BusinessPlan

February2016

Contents

1. Introduction,Concept&ExecutiveSummary
2. Background

2.1
Experience
3. MissionStrategies

3.1
MissionStatement

3.2
Values
3.3
VisionStatement

3.4
SWOTAnalysis
4. Services
5. MarketingAnalysisandSummary
5.1
SecondaryMarketResearch

5.2
PrimaryMarketResearch

5.3
CompetitorAnalysis

5.4
TargetMarket
5.5
ConsumerProfile
6. MarketingStrategy

6.1
BrandIdentity
6.2
WebsitePrototype
6.3
SocialMedia
6.4
BusinessCardPrototype
6.5
NetworkingEvents
7. OperationalIssues

7.1
OfficeLocation
7.2
FutureInvestments
8. Finance

8.1
StartUpBudget
8.2
CashFlow
8.3
BusinessModel

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1|Introduction

1.1Concept&ExecutiveSummary

FoundersofNuPlague,BlaneDaveyandShaunBodenbelievethattheirpreviousexperience
intheindustryhasequippedthemtobuildasustainablerecordlabelbasedintheMidlands.
Blanehasbuilthisnameintheindustryasacreativeentrepreneurandhasworkedatthetop
levelofsmallermediaenterprisesaswellasatthebottomofbiglevelmediaenterprises.Shaun
ishimselfalongtimeparticipantoftheUrbanmusicsceneandhasreleasedmanyrecordings
overdifferentplatformsandhashadsuccessesonmanydifferentlevelsoftheindustry.

NuPlagueRecordswillcomeundertheBrandofNuPlague,alongwithNuPlagueMedia,itisa
subsidiaryofaalreadyestablishedcompanyCrescoSonitus.NuPlagueRecordswillusethese
otherbranchesoftheorganisationwhohaveonlineplatformsasatestinggroundassuchto
showcaseartistsunderinnovativeVisualandAudiobasedconceptstotestthepopularityof
artistsbeforetheysignthem,wefeelthatthisisaninnovativewayofengagingwithour
audienceatthesametimeasdoingourownmarketresearchandpromotionwithoutthehard
sell.

Inessencewearearecordlabel,butwewanttobeiconicamongstasubculture,webelieve
thatwithourambition,innovativeapproachthatthisisachievable.

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2|Background

2.1Experience

Shaun
Shaunhasexperienceinmanagement,undertakingthemanagementroleindifferentprojects
andevents.HewaspreviouslyArtistManageratLiVeRecords,anindependentrecordlabel
basedinBirmingham.Thisinvolvedkeycommunicationbetweenindustryprofessionalsandthe
labelsartistsandproducers.Shauncanbeconsideredanattentivepersonwithawealthof
abilitiesrangingfromtimemanagement,mentoringandmultitaskingwhilstboastingacreative
mind.

GraduatingasaBachelorofArtsinMediaandCommunications,Shaunsmusicindustry
specialistdegreecoupledhimwithadeepunderstandingoftheoryandconceptsbutalso
practicalexperience.Duringhisfirsttwoyears,hecarriedoutdifferentproductionprojectsin
Innovation,EnterpriseandalsoMusicIndustryInnovation.Thisgavehimagoodinsightintothe
industrybutalsoenhancedhisabilitytobeinnovative,meetdeadlinesandweighoutproblems
beforeattemptingtoresolveissuesfaced..Whilstundergoinghisstudies,hemanagedthe
gamesroomofaworkingmensclub,servingdrinksandprovidingessentialcustomerservice
skillstoensurethebusinessmaintainsagoodreputation.Hewasalsoresponsiblefor
documentingthegamesbartotalincomeminusthefloatandenteringthisintospreadsheet.

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Blane
Blanehasavarietyofexperienceswithinthemediaindustry,mostnotablythroughtheCresco
SonitusMediaGroupherehehashadarolethathasbeenmultifacetedonanygivendayhe
canbeperformingtaskssuchasoperatingcamerasonset,directingvideoshootstoA&R.Blane
hasalsobeenapartofvariousstartuporganisationsundervariousrolesincludingthebe83
network.BlanehasalsoworkedforMediaGiantsITVundertheroleofassistantproducer.

OutsideofmediaBlanehasattainedvarioustransferrableskillsinmanyjobswhichrangefrom
retailwork,salesorbarwork.Nowagraduateofmediacommunications/musicindustriesitis
BlanesdesiretohelpbringanidentitytotheBirminghammediasceneandhehassethissights
onGrimefirst.

3|MissionStrategies
3.1MissionStatement
NuPlagueRecordsisanurbanfocussedrecordlabel,basedwithintheMidlands,thatstrivesto
driveanalreadypromisingsceneforwardandeventuallybuildanempirethatsparksashiftina
veryproblematicindustry.

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Withthenotionthatourcoremusicindustryisnowalargelysegregatedsectorbuiltupofmass
corporationthatseemtodemonstrateanarrowunderstandingofpopularmusicculture,weare
leftwithanabundanceoffinancehungrybusinessmenwhoseprimaryvaluehastobe
monetary.Ourmissionistocombatthis.Ourmissionistoretainculturalvalueandportray
musicasanartformandnotacommodity.Ourmissionistobringanewplaguelikewaveof
urbanmusictoaudienceswhoappreciatemusicforwhatitisandnotwhatamechanical
machinetendstoreproduce.

Werepresenttheartistsandmusiciansthatmaintainintegrity,thosewhoremainrealtothe
causeanddontwanttofallintothetrapofsigningtheirrightsaway.Individualsmoreoftenthan
notdonthaveamassivebudgetthatcompeteswiththemasseswhenapproachingmarketing,
publishing,studiotimeetc.butNuPlaguewanttochangethat.Wewillbeoperatingthesame
wayasatraditionalrecordlabelbutwithacontemporarytwistandawealthofinnovation.Acting
asaconglomerate,CrescoSonitusMediaGroupwillbeourparentcompanyaspartofour
devisedplantoexposetheindustryandbringitbacktoitsroutes.Crescoisourhomeof
resources,generatingeaseofaccesstoinhousemagazines,videoproductionteams,content
builderstonameafew.NuPlagueRecordsisthestartofrevolutionwithinalostindustry.

3.2Values
ValueStatement
NuPlagueRecordsarededicatedtothefollowingvalues

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AcommitmenttoInnovation,CreativityandExcellence

Recognisethatprofitabilityisessentialtoourfuturesuccess

Tohaveconfidenceineachother'scapabilitiesandintentions

Maintainthehigheststandardsofartists,productions,teammembersand
communities

Exceedtheexpectationsofinhousegoalsandachievements

Buildlongtermartist,producerandindustryrelationships

Leveragediversityasacompetitiveadvantage

3.3Vision
Shapingthefutureoftalentedmusicians,whilstcompetingagainstthecapitalistapproach
adoptedbymajorrecordlabelsdominatingthemusicindustryforyears.Placingartisticfreedom
anddiversityasamainfactorforthedeliveranceofhighendexposureandsuccessamongst
theNuPlagueteam.

3.4SwotAnalysis

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4|Services
Ourservicesmainlysurroundthedevelopmentofanartistbycoordinatingtheproductionof
singles,albumsetctothedistributionofsuchcontentalongsidethemarketingandpromotion.

Artist&RepertoireDepartment
OurA&Rdepartmentwillfocusheavilyonthescoutingofnewupcomingtalentwithexpression
tocurrenttrendsofthemarket.Ourteamfromthisdivisionwillalsoseektoactasaliaison
betweenartistsandtherecordlabelasaformofearlymanagementwhilstmaintainingstrong
artistdevelopment.

Marketing&PromotionsDepartment

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Thisdepartmentwillprovidesomeofthemostcreativeprocessesofthewholelabel,carryinga
finishedproductanddirectingrelevantpromotionalmaterialtotargetmarketsandfurther
marketstomaximiseexposure.

Sales&DistributionDepartment
Adrivingforceforthesuccessofanartistunderourlabel,thesalesanddistributiondepartment
areresponsibleforensuringafinishedproductisavailableacrossmultipleplatformsasa
reflectionofcurrentlisteningtrendswithinourtargetedmarketandplacingproductsinallofthe
relevantoutlets.

BusinessDevelopmentDepartment
OurBusinessdepartmentaimtomanagethebusinessaseffectivelyaspossiblewhilstin
conjuction,looktobeseekingoutnewbusinessopportunities,theconsiderationofnewmarket
mergingandcreatingandmaintainingpartnershipstohelpbuildonexistingpromotion
strategiesinplaceforourartists.Thedepartmentwillalsobereliableforgeneratingnew
sourcesofrevenue.

ConsumerInsightDepartment
Newmusicconsumptionmethodsandcustomerlisteningpatterns,ourconsumerinsights
departmentareresponsibleforconsumeranalysisinordertobetterunderstandourtarget
marketsandensuredemandsanddesiresofouraudiencesaremet.Thisdepartmentwillwork
sidebysidetothemarketingandpromotionsteamspecificallyresponsibleformarketresearch.

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LegalandBusinessAffairs
ThisdepartmentisresponsibleforallthelegalaspectsrequiredbyNuPlagueRecordsinorder
forittooperatesuccessfully.

ArtistRelationsDepartment
OurArtistRelationsdepartmentwillmaintaingoodrelationshipsbetweenartistsandthelabel
frombothabusinessperspectiveandalsofromamorepersonallevel.

5|MarketingAnalysisandSummary
5.1SecondaryMarketResearch
Independentmusichasseenachangesincetheinternetgaveconsumersoptionsonhowthey
consumedmusicinfactin2011Digitalsalesaccountedfor25.9%ofsales,comparethattothe
23.6%physicalsales.Onthemarketasawholeforthefirsttimedigitalsaleshavenow
matchedphysicalsalesForthefirsttime,theindustryderivedthesameproportionofrevenues
fromdigitalchannels(46%)asphysicalformatsales(46%)(ifpi,2015)weforecastdigitalsales
tocontinuetorise.In2014,theindustrysglobaldigitalrevenuesincreasedby6.9percentto
US$6.85billion.

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ForthefirsttimeTherecordingindustrysglobalrevenuesfor2014camefromanumberof
revenuestreams:
46%PHYSICALFORMATSALES
46%DIGITALREVENUES
6%PERFORMANCERIGHTS
2%SYNCHRONISATIONREVENUES
Therewassteepgrowthinbothrevenuesandusernumbersforsubscriptionservices,
continuedrevenuegrowthfromadsupportedservicesandstillsizableincomefromdownload
salesinmanymarkets.Globally,digitalnowaccountsfor46percentoftotalindustryglobal
revenuesandinfouroftheworld'stop10markets,digitalchannelsaccountforthemajorityof
revenues.

Wealsoknowfromresearchconductedthatconsumersarebecomingmoreandmorerelianton
mobiledevicestoconsumemedia52%of1624yearoldslistenedtomusicontheirmobile,with
32%statingtheywatchmusicvideosontheirmobile(Harris,2011)Asourdemographicis
aroundthisagegroup(Seeconsumerprofile)webelievethatlogicallyourbestavenueto
marketwillbedigitally.Thisiswhywehavecomeupwithauniquemarketingstrategyinwhich
wewilluseYouTubetogenerateanaudience(SeeTheRapLeague.)Socialmediawillalsobe
astrongareaforpromotionas37%ofonlineparticipantsstatedthattheystreamedmusic
throughsocialnetworksandalso58%useYouTubetodothis.

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5.2PrimaryMarketResearch
SurveyResults
SurveyconductedbetweenFebruary4th2016March4th2016andsharedamongsttargeted
usersthatengagedwithpopularUrbannetworkssuchasSBTV,GRMDaily,LinkUpTV,P110
andJDZMediaviaFacebookandTwitter.

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SurveyAnalysis
ThesurveyresultssuggestthatMalesengagewithurbanmusicslightlymorethanfemales
however,contextually,femalesmayhavefoundlessinterestinconductingasurveyregarding
therecordlabel.

Themostengagedagedemographicwere18to24yearoldswith13to17yearoldsonlyless
by18%.Fromthis,wecanassumethatourtargetaudiencemayfallwithintheseage
demographicsprimarilywiththeconsiderationofolderaudienceslessprominentbutstill
apparent.

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Surprisingly,whenaskedwhatsubgenreappealstotheparticipantsmost,Grimehada100%
successionwithRapalsoreceivingahighnumberofvotes.Thisprovidesuswithaninsighton
thespecificstylesofurbanmusicwemightconsidermorepopularamongstouraudience.

94%ofparticipantsconsumemusicviasmartphonesthuspresentinguswithaclear
understandingofwhathardware/softwareweneedtoengagewith.Anappcouldprove
essentialfortheproliferationofourlabel.

Overhalfofpeoplesurveyedconsumelivemusicatleasttwicemonth,whichhighlightsanarea
thatmaybeadvantageousinorderforNuPlaguetocapitalise.

AlthoughourresultssuggestthatYouTubeandSocialMediaisthemostvotedplacefor
audiencestoconsumenewmusic,wewanttodrivetraffictoourwebsiteandconvertthattraffic
intocommoditythroughtheuseofadvertisingfromthirdpartycompanies.Withthisbeingsaid,
wewillstilloptimiseourYouTubechannelandSocialMediaprofilestocontinuouslygeneratea
wideramountofexposurethatwillhopefullyresultinmoreinterestforthelabel.

With94%ofparticipantsshowinganawarenessoftheMidlandsGrimescene,itdemonstratesa
potentialgapinthemarketforalabeltooperateservicesprovidinghelpandexposurefora
strongandpromisingMidlandsscene.

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Thefinalquestionwasregardingtheoveralldesignofourbrandingandreceivedanaverage
ratingof4.24outof5.

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5.3CompetitorAnalysis
CompetitorName

Strengths

Weaknesses

Differences

HowNuPlague
canbetterthis?

JaguarRecords
(
http://www.jaguarre
cords.co.uk/
)

Teamofsongwriters

Teamofproducers

Stronglistofartists

BasedinLondon

Notalotofcontent
onthewebsite

WeakSocialMedia
Profiles

WeakBranding

Theytargetnational
artists

Theyoffer360deals

Theywantartiststo
conformtoindustry
trends

Createstronger
branding

Developoursocial
mediaprofiles
more

Avoidstripping
artistsofcreative
freedomforreturn
ofcommerce

BadTasteRecords
(
http://badtasterecor
ds.co.uk/
)

Strongand
consistentbranding

Contentrichwebsite

Merchandise

Goodindustry
contacts(1xtra,
RinseFMetc)

Strongsocialmedia
profiles

Awealthofreleases

Lackofdiversity
withintheirartists

Notclearwhatthey
offerasalabel

Nophysicalmusic
products

Wefocusona
specificregionofthe
UK

Wehaveinhouse
departments
amongstabigger
infrastructurethat
reducecosts

Focussingonone
regionallowsusto
gainlocalrespect
andculturalvalue

Makeindustry
connections
globally

Driveattentionto
socialmedia
profilesthroughPR
forastronger
socialmedia
presence

Hyperdub
(
http://www.hyperdu
b.net/
)

Wealthofartists

Diversitywithartist
choice

Teamofproducers

TeamofDJs

Boringwebsite

Inconsistent
branding

Lackofcontent

Wehaveaclear
missionstatement
availableto
audiences

Wearemore
focussedandnarrow
inwhatweare
lookingfor

Aninteractive
websiterichin
content

Developstronger
branding

Generatecontent
throughtherap
league

WaxmanMusic
(
http://www.waxman
music.co.uk/
)

Consistentbranding

Clearaimsand
objectives

Lackofindustry
contacts

Notmuchcontent

Lackofartists

Nospecificlocation
whereaswefocuson
Midlands

Theyfocuson
distribution,wefocus
ondevelopmentof
thescene

Gainstrong
industrycontacts
vianetworkingetc

Workwithawealth
oflocalartists

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5.4TargetMarket/ConsumerProfile
AgeGroup:1628
Althoughalotofpeoplewouldsuggestwenarrowourdemographic,itisdifficulttodothisWhen
itcomestoprofilingagrimeaudienceitisparticularlydifficultfortwodistinctreasons:a)Itsage,
Grimeisascenethathaslongbeenonthemarginsofthemainstreamyetithashadnotable
flirtationswiththepopularmusicchartsintheUKandthatwasearlyinthe2000sandmost
recentlyaroundthe2013itstartedtomakeacomebackamongstmoremainstreamlisteners,
asnewscenesaremostcommonlyassociatedwithyouthculturethisgivesustwoagegroups
theearlieraudiencecouldrangefrom2536,thesefiguresaremadefromthepopular
assumptionthatthefirstGrimemusictochartpopularlyaround20022004OiMoreFireCrew,
ILoveUDizzeeRascalandWileysWotDoUCallItandtheageofitsaudiencearoundthat
timebeing1524.Recententriesintothemainstreamchartscomingaround2013presenttime
sothisgivesusademographicofroughly1514.Theotherissuewemayhaveis
geographicallypinpointingamarket,intheearlieryearsthiswouldhavebeenmostlyinLondon
butasthemarkethasgrewconsiderablywecantreallypickoutoneareawewouldmarket
specificallyasgrimehasnowbecomemoretranslocalmeaningthatacrossmanylocations
peoplesharesimilarideologies.

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Ethncity:
WewillnotbeaimingatoneethnicityspecificallyasGrimeandUrbanmusicisnotspecificto
oneethnicity,atonepointthiswasnotthecase,butasGrimebecamemorepopulartheculture
grewintoavenuesthatitwasntreachingthefirsttimearoundandaswelearnedfromHipHop
(alargeportionoftheiraudienceiswhiteandmiddleclass)andsimilarwithRocknRollthat
musicofblackoriginisntspecifictowhoconsumesit.

Wheredoestheaudienceconsumetheirmusic?
Alargeportionofouraudienceconsumestheirmusicthroughmobiledevices.Weknowfrom
researchconductedthatconsumersarebecomingmoreandmorereliantonmobiledevicesto
consumemedia52%of1624yearoldslistenedtomusicontheirmobile,with32%statingthey
watchmusicvideosontheirmobile(Harris,2011)

GeographicalPlacement
OurmarketisinitiallyMidlandsbasedduetothenatureoftheorganisationaimingtobuildan
iconicmidlandsbasedrecordlabelhoweverassomeofourartistshavealready

6|MarketingStrategy
6.1BrandIdentityLogo

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6.2WebsitePrototype

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6.3SocialMedia

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Twitter@NuPlague

FacebookNuPlagueRecords

6.4BusinessCardPrototype

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6.5Networking

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WewillattendvariousnetworkingeventsthroughouttheUKbutpredominantlyintheWest
Midlandsarea.ThisisnotjusttopromoteNuPlagueRecordsbutalsotoapproachpotential
connectionsandpartnershipstomakegoodindustrycontactsthatmayprovetobebeneficialfor
futureprojectsortheexpansionofthecompany.Wealsoplantoattend/hostworkshopsin
collegesandschoolstonetworkwithyoungergenerationswithaimstoinspirethembutalso
gainvaluablefeedbackorgeneratefurtherideasexplored.Thisinturncouldbereturnedas
workexperienceopportunitiesforthoseinvolved.

*AnExamplescheduleofsomeofthenetworkingeventswemayattend*

NetworkingEvent

Location

Date

BirminghamMusicNetwork
Meeting

MillenniumPoint,
BirminghamB47XG

31stMarch2016@4PM

XpoNorth

EdenCourtTheatre,
InvernessIV35SA

8thJune2016@9AM

MusicFutures

SageGateshead,Gateshead 10thJuly2016@10PM
NE82JR

TheGreatEscapeDelegate VariousVenuesinBrighton
Pass

19thMay2016@9AM

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7|OperationalIssues
7.1Location
Idealy,wewouldhaveanofficebasedintheculturalquarterofBirmingham
(SeeFig.D)
and
havingconductedresearch,wecouldexpecttopaybetween275400permonth.Onein
particularwouldbeaspaceinTheCustardFactory.
(SeeFig.E)
Itboastsaverycentrallocation
intheculturalepicentreofBirminghamwithnearbyplacesforsocialgatheringorinformal
meetingssuchasrestaurantsetcandhasallthefacilitiesrequiredsuchasonsitereception
staff,conferencerooms,loungesandmoreimportantlymodernfurnishingstohelpcoupleour
cleanandmodernbranding.Itiswithinwalkingdistanceofpublictransportsuchastrainsand
metrosandisoverallaveryideallocationforNuPlaguetooperatefrom.

Fig.DGoogleMapsLocationofTheCustardFactory,Birmingham

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Fig.EImagesofsomeoftheofficespaceavailableatTheCustardFactory

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7.2FutureInvestments
Webelievethatafterourfirst812monthsthatwewillbeinastrongpositiontoopenanapp
whichwillgivetheuseruniqueopportunitiessuchasfirstlookatcontent,promotionaloffers
onlyusersoftheappwillgettheoptionof.In2015anestimated41Millionpeoplepaidfor
musicsubscriptionservicesin2014,fivetimesthelevelofeightmillionpeoplein2010(IFPI,
2015).Itseemslogicallythatanappwouldaofferaregularrevenuestreamandwecould
provideuserswithauniqueservicethatnowhereelsewillbeoffering.(seeapp)Subscription
services,partofanincreasinglydiversemixofindustryrevenuestreams,aregoingfrom
strengthtostrength.Revenuesfrommusicsubscriptionservicesincludingfreetoconsumer
andpaidfortiersgrewby39.0percentin2014andgrowingconsistentlyacrossallmajor
markets(IFPI,2015).Theoptiontoadvertisethroughtheappisalsosomethingthatcouldbe
potentiallyviablewithRevenuesfromadvertisingsupportedstreamingservices,suchas
YouTubeandVevo,arealsogrowingup38.6percentin2014.(IFPI,2015)

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8|Finance
8.1CashFlowandStartUp

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8.3BusinessModelCanvas

Forlargerversionpleaseseeattacheddocumentsseparatetobusinessplan

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