Assessment 1: Global Market Opportunity Assessment

Word Count : 1500

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Contents
1. Introduction..................................................................................................................................3
2. Suitability of Products.................................................................................................................3
3. Market Size..................................................................................................................................4
4. Market Potential..........................................................................................................................5
5. Partner Company........................................................................................................................5
6. Conclusion...................................................................................................................................6
7. References...................................................................................................................................6

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 1. Introduction
Finding lucrative export markets is a crucial step in the internationalization process for a
business. Export markets are recognized to present prospects for economies of scale, as
well as appealing new market segments and a revitalized market growth rate. Businesses
that attain these kinds of outstanding advantages will fare well in both their native markets
and important international markets (Bandi and Bhatt, 2008). Selecting the "right" foreign
market or markets which is the first step in international marketing has a significant impact
on the expansion of the business. Businesses that excel at risk assessment and early
market opportunity analysis can gain an advantage over rivals by being the first to enter a
market (Ahi et al., 2017).

The target market identified for InTunes is India. India is a country full of diversity and is
a country with one of the biggest and oldest musical heritage. While India is a manufacturer
of traditional musical instruments, there is high demand for contemporary musical
instruments like Guitar and Violin, including digital instruments. The increase in live concerts,
social media influence on bringing forward talent musicians have all positively influenced the
musical instrument market in India (Pastukhov, 2022). The FTA agreement between UK and
India is also an opportunity strengthening the scope of exports along with the demand that
exists in the Indian market for musical instruments, making it an attractive market (Chadha,
2022). The growth rate projected for the year 2023 to 2023 for the Indian musical
instruments market is 9.91% with a market volume estimated at USD 9.51 billion in the year
2028 which also highlights the scope of engaging in business with India (Statista, 2023).

2. Suitability of Products
Among the products offered by InTunes which includes Piano, Guitar and Violin,
Violin is considered to be most popular among available string instruments used in
orchestration for the versatility and commanding presence it has. The strikingly beautiful
sound along with its versatility makes it a popular instrument among many musicians
(Alliedmarketresearch, 2022). In India the String instruments market showcases a positive
and steady growth which indicates the favourable position for the company to initiate
international business with India. Some of the factors which is favourable is the consumer
demand for the increase in interest in fusion music, increase in disposable income, growth in
number of courses offered in music and demand for high quality and authentic instruments
apart from factors like digitization and use of technology in music (MWR, 2023). As per the
Statista (2023) reports there is evidently increasing and steady demand for string
instruments in the Indian market.

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Table 1: Musical Instruments in Demand in Indian Market; Source: Statista (2023).

India is a country where musical instruments have immense historical as well as

cultural value. Musical instruments are not just associated with entertainment but also have
strong presence in religious celebrations, folk performances, and traditional forms of music
(Roda, 2009). The demand for handmade violin similar to global market is high in India.
While there are regional sellers involved in the business the lack of technological know-how
makes the customers who raise the demand for the product to look for options outside which
is an opportunity for InTunes to explore and establish its presence in India (Mitra, 2018). The
Indian market for musical instruments is extremely dynamic and ever evolving. Some of the
factors which would favour the business is identifying the needs of the customer and
adapting the offering to their preferences, incorporating technological advancements into the
instruments. The social and economic landscape of India is also in favour of the new
business (Deloitte, 2023). Some of the other challenges the InTunes will need to address
appropriately is the price sensitive nature of Indian consumers, availability of counterfeit
products in the Indian market and limited channels of distribution which may hamper the
growth of the business (Harjani, 2022).

3. Market Size
By the end of 2022, the estimated worth of the Indian music industry was roughly
calculated at 22 billion Indian rupees. By the end of 2025, that value was predicted to rise to
33 billion rupees. In general, the industry was projected to expand at a compound annual
growth rate of fifteen percent for the specified period (Basuroy, 2023). The musical
instrument market part of the Music Industry is expected to grow by approximately 9.91 %

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each year in India (Statista, 2023). One of the main reasons for this growth is identified to be
technological advancements. As modern technology becomes more extensively used, major
players are motivated to create and manufacture a wide range of enhanced versions of
musical instruments (Mordor Intelligence, 2023).

Music while is practiced across genders and age group in India, the disposable income
of the population may influence the purchase of the instrument very strongly. While the
increase in disposable income is a favourable factor, the technological exposures is an
aspect to be considered as not all are formally trained (Gupta, 2022). While Violin is part of
fusion music, it is mostly used as an accompanied instrument in Carnatic music and hence
the demand for violin is most strongly observed in Southern part of Indian (IMI, 2022).

4. Market Potential
The Indian market is now growing to the popularity of live music in which the instrument
“Violin” is very popular for its enchanting presence. While it is a significant part of Carnatic
and classical performances, it is now gaining significance even in fusion performances
(Mitra, 2018). The increase in use of social media through platforms like Instagram,
YouTube and Facebook combine with the developments observed in audio technology is
favourable to the increase in demand for instruments. And where violin is considered to be
single most strong companion for musical performance there are the social media
performers as well who is keen on purchasing the instrument (Cole, 2019). The social media
presence has gained these online musicians popularity world over which has further
propelled the demand for live music, thus influencing the demand for high quality and high-
tech instruments (Szymkowiak et al., 2020). Music in India is associated with almost
everything. Be it spirituality, celebrations, entertainment, or religion which widens the scope
of the industry. Customers are also become very conscious of the choice they make and
hence despite of the price sensitiveness there is demand for high quality, technology driven
music instruments. This collective impact of these trends is the increase in market potential
for the music instrument (IMI, 2022).

5. Partner Company
Modern supply networks allow people to purchase necessities at reduced prices,
which raises living standards. This is due to the fact that a well-functioning supply chain
expedites the procedure of bringing goods to market and, eventually, to customers. India is a
market which has several opportunities for independent artists which improves the scope of
exports to the market (IMI, 2022). Considering the presence of competition from both small-
and large-scale organization, having an effective supply chain will help the business to cover

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the market with better speed. This is especially from the perspective of independent artists
who form a major part of the target customer for the business. The access will further
improve the quality of music being produced, further enhancing the scope of growth for the
industry (Reed, 2020). The success of the marketing and the sales strategy for the business
will depend on the effectiveness of the supply chain management. It will also contribute to
cost savings, quality of service. production effectiveness and thus better firm performance
(Lotfi et al., 2023). Entering the market through International Collaboration will not only help
in faster access to markets, but will also help in minimising the cost, better access to
resources which will further improve the scope of business performance (Fao, 2023).

6. Conclusion
Globally the favourable trend which exists in the music industry which is growth oriented
is an important factor influencing the choice of global expansion. India which is a country
representing music in the global map is a market which is also looking at growth in the music
industry for several reasons, of which one main reason is the increase in individual
performers and also interest in fusion music (Statista, 2023). While there are instruments like
Piano and Guitar which is offered by InTunes, the suggestion is provided for Violin as a
product segment for international expansion for the already identified demand for
technologically adept instrument in the Indian market and lack of producers who can meet
the demand in the Indian market (Mordor Intelligence,2023). The focus will also be mainly on
the younger generation of artists as it is them who are mostly involved with live concerns
both on the online platform and otherwise. Hence tapping this market would improve the
scope of performance and engage in successful international operations, similar to the
success the firm has received in its local market. However, it is important to monitor the
customer preferences as it will have a strong influence on the choice of music popularity in a
diverse country like India (MWR, 2023).

7. References

Ahi, A., Baronchelli, G., Kuivalainen, O., and Piantoni, M. (2017). “International market entry:
How do small and medium-sized enterprises make decisions?,” Journal of International
Marketing, 25(1), pp:1-21.

Alliedmarketresearch. (2023). “Violin Market Size, Share, Competitive Landscape and Trend
Analysis Report by Product Type (Acoustic Violin, Electric Violin), by Application (Personal,
Commercial, Music Production/ Direction, Others) and by Distribution Channel
(Hypermarkets/Supermarkets, Specialized Stores, Music Stores, Online Retail, Others):

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Global Opportunity Analysis and Industry Forecast, 2023-2032” (Online) Available at:
https://www.alliedmarketresearch.com/violin-market-A16165 [Accessed on 03-12-2023].

Bandi, K.K., and Bhatt, K. (2008). “The process of Internationalization in Small and Medium
Enterprises (SMEs)” (Online) Available at:
https://www.diva-portal.org/smash/get/diva2:238800/FULLTEXT01.pdf [Accessed on 03-12-
2023].

Basuroy, T. (2023). “Value of the music industry in India from 2007 to 2022, with estimates
until 2025” (Online) Available at: https://www.statista.com/statistics/235845/value-of-the-
music-industry-in-india/#:~:text=The%20Indian%20music%20industry%20was,in%20the
%20stated%20time%20frame. [Accessed on 03-12-2023].

Chadha, S. (2022). “Explained: What is the UK-India free trade agreement all about” (Online)
Available at: https://timesofindia.indiatimes.com/business/india-business/explained-what-is-
the-uk-india-free-trade-agreement-all-about/articleshow/90930976.cms [Accessed on 03-12-
2023].

Cole, S. (2019). “The impact of technology and social media on the music industry” (Online)
Available at : https://econsultancy.com/the-impact-of-technology-and-social-media-on-the-
music-industry/ [Accessed on 03-12-2023].

Deloitte. (2023). “Future of Retail Emerging Landscape of Omni-Channel Commerce in

India” (Online) Available at:
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/about-deloitte/in-ad-future-of-
retail-noexp.pdf [Accessed on 03-12-2023].

FAO. (2023). “Market Entry Strategies” (Online) Available at:

https://www.fao.org/3/w5973e/w5973e0b.htm [Accessed on 03-12-2023].

Gupta, D. (2022). “Ending a great year for Music with new trends coming in 2023” (Online)
Available at : https://loudest.in/authored-article/ending-a-great-year-for-music-with-new-
trends-coming-in-2023-16089.html [Accessed on 03-12-2023].

Harjani, L. (2022). “Why India ranks among the top five countries for counterfeit products
and how to combat it” (Online) Available at :
https://timesofindia.indiatimes.com/blogs/voices/why-india-ranks-among-the-top-five-
countries-for-counterfeit-products-and-how-to-combat-it/ [Accessed on 03-12-2023].

IMI. (2022). “A Symphony of Efforts” (Online) Available at:

https://indianmi.org/wp-content/uploads/2023/02/IMI-Annual-Report-2022.pdf [Accessed on
03-12-2023].

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Lotfi, F., Allahviranloo, T., Shafiee, M., Saleh, H. (2023). “Supply Chain Management. In:
Supply Chain Performance Evaluation.” Studies in Big Data, 122. Springer, Cham.

Mitra, B. (2018). “The men who breathe life into violins” (Online) Available at:
https://timesofindia.indiatimes.com/life-style/spotlight/the-men-who-breathe-life-into-violins/
articleshow/64678984.cms [Accessed on 03-12-2023].

Mordor Intelligence. (2023). “India Musical Instruments Market Size & Share Analysis -
Growth Trends & Forecasts (2023 - 2028)” (Online) Available at:
https://www.mordorintelligence.com/industry-reports/india-musical-instrument-market
[Accessed on 03-12-2023].

MWR. (2023). “India Musical Instruments Market Analysis – Industry Size, Share, Research
Report, Insights, Covid-19 impact, Statistics, Trends, Growth and Forecast 2023 – 2030”
(Online) Available at: https://markwideresearch.com/india-musical-instruments-market/
[Accessed on 03-12-2023].

Pastukhov, D. (2022). “Indian Music Industry Analysis: Streaming, Live Industry, Bollywood,
2022 Trends, and More” (Online) Available at: https://soundcharts.com/blog/india-music-
market-overview [Accessed on 03-12-2023].

Reed, J. (2020). "The Supply Chain of Digital Music: Empowering Independent Artists
Through Availability and Accessibility" Senior Theses. 382

Roda, A. (2009). “Musical Instruments of the Indian Subcontinent” (Online) Available at:
https://www.metmuseum.org/toah/hd/indi/hd_indi.htm [Accessed on 03-12-2023].

Statista. (2023). “Musical Instruments – India” (Online) Available at:

https://www.statista.com/outlook/cmo/toys-hobby/musical-instruments/india [Accessed on
03-12-2023].

Szymkowiak, A., Kubala, B., and Antoniak, M. (2020). “Music sales and artists popularity on
social media” (Online) Available at:
https://www.researchgate.net/publication/347441254_Music_sales_and_artists_popularity_o
n_social_media [Accessed on 03-12-2023].