RADIO MIRCHI

VIKAS VERMA
 Introduction
 Radio Mirchi is the most popular private FM
radio channel in India with the largest operating
network and a presence in 33 cities & 6 Metros.
The case traces the emergence of Radio Mirchi
as a leader in the Indian FM radio industry.
 The case talks about the company's innovative
marketing and promotional campaigns. It also
describes the Government policies, vis-a-vis
FM radio, and their impact on Radio Mirchi and
other FM broadcasters. The case finally talks
about the new challenges that Radio Mirchi
might have to face in the changed environment
and the future outlook for the company.
Background Note
 Operated by Entertainment Network
India Ltd (ENIL)
 Promoters: Bennett, Coleman & Co.
and Time Infotainment Media Ltd.
 Radio Mirchi is Star SBU of ENIL ,
started October 2001
First wave of FM Privatization
 July 1999 gov decided to privatize FM Radio
sector.
 Ninth Five year plan
 Gov offered licenses for 10 year, charging
15% license fee with annual hike.
 2000 gov started bidding process for 108 FM
radio licenses in 41 cities.
 Radio mirchi bidd on 64 F & won 12 licences.
 Radio Mirchi started first from Indore.
 Competion for Ads revenue amoung other
FM ( Mumbai & Delhi)
ADDING SPICE
 Change Perception of Radio.
 Created a colorful image in audience.
 Segmentation of listeners & program
was customized.
 Local language programs.
 Updated every week new releases.
 Listeners chatted with film stars.
 Radio mirchi hired RJs (radio jockey)
 Radio Mirchi invested in high quality
equipment & transmissions.
Marketing Mirchi
 Advertisements
 Display media
 Tie up with companies
 Feedback from listeners (build consumer
involvement)
 Sponsored many things.
 Launching innovative promotion
campaigns.
 Made sales team to maintain relation with
local advertisers
 Price of Ads based on time.
 Additional income from SMS
Growing popularity of RM
 Popular in youths.
 Reminder to reinforce marketing
 Help to other SBU.
 Program format of local language.
 CSR (NGOs)
 Information regarding traffic, health, safety
e.t.c
 Good content & marketing
ll- wave of FM Privatization
 Occurred losses because high license
fees in l phase
 Threatened to close operation.
 Gov agree on 4%
 ENIL decided to fund expansion
through a public issue.
 Bidding was 337 F in 91 cities, RM win
32
 Sun tv44 , Adlabs also came.
New Challenges
 Policy guidelines
 Fear of Niche broadcaster
 Entry of foreign radio channel
 Re-entering of 1phase player
 Adlabs ,Sun Tv
 New campaign of existing
 One-station-per-company-per city norm
implemented by gov
 High charge taken by ppl (phonographic
performance ltd)
 Development of high technology- internet,
quality of software, internet radio, digital audio
broadcasting
 Gov restricted 2-3 minutes news only
Outlook
 Optimistic about new policy
 Listeners increased
 Market reach
 Started strategic partnership with
international players.
 Provide consultancy services in
Bangladesh to set up new radio station
 Maintain Leading position through
innovative marketing campaign.
 Questions
 What in your opinion has contributed to immense
success of Radio Mirchi?
 Do you think gov was only responsible for losses
incurred by private FM or companies themselves
to blame for lack of judging the FM industry
potential?
 Is the current optimism justified considering the
fact that revenue growth in FM industry is very
slow and the competition has intensified
 What are the future prospects for Radio Mirchi?
Do you think it can continue dominating the
indian FM radio industry