MTV goes to Africa
...eir business globally. The company has done a good job of taking advantage of this opportunity. The company is very successful in terms of maintaining and increasing market share. It seems like MTV constantly seeks new segments and markets. Although there are many competitors in both the domestic market and the international market, MTV is able to stay ahead of their competitors and continues to be a leader in the multimedia music industry. MTV effectively builds strong brand equity by using various marketing mixes. MTV understands their target customer well, and is able to create superior quality in the mind of their target audiences. For example, MTV realizes that HIV/AIDS is an epidemic in Africa. MTV is able to use this unique issue in order to customize their marketing strategy to serve the local audience’s concerns. MTV wants their target African audience to perceive the company as ethical and socially responsible by advertising that MTV’s establishment in Africa is an effort to raise HIV/AIDS awareness and to fight it. This is just a marketing strategy that MTV uses to differentiate themselves with their competitors, especially the local ones that already have a strong presence in Africa. By building an image of social responsibility, it makes it easier for MTV to enter the new African market and attract new customers in order to meet the company objectives. This is an example of how effectively MTV communicates to their target audiences that they’re doing something to address current issues. Therefore, the company is able to attract and retain their customer base. This drops straight to the company’s bottom line, allowing them to gain market share. The demographic target audience of MTV is 18 to 24. The reason behind this is that at this age these young people are thought to have a lot of disposable income. They’re also brand-sensitive. That is, they haven’t decided the brands that they will spend the rest of their lives buying. MTV targets these young audiences because their minds have not yet formed commercially. MTV can brand them. Ultimately, what they’re watching on MTV is a “slice of life which has been calculated and positioned in a way to sell certain products, clothes, music, and a sort of lifestyle” Their global operation is fueled by the exchange of creative ideas and cultures. The African continent is made up of many different cultures and languages. This represents a great opportunity for MTV to expand their business in this continent. This kind of climate obviously works in the company’s favor, because various cultures would fuel the company. Launching MTV in Africa would empower MTV to expand rapidly and thoroughly. MTV plans to start their channels in English, but they can also offer locally produced music videos that is in the local language. MTV has many competitive advantages, such as the company’s experience in strategically globalizing its presence around the globe. In 1987, the company expanded into Europe. It was a total disaster because what was popular in America was not popular in Europe. Europeans were not big fans of popular American programming. MTV was able to learn from this experience that, although the culture seems to be very similar around the world, ignoring key differences cause big failures for companies who wish to expand globally. They then developed a different business model to work with the locals to provide local channels. They tailor their programs to best serve their target audience of the specific location. They use their localization strategy to do business around the globe. But this is not to say that they don’t feature American artists. Local artists are featured along with diverse international urban artists, some of which are American. But American programming is not the bulk of their programming—MTV mainly focuses on locally produced content. Another competitive advantage is that the company has “regional infrastructures that support local channels across all brands” across the continent. The competitors, especially the new global companies, don’t have this kind of experience and the company infrastructure to support their operation. MTV Networks has 100 channels with 90 consumer websites. The company is a multi-platform business. MTV has done a good job of understanding the industry trends in various countries and staying ahead of these trends. The company often sets new limits. For example interactive shows were first used by MTV. MTV Networks uses consumer websites to generate revenue in advertising and to increase awareness of the company’s brand. MTV plans to include wireless and broadba...