand awareness and exposure to artists. r‘ Initial expenditure will increase. r‘ Can't predict the footfall.

) 1 r‘ Fans can understand on whom to invest in order to gain more profit. r‘ ·elp record companies to identify new talent. r‘ More interaction based website. r‘ Musicians will get on their performance r‘ of the audience may not be the right criteria to judge the artists all the time.

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' ¦ë" 2 0 r‘ Crowd will increase as well as investors. r‘ Increased revenue and increase visibility. r‘ Initial investment will increase.

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Introduce new artists to the people and increase awareness of their brand. This will help people understand their business and benefits to investors who are investing on musicians . Word count - 36

r‘ They have to target the places where footfall will be more. r‘ Should charge a minimal entry fee in order to overcome the expenses. r‘ They have to invite influential people from record industries. VÕ#

% Exhibit 1 and 2

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