It is estimated that the university student community spends over $75 million with local businesses each year. Approximately 50% of these sales are for entertainment including music and movies. The university's commercial/retail area borders the east side of the campus and it is the main entrance onto campus. Each day, thousands of students shop and eat on Taylor Street before, after, and between classes.
Currently, if a student wanted to purchase a used CD, he/she would have to take a ten minute drive to reach the only used CD store in town. Similarly, he/she would also have to drive to reach the closest video rental store to the campus community.
Mojo Music offers the student the ability to buy a CD or rent a DVD during the day while on campus.
Mojo Music will focus on three significant customer groups:
The advancement of CD recording equipment, Internet technology, and new recording formats like MP3, has turned young adults into a new type of music and movie consumer. This trend has already depressed CD sales nationwide and many CD stores have gone out of business in last five years.
To be successful, a store must respond to the market opportunity the target consumer is providing. Though the game has changed, there is still tremendous opportunity if a CD store can read the market needs and trends correctly.
The student population that Mojo Music is targeting is very comfortable with the newest technology and has easy access to CD/DVD recording equipment. This creates a new expectation in the consumer's mind concerning what is an affordable price for music. Most college-aged adults have reported in numerous industry polls that the price of new CDs should be lower. This search for a lower price led to the explosion of MP3 on the Internet. Consequently, CD recording media has increased in sales.
Quality used CDs fill the niche that this concern creates by offering a lower price for popular music.
Another area where the college-age consumers is leading the market is in the use of DVDs. At most video rental shops, DVDs are small subsection of available rentals. Currently, these shops primarily serve consumers who prefer video cassettes. Though this trend is changing, DVD owners find the selection limited.