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Due largely in part to the increasing intelligence of
the consumer base, record labels that have consistently been successful
face a serious challenge in maintaining the value of the brand name they
worked so hard to obtain. It is very easy to become complacent, knowing
that other labels are making changes to increase their market share. As a
reminder that becoming a cellar dweller is by no means impossible, here
are ten ways to kill your brand:
1. Ineffective A&R – Strong catalog sales will only sustain a record label
for so long, potentially placing the label in a position to suffer severe
fiscal damage if the proper talent acquisitions don’t occur. Conservative
A&R thinking, continuous signings of artist clones, and being non-pursuant
of production deals, label deals, and joint ventures is not strategically
beneficial for the label.
2. Losing touch with the grassroots – It is very important to maintain
strong ties with independent retail, clubs, record pools, key mixers, and
small market radio stations. Losing touch with these key individuals means
a shaky foundation for the label.
3. Ineffective use of independent marketing and promotions – It is
understood that labels will need to hire the service of independents on
occasion. In doing so, make sure that you have maximized the potential of
the in-house staff. If you notice that your budget for independent
services has gotten out of control, consider rectifying internally to
decrease the need. When using independents, understand your needs
beforehand, to ensure they are effectively and efficiently helping you
accomplish your goals.
4. Internal politics – Higher executives too far removed from today’s
target market are hindering the growth of the company. Middle management
and field reps are afraid to approach these individuals in fear of rocking
the boat and losing their jobs.
5. Consistently releasing sub par material – Such a reputation causes
problems at retail, resulting in lower initial orders. It also steers
potential talent in the direction of other labels.
6. Lack of project support – The results of such action include albums
that are “critically acclaimed” and “most slept-on.” The cause of this is
failing to understand the demographics in order to successfully reach the
target market.
7. Failure to maximize project dollars – In essence, this means wasting
money. This includes ineffective use of P.O.P. and not being timely with
the distribution of promotional material.
8. Confirming trends instead of creating trends – Due to the mass
penetration of imitation, trends have a short life expectancy. This causes
a lack of creativity in the marketplace.
9. Lack of artist retention – The lack of artist development and too much
emphasis on going platinum “in four weeks” causes artist resentment,
ineffective promotion, and “Where are They Now” episodes on VH1.
10. Not using common sense – It’s a combination of the previous nine
points, and simply put, not understanding the roles of each facet of the
music business.
Not all signs of an ineffectively run record label are immediately
noticeable. To get a full picture of the current state of your brand,
conduct an in-depth S.W.O.T. (Strengths, Weaknesses, Opportunities,
Threats) Analysis. Strengths and weaknesses focuses internally, while
opportunities and
threats focuses externally. From there, proceed to making the necessary
changes.
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