| INVESTORS |
Business Plan
COMPANY DESCRIPTION
Introduction
D-Town Records has formed an experienced, award-winning management team. As artists, producers and
executives, projects produced by these individuals have topped Billboard's Charts, earned nominations for
Grammy while selling over 11million copies. The years of experience maintained in both the business and
creative sides of D-Town Records company operations will enable D-Town Records to generate profitable
revenue immediately.
D-Town Records maintains strong affiliations in the music industry through relationships with industry legends
such as Marian Records, Bad Boy South, Block Entertainment, DaReal Home Team, The GTE Group and
Bootzilla Production (Bootsy Collins) and has been offered national distribution with Marian Distribution Company
(a distribution arm of Sony). This provides D-Town Records the opportunity to generate revenue from the world's
largest music markets.
D-Town Records will distinguish itself from other independent D-Town Records companies through its
marketing and promotional plan. Intense, calculated and relentless promotional campaigns will enable D-Town
Records to earn massive revenues through the growing popularity of digital downloads, as well as, traditional
full-length CD albums.
D-Town Records will utilize the success of its pre-Recorded music to develop profit centers in independent
distribution, merchandise and concert promotion.
D-Town Records is truly an international company with the Tokyo office opening in 2007. The Tokyo office in ran
by CEO Nate Edwards half brother Morton (Sputt) Smith. Morton Smith left Cincinnati, Ohio in 1980 to tour Japan
with a number of bands including the Grammy Award winning group The Deele. He has lived in Tokyo for 28
years and well connected in the Asian music market. Mike Griffie, whom toured in Japan with Morton Smith Is
running the Cincinnati office to maximize the Midwest exposure, D-Town Records is also in negotiations with
Miss Jasmine Gordy, the granddaughter of music great Barry Gordy to bring them in under DTR to give us the
west coast market.
COMPANY DESCRIPTION
Introduction
D-Town Records has formed an experienced, award-winning management team. As artists, producers and
executives, projects produced by these individuals have topped Billboard's Charts, earned nominations for
Grammy while selling over 11million copies. The years of experience maintained in both the business and
creative sides of D-Town Records company operations will enable D-Town Records to generate profitable
revenue immediately.
D-Town Records maintains strong affiliations in the music industry through relationships with industry legends
such as Marian Records, Bad Boy South, Block Entertainment, DaReal Home Team, The GTE Group and
Bootzilla Production (Bootsy Collins) and has been offered national distribution with Marian Distribution Company
(a distribution arm of Sony). This provides D-Town Records the opportunity to generate revenue from the world's
largest music markets.
D-Town Records will distinguish itself from other independent D-Town Records companies through its
marketing and promotional plan. Intense, calculated and relentless promotional campaigns will enable D-Town
Records to earn massive revenues through the growing popularity of digital downloads, as well as, traditional
full-length CD albums.
D-Town Records will utilize the success of its pre-Recorded music to develop profit centers in independent
distribution, merchandise and concert promotion.
D-Town Records is truly an international company with the Tokyo office opening in 2007. The Tokyo office in ran
by CEO Nate Edwards half brother Morton (Sputt) Smith. Morton Smith left Cincinnati, Ohio in 1980 to tour Japan
with a number of bands including the Grammy Award winning group The Deele. He has lived in Tokyo for 28
years and well connected in the Asian music market. Mike Griffie, whom toured in Japan with Morton Smith Is
running the Cincinnati office to maximize the Midwest exposure, D-Town Records is also in negotiations with
Miss Jasmine Gordy, the granddaughter of music great Barry Gordy to bring them in under DTR to give us the
west coast market.
| D-TOWN RECORDS/EIEG GROUP Business Plan |
Background: EIEG, LLC (Edwards Independent Entertainment Group) was conceptualized and created in 2003, entirely
by Nate Edwards. EIEG, LLC was originally developed as a tier 2 supplier to General Motors CCRW (Convey Controls
Robotics and Welding) group in Detroit Michigan Central Office. EIEG covers GM manufacturing plant throughout the US,
Canada and Mexico offering project management for the design, budgeting and implementation of manufacturing equipment for
current and new vehicles. D-Town Records was originally developed as an artist management and music promotions company as
our primary focus. As D-Town Records started to move forward in the artist management arena it became apparent to us that
we needed additional strength in other areas of the music industry, to be able to attract clients that were experienced and
professional enough to provide D-Town Records with considerable management and promotion commissions. Since then
D-Town Records has continued to experience a constant change and has devolved into NateE Entertainment and EIEG
Publishing, and become a multi-faceted global music entertainment company. Through many years of networking and adding
team members with continual interaction and steady involvement in the music entertainment industry, D-Town Records has now
become a very well respected Indie Label in the music industry. The new entertainment division of Eieg brought new business to
D-Town Records with the addition of high caliber music industry personnel and artists who began to take notice of who
D-Town Records is and where our vision will eventually lead us. D-Town Records has recruited and aligned itself with some of
the best music industry professionals with proven track records that the industry has to offer. We have always had the music
artist in mind as the core focus of our business. D-Town Records is a very artist friendly music entertainment company and will
always remain so. Over two years of extensive research on the strengths and weaknesses of the Major Labels and the
entertainment industry as a whole, have helped us formulate a very specific strategy to help D-Town Records, gain and maintain
a major market share of these industries as a whole. D-Town Records philosophy is to take old world music industry mentality
and infuse it with new world technology thus granting D-Town Records a competitive edge. D-Town Records philosophy can be
easily be understood and embraced by the recording industry and the entertainment industry, especially after the music piracy
scandal, because the labels now see the benefit of hybrid entertainment companies like D-Town Records. From the very
beginning of D-Town Records, Nate Edwards has maintained the overall vision of goals and strategies to make D-Town Records
a global leader in the independent music and entertainment industries.
by Nate Edwards. EIEG, LLC was originally developed as a tier 2 supplier to General Motors CCRW (Convey Controls
Robotics and Welding) group in Detroit Michigan Central Office. EIEG covers GM manufacturing plant throughout the US,
Canada and Mexico offering project management for the design, budgeting and implementation of manufacturing equipment for
current and new vehicles. D-Town Records was originally developed as an artist management and music promotions company as
our primary focus. As D-Town Records started to move forward in the artist management arena it became apparent to us that
we needed additional strength in other areas of the music industry, to be able to attract clients that were experienced and
professional enough to provide D-Town Records with considerable management and promotion commissions. Since then
D-Town Records has continued to experience a constant change and has devolved into NateE Entertainment and EIEG
Publishing, and become a multi-faceted global music entertainment company. Through many years of networking and adding
team members with continual interaction and steady involvement in the music entertainment industry, D-Town Records has now
become a very well respected Indie Label in the music industry. The new entertainment division of Eieg brought new business to
D-Town Records with the addition of high caliber music industry personnel and artists who began to take notice of who
D-Town Records is and where our vision will eventually lead us. D-Town Records has recruited and aligned itself with some of
the best music industry professionals with proven track records that the industry has to offer. We have always had the music
artist in mind as the core focus of our business. D-Town Records is a very artist friendly music entertainment company and will
always remain so. Over two years of extensive research on the strengths and weaknesses of the Major Labels and the
entertainment industry as a whole, have helped us formulate a very specific strategy to help D-Town Records, gain and maintain
a major market share of these industries as a whole. D-Town Records philosophy is to take old world music industry mentality
and infuse it with new world technology thus granting D-Town Records a competitive edge. D-Town Records philosophy can be
easily be understood and embraced by the recording industry and the entertainment industry, especially after the music piracy
scandal, because the labels now see the benefit of hybrid entertainment companies like D-Town Records. From the very
beginning of D-Town Records, Nate Edwards has maintained the overall vision of goals and strategies to make D-Town Records
a global leader in the independent music and entertainment industries.
Nate Edwards
CEO/President,
As Chairman, CEO and founder of EIEG LLC. Mr. Edwards is responsible for the management and strategic direction of the company. Under this leadership,
EIEG has experienced tremendous growth from its startup in building the strategic alliances and partnerships to ensure success. These alliances and
partnerships consist of critical musical components as well as major distribution channels. It is through these partnerships that the company has been
positioned to be a music industry leader in independent label arena.
A visionary in the field of business strategies, Mr. Edwards has positioned the company to successfully deploy its artist in both the normal distribution and in
the digital world. For seven years, Nate has overseen millions of dollars in manufacturing and installation of equipment for General Motors CCRW Group, one
of the world's largest automobile manufacturers. Prior to founding EIEG LLC in 2003, Mr. Edwards was an electrical project engineer and responsible for
multiple major projects for the Swedish company SANDVIC. His responsibilities included functioning as a Controls Project design Engineer, system integrator,
solving complex engineering problems, and taking projects from concept to final acceptance. He coordinated needed support and resources to achieve project
objective(s), monitored project progresses and developed strategies for electrical contractors to meet design targets. This included developing and implementing
electrical bid specifications, designing Electrical Controls, and Panel Designs, PLC software development, and systems integration for various Material
Handling systems.
Mr. Edwards also brings over ten years experience in the music business. He is a former musician who started playing the guitar at the age of 10. However, he
stepped away from music at the age of 21. He and his brother, Morton Smith, formed several bands who were good, but young. However, they were good
enough for people to pay them. On Sundays, they would play in the church and on weekends they would play in clubs. Their parents had no idea they were
hitting the clubs. All they new was they were good and everyone told them how good they were. They caught the eye of some big dogs, including Roger
Troutman of Zapp, and Bootsy Collins.
Steven ‘Leftfield’ Franklin - President
As President of D-Town Records Steven Franklin aka ‘Leftfield’ will work along aside Nate Edwards and Daryl Ethley to provide quality assurance for each
release as well as oversee all day to day operations. Leftfield’s business background is based on over 8 years of experience as a former Business Implementation
Consultant, for Oracle Communications Global Business Unit. He is responsible for defining business processes, workflow management, and system analysis
and network configuration. As a Project Manager for Cognizant Technology Solution, Mr. Franklin is responsible for data gathering, process documentation,
and project management. Leftfield (as he prefer to be called) a native of Harlem N.Y. started his career in music as an artist previously signed to GR
Productions (Gene Griffin/Teddy Riley). Leftfield has also performed and opened for major artist such as Notorious B.I.G, Jungle Brothers, Black Sheep,
DaBrat, Zhane, and Ill Al Scratch. He has also had a cameo appearance in the Halle Berry and Tommy Davidson film ‘Strickly Business’.
Darryl Ethley
CFO/Partner
As President and CFO of D-Town Records, Mr. Ethley is responsible for overseeing all management operations from accounting, treasury, negotiations of all
activities primarily concentrating on the promotion and marketing aspect of the company. He’s involved in all activities from inception to completion. He
brings a wealth of experience in sales, marketing, advertising, and people management with over 20 years of experience with Frito-Lay. Mr. Ethley has
performed as a Region Sales Manager with responsibility of managing over a hundred million dollars in sales per year while handling various roles such as
institutionalizing “Regional Programming”, developing specific “Grass Roots Marketing” plans, developing specific communication processes for internal and
external parties. He’s proven to be very proficient in driving people development and performance capabilities by utilizing fair and consistent performance
management measurement systems to address performance issues.
Mr. Ethley is primed for future expansion roles in D-Town Records with the capability to create, manage and oversee specific departments within the
company. Mr. Ethley will be responsible for conceiving, designing, and implementing strategies and transitions that fortify the competitive posture and
enhance the value of these business units with D-Town Records. He will reach out to various businesses and executive Board of Directors of other related
companies to enhance investor relations and other activities that will benefit D-Town Records’ market share.
Anthony Paul
President A&R/Partner
Mr. Paul is responsible for all details arising from the creative process of record production. His primary duties are to oversee the flow of contracts, budgets,
studio bookings, master deliveries, invoice statements, and compliance with union regulation, etc. His position involves the functions and requirements of
record company personnel in accounting, legal, marketing, and business affairs, etc. With those of staff, artist, producers, studios, and others involved in the
production of an album. Mr. Paul’s role also involves checking out new talent, signing artist to the company, finding songs for artist signed to the company,
matching producers with artists, assuming direct responsibility for all the artists, producers on the label’s roster. He motivates other departments of the
company to aggressively market and promote product by those artists. Mr. Paul’s knowledge of the business far exceeds that of 20 + years in the music
industry and even after 20 years “quality control” is still PRIORITY ONE!
MARKETING
The GTE Group is a full-service marketing and promotion company, the result of a joint merger between Gravity Entertainment, and The Thrasher
Entertainment Group. Their recent projects included: Urban Box Office – CHOSEN FEW: El Documental CD/DVD showcasing the emerging music genre of
Reggaeton Music, a project that topped of the Latin, Tropical music charts, and climbed in the Billboard Top 200 LP Chart. Launched the debut CD of former
AMERICAN IDOL semi-finalist LaToya London, and the new EARTH WIND & FIRE album “ILLUMINATION”.
The principals are:
WAYMAN JONES, a former senior promotion and marketing executive with major record labels such as Warner Bros, Dreamworks Records,
Motown, Mercury/Def Jam, and Virgin Records. His tenure at these companies resulted in consistent chart topping airplay resulting in top ranked sales
achievements. Warner Bros. Jaheim (3.8 Mil. Units), Lil Scrappy & Trillville (900,000 units) Boney James (800,000 units), Dreamworks -Ron Isley (2.2.
Million), Floetry (750,000), David Hollister (725,000), Motown -Temptations (1.8 Mil.), Brian McKnight 3 albums 6 million, Mercury/Def Jam - Jay –Z (9
mil.) 3 records, LL Cool J (2.5 mil.), DMX 3 ALBUMS (5 mil.), Nutty Professor (2.0 Mil.0, Redman (700,000), Method man (625,000), Foxy Brown
(615,000) 2 Albums, TONY, TONI, TONE 5 Albums (4.7 Million), Lucy Pearl (800,000), Vanessa Williams 2 albums (1.7 Million). Virgin Records (Janet
Jackson) (11 mil.) His vast sales, marketing, management knowledge, professional experience and relationships are an asset to an organization’s growth and
success. Developed promotion/ marketing, and partnership strategies with Fortune 500 companies. Organized hired and trained diverse national marketing
teams. Successfully developed sponsorship and partnership ventures for employers and clients. As an entrepreneur he has managed marketing aspects for
numerous well-known entertainment clients.
ERIC THRASHER, worked in an executive capacity for over 10 years with majors and start-ups. His track record includes :Motown, Warner
Reprise, Virgin and Perspective Records then ventured out on his own as a consultant for the last six years for Dreamworks Records, Trauma Records, Warner
Bros. Records among others.
He developed promotions and marketing campaigns for OZ HBO Soundtrack, Johnny Gill's Motown Records Double Platinum CD, BOYZ II MEN (4x
Platinum LP's), Smokey Robinson - Platinum Grammy Winning (Just To See Her) CD, Lionel Richie’s(5x Platinum Dancing On The Ceiling CD), Stevie
Wonders (Multi-Platnium CD Characters) (Reprise Records -Take 6 Platinum, Zapp & Roger, Platinum, Virgin Records Shaggy Multi-Platinum, Virgin
Records After 7 Platinum. Perspective Records Mint Condition Platinum,) among others.
D-TOWN RECORDS/EIEG GROUP (DTR) has now assembled through various associates a team to bring to realization a
tremendous business opportunity. They have long formulated the idea of starting a formidable entertainment company and it’s now coming to fruition.
Together, their vision and strategic partnership is resulting in an alliance whose focus is exclusively on establishing and building a manageable roster of
entertainers. Their desire for new levels of achievement and reward will spearhead (DTR) to become a leading independent record label with an incomparable
marketing arm. Expecting to concentrate on a tremendous growth opportunity, they are dedicated and determined to make the start-up a profitable entity.
The recruited, experienced and expert team’s mandate is to build the company into a serious competitor in entertainment. Among them is a production and
artistic network of hit makers comprising of a highly qualified group of hip-hop stars, producers, writers, and musicians who have generated Grammy and
American Music awards, plus contenders on the rise.
Every company is driven by an underlying philosophy; the vision is to put hot, quality product in the marketplace. That ingredient is among the guiding
principles that will allow D-TOWN RECORDS/EIEG GROUP to succeed, and be distinguished from the competition.
The partners of the entertainment entity have been direct participants in the Pop, R&B, hip-hop / rap music industry for years. The wealth of resources and
relationships maintained by the “well connected” crew will serve as a source of life for this company.
Contributing Team Members
The company utilizes contracted workers to fulfill certain roles in its operations and will also hire other staff with specific functional skills required of future
demands.
Radio Marketing Team
Jerry Boulding has programmed 16 radio stations in markets including New York, Chicago, San Francisco, Washington DC, Detroit, Baltimore, Richmond
and Rochester. He developed Heart & Soul, the first urban format for satellite delivery before channeling his vast radio experience on the label side as head of
the Black division of MCA Records. He later co-founded two successful urban radio trade publications: Black Radio Exclusive and Urban Network Magazine,
later returning to network syndication as Senior Vice President, Entertainment Programming for American Urban Radio Networks. Boulding, currently serves
as Urban Editor for Allaccess.com, a radio trade Web site; he also heads Jerry Boulding & Co. Broadcast Consultants specializing in network syndication and
Arbitron diary analysis for major market stations including WBLS-FM (New York) and KJLH-FM (Los Angeles) and is president of The Boulding Group, an
artist management firm.
Maggie Boulding has over twelve years of experience managing music merchandising, marketing, and national promotions for leading retailers including
Barnes & Noble.com, Columbia House and Sam Goody/Suncoast Motion Picture Company. She also brings a solid entertainment, technology, and consumer
public relations background gained at agencies including WestWayne Inc., Alexander Ogilvy, Fleishman-Hillard, and Giles Communications where she managed
artist endorsements for Yamaha Pro Audio and Keyboard, and also launched The Mr. Holland’s Opus Foundation with Oscar-winning actor, Richard
Dreyfuss. She currently serves as vice president of The Boulding Group, and provides creative and production services to Jerry Boulding & Co. broadcast
clients, most DTRently as Head Writer/Producer of American Idol’s Randy Jackson’s Hit List for Westwood One Radio Networks.
I-Ware CD™ technology -
A Portable Media Operating System™ that provides a robust set of features and integrates multiple technologies to allow flexible control over the interface,
features, functionality and content of marketing and promotional material in real time. Our PMOS™ allows our clients to create a Personal Internet Business
Channel™ that helps to protect their customers from the pitfalls of the Internet such as viruses, spy-ware, data mining and ad-ware, provides faster data access
than a web site and does so without installing or updating anything on the viewers computer.
This is the first and only Portable Media Operating System™ available on the market today. I-Ware will revolutionize the entertainment industry and provide
one of the most unique and innovative ways to advertise and market products and services. It's called i-Ware CD™ technology and has been dubbed by Dave
Glassel, owner of CedarCide Industries, Inc., as "The most powerful form of marketing material since the invention of television!" This Portable Media
Operating System™ (PMOS™) is a patent protected technology that can be utilized from any form of portable media such as CD or DVD as well as
Flash/USB drives.
DaReal Hometeam Street Marketing Team,
DRH offers a full range of marketing and promotion services and solutions. Each promotional or marketing project is personalized to meet our client's specific
need and get the maximum results for the budget. Their strategic relationships within the Atlanta Entertainment Community are invaluable. DRH has
successfully developed and executed marketing and promotion campaigns for many National Rap Acts: This list includes, but is not limited to the following:
Retail
Billy Bowles – Founder of F.O.K.K.U.S Media Group LLC is 20-year veteran specializing in retail management. F.O.K.K.U.S abbreviated for Focus,
Opportunities, Kreating, Knowledge, Universal, Success, was created to help bridge the gap between retail, consumer and DTRord Company.
Billy Bowles and FMG will use its expertise in retail to strategically plan
• Artist in store appearances
• Retail presentations for Major and Independent retail chains (Mom/Pop)
• Secure product visibility
Using a 20-year business relationship with retail outlets in virtually all major markets, FMG will ensure consumer awareness while securing a relationship
between product and retail.
FMG marketing division was established to help bridge the gap between in adverting music releases at retail/lifestyle marketing. With over 20 years of music
retail business, FMG will use these relationships to gain visibility in major chains, independent (mom/pop shops), lifestyle accounts, and spread the word
amongst industry tastemakers in the key markets. We will also provide new media/digital services (i-Tunes, ringtones, downloads, myspace, online marketing,
website design, etc.) for artist/labels.
Bootzilla Productions
CEO William "Bootsy" Collins and CEO Nate Edwards have the same mission when it comes to grooming young talent and up coming Stars. We at
DTR/DTR/K2K envision developing a music roster that effectively gives new promise to the market and strategically captivates the music industry. D-TOWN
RECORDS/DTR GROUP (DTR) is empowered by great music and marketing strategies that have been our signature in the industry since conception. We have
an opportunity to reach critical new markets through unique business relationships,” says Mr. Edwards”, one being Bootzilla Productions.
One of the projects includes a museum for Kings Records in honor of long time R&B legend James Brown and the city of Cincinnati has signaled its support
for the museum”. Mr. Collins’ envisions an interactive experience where young people can learn about music, production, live instrumentation, participate in
workshops, and perform on live shows. This is one of the missions that DTR/D-Town Records of Dallas, Texas took on for Bad Boy South/Block
Entertainment during the summer of 2006. DTR/D-Town Records mentored artist from all over Texas, preparing them for the “Hood 2 Hood Talent Search
Showcase” (sponsored by: Boyz N Da Hood) teaching them how to put together Press kits, Demo Packages, and develop their stage presence.
Introduction
The Music Industry
The music industry comprises of artists, producers, distributors, retailers, manufacturers, engineers, record labels, record studios, publishers, marketing
agencies and songwriters. It is a business driven by the artists signed under contract by a record company to produce a certain number of singles and albums.
The record company may pay for the album to be produced, manufactured and marketed throughout the world. The revenue received from the sales of the
album or single go to cover the cost of producing the CD. The product portfolio has to be managed very carefully to ensure that the cash flowing into the
business is sufficient to maintain all its liabilities.
A look at any website of the main record companies will highlight the fact that each company actually owns dozens of other companies that it may have
bought or set up. The market is therefore dominated by 4 major corporations who account for 75% of the total sales of recorded music in the world but within
those four corporations are dozens of other labels and companies that are well known in their own right and may have been acquired or set up by their parent
company over the years. Most of today’s records on major labels are on imprints belonging to independent record companies. These partnerships are among
the top moneymakers in the industry. This growing trend is a far cry from when artists used to be signed directly to a major company.
Independent Labels
In growing a music catalog it is imperative to compile a reliable group of artists, who are dedicated to producing quality music. This enables the company to
steadily increase the number of unit sales for a particular artist over a two to three album process.
Major recording companies frequently invest in independent labels when confidence in the company's roster and management exists. In these strategic alliances
and joint ventures, the larger company may invest money to: a) assist in completing album projects, b) manufacture compact discs and tapes and c) assist with
marketing and promotion plans.
Although independent distribution channels (Johnson, Wallace and Cordoba) exist, many independent labels choose to utilize the independent distribution
services offered by major labels. This is an attractive choice for independents, due to the breadth and reach of the distribution in addition to the clout which the
majors possess with retailers. In these situations, independents can "piggy back" on the reputation of the major.
Several UK companies that started as independent firms and joined forces with a major include Clover, Maid and Roots. Similar success stories are documented
with U.S. based companies such as: Appleton, Chatham and Mill Point. From the outset, these companies demonstrated creative leadership, quality product
and determination.
Industry Sales Volume in the U.S.
The U.S. record business, which grossed two billion dollars in 1970, exploded to four billion dollars in sales by the end of 1978, with a unit volume of 726
million records and digital units sold. Sales fell sharply over the course of the next six years, mainly due to the declining American economy and the popularity
of home cassette taping. It wasn't until 1988, when unit volumes reached 726 million that the industry exceeded the pinnacle reached ten years ago. Recent
calculations of industry figures indicate more than 10 billion dollars in sales and a volume of more than 955 million units.
MARKET ANALYSIS
The recording industry is one of the great global industries of today. It is one of the leading creative industries that increasingly drive the development of
segments of the economy; and it is finding its place in the era of digital technologies and electronic commerce.
The industry's success is primarily as an investor in human creativity. Record producers worldwide, independent and multi-national, invest billions of dollars in
this entertainment sector. They support the livelihoods of a diverse array of artists across the world. Those that are commercially successful have the chance of
reaching out to a national and international music-loving public.
The business is a talent-driven, creative industry, and as such it is totally the essential building block of the music business, allowing artists, songwriters and
record companies to invest their revenues and their livelihoods in the creative process with the potential for tremendous rewards.
According to figures compiled by PricewaterhouseCoopers LLP, the market for recorded music in the United States --- is reaching $15 billion. Globally the
total is $50 Billion.
Current marketplace trends indicate: The Independent record segment is growing faster and producing more hit records than the major labels. But without solid
financial backing and strategic alliances, success can elude them. Consumers are becoming more technologically savvy, and the ability to instantly link to music
portals is expanding. Internet-based retail stores are now a reliable and complete destination that promises the highest quality in music downloads. Many
companies are utilizing music sites; they try new methods, products and structures to better meet buyers needs. The goal is to implement innovative ways to
establish our presence to this crucial consumer group.
Our position in the Marketplace
• Tailored Portal. Our website offers ease of navigation and has streamlined access to information. We will keep users up-to-date on songs and topics of
interest relating to the artist. Site users can correspond with their favorite artist via the website.
• New product management tools. To facilitate our launch of new music, we provide a space by which to communicate new product news, build fan base,
and solicit consumer feedback.
The Opportunity
D-TOWN RECORDS/EIEG GROUP is well positioned to take advantage of significant opportunities available through its strategic partners. The commitment
is to deliver the best music to its consumers. The company has strategic and developing partnerships and alliances with proven companies, with joint ventures
that would result in artist collaborations, and concert tours. These relationships allow us to reinvest in the company’s rapidly expanding consumer base with
new product and artists.
Marketing Objectives
The current marketing objectives is to market the individual talents, building from the streets to the mainstream public, to the boardroom's of the multi-billion
dollar commercial radio conglomerates. The goal of the company’s marketing is to create several channels of distributions. The company’s current industry
focus is on the urban hip-hop market and to eventually include all segments of the entertainment industry.
The source of revenue will include, a record label with a production studio, and future production and distribution of its CD/DVD products. Over the years, the
combined efforts of the team have made a loyal contact base that will only expand in years to come. Once operating on all cylinders, the company will step up
an aggressive marketing campaign to include; TV Ads, Newspaper, Radio, and trade magazine Advertising.
Growth Opportunities Beyond the U.S
With initial success in the U.S., we would expand internationally. Our extraordinary opportunities for expansion will also come from other areas such as:
Caribbean, South America, Europe, and Asia.
D-TOWN RECORDS/EIEG GROUP within a Competitive Landscape
Despite competition from a number of Independent record companies whose quality of product, expertise, and necessary resources remains limited. (DTR) has
an edge; making the most of present resources, we have made some key gains in this competitive landscape. With success in securing airplay at major radio
outlets in the nation, our artists will be in position to be heard by millions. In the fast-selling pop-hip-hop consumer group, they will be geared to be dominant
artists in the genre.
Marketing and Distribution
The efficient and effective distribution of our music is essential for market penetration, as is a quality impacting music video, and utilization of all media
channels for the promotion of the music to ensure airplay of their music and reach the target market. We have already secured major download sites for Internet
distribution of our product, and secured a mutually beneficial alliance with a major distributor, Marian Records, Sony/Big Red distribution, to get our product
in traditional retail stores.
Recommendations:
• Explore avenues for earnings from national and international concert tours.
• Expand merchandising and licensing initiatives.
• Participation at conventions and high visibility functions.
• Implement a comprehensive marketing and publicity strategy for the industry.
• Engage in niche marketing.
• Secure our fair share of the estimated US$50 billion market (2005 estimate) for recorded music over the next 3 years, to realize millions in revenues.
• Host label parties in 3-5 major cities.
• Maintain e-commerce capability for Internet marketing and distribution.
Strategy & Action Plan
for further development of
D-TOWN RECORDS/EIEG GROUP
Identify and implement strategies, actions and partnerships that would help to realize greater economic gains.
Summarized in the following seven strategies:
1. Increase our potential for a valuable share in the music industry through a structured, targeted and effective system of marketing and promotion.
2. Increase the profitability of the company by strengthening efforts and measures to gain exposure through strategic alliances.
3. Identify and develop new talent for the future growth of the company.
4. Deliver the best music product and ensure continued high standards in performance delivery.
5. Diversify the range of partnership opportunities available to build on success.
6. Conduct continued market research and the development of innovative music production.
7. Recruit and employ in-house staffers, and a street marketing team.
An Action Plan is also to be put in place, which will detail the specific actions required on the part of each partner to realize the desired outcomes.
Recognizing that all the proposals in the Action Plan cannot be addressed at once, a recommendation for the immediate implementation of key actions as
catalysts for development of a more complete company.
The company establishes fully functioning staffers, with significant resources to support the demands of the music and entertainment industries. This
will ensure that there are human and financial resources available to address many of the needs to execute this strategy.
Collaboration with outside sources to get necessary funding for “major artist” development programs, to be designed and implemented with input from
the team in place.
Strategies and Actions to grow the company
As regards to the top priority strategies and actions needed to develop in the music industry, the identified are as follows:
Strategies
Some strategies for development are as follows:
Technology and the Media
The media can be supportive of unknown artists when presented with a specialized targeted PR campaign. High budgeted music projects ranks very high on
many radio stations. The entertainment conglomerates have the marketing, advertising, the exposure in multiple mediums and the fiscal muscle to make a bigger
splash. How we become a player in such a high stakes game will be extremely tactical.
Accelerated growth in digital sales
2004 was a landmark year for the growth of digital services. Over 180 legitimate music download services were launched globally in 2004. There are now well
over 300 sites in total. Sales of digital music players continue to increase, spurring growth in online music. The launch of 3G services by major wireless
operators has given a boost to the download music to mobile market. In addition, sales of physical product over the Internet are growing rapidly reaching 6% in
the US, 10% in the UK and, 15% in Germany. The Internet was the fastest-growing retail channel for CD sales in 2004.
Product Development
The challenge facing us is to sustain the gains made to date and ensure its continued expansion. There is always a need for a consistent supply of dynamic and
innovative music products that is not currently being fulfilled. On-going development and marketing of our music is key.
Future Growth Opportunities
We are an entertainment initiative focused on creating an exciting artist roster that transcends cultural barriers. Our objective is to establish the (DTR) brand
and as a dominating force in the music and entertainment industry. Positioned as a trendsetter, we will utilize our industry position and influence to leverage
licensing deals in other markets such as television, film, apparel, and beyond.
Contact Us For More Detail
972-934-6592
info@dtownrecords.com
CEO/President,
As Chairman, CEO and founder of EIEG LLC. Mr. Edwards is responsible for the management and strategic direction of the company. Under this leadership,
EIEG has experienced tremendous growth from its startup in building the strategic alliances and partnerships to ensure success. These alliances and
partnerships consist of critical musical components as well as major distribution channels. It is through these partnerships that the company has been
positioned to be a music industry leader in independent label arena.
A visionary in the field of business strategies, Mr. Edwards has positioned the company to successfully deploy its artist in both the normal distribution and in
the digital world. For seven years, Nate has overseen millions of dollars in manufacturing and installation of equipment for General Motors CCRW Group, one
of the world's largest automobile manufacturers. Prior to founding EIEG LLC in 2003, Mr. Edwards was an electrical project engineer and responsible for
multiple major projects for the Swedish company SANDVIC. His responsibilities included functioning as a Controls Project design Engineer, system integrator,
solving complex engineering problems, and taking projects from concept to final acceptance. He coordinated needed support and resources to achieve project
objective(s), monitored project progresses and developed strategies for electrical contractors to meet design targets. This included developing and implementing
electrical bid specifications, designing Electrical Controls, and Panel Designs, PLC software development, and systems integration for various Material
Handling systems.
Mr. Edwards also brings over ten years experience in the music business. He is a former musician who started playing the guitar at the age of 10. However, he
stepped away from music at the age of 21. He and his brother, Morton Smith, formed several bands who were good, but young. However, they were good
enough for people to pay them. On Sundays, they would play in the church and on weekends they would play in clubs. Their parents had no idea they were
hitting the clubs. All they new was they were good and everyone told them how good they were. They caught the eye of some big dogs, including Roger
Troutman of Zapp, and Bootsy Collins.
Steven ‘Leftfield’ Franklin - President
As President of D-Town Records Steven Franklin aka ‘Leftfield’ will work along aside Nate Edwards and Daryl Ethley to provide quality assurance for each
release as well as oversee all day to day operations. Leftfield’s business background is based on over 8 years of experience as a former Business Implementation
Consultant, for Oracle Communications Global Business Unit. He is responsible for defining business processes, workflow management, and system analysis
and network configuration. As a Project Manager for Cognizant Technology Solution, Mr. Franklin is responsible for data gathering, process documentation,
and project management. Leftfield (as he prefer to be called) a native of Harlem N.Y. started his career in music as an artist previously signed to GR
Productions (Gene Griffin/Teddy Riley). Leftfield has also performed and opened for major artist such as Notorious B.I.G, Jungle Brothers, Black Sheep,
DaBrat, Zhane, and Ill Al Scratch. He has also had a cameo appearance in the Halle Berry and Tommy Davidson film ‘Strickly Business’.
Darryl Ethley
CFO/Partner
As President and CFO of D-Town Records, Mr. Ethley is responsible for overseeing all management operations from accounting, treasury, negotiations of all
activities primarily concentrating on the promotion and marketing aspect of the company. He’s involved in all activities from inception to completion. He
brings a wealth of experience in sales, marketing, advertising, and people management with over 20 years of experience with Frito-Lay. Mr. Ethley has
performed as a Region Sales Manager with responsibility of managing over a hundred million dollars in sales per year while handling various roles such as
institutionalizing “Regional Programming”, developing specific “Grass Roots Marketing” plans, developing specific communication processes for internal and
external parties. He’s proven to be very proficient in driving people development and performance capabilities by utilizing fair and consistent performance
management measurement systems to address performance issues.
Mr. Ethley is primed for future expansion roles in D-Town Records with the capability to create, manage and oversee specific departments within the
company. Mr. Ethley will be responsible for conceiving, designing, and implementing strategies and transitions that fortify the competitive posture and
enhance the value of these business units with D-Town Records. He will reach out to various businesses and executive Board of Directors of other related
companies to enhance investor relations and other activities that will benefit D-Town Records’ market share.
Anthony Paul
President A&R/Partner
Mr. Paul is responsible for all details arising from the creative process of record production. His primary duties are to oversee the flow of contracts, budgets,
studio bookings, master deliveries, invoice statements, and compliance with union regulation, etc. His position involves the functions and requirements of
record company personnel in accounting, legal, marketing, and business affairs, etc. With those of staff, artist, producers, studios, and others involved in the
production of an album. Mr. Paul’s role also involves checking out new talent, signing artist to the company, finding songs for artist signed to the company,
matching producers with artists, assuming direct responsibility for all the artists, producers on the label’s roster. He motivates other departments of the
company to aggressively market and promote product by those artists. Mr. Paul’s knowledge of the business far exceeds that of 20 + years in the music
industry and even after 20 years “quality control” is still PRIORITY ONE!
MARKETING
The GTE Group is a full-service marketing and promotion company, the result of a joint merger between Gravity Entertainment, and The Thrasher
Entertainment Group. Their recent projects included: Urban Box Office – CHOSEN FEW: El Documental CD/DVD showcasing the emerging music genre of
Reggaeton Music, a project that topped of the Latin, Tropical music charts, and climbed in the Billboard Top 200 LP Chart. Launched the debut CD of former
AMERICAN IDOL semi-finalist LaToya London, and the new EARTH WIND & FIRE album “ILLUMINATION”.
The principals are:
WAYMAN JONES, a former senior promotion and marketing executive with major record labels such as Warner Bros, Dreamworks Records,
Motown, Mercury/Def Jam, and Virgin Records. His tenure at these companies resulted in consistent chart topping airplay resulting in top ranked sales
achievements. Warner Bros. Jaheim (3.8 Mil. Units), Lil Scrappy & Trillville (900,000 units) Boney James (800,000 units), Dreamworks -Ron Isley (2.2.
Million), Floetry (750,000), David Hollister (725,000), Motown -Temptations (1.8 Mil.), Brian McKnight 3 albums 6 million, Mercury/Def Jam - Jay –Z (9
mil.) 3 records, LL Cool J (2.5 mil.), DMX 3 ALBUMS (5 mil.), Nutty Professor (2.0 Mil.0, Redman (700,000), Method man (625,000), Foxy Brown
(615,000) 2 Albums, TONY, TONI, TONE 5 Albums (4.7 Million), Lucy Pearl (800,000), Vanessa Williams 2 albums (1.7 Million). Virgin Records (Janet
Jackson) (11 mil.) His vast sales, marketing, management knowledge, professional experience and relationships are an asset to an organization’s growth and
success. Developed promotion/ marketing, and partnership strategies with Fortune 500 companies. Organized hired and trained diverse national marketing
teams. Successfully developed sponsorship and partnership ventures for employers and clients. As an entrepreneur he has managed marketing aspects for
numerous well-known entertainment clients.
ERIC THRASHER, worked in an executive capacity for over 10 years with majors and start-ups. His track record includes :Motown, Warner
Reprise, Virgin and Perspective Records then ventured out on his own as a consultant for the last six years for Dreamworks Records, Trauma Records, Warner
Bros. Records among others.
He developed promotions and marketing campaigns for OZ HBO Soundtrack, Johnny Gill's Motown Records Double Platinum CD, BOYZ II MEN (4x
Platinum LP's), Smokey Robinson - Platinum Grammy Winning (Just To See Her) CD, Lionel Richie’s(5x Platinum Dancing On The Ceiling CD), Stevie
Wonders (Multi-Platnium CD Characters) (Reprise Records -Take 6 Platinum, Zapp & Roger, Platinum, Virgin Records Shaggy Multi-Platinum, Virgin
Records After 7 Platinum. Perspective Records Mint Condition Platinum,) among others.
D-TOWN RECORDS/EIEG GROUP (DTR) has now assembled through various associates a team to bring to realization a
tremendous business opportunity. They have long formulated the idea of starting a formidable entertainment company and it’s now coming to fruition.
Together, their vision and strategic partnership is resulting in an alliance whose focus is exclusively on establishing and building a manageable roster of
entertainers. Their desire for new levels of achievement and reward will spearhead (DTR) to become a leading independent record label with an incomparable
marketing arm. Expecting to concentrate on a tremendous growth opportunity, they are dedicated and determined to make the start-up a profitable entity.
The recruited, experienced and expert team’s mandate is to build the company into a serious competitor in entertainment. Among them is a production and
artistic network of hit makers comprising of a highly qualified group of hip-hop stars, producers, writers, and musicians who have generated Grammy and
American Music awards, plus contenders on the rise.
Every company is driven by an underlying philosophy; the vision is to put hot, quality product in the marketplace. That ingredient is among the guiding
principles that will allow D-TOWN RECORDS/EIEG GROUP to succeed, and be distinguished from the competition.
The partners of the entertainment entity have been direct participants in the Pop, R&B, hip-hop / rap music industry for years. The wealth of resources and
relationships maintained by the “well connected” crew will serve as a source of life for this company.
Contributing Team Members
The company utilizes contracted workers to fulfill certain roles in its operations and will also hire other staff with specific functional skills required of future
demands.
Radio Marketing Team
Jerry Boulding has programmed 16 radio stations in markets including New York, Chicago, San Francisco, Washington DC, Detroit, Baltimore, Richmond
and Rochester. He developed Heart & Soul, the first urban format for satellite delivery before channeling his vast radio experience on the label side as head of
the Black division of MCA Records. He later co-founded two successful urban radio trade publications: Black Radio Exclusive and Urban Network Magazine,
later returning to network syndication as Senior Vice President, Entertainment Programming for American Urban Radio Networks. Boulding, currently serves
as Urban Editor for Allaccess.com, a radio trade Web site; he also heads Jerry Boulding & Co. Broadcast Consultants specializing in network syndication and
Arbitron diary analysis for major market stations including WBLS-FM (New York) and KJLH-FM (Los Angeles) and is president of The Boulding Group, an
artist management firm.
Maggie Boulding has over twelve years of experience managing music merchandising, marketing, and national promotions for leading retailers including
Barnes & Noble.com, Columbia House and Sam Goody/Suncoast Motion Picture Company. She also brings a solid entertainment, technology, and consumer
public relations background gained at agencies including WestWayne Inc., Alexander Ogilvy, Fleishman-Hillard, and Giles Communications where she managed
artist endorsements for Yamaha Pro Audio and Keyboard, and also launched The Mr. Holland’s Opus Foundation with Oscar-winning actor, Richard
Dreyfuss. She currently serves as vice president of The Boulding Group, and provides creative and production services to Jerry Boulding & Co. broadcast
clients, most DTRently as Head Writer/Producer of American Idol’s Randy Jackson’s Hit List for Westwood One Radio Networks.
I-Ware CD™ technology -
A Portable Media Operating System™ that provides a robust set of features and integrates multiple technologies to allow flexible control over the interface,
features, functionality and content of marketing and promotional material in real time. Our PMOS™ allows our clients to create a Personal Internet Business
Channel™ that helps to protect their customers from the pitfalls of the Internet such as viruses, spy-ware, data mining and ad-ware, provides faster data access
than a web site and does so without installing or updating anything on the viewers computer.
This is the first and only Portable Media Operating System™ available on the market today. I-Ware will revolutionize the entertainment industry and provide
one of the most unique and innovative ways to advertise and market products and services. It's called i-Ware CD™ technology and has been dubbed by Dave
Glassel, owner of CedarCide Industries, Inc., as "The most powerful form of marketing material since the invention of television!" This Portable Media
Operating System™ (PMOS™) is a patent protected technology that can be utilized from any form of portable media such as CD or DVD as well as
Flash/USB drives.
DaReal Hometeam Street Marketing Team,
DRH offers a full range of marketing and promotion services and solutions. Each promotional or marketing project is personalized to meet our client's specific
need and get the maximum results for the budget. Their strategic relationships within the Atlanta Entertainment Community are invaluable. DRH has
successfully developed and executed marketing and promotion campaigns for many National Rap Acts: This list includes, but is not limited to the following:
Retail
Billy Bowles – Founder of F.O.K.K.U.S Media Group LLC is 20-year veteran specializing in retail management. F.O.K.K.U.S abbreviated for Focus,
Opportunities, Kreating, Knowledge, Universal, Success, was created to help bridge the gap between retail, consumer and DTRord Company.
Billy Bowles and FMG will use its expertise in retail to strategically plan
• Artist in store appearances
• Retail presentations for Major and Independent retail chains (Mom/Pop)
• Secure product visibility
Using a 20-year business relationship with retail outlets in virtually all major markets, FMG will ensure consumer awareness while securing a relationship
between product and retail.
FMG marketing division was established to help bridge the gap between in adverting music releases at retail/lifestyle marketing. With over 20 years of music
retail business, FMG will use these relationships to gain visibility in major chains, independent (mom/pop shops), lifestyle accounts, and spread the word
amongst industry tastemakers in the key markets. We will also provide new media/digital services (i-Tunes, ringtones, downloads, myspace, online marketing,
website design, etc.) for artist/labels.
Bootzilla Productions
CEO William "Bootsy" Collins and CEO Nate Edwards have the same mission when it comes to grooming young talent and up coming Stars. We at
DTR/DTR/K2K envision developing a music roster that effectively gives new promise to the market and strategically captivates the music industry. D-TOWN
RECORDS/DTR GROUP (DTR) is empowered by great music and marketing strategies that have been our signature in the industry since conception. We have
an opportunity to reach critical new markets through unique business relationships,” says Mr. Edwards”, one being Bootzilla Productions.
One of the projects includes a museum for Kings Records in honor of long time R&B legend James Brown and the city of Cincinnati has signaled its support
for the museum”. Mr. Collins’ envisions an interactive experience where young people can learn about music, production, live instrumentation, participate in
workshops, and perform on live shows. This is one of the missions that DTR/D-Town Records of Dallas, Texas took on for Bad Boy South/Block
Entertainment during the summer of 2006. DTR/D-Town Records mentored artist from all over Texas, preparing them for the “Hood 2 Hood Talent Search
Showcase” (sponsored by: Boyz N Da Hood) teaching them how to put together Press kits, Demo Packages, and develop their stage presence.
Introduction
The Music Industry
The music industry comprises of artists, producers, distributors, retailers, manufacturers, engineers, record labels, record studios, publishers, marketing
agencies and songwriters. It is a business driven by the artists signed under contract by a record company to produce a certain number of singles and albums.
The record company may pay for the album to be produced, manufactured and marketed throughout the world. The revenue received from the sales of the
album or single go to cover the cost of producing the CD. The product portfolio has to be managed very carefully to ensure that the cash flowing into the
business is sufficient to maintain all its liabilities.
A look at any website of the main record companies will highlight the fact that each company actually owns dozens of other companies that it may have
bought or set up. The market is therefore dominated by 4 major corporations who account for 75% of the total sales of recorded music in the world but within
those four corporations are dozens of other labels and companies that are well known in their own right and may have been acquired or set up by their parent
company over the years. Most of today’s records on major labels are on imprints belonging to independent record companies. These partnerships are among
the top moneymakers in the industry. This growing trend is a far cry from when artists used to be signed directly to a major company.
Independent Labels
In growing a music catalog it is imperative to compile a reliable group of artists, who are dedicated to producing quality music. This enables the company to
steadily increase the number of unit sales for a particular artist over a two to three album process.
Major recording companies frequently invest in independent labels when confidence in the company's roster and management exists. In these strategic alliances
and joint ventures, the larger company may invest money to: a) assist in completing album projects, b) manufacture compact discs and tapes and c) assist with
marketing and promotion plans.
Although independent distribution channels (Johnson, Wallace and Cordoba) exist, many independent labels choose to utilize the independent distribution
services offered by major labels. This is an attractive choice for independents, due to the breadth and reach of the distribution in addition to the clout which the
majors possess with retailers. In these situations, independents can "piggy back" on the reputation of the major.
Several UK companies that started as independent firms and joined forces with a major include Clover, Maid and Roots. Similar success stories are documented
with U.S. based companies such as: Appleton, Chatham and Mill Point. From the outset, these companies demonstrated creative leadership, quality product
and determination.
Industry Sales Volume in the U.S.
The U.S. record business, which grossed two billion dollars in 1970, exploded to four billion dollars in sales by the end of 1978, with a unit volume of 726
million records and digital units sold. Sales fell sharply over the course of the next six years, mainly due to the declining American economy and the popularity
of home cassette taping. It wasn't until 1988, when unit volumes reached 726 million that the industry exceeded the pinnacle reached ten years ago. Recent
calculations of industry figures indicate more than 10 billion dollars in sales and a volume of more than 955 million units.
MARKET ANALYSIS
The recording industry is one of the great global industries of today. It is one of the leading creative industries that increasingly drive the development of
segments of the economy; and it is finding its place in the era of digital technologies and electronic commerce.
The industry's success is primarily as an investor in human creativity. Record producers worldwide, independent and multi-national, invest billions of dollars in
this entertainment sector. They support the livelihoods of a diverse array of artists across the world. Those that are commercially successful have the chance of
reaching out to a national and international music-loving public.
The business is a talent-driven, creative industry, and as such it is totally the essential building block of the music business, allowing artists, songwriters and
record companies to invest their revenues and their livelihoods in the creative process with the potential for tremendous rewards.
According to figures compiled by PricewaterhouseCoopers LLP, the market for recorded music in the United States --- is reaching $15 billion. Globally the
total is $50 Billion.
Current marketplace trends indicate: The Independent record segment is growing faster and producing more hit records than the major labels. But without solid
financial backing and strategic alliances, success can elude them. Consumers are becoming more technologically savvy, and the ability to instantly link to music
portals is expanding. Internet-based retail stores are now a reliable and complete destination that promises the highest quality in music downloads. Many
companies are utilizing music sites; they try new methods, products and structures to better meet buyers needs. The goal is to implement innovative ways to
establish our presence to this crucial consumer group.
Our position in the Marketplace
• Tailored Portal. Our website offers ease of navigation and has streamlined access to information. We will keep users up-to-date on songs and topics of
interest relating to the artist. Site users can correspond with their favorite artist via the website.
• New product management tools. To facilitate our launch of new music, we provide a space by which to communicate new product news, build fan base,
and solicit consumer feedback.
The Opportunity
D-TOWN RECORDS/EIEG GROUP is well positioned to take advantage of significant opportunities available through its strategic partners. The commitment
is to deliver the best music to its consumers. The company has strategic and developing partnerships and alliances with proven companies, with joint ventures
that would result in artist collaborations, and concert tours. These relationships allow us to reinvest in the company’s rapidly expanding consumer base with
new product and artists.
Marketing Objectives
The current marketing objectives is to market the individual talents, building from the streets to the mainstream public, to the boardroom's of the multi-billion
dollar commercial radio conglomerates. The goal of the company’s marketing is to create several channels of distributions. The company’s current industry
focus is on the urban hip-hop market and to eventually include all segments of the entertainment industry.
The source of revenue will include, a record label with a production studio, and future production and distribution of its CD/DVD products. Over the years, the
combined efforts of the team have made a loyal contact base that will only expand in years to come. Once operating on all cylinders, the company will step up
an aggressive marketing campaign to include; TV Ads, Newspaper, Radio, and trade magazine Advertising.
Growth Opportunities Beyond the U.S
With initial success in the U.S., we would expand internationally. Our extraordinary opportunities for expansion will also come from other areas such as:
Caribbean, South America, Europe, and Asia.
D-TOWN RECORDS/EIEG GROUP within a Competitive Landscape
Despite competition from a number of Independent record companies whose quality of product, expertise, and necessary resources remains limited. (DTR) has
an edge; making the most of present resources, we have made some key gains in this competitive landscape. With success in securing airplay at major radio
outlets in the nation, our artists will be in position to be heard by millions. In the fast-selling pop-hip-hop consumer group, they will be geared to be dominant
artists in the genre.
Marketing and Distribution
The efficient and effective distribution of our music is essential for market penetration, as is a quality impacting music video, and utilization of all media
channels for the promotion of the music to ensure airplay of their music and reach the target market. We have already secured major download sites for Internet
distribution of our product, and secured a mutually beneficial alliance with a major distributor, Marian Records, Sony/Big Red distribution, to get our product
in traditional retail stores.
Recommendations:
• Explore avenues for earnings from national and international concert tours.
• Expand merchandising and licensing initiatives.
• Participation at conventions and high visibility functions.
• Implement a comprehensive marketing and publicity strategy for the industry.
• Engage in niche marketing.
• Secure our fair share of the estimated US$50 billion market (2005 estimate) for recorded music over the next 3 years, to realize millions in revenues.
• Host label parties in 3-5 major cities.
• Maintain e-commerce capability for Internet marketing and distribution.
Strategy & Action Plan
for further development of
D-TOWN RECORDS/EIEG GROUP
Identify and implement strategies, actions and partnerships that would help to realize greater economic gains.
Summarized in the following seven strategies:
1. Increase our potential for a valuable share in the music industry through a structured, targeted and effective system of marketing and promotion.
2. Increase the profitability of the company by strengthening efforts and measures to gain exposure through strategic alliances.
3. Identify and develop new talent for the future growth of the company.
4. Deliver the best music product and ensure continued high standards in performance delivery.
5. Diversify the range of partnership opportunities available to build on success.
6. Conduct continued market research and the development of innovative music production.
7. Recruit and employ in-house staffers, and a street marketing team.
An Action Plan is also to be put in place, which will detail the specific actions required on the part of each partner to realize the desired outcomes.
Recognizing that all the proposals in the Action Plan cannot be addressed at once, a recommendation for the immediate implementation of key actions as
catalysts for development of a more complete company.
The company establishes fully functioning staffers, with significant resources to support the demands of the music and entertainment industries. This
will ensure that there are human and financial resources available to address many of the needs to execute this strategy.
Collaboration with outside sources to get necessary funding for “major artist” development programs, to be designed and implemented with input from
the team in place.
Strategies and Actions to grow the company
As regards to the top priority strategies and actions needed to develop in the music industry, the identified are as follows:
- Marketing and business support services are critical to developing the company. Marketing support will assist in breaking into new markets,provide
assistance during performances, when attending music industry conferences, and assist with data collection on airplay, sales, and bookings. - Greater emphasis should be placed on non-traditional, secondary, and tertiary markets to establish the developmental process.
- An international marketing campaign to assess the degree of penetration and level of earnings in the overseas markets is also recommended.
- Other business support services will assist in implementing the day-to-day operations, gather market research, among other outputs.
- Financing input needed for further growth and development. The sources of the funding can be in the form of loans or investment capital. This would
provide much needed resources for marketing, new ventures etc.
Strategies
Some strategies for development are as follows:
- Increase market penetration through a structured, targeted and effective system of marketing and promotion.
- Increase profitability by stepping up efforts and measures to gain airplay and sales.
- Always improve the music product and ensure continued standards of professionalism in service and product delivery, by creating mechanisms to
identify and develop new talent, and by continued market research and the development of new and innovative music products and services. - Increase the level and diversify the range of financing opportunities from all sources.
Technology and the Media
The media can be supportive of unknown artists when presented with a specialized targeted PR campaign. High budgeted music projects ranks very high on
many radio stations. The entertainment conglomerates have the marketing, advertising, the exposure in multiple mediums and the fiscal muscle to make a bigger
splash. How we become a player in such a high stakes game will be extremely tactical.
Accelerated growth in digital sales
2004 was a landmark year for the growth of digital services. Over 180 legitimate music download services were launched globally in 2004. There are now well
over 300 sites in total. Sales of digital music players continue to increase, spurring growth in online music. The launch of 3G services by major wireless
operators has given a boost to the download music to mobile market. In addition, sales of physical product over the Internet are growing rapidly reaching 6% in
the US, 10% in the UK and, 15% in Germany. The Internet was the fastest-growing retail channel for CD sales in 2004.
Product Development
The challenge facing us is to sustain the gains made to date and ensure its continued expansion. There is always a need for a consistent supply of dynamic and
innovative music products that is not currently being fulfilled. On-going development and marketing of our music is key.
Future Growth Opportunities
We are an entertainment initiative focused on creating an exciting artist roster that transcends cultural barriers. Our objective is to establish the (DTR) brand
and as a dominating force in the music and entertainment industry. Positioned as a trendsetter, we will utilize our industry position and influence to leverage
licensing deals in other markets such as television, film, apparel, and beyond.
Contact Us For More Detail
972-934-6592
info@dtownrecords.com
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