In the context of the music business, market development strategy involves expanding the presence of existing music products or services into new geographical areas or untapped demographics. The purpose of this strategy is to reach new audiences and markets, thereby increasing the overall customer base and revenue streams.
For example, a record label might decide to enter emerging markets in different countries where there is a growing interest in specific music genres. This could involve promoting and distributing existing artists or genres that resonate with the local audience. Additionally, market development could target demographic segments that have been traditionally underserved or overlooked.
The goals of market development in the music industry include:
Geographical Expansion: Entering new regions or countries to tap into diverse consumer bases and cultural preferences.
Demographic Targeting: Reaching specific age groups, ethnicities, or lifestyle segments that may have previously been overlooked.
Genre Diversification: Introducing specific music genres to markets where there is a potential demand or cultural appreciation.
Building Brand Awareness: Increasing visibility and recognition of artists, labels, or platforms in markets where they may not have a strong presence.
An example of this can be seen with the market development for West African music across the world. The cultural exportation of African music was a natural phenomenon as a result of the Aafrican diaspora that proceeded the new imperialism period in the last 19th century. Rooted in the rich West African cultures of Nigeria and Ghana, a new genre of music organically penetrated the diaspora territories across Europe. But up until the last decade, the afrobeats sound had no significant imprint in markets outside of the African communities that celebrated their roots. In 2020, at the height of the pandemic, the Afrobeats genre started to develop in foreign territories across the globe, from Canada to the US and the genre began to take center stage in music consumption across the world and doubling it's grip with 6 billion streams (Spotify).
A market development strategy that was implemented by record labels was international collaborations. In 2023, a collaboration with US pop sensation Selena Gomez took Rema's single "Calm Down" to new territories around the world, introducing afrobeats to new markets such as Australia, Latin America, the Middle East where the remix became #1.
Another strategy that could be implemented is horizontal integration. As the local industry has reached a high level of maturity, horizontal integration is a strategy that allows for a company to increase its market share through acquiitions and mergers.
In fact, after several years of monolithic success in the afrobeats music industry, Mavin records, the leading indepent label in the afrobeats business announced it may be open to new investment or acquisitions. The avluation of the proposed deal was above $125 million and potential bidders included Universal Music Group, according to Billboard.
By adopting a market development strategy, music industry players aim to capitalize on untapped opportunities across the world, broaden their market reach, and ultimately drive growth in a dynamic and competitive environment.
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