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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.
 
¢ In October 2001, RM launched radio broadcasting station in
Indore.
¢ Operated by Entertainment Network India Ltd (ENIL).
¢ 
   Rennett, Coleman & Co. and Time Infotainment
Media Ltd.
¢ Radio Mirchi is Star SR of ENIL , started October 2001.
    
¢ 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.
þ ! þ " 
¢ 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)
 ! þ " 
¢ 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.
 
¢ 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
Rangalore.
¢ 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.
 !  
¢ 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
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¢   
  
Radio mirchi do not use this type of segmentation. They do not
broadcasts any kind of regional's song.
¢ 
 
  
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.
 
¢  
   
Rehavioral segmentation, buyer are divided into groups on the
bases of their knowledge of attitude towards use of response to a
product.
Ë º   In the NAVRATRI they play Ras Garba at sponsored party.
Ë     They are playing all type of songs
Ë r #   i They are providing gift vouchers, gifts couple tickets,
etc. So consumer or the listeners are attract and listen the radio
mirchi.
_ 
¢ 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
P RANI JEANS.

´MIRCHI SUN NE WALE ALWAYS KHUSµ


*# ºþ|$ $%&$_
1. Product.
2. Price.
3. Place.
4. Promotion.
5. People.
6. Process.
7. Physical Evidence.
8. Productivity and Quality.
ÿºr _
¢ Din Hua Regin.
¢ Hello Mumbai.
¢ Khubsurat.
¢ Total Filmi.
¢ Rumper to Rumper.
¢ Purani Jeens.
¢ Dr. Love.
¢ Rat Raki.
¢ Countdown.
¢ Mirchi Star of the Week
Ñ $
|_%_$'þº % $
¢ Flexible Price.
¢ Discount Price.
¢ Diversionary Price.
¢ High Price maintenance Price.
¢ Combo Price.
Ä(% $
¢ Mumbai.
¢ Pune.
¢ Ahmedabad.
¢ Delhi.
¢ Indore.
¢ Kolkata.
¢ Chennai.
¢ Ranglore.
¢ Jaipur.
¢ Hyderabad.
¢ Patna.
¢ Jalandhar.
Aºº_º
¢ Advertising.
¢ Sales Promotion.
¢ Public Relation.
¢ Publicity.
ü$º($
¢ Service Provider.
¢ Customers.
¢ Others
Kº $||
¢ Job Shop Process.
¢ Continue Process.
a)Research For Songs.
b)Programming Of Songs.
c)Mixing.
d)Rroadcasting.
'| %($$ $
¢ Peripheral Evidence.
¢ Essential Evidence.
*ºr __'%)r%(_'
¢ MumbaiiRadio Mirchi is No. 1 in the city with a market share of
15.7 per cent.
¢ DelhiiRadio Mirchi leads in the city with a market share of 23.9 per
cent.
¢ KolkataiRadio Mirchi leads in the city with a market share of 20.4
percentage points.
¢ RengaluruiRadio 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.
 
¢ 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.
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¢ First mover advantage

¢ High listenership

¢ Strong FM background

¢ Product innovation

¢ Strong brand equity


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¢ 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. Rut, in India there is
no proper research is available. Many stations are
conducting their own research which can be biased.
º  
¢ Wide untraped market

¢ Increase audience

¢ More access point to listen

¢ Tie-ups with REST or Railway authority for playing the FM in


train and in bus.

¢ Allowing private FM players to start news and current affairs


programs.
_ 

¢ Increase competition

¢ Government policies

¢ Changes in taste and preference of customer


 
¢ 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.