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.
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
ENVIRONMENTAL ANALYSIS: 98.3 FM EXTERNAL: PEST ANALYSIS
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.
RJ’s mainly attracted by package that has been offered to them by competitors.
Showing responsibility towards various NGO
Help in June 2005 Mumbai flood.
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.
MARKET LADDER Big FM Very new Name at times not spontaneously evoked.. Radio One Not 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
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.
Live Performances Brand Driven – Activation Special Brand Integration on Radio 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
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
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
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.
Radio Brands are promoted on air, through 'live' links, interaction with consumers. … Hence helping the brand to reach across more no of audience by amplification Thank You !!!