The case study examines the strategies adopted by MusicWorld, a group company of the diversified Indian business house of RPG. The case discusses the background of the players who set up MusicWorld (RPG group and Saregama) and their role in establishing MusicWorld as the largest music retailing store network in India. The marketing strategies adopted by the company, especially on the retail format of the store and the promotion front, are also explored in detail.
In
April 2000, popular Hindi movie actor Hrithik Roshan
visited Kolkata in West Bengal as part of a promotional
exercise undertaken by the music retailing company,
MusicWorld Entertainment Ltd. Little did MusicWorld know
that this move would throw some parts of the city out of
gear. The filmstar, riding high on the success of his
maiden film had just become a national craze. Mobs of
frenzied fans thronged the company's outlet, leading to
traffic jams.
MusicWorld
on its part had devised a well-planned marketing
gameplan. Roshan interacted with the crowd, urging
people to buy the music cassettes/Compact Discs (CDs) of
his film. Needless to add, the sales of the outlet
soared high, establishing MusicWorld very firmly as the
one-stop shop for the city's music lovers. In the very
first week, the store recorded sales of over Rs. 2.5 mn1.
MusicWorld,
a part of the Rs. 65 bn2 Rama Prasad Goenka
(RPG) group of companies, carried out similar
promotional exercises at many outlets across the
country. In a very short span of time after its launch
in the mid-1990s, MusicWorld had reportedly become a
major factor that changed the way music was sold in
India. |
