Radio Mirchi

Sales , Mirchi Marke !

Aditi Bhalodia
09BS0000094
IBS

In te rn a l
G u id e :
Pro f. Pa n ka j
M adhani
 Objective of the Project
• Understanding the Radio Sales
procedure
• Print track
• Aircheck
 Importance of
Advertising
• First Time Users of a product
• First Time Users of a brand
• Regular users of the brand
• Launch a new brand
 Different Media of
Advertising
• Newspapers
• Magazines
• Yellow pages
• Television
• Direct Mail
• OOH
• Telemarketing
• Radio
 Radio Industry
• 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.
•
 Key Players in
Ahmedabad
• Radio Mirchi
• My FM
• Radio City
• Red FM
• Radio One
•
 Radio Mirchi
• 33 stations
• Including metros
• Target: Family audience
•
 Strategy
• Factors such as lifestyle, attitudes, occasions
rather than demographic information alone.
• 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.
• Secure exclusive FM broadcasting rights of the
music of leading films for up to two weeks after
the initial release of the music.
• It has been able to customize its content to 17
 Environnemental Analysis
  
I. EXTERNAL ENVIRONMENT

 PEST Analysis
Political

• 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.

 PEST analysis (cont.)
Social
• Showing responsibility towards various NGO
• Help in June 2005 Mumbai flood.
 

Technical

• 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
 Competitive Analysis
• Higher monetary incentives for the
employees
• Other media of advertising
• Radio One, Red FM
• My FM
– Hindi and English Music
– Operating at a much lower cost

 SWOT Analysis
 Strengths
• Superior quality music and benefits to their
customers.
• Delivers the best combination of innovative
content and interesting initiatives.
• Wide Target Audience
• MRB in car- listenership 50 per cent on an
average since launch.
• Enjoys the highest "loyalty" among its listeners.
• Many college cultural and tech fest, increasing its
visibility within the youth.
• 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.
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.

• The license fees have to be paid upfront for operating FM

radio stations. Thus ENIL needs a lot of capital to fund its
growth plans.

• ENIL has to pay a high amount of royalty to the music

companies for the music content procured from them.
This increases the operating expenses of its radio
business, hurting its bottomline.
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


• High threat from all private music station, specifically

from My FM, Radio City, Radio One, etc.

• Per second rates of Radio Mirchi is much higher than

the other Radio Channels, because of which radio
Mirchi is missing out on large revenue shares by real
estate and SME sectors.

• ENIL derives high advertisement revenues in its radio

business due to the high listenership ratings of its
radio stations. Any drop in these ratings would
adversely affect its revenues

 Competitive Strengths
• 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

 Marketing Mix
Promotion


• Cross media marketing

• Online promotion

• Mumbai marathon

• 90 not out , Purani Jeans

• Mirchi kaan awards

• Mirchi Music awards

 MM(cont.)
 Product
• High quality studio and transmission
equipment
• Mass audience
• Multilinguistic programs
• Customization
• Emphasis on culture

 MM (cont.)
Place and Time


• Broadcasting (Ahmedabad, Mumbai, Banglore,

Chennai, Indore, Kolkata, Lucknow 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 Environment


• High quality studio and transmission equipment

• DTH Radio involved radio broadcast from radio station
via satellites
• Good radio frequencies
 MM(cont.)
Process


• Direct attachment with audience

• Talented RJ’s
• Direct to home radio
• Visual radio
• Internet radio Digital audio broadcasting
• Satellite radio
• separate sales team of 130 employees in 8 cities


People


• Hired skilled RJ’s, account managers, copywriters and

Managers.
• Emphasized on audience choice
• Level of customer involvements
Why is Radio Effective?
 Print Track
• Why track the print?
•
 Format of Print Track
• Date
• Client
• Category
• Media
• Page
•


• Ad Size(in CC)
• Rate
 Categories
• Automobiles
• Banks and Financial Institutions
• Education
• Garments
• Healthcare
• Hospitality
• Jewellery
• National corporations
 Importance of print Track
• The budget that any client is willing to spend on the print ad.

• The message and communication that the clients are willing to

give out to the costumers

• Contact details

• Schemes and features of the service/product that the client

wants to promote.

• New clients which enter the market.

• Previous clients which have change or maintained the marketing

strategies.

• The categories that is prominent in a particular month or a band

 Newspapers analyzed
• Ahmedabad Mirror
• Gujarat Samachar
• Sandesh
• Divya Bhaskar
 Methodology
• Secondary data
• Newspapers
• Historical data from the previous
account managers

Education Sector
Total Ad spent on
Education
Segmentation of Ad
Spend
 Observations
• Print advertising increased by 3% during 2009 compared to 2008.

• ‘Education’ topped the list of top 10 sectors advertised in Print

during 2009.

• ‘Educational Institutions’ category has the highest share of Print

ad volumes during 2009.

• There is an increase in the ad spend of education in the months of

June-July.

• The main client that can be pointed out are MBA couching
institute, B-schools, immigration agency.

• The months of July to August are the peak time for b-schools and
MBA coaching institutes to make themselves visible in the
Real Estate
Total Ad spent on Real
Estate
 Observation
• Economic slump of 08-09 effected the real estate sector the most.

• Due to the slump, the constructions owners stopped or slowed down

the ongoing projects

• Compared to Jan-Aug ’08, Print ad volumes of Properties/Real Estate

category has decreased by 23% during Jan-Aug ‘09.

• The market started showing steady signs of recovery around late

August. Realtors found the need to find more visibility in the
advertisement sector to get in touch with their potential customers.

• Again, the festivals such as Dushera, Diwali are considered to be

auspicious for buying of land and houses. Therefore a sudden rise
in the advertising spend is seen in the month of September.
 Suggestions
• A software/excel sheet can be developed that can simplify the process
of entering the print track details.

• The account manager would only have to enter

– Client

– Category

– Ad measurement

– Newspaper

– Color or black & white

• Software for Print Track

•
 Aircheck
• Programming Section
• Sales
 Aircheck
• AirCheck™ monitors 24 hours a day and delivers almost
real time radio airplay data from the 88 most important
radio stations in India.

• The Aircheck India National Network delivers

advertising agencies, radio stations and record
companies an instant online local and national
perspective of their clients' airplay.

• Aircheck India produces independent verification of

airplay and provides market
– Live Reports

– Market Share

– Brand and Category Analysis

 Programming section
• This section deals with the songs and the
playlist that are played on the channel.
• Includes:
– Datewise Playlist:
– List of Current songs and Repetition
– Top songs.
 Sales Section
 Commercial/spots
 Market share of each stations
 Brand Analysis
 Top Advertisers
 Top Brands
 New Clients

•
 Brand Analysis
Station
 Brands
• MY FM 580
• RADIO CITY 514
• RADIO MIRCHI886
• RADIO ONE 331
• RED FM 301
•
Education Industry
 Observations
• Radio Ads appear before Print Ads for
Education
• Print and Radio work hand-in-hand.
• The clients are will to spend on the radio
ads around April, before Print Ads.
• But the industry seem to put in around 30%
of their ad budget in Radio Michi where as
around 70% is going to the other channels
Real Estate
 Observations
• Real estate again shows the same trends as in print
ads.

• When the markets try to move out of the economic

slump, there is an increase in the ad spend that is
visibly noticed.

• That is the reason why there is steep increase from

the months of August and September. but, Radio
Mirchi captures only about 10.5% of the ad spend of
the real estate.

• One towering reason for the same is that price band

Market Share
 Observations
• MY Fm is the closest competitor of Radio Mirchi in
Ahmedabad both the stations are in the range of 25 to
35 % of the total market share.

• However, the per second ad rate is 4 to 5 Rs and that of

radio Mirchi is close to 40 Rs per second.

• Radio Mirchi can afford to price the ads to such high rates
as they are the brand supreme in Ahmedabad with
better shows, contests, RJs etc, they lead the market .

• Radio Mirchi ends up earning the same revenue at 1/10 th

the time devoted on air. in addition Radio Mirchi also
have the 9/10th of the time left, which it can sell out to
 Learning
• Radio Sales Process
• Scripting
• Marketing Events
• Recording
• Long term well maintained
Relationships go a long way!
 Listener-ship habits
• Questionnaire
• Distributed in varied sectors of
society
•
Where to listen?
What time of the day?
Why Switch?
 Observations
• 52%-weekdays, 17% -Saturdays, 31%-Sundays.
• The kind of Music that was played on radio hailed the
maximum importance as for as the factors affecting
the listening of a particular radio station is
concerned.
• Dedicated listeners hail RJs as an important factor to
choose a channel and RJ Dhawnit from Radio Mirchi
emerged as the favorite with almost of all radio
Mirchi’s listeners.
• Though a lot of the listeners found it hard to recollect
the names of the shows that they like to listen too.
• Housewives hail contest and news as important factor
for choosing a channel, while professionals prefer
good music.
• A few colleges students who were administered the
survey showed their high preference of the late
night classic English songs played on My FM as
opposed to the other channels.
 Sources
• Product sales manual, Radio Mirchi
• http://www.exchange4media.com
• http://advertising.indiabizclub.com
• http://www.televisionpoint.com
• Source: www.indiantelevision.com
• ENIL annual report.
• Secondary data collected for Radio Mirchi.
• www.aircheckindia.com

 Thank you!


 Mirchi sunnewale, always khush! 

