Darren Skanson

Overview

From a very early age Darren Skanson had a burning passion for music. His

passion grew deeper when realized how much excitement a crowd has when

watching a musical performer. In 1989, Darren graduated from Moorhead State

University with a BA in music.

Darren's career first began by being a lead guitarist in a heavy metal band.

The band, Mata Hari, split up in 1993. Darren then joined Malcolm Watson, who

was a classical violinist, at Watson and Company. Darren and Malcolm

produced the third CD for Watson and Company. Shortly after the success of

producing this CD the duo traveled nationwide performing. Within a year the

sales had increased from $100,000 to $250,000. Malcolm wanted to move a little

more slowly than Darren in expanding their business to greater heights. Since

Darren was ready to move on, he left Watson and Company to form his own

company.

Darren had a vision to record, produce and sell his own music, as well as the

music of other artists. Jennifer, a long time friend of Darren's was the booking

agent for his tour. Jennifer did not share the same vision with Darren so they

parted ways and moved on.

Trying to perform, handle CEO duties and handling the promotional marketing

aspect of his business was getting to be too much for Darren. Business was

getting to be complicated. He decided to hire a guy named Andy Harling, who

was a classical guitarist to help with the office duties of the company and to

suggest/implement ways to make CCM function more efficiently.

Darren turned down two performances offered by Jennifer since he was

already booked. However, he did not want to lose the business and the chance

to get his name out there. Darren sent Andy to perform at the two shows. Andy

was very successful and gained the knowledge of how the performances

operate. Darren became a little nervous when he realized that Andy could leave

him and become his competition. Darren then signed Andy to a contract and

launched Andy's first CD.

Over time, Andy's responsibilities grew with his performances that Darren

hired an assistant for him.

Recording and productions costs were high for musicians to produce their

records/CD's. Digital then came into existence and cut the costs of production.

Music is sorted by labels. Because of the low costs in digital recordings it was

possible for smaller companies to exist. CCM was one of the smaller companies.

Darren decided that he needed to somehow market and promote his music

that would increase profits for CCM and promote his product line.

Issues

* Darren doesn't have enough knowledge of the business piece of operating a

business. It seems as though he also lacks knowledge of costs that it takes for

promotion, marketing and distribution.

* Darren wants to expand his company and profits yet he seems a bit uncomfortable

about competing with other classical guitarist.

* Since Darren's music was a micro label band he had to rely on himself to find the

means of which his music could be heard. Higher label artists' could rely on

radio stations to promote their music.

* It seems as though Jennifer is holding him back from exploring other performance

venues.

S.W.O.T Analysis

Strengths

1. Both direct and website sales have increased. Website sales increased from

$760.50 in 1999 to $6,419.35 in 2000. Mail and phone orders have more than

tripled going from $2928.72 in 1999 to $11,442.24 in 2000.

2. Cost of Goods sold has decreased from $36,468.62 in 1998 to $22,034.33.

My analysis would show that digital recordings have cut the costs of production

distribution which has allowed this decrease in COGS.

3. Darren has determination and is very motivated. He has been successful with his

product line.