Tower Video

EXECUTIVE SUMMARY

This paper aims to address Tower Records Philippines’ problem of being recognized as a VIDEO retail store aside from being known as a music retail store. It recommends that Tower Records open new branches carrying the brand, TOWER VIDEO. These stores would prioritize the display and merchandising of video titles more than the audio titles. Existing Tower Records stores will create separate and dedicated sections/floors for video in the hopes of Tower Records attaining market leadership in both audio and video retailing in the Philippines.

TABLE OF CONTENTS

I. Review of Current Brand Situation

II. Assessment of Brand Equity

III. Opportunity and Issue Analysis

IV. Objectives

V. Marketing Strategy

VI. Action Programs

VII. Financial Projections

VIII. Implementation Controls

I. Review of Current Brand Situation

International Licensing History

Tower Records has long been recognized and respected throughout the world for its unique brand of retailing. Opening for business in 1960 on Broadway in Sacramento, California, the first Tower Records store was named after the landmark theater anchoring the small shopping complex there. In that original store Tower’s owner and founder, Russ Solomon extolled the very retail virtues which have been essential to Tower’s phenomenal growth and innovation over the past four decades.

During the 60’s the record business evolved providing hundreds of millions of people with ample and affordable access to the new, popular sounds being craved. Tower Records became an irresistible place to share the experience, embracing nine till midnight opening hours, 365 days a year, espousing “supermarket” style record merchandising and depth of catalog to boot.

A vicious hangover and a greasy breakfast led to a fortuitous 1967 encounter in a vacant San Francisco supermarket, enabling Russ Solomon to fulfill his dream and open for business a year later at Columbus & Bay. The store was an instant hit and record retailing was revolutionized by the world’s largest record store of the time; not only the first of its kind, but the stepping stone to Tower Records’ global expansion.

Two years later Tower’s landmark store on Hollywood’s Sunset Strip opened. Catching the next great wave of California music Tower Sunset quickly became one of America’s most important record stores. Its success led to nationwide growth over the next twelve years as Tower surfed the public’s widening tastes in music, maximized the proliferation of music media and cultivated its own merchandising mastery. Tower had grown into what became known as a “category killer”.

1979 witnessed Tower’s entry into the Japanese market; a classic example of creative opportunism involving the procurement of an organization already trading as Tower Records. Opening in Japan without a joint venture partner or franchise agreement was indeed a very bold move, however, one that proved highly successful and gave Tower freedom of movement and a natural image in Japan, both of which have contributed significantly to Tower’s continued growth and prosperity. Decades later Tower Japan, as an independent company, has over 50 Japanese Tower Records stores and http://www.tower.co.jp with hundreds of millions of dollars of revenue annually.

By the 80’s international commerce had become a major source of revenue for the company and in 1986 Tower opened its doors on to Piccadilly Circus in London, with a magnificent flagship store. In the years following, more stores opened across London and in Glasgow, Scotland. Other locations ensued during wide range global expansion throughout Taiwan, Mexico, Ireland, Israel, Singapore and Hong Kong.

Tower’s largest record store in the world opened in 1995 in Shibuya, Japan, with 8 stories devoted to CDs, videos, books and lifestyle items. Not only did the store shatter sales records from its opening day, but continues to do so. 1995 also heralded the opening of Tower’s first WOW! multimedia store in association with the Good Guys, in Las Vegas, Nevada. The superstore concept introduced an unparalleled combination of CDs, videos, books, magazines, computer software and consumer electronics hardware, providing customers with a unique