Debashish Brahma.IISWBM, Calcutta.

http://debashishbramha.blogspot.com

Early 2000 80’s – early 90’s 70’s

Radio – the leader in media

Radio - the dead mediaPublic

broadcaster

Slow songs

RJs – Classical - Iconic

Amin Sayani…

High incidence of speech

programming

Radio – The entertainment maestro

Fresh, new, and dynamic..

Music led, speech programming

limited to jock-talk and programme formats built in

music shows2-3 channels

fighting for market share with almost

similar programming

Med

ia P

rom

inen

ce

Late 90’sCurrent

RJs - Becoming

staid

Old time music

Stuck in the past

AIR FM starts with more hip and interactive

programming…hit music…request

shows…. dedications

Revival of RadioAdvent of FM

TV the ruling king, Radio – only Vividh Bharati

No TV

Advent of Private Channels - 2-3 stations

Private Radio Platform….buzzing with choices…almost 10 in number…fighting for

differentiation, yet to go niche

Small differences with non-stop music, English music...TV stars as

RJs...mood led programming...etc…

The changing face of radio over time

The radio market is now virtually unrecognisable from the time when the BBC was dominant

MusicMusic

Relaxation

Fun

Information

Entertainment

Time pass

No tension

Radio Jockeys

Stress buster

Peaceful atmosphere

Good songs

No loneliness

Good friend

Spontaneous associations with radio

Five key Things About Radio Today

2. Radio is hyper-local

4. People’s attention slips in

and out of the radio

1. Music and entertainment are

key

Information/ traffic updates

Songs ..for all

Happenings .. youngsters

Tips

Conversation

Dial Ins/ Contests

Radio jockeys

Jokes

3. Listening habits led by time and

mood

Lively songs during day, slow songs in evening

5. Relationship with radio varies

by segment

Students: companion among crowd

companion without intruding on space

Housewives: companion whilst

alone, connection to outside world

Professionals: background filler with points of engagement

“”you get to know the traffic update”“You are given current affairs news…what's happening

around Delhi”“They tell you about the weather, where to go in the

weekend”

“you know the songs that are coming on radio…and you sing

along with it…but you don’t really hear what the RJs say”

College/ friends/ courses Friends Family

6 a.m 10 a.m 2-3 p.m 5 p.m 8 p.m 10 p.m8 a.m

In the background

Self Self

On route

Post return

In Back-ground Out of home activity. Family

6 a.m 9 a.m

7-8 p.m 10 p.m10 a.m

Self (especially if unmarried)

On the

road

On the

road

In the background

Self + kids Family

6 a.m 10 a.m 1 p.m 5 p.m 8 p.m 10 p.m6 p.m

Self + hubbySelf

SelfSelf

How people use radio - weekdays

RADIO:

Part of daily routine

Background, non-intrusive

Companion whilst alone

Indulgence for self

RADIO:

Time pass

Private moments

Energising, pep

RADIO:

Energising, off-set stress

Unwinding

Fill monotonous journey

Ad Revenue Landscape

Market Ladder

Big FMVery new

Name at times not spontaneously evoked..

Radio OneNot spontaneously recalled…at probed level..no distinctive

imagery AIR FM

Old and boring

Fever FM

High awarenessPopular among

youngsters enjoying high-tempo and English music

Hit FM

New but fast gaining popularity

Radio City

Growing oldPopular once upon a time but losing out as not very

dynamic

Red FM

Growing steadilyPlaying enjoyable, new music and also fun programming Radio Mirchi

Strong imagery…that of spicy, young and dynamic

Well known RJs and programmes…Plays music resonating with young generation

Respondents placed stations on a ladder, based on their perception of how successful they are…

BCG Matrix

• High • Low

• High

• Low

• Product Sales Growth Rate

• Relative Market Share

Radio Mirchi,Times Business Solution

Times Internet Limited,OOH, ABSL 360 DegreesMirchi movie ltdTimes music, zoom, Times Now

World Wide Media,Publishing Division

FM Radio - Evolution

Before 1999• No privatization

• Government Run Radio Channel

1999-2005• Phase 1 – Licensing

• Limited Private Participation• Strict Regulatory Norms

2006- 07•Completion of Phase –II Licensing•Increased competition•Improving Profitability•Growth in radio spend

Strategic Direction……..Expand our footprint in radio broadcasting• – Rapid roll-out of 22 new stations• – Explore opportunities in international markets

Maintain market leadership in fast growing radio industry• – Development of listenership research standards and methodology;

larger geographic coverage• – Keep investing in brand building and programming innovation• – Launch Visual Radio through mobile phones in other cities• – Leverage footprint to capture additional income sources• – Exploit additional revenue streams like Mirchi Activation

Competitive Strength…

• Largest operating network and reach among listeners • Track record of developing innovative and creative

content • Proven ability to successfully operate in diverse

markets• Radio Mirchi brand is widely recognized • Strong advertisement sales capabilities • High quality studio and transmission equipment

Operation

Areas of Operation

Target Listener

Segmentation of Program

Types of Program

Mirchi Activation

Growth Drivers

RADIO MIRCHI

•GDP Growth rate of 8.7%, •Ad spend growth – 20%

•Young nation withHigher spending Power•Largest workforce inThe world

•Untapped rural market

Foreign Investment

SWOT Analysis on Radio MirchiStrength Weakness

Opportunity Threats

•Presence in major cities•High listenership

• No subscription revenues in radio• Lack of differentiation between different FM radio stations

•High music royalties•Capital intensive business

•Benefit from the robust growth in the FM radio industry

•Intense competition in the radio business•Loss of listenership in radio business

Conclusion FM market – 5 things to take away

1. .

1. FM radio programming is based on fun and entertainment, with all programes centered around music

2. Radio listening is mood led, and people tend to stick to a certain time of listening which fits in with their lifestyle

3. Few RJs have resonated with listeners, but those most successful have developed a strong relationship with the listeners as empathetic, friendly and person-next door with persona as fun, lively, youthful, smart and cool

4. Other than the government owned channel (AIR) which is associated with being boring and old, all other channels are fighting in the same space with little differentiation – Mirchi is currently top.

5. FM has changed the market and radio is now unrecognizable from the old time