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Shalini Srivastava Heera Singh 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. Operated by Entertainment Network India Ltd (ENIL) Promoters: Bennett, Coleman & Co. and Time Infotainment Media Ltd. Radio Mirchi is Star SBU of ENIL , started October 2001
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, let’s 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 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. It's the largest private FM Radio operator in the country in terms of number of operational stations and revenue.
The research conducted by IMRB at major cities in India, In Delhi of the total average listenership of 16.9 lakhs. Radio Mirchi has a listenership of around 12.1 lakhs. Radio City has a listenership of 2.9 lakhs, Which means that the market share of Radio Mirchi is 72%, the target segment of the organization are the house wives and old people who amount to the top of the spectrum. The listener ship Share of Radio Mirchi is 60 % when compared with all the other private FM stations, their success can be attributed to the fact that they are city centric; they talk in the lingo that is used in the city. They talk for the social causes of their particular society.
This marketing plan is designed for the Brand Radio Mirchi 98.3FM. Substantial opportunities exist to tap into the market of Global News and International market. The advantage of this opportunities influence the behavior of target market in such a way that will increase the sales of Radio Mirchi even more. The market profile is refined by doing loads of research from internet to know the actual
market share, attitudes and behaviors towards the music and benefits provided by them. The results were combined with demographic, geographical and psychographic information. But the major area that has highest concentration is demographic. The market is divided amongst children, youngsters, young adults and even aged people like to listens today’s music. All of these are taken care very well and represents high potential for future market growth. As Radio Mirchi has the top class wide network, with great support from their advertisers and distributers, they do not face a high threat from their competitors. RADIO INDUSTRY Radio has been the most cost effective source of entertainment in India for a long time. For a long time, the radio industry was dominated by the state broadcaster- All India Radio. However, the radio sector has been gradually liberalized and has been opened for private and foreign investment. Radio industry recorded an impressive performance in 2007, having recorded a growth of 24 per cent over the previous year and is estimated at Rs. 6.2 billion in 2007, up from Rs. 5 billion in 2006. In the last four years 2004-07, the radio industry recorded the second highest cumulative growth of 37 per cent on an overall basis after online advertising. The radio industry is projected to grow to Rs. 17 billion by 2011, implying a 28% CAGR over the next five years. ENIL currently operates radio stations under the brand name ‘Radio Mirchi’ in 25 cities. 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. 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. ♣ Help in June 2005 Mumbai flood. ♣ Showing responsibility towards various NGO ♣ RJ’s mainly attracted by package that has been offered to them by competitors. SOCIAL ♣ Only 10 year of license is valid. ♣ Up to 15 % annual hike In licensee fee ♣ To enter in the industry, high one time entry fee has to be given ♣ CUSTOMER ENVIRONMENT The target market for the Radio Mirchi has normally been defined in five different stages: 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.
Serve each and every section of public starting from the children to 70+ aged. 10♣ It delivers the best combination of innovative content and interesting initiatives. ♣ Radio Mirchi known for giving superior quality music and benefits to their customers. ♣ •The information for this analysis is generated through the following programs: SHOW TIME(weekdays) TARGET AUDIENCE 7a.m – 11a.m Everyone Hi Delhi 11a.m – 2p.m Female oriented Khoobsurat 2p.m – 5p.m Quizzes related to Total Filmy bollywood 5p.m – 8p.m Everyone Sunset Samosa 8p.m – 11p.m Play old music Purani Jeans 11p.m – 1a.m Ask solution for Dr. Love relationship problems INTERNAL ENVIRONMENT STRENGTHS According to the latest listenership figures released by IMRB International's Media♣ & Bronze medal for Best Activity generating Brand Awareness and Trial recruitment at the Promotion Mar the '983 - Kismat Khol De' Contest won the Gold medal for Best Activity generating Brand Loyalty at the Promotion Marketing Awards of Asia – 2004. Also won awards for its successful brand building. ♣ 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 with BLITZKRIEG 2008 (ICFAI Business School), COBWEB 2008 (college fest of LHMC) and SPANDAN 2008 (college fest of Vivekananda College). ♣ Radio Mirchi has partnered with VIBGYOR 2008 (college fest of International School of Business and Media). ♣ The research reveals that Radio Mirchi enjoys the highest \"loyalty\" among its listeners. ♣ IMRB 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. ♣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. Keting Awards of Asia – 2004.
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 customer’s( .i.e. radio listeners) of Radio Mirchi since they don’t pay for listening radio and it is available everywhere(rather in pockets of every pers 98.3 FM - It uses the tagline \"Sakat hot maga!\" in Bangalore. 17• 98.3 FM Tagline \"Mirchi Sunne Wale Always Khush\" Started On 23 July 2007 • 98.3 FM Tagline \"Radio Mirchi - It's hot\"... •on in the form of mobile) Promotion: Radio Mirchi promotes its radio station in different cities in their local language. Following are few examples: To come up with something related to daily NEWS. It will go to attract that market which is yet not being touch by any private channel.• Since it is a Brand,
so give 100 percent to their existing products to maintain its quality and power. • To increase prime time advertising rates. As a result clients will get reduce but listenership increases which would later attract clients again. • 98.3 FM - Tagline \"Radio Mirchi Shune monk always khush \"
MAIN TARGETS OF RADIO MIRCHI…
THE ETHNIC TIES: It is the human nature that we desire to be associated with people whom we are attached to and hence ethnic ties play a more important role, if the station is able to satisfy your sense of identity , you are definitely going to be loyal to it. GENDER: Especially with the community radio growing at a fast pace in India, it is necessary that the stations cater to the needs on the basis of gender issues, women talking to women is a growing trend in the industry. Talking about gender related issues and gender bonding have become a good part of life. DEMAND FOR PUBLIC SERVICES:
the demand to be update with the news and the events that might effect you is a growingf concern among people. as you cannot carry a television service its good if you have an in car fm stereo and get to know the traffic updates and the weather updates. LOCAL FLAVOUR: the local lingo goes with the general public, the youngsters when they are involved in the process of choosing a person or need ot talk about the local issues these channels play an important part. POLITICS: politics have a major role to play on the minds of people hence the content that is aired on the medium of radio is supervised by government rules.
LISTENERS OF DISPERSION ACROSS SEC’S AGE AND GROUPS % SPLITOF LISTENERS STATION SEC A SEC B SEC C SEC D 1519 YRS % POPULATIO N RADIO MIRCHI RADIO CITY RED GO FM 1 22 21 30 22 21 22 22 20 24 31 27 22 30 26 18 41 22 20 7 4 19 22 20 8 24 22 21 20 9 14 16 21 17 22 26 47 23 21 26 33 21 19 23 20 20 14 21 38 27 12 2024 YRS 15 2534 YRS 29 3544 YRS 22 23 45+
The lead players. Radio Mirchi and Radio City have similar listenership profiles - a skew towards younger age groups and SEC A and D. GO has a distinct skew towards SEC A due to its programming content. Broadly, most of the stations have identical programming currently and are thus attracting audiences that are very similar. Stations have not been able to carve out a niche for themselves, in anyof the markets.Interestingly, a research commissioned by RED FM inDelhi carried out by Development and Research Studies( DRS ) has proved that listeners cannot really identifystations accurately. In 74% of the cases, listeners attributed their favourite radio programme to the wrong FM station! This suggests a call-for-action for stronger brand positioning exercises by the stations - and ensuring that they do not sound just like next competitor.
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