Record industry of Malaysia is growing towards a matured stage. In general, multinational companies control the major market shares with their strong capital and products. The market of recorded music has been well developed by the introduction of various music styles and genres. New technologies are adopted by the industry for new product formats such as MD and VCD. However, the industry is facing competition from the pirated products, imported products, direct marketing and other entertainment industries.

            Being one of the top three record companies in this country, EMI Malaysia enjoys a substantial market share. EMI Malaysia’s strategic marketing is empowered by its established marketing department and its new division EMI Special Marketing. EMI Malaysia’s product line covers most of the segments in the market. The deep product line lowers the marketing risks and helps future growth. The promotion has been carried out successfully with both the established tools and also the new way of information exchange – Internet. EMI Malaysia continues to sell its products at the standard ranges of prices as other multinational companies. Its distribution channel covers both multi-level distribution and direct marketing.

            By referring to the analysis of industry and company, the study showed that depth of product line, strong promotional efforts and availability of capital were the major strengths of this company. On the other hand, products not fully exploited, no promotion in discount and no direct online communication were the weaknesses. The study found some opportunities for EMI Malaysia in strengthening its marketing competition. They are Internet marketing, the potential market of classical music, and the possibility to open its own brand specialty retail chains. The company is also exposed to some new developments that may threaten the company’s market position in the future. They are the growth of commercial broadcasting, new transmission technologies and unauthorised copying.

5.2 Recommendations

            Recommendations for EMI Malaysia are as follows:

            a) Product Line Development

            EMI Malaysia should continue its efforts on product acquisition and repertoire developments. In popular music, EMI Malaysia may continually sign up new products from the local music scene. There are many new production companies who produces recording albums and needs record companies to promote and distribute for them. EMI Malaysia should focus on the products that are unique, marketable to regional besides the local market. Local Chinese products will be another segment that should be developed in order to target the Taiwan, Hong Kong or even China’s markets.

            Besides popular music, classical music is another potential segment. EMI Malaysia should acquire great products of “EMI Classic” and “Virgin Classic” which are also own by EMI Music Groups. Both the labels are specialists in classical music and surely they will attract the local classical music enthusiasts.

            Although Japanese albums are not an important segment in the market, however, EMI Malaysia can still have a trial in the market by acquire products from EMI Japan. Yumi Matsutoya's "Dancing Sun" album and Tsuyoshi Nagabuchi's "Best of" album are among the best selling EMI albums in Japan last year. They may sell in Malaysia.

            b) Product Feature Development

            The basic function of a music album is entertainment. People buy cassettes or compact discs because they like to listen to some favourite songs. People may also consider other factors such as the value to keep an album, the added value of a product, the packaging, the exclusiveness and also the level of preferences towards their idols. If an album keeps its value as only entertainment, it can be easily replaced by other substitutes such as radio broadcasts, pirated products, Internet downloading or home copying.

            To minimise the opportunities for competitors, EMI Malaysia should focus on the value development of its products. Value shifting from purely entertaining to more elements of exclusivity, increasing value of the product as a collection item can be done. For example, EMI Malaysia may market some album series in limited edition, or differentiate some products into normal and deluxe versions. In addition, value changes may be conducted in value adding by introducing new features to the basic function. For example attractive packaging, or exclusive gifts can be included. Added value can also be in the form of manufacturing multimedia CD-ROM or DVD.  Besides audio, multimedia features such as music videos, artiste’s photographs or slide shows, or some text information can also be played on personal computers. Adding values in the form of electronic data is economical.

            c) Product Exploitation

EMI Malaysia should fully exploit the repertoire or products that it has created and acquired. Released albums or old songs may be promoted again if they still have potentials in the market. Although old albums or songs will not be as successful as the current hit albums, the risks involved are lower.

            Old products can be exploited in many ways. The first idea involves marketing previous albums of some famous artistes which were not well marketed in the past. Promotional support can be given to make the product seems “value for money” to the consumers. It is a strategy that practiced by BMG and Sony Music before.

            Another way of product exploitation is by producing more compilation albums. EMI Malaysia’s compilation albums should not be limited to the current hit songs or an artiste’s greatest songs. Songs may also be compiled according to a special theme or in conjunction with some programs or issues. For example, an album may be marketed to allocate some funds for AIDS foundation, or an album with positive messages is created for young generation in collaboration with Rakan Muda’s programs. There still are many possible themes such as “Happy Songs”, “To My Dearest”, “Exam Is Over”, compiled with different groups of interesting songs.

            d) Internet Marketing

            The are a lot of opportunities that can be utilised from the Internet besides as a promotion tool which currently done by EMI Malaysia. EMI Malaysia should improve its Internet direct marketing. More products especially the latest titles should be offered. Internet should be the fastest media to advertise the latest products than other advertising media. Standing order service should be offered to Internet users where they can make orders in advance before a new release is sold in market. Customers’ orders are received in the first time, making Internet marketing special to consumers.

            To develop its Internet marketing, EMI Malaysia should put more efforts to convince the consumers on the reliabilities of their services. The homepage’s designs should be made more attractive and more descriptions of an item should be attached. The pages should be updated regularly to show the business is still going on and responsive. EMI Malaysia should start its own Internet marketing team rather than appointing M.O.G. Sdn. Bhd. to be their agent, where the way of conducting marketing seems not effective.

            EMI Malaysia should utilise the function of Internet as an effective communication tool. Direct communication should be encouraged between the Internet users and the public relation staffs without going through a third party, which is the present practise of the company. A special team of public relation with both promotional and Internet knowledge should be organised in order to conduct the homepage, creates the more effective Internet communication flows. EMI Malaysia can also exploit the opportunity of Internet as to conduct market surveys, gather marketing information or having pilot testing on their new products.

            e) New Channel of Retailing

            As discussed in previous chapter, EMI Malaysia should open its own specialty retail chains. Retail outlets can be located at some new business or shopping centers around Kuala Lumpur such as Plaza Rakyat at Jalan Pudu, KLCC at Jalan Ampang and Sentral Square at Brickfields.
These retail outlets will exclusively retail the products of EMI. The full products of EMI are displayed in the outlets, all the EMI albums of all formats that consumers looking for can be found in these outlets. The outlets give specialist service and provide information on EMI’s products.

            EMI Malaysia’s specialty retail chains can also serve as the places to hold its promotions. The launching of EMI’s new albums can be held at these outlets. Special sales promotion programs may also start from these retail chains. The retail outlets may also connected with lines to provide immediate sales data to the company.

            There are some suggestions for the name of the retail chain, such as  “EMI Archive”, “EMI Zone”, “EMI Planet”, “EMI Classics” or just the “EMI”.

            f) Scanning of the Changes in the Environment

            The growth of information and global telecommunication networks and innovations in digital sound carriers, require record industry to rethink their current operation practices. The industry is going to look toward the administration of rights to authorise or prohibit broadcasting and communications to the public, and away from reproduction and distribution of physical materials.

            Being one of the leading record companies in this country, EMI Malaysia should play its roles to bring the industry towards, or to protect the industry from new challenges. The company must be aware new changes related to technologies and legislation that have taken place abroad. In addition, the company should actively participates in the industry discussions, brings out new ideas and together meet the solutions for the industry.

            It is believed that with the implementation of these recommendations, EMI Malaysia would strengthen its marketing capability and continually maintain its position as one of the top record companies in this country in the next decade.