Aim: Analyse the Global business environment of Spotify. Audit for a real company in chosen scenario, Create a strategy and tactics for the Global Marketing plan, set SMART objectives, devise Global Marketing strategies.

1. Global Marketing
BY: UMAKANT S. YADAV (UMA1D22)
TURIBA UNIVERSITY
SPOTIFY

2. About Spotify
• Spotify is a streaming music service originally developed in 2006 in Sweden and
launching in 2008. Spotify Ltd. now operates as the parent company in London while
Spotify AB manages research and development in Stockholm. Daniek Ek, Since then,
it’s exploded to the tune of over 70 million paid monthly subscribers and over 150
million subscribers total.
• Spotify has emerged as a quality online-streaming service with a vast and versatile
music library.
• Despite being economical for users and lucrative for musicians, Spotify has been
levelled with allegations such as not giving artists the money they deserve and not
promoting smaller, newer artists.
• In light of recent libel and criticism from high-profile artists like Taylor Swift and
Thom Yorke, Spotify’s reputation has taken a hit.

3. About Spotify
• It operates on a freemium model.
1) Free Spotify access comes with
lower sound quality, and
advertisements, and requires an internet
connection. 2)Spotify Premium can
listen uninterrupted to high-quality
recordings, and are able to download
songs to any device on which they have
the Spotify app.
Presently Spotify has 3 Billion
Playlists.

4. Market Share
In 2018 Spotify had 230m Music subscribers
which lead them to have 3,498m (USD)
revenue.
Spotify is leader among Apple Music,
Amazon, Google and Pandora. It have 83 %
of total subscribers over all.
Spotify have 39% users under the age of 30
years and 17% users above the age of 30
years. Whereas pandora have highest
number of 30 plus users.
Presently the biggest competitors for Spotify
are Apple Music, Google Music, Amazon
and last but not least Pandora.

5. Strategic Alliance
• Focusing on the customers, they have always complained about some areas: Ads,
Slow working of App and customer support.
• Strategic alliance : Recently Spotify have announced strategic partnership with
Samsung and Uber Music
• Now they have proper resources to deal with the problem caused by Android
App (Slow Interface, Does not detect network, Music stops every time, 24/7
customer support).

6. SWOT Analysis
Strength:
1) Ability to hear free
music.
2) Veritable collection of
songs and artists.
3) Premium member have
advantage to listen music.
4) Online Radio,
Facebook connectivity
and Premium Services.
Weakness:
1) Artist may
withdraw
content.
2) Late release of
music on
Spotify.
3) Advertisement
free version
may deter the
user.
4) Android or
windows apps
are prone to
viruses and
stream slow.
Opportunities:
1) Chances to
expand amongst
youth audience.
2) Youth can be
attracted by
Discounts,
Promotions and
artistic
expression.
3) Good pays to the
artists
4) Great potential to
drive traffic on
website.
Threat:
1) Prone to
security
breaches.
2) Music piracy.
3) Criticism by
popular
artists who
have
enormous fan

7. Over come weaknesses and threat using Marketing
Tools
Tactics:
Advertisement is the instrument to overcome weaknesses and threat. Knowing the
target audience (Youth) social media, blogs and videos will be the primary channels
of communication.
Content marketing will held to maintain the brand image that place heavy emphasis
on user experiences and consumer integration.

8. Anti-piracy Video Advertisements
Series of web videos on YouTube,
Facebook, Instagram and other
video channels. This will draw
attention to the money lost due to
piracy to artists.
Other format could be music artist
performing on cameras sponsored
by Spotify.
Popular musicians urging listeners
to pay attention on severity of
piracy.
The videos will have first message
to support anti-piracy and second
message will be to listen on
Spotify.

9. Ads and Banners
Sportify’s landing page and other application will feature a musician each week that deserves
recognition based on their music.
The artists would be from different genres and there music will be shared with the hash tag
“Now Playing.” The ads will showcase a picture of the band or the individual, concise text
describing their music genre or praise received by a critic, and Spotify’s logo with the
aforementioned hash tag. These ads will also run in the form of sponsored content on
popular music blogs, on independent college blogs and newspapers, and will be printed in
magazines like Rolling Stones and The New Yorker.

10. Press Release
and others
Prese release: This press release will serve to establish credibility for the
anti-piracy movement through the CEO and founder of Spotify, Daniek
Ek.
Blog Posts: Spotify’s personal blog will encourage users to comment or
write about the featured artists.
Press Conferences: A press conference that will include representatives
from Spotify and music artists who have benefited from Spotify’s
services will be held.
Interviews and Story featuring: Music journalists will be approached to
do interviews with and write feature stories on the artists that Spotify
will be focusing on and promoting. By getting real stories and people
involved, Spotify will be able to emotionally engage its users.

11. Evolution and
Measurements:
The marketing would go on starting for January
and ending August. This time period is highest
music consumption, which covers SPRING
BREAKS AND SUMMER VACATIONS.
Quantitative analysis: This will measure the
views and share of music or the number of time
particular music played. This will give change in
number of small scale artist and Subscription.
This number can be analysed by march.

12. Evolution and
Measurements
(2)
Lastly, Spotify will use focus
groups to determine whether the
anti-piracy campaign has
resulted in more users taking to
online streaming services
Finally we will measure the total
revenue generated by Spotify for
itself and for the artists it
represents during the course of the
campaign.
Overall, we strike to measure the
number of Spotify users and the
amount of royalties received by
the featured artists.

13. References
• https://tollfreeforwarding.com/blog/5-necessary-tools-global-marketing-campaigns/
• https://www.slideshare.net/LauraSorrentino6/digital-marketing-spotify?qid=54d7a06d-b517-4591-
87f8-c2f1ad4cf652&v=&b=&from_search=3
• https://www.lifewire.com/what-is-spotify-4685829
• https://www.musicbusinessworldwide.com/5-of-spotifys-biggest-imminent-challenges-in-2019/
• https://www.rollingstone.com/music/music-features/five-things-spotify-needs-to-fix-in-2019-794853/
• https://marketrealist.com/2019/04/what-are-the-challenges-facing-spotify-in-2019-and-beyond/
• http://www.oneskyapp.com/blog/spotify-global-expansion/
• https://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/spotify-
case-study/
• https://heroic.academy/spotify-marketing-strategy/