Priyanshu singh

401853001

Marketing Management

Assignment

Saregama India Ltd.: Repositioning the Value

Proposition

1. Analyze the competitive scenario being faced by

Saregama in 2018?

Ans-The Company aims to achieve break-even through

subscription and advertising revenues. The Publication
Magazine business needs to handle the challenge of
building up volumes and increasing advertisement rates
in the highly competitive market Forward-looking
statements involve known and unknown risks,
uncertainties and other factors, which may cause the
actual results, financial condition, performance or
achievements of the Company or industry results to
differ materially from the results, financial condition,
performance or achievements expressed or implied by
such forward-looking statements, including future
changes or developments in the Company’s business, its
competitive environment and political, economic, legal
and social conditions. Further, past performance is not
necessarily indicative of future results. Given these risks,
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uncertainties and other factors, viewers of this

presentation are cautioned not to place undue reliance
on these forward-looking statements. The Company
disclaims any obligation to update these forward-looking
statements to reflect future events or developments.
Saregama has been making headlines again owing to the
launch of two unique initiatives, Saregama Carvaan and
Yodlee Films. • Carvaan is a perfect blend of digital
technology and a retro form factor. In less than a year
from its launch, it is now Saregama's flagship product
The films produced by this studio are driven by the
powerful stories targeted at young audiences across the
world who primarily consume content on personal
devices • 5,400 hours of Tamil serial programming
telecast on Sun TV. Current programs rate highest
(TRPs) in the afternoon band.

2. How important has been the role of marketing

research in the business decisions by Saregama? Suggest
how Saregama could have utilized various aspects of the
marketing information system in a better fashion.

Ans-Marketing research plays a major role in making

business decisions and it is targeted at the 40 plus
audience by which the Marketing strategy is aimed at
advertising the marketing efforts towards a very
specialized and targeted audience that has unique needs.
The entire product range, price range and features are
designed in consideration of that niche market. It is for
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people who love music but find it too cumbersome to

download their favorite songs. The plan was simple, to
load the device with songs that the 40s and the 50
plusses yearn for.The audience for Carvaan is not just
the user. It had two segments, the buyer and the
consumer. India is on its way to become the youngest
country in the world. To not make a product which has
no relevance to one third of India’s population and
almost 46% of its workforce would be a strategy
nightmare to start with. A report from Morgan Stanley
Research suggests that 70% of total household incomes
is contributed by millennials Which brings us to the last
pillar of Saregama Carvaan’s success

3. Given the changing music and entertainment industry

scenario, how would you explain the strategic intent
around Saregama’s 'Carvaan' ideation? Elucidate the
'Carvaan' value proposition.

Ans- The strategic intent around Saregama’s 'Carvaan'

ideation has a music repertoire across several genres
and languages. Its library has over one lakh tracks. This
data assisted them in joining the right data sources,
giving them the ability to go beyond what's hot to
uncover or bring back old sounds via their latest product
launch. It has also helped Saregama in understanding
their consumer demand and the unmet gap which was
calling to be filled. It understood the shared
understanding of who their most valuable customers are
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and how to meet their needs. They struck the right chord
to engage a forgotten segment of listeners, they’ve built
brand loyalty by giving our listeners the feeling that they
are important to us. There are many levels to this —
from using the language they’ll connect with, to treating
them like they matter on social media, or in this case by
launching a product which made them feel important.
Engaging with who they are apart from a hand with a
wallet will build customer loyalty. Carvaan, ignites
memories, emotions and ensures a long-term
relationship with their listeners.
Old is new! Old is Gold! Gold is Evergreen! Carvaan
undoubtedly was a great way for Saregama’s come back
using Nostalgia Marketing! In an age of impersonal
digital media, building social connectedness through
nostalgia is an easy way for companies to leverage the
optimistic feelings that often accompany walks down
memory lane. Associating brand messaging with positive
references from the 90s, 80s — and even the 60s-70s in
this case — humanizes brands, forging meaningful
connections between the past and present

4. Which aspects of Consumer Behaviour have been

important in influencing the business decisions by
Saregama?
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Ans-
Social factors
Psychological Factors
Cultural Factors
Personal Factors
Economic Factors

5. What do you understand by segmentation, targeting,

positioning & differentiation? Evaluate these aspects in
the context of 'Carvaan' by Saregama based on the
product adoption

Ans-
Segmentation is the practice of dividing your target
market into approachable groups. Market segmentation
creates subsets of a market based on demographics,
needs, priorities, common interests, and other
psychographic or behavioural criteria used to better
understand the target audience.
By understanding your market segments, you can
leverage this targeting in product, sales, and marketing
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strategies. Market segments can power your product

development cycles by informing how you create
product offerings for different segments like men vs.
women or high income vs. low income.

Targeting in marketing is a strategy that breaks a large

market into smaller segments to concentrate on a
specific group of customers within that audience. It
defines a segment of customers based on their unique
characteristics and focuses solely on serving them.

Instead of trying to reach an entire market, a brand uses

target marketing to put their energy into connecting
with a specific, defined group within that market.

Positioning refers to the ability to influence consumer

perception regarding a brand or product relative to
competitors. The objective of market positioning is to
establish the image or identity of a brand or product so
that consumers perceive it in a certain way,positioning
statement that will serve to identify your business and
how you want the brand to be perceived by consumers

Differentiation is the process of distinguishing a product

or service from others, to make it more attractive to a
particular target market. This involves differentiating it
from competitors' products as well as a firm's own
products
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6. The Managing Director Mr. Mehra envisions

Saregama as a ₹20 billion company in five years.
Consider various offerings by Saregama as SBUs, and
use the BCG Framework to evaluate the strengths and
weaknesses of the existing business model. Assess these
SBUs in terms of SBU strategies and growth options

Ans- The biggest profitability driver for us over the last

few years has been music licensing. Even after removing
the one-time income that we received during this year,
the Music Licensing business was Rs. 284 crores . This is
the third straight year of a 20% growth in this vertical.
We have been maintaining for a long time that we expect
our music licensing to grow at 22%-25% on a medium-
term basis. And even this year it would have been 22% -
23%, had the public performance revenue that we get
from societies not become close to zero, revenue growth
is 20% and in fact, it has almost doubled over the last
three years. Is the catalog making more money for us
today than it was making in the past? Yes. And that you
can see from the growth in our music licensing revenues.

Q7 a. Should Saregama remain a content-focused

company or revisit its decision? Why? (Use Ansoff's
Growth Matrix)

Ans- Should revisit its decision

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This strategy, too, may be implemented in a

number of ways:

1. Investing in R&D to develop new products to cater

to the existing market and getting new customer
segment
2. Acquiring a competitor’s product and merging
resources to create a new product that better meets
the need of the existing market and diversify the
brand with different innovations
3. Forming strategic partnerships with other firms to
gain access to each partner’s distribution channels
or brand

Q7 b. Should Managing Director Mr. Mehra focus on

B2B or B2C, or both? Identify the critical elements of a
marketing plan for Saregama’s future

Ans- Managing Director Mr. Mehra focus on both B2B

or B2C

In Spite of fall in Telecom revenues, Saregama’s overall

B2B revenues will grow at 17-18% yoy This growth will
be primarily led by OTT platforms (40%) and
Publishing. Acquisition of new music content will start
helping digital licensing businesses to grow further.
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Industry organizations like PPL and IPRS will get

strengthened and will start contributing higher

Growth to be fuelled by larger scale marketing activities,

word-of-mouth, expansion of towns, distribution
channels and international markets Further
Improvement in gross margins expected with volumes ,
Cost will continue under control and will be charged in
the year of release.: To be a Pure Play Content Company
capitalising on the global data boom Diversified
monetisation of Existing IP to fund IP Creation for
Future