HeavyMetal Praise Records

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Music Recording Distribution Business Plan

Strategy and Implementation Summary

Heavy Metal Praise Records will use their competitive advantages in a new musical area of Christian music to steadily gain market share. The first advantage is based on Johnny's extensive inside knowledge of the recording industry. The second advantage is an already established network of contacts within the industry.

5.1 Competitive Edge

Presently, there are few Christian Heavy Metal bands with CDs in the marketplace. The only real competition is the acceptance of the skateboard culture. Can a Heavy Metal group with a christian message gain a fan base? The success of a Heavy Metal band is dependent on its fan base and its live performances. If the energy is there, the fan base will grow and CD sales will follow.

Heavy Metal Praise Records understands that their bands must have the energy before the message will be heard.

5.2 Marketing Strategy

Heavy Metal Praise Records has established the following Promotion and Distribution strategies.

5.2.1 Promotion Strategy

  • Early Teens: Heavy Metal Praise recording artists will be marketed at the weekly sponsored skateboarding events by the Skate Ministry. A band will play at each event during the summer months. In addition, Heavy Metal Praise recording artists will perform as part of the concert series sponsored by Rally Skateboards. At these events, free CD samplers will be given out of Heavy Metal Praise recording artists.
  • Late Teens: Heavy Metal Praise recording artists will be booked to play extensively during the summer of 2002. A Heavy Metal Praise band will be part of the "Split Cross" tour in the region. Split Cross is a Christian music website and a strategic partner of Heavy Metal Praise recording. At these events, free CD samplers will be given out of Heavy Metal Praise recording artists.

5.2.2 Distribution Strategy

Heavy Metal Praise Records have made strategic alliances with both the Coalition of Independent Music Stores (CIMS) and Straight Arrow, the number one Christian Music Website in the country. Heavy Metal Praise Records CDs will be distributed through CIMS to stores regionally and with greater visibility of the bands, the distribution will expand nationally. Straight Arrow will sell the CDs online as part of their campaign to widen the range of artists they offer. Last year, Straight Arrow sales topped $50 million.

5.3 Strategic Alliances

The strategic alliance with the Coalition of Independent Music Stores (CIMS) and Straight Arrow holds great potential.

  • Straight Arrow is a distribution system for Christian artists who want to buck the system and do it without major label backing. The amazing thing is: it truly works. Some of the most sincere, yet cutting edge artists existing today are available to purchase at the Straight Arrow website. They will focus on building sales in the field of Heavy Metal music starting with Heavy Metal Praise artists.
  • Coalition of Independent Music Stores represents a distribution system of 10,000 stores nationally. CIMS creates its own sales programs that focus on independent artists. They have committed to packaging Heavy Metal Praise Recording artists to its regional members. With the bands' success, they plan to distribute the CDs nationally.

5.4 Sales Strategy

Our combined sales strategy of distributing our product online and in stores will result in the following first year sales goals:

  • 5,000 CDs sold online.
  • 10,000 CDs sold in stores.

The sales totals represent only six months of sales activity. The first six months will be focused on signing the bands and producing the recording.

5.4.1 Sales Forecast

The following table and chart presents specific sales forecasts by month, over the first year of development. Years two and three are cumulative totals only.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Online $84,000 $160,000 $200,000
In Store $154,000 $380,000 $500,000
Total Sales $238,000 $540,000 $700,000
Direct Cost of Sales Year 1 Year 2 Year 3
Online $4,200 $8,000 $10,000
In Store $7,700 $19,000 $25,000
Subtotal Direct Cost of Sales $11,900 $27,000 $35,000

5.5 Milestones

Heavy Metal Praise Records will have several milestones:

  • Sign two Heavy Metal Christian bands.
  • Produce two new recordings during the first six months of operation.
  • Release recordings in six months.
Milestones
Milestone Start Date End Date Budget Manager Department
Signing of Bands 1/1/2001 3/1/2001 $10,000 JY Owner
Recording 3/31/2001 6/30/2001 $65,000 JY Owner
CD Release 6/30/2001 9/30/2001 $40,000 JY Owner
Totals $115,000