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Strategies and its evaluation

& its importance in current


market

Ø strategies are something which each & every


organization have so going into details we have
gathered strategies followed by radio mirchi &
comparing it with other fms curently In competition and
previewing its complete analysis of its strategies
implementation
RADIO
MIRCHI
HISTORY
Radio broadcasting is a Government of India
monopoly under the Directorate General of All
India Radio—

vestablished 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 stations
v
v
THE CHANGING FACE OF RADIO OVER
TIME
No TV Radio – the leader
in media
TV the ruling king , Radio - the dead
Radio – only Vividh media
Bharati
Public
broadcaster
Advent of FM
Revival of
Radio Slow songs
RJs -
Advent of Private AIR FM starts Becoming RJs –
Channels - 2 - 3
aideM

with more hip staid Classical -


stations and Iconic
interactive Old time Amin Sayani…
programming…
Radio – The Fresh, new, and hit music…
music
entertainment High incidence
dynamic.. request Stuck in of speech
maestro Music led, shows…. the past programming
Private Radio speech dedications
Platform …. buzzing with programming
limited to
choices … almost 10 in jock-talk and
number … fighting for
ecnenimorP

programme
differentiation , yet to go formats built
niche in music shows
2-3 channels
fighting for
The radio market
Small differences with non- market share is now virtually
stop music, English music...TV with almost unrecognisable
stars as RJs...mood led similar
programming...etc… programming from the time when
the BBC was
dominant
80 ’ s –
Curre Early Late 70 ’ s
nt 2000 90 ’ s early 90 ’ s
POPULAR Rjs

& OTHER
RJS OF
RADIO
SUREN JEETURAJ ANMOL MIRCHI….
.
vplus a National Channel, the Integrated
North-East Service (aimed at tribal groups in
northeast India), and the External Service.
v

vThere 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 AIR began operating in 1936 and the first FM
service in India started in 1977, private participation
wasn't allowed until 1993 when the government
experimented with a daily, two-hour slot on the FM
channels in Delhi and Mumbai.
Spontaneous associations with radio

Peaceful atmosphere

Music
Music Entertainment
No loneliness

Time pass
Relaxation

Good friend

Fun
No tension

Information Radio Jockeys

Good songs

Stress buster
BENEFITS OF
RADIO TO THE
PEOPLE
LISTENINNG ARE
AS FOLLOWS :-
4 . People ’ s
attention
2 . Radio is
“”you get to know the traffic update”
“You are given current affairs news…what's
slips in and
hyper - local happening around Delhi” out of the
“They tell you about the weather, where to go
in the weekend” radio
“you know the songs that are
3 . Listening coming on radio…and you
sing along with it…but you
habits led by don’t really hear what the
RJs say”
time and mood
1 . Music and Lively songs during
5.
entertainment day, slow songs in Relationship
are key evening with radio
varies by
Songs .. for all segment
Students :
Radio jockeys companion among
crowd companion
Conversation without intruding
on space
Information/ traffic Housewives :
updates companion whilst
Dial Ins/ Contests
alone, connection
Happenings .. to outside world
youngsters
Jokes Professionals :
background filler
Tips with points of
engagement
How people use
radio

– weekdays ?
How people use radio - weekdays

In the Self Self RADIO:


Self + + Family Part of daily routine
S
kids hubby Background, non-
background e Self intrusive
l Companion whilst
f alone
6 10 a . m 1 5 6 8 10 Indulgence for self
a.m p.m p.m p.m p.m p.m

In On Self RADIO:
Back - the On Energising, off-set
ground Out of home activity . the Fami ( especially stress
ly if
unmarried ) Unwinding
Fill monotonous
journey
6 9 10 7-8 p.m 10
a.m a.m a.m p.m

In the College /
friends / Friends Family RADIO:
roa courses Time pass
background
d roa Self
On Self d Post Private moments
route retur Energising, pep
6 a . m 8 a . m 10 a . m 2-3 p.m 5 p.m n
8 p . m 10
p.m
Radio Mirchi, Times Internet Limited,
Times Business OOH, ABSL 360 Degrees
Solution Mirchi movie ltd
BCG Matrix Times music, zoom,
Times Now
Relative Market
Share
High Low

High

Product
Sales
Growth Rate
Low
World
Wide
Media,
Publishing
Division
The popular taglines in
various cities of radio
mirchi are
Delhi Bangalore Gwalior Kolkata Tagline Vadodara Tagline "Radio
"Its Hot" Tagline "Sakat Tagline "Michi shone j Mirchi Shune mon always
hot maga!" "Gwalior always khushi khush "
Jhoome" thake se”

Chennai Tagline Nasik Tagline Hyderabad Pune Tagline "Radio Thiruvananthapuram


"Idhu semmma "Mirchi Sunne Tagline "Idi Mirchi - It`s Hot" / Tagline "Sangathi HOT
hot machchi!" wale Always chaala hot Radio Mirchi - aanu!"
Khush" guru!" Tikhat Aahe!
&"Garam Ahe!"
Ad Revenue
Landscape
INTRODUCTION OF RADIO
MIRCHI :-

vT he br and RADIO MIRCHI 98.3FM. it


is owned by the company
ENTERTAINMENT NETWORK INDIA
LTD.(ENIL) ENIL is promoted by
Bennett, Coleman & Co. Limited
(BCCL)

vwhich is one of the lar gest media


and enter tainment companies in India,
operating in various media se gments
Before we begin , let ’ s know a
little about Radio Mirchi .
vThe original avatar of Radio Mirchi was Times FM, which
is probably the most famous radio in India which began its
operation in 1993.
v
vUntil 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.
v
vThe Times Group operated its brand, Times FM, till June
1998. After that, the government decided not to renew
contracts given to private operators.
contracts given to private operators.
vIn 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.

v
v
v
vEarlier available in the seven cities of Mumbai,
Delhi, Kolkata, Chennai, Pune, Indore and
Ahmedabad, now it is also available in key markets
of Bangalore, Hyderabad, Jaipur, Patna &
Jalandhar thereby taking the tally to 12 stations
across India.
Strong imagery…that of spicy, young and dynami
Well known RJs and programmes…
Plays music resonating with young generation
Respondents placed stations on a
ladder , based on their perception of
adilyhow successful they are …
oyable, new music and also fun programming

Radio Mirchi
Growing old
Red FM Popular once upon a time but losing out as no

New but fast gaining popularity


Radio City
High awareness
Popular among youngsters enjoying high-tempo and English musi

Hit FM

Fever FM
Radio One Big FM
called…at probed level..no distinctive imagery
Very new
AIR FM Name at times not spontaneously evoked..

Old and boring


CORPORATE OBJECTIVE
The goal is to sustain the position of a
LEADER in the market, in terms of
Annual growth, Market share, competition
and customer satisfaction
ENVIRONMENTAL ANALYSIS

1.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
 RJ’s 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.
Cont.........

 Internet radio is introduced.

 Modern equipment and highly technical


transmitters are used

 Visually appealing materials are also associated


COMPETITIVE ENVIRONMENT
COMPETITIVE ENVIRONMENT

v Radio Mirchi’s 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.
v
vRadio 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.
v
vThe main advantage of FEVER is that, apart from Hindi
music, they also play Pure English music, which is
automatically becomes threat to Radio Mirchi
COMPETITIVE ENVIRONMENT

v Radio Mirchi’s 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.
v
vRadio 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.
v
vThe main advantage of FEVER is that, apart from Hindi
music, they also play Pure English music, which is
automatically becomes threat to Radio Mirchi
vBut the competition from other music stations is quite
low .
v
vSecondly, the advertisers and other brands that
associated with Radio Mirchi are loyal to them
v
vPlus, 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
CUSTOMER ENVIRONMENT
vThe target market for the Radio Mirchi has normally been
defined in five different stages:
v
DEMOGRAPHIC: This market shows the greatest
potential, as AGE factor dominant other factor in Radio
Industry. Secondly, GENDER factor.

GEOGRAPHIC: Currently, Radio Mirchi has a presence


in more than 33 cities, including the 6 metros of India.
This market also shows great deal for them.
BEHAVIORAL: Listener who listens to Radio Mirchi is
very loyal to them as per survey mention above.

SITUATIONAL: For many different occasions Mirchi


came up with unique game or any kind of attractive
show. For egs. New Year’s, Diwali, R.D.Burman’s
birthday etc. customers are highly attracted to all these
innovative shows and participated.

PSYCHOGRAPHIC: Music has become a very


important part of our lifestyle that we cannot ignore,
neither Radio Mirchi. That is why, they always keep
track record of latest and customers demand
SWOT Analysis on Radio
Mirchi
Strength Weakness
•Presence in major •No subscription revenues in
cities radio
•Lack of differentiation between different FM
•High listenership
§ radio stations
§High quality studio & •High music royalties
transmission equipment
•Capital intensive business

Opportunity Threats
•Benefit from the robust •Intense competition in the
growth radio
§in the FM radio
Internet radio industry business
•Loss of listenership in radio business
§Self news shows
• International market
Growth Drivers
•GDP Growth rate of 8 . 7 %,
•Ad spend growth – 20 %

•Young nation
with
Higher spending •Untapped
Power RADIO MIRCHI
rural market
•Largest
workforce in
The world

Foreign
Investment
GE MATRIX
INDUSTRY ATTRACTIVENESS WEIGHT RANK PRODUCT

Market size .3 8 2.4


Growth rate .25 7 1.75
Profit margin .05 6 0.15
Technology and capital .2 7 1.4
Social impact .2 8 1.6
Total 1 Out of 10 7.3
BUSINESS STRENGTH WEIGHT RANK PRODUCT

Market share .4 9 3.6

Core competence .3 8 2.4

Technology ability .2 7 1.4

Ability to match .1 7 .7
service

Total 1 Out of 10 8.1


Business Strength
9
6 3
Leader GROWTH IMPROVE
trial
ctiveness
TRY HARDER PROCEED WITH CARE
PHASED WITHDRAWAL

DIVEST/
CASH INVESTMENTCASH GENERATION WITHDRAWAL

Selective
Invest investment Divest
RADIO MIRCHI EMERGES AS
THE LEADER IN 2008: RAM
Radio Mirchi 98.3 FM, India’s hottest Radio
station has been leading the race week on week,
all round the year 2008. The recently declared
RAM results for week 50 has acclaimed that
Radio Mirchi 98.3 FM has topped the charts and
has established itself as the No #1 radio station in
Delhi.
Strategies
§ 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 stre

addition to our income from airtime sales on


FM radio channels, we intend to focus on
ating or expanding additional revenue streams
have already launched Mirchi Activation event
ch are promoted through our radio channels
enable us to enhance our revenue from airtim
es as well as attract new advertisers.
CONT…….

Additional income streams may also includ


revenue from SMSs or calls received from
listeners, or from the sale or licensing o
to third parties, whether in India or in
international markets.
We have also recently provided consultanc
services to anindustrial group in Banglad
setting up radio stations.
THANK

YOU

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