This presentation is based on the research topic of product launch. The study is about Spotify’s launch in India and the various strategies they had to implement while entering the Indian music streaming market. The study provides a better understanding of how Spotify carried out different operations before the launch of its music streaming service. The research even covers Spotify’s promotional activities and marketing tactics they used to create a sort of user engagement and increase its reach to a larger audience.
Objectives of the Study:
1. To examine and evaluate Spotify’s plan to enter the Indian music streaming market.
2. To examine Spotify’s approach to capture the Indian music streaming market.
3. To evaluate and analyze Spotify’s successful marketing strategies.
The seven principles of persuasion by Dr. Robert Cialdini
Spotify’s entry in the Indian Market
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Project Analysis
SPOTIFY’S
ENTRY IN THE
INDIAN MARKET
NAME: Brendan
Submitted by:
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CONTENTS:
Company Overview
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Target Market: India
Market Analysis
Business Plan
Launch
For the Indian Market, Execution
Spotify Launch in India
Spotify
Interest
Marketing Campaign
Insights, Meaning
Growth of Spotify
Entry and Expansion
Findings & Suggestions
Conclusion
Project RoadMap
Entry in India
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SPOTIFY: OVERVIEW
OF THE COMPANY
A Swedish audio streaming and media service
provider.
Spotify offers digital copyright restricted recorded
music and podcasts, that includes more than 70
million songs, from record labels and media
companies.
As a freemium service, Spotify basic features are
free, with advertisements.
And additional features such as offline listening
and commercial-free listening, are offered via paid
subscriptions.
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SPOTIFY’S INTEREST
IN INDIA:
Spotify first announced its intent to launch
their services in India was in March of 2018.
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SPOTIFY’S INTEREST
IN INDIA: 2 MAIN
REASONS
1. India’s Internet Revolution
The average wireless data prices (per GB) had
fallen 96%, from INR 270 to INR 11 (2014-
2018).
This resulted in a massive spike in data
consumption.
2. The Rise of Music Streaming in India
India witnessed an influx of players into the audio
OTT space.
Spotify noticed that majority of users listen to music
using streaming services.
Plus, a study mentioned that the growth in internet
subscribers and data consumption is expected to
continue.
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Spotify recognized the potential of India’s digital
revolution as an opportunity to capture growth.
Before entering the Indian market, Spotify had
analyzed India’s music streaming market to
determine if there was a market for paid music
streaming services.
SPOTIFY’S ANALYSIS OF
THE INDIAN MUSIC
STREAMING
MARKET:
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SPOTIFY’S
BUSINESS PLAN
FOR INDIA:
Based on the research and analysis conducted
by Spotify, Spotify had to undergo some
changes to better please the Indian audience.
Spotify created a Business Plan, mentioning
the changes it had to do for its debut in the
Indian market.
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MODIFYING ITS
REVENUE MODEL: FOR
THE INDIAN MARKET
Spotify announced that it would allow its ad-
supported smartphone users, to have “full
control” and access the entire Spotify library on-
demand.
Spotify, in the global market provided a
freemium model with ad-support but with
limited control.
– It didn’t provide full access to its library of
music
– and the number of skips were limited.
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INITIAL PRICING: FOR
THE INDIAN MARKET
Indian audiences are not interested in subscribing
for a music streaming service.
Hence the brand took a smarter approach and
offered free-music streaming for the users.
Offered a premium ad-free package for a minimal
amount of Rs 119/month.
Also offered premium pre-paid plans – daily, weekly
or monthly basis subscription.
To cater to the Indian masses, Spotify needed to
offer an alternative to its regular subscription
method.
E.g. – digital payment systems like Paytm.
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LAUNCH OF SPOTIFY:
Spotify made its entrance in the Indian
market on 27th February 2019.
Spotify was also offering a free, ad-
supported product.
Surprise: Spotify users who do not pay for a
subscription could play any song on
demand on mobile.
For the first 30 days, Spotify’s premium
service would be free.
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SPOTIFY’S
CAMPAIGN:
With its launch, Spotify played its first move:
“There’s a Playlist for That” campaign on March
23rd of 2019.
Featured: Numerous outdoor style hoardings
and digital promotions.
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For Example,
A One Liner Ad at one of India’s busiest Highways A One Liner Ad at one of India’s busiest Railway Station
Outdoor Hoardings - with one liners (ads) that represents relatable life situations and local expressions.
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SPOTIFY’S
CAMPAIGN:
The campaign also features three digital films, Papa
Ki Gaadi, Call Center and Game of Love.
Centered around the brand’s value proposition to
discover over 3 billion playlists that seamlessly
complement a user’s diverse range of daily social
experiences.
Spotify highlights: Every time life changes tracks,
there’s a playlist for that.
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Within the first week of its launch, Spotify said it secured 1 million users
on the platform.
Spotify also quickly reached 2 million users on the same month itself.
It was reported that the company added 11 million paid subscribers in the
fourth quarter of 2019 .
Within a 1-year time frame, Spotify India took over 15% of the Indian
streaming market.
SPOTIFY’S GROWTH IN
INDIA:
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FINDINGS AND
SUGGESTIONS:
1. Spotify's biggest challenges in India is price.
o Spotify’s sole business is music streaming.
o My suggestion - Highlight the yearly and
half-yearly discounted premium plans on
their app.
2. Spotify is heavily relying on the future growth
of the Indian music industry.
o Spotify does not display many
advertisements of product or service
recommendations, or any general ads.
o My suggestion - Display few banner, video,
and audio-based ads to at least generate
some revenue from users that use Spotify
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CONCLUSION:
The influence of internet has been affecting and reshaping the media and entertainment industry.
Music streaming in India has grown rapidly in the last three to four years.
And early players such as Gaana and Hungama has helped reform the music industry.
When Spotify entered the Indian market, Spotify knew that they would not survive a price war after analyzing its competitors.
Therefore, it made sense for them to build a brand that truly speaks to their audience.
And coming up with a well thought marketing campaign and highlighting its USP or unique selling point, Spotify did just that.
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CONCLUSION:
Furthermore, its no surprise that Spotify is among the leading music streaming service providers all around the globe and in
India.
Within just 2 years, Spotify has created an irreplaceable space for itself in the Indian music streaming market.
Spotify success is mainly because of its USP – song recommendations, curated user specific playlist and the way they
highlight it in their marketing campaigns.
It seems like Spotify is looking to take over more consumers and increase its market share as they grow stronger and more
consumer-oriented in their offering.
Pleasure to see the how brands innovate and provide great user experience, and Spotify does it seamlessly and super-
effectively.
Nothing less is expected from Spotify in the coming future, at least in my opinion.
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