In February 2007, Octone Records founder James Diener, Ben Berkman and David Boxenbaum was very successful with the first two groups, they signed, Maroon 5 and Flyleaf. Well known for its grassroots marketing campaign, Octone controlled through a unique model of the joint venture with RCA Music SonyBMG Music Entertainment Group, which allowed the agile label to organize a massive marketing campaign once the artist was ready for "prime time." Octone was less fortunate, however, in the third act, Michael Tolcher.
Despite significant investment, the first full-length album Tolcher's not sold enough copies to cover their costs, and marketing support service RCA. Octone leaders faced a decision: whether to support the first album Tolcher, raising interest rates to finance a second album, or cut your losses and focus instead on other artists. At the same time, Octone had to evaluate the offer from Universal Music Group, to purchase an interest in the SonyBMG joint venture. Allows for in-depth study of new product development and launch strategies in the context of the music industry. Provides a rich understanding of how grassroots and mass marketing approaches can contribute to the new product / artist development. Octone in "hybrid" marketing structure is described in detail and support of economic data is provided. When the analysis of how long and how aggressively the artist should be supported before the commercial success achieved, is a means to contrast different approaches to the process of new product development. "Hide
by Anita Elberse, Elie Ofek Source: Harvard Business School 27 pages. Publication Date: June 29, 2007. Prod. #: 507082-PDF-ENG
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