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Market environment of HMV and business overview

HMV was initially accepted in July, 1921 through its cutting edge record store in London's Oxford Streets, and famous general for its symbolic 'dog-and-gramophone' brand, displaying 'Nipper', ninety years on leisure brand. HMV allows its customers to get even nearer to the music and musicians and artists, games and movies, they love whether in their homes or at the job.

HMV offers a specialist and miscellaneous range of services, products and activities that give unrivalled access to today's trendy culture through lots of harmonizing channels:

280 stores round the Ireland and UK, delivering a complete selection of music, film, video games and also literature across all genres and platforms, a broad and rising selection of technology devices and accessories; as well as musician merchandising and t-shirts, licensed products and fashion clothing varies stimulated by music and film housed within HMV's newly-launched 'Studio' sub brand.

Free home delivery on online store at www. hmv. com.

Strategic brand partnerships, including Orange Mobile in-store concessions in over 25 stores.

Gamer bottom part pay-to-play online video games in over 50 HMV stores in store.

Entertainment and live music from first to keep going the sale of event tickets via online and waiting for you.

There is HMV Curzon theatre cooperation with Curzon Artificial Eyes in Wimbledon, London to be spin out to up to additional 20 HMV Group sites in the next five years.

There can be an access to items and music artists from first to last record film studio relationships and artist management, this also contains MAMA-Owned Super Eyesight management.

HMV is part of HMV Group plc, which also functions the entertainment chain and Fop music in the united kingdom, HMV stores in Canada, Hong Kong and Singapore and Waterston's bookstores in the UK and Ireland.

Internal and exterior marketing environment:

The external environment is referred to as the macro-environment. This includes the wide-ranging environmental factors that may impact organisations at various levels. It is important to consider the potential impact of the exterior factors on the average person organisations (Johnson et al, 2006, P65).



Government policies may promote rivalry battle through telecom liberalization, digital commerce offers and legislations (Held et al. , 1999). There may be far above the bottom federal investment in countrywide ICT infrastructures (DTI, 2002). HMV can be faster, better and much more consistent through far more convenient internet access for countrywide users. Less expensive access to the internet and upsurge in internet surfers may brings about rapid enlargement into new market segments.


In UK High interest levels can decelerate the buyer spending. The credit squash and the cover slump has reduced consumer spending in america. Consumer spending is increasing in India and China because of sky-scraping monetary development in both countries. (THE CHANGING TIMES online, 2008)

Internet retailing has seen incredible growth between 2006 and 2011 with sales rising over 100%. This progress is fuelled by the amount of online households in the united kingdom, which has increased by 85% since 2006. (Euro monitors International from countrywide reports).

By 2011, 617 million homeowners from all over the world have an annual disposable income exceeding All of us$5, 000. 143 million of the will maintain Asia Pacific this will be second to European European countries with 185 million. (Euro monitors International from nationwide statistics). HMV may consider joining BRIC market. There can be more potential prospects for HMV.


There can be an upsurge in online interpersonal networking now days (E-Marketer online, 2008). Product category risk and financial risk decrease in online shopping (Sorce et al, 2005). Progress of internet from 2002 to 2007 is 244. 7%. 18. 9% of world society use the internet (Internet World Stats, 2007) Marketing must take advantage of this new cultural networking channel. There can be need to consider overcoming risks to increase users. This can results the possibility to increase market show.


There is an increase in broadcasting, information and telecommunications technology for access to the internet. Rapid development of high-speed network services (e. g. broadband) raises usability of media-rich Applications. There is an increased frequency useful and options (e. g. mobile devices, Tv set etc) for access to the internet by online customers. Media rich details are easily made available to online purchasers.


There can be an increasing awareness of global warming and pollution among the people. Pople are becoming more conscious about the healthy environment. To catch the attention of consumers there are changing business methods and environment to become more "green" i. e. with postage and product packaging.


There are no uniform regulations that happen to be governing electronic commerce covering all the countries e. g. HMV must act based on the environment of countrywide and international rules to endure as a global firm.

Summary of PESTEL:

Political, economic, cultural, technological progress shows an increasing and attractive market to be exploited by HMV. The BRIC markets have shown exceptional growth. The intense use of internet as a societal networking channel has produced new opportunities to be exploited. Furthermore, as environmental recognition increases globally (Stern et al, 2006) it's important that HMV's strategy should take environmentally welcoming activities. The global nature of HMV's activities also suggests that strategies developed should fulfil the various legal obligations globally.


The following are the rival of the HMV:


Woolworths group plc

Asda group limited

Virgin books limited

Borders limited


Play. com


Swot analysis


Two retail brand:

Market leading company music, Dvd and blu-ray and books:

Largest selection of stores on high street

Waterstone's is Uk's most significant bookseller on high street

Operations in seven countries

Connection in film industry

Prime store location

Good online and offline customer


Slow to respond to change

Little understanding of consumer fads and behaviour

Lacked path and leadership in the past and during recent market structure change

Excessive reliance on promotional charges to induce sales

Inadequate sales of digital music players

No current customer radar


Online cultural networking

Loyalty credit card scheme


Online digital downloads

Digital products


Mobile phone digital multimedia link


less control over against the law downloads

declining physical music purchases

online and digital media providers are taking the larger share of the market



Illegal downloads impacting on the purchase of both online digital and physical media

Smart targets:

The company needs to put front the required objectives and seeks for the merchandise or services they plan to launch on the market. Objectives are extremely important as they place the goals of the business specifically more than a certain period of time and helps in motivating the employees of the company in order to attain the set goals.

A simple acronym used to create objectives is called SMART goals.

S (specific):

Validating the results of the marketing audit and swot analysis, it is obviously known that the goals are given for increasing the expansion of HMV for profit maximization and achieving popularity for our brand one of the people. An array of products should be launched with better services and quality to draw in more customers and create a robust image as not simply being truly a music store but a business gratifying all the entertainment needs, which results in a complete new experience for the clients and eventually help achieve the aim of the business as well. And also helps recover the setbacks took place for the business in the past like the shutdown of 63 stores in December 2010 in the united kingdom.

M (measurable):

The set targets of the business if implemented accordingly, it is likely to achieve a growth in sales rate of up to 22% in the UK and also have a net profit percentage increased up to 6 to 8% by the finish of the financial calendar year 2012-2013, and become the top high street store in the current market. It is also expected to improve the quantity of stores by 2 to 3 3 per year which is a great step towards business expansion.

A (attainable):

The objectives advised are plainly done after a research on the company with an in depth marketing audit and SWOT evaluation to know the background information about the company. The results may be accomplished with a proper implementation of the given objectives.

R (reasonable):

It is vital to learn that the given objectives are realistic for the company to achieve. To reach the collection goals it is vital for the business to possess all the mandatory resources such as Man power, Technological resources, money and the mandatory raw materials. According to the data obtained in the study shows the business have the mandatory resource making the goals sensible. But nonetheless it is suggested to keep the technology current in order to achieve maximum efficiency.

T (time):

Time is a very important factor as it pertains to obtaining the set goals by the business. The specified aims are being recommended in order to get increase in earnings without fail. Based on the statistical information available from the backdrop research on the business and the available resources, the goals should be achieved in a period of 2 years which is by the finish of the financial season 2012- 2013, with respect to the implementation of the programs and proper management of the resources.

Segmentation, targeting and positioning (STP):

Segmentation targeting and positioning (STP) is vital for every company and company in order to find out the problem where company or company is position. Some companies aren't very good in segmentation process therefore those companies could not divide the marketplace into different parts or fields and this makes customer dissatisfy, because customer need proper syndication, for example young decades should pop and fast songs, old people will like slow melodies. Every customer has different needs and different style, so by considering their different needs and taste the marketplace should be divided into small segments in order to full fill up customers need and satisfaction.

HMV is a valuable and big company in UK which has 280 stores. In 1921 it was produced, and now a days and nights it is prosperous only because it does indeed proper segmentation, targeted their customers confidently and located its product in a competitive market flawlessly. Its plan is to make clients and make more strong connection with existing customers. HMV has different sections, they are available TV comedies, Dvd and blu-ray, s Compact disk, s Blu-ray, music, films, seat tickets, mp3 etc. They have got all these things in various variety for example, these are keeping old and new all videos, remix, pop new and old music. They are selling Nintendo DSI to be able to obtain a children's fascination, definitely if they're getting children appeal, children's will buy more Nintendo DSI, s and even more profit they'll make. Which means this all is happening because they are getting everyone's fascination by providing them entertainment and they are providing entertainment by doing proper segmentation. One more important section HMV can make and called it as HMV online activities. In this particular section there will be a option of viewing new movies video games, listening new music and people can also down load them at very versatile and cheap rate. The grade of movies, games and music will be provided identical to it is on original CD, s and Disc, s.

As HMV is good in market segmentation, additionally it is participating in good role in targeting. Based on the segmentation hmv should aim for the individuals who are struggling to buy something or can't afford the prices. In the recent the sales of hmv semester as a consequence to customers is likely towards free online downloadable videos, music, and games websites for example torrentz etc. . . So this segment goal the gamers, and who don't want to pay for the dvds and music cds and those people who can't await the home deliveries and specially go directly to the store to buy a products. They are able to concentrate on different genders and age groups of people from different areas by seeking to give great offers which catch the attention of customers to watch their favourites at homo. They are able to increase the way they focusing on by advertising more, if more they do advertisements for example on buses, cabs, tube station, bus ceases, the more people will be aware of their current offers and products, and much more will attracted, using this method they can target more media. One more thing is that if indeed they more targeted games rather than films and music they can entice the gamers more towards them, because now a day's music and movies are often available free on internet and can certainly be downloaded, this damages the business of HMV

There has already been mentioned in segmentation and focusing on part of hmv they are making a new segment of offering online options to their customers. As hmv has launched a fresh section on its called hmv online, now they need to tell the maximum number of folks about that segmentation. Hmv will inform about new portion to their customers by doing advertising in several areas for example on bus halts, tube channels trams, buses and cams. They also advertise by using print out and satellite press. Yet another thing is important in advertising new segment is usually that the ad should be attractive which entice customer towards hmv, in ad they will write that they are presenting cheap rates to download films games and music than another website in U. K. they will also advertise this at the top websites which can be most seen by the folks surviving in U. K.

Proposal of 7Ps:

Following are the 7ps:







Physical evidence


As our product is intangible we provides good quality results of films, music, games etc. . . Within the internet. The product is particularly for the folks who can't spend the money for price of the merchandise or who don't possess time to go to the store or can't wait for the house deliveries. For the internet they can find the movie easily by categories i. e. old movies, annual movie, action movies. If we look our competitor for example torrentz their product is not intangible.


Price is the factor which impacts the customer if the client getting the low price from another competitor so buyer will be enticed automatically. as our rival charging little or nothing for low quality plus they charging high rates for the high quality films, music and game titles. Hmv is supplying online options and giving the normal rates once and for all quality products. This makes customer happy because hmv is presenting good quality for each product giving at cheap rate. hmv gives the monthly registration so that hmv customers can usage of the unlimited films in a moth.


As hmv is introducing a new section known as as hmv online, there is a chance of inability of this section if hmv didn, t give any offer or present it perfectly in market because there are too many competition in market. Hmv gives good price for their customers and and also discount vouchers to be able to achieve the key goal of this segment which hmv targeted when these were making that portion.


Hmv provides the online platform to access the web movies, music and games on the internet. place is the factor which concentrate on the number of individuals. internet is quickly accessible by everyone of the world. Customer can simply come to internet to watch movies and download game and play online.


People will get more aware from hmv online after getting campaign, development, place and price it'll affect on visitors to get in. hmv will give attention to the individuals who can't await the house deliveries and do not can pay for to choose the movie, music and game titles from the shop. hmv will especially give attention to the young era who loves to play video game, downloads game titles, many educational game titles and films.


Hmv will publish a high quality movies, latest films as soon as it release in the market so people are able to watch prior then our competition. AS customer will buy music or download movies, video games from website hmv will give them very versatile to pay their bills. And the repayment will be so secure. hmv gives contract to some web engineers to make the payment methods secure.

Physical research:

Our product is intangible so customer access to the product via internet. so there is absolutely no physical data.

Control and evaluation:

HMV is launching a new portion, this means they have to face many competitors on the market which will try to fail the new portion of hmv. But hmv will compete its competitors by giving low prices and good offers to produce a development of new portion. In start hmv will put smart margin on this portion of company, whether hmv gets less revenue in start because first they would like to mature the section. After maturation of section hmv will put normal margin on its product in this segmentation. You will see a monthly evaluation which company will do to be able to get know that how much revenue they are receiving. There will be an effective check and balance about how much they are really spending on advertisements and other activities. Now a days as we know there are so many infections which can harm on computer and all data of hmv customers can be lost so in order to minimize that factor of risk hmv will have special technicians for your segment that will detect any kind of virus and correct it on time, or if you will see any other technological problem technicians will solve them. As there may be risky of money fraud on web and hmv will have a large web business, hmv will contract with highly trusted security company such as rappord company which is one of the famous security company which decreases the chance of online money theft threat. By keeping track of all of the factors we discuss in this statement preferably hmv will be successful in launching new portion.

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