Joanne has looked into HMV to help our rebrand. Below is what she found.
We are rebranding HMV!
We are rebranding HMV!
Why rebrand HMV?
After much deliberation over what to rebrand we decided to do something that will fit in with our app for entertainment purposes. Over recent years HMV has become a place that has lost popularity due to other stores that offer a cheaper pre-owned alternative. Those stores such as CEX (Computer Entertainment eXchange) and Trade Nation have sold games and entertainment at cheaper prices than the original ones at HMV. The reason to rebrand HMV is to introduce new aspects to the store and reduce prices.
After much deliberation over what to rebrand we decided to do something that will fit in with our app for entertainment purposes. Over recent years HMV has become a place that has lost popularity due to other stores that offer a cheaper pre-owned alternative. Those stores such as CEX (Computer Entertainment eXchange) and Trade Nation have sold games and entertainment at cheaper prices than the original ones at HMV. The reason to rebrand HMV is to introduce new aspects to the store and reduce prices.
Brand History.
HMV has been around for over one hundred years, originally standing for His Masters Voice before becoming a mnemonic of its original name. Originally starting as, a gramophone company the first store to be dedicated to HMV was opened in Oxford Street, London in 1921. It took until 1966, for HMV to branch outwards and start expanding their stores. Throughout the 1960’s and 1970’s HMV increased their expansion into more stores and by 1976 has started surpassing other companies and taking over the popularity of the company Our Price. HMV’s growth continued into its third decade with the company reaching over 320 stores. Even celebrating its 75th anniversary in 1996. HMV started acquiring other chains and stores, including Waterstones. However, in January 2013 HMV went into administration, putting 4350 employees at the risk of redundancies. In February of 2013 it was announced that 66 stores had been identified for closure, however, later that month the company that owned HMV at this point Deliotte announced that a further 20 HMV stores would be susceptible to closure. In April 2013 Hilco announced that it was taking over HMV and also saving over 140 stores. Over a two-year period, HMV regained its popularity and as of 2015 was the largest physical copy music provider. However as of August 2014 HMV had decreased its stores from 320 (when at its peak) to having 125 across the United Kingdom.
HMV has been around for over one hundred years, originally standing for His Masters Voice before becoming a mnemonic of its original name. Originally starting as, a gramophone company the first store to be dedicated to HMV was opened in Oxford Street, London in 1921. It took until 1966, for HMV to branch outwards and start expanding their stores. Throughout the 1960’s and 1970’s HMV increased their expansion into more stores and by 1976 has started surpassing other companies and taking over the popularity of the company Our Price. HMV’s growth continued into its third decade with the company reaching over 320 stores. Even celebrating its 75th anniversary in 1996. HMV started acquiring other chains and stores, including Waterstones. However, in January 2013 HMV went into administration, putting 4350 employees at the risk of redundancies. In February of 2013 it was announced that 66 stores had been identified for closure, however, later that month the company that owned HMV at this point Deliotte announced that a further 20 HMV stores would be susceptible to closure. In April 2013 Hilco announced that it was taking over HMV and also saving over 140 stores. Over a two-year period, HMV regained its popularity and as of 2015 was the largest physical copy music provider. However as of August 2014 HMV had decreased its stores from 320 (when at its peak) to having 125 across the United Kingdom.
SWOT Analysis
The strengths of HMV are that it is a long lasting store that has been a household and highstreets name for 95 years, it has been popular since the 1970’s. Another strength of HMV is that it sells a lot of entertainment devices under one roof. When albums are released they sometimes do band performances across their UK stores offering customers a chance to meet and see their favourite bands and artists perform in store.
HMV’s weaknesses are that it is overpriced and has more competition from online and cheaper stores, as well as physical cheaper stores. It offers a paid loyalty card of £3 a year when other stores hand them out for free. The stores look dark and bleak and even sometimes cluttered. They look like they do not have enough space for some of the stock. They pile things up on the sides and behind each other.
The Opportunities that HMV has to expand and increase its stores once again, HMV can offer a new recycling idea which people can bring in their DVD’s and recycle them for a voucher or other items from the store. HMV will start offering cheaper second hand alternatives to the DVD’s and CD’s that they sell. Another opportunity for HMV is to like Waterstones open café’s but with a twist when sitting at the table having a music system on the table that plays music available in the store and having a system that allows the customers to change the music themselves and they will only need to bring their earphones to the store.
The biggest threat the HMV has are those stores that have cheaper prices for the same product only being second hand. Also having a problem with the digital age and the availability of musical networks such as Spotify, Tidal and even Apple Music which has recently changed from iTunes. This threat is not only from musical streaming services but film and television streaming services such as Netflix and Amazon Prime.
The strengths of HMV are that it is a long lasting store that has been a household and highstreets name for 95 years, it has been popular since the 1970’s. Another strength of HMV is that it sells a lot of entertainment devices under one roof. When albums are released they sometimes do band performances across their UK stores offering customers a chance to meet and see their favourite bands and artists perform in store.
HMV’s weaknesses are that it is overpriced and has more competition from online and cheaper stores, as well as physical cheaper stores. It offers a paid loyalty card of £3 a year when other stores hand them out for free. The stores look dark and bleak and even sometimes cluttered. They look like they do not have enough space for some of the stock. They pile things up on the sides and behind each other.
The Opportunities that HMV has to expand and increase its stores once again, HMV can offer a new recycling idea which people can bring in their DVD’s and recycle them for a voucher or other items from the store. HMV will start offering cheaper second hand alternatives to the DVD’s and CD’s that they sell. Another opportunity for HMV is to like Waterstones open café’s but with a twist when sitting at the table having a music system on the table that plays music available in the store and having a system that allows the customers to change the music themselves and they will only need to bring their earphones to the store.
The biggest threat the HMV has are those stores that have cheaper prices for the same product only being second hand. Also having a problem with the digital age and the availability of musical networks such as Spotify, Tidal and even Apple Music which has recently changed from iTunes. This threat is not only from musical streaming services but film and television streaming services such as Netflix and Amazon Prime.
