This document provides an analysis of the Spotify brand. It includes information on Spotify's revenue breakdown by segment and region from 2012-2018. It also analyzes Spotify's key performance indicators like monthly active users, time spent listening, and average revenue per user in different regions from 2015-2017. The document then reviews Spotify's brand elements like colors, logo, and jingles. It profiles key consumer segments for Spotify and maps out the brand's evolution. It also includes a Porter's Five Forces analysis and competitor perception map. Finally, it applies the brand resonance framework to Spotify and outlines the brand's positioning, points of parity, points of difference, and suggested marketing channels.

1. Brand Audit - Spotify
Brand Management Project
Anjali | Jaisika | Mayukh
Mudit | Sonakshi | Suyash
MBA IB 19-21 | IIFT Delhi

2. Company Analysis
374.6 677.89 982.7
1744
2657
3674
4717
55.5
68.16
102
196
295
416
542
0
1000
2000
3000
4000
5000
6000
2012 2013 2014 2015 2016 2017 2018
REVENUE
IN
MILLION
EUROS
Premium Ad-Supported
Spotify's Segment
Revenue (2012-2018)
6.84
6.2
5.32
0
1
2
3
4
5
6
7
8
2015 2016 2017
ARPU
IN
U.S.
DOLLARS
Spotify's Premium ARPU (2015-
2017)
Europe
, 37%
North
Americ
a, 30%
Latin
Americ
a, 22%
Rest of
World,
12%
Spotify's share of Monthly
Active Users (MAU) 2018, by
region
Monthly Active User (MAU) has been driven significantly by
• developing regions, i.e. Latin America and Southeast Asia, which are also the fastest growing
market globally.
• Product innovations improving long-term customer retention e.g. rolling out Spotify Lite, more
personalized suggestions and seven-day trial
Registered User in
India as of March 2019
~ 2 Million
ARPU in India
0.71 USD
17.4
26.7
40.3
0
5
10
15
20
25
30
35
40
45
2015 2016 2017
IME
IN
BILLION
HOURS
Time spent listening to
Spotify content 2015-2017
Global Conversion
Rate of Spotify
27%
Target Conversion
Rate (in India)
4%
Average Conversion
Rate
4%
Source: Statista, Spotify Investors

3. Brand Elements
Green #1DB954
White #FFFFFF
Black #191414
Color Palate
Guidelines to integrate
across third party apps
like Instagram, blogs
etc. Spotify provides
widgets builder code
for better integration.
Widgets
Promoting its Spotify
premium, they pop in
for users hoping for
conversion or starting
trial versions.
Jingles
Combination of a simple
and modern wordmark
with the icon. Icon can
exist without wordmark,
but wordmark to be
accompanied with logo.
Logo & Icon

4. Key Consumer Segments
College Students
➢ Spends a lot of time on music apps
➢ Have a network where they can
influence each others choices
➢ Follows latest trends
Corporate Workers
➢ Listen to music to relax during hectic
hours
➢ Corporate companies provide
entertainment packages
➢ Techies tend to go music + work
Name: Julia
Works at: Wipro IT Department
Working hours: 9
Age: 26 years
Habit: Listen to music 2 hours a day while working
Pain Points: Interrupted during work for changing
songs and requires a trusted platform to
Name: Maira
Studies at: Fore School of Management
College hours: 6
Age: 23 years
Habit: Listen to music 3 hours a day
Pain Points: Sometimes not able to remember songs
and feel disheartened while traveling

5. Evolution of Spotify Logo
The initial Spotify logo, introduced in 2008, featured a
solid green square badge with playful lettering along
its bottom side.
It resembled dancing and having fun with the favorite
music the app finds for its users. Three arched lines of
different lengths and thicknesses were placed above
the letter “O”, representing the sound
Today it is drawn in a bright green color, which is
accompanied by three white lines on the emblem. The
new wordmark has its letters enlarged and looks
friendlier and more welcoming than the previous one,
though is written in the same typeface. The magic of
the green color makes the whole image vivid and kind,
standing for progress, growth, and success.

6. Competitor Analysis
01
Porter 5 Forces
02
Perception Mapping

7. TN
BS
TS
BC
Porter 5
F
orces
Bargaining power of Suppliers -High
- Top 3 studios control 80% of audio content
- New artists are readily available though not very popular
- Platform is currently the main option for artists to be recognised and listened to
Bargaining power of Customers – Low/Medium
- Multiple streaming options with zero or low switching costs
- Limited streaming selection across platforms. Spotify has an edge (coverage)
Threat of New Entrants - Medium
- Technical barriers are low
- Copyright protected Industry with high barriers to entry. (Content Rights)
Threat of Substitutes - High
- Youtube Music, Apple Music are technology and negotiation power houses with
cloud competency (vertically integrated) and product defaults (iPhone/Pixel)
Competitive Rivalry - High
- Content Library Similar
- Similarly priced (No price wars)
- Plenty of competitors
Porter’s 5 Forces

8. Perception Mapping
Artist Driven
Discounted Listening
New Music Discovery
Carefree Listening
Spotify with its “Freemium”
model attracts a significant
market share of people
Streaming industry is divided
with user preferences
segmented as per need basis
Spotify heavily relies on its
recommendation engine to
curate bulk music content
There has been a significant
change and shift and Spotify
can move to artist driven

9. Resonance
03
Exploring the brand with
Brand Resonance
Framework

10. Review your concepts
Audio streaming service
with free and premium
(Ad-free) subscriptions
Salience
Spotify plays high
quality and has a
wide library
Performance
vibrant duotone colours,
photography and
contemporary shapes
Imagery
Spotify is for
Indie fans and
millennials
Judgements
I love to listen to music and
share music and see what my
friends are listening to
Feelings
Spotify really helps me
be a music
connoisseur.
Resonance

11. Brand Positioning
Spotify lets users stream
the latest music and
podcasts from artists
around the world. It’s
recommendation engine
and social features are
hailed by every music
enthusiast.

12. Points of Parity
Rational Emotional
-music library
-is constantly updating
and adding new music
-has everything from
songs to specific
playlists
-available to Android
users
-easy to use/understand
-feel a sense of
connection to favorite
artists
-joy in personalization
-reliability
-personal value in
listening favorite songs
-opportunity to feel in
control

13. Points of Difference
Personalization
Personalising user experience
through data is much tougher
to copy, given its scale, it
gives it a distinct advantage
Playlists
Algorithmically generated
personalized playlists leverage
Spotify's data to surface content
for each individual user,
accounting for over two-thirds
of all listening on Spotify
Price &Subscription options
Availability
Spotify offers a Premium Duo
subscription for two users who live
at the same address. It is the only
one of the two music services with
a free, ad-supported tier
Spotify is available on Google smart
speakers. And, if a device is certified
as Spotify Connect compatible, it
means you can use the Spotify app as
a remote to control playback. It is also
available across a wide range of other
devices like Xbox and PlayStation.

14. #4 Channel Strategy
Audience – Millennials – Constantly on social
media, which is why the campaign is around
the #MoreThanJustMusic hashtag focussed
on Instagram, twitter
Goal – Encourage engagement with the
platform and form a more substantial bond
with the audience
Magazine Ads published on magazines such
as seventeen, tiger beat, today, teen vogue
Digital Marketing Channels – Own, Paid,
Earned
Role – To instil credibility among existing and
potential users

15. Channel Strategies On Spotify
Audio Ad – A cross-platform, unavoidable format comprised
of an audio spot, cover art, and clickable campaign name.
Display – Leaderboard ads in the Spotify player are served
when the user is interacting with Spotify.
Homepage Takeover - Block out a full day for your brand
on our Homepage.
Branded Playlist– Custom user-generated playlists with
brand logo, custom text, and optional link to your campaign.
Sponsored Session – Users choose to watch a video to
receive a 30-minute, ad-free session.
Video Takeover– Sponsor the ad break experience with
video and display.

16. One of the best OOH Copywriting and
Email Marketing team in the world

17. Year in Review and New Artists mailers
keep the users coming back and sharing

18. Understanding Spotify Better
02
01
Value Proposition Revenue Model
In addition to the core
music listening service
Spotify has developed
other features to add to
the value of the service
which have also given
opportunities to spread
awareness of the site
through co-marketing
. Spotify makes the case
that is aims to
regenerate lost value by
converting music fans
from these poorly
monetized formats (e.g.
illegal download
services) to the paid
streaming format, which
produces far more value
per listener

19. How Spotify Built A $5B Business With >75M Music Lovers
Anticipate what users want and give it to them
Create sense of exclusivity during initial launch
to generate hype
Collaborate with other companies in the same
industry to take advantage of their fanbase
Appeal to shared human experience i.e
emotional reach of music
Use of freemium model. Because
everybody loves free things

20. Collaborate with
corporate companies to
provide integrated
services to its
employees which can
help companies improve
productivity at the
workplace
Spotify will be involved in annual
festivals of many top-tier colleges
across the spectrum. Through
this, Spotify will not only increase
its visibility in the youth but also
provide them a platform to see
live performances of best artists
across the globe
Colleges
Corporates
Suggested Marketing Channels to Increase Reach and Revenue

21. Thanks