Anuraj Prjct Rough Draft

7/28/2019 Anuraj Prjct Rough Draft

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A PROJECT REPORT ON

Analysis and interpretation of the various steps

involved with Sales in a Trivandrum Radiostation

UNDERTAKEN AT

BIG FM 92.7, Trivandrum

Submitted to the

AMITY UNIVERSITY

In Second semester requirements for the

award

Of the degree of

MASTER OF BUSINESS

ADMINISTRATION


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ANURAJ K.R

Enrollment No: A31001911009

Under the Guidance of

Professor Srikant Kapoor, M.B.A

Faculty Member

Department of Management Studies

DEPARTMENT OF MANAGEMENT STUDIES

Amity Global Business School

Chennai2011-2013


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Acknowledgements

First and foremost, I thank God, the almighty for the

blessings &assistances in the successful completion of this internship.

I am deeply grateful to the Director in charge E.Ilamathiann, & Dean Mrs. Dr

VengadamaniAmity global business school, Chennai for their valuable suggestions

& support.

I am deeply grateful to my Marketing Prof. Srikant Kapoor, for his valuable

suggestions & support.

I am deeply grateful to Mr. Nashid, Station Head, Mr. Arun Kumar,

Marketing Executive, & Mr. Arjun Ravindran, Marketing Executive, BIG FM 92.7,

Trivandrum, and I would also like to thank Mr. Sujith Sivadasan, Station Engineer

for guiding me and providing all the information about the company and

encouragement.

I great fully acknowledge the inspiration & assistance ofall respectedfaculties

in Department of M.B.A, Amity Global Business School to my endeavors. It is my

privilege to record my true thanks to all staffs of BIG FM 92.7, Trivandrum for their

encouragement during my study.

I am thankful to my friends who gave suggestions and ideas during the period of

this project work.


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DECLARATION

I, Anuraj K.R, student of MBA of Amity Global Business School hereby declare that

the project work on BIG FM 92.7 presented in this report is my own work and has been

carried out under the supervision of ProfessorSrikant Kapoor. My report is submitted

as part of study curriculum and as a partial fulfillment of the degree of MBA.

I am also declaring that I am submitting this report on the Analysis and interpretationof the various steps involved with Sales in a Trivandrum Radio station. I guaranteethat this project report has not been submitted for the awards to any other university for

degree, diploma or any other such prizes.

Date: 09.10.2012

Place: Chennai Signature


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Abstract

The main objective is to find out the steps to be followed while searching for

prospective clients in a Trivandrum radio station and to enter into an agreement with a

client. The report lays down the different sources from which you can find prospectiveclients. The report also lays down the strategy a radio station must follow to attract

more clients. This project help to study about the process involved in finding out the

steps to be followed while searching for prospective clients in a Trivandrum radio

station and to enter into an agreement with a client. It helps to find out the different

sources from which you can find prospective clients. It also helps in find out the

strategy a radio station must follow to attract more clients. The type of research

undertaken is exploratory as the report describes the radio industry in Trivandrum. The

research is undertaken to find out specific details of this industry in Trivandrum. Theinformation necessary to conduct this research is mainly collected from both primary

and secondary data. A radio station has to develop various strategies to attract more

clients and to maintain the existing ones. Clients are stakeholders to the company and

its the responsibility of the radio station to ensure their satisfaction. Due to

competition, radio stations have to develop good strategies to ensure their position in

the market.


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Table of contents

SL.NO. TOPIC Pageno

1 Title/cover page 1-2

2 Acknowledgements 3

3 Letter from the company 4

4 Abstract 5

5 Table of contents 6

6 Introduction 7-24

7 Materials and methods 26-30

8 Result and discussions 31-78

9 Conclusions and recommendations 79-88

10 Future prospects 89-90

11 Appendices -

12 References 91


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Introduction


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Executive summary

Marketing landscape was populated with the thinking focused on making the

sale. Today market place is enormously more complex. Communications

media are proliferating. Competitors are everywhere-in hunger. In the midst

of these changes, busy customers are changing their ways. Customers

will continuously shift toward su pp li er s wh o can de li ve r

g rea t e r va lue . New wor ld i s a l so cha rac t e r i zed by an

amazingly rich information environment. Customers with the help of

communication medium like TV, radio, magazines, etc are able to access

information on competing brands, including costs, price, quality, etc. This is

a dramatic shift of economic power from sellers to buyers. At this stage radio

can server best to their customers n satisfy them? Radio is entirely a

medium of sound, which evokes smells, sensations and visual images

which brings the listeners imagination into play. Radio is one of the tools which

is effectively used for communication and positioning.. Radio can be

used effectively for advertisement since it can target the large audience

because of its high reach. Radio is good at increasing awarenessabout the brand and business and helping in building the brand image. But all this was

only for pure academic purpose. With the advent of television radio lost its

popularity and thus its purpose with the marketers. This led to

sharp declines in the proportion of advertisement spending on radio as

compared to other media. But then came the governments order on

liberalization and privatization. This brought about lots of changes in the

world of radio broadcasting in India. Prominent and established companiesentered the business of FM Broadcasting


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Introduction

Old media dont die! They just bounce back in new avatars. Not so long ago radio had

been written off as fuddy-duddy, down market and not so cool. Television and laternew media were touted to being the media of the future. But thanks to

technology radio is making a comeback. In fact, in its new avatar-fm-radio is all set to become the hippest,coolest and most with -it medium.FM radio is a new entity altogether and has to deal withnew market dynamics. Media owners dealing with new markets will virtually have todraw up their strategies as they go along, create programming that is new, innovativeand grab away eyeballs from TV sets and make them tune into their radio sets. Its a whole newchallenge and competition is never far away. Ad revenues will also not be easyto come by, as advertisers will expect media players to put their money

where their speakers are before they commit large sums of money towards radioadvertising. The involvement of listeners to radio is low, Vis a Vis television or printmedia.How eve r i n s p i t e of the var io us c hal len ges the eme rge nce of pr i v a t e F Mstations is certain to increase the quantum of radio in the country, muchlike satellite channels did to the quantum of television in the country. That should openup a vast new market of consumers-100 million Indian households own an estimated 150 millionradios, outnumbering television sets 3:1.The geographical area covered by radio in India is ashigh as 98 percent and the penetration level is approximately 97 percent. But FM

presently covers only 17percent of the area and 21 % of the population of India through transmitters.Currently radio has just 2 percent of the 9000 crores. Indian advertising market accordingto an Arthur Andersons survey. Globally depending on each country, radio has a 5 %to 12% of the advertising cake.FM station executives are not forthcoming onMulti-platform. Strategies as yet. Given that radio has penetrated into 100 million homes and a FM setcosts around Rs. 50/- FICCI estimates FMs share up from the present 1.5 percent to5 % in fiveyears. Revenue of radio services is expected to rise to Rs 689 crores by2008at a CAGR of 30 per cent. While TV is a family medium, radio is personalized. Alsoadvertising of certain product seems to work very well while some might not. Forexample, cellular phone service or auto related products would have a good impactwhen advertised on radio is primarily known as a drive time medium most

people who turn in are doing so wh i l e c o mmu t i n g . Th u s t h ep o t en t i a l i f F M i s b e t t e r i s b i g g e r t o wn , a s t h e ca r population is muchbigger. This would be the key when evaluating the medium. Also one must not forgotthat radio continues to be a medium that has tremendous reach among the poor andmarginalized sections of society. With the coming of more channels and theemergence of lifestyle radio will become a push and pull medium. As said earlier, is not justmaking a comeback but is being reincarnated into a new avatar


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There is always strategy involved in advertising, and the same holds true for radio.

Radio marketing strategy differs from other types because of its unique forum, which

requires special attention to areas otherwise thought unimportant. It is important to have

an organized plan when starting any marketing project so there is a clear path to follow.

One thing to consider when developing a radio marketing strategy is the audienceaffiliated with the radio station, channel, or network. This is easier with local radio

stations that have a clear following based on shared musical tastes or political views and

attitudes. Listeners can usually be broken into age groups and subcultures based on the

type of music or the political leaning by a host heard on a particular station or channel.

This changes when looking at internet radio, which allows a more customized radio

experience and therefore reaches a wider audience.

Radio marketing strategy differs from other types of marketing strategies because the

forum of radio requires an audio presentation, exclusively. Unlike other types of

advertising, which rely primarily on colors and imagery, radio marketing must focussolely on the audio message. This may not seem like a difficult task, but creating high

quality audio commercials has become an art form. Special attention must be paid to the

tone of the commercial, the voice of the actor(s), sound effects and music. All of these

things must blend together to form something audibly stimulating for the listener.This analysis and interpretation of the various steps involved with sales of radio station

is done to analyze and formulate new strategies to attract potential clients to advertise in

the radio and their by earning income to the organization. The report explains about the

different ways to find prospective advertisers for the company. Advertisers form the

major source of income for a radio station and therefore marketing in this field is ofhigh priority. This report will guide a marketer to find different advertisers in

Trivandrum in a very clear and concise manner. It will help new employees to

understand the different modes through which they can find prospective clients. This

report therefore will be helpful to both existing and new employees of the firm.


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History of Indian Radio

For more than 4 decades, the Government of India did not permit privaterad ios t a t i ons t o b roadcas t i n Ind i a . Then h i s to ry changed it s c o u r s e . I n 1 9 9 3 , th e Government allowed private FM operatorsto 'buy' blocks (chunks) on All India Radio, prepare programming content,book commercials from advertisers and broadcast the whole lot. Within4 years, (1997-98), the FM Radio advertising and sponsorshipbusiness grew to Rs. 93 crores with Times of India's Times FM & Mid-DayGroup's Radio Mid-Day becoming the main players. Then, in June 1998 theGovernment, through its electronic media regulatory body Prasar Bharti,

decided not to renew contracts of private FM operators. Notsurprisingly, the advertising revenue fell by 50% within a year! This time, theGovernment gave the green light to privatize radio in India. July6, 1999was the historic day when the Government announced that 150 newFM channels would be licensed across 40 cities and in 2000, theGovernment auctioned licenses for private FM channels to bolster therevenue. And the focus on metros was evident in the bidding. Expecting tocollect Rs 800 million from auctioning 108 licenses, the government had to

actually face mass withdrawal of bidders because of the huge license fee. A handfulof serious bidders chose to remain. In response to the Government's offer, manycompanies bid for the licenses to operate in key markets. But the going was not soeasy. Many gave up, unable to shell out the high license fee. Forinstance, the bidding price for the Mumbai license was reportedly tothe tune of Rs 9.75 crore. Others dropped out saying the businesswasnot viable. So, in effect , the competi t ion shrank, p layers cons ol id at ed and th eGovernment extended its deadline. Today, thereare roughly 10 players who will operate approximately in 37 cities across thecountry.


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Communication process

Any radio setup has two partsThe transmitterThe receiverT h e t r a n s m i t t e r t a k e s s o m e s o r t o f m e s s a g e ( i t c o u l d b e t h es o u n d o f someone's voice, pictures for a TV set, data for a radio modem or whatever), encodes it

onto a sine wave and transmits it with radio waves. The receiver receives the radiowaves and decodes the message from the sine wave it receives. Both the transmitter andreceiver use antennas to radiate and capture the radio signal. When you listen to a radio station and the

announcer says, "You are listening to9 2 . 7 f m wha t t he an n o u n ce r m ean si s t h a t yo u a r e l i s t en i n g t o a r ad i o s t a t i o n broadcasting an Fm radio signal ata frequency of 92.7 megahertz. Megahertz means "millions of cycles per second," so"92.7 megahertz" means that the transmitter at the radio station is operating at afrequency of 92,700,000 cycles per second. Your fm(frequency modulated)radio can tune in to that specific frequency and give youclear r ecep t ion o f tha t s t a t ion . Al l fm rad io s t a t ions t r ans mi t in a band of frequenciesbetween 88 megahertz and 108 megahertz. This band of theradio spectrum is used for no other purpose but fm radio broadcasts. Common frequency bandincludes the following.

AM radio- 535 kilohertz to 1.7 megahertzFM radio- 88 megahertz to 108 megahertz AM radio has been around a lot longer than FM

radio. The first radio broadcasts occurred in 1906 or so, and frequency

allocation for AM radio occurred during the1920s. In the 1920s, radio and

electronic capabilities were fairly limited, hence the relatively low frequencies for

AM radio. FM radio was invented by a man named Edwin Armstrong in order to make high-

fidelity (and static-free) music broadcasting possible. He built the first station in 1939, but FM

did not become really popular until the 1960s


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Importance of study

There is always strategy involved in advertising, and the same holds true forradio. Radio marketing strategy differs from other types because of its unique forum,

which requires special attention to areas otherwise thought unimportant. It is

important to have an organized plan when starting any marketing project so there is

a clear path to follow. The main purpose of this study is to find out the steps to be

followed while searching for prospective clients in a Trivandrum radio station and to

enter into an agreement with a client. The report lays down the different sources

from which you can find prospective clients. The report also lays down the strategy

a radio station must follow to attract more clients.

Scope of the study

This project help to study about the process involved in finding out the steps

to be followed while searching for prospective clients in a Trivandrum radio station

and to enter into an agreement with a client. It helps to find out the different sources

from which you can find prospective clients. It also helps in find out the strategy a

radio station must follow to attract more clients.


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About the Company

92.7 BIG FM is a nationwide private FM radio station in India owned by Indian

businessman Anil Ambani. It broadcasts at 92.7 MHz (92.7FM). It is a part of Reliance

Broadcast Network Ltd which is into television industry also.

Currently, it covers 45 cities. This is the only private FM radio station which is being

broadcast from Srinagar and Jammu in Jammu & Kashmir state. It has made an

announcement to invest Rs. 4,000,000,000 dedicated to transmission equipment,

infrastructure and licensing; which would make the proposed network the largest ever.

92.7 BIG FM, Indias No.1 FM Station, since the launch of its first Station in

September 2006, has expanded at a phenomenal pace, creating history, by launching its

45 station network in record breaking time of 18 months (barring Shimla which

launched in 2009). With a presence spanning across 45 cities, 1200 towns and 50,000

villages, a weekly reach of 3.57 crores Indians across the country, the brand is now

looking towards expanding to more markets and geographies.The brand has taken FM

as a medium of entertainment beyond the metros, to virgin markets, offering consumers

and advertisers a new experience of this medium of entertainment. 92.7 BIG FM

launched a station in Trivandrum, Kerala. Its the only station the company has in the

whole of Kerala. It competes with four other radio stations namely: Red FM, Club FM,

Radio Mirchi and AIR. The report is based on the information collected from the

Trivandrum station and other various data.

This report also focuses on where to search for prospective clients for a Trivandrum

radio station.


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ADLABS FILMS LIMITED

Reliance Media Works (formerly Adlabs Films) (BSE: 532399 NSE: RELMEDIA) isa film and entertainment services company based in Mumbai. It's a part of the RelianceADA group, its international presence with the opening of a dedicated film and mediaservices facility in London that offers front-end, processing, restoration, 2D to 3Dconversion and post-production services to broadcasters and studios.

The company was established in 1975, as Adlabs Films Limited in Mumbai. Forprocessing laboratory primarily catering to the advertising industry. In 2001, thecompany entered the multiplex business with the world's largest IMAX domein Mumbai. In 2005, Reliance Anil Dhirubhai Ambani Group became a majority

promoter in Adlabs Ltd. In 2009, it was renamed to Reliance Media Works Limited.

Reliance Media Works has grown from its origins of a film processing and printing labto an integrated global service provider across the entire film and media services valuechain with presence in India, USA, Japan and UK.

The company today has a dominant and comprehensive presence in Motion PictureProcessing and DI; Film Restoration and Image Enhancement; 3D; Digital Mastering:

Studios and Equipment Rentals; Visual Effects; Animation and TVC Post Production

Reliance Media Works has also become the first motion picture services facility in Indiaand all of Asia to be awarded certification by the UKs- industry body FACT(Federation against Copyright Theft). The certification is a major recognition of theefforts by Reliance Media Works to protect and safeguard the films that it handles frompiracy. The certification applies to Reliance Media Works film processing and print

lab, Digital Lab, Digital Cinema Mastering facility as well as Reliance Media Works'preview theatre, all housed within its Film City premises in Mumbai.


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ABOUT THE OWNER

92.7 BIG FM is a nationwide private FM radio station in India owned by Indian

businessman Anil Ambani. Anil Dhirubhai Ambani), born on 4 June 1959, is an

Indian business magnate. He is the chairman of Anil Dhirubhai Ambani Group, one of

the largest private conglomerates. Anil's elder brother Mukesh Ambani, who heads asthe chairman of Reliance Industries. The Ambani family is the richest family in India

and one of the richest in the world, their wealth inherited from Dhirubhai Ambani,

founder of largest Indian conglomerate Reliance Group.

He is a member of the Board of Overseers at the Wharton School of the University of

Pennsylvania. He is also the member of the Board of Governors of the Indian Institute

of Technology Kanpur; Indian Institute of Management, Ahmadabad. He is a member

of the Central Advisory Committee, Central Electricity Regulatory Commission. In

March 2006, he resigned. He is also the Chairman of Board of Governors of DA-IICT,

Gandhinagar.


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ABOUT THE CEO

Tarun Katial has been elevated from COO to Chief Executive Officer of BIG 92.7

FM. Tarun who joined as one of the earliest team member in 2006, has been actively

involved in creating the growth and evolution of the radio industry in India while

creating awareness about the panoramic difference that the radio medium can create for

economy, consumers and advertisers.

As Chief Executive Officer of RMWL, he will now report to the Board of Directors and

continue to be responsible for the radio business - BIG 92.7 FM Radio along with the

SBU's of BIG Live, BIG Reach, BIG Street and BIG Events.

With impressive stints at Star and Sony, Tarun Katial, the affable 33-year-old is one othe most successful executives in the Indian media industry. Tarun is stewarding the

setting up of BIG 92.7 FM's, 45 stations across the length and breadth of India, givingdirection and realizing stakeholder's vision. The vision being 'To be the first choice oflisteners as we not only entertain but positively impact and transform their lives'

Prior to BIG 92.7 FM, Tarun Katial was with Sony Entertainment Television where heheld the position of Executive Vice President - Business Head SET.


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Tarun, who has a media & communications background, has been with leadingadvertising firms of the country including Saatchi & Saatchi, Nexus Lowe and Ogilvy &Mather. Tarun brings impressive credentials with an established track record of well-crafted successful shows and channels.

He was also a part of the team that won the first Media Gold at Cannes. As the COO ofBIG 92.7 FM with 45 stations pan-India to operate with, Katial will be at the core of thenext communication revolution -- FM Phase II, and has a real chance to make adifference to society at large.


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The background of the project

92.7 BIG FM launched a station in Trivandrum, Kerala. Its the only station the

company has in the whole of Kerala. It competes with four other radio stations namely:

Red FM, Club FM, Radio Mirchi and AIR. The report is based on the informationcollected from the Trivandrum station and other various data.

The report explains about the different ways to find prospective advertisers for the

company. Advertisers form the major source of income for a radio station and therefore

marketing in this field is of high priority. This report will guide a marketer to find

different advertisers in Trivandrum in a very clear and concise manner. It will help new

employees to understand the different modes through which they can find prospective

clients. This report therefore will be helpful to both existing and new employees of the

firm.

The research is undertaken in a systematic and organized manner. Information will be

collected from both primary and secondary data. A thorough study was made to

compile this report so as to benefit the reader in the best possible way.

This report focuses on the steps one must follow while searching for prospective

advertisers in a radio station. Therefore this report is prepared to simplify a marketers

task so that they can carry on their work in a more systematic manner.

This report also focuses on where to search for prospective clients for a Trivandrum

radio station. Further it explains various steps to be followed to attract more clients for a

radio station.

The research has been carried out after a thorough research on the above topics. The

research lays down all the information of the objectives of the study in detail.


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The objectives of the project

The main objective is to find out the steps to be followed while searching

for prospective clients in a Trivandrum radio station and to enter into an

agreement with a client.

The report lays down the different sources from which you can find

prospective clients.

The report also lays down the strategy a radio station must follow to attract

more clients.

. The report will help new employees to understand the different modes

through which they can find prospective clients.

The report helps to develop various strategies to attract more clients and tomaintain the existing ones.


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The rationale for the project

Radio marketing strategy differs from other types of marketing strategies because the

forum of radio requires an audio presentation, exclusively. Unlike other types of

advertising, which rely primarily on colors and imagery, radio marketing must focus

solely on the audio message. This may not seem like a difficult task, but creating high

quality audio commercials has become an art form. Special attention must be paid to the

tone of the commercial, the voice of the actor(s), sound effects and music. All of these

things must blend together to form something audibly stimulating for the listener.

The research is undertaken in a systematic and organized manner. Information

will be collected from both primary and secondary data. A thorough study wasmade to compile this report so as to benefit the reader in the best possible way.

This report focuses on the steps one must follow while searching for prospective

advertisers in a radio station. Therefore this report is prepared to simplify a

marketers task so that they can carry on their work in a more systematic manner.

This report also focuses on where to search for prospective clients for a

Trivandrum radio station. Further it explains various steps to be followed to

attract more clients for a radio station.

The research has been carried out after a thorough research on the above topics.

The research lays down all the information of the objectives of the study in detail.


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Radio as Advertising Medium

The advantage radio advertising offers your business stems from its unique combinationof high reach, high target ability, and low cost. When combined with the database

approaches of traditional direct marketers and broadcast direct-response advertisingtechniques that drive response and deliver new customers, radio advertising can be -and is for many of our clients - the main engine of growth and profitability for a

business.

Radio Advertising Costs

Radio advertising cost is perhaps the most obvious and important of the top threecharacteristics of radio advertising that makes it a very attractive advertising vehicle.

On both creative development and media costs, radio beats TV by a significant margin.Where the most simple and least expensive TV spot ad will easily cost well over$50,000 and take months to produce, you can have a radio spot developed for less than$1,500 in a matter of days or weeks. In terms of media costs, you'll often pay aminimum of thousands of dollars for TV media placement. However, you can air aradio spot for under $100 at agency discounted rates and you can air a full week's radioadvertising test on multiple stations for as little as $2,500. With TV, you can investhundreds of thousands of dollars before you know whether a campaign will either takeflight or until enough is learned to determine that it won't work. With radio, the testing

happens much faster, so it costs you less in time value of money, as well as up-front andat-risk investment. Factor in TV dubbing costs and the picture only gets better for radioadvertising costs.

Radio Advertising Reach

An advertising medium must reach your target customers or it provides no benefit.Radio has a wide-scale appeal to consumers. Even with the alternatives available today,listening patterns appear to be stable, indicating that radio remains a popular consumer

choice. The 13,000 radio stations (approximately 8,800 FM, 5,000 AM) broadcastingacross the United States together reach over 94% of the US population over 12 yearsold each week, according to Arbitron's American Radio Listening Trends report. Withradio, there is rarely a question of whether you'll be able to reach your target customer.
http://www.strategicmediainc.com/radio-commercial-production.phphttp://www.strategicmediainc.com/buying-radio-advertising.phphttp://www.strategicmediainc.com/buying-radio-advertising.phphttp://www.strategicmediainc.com/radio-commercial-production.php


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Target ability

The third characteristic of radio that solidifies its advantage to you is its target ability.The fundamental advertising axiom ofreaching the right peopleat the right timewiththe right messageat the right cost is more possible with radio than with TV or print,the other large-scale "push" direct response advertising mediums. As a result, yourdollars spent on radio advertising are more efficient, generating a greater return oninvestment. With the right data, for example, your radio advertising agency can tailoryour media plan so your radio ads reach moms between the ages of 34 and 45. Theradio industry's grouping into formats is partially responsible for radio's ability to targetyour customer efficiently.

Measuring the radios effect

Effectiveness research requires clarity of objectives what are the agreedobjectives of the overall campaign and of the

radio campaign within this? Radio effectiveness can be measured either usingcontinuous research or in stages (pre &post) the pre-stage is normally the week before thecampaign, the post-stage in the week after the campaign finishes.Consumers tend to misattribute radio advertising memories to other media,Particularly TV. This is particularly likely to happen where there is a strong executional link betweenthe two media and/or where there is a history of TV advertising for the brand.

Th i s t en d en cy t o m i sa t t r i b u t e c an b e o f f se t b y u s i n g m a t ch ed sam ples of listeners and non-listeners. This way, if the increase in advertisingawareness i sg rea t e r a mong l i s t ener s than i t i s a mong non-l i s t en e r s , t h en t h e e f f ec t c an b e attributed to radio fairly confidentlyeven ifthe listeners think the advertising was in another medium. Radio research can successfully

be done using telephone interviewing and scan be played down the line. However caseswhere other media are to be included in the research it might be more appropriate to use face-to-face interviewing.

Co m m er c i a l r e co g n i t i o n i s a v a l u ab l e t e ch n i q u e i . e . p l ay i n g t h e ads t o co n su m er s . I t p r o v i d e s a m o r e r o b u s t m easu r e o f wh e t h e r t h eyh a v e h ea r d t h e campaign, and avoids problems of trying to describe the ads. Brandnames can be bleeped out of the commercial, to test whether the campaign is linked to the brand.


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The limitations of the project

1. Radio advertising is relatively new in Trivandrum and therefore it is difficult to

convince clients about its advantages.

2. Secondary information about this industry in Trivandrum is very less as the

industry started growing again only in the recent past.

3. Information regarding other radio stations was difficult to get.


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Materials and Methods


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Research design

The type of research undertaken is exploratory as the report describes the radio industry

in Trivandrum. The research is undertaken to find out specific details of this industry in

Trivandrum. The information necessary to conduct this research is mainly collected

from both primary and secondary data.

Primary Data

1. Direct observation and experience during the course of the internship.

2. Interviews conducted with individuals experienced in this field.

Secondary Data

1. Online articles related to the topic.

2. Presentations done on the same field.


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Data collection tool

1. Expert opinions- individuals experienced in the radio industry.

2. Literature searches- research articles and papers.

3. Direct observation and experience during the course of the internship by doing

field work and meeting potential clients like;

Hilton Hyundai

Adrak ventures International

Manjali Jewellers

Regional Institute of Aviation and Engineering

Rose and colours lifestyles

4. By doing competition mapping which is done to keep track of other radio stationand their advertisements.

5. By doing print track which is done by keeping track of advertisements that

appear in the newspapers and magazines

The above research has been carried out mainly from what was learned during the

course of the internship and also from interviews conducted with various individuals

experienced in the respective field and also with a client and a prospective client of the

radio station.


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Logical flow of the project

The research was done in a systematic and organized manner. There was enough time to

collect all the required information. The steps involved in carrying out this research are

given below:

1. The research topic was first chosen and clearly defined.

2. The research methodology was chosen next so as to make it simpler to collect the

relevant data.

3. The relevant topic was then studied so as to ensure better judgement for the

research. This was done so by reading several articles given online and also with

the help of presentations.4. The major portion of the data was collected through direct observation and during

the course of the internship. Important and relevant data was jotted down.

5. After gaining a better understanding about the research topic interviews were

held with 92.7 BIG FM sales account manager and the station head of

Trivandrum, Nashid N and also with client service department of stark

communications.

6. To get a different view of the topic a client and a prospective client of the radio

station was interviewed.

7. After collecting the necessary data more research was conducted online to get a

better view on the subject.

Finally all the collected data were collated in the best possible manner. All the

irrelevant data was avoided and research was completed in the best possible manner.


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Advantages of the adopted methodology:

1. Direct observation and experience during the course of the internship helped the

research in getting a very clear idea about the required information.

2. Interviews with people experienced in the field helped the research by getting a

better view about the topic.

3. Interviews with the clients helped the research get a different judgement about

the topic.

4. The secondary data which is collected helps in understanding the topic under

study better and it was not time consuming to collect the data.


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Advantages of doing this research:

To me:

92.7 BIG FM is owned by business man Anil Ambani and is the best radio station in

India. This report was done while working in this prestigious organization. There were

several benefits in working in this organization.

1. This internship taught me how important marketing in a radio station is.

2. It also taught me the benefits of advertising through a radio.

3. It helped me improve my communication skills as I had direct interaction with a

lot of clients.

4. This internship helped improve my negotiation skills. Negotiation is unavoidable

while dealing with most of the clients.

5. It taught me how to draft a proposal for a client.

6. I was also taught the important terms involved in the radio media.

7. It also helped in learning how to serve a client.

To the company:

1. I was working in the marketing department of the company and I was able to get

a client for the company.

2. I was also able to get leads on a few clients.

3. The report helps the organisation in its sales process in the organisation.

4. The report mainly helps new employees of the firms marketing department.

5. The company could shortlist some companies who were not interested in radio

advertising.


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Result and Discussions


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Analysis of data

The radio station has its own way of approaching clients. The first step is to

find out prospective clients for the company. This proved to be a tedious task

as there are several clients and to narrow it down to the prospects from thewhole client population was difficult. The second step is to meet the

prospective clients. Information regarding how to approach a client? and

what all a client requires? is important at this stage. The next step is to

close a deal with the client. This step provides information about the

necessary documents required and the steps to be followed while closing a

deal with a client. The fourth step is to ensure that the details of the contract

are fulfilled to the best of ones ability and to ensure that the deal is carriedout without any complaints from the clients side. The relationship of the

company and the client does not end when the deal is fully carried out. The

clients proposal has to be renewed for a new term and a relationship should

be built with the clients. Information regarding follow up was gathered

during this stage of the internship.


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Pros and Cons of Radio

Every medium has special strengths and weaknesses that make it more or less suited tospecial marketing problems of specific advertising. There is no one medium

which is ideal for advertisers or every situation. Radio has a number ofcharacteristicsth at mak es i t an id ea l ve hi cl e fo r nu me ro us ad ve rt is e r s a s e i t h e r a p r i ma r y o r secondary medium. Also, there are certaindisadvantages of this media which need to be considered

Advantages of Radio

Largest Reach and FrequencyRadio offers an excellent combination of reach and

frequency. The average adult listens more than 3 hours a day,radio builds a large audience quickly and a normal advertisingschedule easily allows repeated impact on listener. 90% of India hasaccess to radio which is unmatched by any other media. Radio isnot on ly the medium of hearing news but also is a source ofentertainment and advertising for the rural masses . Radio also reachesto uneducated village folk who do not read print publications. Atthe places where the literacy rates are low where people hardly readnewspapers and radio is the only medium that they can understand. Theycant afford a TV set. Therefore radio is more popular.

Broadly SelectivitySpecialized radio formats with prescribed audiences and c

overage a reasenab le adver t i se r s to se l ec t t he marke t theywant to reach. From a market ing perspect ive, radio has theability to reach prospects by sex, age group, ethnicor religious background, income group, employment category, educational level or special interest with a format that adds even greaterdimensions to its already strong personal communication environment .Radios

high overall reach and its ability to provide numerous formats make it a multifacetedmedium. Because of the relatively low cost of production, advertisers areable to adapt commercials to the various stations then buy, astrategy that would normally be prohibitively in television.


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CostEfficiencyRad i o i s t h e l e a s t co s t m ed i u m an d i t h e l p s t o r e ach

mas s a u d i e n ce w i t h various backgrounds. Radio offers its reachfrequency and selectivity at one of the lowest costs per thousand andradio production is relatively inexpensive. National spots can be

produced for about one tenth the cost of a TV commercial, andlocal stations often produce local spots for free. Also, radio adscan be produced very quickly.

Creativity and FlexibilityRadio is the most flexible medium because of very short

clos ing periods for submitting an ad. This means an advertiser can wait

until close to an air date before submitting an ad. With thisflexibility of simple formats such as voice only can be createdalmost immediately to reflect changing market conditions or advertiserscan take advantage of special events or unique competitiveopportunities in a timely fashion. Radio also offers timeless, immediacy,local relevance and creative flexibility. The personal nature of radio,combined with its flexibility and creativity, makes radio the choice fornumerous product categories. Copy changes can also be made very quickly.While radio may be one-dimensional in sensory stimulation, itcan still have powerful creative impact. Radio has been described as thetheatre of the mind. The musical formats that attract audiences to radiostations can also attract attention to radio ads. Audiences that favor certainmusic may be more prone to an ad that uses recognizable, popular songs

.


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Proximity to Purchase

The mobility of radio and its huge out - of - home audience gives the mediuman advantage facing most companies, it is imperative that brandsachieve consumer reinforcement as near as possible to the purchasedecision. Radios daily frequency offers scope for continued messagesand hence the consumers are more likely to remember that product andconsumer lend up buying that product.

As a Complement to Another Media

In some cases, radio is the primary medium for local advertisers. Howeverfor national advertisers and most large local and regional firms, radio ismost often used as complementary medium to extend the reach andfrequency of primary vehicles in their advertising schedule. A fundamentalmarketing strategy for radio has been its ability to successfully work withother media to increase reach and frequency or to reach non-users and light users ofother media. The radio industry realizes that the bulk of its revenue comesfrom advertisers who use radio as a secondary medium.

A personal mediumThe human voice is the most personal means of communication.

Radio gives the advertisers the opportunity to take advantage of the rightcombination of words, voices, music, and sound effects to establish aunique one-on-one connection with prospects that lets you grab theirattention, evoke their emotions, and persuade them to respond. Radio can

be targ eted by lifestyle fo rmats and is more efficient thanother media from a cost and production standpoint. As a result manyadvertising agencies will move their budgets into radio.


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Disadvantages of Radio

Misunderstanding

Sometimes there might be a misconception regarding the radio ad as it is only heard. Intelevision the chances of such misconception is less, as it is audio as well as visual.

Poor Radio Attentiveness.

Just because radio reaches audiences almost everywhere does notmean that everyone is paying attention. When a consumer is listeningwhile doing some work or traveling in a car, he or she often switches stations whenan ad comes and divides his or her attention between the radio and road.

Fragmented AudiencesThe large number of stations that try to attract the same audience in

a market has created tremendous fragmentation. If a large number of radio stationscompete for the same audience, advertisers who want to blanket the markethave to buy multiple stations, which may not be cost effective. However,in radios quest to continue to fine tune its reach, some advertisers wonderif radio is offering too many narrowly defined options. For those productcategories with broad appeal, it is difficult to gain effective reach andfrequency without buying several radio stations and networks.

Chaotic buying proceduresFor an advertiser who wants to include radio as a part of national

advertising program, the buying process can be sheer chaos. Since national networksand time in individual markets on a station-by-station basis. Thiscould involve dozens of different negotiations and individual contracts.

Short Lived and Half hearted CommercialsRadio commercials are brief and fleeting. They cant keep like a

newspaper or a magazine ad. Radio must compete with other activities for attentions,and it does not always succeed. Only 20 % of time availabilityres tri cts the f requency of message exposure.


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Creative LimitationsTh e au d i o o n l y n a t u r e o f r ad i o co m m u n i ca t i o n i s a t r

e men d o u s c r ea t i v e compromise. An advertiser whose product depends ondemonstration or visual impact is at a loss when it comes to radio. Manyadvertisers think that without strong visual brand identification the medium can

play little or no role in their advertising plans.

Limitations of SoundRadio is heard but not seen, a drawback if the product

must be seen to be understood. Some agencies think radio restricts their creativeoptions.

RJ needs trainingIt is very important that the Radio Jockey is trained enough to deliver the

adverstiments Sometimes the voice really matters. If the voice is irritating then there is achance that the campaign may flop.

No pro per research availableIn India, there is no proper research has been available on the area of radio

listening, which will be very helpful for the advertisers to decide them on advertising planand budget and other matter. Therefore, there could be a problem for the marketers in thesense that they might advertise on wrong channel at a wrong time.

Poor Radio Attentiveness.

Just because radio reaches audiences almost everywhere does notmean that everyone is paying attention. When a consumer is listeningwhile doing some work or traveling in a car, he or she often switches stations whenan ad comes and divides his or her attention between the radio and road.


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Fragmented AudiencesThe large number of stations that try to attract the same audience in

a market has created tremendous fragmentation. If a large number of radio stationscompete for the same audience, advertisers who want to blanket the markethave to buy multiple stations, which may not be cost effective. However,in radios quest to continue to fine tune its reach, some advertisers wonderif radio is offering too many narrowly defined options. For those productcategories with broad appeal, it is difficult to gain effective reach andfrequency without buying several radio stations and networks.


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Radio AdvertisingRadio is still the king when it comes to getting your music. The best way for a new

band to get heard by the public and record label executions is over the airwaves.Paradoxically, radio currently has only a 2.9 per cent share of the total advertising pie in

India. Globally, depending on country, radio has a 5 per cent to 12 per cent share of theadvertising cake. On the higher side are countries like the United States, with 13 percent, Canada, with 12.7 per cent and Spain, with 9.1 per cent. Companies that advertiseon FM channels today such as Hindustan Lever (HLL), Dr Morepen, Amul, Castrol,Santro, Britannia, Parle, DSP Merrill Lynch etc are dominatingthe advertising on each one of the FM channels, be it Radio Mirchi, Go 92.5 Red93.5 or Radio City.

Radio Advertising

Today, 70 per cent of the advertising comes from big-budget, national advertisers andthe balance30 per cent comes from retail. It is a known fact that retail advertising willgrow because radio presents the perfect advertising medium for local businesses in alocal environment. But national advertisers are also operational in the local market,implying that it is as important to them as it is to a retail advertiser, if notmore. Nevertheless, it is undeniable that radio can be integral in exposing a new artist,new product or services to new fans and taking a local market to a national level.Accordingly, it is extremely difficult to obtain meaningful airplay. Putting it

bluntly, successful radio promotion revolves around making and managing

relationships. Radio promotion is an art that demands a certain style you may simplyneither have no desire to cultivate. On top of that, it can take a great deal of time tomake all the contacts and connections that are required for successful radio promotion.Advertising agencies that control the national picture will be slow to move onto radio for creative reasons. They have people who love to make televisioncommercials, but don't have anybody who knows how radio works. Here,only about 2.9 per cent of the money spent by advertisers goes to radio, and uptill now, all of that went to ALL INDIA RADIO. However, in revenue terms, moneyfrom advertising has gone up. Revenue from commercials on AIR, including on VividhBharti and Primary Channel (including FM) rose from Rs 393 million in 1990, to Rs

808.4 million in 2000, & Rs. 600 crores in 2002, representing a growth ofabout 7.5 per cent per annum. A clear advantage that radio has is that it can easilytarget city-based audiences. This makes sense if the advertiser, like a food chain that isopening an outlet in Mumbai, wants to target a specific audience. In such cases, itdoes not make much sense to advertise on TV, and the print medium is tooexpensive .


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Radio i s the best be t for such smal l - sca le promot ions . I t i s al so apt lysuited for local promotions, and once audiences can be targeted, it has tremendous

potential to eat into local mediums.

Producing Radio Commercial

Producing a radio spot can be a lot of fun advertisers often say its the most fun theyever have in advertising. It can also be simple and inexpensive. There are three basicelements to work with: the announcers voice, music, and sound effects.Production can be done in the stations own studios or in an independent

production house. Stations are usual ly well - equipped to produce spots ,and they often employ young, creative people whose fresh ideas will keep yourspots from sounding like everywhere elses. It all begins with a good script, which

means not just the words, but the combination of words, music, and soundeffects. All these are part of the script. Your spot can be cleveror straightforward, but it must grab the listeners attention in about threeseconds, and it must not leave the listener wondering, Whose spot wasthat, anyways? The following are some of the factors you should have in mind fromthe first moment you sit down to plan your spot.

1)The VoiceThere are two factors concerning voice. First, you should use a voice that is appropriatefor your image. There are two good, low- cost options for achieving this, andone higher- cost option:a ) U s i n g l o c a l r a d i o talent

b ) Us i n g a n a ma t e u r v o i c ec) Hiring professional voice talent.

Using local radio talentIf station produces the spot, one of their on-air people risk having the voice be sofamiliarthat the listener doesnt pay attention. If the ad runs only in drive time,one can have the mid day announcer do the honors. Get the least familiar voice

available. Listeners will be less likely to tune it out. Female announcers can also beused. Studies have shown that women presenters are just as effective as men; butonly a small (but increasing) percentage of all broadcastsales presentations are made by women.


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Using amateur voicesOne great thing about radio is that even an untrained voice can be veryeffective. In fact, the less the voice sounds like one of the regular announcers,the better. A womans voice, a childs, or even your own can make l istenersstop and pay attentions imply because its not what theyre expecting to hear.A word of caution: Amateurs can sound stiff and false.

Using professional voice talentIf a very sleek production value is needed hire voice talent from another station, thelocal community theater or, in larger markets, from a talent agency.Celebrity voices can sometimes be hired.

2). Music

The power of music cant be overemphasized. There are several options for puttingmusic into your commercials:

a) Have original music produced.

b) Use free music from the stations library.

c) Get permission to use an existing recording by a known artist. (But Itsdifficult and expensive to obtain the rights).

d) Buy canned music (sound alike) in the style of many po pularcomposers in all large markets who supply such productions for a modest charge


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Selling Radio Commercial

Selling radio advertising involves a number of steps. The radio salesperson must be

aware that everyone involved in the transaction is looking for different results.The media buyer is looking forefficient cost per point, while the clients goal is tomove product. As all radio stations are perceived to be same it is important to buildvalue into the radio station by offering credible benefits that produced results andsolutions for prospective clients. Radio salesperson must begin with the clients needsand marketing goals. The first step in the process is to meet the client to gain asmuch information as possible about the client and his or her business. After thesalesperson has a firm grasp of the advertising problem, the next step is to preparea p r o p o s a l . T h e s u c c e s s f u l o n e s b e g i n w i t h t h e c l i e n t s p r o b l e m and sales objectives and move systematically to a solution. Often the job of

the radio sales person must be conducted on a number of levels.a) An advertiser who is not currently scheduling radio may have to beconvinced that the medium in general is for a particular product.

b) The salesperson must move from the general advantages of radio to theadvantages of specific station.c) The radio representative may have to show how radio fits into the mediamix currently being used by the advertisers.Radio advertising faces challenges both from within the industry and from other mediaas it competes for advertising price.


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Elements of good radio commercial

Be single-minded, focused.The consumer should not be burdened with too much information. Prioritize the

copy points. The central idea should be highlighted.

Research your product or service.Many clients keep tabs on their competition, but they rarely

related their features and benefits to factual data. Meaningful statistics cangive substantial support to your message.

Relate to the consumer,Always relate the brand to customers wants and needs.

Generate extensionThe effect of a commercial can be multiplied by achieving extension. Clever

phrase or execution can have consumers asking other people if they have heard the spot.

Produce an immediate physical, emotional, o r mental response.

Laughter, a tug on the heartstrings, or mental exercises of a consumer during aradio spot help seed the memory and aid messages retention.

Use plain, conversational English. Be a clear communicator.

Creative Radio Advertising

These are some guidelines for producing creative radio advertisements:-1. Understand the environment2. Speak the listeners language3. Engage and entertain the listener4. Keep it simple5. Judge what you hear, not what you read

6. Production values are important7. Plan your production8. Dare to be different9. Take it seriously


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Types of Radio Advertising

Network

Advertiser may use one of the national radio networks to carry theirmessagesto the en t i r e na t io na l marke t s s imul t aneo us ly v ia s t a t ions th a t s u b s c r i b e t o t h enetworks programs. Networks provide national and regionaladvertisers with simple administration and low effective net cost per station.The advantage is less product work and lower cost per station.Disadvan tage inc ludes l ack o f f l ex ib i l i ty in choos ing a f f i l i a t ed

stations the limited no. of stations on a networks roster and the long leadtimes required to book time.

Spot Radio

Spot radio affords nationals advertisers great flexibility in their choice

of markets, stations, airtime, and copy. They can tailor commercials to the localmarket and put them on the air quickly some stations will run a commercialwith as little as20 minutes lead time.

Local Radio

Local times denote radio spots purchased by a local advertiser for local market. Itinvolves the same procedure as national spots. Radio advertising is either live ortaped. Most radio stations use recorded shows with live news in

between. Likewise, nearly all radio commercials are pre recorded to reduce costand maintain broadcast quality.


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Sponsor Programs

Here the advertiser sponsors the whole or part of the programme. TheRJ informs the audience about the sponsored company throughout the programme.

RJ Mention/Whats on MentionHere the Radio Jockey [RJ] informs the audience the informationgiven by advertiser about the new product launch, sale, exhibition going on at certain place etc


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Future of Radio Industry

FM Radio can play its part in building a stronger business future for India.Providing free-to-air local broadcasts of music and entertainment, helpful information -traffic advisories, community announcements and public service messages provide areal value-added service.But at current levels of advertisingsupport, each radio station is reeling under the brutal financial impact of high costs.With more players in the fray the FM radio industry would grow and also enhance thegovernments yield from licensing radio naturally. The new India deserves an active

private FM radio sector. It can provide a level playing field with benefits for listeners,for advertisers, employment & career options. Spearhead the government objective ofgrowing the FM radio business in India.

With the government ready to reduce the license fees it will help in attracting new

players like reliance which had earlier backed out only due to the entry fees. Alsogovernment allowing foreign players to enter him Indian market it will help theindust rygrow. Virg in group has a l ready s tar ted explor ing the Indianma r k e t f o r s u i t ab l e partners. Various radio stations are coming up with IPO forexample Radio Mirchi thus helping them expand. Th e f u t u re l o o k s b r i g h t a sth e re ac h of ra di o is ex pe ct e d to ra is e po st th e increase in the numberand quality of players in the industry. It is on the basis of these key drivers of growth, itis being predicted that radio's share in the total advertising pie will see an increase in themedium term. There are an estimated 150 million radio sets across the country. The Rs1.6 billion industry is reported to be growing by 31 percent very year and should touchthe Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually. Also, thoughradio has only a 2 per cent share in the Rs 6,000 crores Indian advert is ing markets,advertising spending is expected to amount to Rs 500crore this year.


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SWOT ANALYSIS OF BIG FM 92.7

Strengths:

Recently, the government has agreed upon revenue-sharing model, which is 4 % for thegrowth of the radio stations. So that they can develop themselves well because thisindustry is still in an introduction stage.The success of private FM stations, and reveals that radio listenershiphabits have changed considerably; not only are listeners tuning into it moreoften but also sticking to radio for longer hours every day.Radio is considered as a background medium, because people can listen to radioanytime and anywhere they want. It is also a free medium.90% of India has access to radio which is unmatched by any other media.Rad i o a l so r each es t o u n ed u ca t ed v i l l ag e f o l k wh o d o n o t r e ad p r in t publications. At the places where the literacy rates are low where people hardly readnewspapers and radio is the only medium that they can understand. They cant afford aTV set. Therefore radio is more popular.Radio is the least cost medium and it helps to reach mass audience withvarious backgrounds. Radio offers its reach frequency and selectivity at one of thelowest costs per thousand and radio production is relatively inexpensive.Radio is considered as a medium where the Proximity to purchase is very high.

Radio is a complement to another media. Therefore, other media or theadvertisers or agency can use this medium for brand recall.


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Weakness:

One of the major weaknesses of Radio is that there is very less differentiation in the

programmers that are aired. Most of the stations plays much of the music

t h a t i s p l a y e d c o n s i s t o f M a l a y a l a m F i l m s o n g s , a n d t h e r ef o r e i t i s d i f f i c u l t t o differentiate between the programmers of the different

channels.

Fragmented Audience - the large number of the audience in India is fragmented in

various remote places. And therefore, the percentage of listener tuned to

anyone station is likely very small.

No proper research available - research is very important for any advertising segment.

Research is the main base to attract client and get morerevenue.But, in India there is no proper research is available. Many stations are

conducting their own research which can be biased.

R a d i o o n l y n a t u r e o f r a d i o c o m m u n i c a t i o n i s a t r e m e n

d o u s c r e a t i v e compromise. An advertiser whose product depends on

demonstration or visual impact is at a loss when it comes to radio. And like its radio

message creates a fleeting impression that is often gone in an instant. Many advertisers

think that without strong visual brand identification the medium can play little or no

role in their advertising plans.

Increase in listenership numbers but no increase in ad revenue. This is the

situation that every radio channel is facing.


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Opportunities:

Getting copyright licenses from the government for running mega events which are aired on the AIRradio station and have been restricted to be aired on other private stations.

Launching a radio station with 24-hour news channel

Tie-ups with BEST or railway authority for playing the FM in train and in bus.

The launch of Private Radio FM has managed to create a set of New Listeners for the medium

The new radio stations which will come in future they can have venture with the college or universitycampuses. And can play their station which will exclusively provide with the information relating to thatuniversity/college campus.

Wi t h t h e co m i n g o f t h e m an y m o r e n ew p l ay e r s i n t h e r ad i oin du s tr y e ac h channels can position themselves quite different fromothers, like, if some station is targeting the health conscious people then their programmingstrategy will vary accordingly. And then it is easier for the advertisers also to decide onwhich channel to advertise.

Allowing private FM players to start news and current affairs programmers.

One has to constantly innovate, and that is the challenge. Brand building is thus much more difficult.At the same time, we are very bullish, and gung-ho about this whole enterprise.

Leaves huge scope for innovation in local market.


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Threats:

The biggest threat to private radio industry players is ALL INDIA RADIO, RED FM,CLUB FM etc. AIR is the biggest player in India because of its reach ,low charges, government channel etc

Because of the new government policies there will be more number of stations andthen competition will also increase. This is one of the biggest threats itfaces. With no particular differentiation in the music. So, there is a fear of losing its

brand loyalty.


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Porters five forces analysis for the media industry in India

This part is an outline of positional assessment of the media industry using porters fiveforces model

Barrier to entry:Moderate, rules and regulations, and cost of research and development

Industry competition:

High, advantage gained through technology and marketing strategies

Suppliers:Supplier power is high

Buyers

Buyerspower is high

Substitutes

Moderate


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DPEST analysis on BIG FM 92.7 in Trivandrum

DPEST stands for: Demographic political, economic, social/cultural, and technological.A description of developments (known) and rising issues (unknown) which may impacton an industry/sector,

Demographic

The demographic of the media depends on the population residing in the locality.The age segmentation and gender segmentation, culture, etc is explained in thedemographic analysis of the DPEST. The FM in Trivandrum mainly focuses on youthand middle aged people/

PoliticalThe government in Kerala has now been encouraging radio industries to broadcast theirprograms though out the state. The government also uses the radios channels to create

public awareness through creative advertisements and programs. In fact we say thegovernment also supports the radio industry. The main income of BIG FM 92.7 isearned through the government advertisements and programs.

Economic

As BIG FM 92.7 is a part of Adlabs which is a owned by Reliance the economicstrength of BIG FM is much more when compared to other FM stations in Kerala. Theyhave a good turn over and a major share of it is from the government.

Social aspectFM stations play a good role in listeners now a day. BIG FM always tries to keep thesocial aspect in front of them and they think the social aspects are very valuable. TheBIG FM only plays Malayalam songs in the Trivandrum station and they also conductspecial programs for different Kerala festivals.

Technological advances

BIG FM 92.7 possesses almost also the new technologies available in the market. Theytry to change and adapt according to the changes in technology and changes in market.


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Marketing mix

Marketing mix describes the specific combination of marketing elements used toachieve an organizations

goal and satisfies the target market. Marketing mix is made of fourPs: Marketing mix elements are also

implemented in bigfm on mass basis and the most effective of all is promotion focusing on this entire 4Psone can grab the market and reach the desired target audience. But considering BIG 92.7 FM as a service

industry it has an additional P-Physical Evidence to be also looked into. Physical evidence is something

that is tangible in the product which customers can feel, as services provided by the company are

intangible.

Product

Product is a key element in market offering. A product is anything that is offered to satisfy the customers.

Since radio industry is totally a different streamline, its product is nothing but customers itself..Big92.7FM serves their clients, who are actually their customers & the only source of revenue by givingthem the product called listeners. Clients are satisfied when there is maximum number of listeners, so thatthey can hit the audience.Big92.7FM serves two customers CLIENTSLISTENERS To grab maximum number of listeners

big92.7fm try to come up with some innovations and always do things that are very local. They are tryingto augment their product [MUSIC] at every stage.

Product Level

In planning its market offering, the marketers need to think through four levels of the product. Each leveladds more customer value, and the four constitute of a customer value hierarchy. The most fundamentallevel is the core benefit that a customer is really buying. At the second level, the marketers have to turn thecore benefit into a basic product. At the third level, the marketer prepares an expected product, a set ofattributes and conditions buyers normally expect when they purchase this product.At the fourth level, the marketers prepare an augmented product that exceeds customers expectations. To

be successful in market each company tries to serve the best to their customers and not only satisfy thembut also surprise & delight them. Radio channels are no more behind in doing this and impressing theirlisteners and customers.


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BIG92.7 FM tries to sever best through this product level

Via

1) Core Benefit: The core product served by BIGFM isMusicas by other channels.

2) Basic Product: Now the basic product to be served along with music isProper networking & frequency modulations so that core benefit (music) is availableeverywhere and anywhere.

3) Expected Product: Good RJs add flavor to music. So it is expected that theRJs should be good and try to be as friendly as they can be with the listeners. Also the showsare getting popular because of RJs. There should be a play list where both Old and new songsshould be played. There should be news coverage and also updates of current local area

situation.

4) Augmented Product: People are crazy about stars so bigfm making a note of this point came witha very new and unimaginary concept of taking stars at their fans place. This was something reallygreat that your favorite stars land upcoming at your place.


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Pricing

Big92.7fm believes that the best way to hold customers is to constantly figure out how to give themmore forless Since their product is listeners itself, pricing strategies are for all those who advertise on the

channel. Bigfm price its effective 10-second advertising spots atRs.2000,at par with market leaders likeRadio Mirchi, club fm , the rest of the FM channels charge anything between Rs 1,000 and Rs 1,500 for a10-second slot. Big FM gives 45 lakhs weekly listeners as per Radar study. There is an averagelistenership of 45 minutes per day on the station. The rates are so reasonable that advertisers can afford 10or 15 spots a day and run the campaign for 15 days or three weeks at a fraction of the cost that you willincur in print or Television. There are about more than 300 advertisers on Big FM. Today it is fashionableto be on radio. Big FM sells independently and does not offer any print package deal even though they

belong to Ad labs Groupthey are an independent company. There is very little retail advertising onradio. More than half of the revenue comes from retail. But in Mumbai it is only 8%-10%.Currently

bigfm has hiked their prices because they know that BigFM today is one of the best radio channels and

they offer value to the advertisers who spend on their station. While all the other stations offer more slotsand run ads for over 15 minutes, they offer ten minutes per hour on BigFM. There is huge inventory

pressure on them and therefore they had to increase the ad rates. Currently, on an average, there are125 to175 brands advertising on BigFM and are charged Rs.3000-Rs.3500.In most cases, stations offerdiscounts on what is on their rate cards. On an average, across the five stations, the effective ad rate goingfor a ten second spot would be anywhere between Rs 1000 to Rs 2000. Clients buy effective rates andthey buy a combination of spots like prime time, non prime time.


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Research and development:

Research is conducted every week to know exactly what the listeners actually want to lend their ears to.Hence, accordingly, they have implemented the changes in the time slots of the different shows on air. So

when the advertisers want to advertise on radio, bigfm can provide them with more information and helpthem to decide on the time slots and frequency etc.

Place

BigFM is currently running in both

a) Metro politics

b) Non-metro politics

BigFM is spreading across 45cities, 1000towns & 50000villages. It is intensive in Mumbai and selectiveall over the country since it is established in 44cities like Delhi, Chennai, Kolkata, Trivandrum,Bangalore, Chandigarh, and many more. They are operating in non-metro cities also. BigFM findsadvantage of running a radio station in places like Cuttack/Bhubaneswar and Rourkela as these places arevery compact. Due to this compactness, station can reach out to almost anybody and everybody wholives there. No need to put too much of an effort to reach out to the people, they are easily accessibleand can reach out to many districts in and around the city. Bigfm station reaches out to about 20 lakh

people. Since the area is small, it is possible to get celebrities to the studios for special shows, in fact bigfmthe first one in Bhubaneswar to do that. Instead of recoding the programmers with celebrities, they did theshows live, which might not have been possible in a metro city. Another advantage of operating from asmall place is that can organize events easily. Have a show called Radio Orchestra, where people are

performing in front of a small audience. This show is done live from various places in the city. It is easierto organize events in smaller places as compared to a metro city.


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Promotion

Promotion element of market mix plays a vital role. Promotion is used in hopes of influencing the

recipients feelings, beliefs, or behavior through any forms ofcommunication. BigFM uses variouselements for promotion of their services vise versa;a) Advertising

b) Publicity

c) Relations

d) Word of mouth

At the initial stage of its launching bigfm was much into corporate social responsibilities (CSR).The targetaudience at that time was the older audience. But now it has positioned itself and are currently targetingthe youth between age group of 18-30.The promotional strategies are totally changed and keeps varyingas per the current and local requirement. There are lots of innovations and something different isconstantly innovated and worked upon. Various promotional activities are conducted by bigfm, hadcontracted vendors to manufacture one lakh radio sets to be distributed through contests, online

merchandising & on ground activities. These will be single frequency branded radio sets so thatconsumers get to sample the programming of big92.7fm.Tide up with manufacturers for co-brandedradio sets .Big FM has done partnership with 600-700 media & retail outlets(will promote onair)Transportation & college canteens are also potential public to carry out their promotions. With starthas taken social responsibilities & now integrating its recruitment policy within its CSR initiatives. Theyare also planning to induct physically challenged people for copy writing etc so that their physicalincompetence should not be a barrier.

They have tie up with Keralas most festival like Onam, Vishu Christmas etc. On AIR do a lot of

promotional contest topical, local. Olympiad contest and campaigning is the latest.


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Physical-evidence

Something that is tangible is physical evidence. May be infrastructure of the company or other attractivefeatures of the product being sold like package, color, model in case of cell phone etc. But for radio

channels it is their promotional activities that show their 5Ps. Bigfm carries out many on groundactivities in malls, near college campus, etc. RJs go to the malls, interact with local crowd play games andcontest with them pick up people from which they are given chance to go on-air. RJs also go for lunch,dinner & movies with listeners and try to be amongst local crowd, so as to grab maximum listeners


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Positioning & PLC

Positioning:

Normally Bigfm does everything that is local and also daily routine task of providing informationregarding traffic updates especially during some chaos and during festivals. BIGFM positions itself localand undergoes small and local variations .BIGFM is undergoing a repositioning.

PLC (Product Life Cycle):

Today in such a competitive market it is very essential to run with the speed of market growth andexpansion. Radio market is very fast moving and changing every day. The talks are new and gossips arecountless. So considering the PLC in radio channel and its programs would be difficult. PLC of the shows

is very dynamic in nature. It keeps on varying all the time. Infect bigfm always tries to do new and alllocal so the PLC of that new program is short lived and no sooner decline


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Internal and Co-ordinate Marketing

Employee-customer mirror: The way your employees feel is the way your customers will feel. Internalmarketing relates to meeting the needs of employees so that they can meet the needs of their customers.

Staff must work together in a way that is aligned with the firms mission, strategy and goals. "If people arehappy and satisfied, then they would be willing to walk that extra mile to create a great product.Producing a great product would impact the company's performance in a positive manner and lead to agreater employee satisfaction. Employee satisfaction would lead to customer satisfaction which in turntranslates into shareholder's satisfaction. So it's the whole chain and one needs to add value at each stage ofthis chain and having an 'Employee First Organization' culture helps to achieve that."All the radio stationsare feeling the heat of retaining good talent. BIGFM says "The employees of today are not mereemployeesthey are your partners and your associates. So there is a need to inculcate the right set ofvalues and culture in them."So bigfm has adopted a CAFETERIA APPROACH in its remuneration

policy. Cafeteria approach is where you yourself can select the salary into three categories as per your

expectations

CAFETERIA APPROACH:

Like any other sector, radio is also feeling the heat of retaining good talent as employees are constantlypoached by offering higher salaries. To tackle this issue Big92.7 FM has adopted a Cafeteria Approach inits remuneration policy. Here the employees have an optionwithin a frame workto alter the headsunder which they get their salary on a platter. This helps them to pick and choose the kind of salarystructure they want as per their requirements.\The much-hyped marketing efforts need to be

complemented with strong and talented workforce. And thus the role of the HR in the organizationbecame even more proactive than before. The think tank of the human resources at Big 92.7 FM wereof the firm belief that there exists a strong relation between companies who are doing well and companieswhich have good HR practices in place.

CATCHY AWARDS:

The specialty of bigfm is their catchy awards. Catchy stands for spontaneous recognition of someonedoing something positive in terms of great contribution. Employees are being valued for their job


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SURVEY


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I did my survey randomly among government employees, drivers, and college students.

I used quantitative method and for that I took 60 of their opinion for doing the research

1) Do you listen to radio?

Options

Number of

respondents Percentage

YES 50 80%

NO 10 20%

YES

NO


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2) What is your gender?

Gender

Numbers of

Respondents Percentage

MALE 30 60%

FEMALE 20 40%

MALE

FEMALE


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3) What is your age?

AGE Number of respondents Percentage

10 to 20 5 10.00%

20 to 30 15 30

30 to 40 10 20%

40 to 50 5 10.00%

50 to 60 7 14%

Above 60 3 6.00%

10 to 20

20 to 30

30 to 40

40 to 50

50 to 60

Above 60


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4) What is your reason to listen to radio?

Reason Number of respondents Percentage

News 8 16.00%

Entertainment 15 30.00%

Music 15 30.00%

Advertisements 12 24.00%

News

Entertainment

Music

Advertisment


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5) When do you listen to radio?

Preference Number of respondents Percentage

Home 2 4.00%

Travelling 8 16%

Work 32 64%

Anywhere 8 16.00%

Number of respondants

Home

Travelling

Work

Anywhere


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6) Do you listen to the radio while at work: daily on most days occasionally rarely/never

Response

Option

Number of

respondents PercentageDaily 32 64%

On most days 10 20%

Occasionally 5 10%

Rarely/never 3 6%

Daily

On most days

Occasionally

Rarely/never


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7) Which device do you use to listen to radio?

Mobile

MP3 Car stereo

Radio

Response

Options Number of

respondents

Percentage

Mobile 20 40%

Mp3 7 14%

Car stereo 15 30%

Radio 8 16%

Mobile

Mp3

Car sterio

Radio


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8) Which radio channel do u prefer hearing??

Radio Mirchi

Club FM 94.3 BIG FM 92.7

Radio Mango 91.9

Response

Options

Number of

respondents percentage

Mirchi 12 24%Club 15 30%

BIG FM 15 30%

Radio Mango 8 16%

Mirchi

Club

BIG FM

Radio Mango


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9) What is your preferred time to listen 2 radio channels???

Morning

Afternoon Evening

Night

Response

Option

Number of


Morning 16 32%

Afternoon 10 20%

Evening 18 26%Night 6 12%

Morning

Afternon

Evening

Night


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10) Do the advertisements help in awareness about the product?

YES

NO

Response

Option

Number of


YES 35 70%NO 15 30%

YES

NO


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11) Do u prefer listening to RJ talks or Music

RJ Talks

Music

Response

Option

Number of


RJTalks 28 56%

Music 22 44%

RJ Talks

Music


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12) Does listening to radio sometimes act as interpretation to your work?

Yes

NO

Response

Option

Number of


YES 20 40%NO 30 60%

YES

NO


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13) Will u listen to FM radios if they charge you??

YES

NO

Response

Option

Number of


YES 0 0%NO 45 90%

MAY BE 5 10%

YES

NO

MAY BE


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14) Do government advertisem

Documents

Anuraj Prjct Rough Draft