International Marketing Study Program 2000
AEI Music, Seattle
28 January 2000
The tour started at 10.15am. Shari Bjorn, Director of Training Sales and Marketing, gave the group a tour of AEI's head office facilities including several programming rooms, accounts, customer services and the 'AEI Club'.
After the tour of facilities the group was given a presentation by Mr Michael Dukane, Snr. Vice President Sales and Marketing. Mr Dukane gave the group an insight into how AEI creates customized integrated audio and video entertainment solutions designed to achieve the client's marketing and merchandising goals. He illustrated this by using a Nordstrom case study. The department store group used video music to increase their sales performance. In the study carried out by AEI, the department store that offered video music entertainment had an increase in sales transactions of 18%. This was due to the passive shopper spending more time in the store and therefore giving the active shopping more time to shop. Interestingly, this told AEI that the passive shopper is the one who controls the shopping cycle.
Mr Dukane also mentioned that the music designed for a particular brand/company must make a connection with the client's customers. Basically, AEI Music targets and focuses on the high end customer. However, due to competition they are now also diversifying their business into the low end market. At present, AEI occupies 63% of the high end market (speciality fashion, speciality home and concept dining) and only occupies 4% of the low end market) conventional retail, fast food and grocery stores).
Basically, his message was about branding becoming more and more cluttered, and that music can play an important role in supporting and in turn differentiating brand image.
Mr Rick Barrick, Regional Sales and Marketing Director, provided the group with some rich insights into AEI's philosophy of using music to inspire customers. When choosing the specific music, AEI always considers customer demographics, customer lifestyles, attitudes, store atmosphere and marketing strategy. He stressed that AEI offer their clients the right music, at the right time, in the right place.
He also mentioned about AEI's music strategy. Its spectrum ranged from CB (Comfort Based) to AR (Altered Reality). He talked about the importance of considering the specific elements of music: tempo, genre, era, the degree of familiarity and the song arrangement.
The presentation ended at 12.45pm.
Written by: TS. Wong
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