T. C SMU BBA 07 - SMU Business Plan Competition

5 downloads 80 Views 60KB Size Report
SOUTHERN METHODIST UNIVERSITY COX SCHOOL OF BUSINESS. BUSINESS PLAN OF ... JENNIFER MCNABB VP OF MARKETING - SMU BBA 09.
SO UTHE RN ME THO D IST UN IVE RSITY CO X SCHO O L O F BUSIN E SS BUSIN E SS PLAN O F FO LLO W MY BAN D , IN C. WWW.FO LLO WMYBAN D .CO M

JO HN T. CO LE FO UN D E R/ PRE SID E N T SMU BBA 07 JE N N IFE R MCN ABB VP O F MARKE TIN G - SMU BBA 09 RICK CO LLIN S VP O F O PE RATIO N S SMU MBA 07 SIMO N MAK - FACULTY AD VISO R - [email protected] D U 2100 RO SS AVE N UE SUITE 750 Dallas, TX 75201 (214) 431-5212 JCO LE @SMU.E D U

D ISCLAIMER: This document is for informational purposes only and may not be reproduced without the consent of John Cole. This is not an offering to sell or the solicitation of an offer to buy any securities. Any representation to the contrary may place you and the issuer hereof in violation of state and federal securities law.

E XE CUTIVE SUMMARY TH E CON CE PT Follow My Band is a web-enabled service aimed at keeping fans informed about their favorite performers. Specific services will be targeted to music fans, music artists, and advertisers. Music artists and their fans will be able to join Follow My Band for free, with the option of upgrading to a subscription membership offering expanded service. Advertisers will be able to create their ad online, and advertise to specific demographic groups. Revenue will be generated from three sources:

Advertising Subscription services Affiliate partners

Follow My Band will facilitate a synergistic relationship between music artists and their fans: 1. Music artists can post tour dates on our site, which are then syndicated. 2. Music artists can use our online marketing tools, which engage their fans. 3. Music fans interact with the music artists and view comprehensive tour schedules. a. Our concert list will be the most comprehensive concert list. It will be actively updated by the artists, their representatives, and the fans themselves. 4. As more fans join the site to lookup tour schedules, more artists will want to join the site. As more artists are on the site, even more fans will come to the site. Follow My Band will first target fans and bands performing in the United States and within three years will expand to cover international concerts. Key Objectives:

To offer music fans the first-ever comprehensive index of tour dates To provide artists valuable tools for planning & marketing tour dates

MARKE T VIABILITY AD VE RTISIN G RE VE N UE will come from corporate advertisers and local advertisers. Our model is similar to that of Facebook: advertisements will be non-invasive and highly targeted to specific demographic groups. The market for online advertising is booming with a 28.2% growth rate. Follow My Band s advertising revenue comes from display-related advertising, which in 2005 composed 34% ($4.3 billion) of the total market for online advertising. SUBSCRIPTIO N SE RVICE RE VE N UE will be generated from users paying for premium features, similar to the model of LinkedIn: offer free service to everyone with option to pay for premium service. Fans and artists using the premium services will be billed a recurring monthly fee. AFFILIATE RE VE N UE S come from commissions earned when users purchase concert tickets or music from one of our affiliate partners. The site will be designed so that it will be easier for the user to purchase tickets/ songs directly from our site, rather than leaving our site and searching for them elsewhere. The market for concert tickets is mature ($2-3 billion annual revenues); the market for online music sales is growing at a remarkable pace (projected to be $10.7 billion in 2010). The driving factor in all three of these revenue streams is the amount of active users on the website.

MARKE TIN G STRATE GY Follow My Band will reach its full potential by creating synergies amongst music artists, venues, and fans. Our marketing strategy will first focus on getting independent bands to join Follow My Band. The free online newsletter for bands will require all fans on their list to register as Follow My Band users. Adoption by bands will lead to adoption by fans, and the ensuing synergies will fuel word-ofmouth growth without Follow My Band expensing large amounts of capital for advertising. Guerilla marketing is our choice style of campaigning. We will utilize such platforms as Facebook & Myspace while fueling word of mouth & search engine marketing campaigns. Active street teams will be used to help market in specific regions, and active campaigns will be conducted at major music festivals across the United States. MAN AGE ME N T OVE RVIE W The founder and president of Follow My Band is John T. Cole. John has been developing websites for nine years and runs his own web development shop. An accomplished student, he will graduate from Southern Methodist University (Honors Program) in August 2007 with a B.B.A. During his college career, John has held office in several organizations including DCCCD Vice President of Student Government and Founder of the SMU Consulting Club. John received a full academic scholarship to SMU based on his academic achievements. FIN AN CIAL PROJE CTION S/ IN VE STME N T OPPORTUN ITY 2007

2008

2009

2010

2011

RE VE N UE

$5,173

$610,664

$23,726,447

$78,741,478

$142,021,866

E XPE N SE S

-$96,410

-$191,802

-$1,199,387

-$3,196,445

-$4,903,413

O PE RATIN G PRO FIT/ LO SS

$ (91,237)

$ 418,863

$ 22,527,060

$ 75,545,033

$ 137,118,453

USE RS

6,800

349,500

7,200,000

13,000,000

19,050,000

Follow My Band is seeking $750,000 in startup capital to fund further development of the website, marketing, and operating costs for the first two years. Our revenues from advertising will increase dramatically inline with adoption by music fans and artists. Current projections show the company will become profitable in the second year. CURRE N T STATUS / E XIT STRATE GY Development of the beta website is underway and will be released to artists on March 31, 2007. An extensive ground-roots marketing campaign at SXSW Austin (March 13-18) will help drive initial adoption. Phase II targeting fans will follow soon after. Our preferred exit strategy is to sell the company to a party that has vested interest in reaching our user base. A few such buyers could be: Google, Yahoo, Live Nation, Ticketmaster.