Sm Radio Mirchi

8/11/2019 Sm Radio Mirchi

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CHAPTER 1- INTRODUCTION TO RADIO INDUSTRY

1.1 INTRODUCTION TO MEDIA

NEWSPAPER:

The emergence of the new media branch in the 17th century has to be seen in close connection

with the spread of the printing press from which the publishing press derives it name. A

newspaper is a regularly scheduled publication containing news, information, and advertising.

By 2007 there were 6580 daily newspapers in the world selling 395 million copies a day. The

worldwide recession of 2008, combined with the rapid growth of web-based alternatives, caused

a serious decline in advertising and circulation, as many papers closed or sharply retrenched

operations. A wide variety of material has been published in newspapers, including editorial

opinions, criticism, persuasion and op-eds; entertainment features such as crosswords, sudoku

and horoscopes; weather news and forecasts; advice, reviews of movies, classified ads; display

ads, editorial cartoons and comic strips.

TELEVISION:

Television (TV) is a widely used telecommunication medium for transmitting and receiving

moving images, either monochromatic ("black and white") or color, usually accompanied by

sound. "Television" may also refer specifically to a television set, television programming or

television transmission. The word is derived from mixed Latin and Greek roots, meaning "far

sight": Greek tele , far, and Latin visio, sight (from video, vis to see, or to view in the first

person).


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Commercially available since the late 1930s, the television set has become common in homes,

businesses and institutions, particularly as a source of entertainment and news. Since the 1970s

the availability of video cassettes, laserdiscs, dvds and now Blu-ray Discs, have resulted in the

television set frequently being used for viewing recorded as well as broadcast material.

RADIO:

Radio is the transmission of signals by modulation of electromagnetic waves with frequencies

below those of visible light. Electromagnetic radiation travels by means of oscillating

electromagnetic fields that pass through the air and the vacuum of space. Information is carried

by systematically changing (modulating) some property of the radiated waves, such as

amplitude, frequency, phase, or pulse width. When radio waves pass an electrical conductor, the

oscillating fields induce an alternating current in the conductor. This can be detected and

transformed into sound or other signals that carry information.

Radio systems used for communications will have the following elements. With more than 100

years of development, each process is implemented by a wide range of methods, specialized for

different communications purposes.


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1.2 RADIO INDUSTRY

India has been among the fastest growing economies in the world, with a nominal GDP CAGR

of 9.94% over the last 10 years (1995-2005). The nominal GDP for fiscal 2005 was Rs. 30,636

billion. According to CSO estimates, nominal GDP growth for fiscal 2006 is estimated at 10.9%.

There is a correlation between the economic growth rates of a country i.e. The nominal GDP

growth rate, and growth rates of the advertising industry.

The key factors which have contributed to growth of the Indian advertising industry

include:

Rapid economic growth of the country on the back of economic liberalization and

deregulation

Increase in consumer prosperity

Entry of global consumer companies with large advertising budgets

Higher degree of competitive intensity among consumer companies

Growth in media vehicles leading to increase in media penetration.


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1.3 HISTORY OF RADIO BROADCASTING IN INDIA

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 radio broadcasters.

2005 Announcement of Phase II Policy of Privatization of FM.

1.4 PRIVATIZATION OF FM RADIO IN INDIA

Internationally, FM radio broadcasting is the preferred mode of radio transmission due to its high

quality stereophonic sound.

In March 2000, the Government invited private sector into FM radio broadcasting by opening up

the frequencies in the FM band (87.5-108 mhz). In this Phase I Policy of FM radio privatization,

private operators were invited to bid for a 10-year license to set-up and operate FM radio

stations. The original plan was to set-up 108 FM radio frequencies across 40 cities. 101 bids

were received, aggregating to a license fee of approximately Rs.4.25 billion. [Source: FICCI

Ernst & Young Report, 2004]. The unusually high license fee structure and year-on-year annual

escalations of 15% hampered the FM radio growth.

The Government's Tenth Plan stipulates that private operations are to be encouraged to provide

FM radio services in metros and small cities. They recently announced Phase II of the


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privatization of FM radio, which is an initiative in line with the roadmap laid out in the Tenth

Plan. A total of 338 channels in 91 cities across the country would be made available for bidding

by Indian private companies.

1.5 KEY PLAYERS OF RADIO STATIONS

Player (Brand

Name)

No. Of

Stations

Cities of operations

Radio Mirchi 7 Delhi. Mumbai, Chennai, Kolkata, Indore,

Ahmedabad, Pune

Radio City 4 Mumbai, Delhi, Bangalore, Lucknow

Suryan FM 3 Chennai, Coimbatore, Tirunelvelli

Red FM 3 Mumbai, Delhi, Kolkata

Go FM 1 Mumbai

Visakha 1 Visakhapatnam

Aamar FM 1 Kolkata

Power FM 1 Kolkata

Source: TRAI data


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CHAPTER 2- INTRODUCTION TO RADIO MIRCHI RADIO MIRCHI

2.1 INTRODUCTION

Radio Mirchi is a nationwide network of private FM radio stations in India.It is owned by the

Entertainment Network India Ltd (ENIL), which is one of the subsidiaries ofThe Times Group.

"Mirchi" isHindi forchili.The tagline of Radio Mirchi is "It's hot!".

The original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in

Indore. Until 1993, All India Radio or AIR, a government undertaking, was the only radio

broadcaster in India. The government then took the initiative to privatize the radio broadcasting

sector. It sold airtime blocks on its FM channels inIndore,Hyderabad,Mumbai,Delhi,Kolkata,

Vizag and Goa to private operators, who developed their own program content. The Times

Group operated its brand, Times FM, till June 1998. After that, the government decided not to

renew contracts given to private operators.

First round of licenses

In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won

the largest number of frequencies, and thus started its operations under the brand name Radio

Mirchi.

Second round of licenses

In January 2006, Radio Mirchi bagged 25 frequencies in the second wave of licences that were

issued by the Government of India. This pushes the Radio Mirchi presence in 32 centers. In the
http://en.wikipedia.org/wiki/FM_radiohttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/ENILhttp://en.wikipedia.org/wiki/The_Times_Grouphttp://en.wikipedia.org/wiki/Mirchihttp://en.wikipedia.org/wiki/Hindihttp://en.wikipedia.org/wiki/Chili_pepperhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/All_India_Radiohttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Hyderabad_%28India%29http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Frequencieshttp://en.wikipedia.org/wiki/Frequencieshttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Hyderabad_%28India%29http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/All_India_Radiohttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Chili_pepperhttp://en.wikipedia.org/wiki/Hindihttp://en.wikipedia.org/wiki/Mirchihttp://en.wikipedia.org/wiki/The_Times_Grouphttp://en.wikipedia.org/wiki/ENILhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/FM_radio


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first wave of launches, Indore was the first city in India having grade of first private radio

channel.Times decided to start radio channel to address the mass audience as advertisers can be

attracted by showing a low cost per thousand.

2.2 AREAS OF OPERATION

Currently, Radio Mirchi has a presence in more than 33 cities, including the 6 metros of India

and Radio Mirchi is the costliest station in India as they charge more than double of the

competition.Radio Mirchi believes premiumness can be achieved by charging more from the

clients. :

98.3 FM -Ahmedabad Tagline "Radio Mirchi - It's hot"..

98.3 FM - Aurangabad, Maharashtra Tagline "Mirchi Sunne Wale Always Khush"

Started On 23 July 2007.

98.3 FM -Bangalore It uses the tagline "Sakkath hot maga!" in Bangalore.

98.3 FM -Bhopal Tagline "Radio Mirchi - It's Hot"

98.3 FM -Chennai It uses the tagline "Idhu semmma hot machchi!" in Chennai.

98.3 FM -Coimbatore Service started on November 2007 "Idhu semmma hot machchi!"

98.3 FM -Delhi "Its Hot"

98.3 FM -Jaipur "Its Hot"

98.3 FM -Mumbai "Its Hot"

98.3 FM -Gwalior It user the tagline "Gwalior Jhoome"

98.3 FM -Hyderabad It uses the tagline "Idi chaala hot guru!" in Hyderabad.

98.3 FM -Indore,Tagline "Radio Mirchi - It's hot..".

98.3 FM -Jabalpur,It uses the tagline "Radio Mirchi - It's Hot"
http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bhopalhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Gwaliorhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Jabalpurhttp://en.wikipedia.org/wiki/Jabalpurhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Gwaliorhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Bhopalhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Indore


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98.3 FM -Kanpur - Tagline - "Mirchis sunnewale always khush" and "Radio Mirchi,it's

hot"

98.3 FM -Kolhapur Tagline -" Radio Mirchi - It's Hot "

98.3 FM -Kolkata It uses the tagline "Michi shone j always khushi thake se."

98.3 FM - Nasik - It uses the tagline "Mirchi Sunne wale Always Khush" &"Garam

Ahe!" On AIR since 6 July 2007

98.3 FM -Pune Tagline - "Radio Mirchi - It's Hot" / Radio Mirchi - Tikhat Aahe!

98.3 FM -Patna Tagline - "Radio Mirchi - It's Hot" /It is first station of second phase.

98.3 FM -Jalandhar Tagline - "Mirchi Sunne Wale Always Khush" & "It's Hot".

98.3 FM -Goa Tagline - "Radio Mirchi - It's Hot"

98.3 FM -Ujjain Tagline "Its Hot"

98.3 FM -Vadodara Tagline - "Mirchi Sunne Wale Always Khush" & "It's Hot".

98.3 FM -Rajkot Tagline "Radio Mirchi - It's Hot"

98.3 FM -Raipur

98.3 FM -Varanasi - Services Started on 14 July 2007

98.3 FM -Lucknow - Services started on 14 August 2007

98.3 FM -Surat - Service started on 20 August 2007

98.3 FM -Nagpur - Service started on 18 October 2007. Tagline- same as above

98.3 FM -Madurai - Service started on September 2007.It's tagline is "Idhu semmma hot

machchi !" (meaning 'It's too hot'

98.3 FM -Mangalore - Service started on November 2007

98.3 FM -Vijayawada - Service started on December 2007 Tagline "idi chaala hot guru!"

98.3 FM -Vizag - Service started on October 2007 Tagline "idi chaala hot guru!"
http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kolhapurhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Patnahttp://en.wikipedia.org/wiki/Jalandharhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Ujjainhttp://en.wikipedia.org/wiki/Vadodarahttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Raipurhttp://en.wikipedia.org/wiki/Varanasihttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Maduraihttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Vijayawadahttp://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/wiki/Vijayawadahttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Maduraihttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Varanasihttp://en.wikipedia.org/wiki/Raipurhttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Vadodarahttp://en.wikipedia.org/wiki/Ujjainhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Jalandharhttp://en.wikipedia.org/wiki/Patnahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolhapurhttp://en.wikipedia.org/wiki/Kanpur


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98.3 FM - Thiruvananthapuram- Service started on 28 January 2008[1]

Tagline:

"Sangathi HOT aanu!"

It reaches out to almost 52% of FM radio listeners in Delhi 44% in Mumbai,40% in Indore,35%

in Jaipur,30% in Bhopal, 20% Chennai, 17% in Kolkata, 15% in Nagpur,10% in Bangalore and

02% in Raipur. Radio Mirchi has started providingVisual Radio to its subscribers in Delhi from

25 July, 2006 onwards and in Mumbai from September 2006. It also has started its Visual Radio

service from Kolkata recently.

2.3 COMPETITIVE STRENGTH OF RADIO MIRCHI

LARGEST OPERATING NETWORK AND REACH AMONG LISTENERS

They have the largest operating network among private FM radio broadcasters based on our

operational stations in the four metropolitan cities and six other cities. We also have the highest

listnership among private FM radio broadcasters in India. We believe that our industry-leading

operating network and listener reach enable us to offer an attractive advertising platform to our

advertisers.

TRACK RECORD OF DEVELOPING INNOVATIVE AND CREATIVE CONTENT

They have a track record of developing creative and innovative content and programming

formats, which has helped us expand our base of listeners and advertisers. We believe that we

have developed good relationships with the film industry in India, including the Hindi, Bengali

and Tamil film industries, and have successfully developed unique programmes and shows with

the participation of film industry artists. Further, in the recent past,Radio Mirchihas been among
http://en.wikipedia.org/wiki/Thiruvananthapuramhttp://en.wikipedia.org/wiki/Radio_Mirchi#cite_note-0http://en.wikipedia.org/wiki/Radio_Mirchi#cite_note-0http://en.wikipedia.org/wiki/Visual_Radiohttp://en.wikipedia.org/wiki/Visual_Radiohttp://en.wikipedia.org/wiki/Radio_Mirchi#cite_note-0http://en.wikipedia.org/wiki/Thiruvananthapuram


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the first private FM radio networks in India to release the sound recordings for popular Hindi

films. We also secured exclusive FM broadcasting rights of the music of these films for up to

two weeks after the initial release of the music. We have also developed various on-air fictional

'characters' such asProfessor Kawasand Go Go Gangulithat have become popular with certain

sections of our listeners and has helped in attracting and retaining listeners.

PROVEN ABILITY TO SUCCESSFULLY OPERATE IN DIVERSE MARKETS

Our FM radio stations are located in diverse regions in India and we have been successful in

attracting local listeners in each of these markets. Our superior understanding of audience

preferences enables us to provide content that is customized to the taste, language and culture of

the local audience. We intend to leverage this expertise to attract new listeners as we expand our

footprint to more cities and towns in India.

RADIO MIRCHIBRAND IS WIDELY RECOGNIZED

We have focused on investing in and developing theRadio Mirchibrand, which is widely

recognized in its markets. As per ILT Wave 5,Radio Mirchibrand had awareness of 95% in

Mumbai and 100% in Delhi. We advertise and promote the brand through various media

platforms including print, television, cinema and out-of-home media. Our on-ground events and

on-air promotions have also helped enhance the recognition ofRadio Mirchibrand. For example,

our on-air promotion '983 - Kismat Khol De'in Delhi won the gold medal for "Best Activity

Generating Brand Loyalty" at the 2004 Promotion Marketing Awards of Asia. We also organize

annual events such as theMirchi Kaanawards, where the jury includes pre-eminent advertising

agency professionals, and a workshop series called radioworks, where we invite noted

international speakers. These events help in building the FM radio industry as well as promoting

theRadio Mirchibrand.


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STRONG ADVERTISEMENT SALES CAPABILITIES

Based on Aircheck data we have attracted 773 advertisers in the four metropolitan cities during

the period from October 1, 2004 to September 30, 2005 which is the highest amongst all private

FM radio broadcasters. Our sales team has established strong relationships with advertisers and

advertising agencies. We focus on understanding the needs of our advertisers and advertising

agencies to offer customized advertising packages and marketing opportunities. Our sales team

works independently of the advertising sales efforts of other entities in the Times Group. We

follow several innovative advertising sales practices such as per-second billing, providing

services for production of advertisements at nominal cost and offering our studio space for pre-

production work, which have helped strengthen our relationships with advertisers and advertising

agencies.

HIGH QUALITY STUDIO AND TRANSMISSION EQUIPMENT

For our studio and transmission facilities, we have invested in high quality equipment. Most of

our key equipment, such as transmitters, mixers and codecs, has been sourced from suppliers

based in United States and Canada. We believe that our investment in technology helps increase

the quality of broadcast and coverage in each of our local markets.


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CHAPTER 3- ENVIRONMENTAL ANALYSIS OF RADIO MIRCHI

I. EXTERNAL ENVIRONMENT

PEST ANALYSIS

POLITICAL

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 has been offered to them by competitors.

SOCIAL

Showing responsibility towards various NGO

Help in June 2005 Mumbai flood.

TECHNOLOGICAL

Before 2000, there were only two music stations, but after that radio industry came up

with private Channels with different frequencies. Today we have 10 music stations.

Internet radio is introduced.

Modern equipment and highly technical transmitters are used

Visually appealing materials are also associated


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II. COMPETITIVE ENVIRONMENT

Radio Mirchis high end competitor FEVER 104 FM- was evaluated on several key factors,

such as type of music they both play, promotional activities, product offering and overall

presence in the competitive arena.

Radio Mirchi is facing a high competition from FEVER 104FM. Fever 104 is just 2yr Old and it

is already creating greater threat for other music stations including Radio Mirchi.

Fever 104 is a brand owned by Hindustan Times Group. Basically it is handled by HT Music and

Virgin Radio. The main advantage of FEVER is that, apart from Hindi music, they also play

Pure English music, which is automatically becomes threat to Radio Mirchi.

But the competition from other music stations is quite low. Secondly, the advertisers and other

brands that associated with Radio Mirchi are loyal to them. Plus, Almost 53 per cent of daily

listeners of Radio Mirchi choose not to tune in to any other radio station. That makes the market

environment attractive for Radio Mirchi.

III. INTERNAL ENVIRONMENT

SWOT ANALYSIS

STRENGTHS

Radio Mirchi known for giving superior quality music and benefits to their customers.

It delivers the best combination of innovative content and interesting initiatives.

Serve each and every section of public starting from the children to 70+ aged.


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According to the latest listenership figures released by IMRB International's Media &

Panel Unit, confirms Radio Mirchi as the leading FM Radio station ahead of Red FM and

Radio City. With 12.1 laky daily listeners, Radio Mirchi leads with a 72 per cent share of

the market.

MRB conducts the in-car listening research every fortnight in Delhi, and findings indicate

that Radio Mirchi is the favored station on the roads with a share over 50 per cent on an

average since launch.

The research reveals that Radio Mirchi enjoys the highest "loyalty" among its listeners.

Radio Mirchi has partnered with VIBGYOR 2008 (college fest of International School of

Business and Media).

Also with BLITZKRIEG 2008 (ICFAI Business School), COBWEB 2008 (college fest of

LHMC) and SPANDAN 2008 (college fest of Vivekananda College).

Their wide and national footprint enables our advertisers to reach the largest number of

listeners among private operators in high income cities and adjoining areas.

Also won awards for its successful brand building.

The '983 - Kismat Khol De' Contest won the Gold medal for Best Activity generating

Brand Loyalty at the Promotion Marketing Awards of Asia2004.

Bronze medal for Best Activity generating Brand Awareness and Trial recruitment at the

Promotion Marketing Awards of Asia2004.

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.


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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

THREATS

Still facing threat from AIR FM and FM Gold. Both are take care by government bodies.

High threat from all private music station, specifically from Fever 104FM, 93.5Red FM,

91.1 Radio city.

Recent threat is Meow 104.8FM, which is completely women oriented music station.


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CHAPTER 4- MARKETING STRATEGY ADOPTED BY RADIO MIRCHI

4.1 MARKETING MIX OF RADIO MIRCHI

The punch line of Radio Mirchi (Mirchi sunnewale always khush) focuses on its customer and

the quality of music provided by them. They try to come up with new innovative ideas thereby

making their radio the most preferred station with largest listenership. There latest innovation is

in the style of radio jockeys. Generally, radio jockeys speak non-stop quite fast entertaining the

masses. But there is new RJ named Sudh who talks at a slower pace but in a weird tone. His way

of telling jokes attracts people to him.

PRICE & PLACE are the two factors which has no impact on the customers( .i.e. Radio

listeners) of Radio Mirchi since they dont pay for listening radio and it is available

everywhere(rather in pockets of every person in the form of mobile)

PROMOTION

Cross media marketing

Bite a mirchi a get a pepsi free

Mirchi packets

Online promotion (983 kismat khol de)

Dabbawallas

Mumbai marathon

Mirchi khoobsurat

9 baj gaye kya

Mirchi kaan awards

Innovative programs (pappi da, go go ganguli,Mr. Hot crack pot,Ding-Dong)


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Jingles and promos

Sponsored events in schools and colleges

Mirchi job fest

Mirchi activation team

Radio workz

PRODUCT

High quality studio and transmission equipment

Mass audience

Multilinguistic programs

Customization

Emphasis on culture

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)


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

PHYSICAL ENVIORNMENT

High quality studio and transmission equipment

DTH Radio involved radio broadcast from radio station via satellites

Good radio frequencies

PROCESS

Direct attachment with audience

Talented RJs

Direct to home radio

Visual radio

Internet radio

Digital audio broadcasting

Satellite radio

Seprate sales team of 130 employees in 8 cities

PEOPLE

Hired skilled RJs

Emphasised on audience choice

Level of customer involvements


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4.2 MARKETING PLANS OF RADIO MIRCHI

This Marketing Plan is developed for the brand RADIO MIRCHI 98.3FM. It is Owned by the

company ENTERTAINMENT NETWORK INDIA LTD.(ENIL) ENIL is promoted by Bennett,

Coleman & Co. Limited (BCCL) which is one of The largest media and entertainment

companies in India, operating in various media Segments such as print media and television

broadcasting. Before we begin, lets know a little about Radio Mirchi. The original avatar of

Radio Mirchi was Times FM, which is probably the most famous radio in India Which began its

operation in 1993. Until 1993, AIR, a government undertaking, Was the only radio broadcaster

in India. The government then took the initiative to Privatize the radio broadcasting sector. It

sold airtime blocks on its FM channels to Private operators, who developed their own program

content. The Times Group Operated its brand, Times FM, till June 1998. After that, the

government decided Not to renew contracts given to private operators.

In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won

the largest number of frequencies, thereby acquiring a national Footprint, and becoming the only

commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities.

Earlier available in the seven cities Of Mumbai, Delhi, Kolkata, Chennai, Pune, Indore

andAhmedabad, now it is also Available in key markets of Bangalore, Hyderabad, Jaipur, Patna

& Jalandhar Thereby taking the tally to 12 stations across India. It's the largest private FM Radio

Operator in the country in terms of number of operational stations and revenue.


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Though Radio Mirchi FM radio stations are located in diverse regions in India It's been

successful in attracting local audiences in each of these markets. This is Largely due to a superior

understanding of audience preferences, which enables it to Provide content customized to the

taste, language and culture of the local audience.


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4.3 MARKETING STRATEGY BY RADIO MIRCHI

1) COMPETITVE STRATEGY

On the basis of GE Matrix, Radio Mirchi proved to be a leader in Radio industry.

Many research also shows that it is a confirm leader, latest by 05th January 2009.

In this scenario Radio Mirchi must sustain its position and need to apply some special strategies.

We suggest Radio Mirchi..

increases which would later attract clients again.

power.

yet not being touch by any private channel.

This helps Radio Mirchi to secure exclusive FM broadcasting rights of the music of leading films

for up to two weeks after the initial release of the music. In spite of being present in diverse

regions of India, ENIL has been able to attract listeners everywhere and be the market leader as it

has been able to customize its content to 17 local tastes. Radio Mirchi takes care of all these

needs in the best way by broadcasting shows keeping in mind the customer needs and their free

time(so that they can listen their favorite shows at free time). On this basis, Radio Mirchi

segmented their customer (time slots they get free) and targeted them in such a way that no other

FM Station could change the bit of positioning done by it.


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2) TARGET CUSTOMER PROFILE

The Radio Mirchi target market was defined using interesting factors such as lifestyle, attitudes,

occasions rather than demographic information alone. Although the customer description

generally fall within the demographic that have been identified, this approach will provide an

increased understanding of what motivates the listener and can be used to focus target marketing

and positioning efforts more precisely.

Radio is the source of entertainment for every individual of any age group whether it is children,

youngsters, housewives or aged people. Radio satisfy different needs of the people such as

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. ENIL has

developed good relationships with the film industry in India helping it to have innovative and

creative content.


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4.4 STRATEGIES ADOPTED BY RADIO MIRCHI

EXPAND OUR FOOTPRINT

Under the Phase II Policy, We are successful in winning 25 of the radio channels that we bid for,

we will expand our footprint and cover additional markets and regions in India. We also intend

to explore opportunities to become FM radio broadcasters or content providers in international

markets, either directly or through strategic partnerships, arrangements, joint ventures or

acquisitions.

LEVERAGE OUR FOOTPRINT TO CAPTURE ADDITIONAL INCOME

We intend to leverage our footprint of seven operational stations and any other station that we

acquire in future to enhance our audience base and income. Any expansion of our footprint

would allow us to target a greater number of potential advertisers in new markets. Further, any

increase in our listenership reach would allow advertisers to address a larger audience.

CONTINUOUSLY INVEST IN BRAND BUILDING AND PROGRAMMING

INNOVATION

We intend to maintain and enhance the leadership position of our radio stations through

continuous innovation, focused marketing, intensive brand building and exploiting the interactive

nature of FM radio. We plan to engage current and potential listeners through on-air as well as

off-air activities. We intend to increase our use of research generated internally as well as

provided by external agencies to continuously monitor the evolving needs of our audience and

advertisers.

EXPLOIT ADDITIONAL REVENUE STREAMS

In addition to our income from airtime sales on our FM radio channels, we intend to focus on


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creating or expanding additional revenue streams. We have already launched Mirchi Activation

events which are promoted through our radio channels and enable us to enhance our revenue

from airtime sales as well as attract new advertisers. Additional income streams may also include

revenue from smss or calls received from our listeners, or from the sale or licensing of content to

third parties, whether in India or in international markets. We have also recently provided

consultancy services to an industrial group in Bangladesh for setting up radio stations. We have

also entered into an agreement with Hewlett-Packard India Sales Private Limited ("HP") to

launch visual radio services for the first time in India. With visual radio, images and texts are

synchronized with the radio broadcast to bring information and interactivity directly to a mobile

phone. As part of this agreement we have an exclusivity period which will give us the first mover

advantage. Visual radio services also provide an additional advertising opportunity to our clients.

These services also provide us with additional advertising revenues from our clients as well as

digital service revenues from the telecommunications sector that HP shares with us.

NETWORK EXPANSION

After implementation of Phase II Policy of FM radio privatization, private sector FM radio is

likely to be available in many more cities and will enable advertisers to reach out to a larger

consumer base, using radio as a medium. This could result in radio getting a larger share of the

advertising spends.

AVAILABILITY OF LISTENERSHIP DATA

As radio expands, the availability of organized research providing segmented data on audience

listenership is likely to increase advertisers' comfort with the medium.


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RATIONALIZATION OF LICENSE FEES

The shift from a fixed license fee to the revenue share model in Phase II Policy of private FM

broadcasting is expected to result in more viable radio business models and thus drive growth for

the FM radio broadcasting industry.

LOCAL ADVERTISING

Globally, the local retail segment constitutes a large part of radio's advertising income. As per

the CII-KPMG report, while local advertising contributes 70% of radio revenues in the United

States of America, in India, the share of local advertising is only about 8% of radio revenues.

Ideally, a localized medium like radio can be effectively used for local-level promotions and

region-specific advertising campaigns, apart from being bundled as part of cross-media

promotion strategies. This would make the medium more attractive for a large number of local

advertisers, rather than being dependent on a concentrated set of national advertisers.


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CHAPTER 5- BURNING ISSUE

5.1 RISHIKAR KRISHNA JOINS RADIO MIRCHI AS HEAD, MARKETING

December 27, 2013

Radio Mirchi has appointed Rishikar Krishna as head, marketing, Mirchi Properties, ENIL. He

will be responsible for the conceptualisation, design and marketing of various intellectual

properties of Radio Mirchi.

Based in Mumbai, Krishna will report to Mahesh Shetty, chief strategy officer, Radio Mirchi.

Earlier, Krishna was with Skechers USA as associate director, marketing and was responsible for

creation of brand awareness and brand preference in the Indian market.

About his new role, Krishna says, "My key responsibilities at Radio Mirchi will be to manage

shows and concepts that we call 'properties'. For now, I will take care of Mirchi Music Awards

and Mirchi Top 20." His job will be to add new elements to the brand and take them to market.

Krishna has more than a decade of experience. In his previous stint at Radio Mirchi, roles he

held (over a span of seven years) included group manager, corporate marketing; senior manager,

marketing; and manager, marketing.

Krishna holds an MBA degree in marketing from University of Pune. He began his career with

Philips Consumer Electronics as assistant manager, marketing and worked there for around two

and a half years before moving to Radio Mirchi. At Philips, the launch of pocket FM radios was

an important milestone.

Among the awards he has won over the years are names such as Midas Award and Designomics

Award for digital innovation, among others.


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5.2 RADIO MIRCHI RESULTS STRONG, PAT GROWS 38%ET BUREAU FEB 11, 2014, 04.00AM IST

NEW DELHI:Entertainment Network (India) Ltd (ENIL), which operates the popular FM radio

channelRadio Mirchi,reported 38% higher net profit for the quarter ended September 30, 2013

to Rs 25.8 crore from Rs 18.7 crore a year ago. Revenues for the quarter were 12.7% higher at

Rs 98.5 crore as compared to Rs 87.4 crore a year ago.

The company's earnings before interest, tax, depreciation and amortization (EBITDA) stood at

Rs 38.2 crore, up 26.7%. The company's EBITDA margin improved from 34.5% in Q3 FY13 to

38.8% during the current quarter. Prashant Panday, executive director and chief executive

officer,ENIL said that the company had done well in a tough economic environment.

"Our EBITDA andPAT numbers are the highest ever since inception. Our revenues are the

highest ever for Q3 since inception. While the going will remain tough in the months to come,

we expect a gradual turnaround resulting in improving medium to long term growth prospects.

There is good news on the regulatory front as well with TRAI expected to offer a formula for

renewal of current Phase-2 licenses, and with MIB finally expected to go ahead with Phase-3

auctions," said Panday.
http://economictimes.indiatimes.com/topic/Entertainment%20Network%20(India)%20Ltdhttp://economictimes.indiatimes.com/topic/Radio%20Mirchihttp://economictimes.indiatimes.com/topic/ENILhttp://economictimes.indiatimes.com/topic/PAThttp://economictimes.indiatimes.com/topic/PAThttp://economictimes.indiatimes.com/topic/ENILhttp://economictimes.indiatimes.com/topic/Radio%20Mirchihttp://economictimes.indiatimes.com/topic/Entertainment%20Network%20(India)%20Ltd


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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.

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.

Radio mirchi has adopted growth strategy after the wave of privatization.


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BIBLOGRAPHY

www.radiomirchi.com

www.enil.co.in/radiomirchi.php

https://www.facebook.com/mirchi983fm

article on cis: http://mumbai-radio mirchi.com/marketing-strategies.html

www.investopedia .com
http://www.radiomirchi.com/http://www.enil.co.in/radiomirchi.phphttps://www.facebook.com/mirchi983fmhttps://www.facebook.com/mirchi983fmhttp://www.enil.co.in/radiomirchi.phphttp://www.radiomirchi.com/

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