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Radio Mirchi India ,Strategy In Fm Business



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  • 1. Debashish Brahma.
    IISWBM, Calcutta.
  • 2.
  • 3. The changing face of radio over time
    Radio – the leader in media
    No TV
    Radio - the dead media
    TV the ruling king, Radio – only Vividh Bharati
    Public broadcaster
    Slow songs
    RJs – Classical - Iconic
    Amin Sayani…
    High incidence of speech programming
    Revival of Radio
    Advent of FM
    RJs - Becoming staid
    Old time music
    Stuck in the past
    AIR FM starts with more hip and interactive programming…hit music…request shows…. dedications
    Advent of Private Channels - 2-3 stations
    Media Prominence
    Fresh, new, and dynamic..
    Music led, speech programming limited to jock-talk and programme formats built in music shows
    2-3 channels fighting for market share with almost similar programming
    Radio – The entertainment maestro
    Private Radio Platform….buzzing with choices…almost 10 in number…fighting for differentiation, yet to go niche
    The radio market is now virtually unrecognisable from the time when the BBC was dominant
    Small differences with non-stop music, English music...TV stars as RJs...mood led programming...etc…
    80’s – early 90’s
    Late 90’s
    Early 2000
  • 4. Spontaneous associations with radio
    Peaceful atmosphere
    No loneliness
    Time pass
    Good friend
    No tension
    Radio Jockeys
    Good songs
    Stress buster
  • 5. Five key Things About Radio Today
    4. People’s attention slips in and out of the radio
    3. Listening habits led by time and mood
    Lively songs during day, slow songs in evening
    5. Relationship with radio varies by segment
    1. Music and entertainment are key
    Students:companion among crowd companion without intruding on space
    Songs ..for all
    Radio jockeys
    Housewives:companion whilst alone, connection to outside world
    Information/ traffic updates
    Dial Ins/ Contests
    Professionals:background filler with points of engagement
    Happenings .. youngsters
    “”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”
    2. Radio is hyper-local
    “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”
  • 6. In the background
    Self + kids
    Self + hubby
    6 a.m
    10 a.m
    1 p.m
    5 p.m
    8 p.m
    10 p.m
    6 p.m
    In Back-ground
    On the road
    (especially if unmarried)
    On the road
    Out of home activity.
    6 a.m
    9 a.m
    7-8 p.m
    10 p.m
    10 a.m
    College/ friends/ courses
    In the background
    Post return
    On route
    6 a.m
    10 a.m
    2-3 p.m
    5 p.m
    10 p.m
    8 a.m
    8 p.m
    How people use radio - weekdays
    Part of daily routine
    Background, non-intrusive
    Companion whilst alone
    Indulgence for self
    Energising, off-set stress
    Fill monotonous journey
    Time pass
    Private moments
    Energising, pep
  • 7. Ad Revenue Landscape
  • 8. Market Ladder
    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…
    Growing steadily
    Playing enjoyable, new music and also fun programming
    Radio Mirchi
    Red FM
    Growing old
    Popular once upon a time but losing out as not very dynamic
    Radio City
    New but fast gaining popularity
    High awareness
    Popular among youngsters enjoying high-tempo and English music
    Hit FM
    Fever FM
    Radio One
    Big FM
    Not spontaneously recalled…at probed distinctive imagery
    Very new
    Name at times not spontaneously evoked..
    AIR FM
    Old and boring
  • 9. BCG Matrix
    Relative Market Share
    Product Sales Growth Rate
    Times Internet Limited,
    OOH, ABSL 360 Degrees
    Radio Mirchi,
    Times Business Solution
    Mirchi movie ltd
    Times music, zoom, Times Now
    World Wide Media,
    Publishing Division
  • 10. FM Radio - Evolution
    2006- 07
    • Completion of Phase –II Licensing
    • 11. Increased competition
    • 12. Improving Profitability
    • 13. Growth in radio spend
    • Phase 1 – Licensing
    • 14. Limited Private Participation
    • 15. Strict Regulatory Norms
    Before 1999
    • No privatization
    • 16. Government Run Radio Channel
  • 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
  • 17. 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
  • 18. Operation
  • 19. Growth Drivers
    • GDP Growth rate of 8.7%,
    • 20. Ad spend growth – 20%
    • 21. Young nation with
    Higher spending Power
    • Largest workforce in
    The world
    • Untapped rural market
    Foreign Investment
  • 22. SWOT Analysis on Radio Mirchi
    • Presence in major cities
    • 23. No subscription revenues in radio
    • 24. Lack of differentiation between different FM radio stations
    • 25. High listenership
    • 26. High music royalties
    • 27. Capital intensive business
    • Benefit from the robust growth
    in the FM radio industry
    • Intense competition in the radio
    • Loss of listenership in radio business
  • Conclusion FM market – 5 things to take away
    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, friendlyandperson-nextdoor with persona as fun, lively, youthful, smartandcool
    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 unrecognizablefrom the old time