This action might not be possible to undo. Are you sure you want to continue?
Presented by Anuja Jain Arihant Darda Arun Chahar Ashwini Jain Charu Pahwa Mohit Rathi
The case traces the emergence of Radio Mirchi as a leader in the FM radio industry. . The case talks about the company’s innovative marketing and promotional campaigns.ADDING MIRCHI TO INDIA Radio Mirchi is the most popular private FM radio channel in INDIA with the largest operating network and a presence in 33 cities and 6 metros. The case finally talks about the challenges that Radio Mirchi might have to face in the changed environment and the future outlook for the company. vis-a-vis FM radio. and their impact on Radio Mirchi and other FM broadcasters. It also describes the government policies .
Radio Mirchi is STAR SBU of ENIL started October 2001.BENNET.(ENIL) Promoters:.Background Note Operated by entertainment network INDIA ltd. . COLEMAN & Company and time information media ltd.
Govt. started bidding process for 108 FM radio license in 41 cities Radio Mirchi bid on 64 Frequencies and won 12 licenses Radio Mirchi started first from INDORE Competition for ads revenue among other FM(Mumbai and DELHI) Changed the perception of Radio Create a colorful image in audience . charging 15% license fee with annual hike In 2000 Govt.FIRST WAVE OF PRIVATIZATION July 1999 Govt. decided to privatize FM radio sector. offered licenses for 10 years.
CONTD… Segmentation of listeners and program was customized Local language programes Updated everyday new releases Reminder to reinforce marketing Invested in high Quality Launching innovation promotion campaigns CSR (NGO’s) Good content and marketing .
agree on 4% of revenue as license fee Bidding was done in 337 frequencies in 91 cities.) Started strategic alliance with international players .SECOND WAVE OF PRIVATISATION Occurred losses because high license fee in phase 1 Threatened to close operation Govt. Fear of niche broadcaster Expansion of Radio Mirchi to abroad High charge taken by PPL(Phonographic performance ltd. Radio Mirchi won 32 freq.
2 million equity shares of Rupees 10 each at the premium of Rupees 152 Launched radio broadcasting stations in Banglore. Investment by DHHL in our Company. Jaipur and Hyderabad Launched radio broadcasting stations in Patna & Jalandhar . Launched radio broadcasting station in Kolkata. Launched radio broadcasting station in Chennai. Reduction of capital and set off of losses against the share capital and the securities premium account. Incorporation of subsidiary Times Innovative Media Private Limited. Transfer of the 360 Degrees and OOH media businesses from TIML to TIMPL.MAJOR EVENTS Year October 2001 December 2001 April 2002 May 2002 December 2002 April 2003 May 2003 May 2003 October 2005 October 2005 October 2005 Event Launched radio broadcasting station in Indore. Initial public offering of 13. Launched radio broadcasting station in Delhi. Launched radio broadcasting station in Ahmedabad. Launched radio broadcasting station in Pune. October 2005 February 2006 April 2006 April 2007 Purchase of DHHL's shareholding in the Company by BCCL. Radio broadcasting station in Mumbai.
Royalty pay to music companies High installation and operating cost .PEST ANALYSIS POLITICAL/LEGAL Privatization of FM radio High licensing fee To enter into industry. high one time entry fee has to be given There is no FDI allowed in this sector Up to 15% hike in annual fees Only 10 year license is valid Migration fees to switch to second phase Tussle with phonographic performance ltd. for copyright and licensing fee ECONOMIC RJ’s mainly attracted by package that has been preferred to them by competitors.
there were only two music stations .but after that radio industry came up with private channels with different frequencies.Contd… SOCIAL FACTORS Make programs according to regions (Multilanguage) NGO’s “GIFT A SMILE. Today we have 10 music stations Advancement in technology (Internet world) Modern equipment and highly technical transmitters are used .MAKE A DIFFERENCE” Westernization is coming so needs and preferences of Indian customer is changed Help in June 2005 Mumbai flood TECHNOLOGICAL Before 2000.
SWOT ANALYSIS STRENGTHS WEAKNESSES Best combination of innovative content and interesting initiatives Serves all age groups Widely recognized Strong advertisement sales capability High quality studio and transmission equipment MEAGER penetration in Indian markets Long waiting quese to get connected OPPORTUNITIES Satellite Radio/DAB Internet radio Through regulatory changes International market THREATS AIR FM radio New entrants –star India and ADLABS Retaining talented RJ’s Increasing demand of internet Increasing demand of world space radio .
SECONDARY OBJECTIVES: In order to attract large number of customers it can start programs like “KHABRI BABA” in which the listners will give any five” news “and they will get special gifts.RADIO MIRCHI can go for two objectives: PRIMARY OBJECTIVE: • They should work upon the strategy to capture those markets where there is no radio services available to gain COMPETITIVE ADVANTAGE. .ANSOFF MATRIX EXISTING PRODUCT NEW PRODUCT EXISTING MARKET Market penetration Product development NEW MARKET Market development Diversification On the basis of Ansoff’s matrix.
Lucknow etc.MARKETING MIX PRODUCT High quality studio and transmission equipment Mass audience Multilinguistic programs Customization Emphasis on culture PLACE AND TIME Broadcasting (Ahmedabad.Kolkata.Mumbai.Indore.Banglore.) Various programs at various time Family (7:00-11:00 am) Housewife(11:00-2:00 pm) Youth(2:00-5:00 pm) Evening Drive(5:00-9:00 pm) Late evening(9:00-11:00 pm) Night(11:00-1:00 am) Late night(1:00-7:00 am) .Chennai.
Ding-Dong) Jingles and promos Sponsored events in schools and colleges Mirchi job fest Mirchi activation team Radio workz PRICE .CONTD… PROMOTION Cross media marketing Bite a mirchi a get a pepsi free Mirchi packets Online promotion (983 kismat khol de) Dabbawallas Mumbai marathon Mirchi khoobsurat 9 baj gaye kya Mirchi kaan awards Innovative programs (pappi da.Mr. hot crack pot. go go ganguli.
PHYSICAL ENVIORNMENT High quality studio and transmission equipment DTH Radio involved radio broadcast from radio station via satellites Good radio frequencies PROCESS Direct attachment with audience Talented RJ’s Direct to home radio Visual radio Internet radio Digital audio broadcasting Satellite radio seprate sales team of 130 employees in 8 cities PEOPLE Hired skilled RJ’s Emphasised on audience choice Level of customer involvements .
WHO OR WHAT? WHAT IS THE NATURE OF RADIO MIRCHI? WHO OR WHAT IS THE DIRECT RECEIPIENT? DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS TANGIBLE ACTS Possession Processing INTANGIBLE ACTS Information Processing .
D.Segmentation Demographic:Age group 18-35 Gender Family.g. Late evening. Delhi. Banglore. Punjabi. Night. Chennai. Late night Situational:Radio Mirchi came up with unique game or any kind of attractive show(for e. Youth Geographic:Presence in more than 33 cities 6 metros (Mumbai.Diwali. Burman show. Lucknow.Valentine day) Give reminder like “9 baj gaye kya ” Psychographic:It keeps track records of latest and customer demand (Bhojpuri.R. Housewife. English) . new year. Indore) Abroad Behavioral:Time Evening drive time.
.Targeting • Radio Mirchi has targeted listeners as well as advertisers. It has mainly targeted youth(18-35) because they are the major chunk of population. M1 S1 S2 S3 M2 M3 Radio Mirchi is targeting on service specialization.
• PICTURE OF SENDER MIRCHI AS LOGO—IT’S HOT YOUTH DIRECT RELATION R E L A T I O N C U L T U R E INNOVATIVE PROGRAMES AND COVERS ALL SECTIONS COVERED ALL AREAS MIRCHI SUNNE WALE ALWAYS KHUSH .
CORPORATE SOCIAL RESPONSIBILITY “GIFT A SMILE. Giving listeners a platform to raise their voice in election time Briefing about election process Motivating them to go out and vote Showing responsibility during June 2005 flood time in Mumbai .MAKE A DIFFERENCE” with an NGO.
LOCAL MASSESS LIKE DABBAWALLAS ETC… IT MADE ONLINE AND OFFLINE MARKETING MARKET EXPANSION:CROSS MEDIA MARKETING IT EMPHASISED ON EVERY SEGMENT LIKE YOUNGSTERS.MARKETING STRATEGY OF RADIO MIRCHI FORTRESS STRATEGY:EMPHASISED ON CUSTOMIZATION THROUGH INNOVATIVE AND ATTRACTIVE PROGRAMES RADIO MIRCHI. IN ORDER TO BE IN LIMELIGHT.SPORTPERSONS.PRIME EARNING AND SPENDING GROUP ON EVERY MEDIA IT HAS BROADCASTED ITSELF IN NEWSCHANNELS.CELEBRITIES. PROMOTIONAL ACTIVITIES.FAMILY.OLDAGE PEOPLE.TELVISION. CONCENTRATED ON EVERYTHING LIKE CORPORATE ENTITIES.INTERNET ETC IN EVERY CITIES FROM METROS TO RURAL AREAS .
NEW CHALLENGES Diverse program content was required Emergence of niche broadcasters GOI allowance of 20% FDI Many joint ventures were formed BBC worldwide and MID-DAY multimedia ltd UK’s Virgin Radio with Hindustan times RE-ENTRY OF THE PLAYERS: Star INDIA WIN 94. .6 NEW ENTERIES Adlabs South Asia FM-Earlier in Southern India.
T H A N K Y O U .