You are an e-commerce consultant who has been approached by an independent local music retailer who sells music on behalf of local indie bands. They are a very small business and are known locally as “Top Tunes”. They are a small organisation whose primary business goals revolve around identifying good quality up and coming music artists. They currently have three bands for which they sell music exclusively.
They have requested that you help them to modernise their online Business to make use of the e-commerce environment in a more effective and efficient manner. Top Tunes currently specialises in the following:
Your Job is to help the company move its primary core business into the online environment. Therefore your number one objective is to help the organisation in developing a satisfactory pricing strategy, revenue model and business model. You will have to spend some time giving consideration to the best music selling platforms which will supplement your website for sales of the above products. You will need to think about how the services can be packaged for efficiency and ease of use.
The current pricing strategy is based on a flat rate 20% fee on all music sold; this fee covers music promotion, music sales and cover design. There is no upfront charge; the 20% is only applied after a product has been sold, hence no upfront costs for the bands. Music editing as a service is also provided but this is an additional 10% surcharge on each item sold. Your Vinyl sales are sold at £12.99 per item. Top tunes is not sure if these pricing mechanisms are valid and needs your guidance in creating a sustainable pricing strategy for the online environment. You will need to factor this into your report.
Your job therefore is to develop an online business case of 3,000 words for the Top Tunes with a website output. Your assignment should have covered the following areas:
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