strategies & their implementation

8/14/2019 Strategies & Their Implementation

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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

strategies & their implementation

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