Marketing Plan Radio Mirchi

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We use it in Car
We use it in bus
Its entertaining
Its refreshing too
If it bores us we change it in seconds
So my dear friends what am i talking about

RADIO?

....Radio Mirchi 98.3 FM

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Marketing Plan Radio Mirchi

  1. 1. © C o p y r i g h t B i RADIO MIRCHI z T r e e MARKETING PLAN . 2 0 0 6 . A l l SUBMITTED TO r i MS SURABHI GOYAL g h t s r e s e r v e d SUBMITTED BY: . DHRUV SAHNI – 22 P r NEHA – 42 o t SHRUTI BHATIA – 70 e c VIKAS BANSAL – 88 t e d VIPUL AGARWAL - 90 b y t h 1 e c o p
  2. 2. INDEX S.NO PARTICULARS PAGE NO. 1 Executive Summary 3 2 Radio Industry 4 3 Marketing Plan 5 4 Methodology 6 5 Source of Information 6 6 Limitation 6 7 Corporate Objective 7 8 Environmental Analysis I. External Environment PEST Analysis 7  Competetive Environment 8  Customer Environment 9  II. Internal Environment SWOT Analysis   GE Matrix 10-13 13-15  Ansoff Matrix 15 9 Marketing Strategy 16 10 Marketing Mix 17 10 Competetive Strategy 18 2
  3. 3. EXECUTIVE SUMMARY This marketing plan is designed for the Brand Radio Mirchi 98.3FM. Substantial opportunities exist to tap into the market of Global News and International market. The advantage of this opportunities influence the behavior of target market in such a way that will increase the sales of Radio Mirchi even more. The market profile is refined by doing loads of research from internet to know the actual market share, attitudes and behaviors towards the music and benefits provided by them. The results were combined with demographic, geographical and psychographic information. But the major area that has highest concentration is demographic. The market is divided amongst children, youngsters, young adults and even aged people like to listens today’s music. All of these are taken care very well and represents high potential for future market growth. As Radio Mirchi has the top class wide network, with great support from their advertisers and distributers, they do not face a high threat from their competitors. 3
  4. 4. RADIO INDUSTRY Radio has been the most cost effective source of entertainment in India for a long time. For a long time, the radio industry was dominated by the state broadcaster- All India Radio. However, the radio sector has been gradually liberalized and has been opened for private and foreign investment. Radio industry recorded an impressive performance in 2007, having recorded a growth of 24 per cent over the previous year and is estimated at Rs. 6.2 billion in 2007, up from Rs. 5 billion in 2006. In the last four years 2004-07, the radio industry recorded the second highest cumulative growth of 37 per cent on an overall basis after online advertising. The radio industry is projected to grow to Rs. 17 billion by 2011, implying a 28% CAGR over the next five years. ENIL currently operates radio stations under the brand name ‘Radio Mirchi’ in 25 cities. 4
  5. 5. MARKETING PLAN This Marketing Plan is developed for the brand RADIO MIRCHI 98.3FM. it is owned by the company ENTERTAINMENT NETWORK INDIA LTD.(ENIL) ENIL is promoted by Bennett, Coleman & Co. Limited (BCCL) which is one of the largest media and entertainment companies in India, operating in various media segments such as print media and television broadcasting. Before we begin, let’s know a little about Radio Mirchi. The original avatar of Radio Mirchi was Times FM, which is probably the most famous radio in India which began its operation in 1993. Until 1993, AIR, a government undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won the largest number of frequencies, thereby acquiring a national footprint, and becoming the only commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities. Earlier available in the seven cities of Mumbai, Delhi, Kolkata, Chennai, Pune, Indore and Ahmedabad, now it is also available in key markets of Bangalore, Hyderabad, Jaipur, Patna & Jalandhar thereby taking the tally to 12 stations across India. It's the largest private FM Radio operator in the country in terms of number of operational stations and revenue. 5
  6. 6. Though Radio Mirchi FM radio stations are located in diverse regions in India it's been successful in attracting local audiences in each of these markets. This is largely due to a superior understanding of audience preferences, which enables it to provide content customized to the taste, language and culture of the local audience. METHODOLOGY All the major research and information is collected from internet. No field work is needed as we were had individual Radio systems with us. SOURCES OF INFORMATION  http://www.radiomirchi.com  www.enil.co.in - Radio Mirchi Corporate Site  www.exchange4media.com LIMITATIONS In finding the latest facts and figures about Radio Mirchi’s market share and annual growth. 6
  7. 7. MAJOR ASPECTS OF THE MARKETING PLAN CORPORATE OBJECTIVE The goal is to sustain the position of a LEADER in the market, in terms of Annual growth, Market share, competition and customer satisfaction ENVIRONMENTAL 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. 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 we have 10 music stations. 7
  8. 8.  Internet radio is introduced.  Modern equipment and highly technical transmitters are used  Visually appealing materials are also associated II. COMPETITIVE ENVIRONMENT Radio Mirchi’s high end competitor – FEVER 104 FM- was evaluated on several key factors, such as type of music they both play, promotional activities, product offering and overall presence in the competitive arena. Radio Mirchi is facing a high competition from FEVER 104FM. Fever 104 is just 2yr Old and it is already creating greater threat for other music stations including Radio Mirchi. Fever 104 is a brand owned by Hindustan Times Group. Basically it is handled by HT Music and Virgin Radio. The main advantage of FEVER is that, apart from Hindi music, they also play Pure English music, which is automatically becomes threat to Radio Mirchi. But the competition from other music stations is quite low. Secondly, the advertisers and other brands that associated with Radio Mirchi are loyal to them. Plus, Almost 53 per cent of daily listeners of Radio Mirchi choose not to tune in to any other radio station. That makes the market environment attractive for Radio Mirchi. 8
  9. 9. III. CUSTOMER ENVIRONMENT The target market for the Radio Mirchi has normally been defined in five different stages: DEMOGRAPHIC: This market shows the greatest potential, as AGE factor dominant other factor in Radio Industry. Secondly, GENDER factor. GEOGRAPHIC: Currently, Radio Mirchi has a presence in more than 33 cities, including the 6 metros of India. This market also shows great deal for them. BEHAVIORAL: Listener who listens to Radio Mirchi is very loyal to them as per survey mention above. SITUATIONAL: For many different occasions Mirchi came up with unique game or any kind of attractive show. For egs. New Year’s, Diwali, R.D.Burman’s birthday etc. customers are highly attracted to all these innovative shows and participated. PSYCHOGRAPHIC: Music has become a very important part of our lifestyle that we cannot ignore, neither Radio Mirchi. That is why, they always keep track record of latest and customers demand. 9
  10. 10. The information for this analysis is generated through the following programs: SHOW TIME(weekdays) TARGET AUDIENCE 7a.m – 11a.m Everyone Hi Delhi 11a.m – 2p.m Female oriented Khoobsurat 2p.m – 5p.m Quizzes related to Total Filmy bollywood 5p.m – 8p.m Everyone Sunset Samosa 8p.m – 11p.m Play old music Purani Jeans 11p.m – 1a.m Ask solution for Dr. Love relationship problems INTERNAL ENVIRONMENT STRENGTHS   Radio Mirchi known for giving superior quality music and benefits to their customers.  It delivers the best combination of innovative content and interesting initiatives.  Serve each and every section of public starting from the children to 70+ aged. 10
  11. 11.  According to the latest listenership figures released by IMRB International's Media & Panel Unit, confirms Radio Mirchi as the leading FM Radio station ahead of Red FM and Radio City. With 12.1 laky daily listeners, Radio Mirchi leads with a 72 per cent share of the market.  IMRB conducts the in-car listening research every fortnight in Delhi, and findings indicate that Radio Mirchi is the favored station on the roads with a share over 50 per cent on an average since launch.  The research reveals that Radio Mirchi enjoys the highest quot;loyaltyquot; among its listeners.  Radio Mirchi has partnered with VIBGYOR 2008 (college fest of International School of Business and Media).  Also with BLITZKRIEG 2008 (ICFAI Business School), COBWEB 2008 (college fest of LHMC) and SPANDAN 2008 (college fest of Vivekananda College).  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.  the '983 - Kismat Khol De' Contest won the Gold medal for Best Activity generating Brand Loyalty at the Promotion Marketing Awards of Asia – 2004.  Bronze medal for Best Activity generating Brand Awareness and Trial recruitment at the Promotion Marketing Awards of Asia – 2004. 11
  12. 12.  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.  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  Still facing threat from AIR FM and FM Gold. Both are take care by government bodies.  High threat from all private music station, specifically from Fever 104FM, 93.5Red FM, 91.1 Radio city.  Recent threat is Meow 104.8FM, which is completely women oriented music station. 12
  13. 13. STRENGTHS OPPORTUNITIES  Largest operating network  Satellite radio/DAB  Operate in diverse market  Internet radio  Widely recognized  Self news shows  Strong advertisement sales  International market capability.  High quality studio & transmission equipment WEAKNESSES THREATS  Inadequate penetration in  AIR FM radio, Gold Pvt. Indian market. Music stations  Ads are more as compare to  Retaining talented RJ’s songs aired GE MATRIX INDUSTRY ATTRACTIVENESS WEIGHT RANK PRODUCT Market size .3 8 2.4 Growth rate .25 7 1.75 Profit margin .05 6 0.15 Technology and capital .2 7 1.4 Social impact .2 8 1.6 Total 1 Out of 7.3 10 13
  14. 14. BUSINESS STRENGTH WEIGHT RANK PRODUCT Market share .4 9 3.6 Core competence .3 8 2.4 Technology ability .2 7 1.4 Ability to match service .1 7 .7 Total 1 Out of 10 8.1 Business Strength 9 6 3 9 Leader Growth Improve Attractiveness 6 Industrial 3 Proceed with Phased Try harder care withdrawal Cash Divest/ Cash investment Withdrawal generation Invest Selective Divest /grow investment 14
  15. 15. RADIO MIRCHI EMERGES AS THE LEADER IN 2008: RAM Radio Mirchi 98.3 FM, India’s hottest Radio station has been leading the race week on week, all round the year 2008. The recently declared RAM results for week 50 has acclaimed that Radio Mirchi 98.3 FM has topped the charts and has established itself as the No #1 radio station in Delhi. ANSOFF’s MATRIX EXISTING NEW PRODUCT PRODUCT Market Penetration Product Development EXISTING MARKET Market Development Diversification NEW MARKET On the basis of ANSOFF’s MATRIX, RADIO MIRCHI can go for two objectives: PRIMARY OBJECTIVE: They should work upon the strategy to capture more small Indian cities where other fm radio broadcasters have not entered. This will give them first mover advantage in that city. Through this Radio Mirchi will definitely go up in terms of market share and wide network. SECONDARY OBJECTIVE: They should come up with a new concept of ‘KHABRI BABA’. In this listeners can give any five news headlines from any 15
  16. 16. newspaper, if they want to win especial gift vouchers from Radio Mirchi. This approach will lead in more benefits incurred by listeners automatically. Also they can promote their clients product by giving them as gift vouchers. Radio Mirchi going to be initiator who aired the ‘NEWS’ without breaking the rules made by government bodies. MARKETING STRATEGY TARGET CUSTOMER PROFILE The Radio Mirchi target market was defined using interesting factors such as lifestyle, attitudes, occasions rather than demographic information alone. Although the customer description generally fall within the demographic that have been identified, this approach will provide an increased understanding of what motivates the listener and can be used to focus target marketing and positioning efforts more precisely. Radio is the source of entertainment for every individual of any age group whether it is children, youngsters, housewives or aged people. 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. ENIL has developed good relationships with the film industry in India helping it to have innovative and creative content. This helps Radio Mirchi to secure exclusive FM broadcasting rights of the music of leading films for up to two weeks after the initial release of the music. In spite of being present in diverse regions of India, ENIL has been able to attract listeners everywhere and be the market leader as it has been able to customize its content to 16
  17. 17. local tastes. Radio Mirchi takes care of all these needs in the best way by broadcasting shows keeping in mind the customer needs and their free time(so that they can listen their favorite shows at free time). On this basis, Radio Mirchi segmented their customer (time slots they get free) and targeted them in such a way that no other FM Station could change the bit of positioning done by it. MARKETING MIX The punch line of Radio Mirchi (Mirchi sunnewale always khush) focuses on its customer and the quality of music provided by them. They try to come up with new innovative ideas thereby making their radio the most preferred station with largest listenership. There latest innovation is in the style of radio jockeys. Generally, radio jockeys speak non-stop quite fast entertaining the masses. But there is new RJ named Sudh who talks at a slower pace but in a weird tone. His way of telling jokes attracts people to him. Price & Place are the two factors which has no impact on the customer’s( .i.e. radio listeners) of Radio Mirchi since they don’t pay for listening radio and it is available everywhere(rather in pockets of every person in the form of mobile) Promotion: Radio Mirchi promotes its radio station in different cities in their local language. Following are few examples:  98.3 FM Tagline quot;Radio Mirchi - It's hotquot;...  98.3 FM Tagline quot;Mirchi Sunne Wale Always Khushquot; Started On 23 July 2007.  98.3 FM - It uses the tagline quot;Sakat hot maga!quot; in Bangalore. 17
  18. 18.  98.3 FM - Tagline quot;Radio Mirchi - It's Hotquot;  98.3 FM - It uses the tagline quot;Idhu semmma hot machchi!quot; in Chennai. 98.3 FM - “Idhu semmma hot machchi!quot;   98.3 FM - It user the tagline quot;Gwalior Jhoomequot;  98.3 FM - It uses the tagline quot;Idi chaala hot guru!quot; in Hyderabad.  98.3 FM - It uses the tagline quot;Michi shone j always khushi thake se.quot;  98.3 FM - Tagline - quot;Radio Mirchi - It's Hotquot; / Radio Mirchi - Tikhat Aahe!  98.3 FM - Tagline quot;Radio Michi Shune mon always khush quot; COMPETITVE STRATEGY On the basis of GE Matrix, Radio Mirchi proved to be a leader in Radio industry. Many research also shows that it is a confirm leader, latest by 05th January 2009. In this scenario Radio Mirchi must sustain its position and need to apply some special strategies. We suggest Radio Mirchi…..  To increase prime time advertising rates. As a result clients will get reduce but listenership increases which would later attract clients again.  Since it is a Brand, so give 100 percent to their existing products to maintain its quality and power.  To come up with something related to daily NEWS. It will go to attract that market which is yet not being touch by any private channel. 18

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