Radio Mirchi 98 (1) .3 FM Its Hot

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The key takeaways are about the growth of the Indian economy and advertising industry, and the segmentation of advertising spends across different media.

The key factors that have contributed to the growth of the Indian advertising industry include rapid economic growth, increase in consumer prosperity, entry of global consumer companies, and higher competitive intensity among companies.

Radio broadcasting in India began in 1935 and was initially government controlled. It has since seen phases of privatization and the entry of private radio broadcasters. The number of players has increased significantly over time.

A

PROJECT REPORT
ON
Strategy of
Radio Mirchi as compared
to other radio channels
In the
Strategic management

 SUBMITTED TO :
Pr
of.Praneti Shah
 SUBMITTED BY:

Viral Roy 8086


Neelima K. 8043
Bhavin Jadav 8038
Raj Shah
Mamta Popat 8079
Radio Industry

India has been among the fastest growing economies in the world,
with a nominal GDP CAGR of 9.94% over the last 10 years (1995-
2005). The nominal GDP for fiscal 2005 was Rs. 30,636 billion.
According to CSO estimates, nominal GDP growth for fiscal 2006 is
estimated at 10.9%. There is a correlation between the economic
growth rates of a country i.e. the nominal GDP growth rate, and
growth rates of the advertising industry.

The key factors which have contributed to growth of the Indian


advertising industry include:

 Rapid economic growth of the country on the back of economic


liberalization and deregulation

 Increase in consumer prosperity

 Entry of global consumer companies with large advertising


budgets

 Higher degree of competitive intensity among consumer


companies

 Growth in media vehicles leading to increase in media


penetration.

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Segmentation of Advertising Spends

The five key industry segments comprise print, television, radio,


cinema, and outdoor. These different segments within the industry
are at varying stages of growth and corporatization.

Year Print TV Radio Cinem Outdoo Internet


a r
2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3%
2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4%
2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4%
2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4%
2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3%

Source: Central Statistical Organization, India, Advertising


Expenditure Forecasts, October 2004 by ZenithOptimedia

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The Indian television industry has grown rapidly, especially since
1991, which saw the beginning of satellite broadcasting in India.
This growth was also aided by the economic liberalization program
of the Government. The growth of the satellite television audience

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saw proliferation of a number of satellite television channels
offering more choices to media buyers and consumers of
entertainment. Thus, the television broadcasting business, which
started off as a single government controlled television channel,
now has over 300 channels covering the Indian footprint, resulting
in growing ad spends on this medium. Reforms and proliferation of
private players were the key reasons for this rapid growth of the
share of television in the advertising industry.

Similarly, sectoral reforms and increased number of players could


drive market expansion for emerging media segments including
radio, outdoor, cinema and internet.

INDIAN RADIO INDUSTRY

Brief History of Radio Broadcasting in India

1935 Radio broadcast begins with AIR.


1977 First FM service in Madras.
1993 AIR sells time slots for private FM radio
broadcasting in five cities.
1999 Privatization of FM - Phase I Policy.
2001 Licenses given to private radio broadcasters.
2005 Announcement of Phase II Policy of
privatization of FM.

Privatization of FM Radio in India

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Internationally, FM radio broadcasting is the preferred mode of
radio transmission due to its high quality stereophonic sound.

In March 2000, the Government invited private sector into FM


radio broadcasting by opening up the frequencies in the FM band
(87.5-108 MHz). In this Phase I Policy of FM radio privatization,
private operators were invited to bid for a 10-year license to set-
up and operate FM radio stations. The original plan was to set-up
108 FM radio frequencies across 40 cities. 101 bids were received,
aggregating to a license fee of approximately Rs.4.25 billion.
[Source: FICCI Ernst & Young Report, 2004]. The unusually high
license fee structure and year-on-year annual escalations of 15%
hampered the FM radio growth.

The Government's Tenth Plan stipulates that private operations


are to be encouraged to provide FM radio services in metros and
small cities. They recently announced Phase II of the privatization
of FM radio, which is an initiative in line with the roadmap laid out
in the Tenth Plan. A total of 338 channels in 91 cities across the
country would be made available for bidding by Indian private
companies.

Industry Size

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The Indian government has already given 338 licenses for FM
radio channels in 91 big and small towns and cities. The current
size of the radio market is India is Rs 300 crores and is expected
to achieve the highest growth rate of 32 per cent in coming years.
The quality of the sound and the music has improved significantly
with the emergence and use of satellite radio. The audience
profile has also shifted to the high-income group. Local
advertising, lower amount of money spent by the companies to
advertise on radio is an added attractiveness for the players. All
India Radio (AIR) - the national service provider owned and
operated by the Ministry of Information and Broadcasting under
the Government of India - is the largest player in the industry.

Source: Advertising Expenditure Forecasts, October 2004 by


ZenithOptimedia

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The share of Indian radio in the overall advertising pie at ~3% is
much lower than various developed and developing economies
worldwide.

Source: Advertising Expenditure Forecasts, October 2004 by


ZenithOptimedia

Globally, the share of radio in the advertising pie is around 5% in


countries where the medium is still in a growth phase and around
10-12% of the advertising pie when the medium reaches a mature
phase.

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Key Players

Player No. of Cities of operations


(Brand Stations
Name)
Radio 7 Delhi. Mumbai, Chennai,
Mirchi Kolkata, Indore,
Ahmedabad, Pune
Radio City 4 Mumbai, Delhi, Bangalore,
Lucknow
Suryan FM 3 Chennai, Coimbatore,
Tirunelvelli
Red FM 3 Mumbai, Delhi, Kolkata
Go FM 1 Mumbai
Visakha 1 Visakhapatnam
Aamar FM 1 Kolkata
Power FM 1 Kolkata

Source: TRAI data

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Radio Mirchi

Radio Mirchi is a nationwide network of private FM radio stations


in India. It is owned by the Entertainment Network India Ltd
(ENIL), which is one of the subsidiaries of The Times Group.

"Mirchi" is Hindi for chili. The tagline of Radio Mirchi is "It's hot!".

The original avatar of Radio Mirchi was Times FM. Radio Mirchi
began operations in 1993 in Indore. Until 1993, All India Radio or
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
in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa 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.

First round of licenses

In 2000, the government announced the auction of 108 FM


frequencies across India. ENIL won the largest number of
frequencies, and thus started its operations under the brand name
Radio Mirchi.

Second round of licenses

In January 2006, Radio Mirchi bagged 25 frequencies in the


second wave of licences that were issued by the Government of
India. This pushes the Radio Mirchi presence in 32 centers. In the
first wave of launches, Indore was the first city in India having
grade of first private radio channel.Times decided to start radio
channel to address the mass audience as advertisers can be
attracted by showing a low cost per thousand.

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Respondents
their percept
Grow ing steadily 15
Areas of operation

Currently, Radio Mirchi has a presence in more than 33 cities,


including the 6 metros of India and Radio Mirchi is the costliest
station in India as they charge more than double of the
competition.Radio Mirchi believes premiumness can be achieved
by charging more from the clients. :

• 98.3 FM - Ahmedabad Tagline "Radio Mirchi - It's hot"..


• 98.3 FM - Aurangabad, Maharashtra Tagline "Mirchi Sunne
Wale Always Khush" Started On 23 July 2007.
• 98.3 FM - Bangalore It uses the tagline "Sakkath hot maga!"
in Bangalore.
• 98.3 FM - Bhopal Tagline "Radio Mirchi - It's Hot"
• 98.3 FM - Chennai It uses the tagline "Idhu semmma hot
machchi!" in Chennai.
• 98.3 FM - Coimbatore Service started on November 2007
"Idhu semmma hot machchi!"
• 98.3 FM - Delhi "Its Hot"
• 98.3 FM - Jaipur "Its Hot"
• 98.3 FM - Mumbai "Its Hot"
• 98.3 FM - Gwalior It user the tagline "Gwalior Jhoome"
• 98.3 FM - Hyderabad It uses the tagline "Idi chaala hot guru!"
in Hyderabad.
• 98.3 FM - Indore, Tagline "Radio Mirchi - It's hot..".
• 98.3 FM - Jabalpur, It uses the tagline "Radio Mirchi - It's Hot"
• 98.3 FM - Kanpur - Tagline - "Mirchis sunnewale always
khush" and "Radio Mirchi,it's hot"
• 98.3 FM - Kolhapur Tagline -" Radio Mirchi - It's Hot "
• 98.3 FM - Kolkata It uses the tagline "Michi shone j always
khushi thake se."
• 98.3 FM - Nasik - It uses the tagline "Mirchi Sunne wale
Always Khush" &"Garam Ahe!" On AIR since 6 July 2007

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• 98.3 FM - Pune Tagline - "Radio Mirchi - It's Hot" / Radio
Mirchi - Tikhat Aahe!
• 98.3 FM - Patna Tagline - "Radio Mirchi - It's Hot" /It is first
station of second phase.
• 98.3 FM - Jalandhar Tagline - "Mirchi Sunne Wale Always
Khush" & "It's Hot".
• 98.3 FM - Goa Tagline - "Radio Mirchi - It's Hot"
• 98.3 FM - Ujjain Tagline "Its Hot"
• 98.3 FM - Vadodara Tagline - "Mirchi Sunne Wale Always
Khush" & "It's Hot".
• 98.3 FM - Rajkot Tagline "Radio Mirchi - It's Hot"
• 98.3 FM - Raipur
• 98.3 FM - Varanasi - Services Started on 14 July 2007
• 98.3 FM - Lucknow - Services started on 14 August 2007
• 98.3 FM - Surat - Service started on 20 August 2007
• 98.3 FM - Nagpur - Service started on 18 October 2007.
Tagline- same as above
• 98.3 FM - Madurai - Service started on September 2007.It's
tagline is "Idhu semmma hot machchi !" (meaning 'It's too
hot'
• 98.3 FM - Mangalore - Service started on November 2007
• 98.3 FM - Vijayawada - Service started on December 2007
Tagline "idi chaala hot guru!"
• 98.3 FM - Vizag - Service started on October 2007 Tagline "idi
chaala hot guru!"
• 98.3 FM - Thiruvananthapuram- Service started on 28
January 2008 [1] Tagline: "Sangathi HOT aanu!"

It reaches out to almost 52% of FM radio listeners in Delhi 44% in


Mumbai,40% in Indore,35% in Jaipur,30% in Bhopal, 20% Chennai,

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17% in Kolkata, 15% in Nagpur,10% in Bangalore and 02% in
Raipur. Radio Mirchi has started providing Visual Radio to its
subscribers in Delhi from 25 July, 2006 onwards and in Mumbai
from September 2006. It also has started its Visual Radio service
from Kolkata recently.

RadioMirchi,
TimesBusinessSoluti
BCGM
As per the Radio Audience Measurement Reports (RAM), Radio
Mirchi has been dominating in Delhi & is the leader in Mumbai and
Kolkata. However in Kolkata they are not clear leaders in SEC ABC
segments. The SEC ABC segments were earlier dominated by Big
FM & now by Friends FM. However in the SEC D & E segments
Radio Mirchi has total domination.

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Competitive Strengths

FM Radio Broadcasting Business

 Largest operating network and reach among listeners


They have the largest operating network among private FM radio
broadcasters based on our operational stations in the four
metropolitan cities and six other cities. We also have the highest
listnership among private FM radio broadcasters in India. We
believe that our industry-leading operating network and listener
reach enable us to offer an attractive advertising platform to our
advertisers.

 Track record of developing innovative and creative


content
They have a track record of developing creative and innovative
content and programming formats, which has helped us expand
our base of listeners and advertisers. We believe that we have
developed good relationships with the film industry in India,
including the Hindi, Bengali and Tamil film industries, and have
successfully developed unique programmes and shows with the
participation of film industry artists. Further, in the recent past,
Radio Mirchi has been among the first private FM radio networks
in India to release the sound recordings for popular Hindi films.
We also secured exclusive FM broadcasting rights of the music of
these films for up to two weeks after the initial release of the
music. We have also developed various on-air fictional 'characters'
such as Professor Kawas and Go Go Ganguli that have become
popular with certain sections of our listeners and has helped in
attracting and retaining listeners.

 Proven ability to successfully operate in diverse


markets

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Our FM radio stations are located in diverse regions in India and
we have been successful in attracting local listeners in each of
these markets. Our superior understanding of audience
preferences enables us to provide content that is customized to
the taste, language and culture of the local audience. We intend
to leverage this expertise to attract new listeners as we expand
our footprint to more cities and towns in India.

Radio Mirchi brand is widely recognized


We have focused on investing in and developing the Radio Mirchi
brand, which is widely recognized in its markets. As per ILT Wave
5, Radio Mirchi brand had awareness of 95% in Mumbai and 100%
in Delhi. We advertise and promote the brand through various
media platforms including print, television, cinema and out-of-
home media. Our on-ground events and on-air promotions have
also helped enhance the recognition of Radio Mirchi brand. For
example, our on-air promotion '983 - Kismat Khol De' in Delhi won
the gold medal for "Best Activity Generating Brand Loyalty" at the
2004 Promotion Marketing Awards of Asia. We also organize
annual events such as the Mirchi Kaan awards, where the jury
includes pre-eminent advertising agency professionals, and a
workshop series called RadioWorks, where we invite noted
international speakers. These events help in building the FM radio
industry as well as promoting the Radio Mirchi brand.

 Strong advertisement sales capabilities


Based on Aircheck data we have attracted 773 advertisers in the
four metropolitan cities during the period from October 1, 2004 to
September 30, 2005 which is the highest amongst all private FM
radio broadcasters. Our sales team has established strong
relationships with advertisers and advertising agencies. We focus
on understanding the needs of our advertisers and advertising
agencies to offer customized advertising packages and marketing
opportunities. Our sales team works independently of the
advertising sales efforts of other entities in the Times Group. We
follow several innovative advertising sales practices such as per-

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second billing, providing services for production of advertisements
at nominal cost and offering our studio space for pre-production
work, which have helped strengthen our relationships with
advertisers and advertising agencies.

 High quality studio and transmission equipment


For our studio and transmission facilities, we have invested in high
quality equipment. Most of our key equipment, such as
transmitters, mixers and codecs, has been sourced from suppliers
based in United States and Canada. We believe that our
investment in technology helps increase the quality of broadcast
and coverage in each of our local markets.

Total Radio Stations after phase II rollout

Player Total Of the top 13 towns


Station (A + and A
s Category)
Adlabs 44 8
South Asia/Kal Radio 40 9
ENIL 32 13
Radio City 20 11
Dainik Bhaskar 17 4
Bag Films 10 0
Zee/Century 8 0
Thanthi/Today/Midday 7 1/3/7
HT/Positive/Raj Pat 4 40/1
Red FM 3 3

Strategy

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FM Radio Broadcasting Business

 Expand our footprint


Under the Phase II Policy, We are successful in winning 25 of the
radio channels that we bid for, we will expand our footprint and
cover additional markets and regions in India. We also intend to
explore opportunities to become FM radio broadcasters or content
providers in international markets, either directly or through
strategic partnerships, arrangements, joint ventures or
acquisitions.

 Leverage our footprint to capture additional income


We intend to leverage our footprint of seven operational stations
and any other station that we acquire in future to enhance our
audience base and income. Any expansion of our footprint would
allow us to target a greater number of potential advertisers in new
markets. Further, any increase in our listenership reach would
allow advertisers to address a larger audience.

 Continuously invest in brand building and programming


innovation
We intend to maintain and enhance the leadership position of our
radio stations through continuous innovation, focused marketing,
intensive brand building and exploiting the interactive nature of
FM radio. We plan to engage current and potential listeners
through on-air as well as off-air activities. We intend to increase
our use of research generated internally as well as provided by
external agencies to continuously monitor the evolving needs of
our audience and advertisers.

 Exploit additional revenue streams


In addition to our income from airtime sales on our FM radio
channels, we intend to focus on creating or expanding additional

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revenue streams. We have already launched Mirchi Activation
events which are promoted through our radio channels and enable
us to enhance our revenue from airtime sales as well as attract
new advertisers. Additional income streams may also include
revenue from SMSs or calls received from our listeners, or from
the sale or licensing of content to third parties, whether in India or
in international markets. We have also recently provided
consultancy services to an industrial group in Bangladesh for
setting up radio stations. We have also entered into an agreement
with Hewlett-Packard India Sales Private Limited ("HP") to launch
visual radio services for the first time in India. With visual radio,
images and texts are synchronized with the radio broadcast to
bring information and interactivity directly to a mobile phone. As
part of this agreement we have an exclusivity period which will
give us the first mover advantage. Visual radio services also
provide an additional advertising opportunity to our clients. These
services also provide us with additional advertising revenues from
our clients as well as digital service revenues from the
telecommunications sector that HP shares with us.

Growth Drivers

Network Expansion
After implementation of Phase II Policy of FM radio privatization,

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private sector FM radio is likely to be available in many more cities
and will enable advertisers to reach out to a larger consumer
base, using radio as a medium. This could result in radio getting a
larger share of the advertising spends.

Availability of Listenership Data


As radio expands, the availability of organized research providing
segmented data on audience listenership is likely to increase
advertisers' comfort with the medium.

Rationalization of License Fees


The shift from a fixed license fee to the revenue share model in
Phase II Policy of private FM broadcasting is expected to result in
more viable radio business models and thus drive growth for the
FM radio broadcasting industry.

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Local Advertising
Globally, the local retail segment constitutes a large part of radio's
advertising income. As per the CII-KPMG report, while local
advertising contributes 70% of radio revenues in the United States
of America, in India, the share of local advertising is only about
8% of radio revenues. Ideally, a localized medium like radio can
be effectively used for local-level promotions and region-specific
advertising campaigns, apart from being bundled as part of cross-
media promotion strategies. This would make the medium more
attractive for a large number of local advertisers, rather than
being dependent on a concentrated set of national advertisers.

Other Opportunities

New opportunities in the radio business may arise from


technological changes and other regulatory changes.

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Satellite Radio / Digital Audio Broadcast ("DAB")
Satellite radio is a radio service that provides radio signals directly
from satellites. DAB provides digital radio through a terrestrial
broadcast format. Satellite radio subscribers are also able to
receive upto 100 radio channels featuring high quality music,
news, weather, sports, talk radio. Currently, World Space India
Private Limited is the only player of Satellite radio in India,
providing about 40 radio channels. As Satellite radio becomes
routinely available in automobiles, subscribes can grow. Satellite
radio is now tapping into equipment players also. DVD players and
sound equipment manufacturers may install Satellite radio
technology. Satellite radio is primarily subscription driven and the
costs of access equipment are large at present.

Internet Radio
As internet connections have become faster and software for
cyberspace has become more sophisticated, audio listeners have
benefited. Free, downloadable audio players for computers have
made listening to audio via the computer possible. Traditional
over-the-air radio stations have begun to take advantage of the
new software, as well as the internet's ability to deliver graphics,
data and video at the same time, to enhance their audiences'
listening experience. The internet has also extended the reach of
radio stations beyond their own markets, which was determined
by the strength of their broadcast signals, to the entire world.

New Opportunities through Regulatory Changes


These could include privatization of AM, expansion of FM beyond
the 338 stations envisaged in Phase II Policy, multiple frequencies
for same player in one city as well as opportunities in International
markets.

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ENVIRONMENTAL ANALYSIS

I. EXTERNAL ENVIRONMENT

PEST ANALYSIS

POLITICAL

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 To enter in the industry, high one time entry fee has to be
given
 There is no FDI allowed in this sector
 Up to 15 % annual hike In licensee fee
 Only 10 year of license is valid.

ECONOMIC
 RJ’s mainly attracted by package that has been offered to
them by competitors.

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

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.
 Modern equipment and highly technical transmitters are
used
 Visually appealing materials are also associated

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II. COMPETITIVE ENVIRONMENT

Radio Mirchi’s high end competitor – FEVER 104 FM- was


evaluated on several key factors, such as type of music they both
play, promotional activities, product offering and overall presence
in the competitive arena.
Radio Mirchi is facing a high competition from FEVER 104FM.
Fever 104 is just 2yr Old and it is already creating greater threat
for other music stations including Radio Mirchi.
Fever 104 is a brand owned by Hindustan Times Group. Basically
it is handled by HT Music and Virgin Radio. 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.
But the competition from other music stations is quite low.
Secondly, the advertisers and other brands that associated with
Radio Mirchi are loyal to them. Plus, Almost 53 per cent of daily
listeners of Radio Mirchi choose not to tune in to any other radio
station. That makes the market environment attractive for Radio
Mirchi.

III. INTERNAL ENVIRONMENT

SWOT ANALYSIS

STRENGTHS
 Radio Mirchi known for giving superior quality music and
benefits to their customers.
 It delivers the best combination of innovative content and
interesting initiatives.
 Serve each and every section of public starting from the
children to 70+ aged.
 According to the latest listenership figures released by IMRB
International's Media & Panel Unit, confirms Radio Mirchi as
the leading FM Radio station ahead of Red FM and Radio City.

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With 12.1 laky daily listeners, Radio Mirchi leads with a 72
per cent share of the market.
 MRB 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.
 The research reveals that Radio Mirchi enjoys the highest
"loyalty" among its listeners.
 Radio Mirchi has partnered with VIBGYOR 2008 (college fest
of International School of Business and Media).
 Also with BLITZKRIEG 2008 (ICFAI Business School), COBWEB
2008 (college fest of LHMC) and SPANDAN 2008 (college fest
of Vivekananda College).
 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 won awards for its successful brand building.
 the '983 - Kismat Khol De' Contest won the Gold medal for
Best Activity generating Brand Loyalty at the Promotion
Marketing Awards of Asia – 2004.
 Bronze medal for Best Activity generating Brand Awareness
and Trial recruitment at the Promotion Marketing Awards of
Asia – 2004.
WEAKNESS
 Listeners’ faces major distraction from advertisements aired
in between the show.
 Long waiting queues to connect with them by calling.
 Radio jockeys had no long lasting career.

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STRENGTHS
OPPORTUNITY
 Future plans include exploring opportunities to become FM
radio broadcasters or content providers in international
markets at an appropriate time, either directly or through
strategic partnerships or inorganic initiatives.
 Great opportunity in the field of generating their own news
show on air.
 Field of internet radio

THREATS
Best combinati
 Still facing threat from AIR FM and FM Gold. Both are take
care by government bodies.

content and intere


 High threat from all private music station, specifically from
Fever 104FM, 93.5Red FM, 91.1 Radio city.
 Recent threat is Meow 104.8FM, which is completely women

Serves all age g


oriented music station.

Widely recogni 15
MARKETING STRATEGY
TARGET CUSTOMER PROFILE

The Radio Mirchi target market was defined using interesting


factors such as lifestyle, attitudes, occasions rather than
demographic information alone. Although the customer
description generally fall within the demographic that have been
identified, this approach will provide an increased understanding
of what motivates the listener and can be used to focus target
marketing and positioning efforts more precisely.

Radio is the source of entertainment for every individual of any


age group whether it is children, youngsters, housewives or aged
people. Radio satisfy different needs of the people such as
entertainment( which is the most important one), Bollywood
Gossips, Recipe of different types of food, Child care tips,
relationship problems, career guidance, Beauty Secrets, etc. ENIL
has developed good relationships with the film industry in India
helping it to have innovative and creative content.
This helps Radio Mirchi to secure exclusive FM broadcasting rights
of the music of leading films for up to two weeks after the initial
release of the music. In spite of being present in diverse regions of
India, ENIL has been able to attract listeners everywhere and be
the market leader as it has been able to customize its content to
17 local tastes. Radio Mirchi takes care of all these needs in the
best way by broadcasting shows keeping in mind the customer
needs and their free time(so that they can listen their favorite
shows at free time). On this basis, Radio Mirchi segmented their
customer (time slots they get free) and targeted them in such a
way that no other FM Station could change the bit of positioning
done by it.

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MARKETING MIX

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 person in the form of mobile)

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, go go ganguli,Mr. hot crack
pot,Ding-Dong)

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• Jingles and promos
• Sponsored events in schools and colleges
• Mirchi job fest
• Mirchi activation team
• Radio workz

PRODUCT

• High quality studio and transmission equipment


• Mass audience
• Multilinguistic programs
• Customization
• Emphasis on culture

PLACE AND TIME

• Broadcasting
(Ahmedabad,Mumbai,Banglore,Chennai,Indore,Kolkata,Luckn
ow etc.)
• 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)

PHYSICAL ENVIORNMENT

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• 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

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