RADIO INDUSTRY –INDIA

Done by : C.B.Jayapavithra Sukanya Kumar Bhargavi .M Smruthi . V A.Gayathri Divya.M Vishnu priya Namrata Torka

INTRODUCTION
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There are a total of 232 FM channels, private and government owned in India. Current size of the radio industry (2008) is estimated at US $170.87 million. According to a PwC study, the radio industry is forecast to grow at a compound annual growth rate(CAGR)of18percentover2009 13,reachingUS$391.15million. In terms of its share of the advertising pie,it is projected that the radio advertising industry will be able to increase its share from 3.8 percent to 5.2percent between 2009 and 2013. The government earned US$11.05 million from private radio channels during 2008-09. Radio Mirchi, along with its alliances, is number one in the Indian private FM radio industry, with a 46.5-million listenership according to Indian Readership Survey(IRS)2009.

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GROWTH OVER THE YEARS

NUMBER OF STATIONS

(cross media ownership) Radio Mirchi bid on 64 F & won 12 licenses. Coleman & Co. . RM launched radio broadcasting station in Indore. and Time Infotainment Media Ltd.   Radio Mirchi started first from Indore.RADIO MIRCHI  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. Operated by Entertainment Network India Ltd (ENIL).  In October 2001.   Promoters: Bennett.

and Chennai. Radio Mirchi was already present in seven cities. announced that its license bids for 32 cities. Radio Mirchi. spread across the country. 2 -3 billion. were successful.II-WAVE OF FM PRIVATISATION  In mid-November 2005. Delhi. the most popular private FM radio channel in India. 281. Kolkata. was part of the second phase in the Government of India's (GoI) efforts to privatize FM radio. The bidding process. including key cities such as Mumbai.6 million was for the city of Bangalore. which began in January 2006. Radio Mirchi had announced that it was entering the capital market to raise capital of Rs. In February 2006.   .   Its highest bid of Rs.

OWNERSHIP .

ORGANISATIONAL STRUCTURE .

 Technical Manages the equipments necessary for broadcast  Programming Decides the program content.DEPARTMENTS  Administrative department This department maintains. . order of content etc.  Finance Manages the accounts. organises and runs the entire radio station. finance and prepares budget and annual report.

d) Publicity: in terms of corporate social initiative and other campaigns. variety of programmes to promote the company image.outdoors. Marketing & PR includes sales promotion. publicity and public relations. Example-sponsoring events and contests. tie ups etc. Such as print . key ingredients in marketing campaign .They promote their program or any event by organising contests respective to that event. a) Advertising: For advertisement purpose they use different kind of medias. and electronic. b) Sales promotion: Sales promotion. c) Public relation: Public relation involves . advertising. .

. mixing of the songs.   RJ’s Music management The process of production starts by the research for song. Transmission engineers They are responsible for the transmission and relay of programs. . announcement. advertisement etc. Mixed according to the programs etc. jingle. important updates.

20000-60000. 8.500/.per hour. advertising time available for sale is 20-25 minutes.COST ASPECT   A Licensee pays Rs.for the technology. 1.for the music. Thus. 20 advertisements each of 15-30 seconds can be accommodated in an hour. the total revenue generated is Rs. One minute is reserved out of 10 minutes for social awareness advertising. An hour long show thus costs Rs. 20-25 Minutes have been set aside for advertising. Add Rs. In other words. salaries and other expenses. Add Rs. considering the limited range and listenership supposing a 30 seconder costs Rs. Besides the tariff card should be modest.000/. 15. 6000/.     . 1000-Rs 3000 at prime time for 20 such spots.500-20000.

the actual duration of a piece of music. The IPRS is demanding Rs. 100 per hour.(PPL) are supposed to hold all the rights of royalties. so the question of royalties is relevant The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd. They are demanding Rs. The IPRS claims royalty for the original composers and authors of music. at which they are supplying music to AIR). PPL is demanding a royalty of Rs. 250 per hour of needle time.    .ROYALTIES  FM is primarily a music channel. 100 per hour. 1.500 per hour (as against Rs.

>> Ex. When the demand is less the charge is less and when demand is high the charge is more. property dealers for rendering a service. stock brokers. discount is possible and also if the radio station is a client of that company. Ex.if a company books a slot say 2 or 3 months in advance.HOW THE PRICE IS SET  Flexible price: Flexible price is used to reduce the perishability characteristics of services and iron out the fluctuations in demand.day time slot price and prime time slot price are different  Discount price: Discount pricing refers to the practice of offering a commission or Discount to intermediates such as advertising agencies. . It may also be used as a promotional device to Encourage use of low demand time.

For ex-if a prime time slot is booked .  High price maintenance prices: High price maintenance pricing strategy is used when the high prices is associated with the quality of the service. discounts will be available optionally if the company also wants to advertise in low demand slots. Ex. Ex. Diversionary price Diversionary pricing refers to low price which is quoted for a basic service to attract customers.suryan fm-sun tv-newspaper . and hence its prices are higher when compared to others.as of now radio mirchi ranks 1.  Combo price Combo price means booking advertisement in one medium(radio or tv or print) and have options to book advertisement in other branches of that medium.

REVENUE  Panel Unit confirms Radio Mirchi as the leading FM Radio station ahead of Red FM and Radio City. Mirchi has consistently been the leader by far across all the survey results of 2010. India’s number 1 Private FM Radio operator. Radio Mirchi has maintained its leadership position in India. Radio Mirchi leads with a 72 per cent share of the market.1 daily listeners.. lifted by the ICC ODI cricket world cup.      Revenue growth has been buoyant. Radio Mirchi has garnered the top spot in FM radio with a listenership of more than 41 million listeners – nearly double the listenership of the next radio brand. Entertainment Network (India) Ltd.  . popularly known as Radio Mirchi. With 12. As per Indian Readership Survey (IRS) Q4 2010. They are on the cusp of a major expansion in the radio business with the announcement of the Phase III of Private FM radio policy expected soon. Mirchi’s current listenership is bigger than the Average Issue Readership (AIR) readership of the Top 3 newspapers put together.

As per brand reporter October 2009 issue Mirchi was recognized as one of the game changers of the decade in the radio industry. ahead of iconic brands like the times of India and star plus.  .USP OF RADIO MIRCHI  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. 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. Radio Mirchi is the number 1 radio brand in the private FM space.

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A COMPARATIVE STUDY OF SOME RADIO STATIONS •ALL INDIA RADIO CITY •RADIO •RADIO MIRCHI FM •RED/SURYAN .

Chat shows. which is a national service planned.I. and for this it is launching a campaign in select cities  The publicity campaign of AIR is focused on projecting AIR as the world's oldest and largest radio network both in terms of geographical and population reach and the only source for news and entertainment for people in remote places. recommending a suitable positioning for AIR Channels. Hyderabad. New initiatives by AIR •   Radio Advertising AIR. Kolkata and Delhi at different numbers. It will promote and publicize sports events covered by AIR besides popularizing existing services like Radio on Demand and News on Phone. which is on in Patna.ALL INDIA RADIO  A. a marketing plan and publicity plan with suitable media mix.   The entire publicity campaign of AIR is being designed by Prasar Bharati's ad agencies.  Prasar Bharati is set to launch a major campaign aimed at repositioning and total branding of the two FM Channels of All India Radio (AIR). Western Music.Hindi Music. The service. Helplines etc. will also cash in on phone bulletins. Prasar Bharati is positioning AIR FM Rainbow as a channel offering a buffet fare . .R. developed and operated by the Ministry of Information & Broadcasting under the Government of India. will be launched across the country with a four -digit common number. which produces more than 300 bulletins daily. The ad agencies have been asked by the Prasar Bharati to make a strategy presentation.

Bangalore. was launched on 21st May 2002.RADIO CITY  Radio City. Nagpur and Lucknow. Mumbai. The Mumbai license was secured for Rs 10 crores. The company has received the license to set up radio stations across the country in six cities . a venture promoted by Star and Music Broadcast Private Ltd (MBPL). STAR India’s radio division would provide or take charge of advertisement sales. marketing and programming Radio City aims to reach out to listeners across demographic barriers. Delhi.     . family and Associates. MBPL is a company backed by P.Mittal. Patna.K.

so as to enable more targeted programming in the future. Intensive research is being carried out to ascertain demographic profiles of radio listeners. The idea is to create the brand and then to move on to specific target programming. Radio City’s market strategy is backed up by six months of intensive research in Bangalore. and is trying to create a brand name.    . TARGET AUDIENCE  Radio City is not looking at any particular segment to target.

 Place: Intensive all over Bombay also.For corporate and retailers: .    The channel is into sponsoring events especially college festival . This is thanks to its promotions.THE 4 P’S  Product: For listeners . vivacious RJ’s. the channel undertook huge promotion campaign in the initial stages of its launch. On the promotion front.Music. Delhi.Bangalore. teamed up with professional.The airtime. Selective in the sense that it has set up radio stations across the country in six cities . Mumbai. a perfect blend of English and regional music. Hoardings all over the city. The Television “fun ka doze har roz” ad campaign. information. Nagpur and Lucknow. Patna. in mix of Hindi and English . a portfolio of entertainment programming 24 hours a day.  Price: Advertisement rates   Promotion: Radio city is one of the top 3 stations in the city.

IBM and HLL.   . Radio City will have a four-hour slot in its 24-hour broadcast for advertisement. besides advertising. sales and marketing support. breaking to a 10-minute projection in every hour's programmed. from small local stores as well as big brands like Tanishq.  Star India is in-charge of providing the content.Advertising with Radio City  Radio City has managed to attract advertisements. Radio city is trying to drive the market by encouraging the ad spends on radio to increase from two per cent to the world average of 10 per cent.

'it is hot.' They have a very clearly defined position – they are a contemporary hit radio station.RADIO MIRCHI  Target audience As the punch line says. and their Target is around 18 to 35 . .SEC A and B and in that too mainly youth and housewives. This segment addresses about 12 lakh listeners 65.

 Price: The advertisement rates  Promotion: The marketing strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi.THE 4 P’S  Product: For listeners: 90% of the music played on RM is regional and other language contemporary hits are played keeping in mind the tastes of their Target Group airtime  Place: intensive in Mumbai and selective all over the country since it is established in cities like Kolkatta. Delhi. plug Radio Mirchi through the other media that The Times Group owns. and Chennai. It also does a lot of tie -ups and contests for the consumers .

However th e slogan b y itself was in comp lete with ou t th e voices th at accomp an ied it. Mad e sales team to main tain relation with local ad vertiser s Price of Ad s b ased on time. retail sh owrooms. Rad io mirch i h as also tied u p with variou s sh op p in g malls. Lau n ch in g in n ovative p romotion camp aign s. Ad d ition al in come from SMS Rad io mirch i h as two main ob jectives b eh in d d oin g an exten siv e marketin g wh ich are To create th e Top of th e Min d recall in th e relevan t Target Au d ien ce An d Con n ect with th e growin g Rad io listen in g p op u lation in Mu mb ai.I’m h ot an d I’m Rad io Mirch i!!” b ig n ames th at gen erated cu riosity an d excitem en t an d comp elled th e listen er to refrain from flip p in g th e d ial.  . for con tin u ou s ad vertisem en t of th eir ch an n el to make p eop le aware of th e temp tation s given b y th e ch an n els to th em. CE LE BRITIE S an d film stars th at rep eated every so often “h i I’m -------. Ad vertise m en t s Disp lay med ia Tie u p with comp an ies Feed b ack from listen ers (b u ild con su mer in volvemen t) MARKETING STRATEGIES            Sponsored many things. A very large factor th at con trib u ted toward s th e estab lish in g th e b ran d of RADIO MIRCHI was its catch y slogan “it’s h ot”.

So they have package deals for them . Radio Mirchi can provide them with the more information and help them to decide on the time slots and frequency etc…        . stations offer discounts on what is on their rate cards. accordingly.000 and Rs 1. non prime time and the likes. So when the advertisers wants to advertise on radio. Radio Mirchi sells independently and does not offer any print package deal even though they belong to Times Group – they are an independent company. Radio Mirchi listenership extends to 45 lakhs every week as per Radar study. Most of the national advertisers on Radio Mirchi today want to buy all the stations on air(all the cities).000 for a 10 -second slot. the rest of the FM channels charge anything between Rs 1. Hence. IMRB conducts research for Radio Mirchi which is after every 15 days to know exactly what the listeners actually want to lend their ears to. Clients buy effective rates and they buy a combination of spots like prime time. The rates are reasonable that advertisers can afford 10 or 15 spots a day and run the campaign for 15 days or three weeks at a fraction of the cost that you will incur in print or Television. Currently. There is an average listenership of 45 minutes per day on the station. there are 125 to 175 brands advertising on Radio Mirchi. There is very little retail advertising on radio. In most cases.Advertising  Radio Mirchi charges the highest rate of Rs 2. across the five stations. There are about more than 300 advertisers on Mirchi. the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. On an average.500 for a 10 -second slot. on an average. they have implemented the changes in the time slots of the different shows on air.

They are interested in some of the bigger cities and Mirchi would eventually look at having a presence in every nook and corner of this country.        .63 lacs. 1 channel and delivers high numbers with Daily listenership at 24. which means going into the smaller towns. Future Plans:Radio Mirchi is looking radio Industry from the long term point of view. Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population.  According to the study conducted:Mirchi delivers highest number in terms of listenership among Housewives and working men. Radio Mirchi emerges up as the No.

2009. Starting August 14. India’s largest network has power packed 32 TV channels and 45 fm radio stations. Their punch line is 'Bajaate Raho' (Keep Playing).    . 2009 and re-branded all its stations to Red FM except for the ones in Tamil Nadu. S FM or Suryan FM was re-branded into RED FM across 38 cities in INDIA. S FM took over Red FM in August. It was acquired from India Today promoter Living Media in January 2006.RED/SURYAN FM  It is owned by Sun TV network.

weather. housewives.   The 4 P’s Product: For listeners: The programming mix has non-stop music interspersed with Red FM’s‘crisp’ and ‘entertaining’ updates on traffic. For corporate and retailers: the airtime  Place: Intensive in Mumbai and Chennai and selective all over the country  Price: advertisement rates  Promotion: Red Fm is associated with many production houses(films) . city-specific events and the latest buzz on everything current.5 Red FM caters to 25-plus age group and also youth. Target Audience 93.

Red FM aims to be as interactive and as local as possible • • . the other being emotional element Advertisement the clients are more enthusiastic because the FM station is present across the country. Tie ups. the Red FM ad revenues are evenly split between both national and retail advertising. • • •  • Marketing initiatives Promotions through various electronic mediums. Going forward. While Red FM is said to be very strong among retail advertisers in terms of revenue generation. launch campaigns and sponsors Two key elements-contemporary music around the clock. and also the fact that the FM station is able to deliver a certain quality and content that a listener or even an advertiser expects.

RATE CARD .

30 secs spot buy rates  30 secs spot buy rates RADIO MIRCHI Programme category 07:00 .20:00 Radio active Mumbai 8000 Delhi 8000 Banglore 5000 Lucknow 4000 11:00 .17:00 20:00 .11:00 17:00 .22:00 Radio Mix 6000 6000 4500 3000 22:00 .00:00 Round the clock Radio Master Blaster Radio Ga Ga 6000 4000 6000 4000 4000 2500 3000 2000 .

the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category. release orders should be given to MBPL through Star India Pvt. All bookings are subject to availability at the time of booking. The agency/advertiser must provide DATS at least fifteen days prior to first spot airing date.  To ensure proper and timely release of the spots. Ltd. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme. which is being offered in this package. All invoices should be settled by the advertisers/agency within 30 days from the date of the receipt of invoice    . gets discontinued.TERMS AND CONDITIONS:  Minimum acceptable radio spot/ commercial duration will be 10 seconds. At least 2 weeks prior to the date of airing of the first spot. In case any programme.

professionalism. Apart from offering the available advertisement time in the most effective way. With it's team of dedicated professionals. it is today one of the highly appreciated professional marketing unit among satellite televisions.    .SURYAN FM  The marketing department is wholly responsible for the advertisement sales of the in-house productions of the Sun TV Network Limited channels. efficiency and dedicated service. that are made. are mutually beneficial and uniform. It functions with the motto . The deals. it offers the best follow up service.

Starting Time Ending Time RODP rates Rate 07:00am 11:00am 600 Denotes 10 sec Rate 11:00am 17:00pm 350 Denotes 10 sec Rate 17:00pm 22:00pm 600 Denotes 10 sec Rate 22:00pm 07:00am 350 Denotes 10 sec Rate .

PUNE RED FM  Starting Time 07:00 am Ending Time RODP rates Rate 11:00 am 750 Denotes 10 sec Rate 11:00 am 05:00 pm 10:00 pm 450 750 Denotes 10 sec Rate Denotes 10 sec Rate 05:00 pm 10:00 pm 07:00 am 450 Denotes 10 sec Rate .

g. Minimum jingle length  The minimum jingle duration will be considered as 10 sec. jingle length would be counted in multiples of 5 seconds. A 23 second jingle would be billed as 25 seconds .  Over 10 seconds. E. 6-8 pm—15-20 % hike in slot.RADIO MIRCHI  Prime time -8-10am.

6-8 Jallandhar Japiur Kanpur Lucknow Varanasi 150 200 200 200 130 pm—15-20 % hike in slot.( R AT E P E R 5 S E C S ) Region City Delhi North Rate 1500 Split 7am to 12noon 12noon to 5pm 5pm to 11 pm Prime time -8-10am. Region City Central Rate Bhopal Indore Jabalpur 175 200 150 Raipur Gwalior 150 200 Region City Kolkata Guwhati Patna East Rate 500 150 400 Region West .

Pune Kolahpur Nasik Aurangabad 650 150 200 150 Nagpur Panaji Ahmedabad Surat Vadodra Rajkot 200 150 550 150 150 150 Region City Bangalore Mangalore Hyderabad Vijyawada South Rate 700 150 550 150 Vishakhapatnam Chennai Coimbatore 150 600 200 .

RADIO ONE .

1.500/- .14:00 14:00-17:00 17:00-21:00 21:00-24:00   Rs.500 3. 10/secs 2.CHENNAI LIVE FIXED TIME BAND 06:00-08:00 08:00-11:00 11:00.24:00: Rs.24:00: Rs. 2.500 2.500 Total Audience Plan (TAP) Monday-Sunday 06:00 .500 3.500 2.500 2.500/-   Best Time Available (BTA) Monday-Sunday 00:00 .

24:00: Rs. 2.500 3.FIXED TIME BAND Rs. 1.24:00: Rs.500 .500/- 2.500 2. 10/secs 06:00-08:00 08:00-11:00 11:00.14:00 14:00-17:00 17:00-21:00 21:00-24:00 CHENNAI LIVE RATE CARD Total Audience Plan (TAP) Monday-Sunday 06:00 .500 2.500 2.500/Best Time Available (BTA) Monday-Sunday 00:00 .500 3.

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