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strategies are something which each & everyorganization have so going into details we have
gathered strategies followed by radio mirchi &comparing it with other fms curently In competition andpreviewing its complete analysis of its strategiesimplementation
Strategies and its evaluation & itsimportance in current market
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RADIOMIRCHI
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HISTORY
Radio broadcasting is a Government of India monopolyunder the Directorate General of All India Radio
established in 1936 and since 1957 also known asAkashvani--a government-owned, semicommercialoperation of the Ministry of Information and Broadcasting.
From only six stations at the time of independence, AllIndia Radio's network had expanded by the mid-1990s to146 AM stations
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Early 2000 80s early 90s 70s
Radio the leader in media
Radio - the dead mediaPublic
broadcaster
Slow songs
RJs Classical -
IconicAmin Sayani
High incidence of speech
programming
Radio Theentertainment maestro
Fresh, new, anddynamic..
Music led, speechprogramming
limited to jock-talkand programme
formats built inmusic shows2-3 channels
fighting for marketshare with almost
similarprogramming
M
e d i a P r o m i n e n c e
Late 90s Current
RJs -Becoming
staid
Old timemusic
Stuck in thepast
AIR FM startswith more hipand interactive
programminghitmusicrequest
shows.dedications
Revival of RadioAdvent of FM
TV the ruling king, Radio onlyVividh Bharati
No TV
Advent of Private Channels -2-3 stations
Private Radio Platform.buzzingwith choicesalmost 10 in
numberfighting for differentiation,yet to go niche
Small differences with non-stopmusic, English music...TV stars as
RJs...mood led programming...etc
The radio market is nowvirtually unrecognisablefrom the time when theBBC was dominant
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POPULAR Rjs
SUREN JEETURAJ ANMOL
& OTHERRJS OFRADIOMIRCHI.
.
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AIR began operating in 1936 and the first FMservice in India started in 1977, private participationwasn't allowed until 1993 when the governmentexperimented with a daily, two-hour slot on the FMchannels in Delhi and Mumbai.
There are five regional headquarters for All India Radio:
the North Zone in New Delhi; the North-East Zone inGuwahati, Assam; the East Zone in Calcutta; the WestZone in Bombay; and the South Zone in Madras.
plus a National Channel, the Integrated North-East
Service (aimed at tribal groups in northeast India), andthe External Service.
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MusicMusic
Relaxation
Fun
Information
Entertainment
Time pass
No tension
Radio Jockeys
Stress buster
Peaceful atmosphere
Good songs
No loneliness
Good friend
Spontaneous associations with radio
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2. Radio is hyper-local
4. Peoplesattention slips in
and out of theradio
1. Music andentertainment are
key
Information/ traffic updates
Songs ..for all
Happenings .. youngsters
Tips
Conversation
Dial Ins/ Contests
Radio jockeys
Jokes
3. Listening habitsled by time and
mood
Lively songs during day,
slow songs in evening
5. Relationshipwith radio varies by
segment
Students: companionamong crowd
companion withoutintruding on space
Housewives: companion whilst
alone, connection tooutside world
Professionals: background filler withpoints of engagement
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
you know the songs that arecoming on radioand you sing
along with itbut you dont really hear what the RJs say
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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 thebackground
Self Self
Onroute
Postreturn
InBack-ground Out of home activity.
Family
6 a.m 9a.m
7-8 p.m 10 p.m10a.m
Self (especially if unmarried)
Ontheroad
Onthe
road
In thebackground
Self +
kidsFamily
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 - weekdays
RADIO:
Part of daily routineBackground, non-intrusive
Companion whilst alone
Indulgence for self
RADIO:
Time pass
Private moments
Energising, pep
RADIO:Energising, off-set stress
Unwinding
Fill monotonous journey
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BCG Matrix
High Low
High
Low
ProductSalesGrowth Rate
Relative MarketShare
Radio Mirchi,Times BusinessSolution
Times Internet Limited,OOH, ABSL 360 DegreesMirchi movie ltdTimes music, zoom,
Times Now
WorldWideMedia,PublishingDivision
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The popular taglines in various citiesof radio mirchi are
Delhi
"Its Hot"
Bangalore
Tagline "Sakathot maga!"
Gwalior
Tagline"GwaliorJhoome"
Kolkata Tagline
"Michi shone jalways khushithake se
Vadodara Tagline
"Radio Mirchi Shunemon always khush "
Chennai
Tagline "Idhusemmma hotmachchi!"
Nasik Tagline
"Mirchi Sunnewale AlwaysKhush"&"GaramAhe!"
Hyderabad
Tagline "Idichaala hotguru!"
Pune Tagline
"Radio Mirchi -It`s Hot" / RadioMirchi - TikhatAahe!
Thiruvananthapuram
Tagline "Sangathi HOTaanu!"
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Ad Revenue
Landscape
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The brand RADIO MIRCHI 98.3FM. it isowned by the company ENTERTAINMENT
NETWORK INDIA LTD.(ENIL) ENIL ispromoted by Bennett, Coleman & Co.Limited (BCCL)
which is one of the largest media andentertainment companies in India, operatingin various media segments such as printmedia and television broadcasting..
INTRODUCTION OF RADIO
MIRCHI :-
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Before we begin, lets know a littleabout Radio Mirchi.
The original avatar of Radio Mirchi was Times FM, whichis probably the most famous radio in India which began itsoperation in 1993.
Until 1993, AIR, a government undertaking, was the onlyradio broadcaster in India. The government then took theinitiative to privatize the radio broadcasting sector. It sold
airtime blocks on its FM channels to private operators, whodeveloped their own program content.
The Times Group operated its brand, Times FM, till June1998. After that, the government decided not to renew
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In 2000, the government announced the auction of 108FM frequencies across India. ENIL won the largest numberof frequencies, thereby acquiring a nationalfootprint, and becoming the only commercial FM
broadcaster present in all 4 Metros, with an exclusivepresence in 7 cities.
contracts given to private operators.
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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 marketsof Bangalore, Hyderabad, Jaipur, Patna &Jalandhar thereby taking the tally to 12 stationsacross India.
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Market Ladder
Big FM
Very newName at times not
spontaneously evoked..
Radio OneNot spontaneouslyrecalledat probedlevel..no distinctive
imagery AIR FM
Old and boring
Fever FM
High awarenessPopular among
youngsters enjoying high-tempo and English music
Hit FM
New but fast gainingpopularity
Radio City
Growing oldPopular once upon a timebut losing out as not very
dynamic
Red FM
Growing steadilyPlaying enjoyable, newmusic and also funprogramming Radio Mirchi
Strong imagerythat of spicy, young anddynamic
Well known RJs and programmes Plays music resonating with young generation
Respondents placed stations on a ladder, based ontheir perception of how successful they are
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CORPORATE OBJECTIVE
The goal is to sustain the position of aLEADER in the market, in terms of
Annual growth, Market share, competitionand customer satisfaction
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ENVIRONMENTAL ANALYSIS
1. EXTERNAL ENVIRONMENTPEST ANALYSIS
POLITICALTo enter in the industry, high one time entry fee has to
be givenThere is no FDI allowed in this sectorUp to 15 % annual hike In licensee feeOnly 10 year of license is valid.
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ECONOMICRJs mainly attracted by package that has been
offered to them by competitors.
SOCIALShowing responsibility towards various NGO
Help in June 2005 Mumbai flood.
TECHNOLOGICAL
Before 2000, there were only two music stations, butafter that radio industry came up with private Channelswith different frequencies. Today we have 10 musicstations.
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Internet radio is introduced.
Modern equipment and highly technicaltransmitters are used
Visually appealing materials are also associated
Cont.........
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COMPETITIVE ENVIRONMENT
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COMPETITIVE ENVIRONMENT
Radio Mirchis high end competitor FEVER 104 FM- wasevaluated on several key factors, such as type of music theyboth play, promotional activities, product offering and overallpresence in the competitive arena.
Radio Mirchi is facing a high competition from FEVER104FM. 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 Hindimusic, 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- wasevaluated on several key factors, such as type of music theyboth play, promotional activities, product offering and overallpresence in the competitive arena.
Radio Mirchi is facing a high competition from FEVER104FM. 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 Hindimusic, 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 quitelow .
Secondly, the advertisers and other brands thatassociated with Radio Mirchi are loyal to them
Plus, Almost 53 per cent of daily listeners of RadioMirchi choose not to tune in to any other radio station.That makes the market environment attractive for RadioMirchi
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CUSTOMER ENVIRONMENT
The target market for the Radio Mirchi has normally beendefined in five different stages:
DEMOGRAPHIC: This market shows the greatest
potential, as AGE factor dominant other factor in RadioIndustry. Secondly, GENDER factor.
GEOGRAPHIC: Currently, Radio Mirchi has a presencein 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 isvery loyal to them as per survey mention above.
SITUATIONAL: For many different occasions Mirchicame up with unique game or any kind of attractiveshow. For egs. New Years, Diwali, R.D.Burmans
birthday etc. customers are highly attracted to all theseinnovative 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 keeptrack record of latest and customers demand
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Strength Weakness
Opportunity Threats
Presence in major cities
High listenership
No subscription revenues in radio Lack of differentiation between different FMradio stationsHigh music royalties
Capital intensive business
Benefit from the robust growthin the FM radio industry
Intense competition in the radiobusiness
Loss of listenership in radio business
High quality studio &
transmission equipment
Internet radioSelf news shows
International market
SWOT Analysis on Radio Mirchi
G h D i
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Growth Drivers
RADIOMIRCHI
GDP Growth rate of 8.7%,Ad spend growth 20%
Young nation withHigher spending PowerLargest workforce inThe world
Untapped ruralmarket
Foreign Investment
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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
GE MATRIX
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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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Leader GROWTH
TRY HARDER
CASHINVESTMENT
PROCEED WITHCARE
IMPROVE
DIVEST/WITHDRAWAL
PHASEDWITHDRAWAL
CASHGENERATION
Business Strength
I n d
u s t r i a
l
A t t r a c t i v e n e s s
9 6 3
Invest Selectiveinvestment Divest
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RADIO MIRCHI EMERGES ASTHE LEADER IN 2008: RAM
Radio Mirchi 98.3 FM, Indias hottest Radiostation has been leading the race week on week,all round the year 2008. The recently declaredRAM results for week 50 has acclaimed thatRadio Mirchi 98.3 FM has topped the charts and
has established itself as the No #1 radio station inDelhi.
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Strategies
Expand our footprint
Under the Phase II Policy, We are successful inwinning 25 of the radio channels that we bid for, we
will expand our footprint and cover additional marketsand regions in India. We also intend to exploreopportunities to become FM radio broadcasters orcontent providers in international markets, eitherdirectly or through strategic partnerships,arrangements, joint ventures or acquisitions
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Leverage our footprint to captureadditional income :-
We intend to leverage our footprint of sevenoperational stations and any other station that we
acquire infuture to enhance our audience base and income.Any expansion of our footprint would allow us totarget a greaternumber of potential advertisers in new markets.Further, any increase in our listenership reachwould allow advertisers to address a larger
audience.
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Continuously invest in brand buildingand programming innovation :-
We intend to maintain and enhance the leadershipposition of our radio stations through continuousinnovation, focused marketing, intensive brandbuilding and exploiting the interactive nature of FM radio. We plan to engage current and potentiallisteners through on-air as well as off-airactivities. We intend to increase our use of research generated internally as well as providedby external agencies to continuously monitor the
evolving needs of our audience and advertisers.
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Additional income streams may also includerevenue from SMSs or calls received from ourlisteners, or from the sale or licensing of contentto third parties, whether in India or in
international markets.We have also recently provided consultancyservices to anindustrial group in Bangladesh for
setting up radio stations.
CONT.
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THANK
YOU
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