Saregama India Ltd.: Repositioning the Value Proposition
Saregama India Limited (Saregama), a 117-year-old music company, was on a growth trajectory. Its third-quarter financial results in 2017-2018 had shown unprecedented growth. Over the previous three years, Saregama had converted its conventional copyrighted music into high-quality digital formats and made a rare stretch from the business-to-business (B2B) to business-to-consumer (B2C) market. The company had added new intellectual properties (IP) in audio and video. Then in 2017, Saregama launched Carvaan, a portable music player with 5,000 evergreen songs. Cleverly created to meet the needs of its older target audience, the Carvaan was largely responsible for the company's turnaround. Saregama's goal was to be a 20 billion IP content company in the next five years. To make that happen in the context of rapidly evolving technologies and consumer trends, the company needed sharply defined short- and long-term strategies that addressed content acquisition, its success with Carvaan, and its pursuit of B2B and B2C markets. Rituparna Basu is affiliated with International Management Institute-Kolkata. Neena Sondhi is affiliated with International Management Institute-New Delhi.