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-: CAPSTONE EXERCISE :-

A STUDY OF RADIO MIRCHI’S FUTURE GROWTH

FINAL REPORT

SUBMITTED TO

Dr. V.S. Pai

SUBMITTED BY

Group 8

Alkama Raj (06)


Amit Kumar Gupta (08)
Mohd. Imran (41)
Shashank Kulshrestha (59)

FACULTY GUIDE

Prof. S. Anant Ram

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES


2008-2010
TABLE OF CONTENTS
Page No.

1. Abstract 2

2. Methodology 3

3. Current Position and Corporate Objective 4

4. Customer Environment 6

5. Service Marketing Mix 11

6. Suggestions & Integrated Solutions 15

7. References 27

8. Appendices 28

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ABSTRACT

As Radio Mirchi is a leader in the Radio Industry so now our main aim is to sustain this leadership

position. For this we need to focus on the market share and which is derived from the loyalty of the

listeners. This can be done to firstly retaining the existing customer and making them more loyal

towards the brand i.e. the defensive strategy and then adopting a pro-active activity by attracting new

customers and also doing things which will be helpful in increasing revenues for the company.

Before suggesting anything we have done a detailed analysis of Radio Mirchi and as it is a providing a

service, so we have told about the service mix is provided by Radio Mirchi by identifying all the 8 Ps

of Services for Radio Mirchi. We have also done a detailed analysis of the customer environment and

done the segmenting, targeting and positing of the channel.

We also met some managers and station heads of Radio Mirchi during our Mumbai Placement Week

and discussed the identified problems and how they can be solved, then they suggested that it requires

some primary research, which we have done through Questionnaires to gather information from

listeners and tried to understand their consumer behaviour, and how listeners see the problems, which

helped us in formulating strategies for Radio Mirchi for solving the existing problems.

Finally, after doing all these detailed analysis we have given some integrated solutions aligned to our

objectives which are specific to the company and which will not only be able to retain the current

leadership position of the company but also help them to generate revenues for the company. We have

also promised the company to provide them with our Final Report containing the suggestions given by

us, which can be used by the company to overcome these problems and can give them direction for

making their future plans.

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METHODOLOGY
Our study contains both primary as well as secondary data.

SOURCES OF PRIMARY DATA

We conducted a longitudinal study. We designed structured Questionnaires to gather information from


listeners of radio from Age groups of 21 to 28, and tried to understand their consumer behaviour,
which helped us in formulating strategies for Radio Mirchi. We collected primary data by mailing
questionnaires to the youth between the age group of 21 to 28.
We also conducted several depth and focus group interviews for several managers from Radio Mirchi
in Mumbai, when we were there for our Mumbai Placement Week.

SOURCES OF SECONDARY DATA


• Newsletter from Madison Media
• An Advertisers Guide To Better Radio Advertising by Andrew Ingram and Mark Barber
• TAM MEDIA RESEARCH
• INDIA RADIO FORUM 2008
• HINDU BUSINESS LINE
• BUSINESS WORLD
• Advertising and Promotion by George.E.Belch & Michael A. Belch
• http://www.radiomirchi.com
• www.enil.co.in - Radio Mirchi Corporate Site
• www.exchange4media.com

OBJECTIVE OF THE PRIMARY RESEARCH –


The study was undertaken to ascertain the Radio listenership habits among the youth between the age
group of 21 – 28.

SAMPLING SIZE
Our sampling size was 70 respondents consisting of 35 Male and 35 Female between the age group of
21-28. Our sampling size mostly consisted of Management students of Mumbai, Bangalore and
Hyderabad.

QUESTIONNAIRES
The Questionnaires we distributed to the sampling size to gather information about the Radio
listenership habits among the youth were structured Questionnaires. The Questionnaires we distributed
contained Dichotomous questions, Multiple choice questions and completely unstructured questions.

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I. CURRENT POSITION & CORPORATE OBJECTIVE

GE MATRIX

INDUSTRY ATTRACTIVENESS WEIGHT RANK PRODUCT


Market Size .3 8 2.4
Growth rate .25 7 1.75
Profit Margin .05 6 0.15
Technology and capital .2 7 1.4
Social Impact .2 8 1.6
TOTAL 1 Out of 10 7.3

BUSINESS STRENGTH WEIGHT RANK PRODUCT


Market Size .4 9 3.6
Core Competency .3 8 2.4
Technology ability .2 7 1.4
Ability to match service .1 7 .7
TOTAL 1 Out of 10 8.1

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 Radio Mirchi, ENIL’s flagship brand is India’s most heard FM Radio channel and is the
market leader with around 48% market share, which it has been maintaining for the last three
years.

 Radio Mirchi presently owns license for 32 radio stations that includes the top 13 A/A+ cities
(accounting for over 40% of the radio industry revenues, which stands at Rs. 7 billion).

 Radio Mirchi is the only company to complete the national network rollout of all 22 stations
bided in Phase 2 of licensing.

 It continues to be the market leader in cities like Delhi, Bangalore, Calcutta and Mumbai.

 While ENIL has benefited from its first mover advantage and superior brand value in the
industry, it is continuously innovating itself (through steps like mobile radio) to remain ahead
of the competition.

 ENIL’s radio division is expected to clock a revenue CAGR of 38% over FY 08-10.The 10
legacy stations are expected to see a pricing led growth, whereas the 22 new station would
grow, backed by increasing utilisation.

CORPORATE OBJECTIVE :-

On the basis of GE Matrix, Radio Mirchi proved to be a leader in Radio industry. Also many
researches and the figures above also shows that it is a confirm leader. Therefore, now Radio Mirchi
has the goal to sustain the position of a LEADER in the market, in terms of Annual growth, Market
share, competition and customer satisfaction. Since it is a Brand, so give 100 percent to their existing
products to maintain its quality and power.

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II. CUSTOMER ENVIRONMENT

1) SEGMENTATION:

A. Geo-graphic segmentation:

⇒ Radio mirchi do not use this type of segmentation. They have adopted corporate strategies. They do
not broadcasts any kind of regionals song.e.g. in Gujarat they do not play Gujarati songs.

B. Demo graphic segmentation:

⇒ This market shows the greatest potential, as AGE factor dominant other factor in Radio Industry.
Secondly, GENDER factor.
⇒ Radio Mirchi use this kind of strategies. They are having gender base segmentation, age group
base, etc.

C. BEHAVIOURAL SEGMENTATION:

a. Occasion:

⇒ All the program they design to meet the occasion. In the NAVRATRI they play Ras Garba at the
sponcered party plots. In the UUTRAYAN also they are coming to the our terrace to fly kites and
give the helpline number for save the birds.

b. Benefits:

⇒ Radio mirchi people they are plying all the melody as well as new, hot, and the rocking songs.
They often plays sad or emotional songs. That’s why “MIRCHI SUNNE WALE ALWAYS
KHUSH”

c. User’s status:

⇒ Market can be segmented in to non-users, ex-users, potential users, first time users and a regular
user of the product. Radio mirchi have a different scheme to convert first user or non user in to the
potential users. And potential user to the regular user. They are giving the different gift vouchers,
gifts, couple tickets, hapta vasul etc.. . so the consumer or the listeners are attract and listen the
radio mirchi.

d. User rate:

⇒ Market can be segmented in to Light, Medium and heavy users. How much time period listener are

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listening mirchi so they have adopted the strategy to convert light users in to medium users and
medium user to heavy users. First of listener have to listen the programme carefully then give
answer bay call or SMS. The person is attracted from gift vouchers, gifts, movie tickets, restaurant
discount coupans.

e. Buyers readiness level:

⇒ Consumers are aware about the programme by giving advertising in the news papers, hording,
promotion. They are coming out cricket updates, traffic beats, stock market updates.

f. Loyalty status:

⇒ Buyers can be divide in to the 4 groups according to the loyalty status.


Hardcore loyal
Split loyal
Shifting loyal
Switchers
Radio mirchi has to convert the split loyal in to the hardcore loyal.

2) TARGETING:

♦ LEVELS OF TARGETING:

⇒ There are three levels of targeting.1) homogeneous preference,2) defused preferences,3) clustered
preferences.

⇒ Radio mirchi do not use the homogeneous preferences they are also not using the defused
preferences. They using the clustered preferences because specific types of customers are having
specific need. The need of the different person are different. radio mirchi are targeted to the college
students and the teenagers so they playing hot and the new songs. In the evening they play this type of
songs in the bumper to bumper.

⇒ They also targeting the mature person and they like to listen old and melody songs. Radio mirchi are
playing this kind of old songs in the night in the show PURANI JEANS.

♦ Niche marketing:-
A niche marketing is more narrowly defined customer group seeking a distinct mix of benefits.
Marketers usually identified needs by a dividing a segment in to sub segment. Radio mirchi people
using very less this type of segment marketing.

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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 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.

CONSUMER BEHAVIOR

We conducted a primary research and a Longitudinal study. We designed structured Questionnaires to


gather information from listeners of radio from Age groups of 25 to 35 and tried to understand their
consumer behaviour, which will help us in formulating strategies.

RESEARCH FINDINGS

 Out of the total 70 respondents 51% of them listened to radio only in the car /bus/auto ,23% of
them listened to radio only at home , 3% listened to radio at workplace ,9% listened to radio at
home and in the car

 3% listened to radio at the workplace and at home, 11% listened to radio in the car and at home.

 Out of the total 70 respondents 21.43% listened to radio in the morning ,14.28% listened to radio
in the afternoon , 17.14 % listened to radio in the evening and 47.14 % listened to radio in the
night .

 Out of the total 70 respondents 29 % did not switch radio channels during advertisements whereas
71 % switched radio channels during advertisements.

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 Out of the total 70 respondents 7.14% switch radio channels because of boredom with the current
station ,24.28% switch radio channels to listen to different type of music,8.57% switch radio
channels to listen to a particular programme on another station,34.28% switch radio channels to
avoid advertising ,4.28 % switch radio channels to avoid a particular DJ/presenter,14.28 % switch
radio channels to get news and traffic updates on another station and 7.14 % change radio channels
for any other reason.

 Out of the total 70 respondents 52% of them listen to radio only in the weekdays, 17% of them
listen to radio only on Saturdays and 31% of them listen to radio only on Sundays.

 Out of the total 70 respondents the RJs were recalled by only 32% of the sample, 68% could not
recall the RJs.

 Out of the total 70 respondents 71% felt more live shows should be added whereas 29 % felt more
live shows should not be added .

 About 45% of the sample liked to English music- Rock, Pop, Jazz, Hip hop, Soft music and Heavy
metal with a little of Hindi film songs and Indi-pop. The other 55% of the sample liked to listen to
Hindi music-Indi-pop, film songs [new and old] and Ghazals with a little of English music. The
rest 2% were not so particular and listened to both English and Hindi music.

 Out of the total 70 respondents 69% felt music was the most important factor for a radio channel,
24 % felt the RJs were the most important factor for a radio channel, 5 %felt the contests were
important for a radio channel and 2% felt news was important for a radio channel.

3) POSITIONING:

♦ RADIO MIRCHI POSITIONING STATEMENT:

“MIRCHI SUN NE WALE ALWAYS KHUSH”

⇒ From the above statement given by the radio mirchi want to specifies that they are wanting to
make people happy. And they are doing the same activity they always make people happy by
listening them, all new and the hot songs. they are having a that kind of the programme and the
RJs to enjoy the songs. they never play sad and the emotional songs.

⇒ For example in the early morning they played a peaceful bhajans and the prayers so the old age
people get satisfaction. Generally people become happy when his or her satisfaction be satisfied
and the radio mirchi is doing the same thing they provide the different promotional offeres and the
other gifts so people are being happy. And the another thing is that the RJs of the mirchi is

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fantastic .they are playing superb songs during the day. They are take interview of the celebrities
like hero, heroins , sports persons, businessmen, and the police commissioner and the CM, PM
etc..

⇒ They are having some programmes like JAYANTI JOKHAM in this kind of programmes they are
giving entertainment and funny jokes. And the all RJ’s are also very funny in their own
programme they are also make the some funny contests and the so on.. so we can tell that the
statement which they have given is true because they want to give an full entertainment.

⇒ “Mirchi sun ne wale always Khush” this statement defines that whomever listen the mirchi he or
she will become happy although he or she have any kind of sadness.

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III. SERVICE MARKETING MIX

1. PRODUCT:-

⇒ In Service you can’t see the product. In Radio Mirchi product is a program the entertainment is the
benefit which is listeners is getting form the program they have a different type of program like
DIN HUA BEGIN, HELLO AHMEDABAD, KHUBSURAT, TOTAL FILMY, BUMPER TO
BUMPER, PURANI JEENS, DR,LOVE, JAYANTI JOKHAM, RAT BAKI.

 To design the programme they have following steps:

• Customer benefit concept:-

⇒ In customer benefit concept what types of benefit customer is getting or accepted form the
programme KHUBSURAT that women are getting benefit in this programme they are organize
some kitty parties and the other discounts of the shopping malls.

• Customer service concept:

⇒ This concept means what are the general benefits the programme will offer to the listners. Hear
customer benefit concept is need convert the customers services concept. In the HELLO
AMDAVAD they are giving stock updates, traffic beats, cricket updaes, which are benefits to the
listener.

• Service offer concept:

⇒ Hear service concept need to convert service offer concept that means hoe the service offer to the
customer. When customer ids tuned thane he is getting services. There is a no special pattern for
the customer service.

• Service programme:

⇒ For the radio mirchi product is their programme. Each programme have a specific time and the
handled by a specific person means radio jokies(RJs). Now we are going to explain each and every
product in detail.

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2. PRICE:-

In radio mirchi it is free for the customer they have to not pay any rupee for getting services. But
radiomirchi charging money from the companies for advertisement of their product and radio
mirchi is charging generally Rs. 300 for 1 second.

3. Place:-

Place means at where a company is situated. And for Radio Mirchi place is where they are
located. They are mostly located at A+,A category or B category cities of the country which are as
follows:

♦ Location: Radio Mirchi is having stations in the following places in India :-

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♦ Coverage : In service marketing coverage means total area where the radio mirchi is tuned. For the
coverage of the radio mirchi they have a big tower at their studio and their coverage is about
90km.

4. Promotion:-

Radio Mirchi has been involved in various promotion activities which includes sales promotion,
advertising, publicity and public relations.

5. PEOPLE:-
People constitute an important dimension in the management of services in their role both as
performers of services and as customers. People as performers of services are important because,
”A customer sees a company through its employees. The employee represent the first line of
contact with the customer. They must, therefore, be well informed and provide the kind of service
that wins customer’s approval.”
⇒ There are two kind of people in the service marketing:
1. service provider
2. customer

1. Service provider:

For the radio mirchi Radio Jokies are the service provider of the company. Because RJs are the
important person of service provider because they are coming close contact to the customers so
they should be good natured, trained good, at communication, and can give more
entertainment.generally service providers are of two kinds:
a) visible or invisible and
b) one who come in high contact or another who come in less contact.

2. Customers:

For the radio mirchi customer are the public who listen their radio. Radio mirchi having a different
kinds of the programmes fo the different or same segment peoples. Like HELLO AMDAVAD,
BUMPER TO BUMPER, Dr. LOVE etc..
♦ Followings are the important people for FM company:
 Service provider
 Art director
 Radio Jokies
 Programme designer
 Script writer
 Programme director
 Financial
 Space selling executives

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6. Process:-

In the radio mirchi they have a different process or different departments for the different kinds of
the services. For example advertisement are prepared in the art room and the other radio mirchi’s
jingles and the mix songs are prepared in the production room. And the songs which are going to
be played are selectes in the broadcasters room.

7. Physical evidence:-

In Radio Mirchi physical evidence is as under. in the radio mirchi studio office we can see the big
tower in the enterence. We can heard cool music and radio mirchi with enterence. We can also see the
BMW car at the gate. At the right hand side there is a canteen and at the left hand side meeting or
management room. Without ID cards any of the RJ can noit go inside the studio. After entering to the
studio we can see the table and on the different table theu put a red dry chillies in the jar. Near these
table there is all RJs photos with celebrities. And the most interesting thing is that tere is every thing in
the red colour. After entering in the main studio of the songs broadcastings at the left hand we have
production room at where all the jibgles and the all advertices are made. after the production room there
is a back up room. There is a main two studios at where RJ are doing their work on radio. Between
these two room there is a room from they are take all the calls which questions are asked in the contest.

ANSOFF’s MATRIX

EXISTING PRODUCT NEW PRODUCT

EXISTING MARKET Market Penetration Product Development

NEW MARKET Market Development Diversification

On the basis of ANSOFF’s MATRIX, RADIO MIRCHI can go for two objectives:
PRIMARY OBJECTIVE: They should work upon the strategy to capture more small Indian cities
where other FM radio broadcasters have not entered. This will give them first mover advantage in that
city. Through this Radio Mirchi will definitely go up in terms of market share and wide network.
SECONDARY OBJECTIVE: They should come up with a new concept of ‘KHABRI BABA’. In
this listeners can give any five news headlines from any newspaper, if they want to win especial gift
vouchers from Radio Mirchi. This approach will lead in more benefits incurred by listeners
automatically. Also they can promote their clients product by giving them as gift vouchers. Radio
Mirchi going to be initiator who aired the ‘NEWS’ without breaking the rules made by government
bodies.

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IV. SUGGESTIONS & INTEGRATED SOLUTIONS

PROBLEM
Retaining and Sustaining the existing employees especially the RJs.
Attracting the new talent.

Integrated Solution
RJ Hunt
We have suggested that Radio Mirchi should organize a ‘RJ Hunt Program’ to attract new talent on a
large scale starting from the metros. Selection process will be done on Air. The whole process will be
shared with the listener and listener will vote for their favourite contestant. By this we make sure that
both the company and the listener will take part in choosing their own RJ.

Examples

MTv have done similar kind of VJ hunt for selecting their VJs. The name of the show was “Idea MTv
VJ Hunt”

Benefits –
This would be a good strategy as RJ is the face and voice of the company. Also, we have found in our
survey that one of the major reason for attracting them to a radio channel is the bonding and will drive
customer loyalty.

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It would be helpful in generating revenues for the company as listeners will vote for their favourite
contestants and we can have tie-ups with various Telecom providers. We can also generate a huge sum
of money for various sponsorships from local as well as national brands.
Our main target would be the local advertisers as the Hunt at the city level. This would be helpful in
attracting the local brands and advertisers to sponsor our brand and this segment is still untapped in
India.
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.

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PROBLEM
Retaining and Sustaining the existing employees especially the RJs.

Integrated Solution
Signing a bond of 2 to 3 years.
Offering them frills :-
Basket of benefits – Every employee will be offered a basket of benefits to choose from and According
to the needs and requirements, employee can choose the benefits from the basket. It would be flexible
compensation plan.
Featuring the RJs into print advertisements and hoardings, also feature 1 hour shows weekly of the
local famous RJs on a National basis.

Example
Many IT companies have offered these kind of flexible compensation and suggested by Mckenzie to
some of its clients and this have resulted in more satisfaction in their employees as well as retaining
their employees.

Benefits
These will be like a topping to choose from to make your own pizza. These additional benefits will be
an add on for all the employees and will motivate them to work with more dedication and make them
more satisfied as they are getting what they want. This will also make the employee feel that the
company is thinking for them and will make them more loyal towards the company. This will help
Radio Mirchi to retain their existing employees. We have also proposed the company to go for a 2 to 3
years bonds with their employees and it would not be a burden for the employees as they will enjoy
working.

Flexible Compensation allows an employee to decide upon his own employee benefit package. It is
presumed that with individual employee choice each employee will fashion an employee benefit
program which will maximize his satisfaction. Thus, an employer will theoretically get more for its
money with a flexible benefits package.

Shows of RJs on a National basis will increase their popularity and give them both name and fame and
hence will derive job satisfaction and loyalty towards the company.

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PROBLEMS
The listeners are switching to other channels.
Consumer behviour of the listeners is changing very rapidly.
To capture more share of the listener’s ear i.e. more market share.

Integrated Solution
Creating “Mirchi Links”-the student’s Club
Can drive loyalty by creating Student’s Club and can name them “Mirchi Links” the club, whose
members will be "ambassadors" of the Mirchi brand, is said to offer an `opportunity to experience.'
This will be an experimental way of building brand consciousness.

College students have to go through a multi-stage selection process, including group discussion and
personal interview, to become members of the club. This is to ensure that the member represents what
the club stands for — "a 20-year-old who is trendy, witty, outspoken, fun loving, intelligent, flirtatious,
smart, comfortable with self, involved in extra-curricular activities and socially aware." Fresh members
are taken in every six months, and membership is restricted to first- and second-year students, who will
retire once their course is over. Max. Limit of members should be 120-150 as it can’t have large no. of
members as 500.

Examples

Many channels are running these kind of fan clubs like for channels like Cartoon Network, Channel 9
etc. Hungama Channel went a step ahead when they made chose a team of kids to run their channel for
few days, which was extremely successful and helped to increase its popularity among children.

Benefits

Mirchi Links' members will be provided with opportunities to participate in various events and
programmes for development of soft skills, and by this Radio Mirchi will be "benefited tremendously"
by a continuous presence in colleges through its brand ambassadors. The contests conducted by Mirchi

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Links members in their respective colleges will brings `opportunity to experience' into play by taking
the brand experience across to the non-members also.

It will give Mirchi a chance to "keep the finger on the pulse of today's youth, whose tastes and
preferences are prone to continuous changes.”

Also, the process will give Mirchi a marketing opportunity: a database of college students, and
advertisers who want to reach out to this tribe can avail themselves of it.

The idea for a students' club can be started with one of the metro cities, but if it succeeds then the
concept could be taken nationally.

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PROBLEMS
Profits of Radio Mirchi has been shrinking, even it reported loss in the first quarter of 2009.
As it is a service and is an intangible thing, so there is no physical evidence.

Integrated Solution
Magazine for Music Lovers :-
We will start publishing a magazine for music lovers and will be named as “Mirchi Rocker”
This Magazine will include information about music, videos, books, movies, fanzine reviews,
upcoming release listings, music charts, more.
It will contain the collection of interviews with some of the world's renowned and Indian musicians. It
also will have an extensive review section, featuring: new releases, film and concert reviews as well as
radio and television reviews. Focuses on the progressive new music scene and the youth culture. Gives
the edge on film, art, and music, including ska, pop, R&B, rock, hip hop, and rap.
Magazine will be on the monthly basis for different cities and will also contain the list of the programs
on Radio Mirchi and also lyrics of the top 3 songs of the month.

Benefits
The idea of launching the Magazine will help Radio Mirchi to tangiblizing the intangible. It can be a
good hit as there are no many magazines available for the music lovers and it would be a different kind
of magazine and will give the listeners of Radio Mirchi a sense of belonging and a status symbol. It
will enhance the brand name of Radio Mirchi.
Publishing magazine will also help Radio Mirchi to generate revenues. The subscription will not be
that costly and will not be the major source of revenue but the major revenue will come from the print
advertisements.

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PROBLEM
Listeners switch to other radio channels due to advertisements.
This can be clearly seen from the statistics given below as 34.28% of the listeners’ has given reason of
switching to other Radio channels is ‘to avoid long slots of advertisements’, also we have found that
during the advertisements 71% of the people generally switch other radio channels during
advertisement.

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Integrated Solution

From the below statistics we can clearly see that around 16% of the listeners have find advertisements
important for a radio channels but the main reason why they switch to other radio stations is that the
duration or slots of advertisements is very long i.e. after 3 to 4 songs there is a stretched advertisement
slot of 3 to 4 minutes and many are repetitive, which makes the listeners switch to other channels.

Importance Of Radio Channels

40
35
30
Percentage

25
20
15
10
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Ad

Radio Programs

Timings Percentage

In the Morning 21.43%

In the Afternoon 14.28%

In the evening 17.14%

In the Night 47.14%

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We are suggesting them to create a special team from among the existing employees, the most
innovative and creative employees and this team will be responsible for making innovative and
interesting advertisements.

We are also suggesting Radio Mirchi to give the advertisements of the Local brands in the non-peak
hours (in the afternoon and evening, when generally people are in Car/bus or auto) and frequency can
be the same, as during these time advertisements will not be of much hindrance.

We are suggesting Radio Mirchi to slot their advertisements one or two (around 30 sec or 1 min.) after
every 2 songs during the peak hours (at night and in morning) and during this time we will be charging
premium and mainly targeting premium national brands.

We can also conduct special quiz shows after any program randomly and ask the listeners to name any
of the 5 advertisers and then provide them Shopping ride and discount coupons.

Benefits

Making innovative and interesting advertisements will make listeners to enjoy listening the
advertisements too and will reduce the switching to other channels.
Non-peak hours will be used to generate revenues from the local advertisers as the local advertisers are
still untapped, 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 and during this time advertisements will not be of much hindrance.
Conducting special quiz will make listeners to listen to the advertisements carefully and remember
their names and doing this will give us chance to charge premium from the advisers. Also we can
generate revenue by tying-up with various shopping malls as giving their shopping ride and discounts
coupons are helping them to increase their footfalls.

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SOME OTHER SUGGESTIONS

CONDUCT CSR ACTIVITIES

CSR activities like “Greener City campaign” with the tagline of the campaign be “Green is cool,
Mirchi is HOT”. We will run a tree plantation drive all around the city on a large scale. Tree plantation
will be done on various places like schools, colleges, housing co-operative societies etc.

Benefits
We can get competitive advantages by doing these CSR activities as many other radio channels are not
doing that. It will enhance the brand image of the brand in mind of the public. It will give us a free
publicity as it would be covered by the newspapers and local TV channels. It can also generate revenue
from the sponsors.
We can also get sponsorships for that.
We can also get subsidies and support from government as well as with forest department.

MIRCHI KITTY PARTY

• To be organized by national activations on PAN India.


• Listeners of female oriented show – Khoobsurat.
• Kitty party includes organised at some big areas such as mall or stadium.
• Various games are played – free coupons vouchers are distributed.
• Generally, clients dealing in home appliances are co-sponser.

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

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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.

EXPLOIT ADDITIONAL REVENUE STREAMS

In addition to the income from airtime sales on Radio Mirchi channels, we intend to focus on creating
or expanding additional revenue streams. We suggest Radio Mirchi to launch Mirchi Activation events
which are promoted through their radio channels and enable them to enhance their revenue from
airtime sales as well as attract new advertisers. Additional income streams may also include revenue
from SMSs or calls received from their listeners, or from the sale or licensing of content to third
parties, whether in India or in international markets. They can tie up with some company and also
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.

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Visual radio services will also provide an additional advertising opportunity to Radio Mirchi clients.
These services will also provide them with additional advertising revenues from their clients as well as
digital service revenues from the telecommunications sector.

INFUSE SOME MORE VARIETY IN ITS MUSIC LINE-UP

Radio Mirchi has been introducing more variety in its music line-up across its stations. This initiative
which began with Mumbai, culminated with the launch of two new shows on September 1 – ‘90 not
out’ and ‘Retro Deewane’ – on Radio Mirchi Delhi. While ‘90 not out’ is aired from 11 am to 1 pm,
‘Retro Deewane’ is aired from 1 pm to 4 pm.

Radio Audience Measurement (RAM), the radio listenership service from TAM Media Research, has
put Radio Mirchi on the top at least in Mumbai, Delhi and Kolkata. One of the reasons for the FM
station surging ahead has been a change in its music positioning, or, as Radio Mirchi puts it,
identifying the need gap and bringing in variety in its music.

It all began with Mumbai, where the FM station decided to explore two new genres – the 90’s music
through its show ‘Dheemi Local’ (launched three months back), which is aired from 11 am to 1 pm,
and retro music through the show called ‘Purani Jeans’ (re-launched) at night. Both these changes are
said to have taken Radio Mirchi to the numero uno position in Mumbai.

Tapas Sen, Chief Programming Officer, Radio Mirchi, explained, “Following the success of Mumbai,
we realised that variety could be the key and decided to follow suit across our Hindi speaking markets
– 21 markets, barring Delhi. We identified the need gap as there was a dearth of supply in this genre.
However, Delhi being a huge market for us and where our lead is far greater made us a little nervous
and, therefore, today we decided to make that change and finally launched ‘90 Not out’ and ‘Retro
Dewaane’.”

Speaking of variety, Radio Mirchi now boasts of devotional songs, the latest hits, 90s songs, retro and
so on. With this new music positioning, Radio Mirchi is yet to finalise its communication strategy,
which is intended to be a multimedia campaign.

“In a country like India, you cannot be a successful product if it is rejected by the youth, and we have
seen that the youth love retro music. Ironically, it was not available in good measure,” Sen added.

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REFERENCES

• Newsletter from Madison Media

• An Advertisers Guide To Better Radio Advertising by Andrew Ingram and Mark Barber

• TAM MEDIA RESEARCH

• INDIA RADIO FORUM 2008

• HINDU BUSINESS LINE

• BUSINESS WORLD

• Advertising and Promotion by George.E.Belch & Michael A. Belch

• Marketing management by Philip kotler and Kevin Lane Keller

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ANNEXURES
QUESTIONNAIRE

Please take a couple minutes to complete this brief questionnaire. Thanks for your insights!
NAME - :
AGE -:
PROFESSION - :
GENDER - :

1. Do you actually listen to radio? Yes No

2. If yes, which is your favorite radio channel in Hyderabad you generally listen to? (can be
more than one )

3. Specify the reasons what makes the above radio channel your favorite?

4. When do you generally listen to the radio?

• Only in the car /bus /auto


• Only at home
• Only at the work place .
• At the workplace and in the car / bus /auto
• At work place and at home
• In the car and in the workplace
• In the car and at home
• At home , in the car and at the work place
5 . When do you listen to the radio the most?
• Weekdays
• Saturdays

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• Sundays
6 When do you listen to the radio? (Can be more than one)
• In the morning
• In the afternoon
• In the evening
• In the night

7. What kind of music do you generally like listening on radio?

8 .Which is your favourite radio programme on the current radio channels? (Can be more than one)

9. Who is your favourite RJ?

10. Do you think more live request shows should be added?

11. Do you actually listen to the advertisements on radio? Do you change the radio channels during
advertisements?

12.
Rate from 1 to 4. (1=most important) (4 =least important)

According to you what how important are the following to a radio channel:
category 11 22 3 44
music
RJ ‘S
contests
Shows
news

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Radio
advertisements
13. Do you switch radio channels often or are you dedicated to one radio channel?
Yes No

14. If you switch radio channels why do you generally switch radio channels?

• Boredom with current station

• To listen to different type of music

• To listen to a particular programme on another station

• To avoid advertising

• To avoid a particular DJ/presenter/programme

• To get news and traffic updates on another station

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