strategic management pres p1263119668lzhnv

8/2/2019 Strategic Management Pres P1263119668lzHnv

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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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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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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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