marketing environment, PEST, emerging competition, changing consumer behavior
Review the activity below or download the PDF student worksheet
Student Worksheet: Adapting to a New Environment
Student Discussion Activity
For this activity, you will play the role of a marketing consultant advising a small chain of traditional music retail stores on how they can best adapt to the changing lifestyle and technological macro-environment.
Below you are presented with some introductory information regarding the key trends in this sector. What advice would you have for this firm? They are most concerned about their long-term viability in the new environment. In particular, they are concerned with the following trends:
- Many consumers now use a smart phone (or other devices that don’t require a physical CD) for the storage and playback of their music collection
- Spotify (and similar apps) represent a fairly recent form of competition and have gained a significant share of the market
- YouTube videos have also emerged as a substitute competitor
- There are still significant issues with consumers sharing music and piracy issues
- Internet usage is very high among the under 50 years market, which is their key target market
- However, there has been a significant increase in music interest, due to a number of very popular reality/talent music shows
Student Discussion Questions
- Which of the identified trends do you consider to be the most significant for the retailing chain?
- Are there any other trends/issues that should also be highlighted?
- Given all these issues, how would you advise this firm (as their marketing consultant) to adapt to this changing environment?
- Do you foresee a long-term future for this firm, or do you predict that they will need to significantly change their business model?