RADIO MIRCHI

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.  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. The case finally talks about the new challenges that Radio Mirchi might have to face in the changed environment and the future outlook for the company.

Background Note
 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

First wave of FM Privatization
 July 1999 gov decided to privatize FM Radio      

sector. Ninth Five year plan Gov offered licenses for 10 year, charging 15% license fee with annual hike. 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. Competion for Ads revenue amoung other FM ( Mumbai & Delhi)

ADDING SPICE
 Change Perception of Radio.  Created a colorful image in audience.  Segmentation of listeners & program

was customized.  Local language programs.  Updated every week new releases.  Listeners chatted with film stars.  Radio mirchi hired RJs (radio jockey)  Radio Mirchi invested in high quality equipment & transmissions.

Marketing Mirchi
 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

Growing popularity of RM
 Popular in youths.

 Reminder to reinforce marketing
 Help to other SBU.  Program format of local language.  CSR (NGOs)  Information regarding traffic, health, safety

e.t.c  Good content & marketing

New Challenges
Policy guidelines Fear of Niche broadcaster Entry of foreign radio channel Re-entering of 1phase player Adlabs ,Sun Tv New campaign of existing One-station-per-company-per city norm implemented by gov  High charge taken by ppl (phonographic performance ltd)  Development of high technology- internet, quality of software, internet radio, digital audio broadcasting  Gov restricted 2-3 minutes news only
      

Outlook
 Optimistic about new policy  Listeners increased  Market reach  Started strategic partnership with

international players.  Provide consultancy services in Bangladesh to set up new radio station  Maintain Leading position through innovative marketing campaign.