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strategies are something which each & everyorganization have so going into details we havegathered strategies followed by radio mirchi &
comparing it with other fms curently In competition andpreviewing its complete analysis of its strategiesimplementation
trategies and its evaluation& ts importance in currentarket
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RADIO
MIRCHI
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HISTORY
Radio broadcasting is a Government of Indiamonopoly under the Directorate General of llndia Radiovestablished in 1936 and since 1957 also known-- - ,as Akashvani a government owned semicommercial
operation of the Ministry of Information and.Broadcasting
v
vFrom only six stations at the time of,independence All India Radio's network had
-expanded by the mid 1990s to 146 AM stationsv
v
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arly2000 0 s arly 90 s 0 s
Radio the leaderin media
-Radio the deadmedia
Publicbroadcaster
Slow songs
RJs-Classical
Iconic Amin Sayani
High incidenceof speech
programming
Radio Theentertainment
maestro
, ,Fresh new and..dynamic,Music led
speechprogramming
limited to-jock talk and
programme
formats builtin music shows-2 3 channels
fighting formarket share
with almostsimilar
programming
ate0 sCurrent
-RJsBecoming
staid
Old timemusic
Stuck inthe past
AIR FM startswith more hip
and interactiveprogramming
hit musicrequest
.showsdedications
Revival ofRadio
dvent of FM
,V the ruling kingadio only Vividhharati
o TV
dvent of Private- -hannels 2 3tations
rivate Radio.latform buzzing withhoices almost 10 inumber fighting for,ifferentiation yet to goniche
-
Small differences with non, ...stop music English music TV
...stars as RJs mood led... programming etc
HE CHANGING FACE OF RADIO OVERTIME
he radio markets now virtuallynrecognisablerom the time whenhe BBC wasdominant
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POPULAR Rjs
SUREN JEETURAJ ANMOL
& OTHERRJS OF
RADIOMIRCHI..
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v AIR began operating in 1936 and the first FMservice in India started in 1977, private participationwasn't allowed until 1993 when the governmentexperimented with a daily, two-hour slot on the FM
channels in Delhi and Mumbai.
v There are five regional headquarters for All
: ;India Radio the North Zone in New Delhi the- , ;North East Zone in Guwahati Assam the East; ;Zone in Calcutta the West Zone in Bombay and
.the South Zone in Madras
v ,plus a National Channel the Integrated
- (North East Service aimed at tribal groups in
), .northeast India and the External Servicev
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MusicMusic
Relaxation
Fun
Information
Entertainment
Time pass
No tension
Radio Jockeys
Stress buster
Peaceful atmosphere
Good songs
No loneliness
Good friend
Spontaneous associations with radio
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BENEFITS OFRADIO TO THEPEOPLELISTENINNG ARE
AS FOLLOWS :-
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. Radio is-yper local. People sttentionlips in andut of theradio
. Music and ntertainmentre key
/Information trafficupdates
Songs . . or al l
..Happeningso u n g s t e r s
Tips
Conversation
/Dial Ins Contests
Radio jockeys
Jokes
. Listeningabits led byime and moodLively songs during
,day slow songs in
evening
.elationshipith radioaries byegment :tudents
companion amongcrowd companionwithout intruding
on space :ousewives
companion whilst,alone connection
to outside world
:rofessionals background filler
with points ofengagement
you get to know the traffic update You are given current affairs news what's
happening around Delhi ,They tell you about the weather where to go
in the weekend
you know the songs that are
coming on radio and yousing along with it but you
don t really hear what theRJs say
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How people useHow people use
radioradio
weekdays ?weekdays ?
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/ollege/riendscourses Friends Family
.a m .0 a m - .3 p m .p m .p m 0.m
.a m
n the ackground elf elfn oute ostretur
n -ack round .ut of home activity Family.m .m - .8 p m 0.m0.m
elf( speciallyf )nmarriedn he
roa
n he
roa
n theackground
elf+kids Family
.m .0 a m .m .m .m 0.m.m
elf+hubbySelf Selfelf
How people use radio - weekdays
:RADIO
Part of daily routine
, -Background nonintrusive
Companion whilstalone
Indulgence for self
:RADIO
Time pass
Private moments
,Energising pep
:RADIO, -Energising off set
stress
Unwinding
Fill monotonousjourney
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BCG Matrix
High Low
High
Low
ProductSalesGrowth Rate
Relative MarketShare
Radio Mirchi,Times BusinessSolution
Times Internet Limited,OOH, ABSL 360 DegreesMirchi movie ltdTimes music, zoom,Times Now
WorldWideMedia,Publishing
Division
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The popular taglines in
various cities of radiomirchi are
Delhi"Its Hot"
Bangalore
Tagline "Sakathot maga!"
Gwalior
Tagline"GwaliorJhoome"
Kolkata Tagline
"Michi shone jalways khushithake se
Vadodara Tagline "Radio
Mirchi Shune mon alwaykhush "
Chennai Tagline
"Idhu semmmahot machchi!"
Nasik Tagline
"Mirchi Sunnewale AlwaysKhush"&"Garam Ahe!"
Hyderabad
Tagline "Idichaala hotguru!"
Pune Tagline "Radio
Mirchi - It`s Hot" /Radio Mirchi -Tikhat Aahe!
Thiruvananthapuram
Tagline "Sangathi HOTaanu!"
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Ad RevenueLandscape
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vThe brand RADIO MIRCHI 98.3FM. itis owned by the companyENTERTAINMENT NETWORK INDIALTD.(ENIL) ENIL is promoted byBennett, Coleman & Co. Limited(BCCL)vwhich is one of the largest mediaand entertainment companies in India,o eratin in various media se ments
INTRODUCTION OF RADIO
MIRCHI :-
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, efore we begin let s know a.ittle about Radio MirchivThe original avatar of Radio Mirchi was Times FM, whichis probably the most famous radio in India which began itsoperation in 1993.v
vUntil 1993, AIR, a government undertaking, was the onlyradio broadcaster in India. The government then took theinitiative to privatize the radio broadcasting sector. It soldairtime blocks on its FM channels to private operators, who
developed their own program content.vvThe Times Group operated its brand, Times FM, till June1998. After that, the government decided not to renew
contracts given to private operators.
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vIn 2000, the government announced the auction of 108FM frequencies across India. ENIL won the largest numberof frequencies, thereby acquiring a nationalfootprint, and becoming the only commercial FMbroadcaster present in all 4 Metros, with an exclusive
presence in 7 cities.
v
vv
contracts given to private operators.
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vEarlier available in the seven cities of Mumbai,Delhi, Kolkata, Chennai, Pune, Indore andAhmedabad, now it is also available in key marketsof Bangalore, Hyderabad, Jaipur, Patna &Jalandhar thereby taking the tally to 12 stationsacross India.
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Big FM
Very new..Name at times not spontaneously evoked
Radio One
..alled at probed level no distinctive imagery
AIR FM
Old and boring
Fever FM
High awareness-Popular among youngsters enjoying high tempo and English mus
Hit FM
ew but fast gaining popularityRadio City
Growing oldPopular once upon a time but losing out as nRed FM
dily ,yable new music and also fun programming
Radio Mirchi
,Strong imagery that of spicy young and dynam Well known RJs and programmes
Plays music resonating with young generatioes p o n d e n t s p l ac e d s t a t i o n s o n a,ad d e r b a s e d o n t h e i r p e r c e p t i o n o f
ow s u c c e s s f u l t h e y a r e
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ORPORATE OBJECTIVEThe goal is to sustain the position of aLEADER in the market, in terms of
Annual growth, Market share, competitionand customer satisfaction
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NVIRONMENTAL ANALYSIS1.EXTERNAL ENVIRONMENT
PEST ANALYSIS
POLITICAL
To enter in the industry, high one time entry fee has tobe given There is no FDI allowed in this sector Up to 15 % annual hike In licensee fee
Only 10 year of license is valid.
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ECONOMIC RJs mainly attracted by package that has beenoffered 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 privateChannels with different frequencies. Today we have 10music stations.
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Internet radio is introduced.
Modern equipment and highly technicaltransmitters are used
Visually appealing materials are also associated
Cont.........
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OMPETITIVE ENVIRONMENT
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COMPETITIVE ENVIRONMENT
v Radio Mirchis high end competitor FEVER 104 FM- wasevaluated on several key factors, such as type of music they
both play, promotional activities, product offering and overallpresence in the competitive arena.
vvRadio Mirchi is facing a high competition from FEVER104FM. Fever 104 is just 2yr Old and it is already creatinggreater threat for other music stations including Radio Mirchi.
vvThe main advantage of FEVER is that, apart from Hindimusic, they also play Pure English music, which isautomatically becomes threat to Radio Mirchi
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COMPETITIVE ENVIRONMENT
v Radio Mirchis high end competitor FEVER 104 FM- wasevaluated on several key factors, such as type of music they
both play, promotional activities, product offering and overallpresence in the competitive arena.
vvRadio Mirchi is facing a high competition from FEVER104FM. Fever 104 is just 2yr Old and it is already creatinggreater threat for other music stations including Radio Mirchi.
vvThe main advantage of FEVER is that, apart from Hindimusic, they also play Pure English music, which isautomatically becomes threat to Radio Mirchi
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vBut the competition from other music stations is quitelow .v
vSecondly, the advertisers and other brands thatassociated with Radio Mirchi are loyal to themvvPlus, 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 RadioMirchi
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CUSTOMER ENVIRONMENT
vThe target market for the Radio Mirchi has normally beendefined in five different stages:vDEMOGRAPHIC: This market shows the greatestpotential, as AGE factor dominant other factor in RadioIndustry. Secondly, GENDER factor.
GEOGRAPHIC: Currently, Radio Mirchi has a presencein more than 33 cities, including the 6 metros of India.This market also shows great deal for them.
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BEHAVIORAL: Listener who listens to Radio Mirchi isvery loyal to them as per survey mention above.
SITUATIONAL: For many different occasions Mirchicame up with unique game or any kind of attractiveshow. For egs. New Years, Diwali, R.D.Burmansbirthday etc. customers are highly attracted to all these
innovative shows and participated.
PSYCHOGRAPHIC: Music has become a veryimportant part of our lifestyle that we cannot ignore,
neither Radio Mirchi. That is why, they always keeptrack record of latest and customers demand
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Strength Weakness
Opportunity Threats
Presence in majorcitiesHigh listenership
No subscription revenues inradioLack of differentiation between different FMradio stations
High music royalties
Capital intensive business
Benefit from the robustgrowth
in the FM radio industry
Intense competition in theradio
business
Loss of listenership in radio business
&High quality studio
transmission equipment
Internet radio Self news shows International market
SWOT Analysis on RadioMirchi
Growth Drivers
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Growth Drivers
RADIO MIRCHI
. %,DP Growth rate of 8 7 %d spend growth 20
oung nationwithigher spendingPower
argest orkforce inhe world ntappedural market
oreignInvestment
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INDUSTRY ATTRACTIVENESS WEIGHT RANK PRODUCT
Market size .3 8 2.4
Growth rate .25 7 1.75
Profit margin
.05 6 0.15Technology and capital .2 7 1.4
Social impact .2 8 1.6
Total 1 Out of 10 7.3
E MATRIX
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USINESS STRENGTH EIGHT ANK RODUCT
arket share .4 9 3.6ore competence .3 8 2.4
echnology ability .2 7 1.4bility to matchervice .1 7 .7
otal 1 Out of 10 8.1
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Leader GROWTH
TRY HARDER
CASH INVESTMENT
PROCEED WITH CARE
IMPROVE
/DIVESTWITHDRAWAL
PHASED WITHDRAWAL
CASH GENERATION
u s i n e s s S t r e n g t h
r i a li v e n e s s
96 3
I n v e s t e l e c t i v e n v e s t m e n t D i v e s
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RADIO MIRCHI EMERGES ASTHE LEADER IN 2008: RAM
Radio Mirchi 98.3 FM, Indias hottest Radiostation has been leading the race week on week,
all round the year 2008. The recently declaredRAM results for week 50 has acclaimed thatRadio Mirchi 98.3 FM has topped the charts andhas established itself as the No #1 radio station in
Delhi.
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Strategies Expand our footprint
Under the Phase II Policy, We are successful inwinning 25 of the radio channels that we bid for, we
will expand our footprint and cover additional marketsand regions in India. We also intend to exploreopportunities to become FM radio broadcasters orcontent providers in international markets, eitherdirectly or through strategic partnerships,arrangements, joint ventures or acquisitions
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everage our footprint to:-apture additional income
We intend to leverage our footprint ofseven operational stations and any other
station that we acquire infuture 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 ourlistenership reach would allow
.advertisers to address a larger audience
C ti l i t i b d b ildi
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Continuously invest in brand buildingand programming innovation :-We intend to maintain and enhance the leadershipposition of our radio stations through continuousinnovation, focused marketing, intensive brand
building and exploiting the interactive nature ofFM radio. We plan to engage current and potentiallisteners through on-air as well as off-airactivities. We intend to increase our use ofresearch generated internally as well as providedby external agencies to continuously monitor theevolving needs of our audience and advertisers.
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xploit additional revenue straddition to our income from airtime sales on
,FM radio channels we intend to focus on
ating or expanding additional revenue streamave already launched Mirchi Activation evenh are promoted through our radio channels
enable us to enhance our revenue from airti
.s as well as attract new advertisers
CONT
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Additional income streams may also inclu
revenue from SMSs or calls received from,listeners or from the sale or licensing,to third parties whether in India or in
.international markets
We have also recently provided consultanservices to anindustrial group in Bangla.setting up radio stations
CONT.
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THANK
YOU