SIXTH LESSON
BUSINESS PLAN: HOW TO SAVE THE MUSIC INDUSTRY
Goodmorning everybody, I'm Gianmarco Ferreo, Virgin's Chief Executive Officer. Today I'd like to talk about our company's business plan. Our goal is to save the music industry using online music files.
I've divided my business plan in three parts: the first one deals with the product itself, the second one is a market analysis and the third describes our strategy and its implementation.
As concerns the product, we want to sell music files only on web stores. The main feauture is the price, only 10 cents. Every 100, 1000, 10000 songs downloaded, each customer will receive a prize (from headphones to mobile phones). Our company is very confident, because we'll make a strong advertising campaign against illegal "peer to peer" programmes, to make clear that with this policy (only 10 cents for one song) and further prizes, nobody will longer be justified.
This brings me to talk about the second part of the business plan, the market analyisis. In our market more than 500 million people are estimated to download illegally. They are located all over the world, mainly in the USA, in the UK, France, Germany and Italy. Even if we'll never defeat completely the problem we are sure that this new company policy will ensure profits. Today we have only 5 million online customers, but in only two years we are ready to have 90 million costumers, increasing online profits from 3 to 15 millions and global profits from 10 to 27.
As concerns the strategy and its implementation, cutting the 80% of the price will paradoxically give us new profits. We are going to implement the strategy on New Year's Eve. During these few months, the company is going to improve its online sales network, with a modern, stylish and an easier international website.
Thanks for your attention!
