Target Music Sales

Music sales are decreasing in all brick and mortar retail stores including Target. The music industry has evolved from consumers needing physical copies of music to digital. Many young consumers are looking for new ways to purchase digital music that will be easily transferrable to their iPod. However, our research shows that 35% of consumers still purchase their music in the form of CDs. Though CD sales are decreasing, consumers are still purchasing CDs. Our goal is to increase music related sales for Target through increasing brick and mortar sales in the store as well as increasing digital sales online.

Recommendation 1: Holiday Compilation CDs

Target has had successful partnerships with Beyonce, Taylor Swift and most recently, Michael Buble. Though these CDs increased Target music related revenue, the profit margins were low. In order to continue to meet the demand for CDs at brick and mortar stores, we recommend that Target create CD compilations for special occasions. Our research shows that CD sales increase during the holiday season. In addition, by bringing back classic songs like Bing Crosby or Elvis, Target will have a higher profit margin than an exclusive partnership.

Recommendation 2: Market and Utilize ScatterTunes Partnership

Despite the high competition in the digital music industry, Target has partnered with ScatterTunes to give guests the opportunity to purchase digital music from Target.com. ScatterTunes offers a new experience where their downloadable iBoard software offers virtual V-albums that include music, photos, lyrics, and videos. As the partnership already exists, Target can expand the music files available on the website including exclusive partnership CDs and the new holiday compilation CDs.

However, many consumers are not aware that ScatterTunes exists. Our recommendation is that Target should create a simple marketing strategy to increase consumer awareness. This recommendation is extremely low cost and will be simple to implement with Target's current marketing strategy.

Target has the opportunity to take advantage of the progression of the music industry and succeed in continuing to increase brick and mortar sales. Holiday compilation CDs will be exclusively sold in store at Target and online at ScatterTunes.com. Guests of all ages will be interested in learning about an interactive new digital music store as well as listening to songs sung by their favorite artists.