Innovations in the Music and Entertainment Industry in India

Innovations in the Music and Entertainment Industry in India

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Case Details:

Case Code : BREP003
Case Length : 15 Pages
Period : 1991-2004
Pub Date : 2005
Teaching Note :Not Available
Organization : -
Industry : Music and Entertainment Industry
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction contd...

Besides adaptation to high-end digital technology, the entertainment industry was also witnessing rapid development of state-of-the-art studios and post production facilities.

Layout planning, publicity and advertisement efforts and the creation of a user-friendly ambience to attract customers were being given a great deal of importance.

In the selling of recorded music, the main areas of growth were the chain –stores such as Music World and Planet M, promoted by large corporate groups like the RPG group and the Times Group respectively.

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A majority of the marketing efforts of these retail chains were directed towards building shop-in-shops – Music World called them 'Unplugged stores', while Planet M referred to them as 'satellites' — in a conscious attempt to reach out to customers, increase visibility and encourage impulse purchases.

Before organized retailing was established, music cassettes and CDs were sold through a huge network of distributors and retailers spread all over the country.

These ranged from small kiosks selling cigarettes and tobacco to general stores that 'also sold music,' and from gift/stationery and electronic goods shops to local chains of music stores.

Though there were outlets such as Rhythm House in Mumbai (Maharashtra), Sangeet Sagar in Hyderabad (Andhra Pradesh) and Rhythms in Bangalore (Karnataka), they catered only to customers in a particular city.

The issues of piracy and counterfeit products were also a major problem, hampering the industry from reaching its full growth potential. Given this backdrop, the establishment of outfits such as MusicWorld was a welcome change for the industry. These specially laid-out, customer-friendly outlets allowed companies to not only maximize their profit margins and reduce their dependency on the distribution channels, but also to gauge consumers' changing perceptions and revamp their product offerings accordingly...



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