Service Management Case Study.

Presented By : Neha M.

Vaishali N. Reshma D. Rupali H. Deepa S.

Guided By : Prof. B.Sharma Sir.

Service Marketing

Meaning

Introduction• Radio Mirchi is the most popular private FM radio

channel in India with the largest operating network and a presence in 33 cities & 6 Metros.

• The case traces the emergence of Radio Mirchi as a leader in the Indian FM radio industry.

• The case talks about the company's innovative marketing and promotional campaigns. It also describes the Government policies, vis-a-vis FM radio, and their impact on Radio Mirchi and other FM broadcasters.

Background Note

• In October 2001, RM launched radio broadcasting station in Indore.

• Operated by Entertainment Network India Ltd (ENIL).• Promoters: Bennett, Coleman & Co. and Time Infotainment

Media Ltd.• Radio Mirchi is Star SBU of ENIL , started October 2001.

Issues in the case• To understand the marketing strategies adopted by the company in

the FM radio industry.• To understand the market dynamics and unique characteristics of

the Indian FM radio industry.• To explain the impact of government policies on the company.• To analyze the challenges and future prospects of the company.

First wave of FM Privatization• In July 1999, the GOI decided to privatize the FM radio sector in

keeping with Supreme Court directions and commitments laid down in the Ninth Five year plan.

• The GOI offered licenses for a 10-year period, charging a license fee with a 15% annual hike

• In 2000 gov started bidding process for 108 FM radio licenses in 41 cities.

• Radio mirchi bidd on 64 F & won 12 licences.• Radio Mirchi started first from Indore.• Competition for Ads revenue among other FM (Mumbai & Delhi)

II- wave of FM Privatization • The losses, caused by the irrationally high license fees, gradually worsened

the situation and in June 2003, Go 92.5 FM sent a conditional notice to the GoI threatening to close operations if it did not change its policies.

• Radio broadcasters, including Radio Mirchi, started pressurizing the GoI for a policy change and on July 24, 2003, the GoI constituted a committee, Radio Task Force, headed by Dr. Amit Mitra, General Secretary, FICCI to study the FM radio industry and make recommendations for change in the licensing policy.

• In mid-November 2005, Radio Mirchi had announced that it was entering the capital market to raise capital of Rs. 2-3 billion.

Cont..• In February 2006, Radio Mirchi, the most popular private FM

radio channel in India, announced that its license bids for 32 cities, spread across the country, were successful.

• Its highest bid of Rs. 281.6 million was for the city of Bangalore.

• The bidding process, which began in January 2006, was part of the second phase in the Government of India's (GoI) efforts to privatize FM radio.

• Radio Mirchi was already present in seven cities, including key cities such as Mumbai, Delhi, Kolkata, and Chennai.

New Challenges• Advertisements• Display media• Tie up with companies• Feedback from listeners (build consumer involvement)• Sponsored many things.• Launching innovative promotion campaigns.• Made sales team to maintain relation with local advertisers• Price of Ads based on time.• Additional income from SMS

Segmentation • Geo-graphic segmentation:

Radio mirchi do not use this type of segmentation. They do not broadcasts any kind of regional's song.

• Demo graphic segmentation:

Radio mirchi used this type of segmentation. They are having gender base segmentation, age group base, etc.

In the early morning they are targeting to the old persons because they likes bhajans & kirtans . In the early morning they stared this programme at 5 am to 7 am.

Cont..• Behavioural segmentation :

Behavioral segmentation, buyer are divided into groups on the

bases of their knowledge of attitude towards use of response to a

product.

Occasion : In the NAVRATRI they play Ras Garba at sponsored

party.

Benefits : They are playing all type of songs

User’s status: They are providing gift vouchers, gifts couple

tickets, etc. So consumer or the listeners are attract and listen the

radio mirchi.

Targeting• They are using Clustered Preferences. Radio Mirchi targeted to the college

students and teenagers so they are playing hot & new songs.

• They are also targeting the mature person & they like to listen songs.

Radio Mirchi are playing this kind of old songs in the night in the show

PURANI JEANS.

“MIRCHI SUN NE WALE ALWAYS KHUS”

8 P’s OF SERVICE MARKETING1. Product.2. Price.3. Place.4. Promotion.5. People.6. Process.7. Physical Evidence.8. Productivity and Quality.

1. PRODUCT• Din Hua Begin.• Hello Mumbai.• Khubsurat.• Total Filmi.• Bumper to Bumper.• Purani Jeens.• Dr. Love.• Rat Baki.• Countdown.• Mirchi Star of the Week

2.PRICE

STRATEGY FOR CHARGING PRICE• Flexible Price.• Discount Price.• Diversionary Price.• High Price maintenance Price.• Combo Price.

3.PLACE

• Mumbai.• Pune.• Ahmedabad.• Delhi.• Indore.• Kolkata.• Chennai.• Banglore.• Jaipur.• Hyderabad.• Patna.• Jalandhar.

4.PROMOTION

• Advertising.• Sales Promotion.• Public Relation.• Publicity.

5.PEOPLE

• Service Provider.• Customers.• Others

6. PROCESS

• Job Shop Process.• Continue Process. a)Research For Songs. b)Programming Of Songs. c)Mixing. d)Broadcasting.

7.PHYSICAL EVIDENCE.

• Peripheral Evidence.• Essential Evidence.

8. PRODUCTIVITY AND QUALITY.• Mumbai:Radio Mirchi is No. 1 in the city with a market share of 15.7

per cent.• Delhi:Radio Mirchi leads in the city with a market share of 23.9 per

cent.• Kolkata:Radio Mirchi leads in the city with a market share of 20.4

percentage points. • Bengaluru:Radio Mirchi at No. 2 has a market share of 18 per cent,

registering a gain of 0.6 per cent. • Net profit for nine months ended December 31, 2010, grew more

than 1.6 times to 34.2 crore.

Cont..

• Net profit for nine months ended December 31, 2010, grew more than 1.6 times to 34.2 crore.

• High quality live streaming.• Studio, transmission equipment.

Strength

• First mover advantage

• High listenership

• Strong FM background

• Product innovation

• Strong brand equity

Weakness

• Lack of local touch

• More advertisement

• Over repetition of the songs

• No proper research available - research is very important for

any advertising segment. Research is the main base to attract

client and get more revenue. But, in India there is no proper

research is available. Many stations are conducting their own

research which can be biased.

Opportunity

• Wide untraped market

• Increase audience

• More access point to listen

• Tie-ups with BEST or Railway authority for playing the FM in

train and in bus.

• Allowing private FM players to start news and current affairs

programs.

Threats

• Increase competition

• Government policies

• Changes in taste and preference of customer

Conclusion

• Playing contemporary hits songs Radio Mirchi has always been

the no 1 choice of listeners

• As Mirchi has more than 41 million listeners across 32 stations

• Its market share in revenue terms remains in excess of 40% of

the private FM industry. Radio Mirchi is the number 1 radio

brand in the private FM space.

• It won a Plethora of awards. It has been recognition of the

brand popularity and the creative talent behind the brand.

Cont..

• Mirchi was voted the no. 1 media brand, ahead of

iconic brands like the times of India and star plus.

• As per brand reporter October 2009 issue Mirchi was

recognized as one of the game changers of the

decade in the radio industry.

THANK YOU.