Marketing plan - Spotify. Overall it can be seen in Spotifys strategic position and organisational strategy that the company has clear mission, vision, goals and values however it appears that Spotify has a lack of communication with its target a

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This short term (12 month) Marketing Plan  was developed  to address the  significant decrease in the level of customer demand for Spotify Premium Accounts in the UK. Firstly the strategic position views the strategic position of Spotify and the situational analysis  looks at how effectively the company is  performing . Secondly marketing objectives and a marketing strategy are developed to resolve the steep decline in sales of the Spotify Premium accounts in the UK. Finally the plan addresses how to effectively implement and control the tasks ‘pointed out’ in the marketing strategy.



1.1        Background and context of current position                                        1

            1.2 Identification of the key issue/basis for plan                                         1


        2.1 Organisational vision, mission and strategic intent                                2

2.2 Organisational corporate objectives                                                3

                2.3  Summary of overall strategic position and organisational strategy                4


  1. External Audit

                      3.1.1 Customer analysis                                                        4

3.1.2 Industry, competitor and intermediary analysis                        4

3.1.3 Market trends and future projections                                        4

  1. Internal Audit

                3.2.1         Marketing organisational structure and systems                        5

                      3.2.2         Marketing related resources, competencies and capabilities                5

                3.2.3         Brands, product ranges, lines and items                                5

  1. SWOT

3.3.1        Strengths analysis                                                        6

3.3.2   Weaknesses analysis                                                        6

3.3.3   Opportunities analysis                                                 6

3.3.4   Threats analysis                                                6

3.3.5   Swot profile and imperatives                                                7 


        4.1 Strategic marketing objectives                                                        7

        4.2 Financial based objectives                                                        7

  1. Marketing strategy

        5.1 Market segmentation analysis                                                        8

        5.2 Basis of competitive advantage                                                        9

        5.3 Target market(s) profile(s)                                                        10

        5.4  Alternative target market(s) strategy specification(s)                        10

        5.5 Target market(s) strategy selection                                                11


        5.6 Marketing programme positioning and tactical /operational objectives

                5.6.1 Product                                                                         12

                5.6.2 Price                                                                           12                5.6.3 Promotion                                                                12

                5.6.4Place/channel distribution                                                13

                5.6.5 Physical evidence                                                        13

                5.6.6 People                                                                        13

                5.6.7 Process                                                                        13

  1. Implementation and control

        6.1 Timing, responsibilities and budgets                                                14

  1. Monitoring and control                                                                16


        7.1 Detailed Marketing Audit: External and Internal                                 17

        7.2 Calculation of budget figures for year 1: Implementation phase data        28

        7.3 Spotify Symbian phone range                                                        30

        7.4 Spotify on Nokia Express and Android                                        31

        7.5 Spotify on Iphone                                                                32

        7.6 Spotify Product Price range differences                                        33

        7.7 Spotify Player                                                                        35



  1. Background and context of current position         

Spotify was launched in October 2008 in Sweden as a music streaming service. It offers         a wide variety of music, working in conjunction with working with a wide variety of music labels. Presently it only operates in parts of Europe, however there is the potential for expansion as outlined in this Marketing Plan. Spotify is available on Linux, Mac         Os X, Microsoft Windows and mobile devices of iOS, Android, Symbian Windows or Palm’s HP webOS software.


Spotify attracts over 750,000 paying subscribers across its market, making it the biggest retailer in Norway and Sweden and the number two digital service in Europe after Itunes (IFPI 2011). However due to its lack of marketing, Spotify suffers from a lack of communication and brand awareness to its potential target market and its current consumers.



             1.2  Identification of the key issue/basis for plan

        A Spotify Premium Account is where the customer pays £10 a month for unlimited         streaming of music with no advertisement (see Appendix 7.6). There has recently been         a significant decrease in the level of customer demand for Spotify Premium Accounts         due several reasons:  lack of brand awareness, increased music piracy, and consumers         becoming more selective.

Therefore a short term (12 month) Marketing Plan has been developed that aims         to address the significant decline in sales, specifically in the UK geographical region.

Diagram 1: Ansoff (1965) product market growth matrix

The diagram above represents the Ansoff Matrix: Generic Strategies for growth         which         is a model for product/market growth and expansion.  The green ‘yes’ beside         Marketing Penetration highlights the chosen route which this Marketing Plan is taking         to overcome Spotify’s significant decline in sales. Market Penetration is commonly         used to drive sales of the existing products in the current markets.


        2.1 Organisational vision, mission and strategic intent

Spotify’s mission statement is: “We want to connect millions of people with their favourite songs and create a service that people love to use. We believe music should be easily accessible and that listening to music will make people live richer lives. We want to create a win -win situation for people who love listening to music and people who love creating music” (see appendix

The company appears to have no vision statement however the mission statement is very visual itself.

The company strategically differentiates from its competitors (see appendix by meeting the needs of the majority of its consumers who want to listen to music as cheaply as possible and for those who want to listen to and stream music for free, revenue is created from advertisements played between songs.

2.2 Organisational corporate objectives

Spotify appears to have no freely publicly accessible corporate objectives, however it is assumed  that for a company to run efficiently that it has corporate objectives which are accessible to employees.        

Their goal and aims appears to be:

  • To help people listen to whatever music they want, wherever they want (Spotify 2011).
  • The aim to be one of the biggest music subscription services in the world (IFPI 2011).
  • To make Spotify a "total music management platform". (eConsultancy 2010).
  • ‘To migrate illegal file – sharers to its service by shifting the 16-25 year old music fans to a legal model’.
  • Daniel Ek, CEO of Spotify states that there goal ‘In the UK is to increase the number of subscribers by a factor of 5’ (IPFI 2011).

These goals and aims are clearly reflected in Spotify’s mission statement, however to turn these goals and aims into objectives they should be made: Specific, Measurable, Aspirational, Realistic, and Time-bound (SMART). Therefore suggested objectives created from the above goals and aims would be:

  • To enable 100% of all Spotify users to listen to whatever music they want, wherever they want at all times.
  • To be the biggest music subscription service in the world within the next three years.
  • To help reduce illegal file sharing by 25% within the next year by providing a legal model for music fans.

  • To make Spotify a recognisable, and  unique multi-functional platform within the next two years.
  • Within the next three years, increase the number of subscribers by a factor of 5 in the UK.

            2.3  Summary of overall strategic position and organisational strategy        

Overall it can be seen in Spotify’s strategic position and organisational strategy that the company has clear mission, vision, goals and values however it appears that Spotify has a lack of communication with its target audience and the public due to a lack of publicising the companies objectives.


3.1 External Audit

                      3.1.1 Customer analysis

Spotify has two types of customers who both play a crucial role in the success of the performance of the company (see appendix In the current economic situation Spotify needs to ensure that it not only maintains both of its current customer bases but also entices new customer by continuous promotion (See appendix 1:Marketing Audit).

 3.1.2 Industry, competitor and intermediary analysis

It is clear that Spotify has lots of competitors however there is no direct competitor that poses a specific threat to Spotify, as they all have differentiated strategies. However it is apparent that ITunes has the best brand recognition from all the competitors (see appendix

3.1.3 Market trends and future projections

All the marketing trends and future projections that can have an effect on the sustainability of Spotify’s performance can be viewed in the Macro environment (see appendix 7.1.1). Each one is as important as the other, and the main trend that is threatening not only to Spotify’s success but also other digital music services is music piracy(see appendix 7.1.2. 2). However it is reflected in Spotify’s objectives that it looks towards a positive means to move people on to a legal downloading model with people still being provided with ‘free’ music.

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         3.2 Internal Audit

                3.2.1         Marketing organisational structure and systems                        

Spotify appears to have a clear and precise organisational structure, and all existing employees and new employees are enthusiastic and have great belief in Spotify’s values (see appendix

                      3.2.2         Marketing related resources, competencies and capabilities

                        It is clear that Spotify is planning to be available in geographical areas                         that it         is not at the moment such as the USA and Japan (see appendix                This is an outstanding opportunity         for brand development                         and  to achieve the  corporate objective of becoming ...

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