Apeksha radio industry mos ppt


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Apeksha radio industry mos ppt

  2. 2. RADIO INDUSTRY Business model is mainly advertising driven.  Growth in the last two quarters of 2008 was slow.  Radio is a cost effective medium as it has more penetration.  Controlled by few business groups having sizable stake.  Phase II licensing made the business viable.  Has huge infrastructure setup costs.  Oligopolic and witnesses price wars.  Overall growth rate is impressive.
  3. 3. Brief History of Radio Broadcasting in India  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
  4. 4. 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…”
  5. 5. 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 Self Self How people use radio 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
  6. 6. ENVIRONMENTAL ANALYSIS: 98.3 FM EXTERNAL: PEST ANALYSIS POLITICAL:  To enter in the industry, high one time entry fee has to be given  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. SOCIAL:  Showing responsibility towards various NGO  Help in June 2005 Mumbai flood. TECHNOLOGICAL:  Before 2000, there were only two music stations, but after that radio industry came up with private Channels with different frequencies. Today ENIL has 40 stations.  Internet radio is introduced.  Modern equipment and highly technical transmitters are used.  Visually appealing materials are also associated.
  7. 7. MARKET LADDER Big FM Very new Name at times not spontaneously evoked.. Radio OneNot spontaneously recalled…at probe level..no distinctive imagery AIR FM Old and boring Fever FM High awareness Popular among youngsters enjoying high-tempo and English music Hit FM New but fast gaining popularity Radio City Growing old Popular once upon a time but losing out as not very dynamic Red FM Growing steadily Playing 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… Very new Name at times not spontaneously evoked.. Old
  8. 8. ON-AIR DELIVERABLES: The range of Services to clients: Free Commercial time: @ SPOTS: Information about the brand recorded once and is repeated for a number of times. @ R.J. Mentions: R.J’s keep mentioning about the brand/client, live during a show, it’s not pre-recorded. @ ON-AIR CONTESTS: Contests played during an on-air show like best recipe with Hamdard Roohafza. Activation: (ATL + BTL) @ PRE-HYPE PROMOS: Promos specially created to create hype before the activity. @ Activity Promos: On-air announcement of all the details of the on-ground activity, along with the brand name. @ Winner Bytes: Recordings of the winners of the on-ground activity for on-air broadcasting telling about the brand & the activity. @ RJ Mentions: RJ is present at the activity venue & does live mentions about the activity on-air. @ Special Properties: These are properties owned by Radio Stations which are sponsored by the client accordingly as client’s brand can leverage that property. Maruti Suzuki being an automobile company sponsor the “Mirchi Traffic Beats” property of Radio Mirchi.
  9. 9. LivePerformances Brand Driven – Activation SpecialBrand IntegrationonRadio Media Property ACTIVATION SPECTRUM Sponsorship model Multiple clients on each activity Typically 1 PS & 2-3 AS, Execution is outsourced to an agency Activity wise P&L, Costs broken up into on-ground & (on-air) costs Cost to revenue ratio – 1:2.5
  10. 10. SWOT Analysis Strength Weakness Interactive medium Fragmented Audience Penetration in remote villages Less Differentiation Low content cost Creative compromise Difference in prime time in comparison with TV Short commercials Excellent complementary & background medium Cost effective to advertisers Threat Opportunity Govt. owned channel – AIR Fastest growing segment of the media and Government Policies entertainment industry Technology Beneficiary of the buoyant growth of Huge Sunk cost major advertisers Talent issues Reduction in license fees Awareness & growth
  11. 11. RADIO is a step towards evolution, a strategy, a podium that is flexible & adaptable assuring that the clients Product/Service/Brand/ Message reach to maximum TG 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
  12. 12.  RECOMMENDATIONS:  1. Planning: Specialists to handle timeline creation through comprehensive checklist & manage every detail of the pre-event planning.  2. Preparation & Programming: The programming team has to be well trained & has skills that they ensure a powerful radio plan, creating an impact at the TG & further fulfilling the client’s requirements.  3. Work on the principles: of excellence, price performance, and integrity, should be committed to achieving success for its clients by applying the full power of communications as an extension of business strategy and execution.
  13. 13. Radio Brands are promoted on air, through 'live' links, interaction with consumers. Brands are promoted on air, through 'live' links, interaction with consumers. … Hence helping the brand to reach across more no of audience by amplification … Hence helping the brand to reach across more no of audience by amplification Thank You !!!