MusicWorld - Redefining Indian Music Retailing

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Case Details:

Case Code : MKTG033
Case Length : 12 Pages
Period : 1997 - 2003
Pub Date : 2002
Teaching Note : Available
Organization : Music World Entertainment Ltd.
Industry : Films and Entertainment
Countries : India

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Please note:

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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The Story of Saregama

The history of music major Saregama dates back to 1901, when the Gramophone Company Ltd., England (GCE) entered India. This British company set up a factory in Kolkata in 1907 to manufacture records and gramophones in 1907. In 1931, GCE was merged with the Columbia Gramophone Company to form a new company Electric and Musical Industries (EMI)...

Musicworld - Striking The Right Notes

Designing The Retail Outlets

In the mid-1990s, when GCIL was making efforts to come out of the BIFR's purview, the Indian music market was not faring well in terms of volume off-take. While a majority of Hindi film soundtracks were flopping, business in the non-movie music area had fallen below expectations. The company realized that the intellectual property base under the HMV brand could be leveraged for great advantages. GCIL owned 50% of all Indian music ever recorded, with over 45,000 albums and 0.165 million songs in 12 different languages in its portfolio...

Promoting The Outlets

Celebrity visits were made an integral part of MusicWorld's promotional activities. Not long after Roshan's visit, MusicWorld's Kolkata outlet had another celebrity visitor - the popular pop singer Shaan. This attracted a lot of attention towards the outlet as well as towards Shaan's recently released album...

Music For The (Y)Ears?

Inspired by MusicWorld's growing popularity, many other players were planning to enter the music retailing business. Commenting on how the lack of organized retailing had affected the Indian music industry in the past, Ramesh Taurani of Tips Industries (one of the leading players) said, "The market was not going up because the depth of a company's catalogue is not reflected in the display. If I have about 5,000 titles, where will they be displayed? The paanwala (betel-leaf seller) also sells cassettes. Bookshops and greeting card shops have about 100-200 sq. ft. of display space...


Exhibit I: A Note on The Indian Music Industry


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