Radio Mirchi finale

8/7/2019 Radio Mirchi finale

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adio Mirchi, !ales Mirchi Marke Aditi Bhalodia09BS0000094

IBS

In te rn a l

:G u id e

.

Prof Pan kajM a d h a n i


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Objective of the Project

Understanding the Radio Salesprocedure

Print track

Aircheck


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Importance ofAdvertising

First Time Users of a product

First Time Users of a brand

Regular users of the brand Launch a new brand


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Different Media ofAdvertising

Newspapers

Magazines

Yellow pages

Television

Direct Mail

OOH

Telemarketing

Radio


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Radio Industry

1935 Radio broadcast begins with AIR.

1977 First FM service in Madras.

1993 AIR sells time slots for private FM

radio broadcasting in five cities. 1999 Privatization of FM - Phase I

Policy.

2001 Licenses given to private radiobroadcasters.

2005 Announcement of Phase II Policyof privatization of FM.


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Key Players inAhmedabad

Radio Mirchi

My FM

Radio City Red FM

Radio One


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Radio Mirchi

33 stations

Including metros

Target: Family audience


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Strategy Factors such as lifestyle, attitudes, occasions

rather than demographic information alone.

Radio satisfy different needs of the people suchas

entertainment( which is the most important

one), Bollywood Gossips,

Recipe of different types of food,

Child care tips, relationship problems,

career guidance, Beauty Secrets, etc.

Secure exclusive FM broadcasting rights of themusic of leading films for up to two weeks afterthe initial release of the music.

It has been able to customize its content to 17


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Environnemental Analysis

I. EXTERNAL ENVIRONMENT PEST AnalysisPolitical

To enter in the industry, high one time entry

fee has to be given There is no FDI allowed in this sector

Up to 15 % annual hike In licensee fee

Only 10 year of license is valid.

Economic

RJs mainly attracted by package that hasbeen offered to them by competitors.


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PEST analysis (cont.)

Social

Showing responsibility towards various NGO

Help in June 2005 Mumbai flood.Technical

Before 2000, there were only two musicstations, but after that radio industry came upwith private Channels with different

frequencies. Today we have 10 musicstations.

Internet radio is introduced.

Modern equipment and highly technicaltransmitters are used

Visually appealing materials are also associated


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Competitive Analysis

Higher monetary incentives for theemployees

Other media of advertising

Radio One, Red FM

My FM

Hindi and English Music

Operating at a much lower cost


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SWOT Analysis

Strengths Superior quality music and benefits to theircustomers.

Delivers the best combination of innovativecontent and interesting initiatives.

Wide Target Audience MRB in car- listenership 50 per cent on an

average since launch. Enjoys the highest "loyalty" among its listeners.

Many college cultural and tech fest, increasing itsvisibility within the youth.

Their wide and national footprint enables ouradvertisers to reach the largest number oflisteners among private operators in highincome cities and adjoining areas.

Also won awards for its successful brand building.


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Weakness

Listeners faces major distraction from advertisements aired

in between the show.

Long waiting queues to connect with them by calling.

Radio jockeys had no long lasting career.

The license fees have to be paid upfront for operating FM

radio stations. Thus ENIL needs a lot of capital to fund its

growth plans.

ENIL has to pay a high amount of royalty to the music

companies for the music content procured from them.

This increases the operating expenses of its radio

business, hurting its bottomline.


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Opportunity

Future plans include exploring opportunities to

become FM radio broadcasters or content

providers in international markets at an

appropriate time, either directly or through

strategic partnerships or inorganic initiatives.

Great opportunity in the field of generating their

own news show on air.

Field of internet radio


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Threats

High threat from all private music station, specifically

from My FM, Radio City, Radio One, etc.

Per second rates of Radio Mirchi is much higher than

the other Radio Channels, because of which radioMirchi is missing out on large revenue shares by real

estate and SME sectors.

ENIL derives high advertisement revenues in its radiobusiness due to the high listenership ratings of its

radio stations. Any drop in these ratings would

adversely affect its revenues


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Competitive Strengths

Largest operating network and reach among

listeners

Track record of developing innovative andcreative content

Proven ability to successfully operate in diverse

markets

Radio Mirchi brand is widely recognized

Strong advertisement sales capabilities


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Marketing Mix

Promotion

Cross media marketing

Online promotion

Mumbai marathon

90 not out , Purani Jeans

Mirchi kaan awards

Mirchi Music awards


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MM(cont.)

Product High quality studio and transmission

equipment

Mass audience

Multilinguistic programs

Customization

Emphasis on culture


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MM (cont.)Place and Time

Broadcasting (Ahmedabad, Mumbai, Banglore,Chennai, Indore, Kolkata, Lucknow etc.)

Various programs at various time Family (7:00-11:00 am)

Housewife(11:00-2:00 pm)

Youth(2:00-5:00 pm) Evening Drive(5:00-9:00 pm)

Late evening(9:00-11:00 pm)

Night(11:00-1:00 am)

Late night(1:00-7:00 am)

Physical Environment

High quality studio and transmission equipment

DTH Radio involved radio broadcast from radio station

via satellites Good radio frequencies


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MM(cont.)

Process Direct attachment with audience

Talented RJs

Direct to home radio

Visual radio

Internet radio Digital audio broadcasting

Satellite radio

separate sales team of 130 employees in 8 cities

People Hired skilled RJs, account managers, copywriters and

Managers.

Emphasized on audience choice

Level of customer involvements


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Why is Radio Effective?


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Print Track

Why track the print?


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Format of Print Track

Date

Client

Category

Media

Page

Ad Size(in CC)

Rate


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Categories

Automobiles Banks and Financial Institutions

Education

Garments

Healthcare

Hospitality

Jewellery

National corporations


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Importance of print Track The budget that any client is willing to spend on the print ad.

The message and communication that the clients are willing to

give out to the costumers

Contact details

Schemes and features of the service/product that the client

wants to promote.

New clients which enter the market.

Previous clients which have change or maintained the marketing

strategies.

The categories that is prominent in a particular month or a band


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Newspapers analyzed

Ahmedabad Mirror

Gujarat Samachar

Sandesh

Divya Bhaskar


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Methodology

Secondary data

Newspapers

Historical data from the previousaccount managers


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Education Sector


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Total Ad spent onEducation


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Segmentation of AdSpend


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Observations

Print advertising increased by 3% during 2009 compared to 2008.

Education topped the list of top 10 sectors advertised in Print

during 2009.

Educational Institutions category has the highest share of Print

ad volumes during 2009.

There is an increase in the ad spend of education in the months of

June-July.

The main client that can be pointed out are MBA couching

institute, B-schools, immigration agency.

The months of July to August are the peak time for b-schools and

MBA coaching institutes to make themselves visible in the


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Real Estate


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Total Ad spent on RealEstate


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Observation Economic slump of 08-09 effected the real estate sector the most.

Due to the slump, the constructions owners stopped or slowed down

the ongoing projects

Compared to Jan-Aug 08, Print ad volumes of Properties/Real Estate

category has decreased by 23% during Jan-Aug 09.

The market started showing steady signs of recovery around late

August. Realtors found the need to find more visibility in the

advertisement sector to get in touch with their potential customers.

Again, the festivals such as Dushera, Diwali are considered to be

auspicious for buying of land and houses. Therefore a sudden rise

in the advertising spend is seen in the month of September.


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Suggestions A software/excel sheet can be developed that can simplify the process

of entering the print track details.

The account manager would only have to enter

Client

Category

Ad measurement

Newspaper

Color or black & white

Software for Print Track


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Aircheck

Programming Section

Sales


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Aircheck AirCheck monitors 24 hours a day and delivers almost

real time radio airplay data from the 88 most important

radio stations in India.

The Aircheck India National Network delivers

advertising agencies, radio stations and record

companies an instant online local and national

perspective of their clients' airplay.

Aircheck India produces independent verification of

airplay and provides market

Live Reports

Market Share

Brand and Category Analysis


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Programming section

This section deals with the songs and the

playlist that are played on the channel.

Includes: Datewise Playlist:

List of Current songs and Repetition

Top songs.


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Sales Section

Commercial/spots

Market share of each stations

Brand Analysis

Top Advertisers Top Brands

New Clients


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Brand Analysis

Station Brands MY FM 580

RADIO CITY 514

RADIO MIRCHI886 RADIO ONE 331

RED FM 301


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Education Industry


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Observations

Radio Ads appear before Print Ads for

Education

Print and Radio work hand-in-hand.

The clients are will to spend on the radio

ads around April, before Print Ads.

But the industry seem to put in around 30%

of their ad budget in Radio Michi where as

around 70% is going to the other channels


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Real Estate


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Market Share


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Observations MY Fm is the closest competitor of Radio Mirchi in

Ahmedabad both the stations are in the range of 25 to

35 % of the total market share.

However, the per second ad rate is 4 to 5 Rs and that of

radio Mirchi is close to 40 Rs per second.

Radio Mirchi can afford to price the ads to such high rates

as they are the brand supreme in Ahmedabad with

better shows, contests, RJs etc, they lead the market .

Radio Mirchi ends up earning the same revenue at 1/10 th

the time devoted on air. in addition Radio Mirchi also

have the 9/10th of the time left, which it can sell out to


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Learning

Radio Sales Process

Scripting

Marketing Events

Recording

Long term well maintainedRelationships go a long way!


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Listener-ship habits

Questionnaire

Distributed in varied sectors ofsociety


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Where to listen?


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Why Switch?


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Observations

52%-weekdays, 17% -Saturdays, 31%-Sundays.

The kind of Music that was played on radio hailed themaximum importance as for as the factors affectingthe listening of a particular radio station isconcerned.

Dedicated listeners hail RJs as an important factor tochoose a channel and RJ Dhawnit from Radio Mirchiemerged as the favorite with almost of all radioMirchis listeners.

Though a lot of the listeners found it hard to recollectthe names of the shows that they like to listen too.

Housewives hail contest and news as important factorfor choosing a channel, while professionals prefergood music.

A few colleges students who were administered thesurvey showed their high preference of the late

night classic English songs played on My FM aso osed to the other channels.


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Sources

Product sales manual, Radio Mirchi

http://www.exchange4media.com

http://advertising.indiabizclub.com

http://www.televisionpoint.com

Source: www.indiantelevision.com

ENIL annual report.

Secondary data collected for Radio Mirchi.

www.aircheckindia.com


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Thank you!

Mirchi sunnewale, always khush!

Documents

Radio Mirchi finale