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SWOT analysis for a music house in Cuba

Anonim

The Havana House of Music, belonging to the EGREM company located in the central Galiano street, offers in addition to the Kafé Album that commercializes cultural products and storage of music, whose added value and no less important is that they contain the most genuine Cuban Music which you can enjoy and purchase accompanied by good gastronomy and CD sales.

analysis-foda-casa-musica-habana

“La Casa del Bailador”, opens its doors every day to offer a unique concert with excellent quality groups and audiovisual projects always from 5 to 9 at night with affordable prices for entertainment (depending on what has been agreed with the Agencies and the musicians). And at night it is decked out from 11pm to 3am to receive first-rate Orchestras among which we can mention: Alexander Abreu and Habana de Primera, El niño y la Verdad, Manolito Simonet, Maykel Blanco and his Salsa Mayor, Elito Revé and his Charangón, Pupy and those who are Son, Van Van among others.

The House has a preferential price for students, special offers for the Institutions, as well as for the Tourist Agencies that have a contract with the Entity.

We also benefit from the conglomerate of Hotels and hostels (Saratoga, Central Park, Deuville, Telegraph, Lincoln, England, Seville, Plaza) that we have around us, that although we have not established lines of work with them we will do it soon

EGREM has the management of the Kafé Album category which can be used to promote all the artistic programming of the Houses and the main products of EGREM. They are located in the Cruise Terminal, Almacenes de San José, Cine Yara, Pabellón Cuba, Maqueta de la Habana. Which support with the obtaining of numerous income for gastronomic sales concepts and cultural and musical products supplied by EGREM. All previously authorized by the Commercial Registry of the MINCIM through the pertinent commercial licenses.

But at this time this cultural center has needed a strong investment which caused its eminent closure, so the need to reformulate our precepts about the operation of this cultural center that is an important part of the Cuban Music Industry, in search of the survival and success without ceasing to recognize the need to obtain the income so necessary to sustain it. Today, our production and business process is not in accordance with the demands and needs of the proposed model, which is why it requires a substantial change that allows it to be competitive and profitable to sustain Cuban culture and society.

Currently, the market for the sale of media (CDs, DVDs) has decreased considerably at the international and national level, so the main way for the foreign currency to enter the country by the record companies is irremediably aimed at drawing up a policy suitable for artistic presentations and the export of services to facilitate our potential insertion in the commercialization of various musical and audiovisual formats.

The main lines of commercialization of services of the Casa de la Musica are the following:

  • Artistic Presentations in the afternoon and evening hours Activities for national and foreign entities and companies Sales of gastronomy and cultural products Sales at fairs and activities outside the entity

Despite the excellent position in the international Cuban music market, the Ministry of Culture, the ICM and our record labels are aware of the situation the country is in and the risk it faces to music if it is not in correspondence with the bars. international; product of the push for commercialization, so the Directorate of EGREM and the Casa de la Música Habana, which has within its functions the commercialization and empowerment of music as an income generator; You want to know how to create an action plan to relaunch the house of music, after the capital investment that has been carried out since 2016 to achieve greater benefits than in previous years, becauseSince the services and products of the center were not generating the necessary income and in recent times they have been showing a decrease in their profitability, which is placing the former Havana Music House of our country in an unfavorable position in the Market.

This study is novel since there is no history of this type of research in the entity, so the results achieved would be very useful for the entity, and may contribute to improving the position in the Music Market.

Therefore, we can define that the objective reality in which the research is framed is found in the customers who consume the product the most, those who go to the center to consume the services and the products of the facilities, who are the object of study.

Particularly the field is directed to the Commercial subsystem, since it is the direction of the organization most interested in solving this problem previously raised.

The theoretical framework will be based on the fact that one of the ways of knowing the unfavorable qualities that products may have is through the study of customer and competitor satisfaction in order to arrive at a favorable strategic diagnosis that, through a correct action plan, can be completed the central objective.

To solve this problem, there are different theories, but it will be the results of the surveys that will show the materials to be consulted for their correct solution.

And the competition studio of most of the centers surrounding the facility.

Among the possible works to consult:

  • Diploma thesis 2008-2009 related to the subject. Materials from the main labels Abdala, Colibri, Bis Music, EGREM updated 2013-2014. Article "Marketing in the XXI century" by Rafael Muñiz Gómez. "Marketing Management". Philip Kotler. Millennium Edition, Volume I, II, III. ” Customer satisfaction ”. Marketing Portal. Iván Thompson. "Satisfaction from the study of customer characteristics." Notes No 13, January-June, 2007. Margarita Valdés, Idania Méndez. "Book of Market Research", Volume I and II. Collective of Authors. Ç For further analysis of the study, it is defined that customers are the most important thing for record labels, so it is vitally important to take into account their points of view, expectations and demands,This is the most valuable information that any company can possess to design and deliver quality products that increasingly meet their expectations that are the reason for being.

Based on the foregoing, the present work has the purpose of making known to the Management of the Havana House of Music and EGREM, the criteria and concerns expressed by its clients and the study of competitors. To fulfill the stated purpose, a general objective was developed:

  • Design the Action Plan for the Cuban musical and audiovisual product and service to be marketed at the Casa de la Música Habana when the capital investment ends in 2017.

For which, the following specific objectives were outlined:

Build a conceptual theoretical framework that addresses the basic elements of marketing, the Business plan, Strategic Management, Study of Competencies and market research as an information capture tool.

Analyze the current internal and external situation of the UEB Casa de la Música Habana.

Carry out a Market research that serves as the basis for the preparation of the Marketing Plan proposal.

Design and propose the Marketing Plan with the Action Plan for the more efficient commercialization and administration of the remodeled Casa de la Música Habana.

The logical procedure (theoretical model) to be applied for the study of customer satisfaction is defined by the following sequence of steps:

Marketing definition: where it will be defined which is the one that best suits the research.

Identification of the Marketing Plan: within it the Importance and structure will be shown.

Definition of Market Research as an information capture tool

Analysis of the Results of the Satisfaction Surveys Preparation of the Marketing Plan for the center.

Plan proposal to eliminate customer dissatisfaction with products.

Action Plan Proposal

To fulfill the stated objectives, the work will be structured as follows:

In the introduction, the importance of work is referenced and the topic is introduced.

Chapter I: Theoretical-conceptual framework

This chapter addresses the entire theoretical and conceptual foundation. It contains the definitions of logistics and negotiation, business plan, market research, as well as its characteristics. At the same time, the business plan, market research as an information capture tool, as well as their structure are conceptualized.

Chapter II: Characterization and analysis of the current situation of the Casa de la Música Habana.

In the second it will be about the general guidelines of the Platform, its background, emergence of music and its characteristics, mission, vision, structure, documents that must accompany the approval of the project, terms of reference, objectives, product portfolio, customers, suppliers, competitors, and a brief financial-economic analysis will be carried out to establish the state of the entity. An external and internal diagnosis of the facilities that make up the center will be carried out. Research and your need for information will be raised.

Chapter III: Results of the Investigation and Proposal of the Marketing Plan to relaunch the Havana House of Music.

It will be about the analysis of the results of the satisfaction survey of international and national clients; the possible proposals of the Marketing Plan for the investigated entity, its services and products will be given.

In order to finally be able to form the Action Plan to be followed, after carrying out the SWOT analysis and the positioning of CASA, whose potential in the market is known and the limited scope it has had for various reasons that will be analyzed in the research perform and of which the result of it is shown as the main solution to the problem.

For the realization of this thesis work, different techniques and methods will be used, such as surveys, internet consultations of the main

marketers, interviews and direct observation, in the investigation the processing of the results will be carried out through the SPSS program, in its version 13.0 for WINDOWS.

With this thesis, the potential of the Cuban Musical product that is marketed in the EGREM Music Houses and that its insertion is imminent for the survival of Cuban Music as a pillar of Culture and one of the main exponents of the traditions of our country.

Supporting that customer satisfaction is the main guide for the solution of many of the problems that occur in the commercial sphere and allow satisfaction studies to bring up many of the causes that affect the profitability and positioning of products in today's world.

This research, as you can see, is extensive, but this article will capture the SWOT Analysis with its strategic solution that will allow you to solve the problems detected.

Section 1. SWOT Analysis

Once the external and internal analysis that was carried out on the functional areas and the study of the results obtained from the satisfaction survey applied to the final client have been completed, the opportunities, threats, strengths and weaknesses have been identified, which are going to take into account in the formulation of marketing strategies in a future article.

Strengths Weaknesses
F1: Artistic presentations of large format orchestras D1: Regular working conditions.
F2: Personnel committed to the fulfillment of their work, daily improvement of their functions and to the continuous improvement of the company. D2: Technology behind in terms of lights, audio, bars, compared to competitors
F3: Good Salary Remuneration. D3: Need for capital investment in the house to be in tune with competitors
F4: Autonomy as UEB to carry out its commercial operations in CUP D4: Necessity of inputs constantly, because we are at a disadvantage compared to the competition
F5: Possibility of marketing 2 rooms for artistic presentations at 3 times a day (700 pax) D5: Low capacity

storage

F6: As a UEB, you have a favorable situation within the EGREM Company. D6: Low cooling and refrigerator capacity. The necessary supplies cannot be stored
for great activities.
F7: Satisfied clients with artistic presentations at home D7: Clients dissatisfied by the conditions of the House.
F8: Existence of indoor dance floor D8: Little knowledge of Marketing in the institution. They do not implement all the elements in their commercial management.
F9: Existence of a brown album, unique products of the House in the Province to promote the House. D9: Failure to take advantage of all installed capacity.
F10: Professional and qualified staff. D10: Impossibility of paying in cash and impossibility of managing the account in cuc as competitors do.
D11: Non-use of the Album Café for promotion and tourists
Opportunities Threats
O1: the product is mostly known to the customer (live performances and discography, gastronomy) A1: Existence of national competition. Abundance of similar entities that markets the same product (presentation

artistic with support gastronomy)

O2: Relaxation of the blockade: Increase in the arrival of tourists A2: Increased public interest in spending money on other distractions and not on live performances at Music houses.
O3: Preference of tourism for Music

Cuban

A3: Preference towards other forms of distraction that do not imply
cover payment (WIFI, Restaurants,

Pubs)

O4: Under investment process in the country in the food industry. A4: Commercial and financial restrictions imposed by the United States government. Increase in the purchase of raw materials.
O5: Absence of a regulatory framework that protects the client. A5: Competitive prices, lower than ours.
O6: The Cuban market is governed by price policy. A6: Scarce supplier market. Increased raw material costs
O7: High demand for fast-cooking food on the market to share during presentations A7: Low purchasing power of the population
O8: Assignment to the Point of Sale House on the Cruise and in the Plaza de San José. A8: Limitations imposed by the state, for investment.
A9: Constant dependence for any decision or investment of the EGREM Headquarters budget, slows down trade flows. Delays in the commercial management of companies in the country.
A10: Possibility of the competition to have faster access to inputs for its management (to be able to pay in cash)

With the elements resulting from the internal and external analysis, the SWOT matrix was prepared, using the cross-impact method, obtaining the following result.

1.1 SWOT matrix

Positioning of the Havana House of Music in the SWOT Matrix.

According to the results of the Cross Impacts Matrix:

The most important opportunities are O1, O2, O3, O8. The most significant threats are: A1, A3, A7, A8, A9, A10. The most important weaknesses are D1, D2, D3, D8, D11. While the main strengths are F1, F5, F8, F9 and F10. The greatest impact is concentrated in the quadrant of strengths and opportunities, which denotes that the product of the House of Music is facing strong opportunities, with significant strengths, so the House must build on its strengths in such a way that it can make the most of the opportunities offered by the environment, especially those factors that consider your driving forces F1, F5, F8, F9, F10.

Parameters Opportunity des Threats
Strengths
Weaknesses

Conclusions of the strategic diagnosis

Considering the positioning in the Parent Company, offensive strategies are recommended, which implies that the company must maximize strength in order to affectively take advantage of opportunities.

General strategic problems

To continue with the weaknesses: D1, D2, D3, D4, D8, D11, In the presence of threats: A1, A3, A7, A8, A9, A10 Even with the strengths: F1, F5, F8, F9, F10.

You will not be able to take advantage of the opportunities: O1, O2, O3, O8.

Strategic Solution

The fact that the product is known by the client, that there is some relaxation of the blockade that contributes to an increase in the arrival of tourists who prefer Cuban music and that there is a high demand for fast-cooking food on the market to consume during presentations, allows the entity to stand out for large-format orchestral presentations, to have the possibility of marketing 2 rooms for artistic presentations and other activities, to have good salary, a prepared, professional staff committed to the fulfillment of work and continuous improvement from the center, in addition to the existence of an indoor dance floor,It allows its clients to be satisfied with the presentations and with the existence of a coffee album where they can perceive the gastronomic and cultural products offered by the institution and the House is promoted. With all this, it is possible to counteract and attenuate the existence of national competition that markets the same product, the increase in public interest in spending on other distractions, the restrictions of the United States government, the increase in raw material costs and prices lower than competitors. Coupled with the regular working conditions, backward technology in terms of lights, audio, bars, the need for capital investment, supplies and storage capacity, cooling and refrigerators and customer dissatisfaction with the conditions of the Casa de la Música Havana.

CONCLUSIONS

In today's highly competitive world, it is necessary for companies to pay more attention to the increasingly changing environment. A marketing plan allows the company to know its market, the characteristics of the competition, what opportunities and threats exist in its environment and its strengths and weaknesses.

The marketing plan, for example, can be used not only to start a new business but also to improve an existing product, enter a new market or other variants. It is a planning tool that allows the entity to have a more flexible position in the face of the changes that occur in its environment and therefore have a greater possibility of achieving the objectives it sets.

The product faces strong opportunities with significant strengths, the company must fight to maintain its strengths and in this way make the most of the opportunities offered by the market, especially those that constitute its driving forces: F5, F8, F9 and F10.

From the analysis of the impact of the SWOT matrix, it was determined that the entity must apply an Expansion or Offensive strategy because it has strengths with greater impact than weaknesses and although it is not without threats, it has a favorable perspective from the opportunities provided by their environment.

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Product under development by EGREM, which converts the network of discography outlets into spaces to listen to and combine the best Cuban discography with a good cup of coffee, in true convergence. It can already be found at the Casa de la Música Habana, Casa de la Música Miramar, Casa de la Música de Varadero, at the La Vitrola Cultural Complex of Havana City Studios, in Santiago de Cuba (formerly Oriente Cinema) and recently in the Cuba Pavilion fairground in La Rampa .

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SWOT analysis for a music house in Cuba