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8165THAVE,PITTSBURGHPA15219

4124341630

EDTRAVERSARI,SAEMASSOCIATEPROFESSOR
ASHLEYDOBRANSKY,ASSISTANTTOTHESAEMCHAIR
STEVETANZILLI,SAEMDEPARTMENTCHAIR
JESSENAUS,HEADENGINEER

PREPAREDDECEMBER,2015
COPY#1

PioneerRecords

II.ExecutiveSummary
WearePioneerRecords,astudentrunandstudentdrivenrecordlabelthroughPointPark
University.Weprovidestudentsbothentertainmentviaexcitingmusiciansandtheirmusic,as
wellasaninsideopportunitytoworkbehindthescenesandgettheexperienceofworkingona
recordlabel.Studentsalsogettheopportunitytolettheirtalentshine,andtogiveour
audiencewhatitcraves:authenticmusic.WeoperateinconjunctionwithRedCaimanMedia
studios,locatedat8165thAvenue,PittsburghPA15219.Wechurnoutgreattunesandgetour
artistsperformingwheretheywillreachstudentsandourlargeraudience,mainlyduringthe
PointParkUniversityschoolyear,fromlateAugusttoearlyDecember,andmidJanuarytoearly
May.
HereatPioneerRecords,wehaveaphenomenalteamofmanybackgrounds.Whileweare
predominantlyastudentrunrecordlabel,wedohavesomecorestaffmembersfromPoint
ParkUniversityandRedCaimanMedia.Thesepeopleinclude
EdTraversari
,founderandCEO,
AshleyDobransky
,assistanttoEdandoverseerofallthathappens,
SteveTanzilli,
legalliaison
forthelabel,and
JesseNaus
,theengineerandstudiomixer,makingsureallourtunessound
greatforyourlisteningpleasure.PioneerRecordsstrivestoprovideanexcellentproduct,from
marketingtoproductiontomusictoperformance,creatingaproductsynonymouswiththe
PointParkUniversityname.
TheDowntownregionneedssomethingtoshakeitup,andwerehappytofilltheposition.Our
studentsarethefuture,andwereputtingthefutureintheirhandswiththislabel.Notonlywill
theybegettingvaluablerealworldexperienceinthemusicindustry,theyllbeabletoachieve
realworldsuccess.Wearegivingstudentstopnotcheducationwithinthelabelandintheir

PioneerRecords

classesinconjunctionwiththeirworkwithus;leadinguptoit,theyrealreadyreceiving
educationfromleadingprofessionalsintheirrespectivefields.NotonlyareEdTraversariand
SteveTanzilligreatcogsofourbusiness,theyrepowerhousesfromtheirnativefieldand
teacherswithinourSports,Arts,andEntertainmentManagementprogram.Wehavethebest
professionalsatthetopofourbusiness,thetopstudentsworkingthelabel,andweacceptonly
thebesttalenttoourlabel.WearelocatedinPittsburgh,CityofChampions,andweare
contributingtothevalidityoftheaptnicknameforourcity.

PioneerRecords

TABLEOFCONTENTS:
IV.COMPANYDESCRIPTION
V.INDUSTRYANALYSIS
VI.TARGETMARKET
VII.THECOMPETITION
VIII.STRATEGICPOSITIONANDRISKASSESSMENT
IX.MARKETINGPLANANDSALESSTRATEGY
X.OPERATIONS
XI.TECHNOLOGYPLAN
XII.MANAGEMENTANDORGANIZATION
XIII.SOCIALRESPONSIBILITYANDSUSTAINABILITY
XIV.DEVELOPMENT,MILESTONESANDEXITPLAN
XV.THEFINANCIALS

PioneerRecords

IV.CompanyDescription
ThenameofourbusinessisPioneerRecords.Ourmissionstatementisasfollows:
PioneerRecordsisaPointParkUniversitystudentandfacultyrunrecordlabel.Pioneer
Recordsteachesstudentsthebusinessofrecording,marketing,andmanagementofartists,
whileassistingstudentsinterestedinbecomingprofessionalmusicians.Throughvolunteering
withcommunityandmiddleandhighschoolevents,PioneerRecordsstrivestosupportoverall
growthfortheentireartisticandentrepreneurialcommunityinPittsburgh,viathePioneer
RecordsFacebookPage.
TheheadoftheSports,Arts,andEntertainmentprogram,SteveTanzilli,says,Wewant
studentstocomeawayfromthePioneerRecordsprogramwithathoroughunderstandingof
whatittakestobringasuccessfulrecordtotheconsumer,andatthesametime,aseducators,
wewantourstudentstohaveanopportunitytoseewhatacareerintherecordingbusinessis
reallylike.Ourmaingoalistoshowstudentstheprocessofsigninganartist,recordingan
album,andmarketingtheartistandtheproduct,andeverythinginbetween.PioneerRecordsis
a501Cnonprofit,operatingaspartofthePointParkUniversityentity.Ourtrademarksareas
follows:SignedartistHannahJenkins,HannahJenkinsEPSomethingOutofNothing,Pioneer
Recordslogo,andRedCaimanMediaproperties.
PioneerRecordsprovidesmanydifferentproductstoitsaudience,includingagrowing
artistrosterthatincludesourfirstartist,HannahJenkins,andherdebutEP,SomethingOutof
Nothing.Wealsoworktogetperformancebookingsforourartists,aswellasrentingout
recordingspaceinourupcomingstudios,andprovidingsoundengineeringcertificationsto

PioneerRecords

thoselookingtoexplorethearea.Inaddition,PioneerRecordsislookingtoexpandinginto
merchandise,suchasstickers,buttons,tshirts,andmore.
Wehaveawidelyvariedandextremelyskilledleadershipteam.OurteamincludesEd
Traversari,associateprofessoroftheSports,Arts,&EntertainmentManagementprogram,who
overseesmainoperationsoftherecordlabel,SteveTanzilli,chairoftheSports,Arts,&
EntertainmentManagementprogram,whodealswithlegalaspectsforthelabel,Ashley
Dobransky,assistanttothechairoftheSports,Arts,&EntertainmentManagementprogram,
actingasassistanttoEdanddoingvariousworkasneeded,andJesseNaus,ownerandhead
engineerofRedCaimanMedia,whodoessoundengineeringandrecordingforthelabel.The
labeliscurrentlylocatedatpartner,RedCaimanMediaRecordingSpace,at816FifthAve#7r,
Pittsburgh,PA15219,locatedindowntownPittsburgh.Thelabeliswillbelocatedinanew
recordingstudiospacewhichwillbeincorporatedintothenewDowntownlocationforthe
PointParkPittsburghPlayhouse.
PioneerRecordsisstillwithinitsfirsttwoyearsofbusiness,butwevestillhadsome
prettyamazingmilestonessofar:In2014,wesignedourfirstartistandreleasedfirstour
record,HannahJenkinsandherEP,SomethingOutofNothing,whichgarneredlocalmedia
attention,suchaslocalPittsburghnewsstationKDKAinterviewingartistHannahJenkinson
theirmorningshow.
PioneerRecordsisapartnershipbetweenPointParkUniversitySports,Arts,and
EntertainmentManagementprogramandRedCaimanMedia,sothelabelsharesemployees
andconnectionsbetweenbothentities.Inaddition,allartistsarePointParkUniversity
students,drawingfromapoolofartiststhathaveabuiltinfanbasewiththeirownfriendsand

PioneerRecords

fellowclassmates.Thepartnershipnatureofourbusiness,betweenPointParkUniversity
Sports,Arts,andEntertainmentprogramandRedCaimanMedia,allowsforextraneouscash
flowandfundraising,makingitaprimeopportunityfordonationsfrompotentialdonors,seeing
asitissponsoredbyandisanintegralpartofthePointParkUniversitySports,Arts,and
EntertainmentManagementprogram.
V.IndustryAnalysis
A.

SizeandGrowthRateofIndustry
Thesizeandgrowthoftheindustryarevarying.T
hemusicbusinesscontinuestoexpand
intonewmarketsandcreatenewbusinessmodels,attractingmoreuserstodigitalmusic
servicesandbringingartiststoawiderglobalaudience.
In2014,theindustrysglobaldigitalrevenuesincreasedby6.9%to$6.85billion.Forthe
firsttime,theindustryderivedthesameproportionofrevenuesfromdigitalchannels,46%,as
physicalformatsales,46%.
B.

IndustryMaturity
Thematurityoftheindustryhasbeenverywellestablished,andhasbeenprominent
sincethe1900s.MusichasevolvedfromJazzandSwingandtoRapandEDMstyles.Themusic
industryisconstantlyevolvingandPioneerRecordsaimstomaintainafreshstanceinthemusic
industry.Westayrelevantwithwhatispopularandalsoexplorenewupcomingstylesofmusic
thathavetimelesspotential.Thegrowthoftheindustryistremendousandthusisveryhardto
measure.
C.

SensitivitytoEconomicCycles

PioneerRecords

Thereisnotmuchsensitivityfortheeconomiccycle.Duetogrowthoftechnology,
musicisbecomingmuchmoreaccessibleandaffordableforfanstopossess.Musicisreleased
yearroundwithamajorityofthosereleasesaimingforaquarterfourreleaserightintimefor
theholidays.WiththeintroductionofstreamingservicessuchasSpotifyandPandora,musicis
becomingmuchcheaperanditsaffordabilityisincreasing.
D.

SeasonalFactors
SeasonalfactorsareminimalwithPioneerRecords.TheartistssignedtoPioneer
Recordsreleasetheirworkinthespringsemesterforconsistencyinthemarket.Thereisa
blackoutwithinthemusicindustryinthemonthofDecemberasholidaymusicbecomes
popularandmainstreammusicdoesnotgetasmuchairplayoncommercialstations.Since
PioneerRecordsreleasestheirmusicinthespring,therearenotanyforeseeableseasonal
factorsthatwouldimpactourperformance.
E.

TechnologyFactors
Technologyhasreallychangedthemusicindustryinmonumentalways.Themusic
industryisnowgoingdigitalandthenumberofphysicalrecordssoldisdecreasing.Duetothe
changesintechnology,fansarealwaysonthemoveandconnectedtotheirdevices.The
demandformusiconthegoisincreasingandrecordcompaniesneedtoseethatdemandand
fulfillthatrequest.Thetechnologytobuildandmaintainarecordingstudioisaveryexpensive
andintensivelist.Abasicstudioconsistingofamixer,fader,microphones,computers,
keyboards,protools,speakers,drumsandguitarsonaveragetotalsaround$19,100perstudio.
IfPioneerRecordshasthreerecordingstudiostheretotalequipmentcostswouldbe

PioneerRecords

approximately$60,000justforthebareminimumtobegin.Oncethecompanybeginstogrow
therewillbemoreequipmentandmaintenancethatneedspurchased.
F.

Regulation/Certification
Themusicindustrydealswithvariousnecessarycertifications.Therearecertifications
basedonrecordsales,whichissomethingthatPioneerRecordsisunlikelytohavemuchofa
participationin.Duetothecompanysveryrecentlaunch,itisunlikelythatanyofourprojects
wouldbesellingenoughcopiestobecharting.AcertificationthattheRecordlabelisinterested
inisProTools.CertificationslikethisareofferedbyAvidLearning,acompanythatisdesigned
totraineducationalinstitutionslikePointPark.Theyprovidetrainingandproductexpertisein
theircurriculumprogram.BybecomingapartnerofAvidLearning,wewouldbeensuringour
futuresuccesswithuptodatemusicequipment,andfurthercertificationsforstudentsandthe
community.WithourengineersbecomingcertifiedinProtools,theywillbeabletoteachthe
curriculumthemselves,providinganewrevenuestream.
G.

Supply&Distribution
Distributionisgrowinginthedigitalmarketwhiledecreasinginphysicalunits.Thisis
valuableinformationtoknowasarecordlabelbecauseyoucanfocusonsellingdigitalcopies
whichhavelowerproductioncostsversussellingphysicalcopiesthathavevariousdistribution
costsandmanufacturingcostsassociatedwiththem
.(STATS)
H.

FinancialCharacteristics
Financialsarethebiggestareatofocusonwithastartupcompany.SincePioneer
Recordsisbrandnew,weplaceheavyfocusonourfinancialstoensurethatthecompanyisnot
losinganymoneythatwillnotbereturnedlateron.Thisishardtobalancewithastartup

PioneerRecords

becauseinitially,youneedtotakealossinordertogainaprofit.Thisshouldbecarefully
measuredandwillbediscussedfurtheroncethecompanyhasaclearerideaofwhatthe
affiliatedcostswillbe.
I.

AnticipatedChangesandTrendsintheIndustry
Asmentionedabove,musicisgoingdigital,sothedemandforphysicalcopiesisgoing

downhill.However,salesofvinylrecordsareincreasingagain.Thisismostlikelyjustaphase
butPioneerRecordsmaywanttoconsiderdevelopingafewvinylcopiesofourprojectsaswell.
J.

GlobalIndustryConcerns
Globally,musichasgrownhugelythisyear.2015wasthefirstyearinwhichauniversal

musicreleasedaywasestablished.Thisuniversalreleasedatehasnotreducedthelikelihoodof
musicleakingbeforeitsanticipatedrelease.Thisalsoensuresthatalbumshavethesame
amountoftimetocollectsalesbeforetheweeklyalbumchartsarereleased.Nowthataglobal
releasedatehasbeenestablished,musiciansareabletosharetheirmusicwitheaseandfocus
onpromotingtheirprojectsworldwideinsteadoffocusingonlyonselectnetworks.
VI.TARGETMARKET
ForourGeographicsegmentationofPittsburghandsurroundingareas.Thisincludes
urbanandsuburbanneighborhoods.Onesegmentis1824Collegeagedstudentsona
Pittsburghcampuswithdisposableincome.Thesecondsegmentationis2028youngadultsand
professionals,livinginPittsburgh,collegeeducatedwithdisposableincome.Athirdsegment
wouldbe1418yearoldHighSchoolstudentsinthePittsburgharea,concertgoerswitha
passionfortheart.Finally,anothersegmentwouldbePointParkStudentsandFaculty.

PioneerRecords

ThelifestyleandPsychographicsofourtargetmarketareeitherCollegeeducated,highschool
studentsorhasknowledgeofthemusicindustry.Ourtargetmarketisinterestedinmusic,the
artsandtryingnewthings.
ThePurchasingPatternsofourtargetmarketisactiveormoderatelyactivebuying
patterns.PioneerRecordsreleasestheirartistsmaterialinthespringsemesterwithaCD
launchparty,variousperformancesandadditionalformsofcampusexposure.Thisconsistency
inthemarketisbeneficialtothepurchasingpatternsofstudentsbecausethereisan
anticipationforthelabelsmaterial.Thebuyingsensitivitiesofstudentsandthecommunities
willingnesstopayforsocialactivitiesandentertainmentissomethingthatisnecessaryfor
PioneerRecordssuccess.Peoplewithinthemarketarewillingtospendmoneyforlive
entertainmentandthisisbecomingaregularitywithinthecommunity,soPioneerRecordsis
providinganopportunityasanewentertainmentplatform.Themarketsizeissmall/medium
withtrendsofyoungergenerationsenteringthemarket.Pittsburghisgrowingasacitywith
manynewopportunitiesinmusicandmedia.ThisdevelopmentisgreatforPioneerRecords
becausethereisanewfoundneedinthemarketforarecordingstudio.
VII.THECOMPETITION
PioneerRecordsisbringinganewedgetotherecordingindustryinPittsburgh.Onthe
collegiatelevel,ourprogramexceedswhatthecompetitionoffers;ontheprofessionallevel,we
arepartnerswithimportantassetstotheindustryinPittsburgh.PioneerRecordsisthefirstof
itskindinthePittsburghareatoreachintotheprofessionalindustryandbreakoutofasimple
academicprogram,eventhoughourmainfocusisacademic.Thisnewedgeplacesthelabelin
ahigherpositionandhigherdemandinthePittsburghmarket.

PioneerRecords

WYEPcurrentlyhasasimilarprogramwithhighschoolstudents,butitisdifferent
enoughfromPioneerthattheywouldnotbeconsideredcompetition.PioneerRecordsplansto
pursueapartnershipwithWYEPthatwillallowacreativecollaborationbetweenhighschool
studentsandstudentsPointParktoestablishnewskillsandclientswithinthePittsburgharea.
Throughthispartnership,PointParkstudentscanactasmentorsforthehighschoolstudentsin
theWYEPprogram,andinreturn,WYEPcanfeatureourartistsontheirstationandgivethem
complimentaryairplay.WewouldalsolikethispartnershipwithWYEPtoextendtoourCD
ReleasePartiesandpartnerwiththemforthoseevents.
Onalocallevel,PioneerRecordshascompetitioninDuquesneUniversityandCarnegie
MellonUniversity.DuquesneUniversityoffersaBachelorsDegreeinMusicwith
concentrationsinsoundrecording,techperformance,andtechcomposition.Theirrecording
studioismainlyusedfortheiracademicclassesandforinschoolpurposes.CarnegieMellon
UniversityoffersaMusic&Technologymajorwithclassesinmixing,mastering,andrecording.
ThisprogramatCMUismorefocusedonthesciencebehindmusic,andtheirservicesmainly
coveraudiorecordingfortheschoolsmusicalgroupsrecitals.CarnegieMellonsprogramis
focusedonadifferentproductthanours,especiallyconsideringthatitisapartofacademic
curriculum.WhilePioneerRecordsisstillanacademicprogram,weactasarealrecording
studio,signingdifferentartistsandtakingthemallthewaythroughtheproductionprocess.
DuquesneandCarnegieMellon,however,offertheirservicesmorestrictlythroughtheir
majors,andonlyperformthoseservicesforacademicpurposes.WebelievethatPioneer
Recordsservesahigherpurposethatintroducesusandourstudentsintotheprofessional
recordingindustryinPittsburgh,andgreatlydifferentiatesusfromourlocalcompetition.

PioneerRecords

Nationally,PioneersbiggestcompetitionisBelmontUniversityinNashville,Tennessee.
Theirprogramandfacilityincludeafullrangeofstateoftheartdigitalandanaloguerecording
equipmentalongwithanexceptionalcomplementofsignalprocessingequipmentand
microphonesincludingthepersonalmicrophonecollectionoflegendaryproducerandformer
MCAandCapitollabelheadJimmyBowen.BelmontUniversityisamongthebestuniversities
witharecordlabelandtheyarecurrentlymuchmorewellestablishedthanPioneerRecordsis.
Wehaveseentheirsuccessunfoldandwegreatlyadmiretheirprogram;ourgoalistobuildour
programuptothestandardsthatBelmonthasset.
Inthefuture,weplantobeableto
competewithBelmontUniversityandtheirmusicprogram.Aspreviouslymentioned,their
recordinglabelandstudioisoneofthebestandmostreputableinthecountryatthecollegiate
level,andPioneerhasaspirationstomodelourprogramoffofBelmontandtobecomejustas
prestigiousasBelmontis.BelmontwillbePioneersbiggestandmostimportantcompetition.
Consideringthatasofrightnow,PioneerRecordsisnotbringinginanyrevenueor
makinganysales,atleastinitsfirstyear,itsmarketsharedistributionisnexttozero.Our
currentrevenueplanistoofferclassestothepublicthatwillcertifyparticipantsinvarious
areasdealingwithrecordingstudiosandtherecordindustryasawhole.Inthefuture,wehope
togrowthelabelintomoreofaselfsustainingentity,inwhichcaseitwouldhavealarger
marketshare.Fortunately,Pittsburghisaveryyoungandgrowingmarketintherecording
industry,sothereisplentyofroomforfuturegrowthandimprovement.
AslongasPioneermaintainsapartneringrelationshipwithRedCaiman,theywillnotbe
competingwitheachother.SinceitoperatesinpartnershipwithRedCaimanMedia,they

PioneerRecords

cannotbeconsideredcompetitionforPioneerRecords,especiallybecausePioneeriscurrently
moreofaneducationaltool.
FinancialaspectsofoperatingarecordinglabelcouldcreateanentrybarrierforPioneer
Records,especiallyintheearlystagesofdevelopment.Thelabelwillnotseemuchofa
revenueforatleastthefirstyear.Oncethelabelhasasolidfoundation,wewillhaveaplan
thatwillallowustoearnaportionofroyaltieswiththeartists,whichwewilltakeinasrevenue.
GivenplanstoeventuallyhaveourownfacilitywithinPointParksfuturePlayhouselocation,
wemayhavetoconsidertheinitialandcontinuedcostsofnewequipment.PioneerRecords
alsohastoconsiderthecostofpotentiallypayingemployees,whichwillbehardtofigureout
whenwearenotcollectingmuchofarevenueinthefirstyearortwo.Thesefinancialbarriers
arethemostobtrusivetoPioneerRecords.ConsideringthatPioneerRecordsisthefirstofits
uniquekindinPittsburgh,itdoesnotfacemanybarrierstoentry,otherthanfinancially,atthis
pointintime.

VIII.STRATEGICPOSITION&RISKASSESSMENT
Thereareacoupleoftrendstakingplacewithinthemusicindustry,andPioneerRecords
intendstotakeadvantageofthesetrends.Thefirstofthesetrendsismusicstreaming.
Streamingiswhereusersstreammusicforfreewithpaidadvertisements,orforeithera
monthlyorannualchargetolistentomusiccommercialfree,wherelistenerscanlistento
anythingtheydlikeatthedropofahat.Streamingisextremelylucrative,withitgenerating
onethirdofthefirsthalfof2015smusicrevenue,withSpotifyPremiumandotherpaid
subscriptionservicesgenerated$478million,whileSiriusXMRadioandPandoraRadio,

PioneerRecords

premiumradiochannelsthatcreateandbroadcastmuchmorenicheradiostationsforusers,
generated$387million.
Thenexttrendinthemusicindustryishowmusichasgonesocial,goinghandinhand
withthestreamingtrendofmusic.ApartofSpotifyandotherstreamingservices,userscan
nowseewhattheirfriendsarelisteningto,creatingakindofelectronicwordofmoutheffect.
Thiscanbeextremelybeneficialtoartistsandlabelstryingtogetpromotion;theexmore
peoplelisteningtoyourmusic,otherpeoplewillseethesepeoplelisteningtothemusicand
listentoitthemselves,creatingasortofsnowballeffect.SpotifyalsocreatesaDiscover
Weeklyplaylistforusers,whichfindsnewmusicforusersbasedupontheircurrentandpast
musictastes,introducingthemtonewartistsandintroducingartiststonewaudiences.
PioneerRecordshasawidetargetmarket,hittingcollegestudentsandyoungadults,
ages1829,whoaremusicloversandconcertgoerswithdisposableincomethatarePittsburgh
based.ThereisawideaudienceforPioneerRecordstoserve,asthereareamultitudeof
universitiesinthearea,andPittsburghisanupandcomingareaforyoungprofessionals
ThecompetitiveenvironmentisgreatforPioneerRecords,withnoimmediate
competitioninthearea.WhileDuquesneUniversityhasamusicrecordingprogram,itsmuch
morefocusedupontherecordingsideofthings,asopposedtothebusinesssidethatPioneer
Recordsfocusesupon.TheclosestcompetitionotherwiseisBelmontUniversity,whose
programPioneerRecordsadmires.BelmontUniversityfocusesuponboththebusinessand
performingside,butPioneerRecordsintendstostillfocusuponthebusinessside.Thenext
competitorisFullSailUniversity,withheadquartersinFlorida.Theschoolfocusesuponthe
musicbusinessandtherecordingsideaswell,butitsnotaslargeofacompetitorasBelmont

PioneerRecords

University.AnothersmallercompetitorisCarnegieMellonUniversity,whohavethreeclasses
withintheirMusic&Technologymajor,whichhasrecordingaspectstotheprogram.Themajor,
whileitdoestouchupontherecordingsideofthings,ismainlybasedinthesciencesideof
recording,asopposedtothebusinesssideofthings.
Whiletheseareallbothgreatprogramsandcompetitors,PioneerRecordshasitsmore
thanitsfairshareofstrengths.Forexample,thestaffforthelabelisbuiltinfromthevery
structureofthelabel.Thelabelisstudentrun,havingstudentsrunitaspartofclassandthen
asextracurriculars.Thelabelwillalsohaveitsfanbasebuiltinfromstudents,whowillbe
friendswiththoseworkingwithinthelabel,andfriendswiththeartiststhemselves.Inaddition,
thelabelwillhavethenetworkofvariousSAEMstaff,alumni,andvariousconnectionsthrough
theprogram,helpingthelabelevenfurther.
PioneerRecordshasrisk,butwithoutrisk,therewouldbenoreward.Thefirstriskis
thatensuringstudentsworkingforPioneerRecordsgettheproperstudentandclasscredit,
gettingthebestoftheireducation.Whilesomestudentswillnaturallyexcel,somemaynotput
inasmucheffortasothers,possiblytaintingthequalityoftheproduct.Anotherriskisthatall
artistsarestudents,andwillbeprivytotheirownclassworkandrequirements.Schoolworkwill
comefirstforthem,andmayhavetopassonpotentialengagementsduetoschool
requirements.Inaddition,thelabelinitscurrentstate,hasnolegalownershipofanymusic.
Whilethingsaresubject(andmostlikelywill)tochange,themusiciansretainfullownershipof
music,andthelabeldoesnotmakeanyprofitsfromtheirmusic.
TheStrategicPositionofPioneerRecordsisthatwearestudentcreatedmusicand
entertainment,madeforstudentsjustlikethem.PioneerRecordssupportsandnurtures

PioneerRecords

studenttalent,bothbehindthescenesandonstage,pushingthemtobethebesttheycan
alwaysbe.WealsoprovidetopnotchproductionandinstrumentalperformanceviaRed
CaimanMedia,whoalwayspromiseapristinequalityofmusic.PioneerRecordswillalwayssign
atleastoneartistperyear,andintheyearstocome,willonlycontinuetosignmoretoitsartist
roster,notonlysupportingthePointParkUniversitycommunity,butthePittsburghcommunity
atlarge.

IX.MarketingPlanandSalesStrategy
PioneerRecordsmessagewastobecomeaneducationalentityofPointParkUniversity
wherestudentscanlearntheprocessofsigning,recordingandlaunchingforaCDrelease.
PioneerRecordsaimstoinstillapositiveeducationalexperienceforPointParkUniversity
studentstolearnthebehindthesceneseventsregardingplanningarecordrelease.Theidea
currentlyfeaturesseveralclasseswithinPointParkssports,artsandentertainment
managementcoursesworkingtogetheronthisrecordproject.
Themarketingstrategythatwouldbestfittherecordlabelwouldbetodoablanket
promotion.FromtheinitialcollaborationwithRedCaimanlaunched,PioneerRecordsshould
focusonspreadingthenewstolocalnewsoutlets,brandingthemselveswithinthelocal
performanceenvironment.
MarketingforPioneerRecordsisessentialtotheirsuccess.Withanystartupcompany,
marketingisthebestwaytospreadnewsonwhatyourcompanyhastoofferandwhythe
companyisbeneficialtothecommunity.PioneerRecordsshouldsendtheirartistsalbumto
localradiostations,talentbuyers,venuesandmediaoutlets.Bystartingtobuildtheirpresence

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inthePittsburgharea,themessageofPioneerRecordsbeginstospread.Theartistssignedto
PioneerRecordsshouldbookperformancesoncampuswhilethereisnofeeforspacerental
andtheycanbegintobuildafanbase.Thisisagreatstartingpointfortheartistsandthelabel.
Byhostingalaunchpartyoncampus,the
PointParkUniversityandRedCaimanrecordsarethetwomostobviouspartnershipsfor
PioneerRecords.Withtheirpartnership,PioneerRecordshasbeenabletogainequipmentvia
RedCaimantorecordaPointParkUniversitysstudentsEP.Anotherpartnership,whichwould
beofgreatbenefit,wouldbeWYEP.WYEPallowshighschoolstudentsasimilarexperienceto
whatthegoalofPioneerRecordsis.WithapartnershipbetweenWYEPandPioneerRecords
theywouldalloweachothertogrowandcanprovideadditionaleducationalexperiences.
PioneerRecordscancontinuetoestablishpartnershipswithlocalnewscompaniessuchas
KDKAandThePostGazetteinexchangeformediacoverageofalleventsandupdates
throughouttherecordingprocess.Additionally,PittsburghCBSRadiowouldbeagreatpartner
becausetheyarereachingintothesametargetmarketthatPioneerRecordsfocuseson.With
thenewstudiospaceinthePittsburghPlayhouse,PioneerRecordscansellnamingrightsto
variouscompaniesandpeopletotheirindividualrecordingstudiosasawaytobringinrevenue.
GeorgeRowlandWhite,iHeartMedia,CBSRadioandKDKAwouldallbegreatcompaniesto
namestudiosafterduetotheircollaborativedrivetobringinnovationanddevelopmenttothe
Pittsburgharea,specificallywiththeyoungeraudiences.
SocialMediawouldbetheeasiestwayforPioneerRecordstopromoteitself.Oneofthe
greatthingswithsocialmediaisthatitisfairlyinexpensive.Theyhavetheopportunityto
announceliveperformances,previewmusicreleasesandsharelabelinformation.Additionally,

PioneerRecords

adomainwebsitewouldbenecessaryforPioneerRecordssuccess.PioneerRecordswebsite
wouldallowthemtheopportunitytoshareastepbystepdiagramofhowtherecording
processisgoing.Theirwebsitewouldbeagreatoutletformerchandisesalesandalbumsalesif
thatwouldbearoutetogointoinafewyears.
Withthegrowingageoftechnology,theneedtogodigitalisveryhigh.Physicalrecord
salesaredecreasingandthedemandfordigitalmusicinskyrocketing.Thisisagreattiptoknow
becausePioneerRecordscannowaimforamoredigitalpresenceinadditiontophysicalCDs
andcanreformtheirsalesforceandstructuretobestsuitthecurrentmarket.

X.OPERATIONS
Operationsoccurintwoareas,onPointParkscampusandatRedCaimanStudios.Every
yearPioneerRecordssearchesfortheirnextPioneerStar.OnlyPointParkstudentsareable
tosendsubmissionstobeconsidered.Thisprocesshelpsestablishqualitycontrol,helpingto
setthebrandupforsuccess.Oncepicked,thestudentwillbesignedontotherecordlabel.The
studentwillreceivestudiotimeandwillhave300copiesoftheirEPproduced.
Laborrequirementsincludeengineerstorecordandmixthemusicfromthestudiotime.
EngineersandproducerswillalsobeneededtomaketheEPs.Websitetechniciansand
advertiserswillbeneededtoimproveuponthewebsite,socialmediaplatforms,releaseparties
andbookings.Legalassistancewillalsobeneededtosecureandmaintainintellectualproperty
forsongwritingandtheartists.
Atthistime,PioneerRecordsdoesnotowntheirownequipment.TheUniversity
producedrecordlabelisworkinginpartnershipwithRedCaimanStudiostogivethestudents

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thenecessaryequipmenttheyneedtoproducetheirproduct.Theinventorythatthecompany
needstomanageincludesthe300EPsperartist.Theywillalsoneedtomanageanythingbeing
usedtoreleaseparties.
PioneerRecords,thoughnotamanufacturingortechnologicalcompany,needtotake
partinresearchanddevelopment.Byresearchingwhatcompetitorsaredoingandhowthey
relatetotheircustomers.Stayingontopofsocialmediaplatformsandcateringtowhatcollege
studentsarelookingfor.Developingcontractsandgainingknowledgefromresearchinglegal
processes.

XI.TechnologyPlan
A.

TechnologyGoalsandPosition
PioneerRecordsneedstocapitalizeonthesocialmediaaspectandthefactthatrecords
aregoingdigitalinsteadofphysical.Withthegrowthoftechnology,somebodywithinthe
companyshouldbefocusingonwhatupcomingtrendsarehappeningintheindustryandtrying
tomaximizethesenewplatformsinordertosellrecordsandincreasebrandawareness.
B.

InternetGoalsandPlan
PioneerRecordsneedstodeveloptheirowndomainsothatconsumersknowwhereto
goinordertogainknowledgeonthecompanyandtheirartists.Currently,PioneerRecordshas
ablogcreatedundertheWordPressprogrambuttheywillneedtoswitchtheirwebpresence
toadomaininordertostayrelevantandeasilyaccessible.
C.

SoftwareNeeds

PioneerRecords

Operatingarecordingstudioisverydemandingandrequiresgreatamountsofsoftware
andhardware.Therecordlabelwillspendagoodbitofmoneyontheirequipmentandmaking
surethattheyhavethebestqualitysoftwaretangibleontheirbudget.RecordCompanieswill
needtoinvestinsoftwarethatwillproducegreatqualitybutalsowillremainrelevantforyears
tocome.
D.

HardwareNeeds
Hardwareforthecompanyhasaverysimilarapproachtosoftware.Inordertocompete
withtheBelmontstudio,PioneerRecordsneedstoinvestinthefollowinghardwareneeds.
EquipmentforoneofBelmontsstudioincludes...
MovingCoilMicrophones
AKGD112,Audixi5(4),BeyerM201(3),M422,ElectroVoiceRE20(2),635N/D(2),
Heider/FilmwaysCustomDirect,Box(4),SennheiserMD421(4),MD441(5),ShureSM7b(2),SM54,SM57(6),
SM58(4)
RibbonMicrophones,
BeyerM130(2),BeyerM160(2),RCABK5B(2)
CondenserMicrophones,
AKGC414(6),AKGC451/CK1(2),AKGC451/CK2,AKGC426StereoMic,Audio,
Technica4051(2),CountrymanType85DI(2),MBElectronicsC520,NeumannKM84(2),NeumannU47FET(2),
NeumannU87(2),ShureSM81(3)
Console,
API2098:32inputsx16bussesx24monitor(API550A&550eq)
MultitrackRecorders,
MTR90III216track/24trackanalogmultitrackrecorder,iZRadar24trackdigitalmultitrack
recorder(backup:DVD,CDR,8mmExabyte)
TwoTrackRecorders.
ProTools6.8withMAudioAP192card,StuderA802trackanalogrecorder
Effects,
AKGBX20SpringReverb,EMT140stereoreverberationplates(2),EchoChamber,TapeDelay(2Revox
PR99)
OutboardMicPreamps&Processors,
Altec438Ctubelimiter(2),Ampex351tubemicpreamp,AphexCompellor
(stereocompressor/limiter),dbx160compressor,dbx165Acompressor,GatesSA38tubelimiter,KepexIInoise
gates(8channels,withkeyinputs),LangPEQEqualizer(2),Neve1272micpreamps(2),TeletronixLA2A(3),UREI
1176LNcompressor(2).UREI11782channelcompressor
Monitors&Headphones
AltecA7(studioloudspeakers),Altec604ccontrolroommonitors,FostexT20RP
headphones,Mackie824,YamahaNS10M

PioneerRecords

Amplifiers
McIntosh2100

Dependingonthenumberofrecordingstudiospaces,eachpieceofhardwarewouldneed
purchased.Additionally,thisequipmentneedstomaintaingoodstandingandshouldbeableto
beupgradeddependingontheirsuccessandtheamountoftimebeingused.Onaverage,basic
studioequipmenttotalsapproximately$20,000perstudiobooth/room.
E.

TelecommunicationNeeds
Communicationandtelecommunicationisvitalinthisindustry.Artistsareunableto
bookshows,producemusicandcreateamarketingplanbythemselvessocommunication
betweenpeopleiscriticalinanysituation.Recordsarebeingsentacrossthenationtobe
producedandtelecommunicationwouldbeoneofthemostimportantpiecesinthisprocess
justtoensuretherecordsoundsasintended.Alsowiththegrowingtechnologymeetingsare
becomingaccessibleworldwideandcommunicationneedstobedefinedandadaptable.

(PHONESNEEDEDFORSTUDIO)
F.

TechnologyPersonnelNeeds
TechnologyPersonnelissomethingthatisgrowinginthisindustryandshouldbe
focusedonverymuch.Thereshouldmemarketingandsocialmediaworkersthatareableto
developgreatwaystopromotetheirproductsandtheirartists.Eachofthesepeopleshouldbe
knowledgeableontheirfieldsandabletoadapttonewformsoftechnology.
XII.MANAGEMENT&ORGANIZATION
WithPioneerRecordsexistinginpartnershipwithRedCaimanMedia,ownerandhead
engineerJesseNauswillbeanimportantassettothelabel,aswillbeotheremployeesand
engineersofRedCaiman.NausearnedaBachelorsofSoundRecordingfromDuquesne

PioneerRecords

UniversitysMaryPappertSchoolofMusic.OtherengineersatRedCaimanincludeotherfellow
musicgraduatesofDuquesneUniversity,aformermusicproducer,andaGrammyaward
winner.
PioneerRecordsisPointParkUniversitysveryownrecordinglabel,sootherthanthe
engineersatRedCaiman,PioneerRecordsisentirelyrunbyPointParkaffiliates.TheSports,
Arts,&EntertainmentManagement(SAEM)programatPointParkistobecreditedwiththe
initialcreationoftherecordlabel,sofacultyandstudentsoftheprogramwillbeimportant
assets.AssociateprofessorssuchasSteveTanzilliandEdTraversarithelatterofwhomisa
formerconcertpromoterwillbeheavilyinvolvedinthelabel,aswellasAshleyDobransky,
AssistanttotheChairoftheSAEMdepartment.Eachsemester,PioneerRecordswillalsoutilize
anumberofSAEMinterns,whowillassistthelabelwitheverythingfromwritingcontractswith
newartiststoplanningtheirCDreleaseparties.

DuringtheearlyyearsofPioneerRecords,PointParkwilluseanendowedscholarshipto

coversomeofitscostssuchasstudiotimeandmarketingmaterials.RedCaimanhasagreedto
chargePioneerRecordsbelowmarketratesforutilizingitsservices.Futurepartnershipsalso
openthedoortogrants,donations,andotherpossiblerevenuesources.Intime,Pioneerhas
thepotentialofbeingaselfsustainingentitywherethelabelwilltakepartinreceivingroyalties
ontheirwork.

ThecultureofPioneerRecordsreflectsthatofourtwobiggestinfluencers,PointParks

SAEMdepartmentandRedCaimanMedia.ThecultureofPioneerRecordsisonethatallows
ourpeopletoproducequalityworkandperformanceswhilemaintainingafriendlyatmosphere.
Thistypeofculturewillgreatlybenefitthelabel,consideringthatthemajorityofourclientswill

PioneerRecords

berecordingforthefirsttime;beingabletoworkwithusinapersonablemannerwillbe
greatlyvaluedbytheserecordingnovices.

XIII.SocialResponsibility&Sustainability
A.

SocialResponsibility
PioneerRecordsstrivestoprovidethreemainthingstoitscommunity,andtheCityof

Pittsburgh:culturalenrichmentforthecity,educationalopportunities,andcommunity
outreach.PioneerRecordswillprovideculturalenrichmenttothecity,throughperformance
opportunitiesfromitsartistroster,performingforfreeorlowcostofatvenuesaroundthecity.
TheseopportunitiesincludeperformancesattheHolidayMarketinMarketSquare,
performancesatMarketSquareFarmersMarket,andvariousfestivalsaroundthecity,suchas
theThreeRiversArtsFestival.
EducationalOpportunitieswillbeprovidedviamasterclassesforstudentstaughtby
artistsontherosterandengineerswithintherecordingspace,whichwillbefreeforPointPark
students,andasmallnominalfeefornonPointParkstudents.ThiswillstayinlinewithPioneer
Recordseducationalmissionwhilealsoprovidingeducationthatservesthecommunityandthe
PointParkculture.PioneerRecordsisalsolookingtopartnerwithWYEPRadio,tomentorhigh
schoolstudentsinterestedinthemusicindustryandtogivethemsomeonetolookuptoand
haveforhelp.Itwillnotonlyeducatethehighschoolstudents,butalsothecollegestudentsby
showingthemwhatitsliketobeamentorandaleader.
ThefinalpartofPioneerRecordsmainsocialresponsibilitymissionisitscommitmentto
servingitscommunity.Notonlywillitdosothroughtheaforementionededucationaland

PioneerRecords

culturalenrichmentinitiatives,butitwillhaveastrongcommitmenttoperformingcommunity
service.NotonlywillPioneerRecordsparticipateinstudentcommunityserviceeventsand
initiatives,itsartistswillberequiredtoperformaminimumof20hoursofcommunityservice
peryear,inadditiontotheirbusyschoolschedules.
B. CompanyPolicy
PioneerRecordshasnotoleranceforbullying,andanybullyingwillbedealtwithswiftly
andharshlybytheheadsofthelabel.Theartistswillalsohaveamoralityclausebuiltwithin
contracts,thatiftheybehaveinamannerthatisnotinalliancewiththevaluesofPointPark
UniversityorPioneerRecords,theircontractissubjecttoterminationandmaybeterminated.
C. SocialResponsibilityCertifications
PioneerRecordswillworkinconjunctionwithSocialResponsibilityexpertstogainthe
SA8000certification,whichworkstodevelopandmaintainsociallyresponsibleandacceptable
practiceswithintheworkplace.Wealsowillworktogrowourbusinessresponsiblyand
honestlyinconjunctionwiththeISO26000requirements,workingwiththeInternational
OrganizationofStandardsbasedinGeneva,Switzerland.Thesestandardsandcertificationswill
continuetopushPioneerRecordsasanoteworthyorganizationforitsethics,andpushPoint
ParkUniversitytoanevenhigherstandardofethicsaswell.Notonlywillthesestandardsmake
usethical,theyllincreaseproductivitybyeliminatingwasteanderrors,andhelpincrease
potentialprofitsasaresult.Thesecertificationswillputusonanevenhigherplayingfield,
helpingusreachthelevelofsuccessourartists,students,andUniversitytrulydeserve.
D. CommunityInvolvement

PioneerRecords

PioneerRecordswillstrivetoworkwithinitscommunity.Thelabelwillstrivetogetits
artiststoperformatengagementsforfreeoraverylowprice,toensurethatourartistsare
enrichingtheexperienceforeveryonewithinthecityorattendingtheevent,suchasthe
FarmersMarketorHolidayMarketinMarketSquare.PioneerRecordswillalsohost
educationalseminarsandmasterclassesforstudentsandthepublicalike,engagingitselfwith
notonlythePointParkcommunity,butalsothePittsburghcommunityatlarge.Italsoplanson
requiringcommunityservicefromartistswithinitsrosters,continuinggoodwillfromthelabel
andPointParkUniversityoutuntothePittsburghcommunity.
E. Sustainability
PioneerRecordswillbeworkingtogainanISO26000certification,makingsurethatthe
labelisgrowinginahealthy,responsibleway.Thelabelwillalsoexistandcarryoutoperations
inpreexistingplaces,makinguseofmultipurposespaceasopposedtousingsingleusespaces.
Inaddition,thelabelwillstrivetousethemostsociallyresponsibleprintingmethodsfor
releasingphysicalmusic.

XIV.Development,Milestones&ExitPlan
Initsveryearlystages,PioneerRecordswillexistasanentityunderPointPark
UniversitysSports,Arts,&EntertainmentManagementprogram.ItwillonlysignPointPark
artistsandutilizePointParkstudentsasemployeesforthefirstcoupleofyearswhileits
foundationisstillbeingestablished.Aswelookintothefuture,wewouldliketoremainas
studentrunaspossible,asoneofthelabelsmainpurposesisforeducationaluse;thereisalso
aneedtoonedayhirepartandfulltimeemployeesinadditiontointerns,andthenbeableto

PioneerRecords

paythemaproperamount.Asforsigninginthefuture,weplanoneventuallysigningartists
whoarenotstudentsatPointPark.
Oneofourlongtermcompanygoalsistoincreaseouropportunities.Wewouldliketo
increaseacademicopportunitiesforstudentstobeinvolvedinthewholeprocessfromstartto
finish.Witheachyear,weplantoincreasethenumberofartistssignedsothatstudentscan
haveamorehandsonapproach.Wewouldalsoliketoincreaseourfundingopportunities,
betweendonors,grants,fundraisers,androyalties.
GrowingPioneerRecordswouldreallybeabigaspectofmarketing.Byproviding
PioneerRecordswithexposuretolocaltvstudios,recordstationsandliveperformancespaces,
PioneerRecordswillgainbrandrecognition.OnethingthatPioneerRecordsshouldcapitalize
onistheirpartnershipwithWYEP.Thispartnershipisfantasticbecausetheyautomaticallyhave
aconnectiontothatnetwork.BybranchingoutsideofthedowntownareaandPointPark,they
areallowingthemselvestogainrecognitionthroughouttheentirePittsburgharea.Pioneer
Recordshasfullintentionofgrowingtheirartistslineupandtheirdiscography.Withthe
additionofJohnandthegrowthofHannahsprojects,PioneerRecordsisbeginningtodevelop
themselvesasacommunityforartistry.Inthefuture,PioneerRecordswillbelookingtosign
artistsoutsideofthePointParkcommunity,oncethatactionismade,therecordlabelwillgrow
extremelyandwillgainrecognitionwithinWesternPA;similartoprogramslikeDuquesneand
Berklee.
OurbiggestmilestonesincludesigningdebutartistHannahJenkins.HannahsdebutEP,
SomethingOutofNothing
wasreleasedinthespringof2015.Theprojectisthefirst
collaborationbetweenPioneerRecordsandRedCaimanMedia.ThisEPwasreleasedalongside

PioneerRecords

aCDlaunchpartywhichwasplannedwiththerecordlabelandtheCampusActivitiesBoard.
HannahperformedonPittsburghTodayLivewhichwasagreatopportunityfortherecordlabel
togaincityrecognitionandexposuretoJenkinsmusic.HannahisstillpromotingherEPwith
variousshowsthroughoutthePittsburgharea.PioneerRecordsbeganthesearchfortheir
secondartistinthebeginningoftheFall2015semester.TheysignedJohnKonoRushlanderas
anadditiontotheirroster.JohnKonoRushlanderisanindierockartistwhichisverydifferent
fromthestyleofJenkinswhichworkstoshowtheversatilityoftherecordlabel.JohnsEPwill
bereleasedinthespringof2016withaverysimilarlaunchdesignasJenkins.Thefirstrecording
sessionforJohnsprojectisscheduledforNovember11,2015.
TherisksforPioneerRecordscouldbeveryextensiveshouldtheydecidetoleavetheir
collaborationwithRedCaimananddevelopeverythingthemselves.Currently,sincethelabelis
underRedCaimantheyarethemostresponsibleintermstorisks.Legally,recordlabelsneedto
acquiretherightstotheirsongs,avoidcopyrightandalsoestablishthemselveswithinmusic
databasesnationally.SinceRedCaimanisthemaincontactfortheselegalelements,Pioneer
Recordsdoesnothavetoestablishanyoftheseentitiesthemselvesunlesstheywoulddevelop
tobetheirowncompanyandleavetheirsponsorshipwithRedCaiman.
ExitStrategyforPioneerRecordswouldberathersimplecurrentlyuntiltheyestablish
themselvesasasolocompany.Shouldthecompanyneedtodissolve.PioneerRecordswould
needtocontractuallyendtheirsponsorshipwithRedCaimanMedia.Whenleavingacompany
youneedtobecarefulwhenpullingmoneybecauseyoumayhavenegativetaximplications.
Additionally,therecordlabelwouldneedtoendtheirsponsorshipwithWYEP.Althoughthisis
notamajorcollaborations,itcouldleaveanegativeimpressiononthelocalcommunity.

PioneerRecords

XV.TheFinancials
A. IncomeStatement
B. CashFlowProjections(12Month)
C. BalanceSheet
D. SourcesofUseofFunds
E. PlanAssumptions(Notestofinancialdocuments)
F. BreakEvenAnalysis
*CurrentlywiththefinancialsituationofPioneerRecordswewouldhaveanetlossof$45,000.
However,asPioneerRecordsbeginstolaunchwewillbegoingtovariouscompaniesand
organizationstoreceivegrantsanddonations,suchasthe$15,000donationannuallyfroma
PointParkdonor.
*Weplantomakeupthelostincomethroughfundraising,grants,donationsandother
miscellaneouscontributions.

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