CarvaanGo: Extending the Product Line
This case presents an interesting sequel to a successful product innovation called Carvaan. The product offering could be recognized as reverse positioning. In a market that had a proliferation of sophisticated technological gadgets, the retro-transistor-like device that could shuffle and provide Hindi music of yesteryear was welcomed for its simplicity. Managing Director Saregama India, Vikram Mehra, was confident that the hundred-year-old company could shift from a B2B to a B2C company with Carvaan. As a result, in the next two years, the firm came out with several product variants in quick succession. The latest in the line were CarvaanGo, launched in April 2019 and Carvaan 2.0 in June 2019. While CarvaanGo was a pocket-sized-iPod-like version of the original Carvaan, Carvaan 2.0 was an advanced version, still shaped like a retro transistor but loaded with additional features to enhance the listening experience. Mehra had great hopes that with these brand extensions, the entire music-listening consumer, regardless of age, could be targeted. However, as was evident from the sales figures, these variants had not been able to garner the same success as the original. It was quite clear that Carvaan 2.0 and CarvaanGo both needed promotional backing. The quintessential question was, should the Carvaan product range cover the entire spectrum of music listeners- both old and young- or would it be wiser to stay with the older generation.