Submitted to: Prof.

Rajesh Vyas

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 200407, 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.

POLITICAL To enter in the industry, high one time entry fee has to be given There is no FDI allowed in this sector

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. Internet radio is introduced.

Up to 15 % annual hike In licensee fee Only 10 year of license is valid. Modern equipment and highly technical transmitters are used Visually appealing materials are also associated

ECONOMIC RJs mainly attracted by package that has been offered to them by competitors.

SOCIAL Showing responsibility towards various NGO Help in June 2005 Mumbai flood.

 Radio

Mirchis high end competitor FEVER 104

FM Fever 104 is a brand owned by Hindustan Times Group, handled by HT Music and Virgin Radio key factors, such as type of music they play, promotional activities, product offering and overall presence in the competitive arena. The main advantage of FEVER is that, apart from Hindi music, they also play Pure English music, which is automatically becomes threat to Radio Mirchi.

Radio mirchi has targeted 18-65 years of age group people, the target segment of the organization are college students, teenagers house wives, business executive and old people who amount to the top of the spectrum. The listener ship Share o

Show
Hi Delhi Khoobsurat Total Filmy Sunset Samosa Purani Jeans Dr. Love

Time
7a.m 11a.m 11a.m 2p.m 2p.m 5p.m 5p.m 8p.m 8p.m 11p.m 11p.m 1a.m

Target Audience
Everyone Female oriented Quizzes related to bollywood Everyone Play old music Ask solution for relationship problems

Product for listeners:-music, information, entertainment For corporate and retailers:- airtime Price:- Advertisement rate

Category
TV channel promotions Real estate Cellular phone service Independent retailers Publications/books

% share (time based)

11.8 6.2 5.5 3.8 3.1

Place:- 33 cities (Mumbai, Delhi, Bangalore, Ahmadabad. etc) Promotion:- contest, lucky draw, games, hoardings etc

 Process: Physical

evidence : People:- RJs, music arrenger

STRENGTHS
Largest operating network Operate in diverse market Widely recognized Strong advertisement sales capability. High quality studio & transmission equipment

WEAKNESSES
Inadequate penetration in Indian market. Ads are more as compare to songs aired

OPPORTUNITIES
Satellite radio Internet radio Self news shows International market

THREATS
AIR FM radio, Gold Pvt. Music stations Retaining talented RJs