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Welcome
Did You Know?
Did you know that artists have their own Trade Union?
This Trade Union is known as the South African Music Rights Organisation
(SAMRO). This organization ensures that artists get compensated for their
work.
This includes royalties for radio and television airplay as well as live
performances that SAMRO take part in.
SAMRO Statistics
As of October 2013 SAMRO has 33 630 members. This means that there 33 630
registered artists getting compensated for their music in South Africa.
In 2015 SAMRO received 12 650 new members. This shows that artists are on
the increase every year.
Royalties
• Artists receive 65% royalties from their music.
• This means that artists receive majority royalties from their work. The
further 35% goes to the composers and producers of the artists song.
1
2
3
AN
Entertainment
Panning you into the future…
What is PAN Entertainment?
• A Digital Music Marketing Agency that assists upcoming artists with their
reach to the audience
• Our business concept is to distribute music through a Subscription-Based
app called “One Press Express” that distributes music to radio stations,
television stations and online music platforms through a press of a button.
What is our Mission?
• Creating a means for providing the upcoming artist with a marketing
innovation that grants instant gratification
What is our Vision?
• To be the leader in online services that distributes and promotes local
upcoming artists
What is our Purpose?
• To monetise and gain maximum profit through a successful technology
innovation of the artist marketing method
Key Partners
 Radio
 Television
 Online
Magazines
 App developer
 Artists
 SAMRO
Key Activities
 Networking
 R&D
 App
development
 Marketing
 Distribution
Key Resources
 Artists’ material
 Technology
 Human Capital
 Internet
Cost Structure
 Marketing
 App development
 Salaries
Value Proposition
 One
Press Express App
Customer Relationship Customer
 Advertisements to Segments
customers
 Upcoming
 App stores/Reviews
artists
 Social media
 16-35
 E-mail
communications
Channels
 Social Media
 Magazines
 Live local events
Revenue Streams
 R50 monthly subscription/R600 annual fee
 10% from royalties
TELEVISION
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Channel O
Vuzu
Vuzu Amp
KykNet
Mzansi Music
Mtv
Gospel TV
Soweto TV
BET Africa
SABC 1
SABC 2
SABC 3
E-tv
One Press Express
APP
One Press
Express
ONLINE MUSIC SITES
SOUNDCLOUD
TUNECORE
ITUNES
DATAFILE HOST
RADIO
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SA-fm
5fm
Good Hope
Metro Fm
RSG
RADIO 2000
UKHOZI fm
Umhlobo wenene
Thobela FM
Lesedi
Motsweding FM
Phalaphala FM
Munghana Lonene
Ligwalagwala Fm
Lotus
Tru Fm
Metro Fm
Bliss Sibiya
Ntuthuko Zulu
Core Course Links
• Need
• Productivity
What is Leadership?
• The art of leading others to intentionally create a result that would not have
happened otherwise.
• A process of social influence, which maximizes the efforts of others, towards
the achievement of a common goal.
• A leader is someone who motivates, inspires and guides others towards the
desired and common outcome.
• Leaders set direction, build an inspiring vision and create something new.
Head of School
Disciplinary Action
&
Information development
Business Leader
Operational Manager
Goals & Policies
Strategy & Objectives
Sales & Marketing
Value Capture
Value Proposition
Finance
Revenue Management
Different types of Leaders
•
•
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•
•
•
•
Transitional leader – Leads for change
Situational Leader – Leads based on Situations
Transformational Leader – identifies needed change
Value based Leader – Leads by value
Free Reign Leader – leads by allowing followers to do as they please
Autocratic Leader – Makes decisions on his/her own
Democratic Leader – Lets his followers decide
What type of Leader am I?
Democratic Leader
Laissez-Faire
Maslow's Hierarchy of Needs
Aldefer’s ERG
Growth
Relatedness
Existence
Herzberg’s Two-Factor Theory





High
Hygiene Factors
Motivator Factors
(lower order needs)
(higher order needs)
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


Salary
Company Policies
Working conditions
Benefits
Job Security
Job Dissatisfaction
0
Career advancement
Personal growth
Recognition
Responsibility
Achievement
Job Satisfaction
High
McGregor's X and Y theory
How to make the Team Productive
Incentives to boost morale
• Allow music to be played while accomplishing tasks
• Trust the team members to complete their tasks and facilitate them
• Team building
• Allow members to leave early when tasks are complete
• Team members may dress how they feel
Bliss Sibiya
Aluve Macetyana
Core Course Links
• Business Modelling
• Need
• Economy
Key Partners
 Radio Stations
 App developer
 Artists
 SAMRO
 AFDA
Key Activities
 Networking
 R&D
 App
development
 Marketing
 Distribution
Key Resources
 Artists’ material
 Technology
 Human Capital
 Internet
Cost Structure
 Marketing
 App development
 Salaries
Value Proposition
 One
Press Express App
Customer Relationship Customer
 Advertisements to Segments
customers
 SAMRO
 App stores/Reviews
members
 Social media
 16-35
 E-mail
communications
Channels
 Social Media
 Magazines
 Live local events
 Seminars
Revenue Streams
 R50 monthly subscription/R600 annual fee
 10% from royalties
Key Partners
• Radio Stations
• App Developer
• Artists
• SAMRO
• AFDA
Key Activities
• Networking
• R&D
• App Development
• Marketing
• Distribution
Key Resources
• Artists’ Material
• Technology
• Human Capital
• Internet
Why Associate with SAMRO?
The option of collaborating with SAMRO is influenced by the fact that they
have more than 33 000 artists registered under them. Because a market has
been established by SAMRO we can penetrate that market directly with this
association.
How can we benefit from the association with
SAMRO?
• We establish a market share through them as an association because their
members are protected
• We may integrate our policy with theirs.
• We can get assistance with marketing our APP.
How SAMRO benefits from us
• SAMRO can easily give out royalty payments to artists because of our app
that is being provided. Every time an artists music gets played SAMRO can
easily get a notification through Artificial Intelligence. This makes pay outs
quicker than before.
• This makes it easier for administration on SAMROs part and less stress for
the artist involved.
What is Management?
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Management is the functions of creating corporate policy and utilising its resources
in order to achieve the objectives of that policy.
Organizing
Planning
Coordinating
Controlling
Commanding
Strengths
 Marketing is low
 Costs easy to manage
 Human Capital
 Organizational culture is good
 Integration of avenues
Weaknesses
 Time
 Financial Capital
Opportunities
 Changing environment
 Availability of resources
 Innovation of market
 Local music policy passed by SABC
 Discovery of new talent
Threats
 Competition
 Record Label Strategies
 Economy (Macro Environment)
Policies
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Division Policy
Time and attendance
Privacy Policy
Equal opportunity
Employee conduct
Disciplinary conduct
Ethical Policy
Disclaimer policy
What is Blue Ocean Strategy
• A new mind set that makes competition irrelevant due to unique thinking of
innovation
Blue Ocean Marketing Frame work
• Full Independence
• Quicker fan base
• More decisions an
artists can make
• Dependence
on record
labels
• Exploitation
Raise
Create
Eliminate
Reduce
• More creativity
within the industry
• Increase in material 90% local 10%
international airplay
• Maximum control
over artists material
• Administration for
the artists
• Control on record
labels
What is Operational Management
• Operational Management are processes used to design, supply, produce
and deliver valuable goods and services to customers
• Also known as process management that manages all the processes used to
get the product to the consumer
• If a business was a car then operation management would be the engine
What is a Process?
• A process is a series of activities, steps or tasks which are all interrelated.
• Activities that transform inputs into valuable outputs.
Inputs
•Energy
•facilities
•Material
•People
•Information
•Technology
Transform
Coding
 App
Development
 Research
 Features
Outputs
•One Press
Express
The Value Process
SAMRO artists
submits music on
the app
SAMRO can pay
royalties instantly
“Pay per Play”
For every royalty
pay out 10% goes
to Pan
Entertainment
One Button
Express (app) gets
notification of
submission
SAMRO receives
notification of
submission
SAMRO records
number of plays
Radio/ TV stations
play music
Three Vital Elements
Benefits customers
expect to obtain
by using the
products offered
by the firm
Customer
segment
receiving priority
because it is
critical to the
firm’s success
Value
proposition
Operational
activities that the
firm can perform
well
Critical
customer
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•
Indie music
artists
Indie record
labels
A website and
app that markets
and distribute
indie music to
radio stations and
television networks
Capabilities
Songs and music
video submissions
to well known TV
and radio stations
Instant Gratification
Convenience
What is Project management
• A project is temporary task that it has a specific beginning and end in time,
and therefore defined scope and resources.
• A project is a one-time activity that has a set time in which to complete and
a budget.
• Infrequently occurring set of activities that creates outputs within prespecified time and cost.
Project Management
• A Project is:
• unique
• not a routine operation
• specific set of operations designed to accomplish a singular goal
How Do Projects Succeed?
• It must be completed within budget.
• It must be completed on time.
• The Goals/deliverables should meet the expectations of customers, project
team members and other stakeholders.
Gantt Chart
Produced by
Computergaga
Project Start Date
2016/08/15
Current Date
2016/08/12
Project Duration
0%
42 days
% Complete
39%
1
Task Name
1
2
3
4
5
6
7
8
9
10
10
11
12
13
Duration
40%
60%
80%
100%
39%
2016/08/15
Task ID
20%
Start Date
Phase 1: Idea Generation
1 days
2016/08/15
Generate ideas
14 days
2016/08/15
Research record labels
2 days
2016/08/16
Research Soundlcouds business model
2 days
16/08/2016
Research Trackwave Digtital
2 days
2016/08/20
Gather information on possible TV3 networks
days
2016/08/21
Have a meeting with Independent5 Radio
days stations
2016/08/25
E-mail SABC
5 days
2016/08/25
Register the company
1 days
2016/08/22
E-mail SAMRO
1 days
2016/08/23
Search for App developers
3 days
2016/08/24
Set-up Instagram Account
1 days
2016/08/20
Set-up Facebook Account
1 days
2016/08/20
Set-up Twitter Account
1 days
2016/08/21
Finish Date
16/08/2016
02/09/2016
18/08/2016
18/08/2016
23/08/2016
24/08/2016
01/09/2016
01/09/2016
23/08/2016
24/08/2016
29/08/2016
22/08/2016
22/08/2016
22/08/2016
%
100%
50%
75%
100%
100%
10%
0%
0%
0%
0%
50%
100%
100%
100%
2016/08/22
2016/08/29
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 01 02 03 04
Project Management
Scope/Quality
(Better)
Schedule
(Faster)
Budget
(Cheaper)
Project
Deliverables
What must I have in order to be a good project
planner?
• Influencer of people.
• Clear communicator.
• Self-motivated.
• High ethical standards.
• High threshold for ambiguity and stress.
• Well-connected with the customer.
What is Chaos Theory?
• A mathematical theory also known as the “Butterfly Effect”
• It is when small change affects a greater cause.
Chaos Theory Redefined
CHANGE
EFFECT
Chaos Theory Redefined
Cause
Effect
Not pitching to work
Delay in meeting targets.
No consensus between
employees
Focus would be on finding
solutions not work.
Strikes
Delay in reaching deadlines.
How do we instil Sustainability?
• We instil sustainability through the triple-bottom line approach also known
as the 3P’s (People, Planet and Profit)
People
• Pan Entertainment will take part in Seminars to empower people with the
passion for music.
• Collaborate with SAMRO to talk to upcoming musicians about the future of
music.
• Build a centre with a music studio in Underprivileged backgrounds.
• Collaborate with different cultures and races through Theatre shows and
concerts e.g. Found “The Rainbow Concert”
Planet
• We are not influencing negatively on the impact of global warming however
we do want to contribute to the planet by contributing to environmental
organizations
Profit
• We want to make it easier for upcoming artists to get their music out there
at a frugal cost but still make a profit as a business.
• We are creating economic value by investing in the art sector.
• We want to invest in art festivals, concerts and tourism routes to get people
outside the country to come and spend within it.
•
We want to create events similar to Tomorrowland for tourists to come
enjoy our music as well as our culture and send money during their stay.
Edwin Chetty
Ntuthuko Zulu
Core Course Links
• Need
• Economy
• Business Modelling
Key Partners
 Radio Stations
 App developer
 Artists
 SAMRO
 AFDA
Key Activities
 Networking
 R&D
 App
development
 Marketing
 Distribution
Key Resources
 Artists’ material
 Technology
 Human Capital
 Internet
Cost Structure
 Marketing
 App development
 Salaries
Value Proposition
 One
Press Express App
Customer Relationship Customer
 Advertisements to Segments
customers
 SAMRO
 App stores/Reviews
members
 Social media
 16-35
 E-mail
communications
Channels
 Social Media
 Magazines
 Live local events
 Seminars
Revenue Streams
 R50 monthly subscription/R600 annual fee
 10% from royalties
What is Marketing?
“The aim of marketing is to make selling unnecessary” – Peter Drucker (1973)
•
•
•
NOT just advertising
NOT just selling
NOT just promotion
•
•
•
Getting inside the consumer’s mind
without them knowing it
Selling as much as possible to make a
profit.
Selling products to achieve objectives
What does Marketing involve and why is it
needed?
• Essentially understanding your product and your consumer
• Without marketing, no one would know what the product is
• Appealing to the Need of the consumer i.e. Want to Need
What is the Marketing Mix
• According to Mind tools (2016) the marketing mix is a business tool used in
marketing and by marketers.
• This comprises of the 4P’s - People, Price, Place and Promotion
• This comprises of the 4C’s - Consumer, Cost, Convenience and
Communication
The Marketing Mix
One Press Express
R50 monthly
subscription
South Africa
App Stores
The Marketing Mix
Consumer: 16-35
Cost: R50 p/month OR R600 p/annum
Convenience: marketing is easily accessible without much effort from artist
Communication: Weekly e-mail updates that serve as query management as well
Porter’s Five Forces
Bargaining Power
off Buyers
Threat of
Substitute
Products
Rival
Competitors
Threat
of New
Entrants
Bargaining Power
off Buyers
What is a Marketing Plan/Strategy?
• A comprehensive document or blueprint that outlines a company’s
advertising and marketing efforts for the coming year.
• Describes business activities involved in accomplishing specific marketing
objectives within a set timeframe.
Pan Entertainment’s Marketing Plan
• Aggressive digital marketing
• SAMRO Seminars & conferences
• Community & College Radio stations
• Live events (Open mics, talent shows etc.)
• Performance schools
• High schools
E-mail Account
Facebook Page
Twitter Page
Instagram Account
What is Market Research and the purpose thereof?
• The action or activity of gathering information about consumers’ needs and
preferences
• Is there a market for our value proposition?
• Therefore allowing the making of wise and profitable business decisions
95% 90%
20
19
18
18
Market Research
95%
85%
19
17
14
Frequency
10
8
19
18
17
16
12
90%
85%
95%
60%
55%
45%
55%
45% 40%
12
11
11
9
9
Yes
8
No
6
4
2
0
5%
1
15%
10%
3
2
5%
15%
10%
3
2
1
1 DO YOU KNOW 2 HAVE YOU EVER 3 HAVE YOU EVER 4 DID YOU MAKE 5 DID YOU MAKE
6 HAS THOSE
7 WOULD YOU
8 ARE YOU
9 HAVE YOU EVER
WHAT A DIGITAL APPROACHED MADE ATTEMPTS USE OF SOCIAL USE OF RADIO &
METHODS
APPROACH AN
AWARE OF
MADE USE OF
MARKETING
ONE
TO MARKET
MEDIA
TELEVISION
WORKED IN
AGENCY TO
SOCIAL MEDIA
THEM
AGENCY IS
YOURSELF AS AN
GETTING YOUR ASSIST YOU WITH
BOOSTS
ARTIST
NAME OUT THERE
YOUR
MARKETING
Questionnaire
5%
1
10 WOULD YOU
PAY AN AGENCY
TO ENSURE ALL
EFFORTS OF
MARKETING YOU
Would you pay an agency to ensure all efforts of marketing you
5%
1
2
95%
Proof of Concept
Edwin Chetty
Aluve Macetyana
Core Course Links
• Resources
• Economy
Key Partners
 Radio Stations
 App developer
 Artists
 SAMRO
 AFDA
Key Activities
 Networking
 R&D
 App
development
 Marketing
 Distribution
Key Resources
 Artists’ material
 Technology
 Human Capital
 Internet
Cost Structure
 Marketing
 App development
 Salaries
Value Proposition
 One
Press Express App
Customer Relationship Customer
 Advertisements to Segments
customers
 SAMRO
 App stores/Reviews
members
 Social media
 16-35
 E-mail
communications
Channels
 Social Media
 Magazines
 Live local events
 Seminars
Revenue Streams
 R50 monthly subscription/R600 annual fee
 10% from royalties
What is the purpose of Finance?
• Calculate the costs of a business
• Calculate the revenue streams of a business
• Ensure that the revenue is greater than cost
Costs of a Business
• Various costs involved in the running of a business
• Most important, and common being Operating Costs
•
Expenses related to the operation of a business on a daily business
• Examples include:
•
•
•
Inventory
Salaries and Benefits
Advertising and marketing
Thereafter classified
into Direct & Indirect
Costs
Methods of Costing
• Marginal
•
•
Excluding fixed costs from the costing of a product
Making use of the variables involved in production of product in costing
• Total Absorption
•
Including the fixed costs/overheads into the costing of a product
What is a Budget?
• A quantified plan of action for a forthcoming accounting period.
• An itemized summary of likely income and expenses for a given period.
• A plan in monetary terms to explain what the business will do in the future.
The purpose of budgeting is to provide a financial framework for the decisionmaking process.
How to create a Budget?
1.
What are my goals?
The first step in creating a budget is to set your goals
Budgeting involves tough choices
2. Where is my money coming from?
This includes income sources, funding etc.
3.
Where is my money going?
Includes operating expenses and capital outlays (fixed and variable costs)
4. Add it all up.
5. Make adjustments if needed.
Types of Budgets
• Financial budget
• Focuses on cash and capital expenditures.
• Making sure the business has the cash it needs to fund its operations and
to maintain and/or upgrade its buildings and equipment.
• Operating budget
• Detailed plans that estimate how much income a company expects to
make and what it thinks its expenses will be in the short-term, a year.
• There are usually separate operating budgets to create plans for each
area of the business.
Budgeting Techniques
• Incremental budget
Based on the current year’s results plus an extra amount for estimated growth
or inflation next year
• Fixed budget
Budget that is designed to remain unchanged regardless of volume of output
or sales achieved
• Flexible budget
Designed to change as volume of outputs change
• Zero-based budget
Budget from a zero base where every item of expenditure has then to be
justified in order to be included in next year’s budgets
Our Pricing
• Our price is R50 monthly subscription or R600 annual fee
• First year projection is based on 5 000/ 33 000 members
• Second year projection is based on 10 000/ 33 000 members
• Third year projection is based on 15 000/33 000 members
• Our pricing is made to accommodate the struggling artist.
Year One
Sales
Start-Up Costs
App Development
Company Registration
Year Two
Year Three
R3 000 000,00
R6 000 000,00
R9 000 000,00
5000 units
10 000 units
15 000 units
R250 000,00
R550,00
Non-Operating Costs
Donations
Total Non-Operating Costs
R250 550,00
R0,00
R0,00
Operating Costs
Advertising
Stationery
Communication
Bank Charges
Salaries
Contingencies
Total Operating Costs
R9 000,00
R2 400,00
R14 400,00
R2 400,00
R120 000,00
R12 000,00
R160 200,00
R9 000,00
R2 400,00
R14 400,00
R2 400,00
R120 000,00
R12 000,00
R160 200,00
R9 000,00
R2 400,00
R14 400,00
R2 400,00
R120 000,00
R12 000,00
R160 200,00
R410 750,00
R2 589 250,00
R160 200,00
R5 839 800,00
R160 200,00
R8 839 800,00
Total Costs
Net Profit/Loss
Net Profit/Loss
R10,000,000.00
R9,000,000.00
R8,000,000.00
R7,000,000.00
R6,000,000.00
R5,000,000.00
R8,839,800.00
R4,000,000.00
R3,000,000.00
R5,839,800.00
R2,000,000.00
R1,000,000.00
R2,589,250.00
R0.00
1
2
3
Break-Even Analysis
• R410 750 / R600
• R32014 / R600
• R32014 / R600
= 685 people in the first year
= 3204 people in the first year
= 3204 people in the first year
Methods of Funding
• Angel Investors
• Dragons’ Den South Africa
• App Contests
• Effectuation Theory vs Frugal Thinking in the loop of Resources
Conclusion
• No loan = No increase of cost
• Immediate growth is visible in our business, increasing rapidly over time
• Investments are likely to become more fruitful in the future deeming the
business Sustainable in the loop of Economy
Thank You for your time