CASE STUDY

ON

PLAYING TO A NEW BEAT:

MARKETING IN THE MUSIC
INDUSTRY.
PRESENTED BY:

Roll No.
 Aarti Jadhav 16
 Bhavna Panchal 37
 Jagruti Patil 39
 Kanchan Ginlol 13
 Pallavi Pawar 40
 Varsha Bopte 05
Submitted To:
Amar Bhosale Sir.
Executive Summary

It mainly concentrates the number of

challenges that music industry is facing like strong
competition, piracy, changing delivery format,
increase in cost pressure, demand in primadonnas &
changing customer needs.
The music industry is in a state flux at the
moment. Long term success stories for music
industry are increasingly difficult to develop. The ‘Big
Four’ major labels has marketing clout to invest
heavily in their acts, providing them with expensive
videos.
CONTD….

A Peer to Peer network allows user to share their

music libraries with other net users which has
diminished bargaining power of large retailer, it is a
cheaper distribution medium than traditional form.
However, as with most new channels or
technology, catalogue shopping never surpassed
regular high-street shopping, internet shopping
likewise, and ‘video never really killed the radio
star’… but will the Internet kill the record store?
SWOT ANALYSIS

STRENGTH:
 Music has now become cheaper than the

traditional era.
 Easy access to the music via internet has

created large market for music industries.

 Advance technology has impleted like ipods,

mp3 player, mobile ringtones etc.

CONTD….

 It has benefited small scale music industry to

promote their music through peer to peer
network.
 Digitalization has reduced cost as well as
space required for strong music files.
 Large number of music are available for free
of cost at various websites.
 Upcoming bands has influenced the younger
generation about their creation.
CONTD….

 It provides platform for the newcomers to

enhance their talent towards large platform
at very low cost.
WEAKNESS:
 Loss for the music companies due to piracy,

illegal downloading of original music.

 Artist & musicians have loosed their part of

income due to illegal music distribution.

 It harms legal authority like copywriter,

patents of the music industry.

 Great loss to the record stores.
CONTD…..

 Traditional music is at the edge of

diminishing.
 Increased in corruption due to breaking of
laws.
OPPORTUNITIES:
 Music company can offer music in terms of

online radio, mobile message clips, video

clips, games, sound track to increase
potential revenue sources.
 The copy write law should be more strict.

 Companies can launch their own music

website & distribute their digital music at

lower cost.
 Company should concentrate not only on
single albums but should contain a mixture of
albums.
 Companies must adopt the new technology
like greater internet access,
telecommunication, infrastructure broadband
technology etc.
THREATS:
 Internet is becoming a big threat to the music
industry.
 Traditional music retailers are getting more
competition with multiple channels of
distribution emerging due to internet & large
super market chain.
 Access to grey market has being increased
rapidly.
 Peer to peer network is becoming competitor
to original music industry.
Discuss the micro & macro
forces that are affecting the
music industry?
Macro forces affecting the music industry
Are:
The industry is facing a number of
Challenges that it has to address such as
 Strong competition.

 Piracy.

 Changing delivery format.

 Increase in cost pressure.

 Demanding primadonnas.

 Changing customer needs.

 illegal download of songs.

Micro forces affecting the music
industry
 Choosing internet as a option for music
download.
 Industry is creating “Radio Payola" playing
music station for playing companies music on
their play list to make their song hit.
 Increase the number of websites which are
selling the music free of cost such as
Amazon. COM & cdwow.co.uk
Based on this analysis, what
strategic options would you
recommend for both music
publishers and music
retailers in the current
marketing environment?
Following are the strategies that would be
Helpful:
 Music retailer should sell the music at lower
cost & should provide some portion of their
revenue to the music publishers.
 Create anti piracy awareness among the
youth.
 Provide music in various format’like
mp3,mp4,wav.
 They should tie up with various digital device
making companies like apple ipod, mp3
player etc.
 They should provide various caller tunes &
ring tones at lower cost to service providers
of the mobile company.
 They should sponsor the various music
reality shows, bands, fashion show etc.
Discuss the advantages and
disadvantages associated with online
distribution from a music label’s
perspective.
Advantages are:

 Music labels such as Sony BMG,Universal

music, Warner music can give great
competition to peer to peer network by
launching their own music websites.
 Increase in revenue & customer satisfaction
can create more variety of music like game
soundtrack,ringtones, callertunes,mobile
message clips, video clips.
 Getting opportunity to compete globally.

 They are re-evaluating their entire traditional

model by developing digital music strategy.
Disadvantages are:
 Due to piracy they are not able to receive their part
of store.
 Copy write owner are not getting their share due to
mp3 format which doesn’t have inbuilt copy write
protection.
 Old business method of selling albums are not able
to service in such a large digital market.
 There is decrease in the level of profit in the music
industry due to rip & burn process, free download,
peer to peer network etc.
THANK YOU