Strategic Management Presentations

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Strategies and its evaluation its importance in
current market

• strategies are something which each every
  organization have so going into details we have
  gathered strategies followed by radio mirchi
  comparing it with other fms curently In
  competition and previewing its complete analysis
  of its strategies implementation

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RADIO MIRCHI
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HISTORY

• Radio broadcasting is a Government of India
  monopoly under the Directorate General of All
  India Radio
• established in 1936 and since 1957 also known as
  Akashvani--a government-owned, semicommercial
  operation of the Ministry of Information and
  Broadcasting.
• From only six stations at the time of
  independence, All India Radio's network had
  expanded by the mid-1990s to 146 AM stations

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The changing face of radio over time
Radio the leader in media
No TV
TV the ruling king, Radio only Vividh Bharati
Radio - the dead media
Public broadcaster Slow songs RJs Classical -
Iconic Amin Sayani High incidence of speech
programming
Advent of FM
Revival of Radio
RJs - Becoming staid Old time music Stuck in
the past
AIR FM starts with more hip and interactive
programminghit musicrequest 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
choicesalmost 10 in numberfighting 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
80s early 90s
70s
Late 90s
Early 2000
Current
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POPULAR Rjs
OTHER RJS OF RADIO MIRCHI..
ANMOL
SUREN
JEETURAJ
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• plus a National Channel, the Integrated
  North-East Service (aimed at tribal groups in
  northeast India), and the External Service.

• There are five regional headquarters for All
  India Radio the North Zone in New Delhi the
  North-East Zone in Guwahati, Assam the East Zone
  in Calcutta the West Zone in Bombay and the
  South Zone in Madras.

• AIR began operating in 1936 and the first FM
  service in India started in 1977, private
  participation wasn't allowed until 1993 when the
  government experimented with a daily, two-hour
  slot on the FM channels in Delhi and Mumbai.

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Spontaneous associations with radio
Peaceful atmosphere
Music
Music
Entertainment
No loneliness
Time pass
Relaxation
Good friend
Fun
No tension
Information
Radio Jockeys
Good songs
Stress buster
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BENEFITS OF RADIO TO THE PEOPLE LISTENINNG ARE
AS FOLLOWS -
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4. Peoples attention slips in and out of the
radio
you get to know the traffic update You are
given current affairs newswhat'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 radioand
you sing along with itbut you dont really hear
what the RJs say
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How people use radio weekdays ?
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How people use radio - weekdays
RADIO Part of daily routine Background,
non-intrusive Companion whilst alone Indulgence
for self
RADIO Energising, off-set stress Unwinding Fill
monotonous journey
RADIO Time pass Private moments Energising, pep
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BCG Matrix
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
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The popular taglines in various cities of radio
mirchi are
Delhi "Its Hot" Bangalore Tagline "Sakat hot maga!" Gwalior Tagline "Gwalior Jhoome" Kolkata Tagline "Michi shone j always khushi thake se Vadodara Tagline "Radio Mirchi Shune mon always khush "
Chennai Tagline "Idhu semmma hot machchi!" Nasik Tagline "Mirchi Sunne wale Always Khush" "Garam Ahe!" Hyderabad Tagline "Idi chaala hot guru!" Pune Tagline "Radio Mirchi - Its Hot" / Radio Mirchi - Tikhat Aahe! Thiruvananthapuram Tagline "Sangathi HOT aanu!"
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Ad Revenue Landscape
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INTRODUCTION OF RADIO MIRCHI -

• 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.
• .

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• Before we begin, lets 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.

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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.

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• 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.

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Market Ladder
Strong imagerythat 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 recalledat probed level..no
distinctive imagery
Very new Name at times not spontaneously evoked..
AIR FM
Old and boring
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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
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• ENVIRONMENTAL ANALYSIS
• 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.

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ECONOMIC ? RJs 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.
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Cont.........
? Internet radio is introduced. ?
Modern equipment and highly technical
transmitters are used ? Visually appealing
materials are also associated
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COMPETITIVE ENVIRONMENT
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COMPETITIVE ENVIRONMENT

• Radio Mirchis 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.
• 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

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COMPETITIVE ENVIRONMENT

• Radio Mirchis 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.
• 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

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• 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

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• 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.

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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 Years,
Diwali, R.D.Burmans 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
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SWOT Analysis on Radio Mirchi
Strength
Weakness

• Presence in major cities

• No subscription revenues in radio

• Lack of differentiation between different FM
  radio stations

• High listenership

• High quality studio
• transmission equipment

• High music royalties

• Capital intensive business

Opportunity
Threats

• Benefit from the robust growth
• in the FM radio industry

• Intense competition in the radio
• business

• Internet radio
• Self news shows
• International market

• Loss of listenership in radio business

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Growth Drivers

• GDP Growth rate of 8.7,
• Ad spend growth 20

• Young nation with
• Higher spending Power
• Largest workforce in
• The world

RADIO MIRCHI

• Untapped rural market

Foreign Investment
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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 10 7.3
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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
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Business Strength
9 6
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Leader
GROWTH
IMPROVE
Industrial Attractiveness
TRY HARDER
PROCEED WITH CARE
PHASED WITHDRAWAL
CASH INVESTMENT
DIVEST/ WITHDRAWAL
CASH GENERATION
Selective investment
Invest
Divest
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RADIO MIRCHI EMERGES AS THE LEADER IN 2008 RAM
Radio Mirchi 98.3 FM, Indias 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.
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Strategies

• Expand our footprint
• Under the Phase II Policy, We are successful in
  winning 25 of the radio channels that we bid for,
  we will expand our footprint and cover additional
  markets and regions in India. We also intend to
  explore opportunities to become FM radio
  broadcasters or content providers in
  international markets, either directly or through
  strategic partnerships, arrangements, joint
  ventures or acquisitions

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Leverage our footprint to capture additional
income - We intend to leverage our footprint of
seven operational stations and any other station
that we acquire in future to enhance our
audience base and income. Any expansion of our
footprint would allow us to target a greater
number of potential advertisers in new markets.
Further, any increase in our listenership reach
would allow advertisers to address a larger
audience.
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Continuously invest in brand building and
programming innovation - We intend to maintain
and enhance the leadership position of our radio
stations through continuous innovation, focused
marketing, intensive brand building and
exploiting the interactive nature of FM radio. We
plan to engage current and potential listeners
through on-air as well as off-air activities. We
intend to increase our use of research generated
internally as well as provided by external
agencies to continuously monitor the evolving
needs of our audience and advertisers.
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Exploit additional revenue streams In
addition to our income from airtime sales on our
FM radio channels, we intend to focus on
creating or expanding additional revenue
streams. We have already launched Mirchi
Activation events which are promoted through our
radio channels and enable us to enhance our
revenue from airtime sales as well as attract
new advertisers.
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CONT.
Additional income streams may also include
revenue from SMSs or calls received from our
listeners, or from the sale or licensing of
content to third parties, whether in India or
in international markets. We have also recently
provided consultancy services to anindustrial
group in Bangladesh for setting up radio
stations.
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THANK YOU