Radio+Mirchi

It’s Hot!

2

It’s Hot!

CONTENT No .

Chapter

Page.n o 03 04 07 07 07 08 09 10 10 11 12 12 13 14

1. 2. 3. à à à à à à à à à à à

Preface Acknowledgement Chep-1-INTRODUCTION A) Introduction B) History C) Nature of business D) Major Awards E) Registered Office F) BOD G) Mgt. Structure H) Location I) Process of Broadcastings J) Name of Programmes and RJs K) Other companies of TIMES

4.

Chep-2- INTRODUCTION TO FM INDUSTRY A) Industry detail B) FM Growth C) FM stations D) FM Future E) Industry size F) Key Players G) Major Players H) Key forces to development of industry

15

Chep-3- SEGMENTATION, POSITIONNING, TARGETING

23

à à à à à à à à 5.

3

15 16 18 19 20 21 22 22

It’s Hot!

à à à -

A) SEGMENTATION a) Meaning b)Types of segmentation B) TARGETING a) Meaninig b) Levels of Targeting C) POSISIONING a) Meaning b) Posisioning Statement c) Brand Position

23 23 23 26 26 26 27 27 27 28

6.

Chep-4-INTRODUCTION TO SERVICE MARKETING AND MARKETING OF RADIO MIRCHI A) Introduction B) Meaning C) Characteristics D) Service Mkt. In Brief a. Product b. Price C. Place d. Promotion e. people f. Process g. Physical Evidence CHEP-5- SWOT ANALYSIS A) STRENGTH B) WEAKNESS C) OPPORTUNITY D) THREATS

29

CONCLUSION BIBLIOGRAPHY

50 51

à à à à 7. à à à à 8. 9.

4

29 29 29 30 30 34 38 38 40 41 42 46 46 47 48 48

It’s Hot!

CHEP-1-INTRODUCTION ♦ INTRODUCTION: ⇒ Radio offers reach, frequency, impact and economical advertising solutions for advertisers. Radio advertising rates are low on cost-per-thousand basis as compared to other media Radio forms an excellent complementary medium to television and print. It can extend the reach of a campaign, focus the delivery, and enhance or reinforce a message. Radio speaks to its audience in a highly personal manner. Listeners build a relationship with their local radio personalities - a rich resource into which the community can tap. Unlike television, radio does not require any commissioned original content. Most of the content on radio is live. The biggest content - music - requires a royalty which is payable to the relevant societies viz. Phonographic Performance Limited (PPL) and Indian Performing Rights Society (IPRS) and certain music companies. The prime time for radio listenership differs from prime time television viewing. Radio listenership peaks in the morning, afternoon and late night time slots, while Television viewership reaches its peak during the night slot. Listenership of radio as indicated by the Indian Listenership Track (ILT) survey is the highest as a percentage among the younger audiences (15-29) and the SEC A audiences. The research indicates that almost 70% of SEC A audiences listens to radio everyday. This is the audience most sought by advertisers.

♦ HISTORY ⇒ In 2000, where the Government formally announced auction of 108 FM frequencies across 40 cities, Entertainment Network (India) Limited won the largest number of licenses, thereby acquiring a national footprint, and becoming the only commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities and Radio Mirchi was born.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 therby taking the tally to 12 stations across India ⇒ Their Company was incorporated under the name of "Entertainment Network (India) Limited" pursuant to a Certificate of Incorporation No. 11-120516 dated June 24, 1999 issued by the Registrar of Companies, Maharashtra. ⇒ Pursuant to a resolution passed in the meeting of our Board on June 3, 2000 the Registered Office of our Company was shifted from 22, Ashoka Apartments, Nepean Sea Road, Mumbai - 400 006 to The Times of India Building, Dr. D. N. Road, Mumbai - 400 001. Further vide a resolution passed in the meeting of our

5

It’s Hot! Board on May 29, 2003 the Registered Office of our Company was further shifted to 4th, Floor, Matulya Centre, A- Wing, Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013.

⇒ History of the RADIO MIRCHI YEAR October 2001 December 2001 April 2002 May 2002 April 2003 May 2003

PLACE Launched our radio broadcasting station in Indore. Launched our radio broadcasting station in Ahmedabad. Launched our radio broadcasting station in Mumbai. Launched our radio broadcasting station in Pune Launched our radio broadcasting station in Delhi Launched our radio broadcasting station in Kolkata.

May 2003

Launched our radio broadcasting station in Chennai. . Launched our radio broadcasting stations in Banglore, Jaipur and Hyderabad Launched our radio broadcasting stations in Patna & Jalandhar

April 2006 April 2007

♦ Nature of Business ⇒ We are the largest private FM radio broadcaster in India based on the number of operating stations and listeners. We operate FM radio broadcasting stations through the brand Radio Mirchi in ten Indian cities. We are the only company with private FM radio stations in all four metropolitan cities of Delhi, Mumbai, Chennai and Kolkata. We are also the only private FM radio broadcaster in the cities of Ahmedabad, Indore and Pune. ⇒ Based on the National Readership Survey - 2005 weekly listenership data, Radio Mirchi reached 36.7 million listeners across India, which was the highest among all private FM radio stations in India. Further, based on ILT Wave 8 data for which field-work was conducted from Janauary 15, 2006 to March 31, 2006 and which calculates listenership for the age group above 12 years, our total daily reach in the metropolitan cities of Mumbai and Delhi was 5.9 million listeners. Our brand, Radio Mirchi, is well recognized and we have won seven of the eight awards received by radio broadcasters from the Radio and Television Advertising Practitioner's Association of India in 2005. We have also won the gold medal for "Best Activity Generating Brand Loyalty" as well as the bronze medal in "Best Activity Generating Brand Awareness and Trial" at the 2004 Promotion Marketing Awards of Asia.

6

It’s Hot!

♦ Major Awards ⇒ We have received several awards from leading industry bodies such as RAPA and advertising clubs in Chennai and Kolkata, for our radio broadcasting stations at Mumbai, Delhi, Chennai and Ahmedabad. Some of these are listed below:

Year

Instituted By

Award

Won By

200304 2004

Commonwealth Broadcasting Association. Promotion Marketing Awards of Asia (PMAA) 2004.. Promotion Marketing Awards of Asia (PMAA) 2004.

Highly Commended in Commonwealth Short Story Competition - Ms. Suchitra Ramadurai Gold in Best Activity Generating Brand Loyalty

Radio Mirchi, Chennai

Bronze in Best Activity Generating Brand Awareness and Trial

Radio Mirchi, Delhi

------

-------------------------

NATIONAL----------

----------------------

2002

28th RAPA Awards - Radio and TV Advertising Practitioners Association of India. 28th RAPA Awards - Radio and TV Advertising Practitioners Association of India. 29th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 29th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 29th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 29th RAPA Awards -Radio and TV Advertising Practitioners Association of India. Spark 2004 Advertising Club, Chennai. Spark 2004 Advertising Club, Chennai. 30th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 30th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 30th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 30th RAPA Awards -Radio and TV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India.

Best Jingle in English-Radio Mirchi

Radio Mirchi, Mumbai

Best Station Promo in Hindi-Prof. Kawas

Radio Mirchi, Mumbai

Best Radio Jingle in Hindi-Mumbai Meri Jaan

Radio Mirchi, Mumbai

Special Promo in Malayalam-Onam Festival

Radio Mirchi, Chennai

Special Promo in Tamil -Kirukkal Cricket Contest

Radio Mirchi, Chennai

Special Promo in Tamil -Stationality -Nambiar

Radio Mirchi, Chennai

Bronze for Station Promo - Children's Day

Radio Mirchi, Chennai

Bronze for Radio Spot -Actor Surya

Radio Mirchi, Chennai

Best Radio Jingle Script in Gujarati for Agni Dora

Radio Mirchi, Ahmedabad

Best Radio Spot Script in Gujarati for Gujarat Samachar

Radio Mirchi, Ahmedabad

Best Radio Jockey - Ms Sayema Rehman

Radio Mirchi, Delhi

Best Radio Jingle in Tamil-Hello Chennai

Radio Mirchi, Chennai

Radio Jingle-English, Pink jingle

Radio Mirchi Mumbai

Radio Jingle- Hindi, Hutch Odhani

Radio Mirchi Ahmedabad

2004

2002 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2005 2005

7

Radio Mirchi, Delhi

It’s Hot! 2005 2005 2005 2005 2005 2005 2005

2005 2005

♦

31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. 31st RAPA Awards -Radio andTV Advertising Practitioners Association of India. ITC Kolkota Trophy 2005 Consumer Connect Awards,Advertising Club Kolkota. Spark 2005 Advertising Club, Chennai. Spark 2005 Advertising Club, Chennai.

Radio Jingle Script-Hindi- Park Street

Radio Mirchi Pune

Radio Spot Script –Hindi- Ab Tak Atthavan

Radio Mirchi _Delhi

Radio Spot Script-Bengali-Show Promo

Radio Mirchi-Kolkata

Radio Spot Script-Tamil- Gettimelan on Mirchi Chinna Thirai

Radio Mirchi Chennai

Radio Public Service - Mirchi Gandhi Jayanti

Radio Mirchi Ahmedabad

RAPA D.S Mittle Trophy -Campaign of year on Radio

Pink Hutch –Radio Mirchi

Silver for Promo "Bappi Da Gyan"

Radio Mirchi, Kolkata

Silver for Public Service Announcement -Actor Vijay

Radio Mirchi, Chennai

Silver for Public Service Announcement -Actor Vikram

Radio Mirchi, Chennai

Registered office

⇒ 4th, Floor, Matulya Centre, Wing, Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013.

♦ Board Of Directors ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒

Mr. Vineet Jain : Chairman & Non- Executive Director Ms. Rama Bijapurkar :Non-Executive and Independent Director Mr. Ravindra Dhariwal : Non-Executive Director Mr. A. P. Parigi : Managing Director and CEO Mr. N.subramaniam :CFO Mr. Rajesh Kurup :SVP.people innovation Mr. Prashant Panday : Deputy Chief Executive Officer Mr. Farid Kureshi :COO, Times OOH Mr. Nandan Srinath :COO,ENIL India Mr. G. Sharath Chandra : COO - ENIL International Mr. Tapas Sen : Executive Vice President - Programming Mr. Nataraja Thiagarajan :Chief Technical Officer

8

It’s Hot!

♦ MGT. Structure

01000900000378000 00002001c00000000 00040000000301080 0050000000b020000 0000050000000c023 a0e520f040000002e 0118001c000000fb0 21000070000000000 bc020000000001020 22253797374656d00 0e520f0000e4c7110 072edc63020e51600 0c020000520f00000 40000002d01000004 000000020101001c0 00000fb029cff0000 00000000900100000 0000440001254696d 6573204e657720526 f6d616e0000000000 00000000000000000 0000000040000002d 01010005000000090 2000000020d000000 320a5a00ffff01000 40000000000550f36 0e205f2d000400000 02d01000003000000 0000

9

It’s Hot!

♦ Location YEAR October 2001 December 2001 April 2002 May 2002 April 2003 May 2003 May 2003 April 2006 April 2007

PLACE Launched our radio broadcasting station in Indore. Launched our radio broadcasting station in Ahmedabad. Launched our radio broadcasting station in Mumbai. Launched our radio broadcasting station in Pune Launched our radio broadcasting station in Delhi Launched our radio broadcasting station in Kolkata. Launched our radio broadcasting station in Chennai. Launched our radio broadcasting stations in Banglore, Jaipur and Hyderabad Launched our radio broadcasting stations in Patna & Jalandhar

♦ PROCESS OF BROADCASTING: 1) RESEARCH FOR SONGS: ⇒ The process of production start of the research for song. They do marketing research base on observation,interview,quastinnare to know ehat are the different population like by the different category of the listener. In this research the different grades are given to the song according to the populity. The grade range is from A+ to D. A+ stands for most popular & the hot song. D stands for the least popular song. They played A+ songs in radio approximately 17 times in a day. In the radio mirchi the research is done at central level. They are doing research in the colcutta and applicable to all India. 2)PROGRAMMING OF SONGS: ⇒ They have different programme like HELLO AMDAVAD , BUMPAR TO BAMPAR, PURANI JEANS, DR.LOVE, KHOOBSURAT. Depending upon programme which grade song is to play during the programme. In HELLO AMDAVAD, They play maximum A+ or A category song. They have a software which is called the Radio Computing Software(RCS). In this software name of song,grade of song,time when it is to play,duration of songs,etc.. are already 10

It’s Hot! assign. They have to put just a song and everything done by software.they prepare advance programming for one month. This software in clued songs,jingles,advertisement,cricket updates,traffic beats,etc.. according to the pre-decided sequence RJ needs to do just a click. 3)MIXING: ⇒ In RCS mixing of the songs, important updates, announcement, jingle, advertisement etc.. mixed according to the programme. They are mixing songs that room is called production room. In the production room they have a mixer named OY2 mixer which is costing 10 lacs of rupees. 4)BROADCASTING: ⇒ For broadcast propose radio mirchi they are using ultramodern, state of the art machinery and the equipment to ensure good quality & unentred to broadcast of the songs. According to information shared by a company executive each equipment costing lacks of rupees. Radio mirchi they have a separate room for this high-tech equipment where they are logically and technically placed. Radio mirchi have a own tower. This equipment broad cast analogue signal to a tower, which will received the signal encode it in the digital form and the transmit in to the general public.

• NAMES OF THE MAIN PROGRAMMES: NAME OF PROGRAMME Hello Ahmedabad Khoobsurat Total filmi Bumper To Bumper Purani jeans Dr. love Jyanti Jokham

NAME OF RADIO TIME OF SHOWS JOKIES(RJ) Dhwanit 7 to 11 Megha 11 to 2 PM Ankit 2 to 5 PM Vishal 5 to 9 PM Ankit Ekta Jyanti

9 to 11 11 to 1 On Sunday 3 to 6 pm

11

It’s Hot!

♦ OTHER COMPANIES: ⇒ The radio mirchi belongs to the Entertainment Network India Limited (ENLI) group. ENLI is a part of the TIMES GROUP. The Times group also having different companies like…..

1. The Times of India, India's (and the world's) largest English broadsheet daily 2. The Economic Times, India's largest financial daily, and the world's second largest after The Wall Street Journal Navbharat Times, the largest Hindi Daily in Delhi and Bombay 3. Mumbai Mirror India's largest circulated compact newspaper, it comes with times of India and separately. 4. BANGALORE MIRROR, Bangalore's first morning compact daily 5. The Times of India - Kannada, India's (and the world's) largest English broadsheet daily, now in Kannada 6. Times Infotainment Media Limited & Entertainment Network India Limited that together control 7. Radio Mirchi National network of Private FM stations 8. 360 Degrees Events 9. Times Outoors Outdoors 10.Mirchi Movies Limited Filmed Entertainment. 11.Indiatimes portal 12.TimesofMoney Ltd[1] - an online payments portal specializing in remitting money to India 13.Times Global Broadcasting Limited 14.Times Now A News Channel 15.Times Business Solutions 16.Times Jobs 17.Simply Marry 18.Magic Bricks.

12

It’s Hot!

CHEP-2-INTRODUCTION INDUSTRY

TO

FM

♦ INDUSTRY DETAIL: 1. INDIAN FM INDUSTRY: ⇒ Brief History of Radio Broadcasting in India 1935 1977 1993 1999 2001 2005

Radio broadcast begins with AIR. First FM service in Madras. AIR sells time slots for private FM radio broadcasting in five cities. Privatization of FM - Phase I Policy. Licenses given to private radio broadcasters. Announcement of Phase II Policy of privatization of FM.

♦ Privatization of FM Radio in India ⇒ Internationally, FM radio broadcasting is the preferred mode of radio transmission due to its high quality stereophonic sound. In March 2000, the Government invited private sector into FM radio broadcasting by opening up the frequencies in the FM band (87.5-108 MHz). In this Phase I Policy of FM radio privatization, private operators were invited to bid for a 10-year license to set-up and operate FM radio stations. The original plan was to set-up 108 FM radio frequencies across 40 cities. 101 bids were received, aggregating to a license fee of approximately Rs.4.25 billion. [Source:

13

It’s Hot! FICCI Ernst & Young Report, 2004]. The unusually high license fee structure and year-on-year annual escalations of 15% hampered the FM radio growth. The Government's Tenth Plan stipulates that private operations are to be encouraged to provide FM radio services in metros and small cities. They recently announced Phase II of the privatization of FM radio, which is an initiative in line with the roadmap laid out in the Tenth Plan. A total of 338 channels in 91 cities across the country would be made available for bidding by Indian private companies.

2. FM INDUSTRY GROWTH: ⇒ Driven by the launch of 50 new private FM radio stations as part of government’s second phase expansion plans, the FM radio industry has registered 60 per cent growth in 2006 within the media and entertainment sector. ⇒ FM radio generated advertising revenue in excess of Rs 500 crore in 2006, according to radio industry estimates. These numbers will be part of the upcoming FICCIPricewaterhouseCooper report on media and entertainment sector which will be released in Mumbai next month, industry sources said. ⇒ The media and entertainment sector will continue to grow at 20-22 per cent. Last year, the FICCI-PWC report had indicated 32 per cent growth for the FM radio industry on a base of Rs 300 crore revenue generation. This was based on second phase rollout of private FM radio expansion plans by the Ministry of Information and Broadcasting. ⇒ “The boom in FM radio is driven by the anticipation of an increase in the foreign direct investment (FDI) cap from current 20 per cent to 26 per cent or even more and the permission to broadcast news and current affairs,” a media analyst said. ⇒ The shift to revenue-sharing arrangement in the second phase is also responsible for the high growth, the analyst added. Growth Drivers: ⇒ Network Expansion ⇒ After implementation of Phase II Policy of FM radio privatization, private sector FM radio is likely to be available in many more cities and will enable advertisers to reach out to a larger consumer base, using radio as a medium. This could result in radio getting a larger share of the advertising spends.

14

It’s Hot!

⇒ Availability of Listenership Data ⇒ As radio expands, the availability of organized research providing segmented data on audience listenership is likely to increase advertisers' comfort with the medium. ⇒ Rationalization of License Fees ⇒ The shift from a fixed license fee to the revenue share model in Phase II Policy of private FM broadcasting is expected to result in more viable radio business models and thus drive growth for the FM radio broadcasting industry.

⇒ Local Advertising ⇒ Globally, the local retail segment constitutes a large part of radio's advertising income. As per the CII-KPMG report, while local advertising contributes 70% of radio revenues in the United States of America, in India, the share of local advertising is only about 8% of radio revenues. Ideally, a localized medium like radio can be effectively used for local-level promotions and region-specific advertising campaigns, apart from being bundled as part of cross-media promotion strategies. This would make the medium more attractive for a large number of local advertisers, rather than being dependent on a concentrated set of national advertisers.

⇒ Other Opportunities ⇒ New opportunities in the radio business may arise from technological changes and other regulatory changes.

⇒ Satellite Radio / Digital Audio Broadcast ("DAB") ⇒ Satellite radio is a radio service that provides radio signals directly from satellites. DAB provides digital radio through a terrestrial broadcast format. Satellite radio subscribers are also able to receive upto 100 radio channels featuring high quality music, news, weather, sports, talk radio. Currently, World Space India Private Limited is the only player of Satellite radio in India, providing about 40 radio channels. As Satellite radio becomes routinely available in automobiles, subscribes can grow. Satellite radio is now tapping into equipment players also. DVD players and sound equipment manufacturers may install Satellite radio technology. Satellite radio is primarily subscription driven and the costs of access equipment are large at present.

15

It’s Hot!

⇒ Internet Radio ⇒ As internet connections have become faster and software for cyberspace has become more sophisticated, audio listeners have benefited. Free, downloadable audio players for computers have made listening to audio via the computer possible. Traditional over-the-air radio stations have begun to take advantage of the new software, as well as the internet's ability to deliver graphics, data and video at the same time, to enhance their audiences' listening experience. The internet has also extended the reach of radio stations beyond their own markets, which was determined by the strength of their broadcast signals, to the entire world.

⇒ New Opportunities through Regulatory Changes ⇒ These could include privatization of AM, expansion of FM beyond the 338 stations envisaged in Phase II Policy, multiple frequencies for same player in one city as well as opportunities in International markets.

3. FM STATIONS: ⇒ India is all set to add more FM radio stations in 92 new cities under the third phase of FM radio expansion .The Indian radio sector , according to according to a study conducted by the Federation of Indian Chambers of Commerce & Industry and PricewaterhouseCoopers is poised to become a Rs 1,200-crore industry by 2010. ⇒ Telecom Regulatory Authority of India (TRAI) on Tuesday released a consultation paper on “Issues relating to 3rd Phase of Private FM Radio Broadcasting”. ⇒ Due to the huge growth of FM Radio Industry and demand for further expansion of FM Radio coverage, Government is considering expansion of FM Radio to other cities through private agencies under Phase-III. In view of this the Government has sought the recommendations of TRAI under Section 11(1) (a) of TRAI Act, 1997 on the modifications to be incorporated in the policy for FM radio broadcasting Phase-III. ⇒ FM Radio broadcasting due to its versatility is considered as main medium to provide entertainment, information and education. FM Radio broadcasting was first launched in the country in 1999 and subsequently 21 private channels became operational. Based on the popularity of FM Radio among the masses, Government offered 337 new channels for bidding by private agencies covering additional cities and towns in the Phase –II in July, 2005. As an outcome of this,

16

It’s Hot! Letters of Intent (LOI) for 245 channels were issued and 136 channels have become operational. The 97 vacant slots of this phase were put on re-bid recently. It is expected that FM Broadcasting coverage will soon be extended to cover a total of 92 cities. ⇒ A consultation paper on “Issues relating to 3rd Phase of Private FM Radio Broadcasting” has been prepared to initiate consultation process. This paper analyses various issues related to FM Radio broadcasting such as expansion of FM Radio to smaller cities including migrate from city permission concept to district permission concept, number of channels to be made available in a city, FDI cap, networking guidelines, allowing news & current affairs program on FM radio, level playing field between FM broadcasters vis-à-vis Satellite Radio broadcasters, change in ownership permission and automatic renewal of permission etc. ⇒ Apart from this a number of technical issues relating to co-channel spacing and collocation of FM broadcast transmitters have been raised for deliberation. The International experiences have been compiled to get better understanding of present scenario in other countries. ⇒ India’s FM radio industry , according to a The Telegraph report ,is in its infancy and “needs protection. FM industry representatives feel that advertising on radio is not experiencing any significant growth. From its current 2 per cent share it is set to touch 4-5 per cent of the total mass media advertising in future. Only a couple of FM Operators in India i.e. Big FM and Radio Mirchi are making profit from the radio business . Radio industry is bleeding heavily in India.

4. FM FUTURE: ⇒ The Indian radio sector may become a Rs 1,200-crore industry by 2010, according to a study conducted by the Federation of Indian Chambers of Commerce & Industry and PricewaterhouseCoopers. ⇒ The present annual advertisement budget for media in India is around Rs 12,000 crore and the FM radio's share in it is a meagre 3%. ⇒ The share would grow substantially over the next 10 years, as at least 338 FM channels will be operational by then, the study says. ⇒ According to a Kolkata-based FM executive, it was a matter of experience for advertisers as they spent money for publicity of their products or services during 200304, when four private FM channels were simultaneously launched in Kolkata. ⇒ But soon advertisers saw merit in it. "We often come across clients who want to make deals for an unlimited period. But, it is not our policy," a Red FM official said. ⇒ Amar and Power FM had clocked revenues of Rs 6 crore each in 2005-06, while it was 17

It’s Hot! Rs 10 crore each during the previous fiscal. ⇒ Radio Mirchi had earned Rs 5 crore in 2005-06 from the Kolkata market. Its total revenue from seven stations (New Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Pune and Indore) was Rs 46 crore in 2006-07. ⇒ For the year to March 31, 2007, Red FM's revenue was Rs 8 crore from Kolkata, which is Rs 3.2 crore higher compared with 2005-06. ⇒ On the other hand, the Indian national public service broadcaster, All India Radio, is suffering from acute financial crunch owing to its age-old mind-set and lack of aggressive marketing strategy. As a result, AIR's FM channels—FM Rainbow and FM Gold—do not get enough patronage of advertisers.

♦ INDUSTRY SIZE:The radio industry revenues for fiscal 2005 are estimated at Rs. 3.22 billion, and are expected to grow by 14.3% to Rs. 3.68 billion by fiscal 2006. (Source: Central Statistical Organisation, "Advertising Expenditure Forecast", October 2004, ZenithOptimedia.). The state broadcaster - All India Radio ("AIR") - contributed 55% of the industry revenues in 2004, which has decreased from 100% in 2001. (Source: "Indian Entertainment Industry- An Unfolding Opportunity", FICCI-PWC Report, March 2005.)

Source: Advertising Expenditure Forecasts, October 2004 by ZenithOptimedia

The share of Indian radio in the overall advertising pie at ~3% is much lower than various developed and developing economies worldwide.

18

It’s Hot!

Source: Advertising Expenditure Forecasts, October 2004 by ZenithOptimedia

Globally, the share of radio in the advertising pie is around 5% in countries where the medium is still in a growth phase and around 10-12% of the advertising pie when the medium reaches a mature phase.

 KEY PLAYERS: Player (Brand Name) Radio Mirchi

No. of Stations 7

Radio City Suryan FM Red FM Go FM Visakha Aamar FM Power FM Player (Brand Name) Radio Mirchi

4 3 3 1 1 1 1 No. of Stations 7

Radio City Suryan FM Red FM

4 3 3

Cities of operations Delhi. Mumbai, Chennai, Kolkata, Indore, Ahmedabad, Pune Mumbai, Delhi, Bangalore, Lucknow Chennai, Coimbatore, Tirunelvelli Mumbai, Delhi, Kolkata Mumbai Visakhapatnam Kolkata Kolkata Cities of operations Delhi. Mumbai, Chennai, Kolkata, Indore, Ahmedabad, Pune Mumbai, Delhi, Bangalore, Lucknow Chennai, Coimbatore, Tirunelvelli Mumbai, Delhi, Kolkata

19

It’s Hot! Go FM Visakha Aamar FM Power FM

1 1 1 1

Mumbai Visakhapatnam Kolkata Kolkata

 MAJOR PLAYERS Player

Total Stations

Adlabs South Asia/Kal Radio ENIL Radio City Dainik Bhaskar Bag Films Zee/Century Thanthi/Today/Midday HT/Positive/Raj Pat Red FM

44 40 32 20 17 10 8 7 4 3

Of the top 13 towns (A + and A Category) 8 9 13 11 4 0 0 1/3/7 40/1 3

♦ KEY FORCES TO DEVLOPMENT OF FM INDUSTRY: i.Rapid economic growth of the country on the back of economic liberalization and deregulation ii.Increase in consumer prosperity iii.Entry of global consumer companies with large advertising budgets iv.Higher degree of competitive intensity among consumer companies; and v.Growth in media vehicles leading to increase in media penetration.

20

It’s Hot!

CHEP-3-SEGMENTATION,TARGETING, POSITIONING 1) SEGMENTATION: ♦ MEANING:⇒ “Segmentation can be defined as a dividing or classifying the consumer according to their needs and wants it can be according to Geographic reason, Demographic profile, Socio logy or personal factors”

♦ TYPES OF SEGMENTATION:A. Geo-graphic segmentation: ⇒ Geographic segmentation calls for dividing the market in to different geographic unit such as nation, state, regional, countries, cities or neighbourhood. In India context geographic segmentation assumes importance due to variations in consumer preference across different regionals and the state of the country. ⇒ Radio mirchi do not use this type of segmentation. They have adopted corporate strategies. They do not broadcasts any kind of regionals song.e.g. in Gujarat they do not play Gujarati songs.

B. Demo graphic segmentation: ⇒ In demographic segmentation the market is divided in to groups on the bases of variable such as age, family, life cycle, gender, income, education, religion.there are several reason for the popularity of demographic variable to distinguish customer group. One reason is that consumer need , want, and usage rate and the product and the brand preferences are often associated with demographic variable. ⇒ Radio mirchi are use this kind of strategies. They are having gender base segmentation, age group base, etc.. ⇒ In the early morning they are targeting to the old persons because they likes bhajans And kirtans and all about the gods songs.in the early morning they started this programme at 5 am to 7 am.

21

It’s Hot!

⇒ In the morning they have another show named HELLO AMDAVAD. They are giving the traffic updates. And the most interesting the rashi bahvishya. This show is encouring by the Dhwanit who is the famous RJ in the radio mirchi in all teen agers and mature persons. They are also giving the crickrt updates, stock market updates. ⇒ They have KHOOBSURAT programme are specifies target to the female. During the programme Megha giving the food recipes, solving women problems, organize kitty parties, give shopping discounts at any shopping stores. ⇒ In the afternoon they have TOTAL FILMI. This programme targeted to the teenagers and all of the film interested peoples because teenagers and school student are comeback from the colleges and schools. In this programme Ankit gives all of the current affairs in the Bollywood as well as Hollywood. In this show RJs gives BLACK KA TICKET to the people. ⇒ In the evening listening is very much high and they have show called B2B(Bumper To Bumper). In this programme they play hot, new release and the rocking songs. In the evening times there are lots of traffic cause of officers leaving at that time they are giving traffic beats. ⇒ In the night PURANI JEANS show. Which is specifically for the mature peoples. Because they have free from their work and they like to listen old and the melody songs. ⇒ In the late night Dr. LOVE is specifically for the teenagers.iin this programme they solved the problems of them and play romantic songs.

C. BEHAVIOURAL SEGMENTATION: ⇒ In behavioral segmentation, buyer are divided into groups on the bases of their knowledge of attitude towards use of or response to a product. Many marketers believes that behavioral variables occasions, benefits, user rates, user status, loyalty status, buyers readiness stages and attitude are the best starting points for the constructing market segments. a. Occasion: ⇒ Occasion can be defined in the terms of the time of the week, month, year or in the terms of other well defined temporal are aspects of consumers life. All the program they design to meet the occasion. In the NAVRATRI they play Ras Garba at the sponcered party plots. In the UUTRAYAN also they are coming to the our terrace to fly kites and give the helpline number for save the birds.

22

It’s Hot!

b. Benefits: ⇒ Radio mirchi people they are plying all the melody as well as new, hot, and the rocking songs. They often plays sad or emotional songs. That’s why “MIRCHI SUNNE WALE ALWAYS KHUSH” c. User’s status: ⇒ Market can be segmented in to non-users, ex-users, potential users, first time users and a regular user of the product. Radio mirchi have a different scheme to convert first user or non user in to the potential users. And potential user to the regular user. They are giving the different gift vouchers, gifts, couple tickets, hapta vasul etc.. . so the consumer or the listeners are attract and listen the radio mirchi. d. User rate: ⇒ Market can be segmented in to Light, Medium and heavy users. How much time period listener are listening mirchi so they have adopted the strategy to convert light users in to medium users and medium user to heavy users. First of listener have to listen the programme carefully then give answer bay call or SMS. The person is attracted from gift vouchers, gifts, movie tickets, restaurant discount coupans. e. Buyers readiness level: ⇒ Consumers are aware about the programme by giving advertising in the news papers, hording, promotion. They are coming out cricket updates, traffic beats, stock market updates. f. Loyalty status: ⇒ Buyers can be divide in to the 4 groups according to the loyalty status. I.Hardcore loyal II.Split loyal III.Shifting loyal IV.Switchers Radio mirchi has to convert the split loyal in to the hardcore loyal.

23

It’s Hot!

2) TARGETING: ♦ MEANING: ⇒ Once the firm has identified it’s market segment opportunity it has to decided how many and which ones to target. Marketers are increasing combining several variables in an effort to identifies smaller, better, defined targets groups.

♦ LEVELS OF TARGETING: ⇒ There are three levels of targeting.1) homogeneous preference,2) defused preferences,3) clustered preferences. ⇒ Radio mirchi do not use the homogeneous preferences they are also not using the defused preferences. They using the clustered preferences because specific types of customers are having specific need. The need of the different person are different. radio mirchi are targeted to the college students and the teenagers so they playing hot and the new songs. In the evening they play this type of songs in the bumper to bumper. ⇒ They also targeting the mature person and they like to listen old and melody songs. Radio mirchi are playing this kind of old songs in the night in the show PURANI JEANS.

♦ Niche marketing:⇒

A niche marketing is more narrowly defined customer group seeking a distinct mix of benefits. Marketers usually identified needs by a dividing a segment in to sub segment. Radio mirchi people using very less this type of segment marketing.

24

It’s Hot!

3) Positioning: ♦ MEANING: ⇒ Positioning is the act of designing companies offering an image to occupy distinctive press in the mind of target segment.

♦ RADIO MIRCHI POSITIONING STATEMENT:

“MIRCHI SUN NE WALE ALWAYS KHUS” ⇒ From the above statement given by the radio mirchi want to specifies that they are wanting to make people happy. And they are doing the same activity they always make people happy by listening them, all new and the hot songs. they are having a that kind of the programme and the RJs to enjoy the songs. they never play sad and the emotional songs. ⇒ For example in the early morning they played a peaceful bhajans and the prayers so the old age people get satisfaction. Generally people become happy when his or her satisfaction be satisfied and the radio mirchi is doing the same thing they provide the different promotional offeres and the other gifts so people are being happy. And the another thing is that the RJs of the mirchi is fantastic .they are playing superb songs during the day. They are take interview of the celebrities like hero, heroins , sports persons, businessmen, and the police commissioner and the CM, PM etc.. ⇒ They are having some programmes like JAYANTI JOKHAM in this kind of programmes they are giving entertainment and funny jokes. And the all RJ’s are also very funny in their own programme they are also make the some funny contests and the so on.. so we can tell that the statement which they have given is true because they want to give an full entertainment. ⇒ “mirchi sun ne wale always khus” this statement defines that whomever listen the mirchi he or she will become happy although he or she have 25

It’s Hot! any kind of sadness.

♦ HOW TO CREATE BRAND POSITION:•

PRODUCT DIFFERENTIATION:

⇒ Brands can be defined on the basis of a number of different products or service dimensions product from future performance as well as search service dimensions as ordering delivering installation, customer training, maintenance and repaire decide this concern one more general positioning for brand is as best quality. ⇒ Radio mirchi as a programme like Bumper To Bumper is very different from the all the programme showing the mind of consumer it has great impact so the consumer are always listen this kind of programme. •

PEOPLE DIFFERENTIATION:

⇒ Company can gain a strong competitive advantage through having better people. In the radio mirchi RJ is the biggest asset for the any radio station. Radio mirchi having best RJ in India. They providing them training and development the RJs is very gopley. •

IMAGE DIFFERENTIATION:

⇒ The listener differently to company and a brand image. The radio mirchi have trying to create different image in the mind of consumer. We have attract the more listeners by playing different verities of song and broadcasting various programme. ⇒ They are also differ from the frequency i.e. 98.3 . radio mirchi is tuned on the 98.3 frequency and they give a small sentence to differ it to from other radio stations is “ IT’S HOT ”

26

It’s Hot!

CHEP-4-INTRODUCTION TO SERVICE MARKETING AND MARKETING OF RADIO MIRCHI ♦ INTRODUCTION: ⇒ The service sector accounts for more than 50% of the Indians GDP. It is growing at a much faster rate than the to other sector manufacturing and agriculture. In a highly competitive, rapidly, globalization environment the designing and managing of services going to be an challenging task. Also company facing parity with competitive offering on product futures use service dimensions for successful differentiation. Companies seek to develop a reputation for superior performance in delivering, a better and faster response to queries, and a quicker resolution of complaints. ♦ MEANING: ⇒ A services is any act of the performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It’s production may or may not be tied to a physical product. ♦ CHARACTERISTICS OF SERVICE MARKETING:

a) b) c) d)

⇒ Services are defined as bundle of benefits it can also be defined as an activity which is impossible, intangible, parishable, and variable in the nature. Major character of service marketing are as follows: Intangibility Inseparable Parishability Variability

1. intangibility: ⇒ unlike physical product service can not be seen, tasted, felt,

27

It’s Hot! heard, or smelled before they are bought. To reduce uncertainity, buyers will look for evidence of quality. ⇒ Services provided by radio mirchi creation are intangible in nature i.e we can only realized the benefits provided by broadcasting firms. We can enjoy the songs and entertainment programmes broadcasted on radio mirchi but we can not see or touch it to physical product i.e entertainment on air. 2. Inseparability: ⇒ Services are typically produced and consumed symanteniously this is not true or physical goods. Which are manufactured put in to inventory distributed though. Multiple resellers and consumed later. If a person renders the service than the provider is a part of service. Because the client is also present as a service is produced provider client interaction is a special features of services marketing. In the case of entertainment an professional services buyers are interested in the specific provider. ⇒ Services provided by radio mirchi inspirable in nature i.e. we can not separate services of radio jokies or service provide itself from the actual benefits. If we want to avoid the entertainment we have to on 98.3 for to enjoy the entertainment. 3. Perishability: ⇒ Service can not be stored. Perishability is not an problem when demand is steady. When demand fluctuates service firms have a problems. ⇒ Service provided by the radio mirchi are perishable in nature. so we can not restore the entertainment whatever programme is being broadcast each to the listen at that time only otherwise the time is laps will be forever. 4. Variability: ⇒ Service depend on who provides them and when? And where ? they are provided they are highly variable. Service buyers are aware of this variability and often talk to others before selecting a service provider. ⇒ Service provided by radio mirchi are highly variable in the nature because it depends upon the mood of RJs and the songs selection by production manager and his team sometimes when RJ is in exiting mood we can enjoy the all benefits and sometimes not. 28

It’s Hot!

♦ SERVICE MARKETING IN BRIEF:

1. PRODUCT:⇒ In Service you can’t see the product. In radio mirchi product is a programm the entrntaiment is the benefite which is lishners is getting form the programm they have a different type of programm like DIN HUA BEGIN, HELLO AHMEDABAD, KHUBSURAT, TOTAL FILMY, BUMPER TO BUMPER, PURANI JEENS, DR,LOVE, JAYANTI JOKHAM, RAT BAKI.

 To design the programme they have following steps: •

Customer benefit concept:⇒ In customer benefit concept what types of benefit customer is getting or accepted form the programme KHUBSURAT that women are getting benefit in this programme they are organize some kitty parties and the other discounts of the shopping malls. •

Customer service concept:

⇒ àThis concept means what are the general benefits the programme will offer to the listners. Hear customer benefit concept is need convert the customers services concept. In the HELLO AMDAVAD they are giving stock updates, traffic beats, cricket updaes, which are benefits to the listener. •

Service offer concept:

⇒ Hear service concept need to convert service offer concept that means hoe the service offer to the customer. When customer ids tuned thane he is getting services. There is a no special pattern for the customer service. •

Service programme:

⇒ For the radio mirchi product is their programme. Each programme have a specific time and the handled by a specific person means radio jokies(RJs). Now we are going to explain each and every product in detail.

29

It’s Hot! ⇒ The very first prograsmme of the radio mirchi is the DIN HUA BIGINS. This programme is specially made for the old age people and the religious people. In this programme they are not giving any kind of advertising. And the main goal of this programme is to spread good atmosphere around us. They are plying different kinds of the bhajans, kirtans, aartis and many more.in this product they have targeted oldage people. Generally all programme have a specific persom but this is onmly the programme in this there are not any radio jokies.this show’s time is early morning at 5am to 7am daily. ⇒ The second product of the radio mirchi is HELLO AMDAVAD.this programme time is 7am to 11am. This show handled by Dwanit. And Dhwanit is a famous RJ in all of the radio stations. In the morning dhwanit takes interview of celebrities and the current affairs of the Ahmedabad city. In the morning he gives asto to the people from Bejan Daruwala who is famous astrologer. He also give the information regarding stock exchange, cricket updates and taffic beats. Majority of the people are listening radio.at this time people goes to their offices and jobs so they are not aware about the condition of the stock exchange, cricket match, and the traffic around the city so it is very helpful to the public. In this programme they gives MIrchi Teen Gane Back to Back. In this programme they play A+ to b category songs. ⇒ The third product of the mirchi is the KHOOBSURAT during 11am to 2pm. This show is handled by Megha. this show is targeted to the girls and ladies. In this show megha talks to the ladies for their problems and solved it. She gives discounts on shopping and give couple tickets to the girls. In khoobsurat she gives different kind of the food receipis to the ladices. She also gives beauty tips to the females and they also make some contest on the reciepes. In this programme they also gives prizes to the winner. They also held some kitty parties and the gives discounts at the shopping stores. So this programme is specifiacally made for the women only. In this show they play A+,A,B and c grade’s songs. ⇒ The forth programme of the day is TOTAL FILMI. This show is handled by the Ankit. And in this programme radio mirchi provides all the information of the bollywood news. They also tell the people that which picture or film coming in the month and which is prepared. The TOTAL FILMI name itself suggest that this programme is specifically made for the film interested people. And in this programme they also organize one kind of the contest in that customer have to answer the questions which are asked by the mirchi and then they can win couple tickets of the new

30

It’s Hot! realesed films. They give the latest news of the bollywood for example, Kareena and Shahid kapoor’s breakup. And the affairs of the saif ali khan and kareena. In total filmi they give MIRCHI HAPTA VASOOL in the hapta vasool they give four tickets and snacks voucher in the R-World theatre. Specially on the Wednesday they give Fun Friday tickets to the people. So in the TOTAL FILMI they gives news of the bollywood as well as Hollywood. This programme is segments for the youngsters. In this show they play new realases films songs means the A+ categories songs they played. ⇒ In the fifth show of the mirchi is BUMPER TO BUMPER. This show’s name is very typical but it is shown that the 5pm to 8pm is the time of the leaving offices in the government and private sector so in this time there is traffic problems in the city and they go as bumper to bumper speed so they give this name to this show. This show is hosting by Vishal. This show’s timing is 5pm to 9pm. In this show traffic beats are given. This programme is made for the mature and youngsters. in this show they gives dinner coupans. In this show they played all kind of the songs except the old songs. In this programme they have a MIRCHI BIOSCOPE. In mirchi bioscope they give mirchies to the new released films.1 st mirchi for the flop movie,2nd mirchi is for the good film,3rd for the hit movie,4th for the super hit movie and the last 5th mirchi is for the super duper hit movie.

⇒ PURANI JEANS is the sixth programme of the mirchi. In this programme they played old songs for the old age as well as the mature people. Purani jeans’s timing is 9pm to 11pm. This show’s RJ’s name is Ankit. In this show he played songs of the 70’s to 90’s. because in this time all people are taking rest at their home and they like to listen peaceful songs not pop songs. So this programme is the specifically made for the cool and romantic atmosphere. And they played songs which are famous songs in the seventies to nineties. ⇒ Dr. LOVE is the programme made for the youngsters. This programmer’s timing is 11pm to 1am. In this programme they played all the romantic and the sad songs. This show is hosted by Ekta. In this show Ekta have to solved the problems of the youngsters i.e. love problems like if boy love someone and how he get his love? That suggestion is given by the Ekta. Generally this programme is listened by those person who get betray in their life. This programme is having a special segment for the youngsters. In

31

It’s Hot! this programme they have also a massage thing that who want to propose or tell something to his or her love or farmaish they can tell in this. At 12:00am they greet person who have registered their birthday. ⇒ These above are the daily programme but they have also a weekly programme like RATBAKI, JYANTI JOKHAM, DJ SONGS,etc… ⇒ RAT BAKI show is specifically for the sufiana peoples. Whom ever want to listen sher-o-shayries they listen by this programme. This show is once only in a week only on Sunday night. ⇒ JYANTI JOKHAM is the programme which is handled by Jyanti Patel. He is from North Gujarat and his speech is like that so in the this show he gives funny jokes and funny songs on Sunday noon at 3pm to 6pm. ⇒ On Sunday they have a product called COUNTDOWN. In this programme they give the numbers to songs which is most favourite in the country. ⇒ On Saturday they have a special programme named MIRCHI STAR OF THE WEEK in which Dhwanit takes interviews of the celebrities. ⇒ On the same day there is one another show is specially for the club going people. This show is handlaed by the famous DJ of the city like in Ahmedabad DJ Rakshit is hosting this show. ⇒ These all above are the product of the Radio Mirchi. So the all programme have a specific segment and the all programme have a it’s own specific RJ for the handling of the show.

2. PRICE:Price is not just a number or a tag on an iteam. It is value of product. It is a what consumer is getting benefits in return of the paying for product. Generally, price is all around us you pay rent for your appartmrnt, tution for education and a fee to your fees to your physician or dentist. In radio mirchi it is free for the customer they have to not pay any rupee for getting services. But radiomirchi charging money from the companies for advertisement of their product and radio mirchi is charging generally Rs. 300 for 1 second. They are having different strategy for charging price they are as follow.

32

It’s Hot! ♦ STRATEGY FOR CHARGING PRICE:-

1.Flexible price: Flexible price is used to reduce the perishability characteristics of services and iron out the fluctuations in demand. In the radio mirchi they are charging flexible price. When the demand is less then they charge less price and when demand is high at that time they are charging more. Like in the morning in programme DIN HUA BIGIN in this programme most of the people are not listening this programme so they costing less or they are not giving any advertise in the DIN HUA BIGIN.In when the listeners are high at that time they are charging very high price i.e. HELLO AMDAVAD and BUMPER TO BUMPER. At this time most of the people are listening radio so they are costing high. 2. discount price: Discount pricing is refers to the practice of offering a commission or discount to intermediates such as advertising agencies, stock broakers, property dealers for rendering a service. It may also be used as a promotional device to encourage use during low demand time slots or to encourage customers to try a new service. If an any company wants to give an advertise in the radio mirchi than he have to give whatever the price of the giving advertisement but if there is an occasion than radio mirchi gives discount to their advertiser. Radio mirchi is offering discount on the price rate. If any company giving an advance booking for the advertisement than he will get the benefit of discount and they also provide facility that the advertiser can give the same advertise at the any time. 3.Drivesiory price: Diversionary pricing refers to low price which is quated for a basic service to attract customers. Radio mirchi is offering drivesiory price. If you book your advertisement at higer price when the demand is high than you get the less money to advertisement at where the demand is very less or listener is very less. Like you are giving the advertisement in the BUMPER TO BUMPER then you will get discount in advertisement in the HELLO AMDVAD.

33

It’s Hot! 4.High price maintenance prices: High price maintenance pricing strategy is used when the high prices is associated with the quality of the service. Radio mirchi is the first leading FM station in the India. And the leader is always charging high price because he is the leading. Radio mirchi is the leading and provide the quality entertainment so they charging high price. 5.Combo price Combo price means by booking your advertisement in radio mirchi you have options to book your advertisement in other related business if you are giving advertisement in radio mirchi then you have chance to give advertisement in THE TIMES OF INIDIA at lesser price.

♦ PRICING METHODS: Company selected a pricing method that include one or more of this three consideration we will examined six pricing setting method.

1. mark-up pricing: mark up price means add desire rate of return on total cost or at a markup over the total cost is known as mark up pricing. Mark up pricing is remain popular 1st seller can determined cost much more easily than they can esteemated demand by the price to cost seller simplify the pricing task, 2nd where all the firms in the industry use this pricing methods, price tends to similar, price competition is therefore minimized , 3rd many people feel that cost plus pricing is fairer to both buyer and seller. ⇒ Mark-up price = unit cost (1-desirerate on sale) àWhere, Unit Cost = Variable cost + Fixed cost ÷ Unit sales

2. Target return pricing: In target return pricing the firm determines the price that would yield 34

It’s Hot! target rate of return on investment. ⇒ Target return pricing = Unit cost + desired return × invested capital Unit sales

3. Break even point pricing: Break even point is a point where cost and profit is become equal. Generally break even analysis is a most important technique of profit planning, and profit forecasting. It mainly includes cost, volume, profit. Break even point is the point at where cost is equal to revenue. ⇒ Break Even Point = Fixed cost P-V.C 4. Perceived the value pricing: An increasing number of companies now based their price on the customer presided value. They must deliver the value promised by their value proportion. And the customer must perceive this value they use the other marketing mix elements such as advertising and the sales force to communicate and perceived value in buyer’s mind. The key to perceived value pricing is to deliver more value than the competitor and to these two prospective buyers. Basically a company needs to understand the customer decision making process. The company can try to determine the value of it’s offerings in several ways managerial judjment within the company. 5. Value pricing: In the recent year, several company have adopted value pricing in which they win royal customer by charging a low price for a high quality offering among the best. Value pricing is not a matter of simply setting lower price. It is a matter of reengineering the companies operation to become a lower cost producer without scarifying the quality and the lowering prices. Significantly to attracted large number of customer some retailer have even best their marketing strategy around what could be called every day law pricing. 6. Going rate pricing: In going rate pricing the firm bases it’s price largely on competitors

35

It’s Hot! price. The firm might charge the same more or less than major competitors. Going rate pricing is quiet popular where cost are difficult to measure or competitive response is uncertain. Firms feels that going rate price is good solutions because it is thought to reflect the industrial corrective wisdom. 7. Auction type pricing: Auction typr pricing is become more popular especially with the growth of the internet. Company need to be aware of the three major types of auction and their seprate pricing producer: i.Increase auction ii.Decrease auction iii.Sealed auction(bid) 8. Group pricing: Consumer and business can join group to avail a volume discount and the other concession.

3. Place:Place means at where a company is situated. And for radio mirchi place is where they are located. They are mostly located at A+,A category or B category cities of the country which are as folloes:

City

Category of City

Indore Ahmedabad Mumbai Pune Delhi Kolkata Chennai Banglore Jaipur

Hyderabad Patna Jalandhar

♦ Location:

36

B A A+ A A+ A+ A+ A A A B B

It’s Hot!

Location means at where it is situated and radio mirchi ia situates or locate at Indore, Ahmedabad, Mumbai, Puna, Delhi, Kolkata, Chennai, Banglore, Jaipur , Patana , Haidrabad , Jalandhar.

♦ Coverage: In service marketing coverage means total area where the radio mirchi is tuned. For the coverage of the radio mirchi they have a big tower at their studio and their coverage is about 90km.

4. Promotion:Promotion means efforts for the high selling. The fundamental difference which must be kept in mind while designing the promotion strategy for services is that the customer realizes more on subjective impressions rather than concrete evidence. Promotion includes sales promotion, advertising, publicity and public relations. These all are explained below with correlates to radio mirchi. a) Advertiding: Adverting is any paid form of non personal presentation and the promotion of idea goods and services by and sponsor organization handle advertising in different way. In small company advertising is handled by someone in the sales or marketing department. Who works with an advertising agency but in a large company they setup it’s own department. For advertisement purpose they use different kind of medias. Such as print ,outdoors,and electronic. In electronic media they using television in ZEE ceinema they are giving advertisement. In print media they are giving advertisement in newspapers like THE TIMES OF INDIA. In the Outdoor media they are using umbrellas, hoardings and banners. b) Sales promotion: Sales promotion, a key ingredients in marketing campaign consist of a collection of incentive tools, mostly short term design to stimulate quicker or greater purchase of particular products or services by consumer or the trade. Radio mirchi thay are having a different kind of programmes, in each programme they have a different kind of contest and they asking a different questions and listener gives answers and win prizes. They are giving different kind of prices like couple tickets, free coupans, hapta vasool, gift vouchers, movies and

37

It’s Hot! song’s CD and DVD’s, Free tips etc… c) Public relation: Not only must the companyu relate constructively to customer suppliers, and the dealers it must also relate to a large number of interested public. A public is any group that has an actual or potential intrest in or a company’s ability to achieve it’s objectives. Public relation involves a variety of programmes design to promote or protect a compny image or it’s individual product. They are making public relation by greeting birthday and giving them movies tickets, and announce the name on the mirchi,they are also interviews different celebrities,businessmen etc.. so the public can know about the celebrities. They are also come at our home in Uttrayan and Diwali. d) Publicity: Publicity means to come out in the eyes of the public by doing good work. Radio mirchi is doing publicity by going to the terrace on the Uttrayan and tell to save birds. They are also giving the helpline number if the bird is injured. They are doing publicity by their Mirchi’s car tha’s called LBW(LAL BUMPER WALI CAR).

5. PEOPLE:People constitute an important dimension in the management of services in their role both as performers of services and as customers. People as performers of services are important because, ”A customer sees a company through its employees. The employee represent the first line of contact with the customer. They must, therefore, be well informed and provide the kind of service that wins customer’s approval.” ⇒ There are two kind of people in the service marketing: 1. service provider 2. customer 1. Service provider: Service provider are important in all of th organization but more so in an organization involved in providing services. The behaviour of and attitude of the provider the service is an important influence on the customer’s over all perception of the service and he can rarely distinguish between the actual service rendered and human elements involved in it. For the radio mirchi Radio Jokies are the service provider of the company. Because RJs are the important person of service provider because they are coming close contact to the customers so they should be good natured, trained good, at communication, and can give more entertainment.generally service providers are of two kinds:

38

It’s Hot! a) visible or invisible and b) one who come in high contact or another who come in less contact.

2. Customers: Customers are important because they are a source of influencing other customers in case of doctors, lawyers, radio services one customer will lead to a chain reaction, bringing in his wake a number of other customers. For the radio mirchi customer are the public who listen their radio. Radio mirchi having a different kinds of the programmes fo the different or same segment peoples. Like HELLO AMDAVAD, BUMPER TO BUMPER, Dr. LOVE etc.. ♦ Followings are the important people for FM company:        

Service provider Art director Radio Jokies Programme designer Script writer Programme director Financial Space selling executives

5. Process:In a service organization, process means the system by which you receive delivery of the service constitutes. In the service marketing there is no clear cut inputs or output. Rather it is the process of adding ‘value’ or ‘utility’ to system inputs to create outputs which are useful for the customers. Services can be described on the basis of the types of processes used in the delivery of the services. The three kind of the delivery processes that are applicable in case of service products are (1st) job shop process, (2nd) continue process and (3rd) intermittent process. Now we see the all of the above process in detail. 1. Job shop process:When the customers require a combination of services using different sequence, the job shop type of operation is more useful. In the radio mirchi also have this kind of process. In the radio mirchi they have a different process or different departments for the different kinds of the services. For example

39

It’s Hot! advertisement are prepared in the art room and the other radio mirchi’s jingles and the mix songs are prepared in the production room. And the songs which are going to be played are selectes in the broadcasters room. 2. Continue process: The consumers are moves through logically arranged process which are arranged in a sequence. In this kind of process is relevant when the services you are providing is fairly standard and the consumer’s requirement is of a routine nature. This is a constant process from where journey of Raw material to the final or finished goods. The songs are broadcast to the continued process. And the process are as under:

♦ PROCESS OF BROADCASTING OF SONGS: a) RESEARCH FOR SONGS: ⇒ The process of production start of the research for song. They do marketing research base on observation,interview,quastinnare to know ehat are the different population like by the different category of the listener. In this research the different grades are given to the song according to the populity. The grade range is from A+ to D. A+ stands for most popular & the hot song. D stands for the least popular song. They played A+ songs in radio approximately 17 times in a day. In the radio mirchi the research is done at central level. They are doing research in the colcutta and applicable to all India. b) PROGRAMMING OF SONGS: ⇒ They have different programme like HELLO AMDAVAD , BUMPAR TO BAMPAR, PURANI JEANS, DR.LOVE, KHOOBSURAT. Depending upon programme which grade song is to play during the programme. In HELLO AMDAVAD, They play maximum A+ or A category song. They have a software which is called the Radio Computing Software(RCS). In this software name of song,grade of song,time when it is to play,duration of songs,etc.. are already assign. They have to put just a song and everything done by software.they prepare advance programming for one month. This software in clued songs,jingles,advertisement,cricket updates,traffic beats,etc.. according to the pre-decided sequence RJ needs to do just a

40

It’s Hot! click. c) MIXING: ⇒ In RCS mixing of the songs, important updates, announcement, jingle, advertisement etc.. mixed according to the programme. They are mixing songs that room is called production room. In the production room they have a mixer named OY2 mixer which is costing 10 lacs of rupees.

d) BROADCASTING: ⇒ For broadcast propose radio mirchi they are using ultramodern, state of the art machinery and the equipment to ensure good quality & unentred to broadcast of the songs. According to information shared by a company executive each equipment costing lacks of rupees. Radio mirchi they have a separate room for this high-tech equipment where they are logically and technically placed. Radio mirchi have a own tower. This equipment broad cast analogue signal to a tower, which will received the signal encode it in the digital form and the transmit in to the general public. 3. Intermittent process: Intermittent process is useful when the types of service is rarely repeated. But generally in radio mirchi this process is not used in the broadcastings.

7. Physical evidence:Generally physical evidence means cleanliness in a doctor’s clinic, the exterior and interior décor of a restaurants, adequate facilities for personal needs on the air port all contributes towards the image of the service as perceived by the customer. In RADIO MIRCHI they are also having a different services like studio ,equipments, copy rights, crowd, promotion. In radioi mirchi physical evidence is as under. in the radio mirchi studio office we can see the big tower in the enterence. We can heard cool music and radio mirchi with enterence. We can also see the BMW car at the gate. At the right hand side there is a canteen and at the left hand side meeting 41

It’s Hot! or management room. Without ID cards any of the RJ can noit go inside the studio. After entering to the studio we can see the table and on the different table theu put a red dry chillies in the jar. Near these table there is all RJs photos with celebrities. And the most interesting thing is that tere is every thing in the red colour. After entering in the main studio of the songs broadcastings at the left hand we have production room at where all the jibgles and the all advertices are made. after the production room there is a back up room. There is a main two studios at where RJ are doing their work on radio. Between these two room there is a room from they are take all the calls which questions are asked in the contest.

♦ In FM industry physical evidence includes followings:1. 2. 3. 4. 5.

studio equipments copy rights crowds promotion

⇒ The common element in these is that they all are physical, tangible, and controllable aspects of a service organization. They constitute the physical evidence of the service. There may be two kinds of physical evidence. 1) Peripheral evidence and 2) Essential evidence. 1) Peripheral evidence:peripheral evidence is actually possessed as a part of the purchase of service but by itself is of no value. An airlines tickets check books or receipts for a confirmed reservation in a hotel are example of peripheral evidence. A check book is of value only if you have a balance money in the bank without is has no importance. Peripheral evidence ‘adds on’ to the value of essential evidence. These are the representation which the organization wishes to project and reminder value of the evidence in it’s ability to remind the customer about the organization. As far as radio mirchi is concerned with the peripheral evidence. Which a customer can carry along with them and which add value to the brand image. In radio mirchi for peripheral evidence they giving this kind of the gift vouchers and the all about the things are as followings:

42

It’s Hot! a) Radio to the people b) A coffee mug c) Radio mirchi carrying bag d) Umbrella of radio mirchi e) gift vouchers. 2) Essential evidence: whereas peripheral evidence is possessed and taken away by the customer, the essential evidence can not be possessed by the customer the building it size and the design they out and the décor, logo and the and demonic device of the organization are constituents of the essential evidence. The essential evidence is a very critical input in determining the atmosphere and the environment of the service organization. Contrast the essential evidence of a five star hotel with the food out late and the formal atmosphere of the former with the relax and causer atmosphere of the letter. In radio mirchi essential evidence is important because without which the service can’t provided. As w have seen in the peripheral evidence there is a logo sign is give to the customers and they are making the evidence. They are decorating their studio with red color and build a different image in the customer. This is the following essential evidence in the radio mirchi : 1. 2. 3. 4. 5. 6.

equipments computers mike DJ software signle tower RCS software.

43

It’s Hot!

CHEP-5- SWOT ANALYSIS ⇒ SWOT analysis is the analysis of four major details of the four

major elements i.e. Strength, Weakness, Opportunities and Threats. In this two elements Strngth and the weakness is the internal and the another two opportunities and threats are the external factors. ⇒ The SWOT analysis is the identity machine which exhibits the strength and weakness of the organisatioin and surface the opportunity and threat fot the organization and surface. The poortunity and threat for the organization even the SWOT analysis evaluate the compatibility of the objectives. It suggest corrective actioin for the survival and growth of the organization. Hence, the Swot analysis is a useful instrument in the formulation of objectives and strategies. S- strength is the symbol of competence or ebility of the firm. This may be internal and external strength. Generally the firms fight against the threat on the basis of their respective strength.the organization can over come its weakness to convert them in to their advantages. Strength provide competitive edge and niche over the competators. W-the organisatiion may also survive by avoiding the unnecessary weakness. The organization conduct the feedback and service to search for the latent weakness it require productive approach and inward looking method to rewise the policy and procedure of the organization. O- Opportunity means chance to do something innovative or take the advantages of the vaccume existing in the market. The opportunity always exist but they need to be realize and recognize. This require entrepreneur foresightness. T- it is important to analysis the threat of the business. SWOT analysis is useful machine the searching the latest threat for the business the BE it self pose certain threats which are difficult to combat for a business. 44

It’s Hot!

⇒ There are four elements are as uder: 1. STRENGTH:Strength is the symbol of competence or ebility of the firm. This may be internal and external strength. Generally the firms fight against the threat on the basis of their respective strength.the organization can over come its weakness to convert them in to their advantages. Strength provide competitive edge and niche over the competators. Stength of the Radio mirchi is 24 hours means they are providing radio 24 hours.

There are five characteristics of the strength are as follows: a) First mover advantage: ENIL operates radio stations in the top 13 A and A+ cities. Thus its listeners comprise the higher socio economic class of the country having higher disposable income. It has a first mover advantage in many of these cities. This helps ENIL to garner higher advertisement revenues. First mover means first company which has started it’s business in the market or the city. Radio mirchi has a first mover advantage. And radio mirchi has a monopoly in the market in the ahmedabad. At that time there is a Vividhbharti in the market but Vividhbharti is playing old and people are not interesting to listen it because radio mirchi is the only station where they were give the full entertainment. Because they are providing the latest songs in their radio. They have launched very first radio station in the city so the customer or the listener are aware about the RJs of them. Because of the first mover advantage they get the maximum number of the customers. b) High listenership: Radio mirchi’s programming focus in radio is on contemporary film music shows and celebrity interviews. Radio mirchi has developed good relationships with the film industry in India helping it to have innovative and creative content. This helps ‘Radio Mirchi’ (ENIL’s radio station) to secure broadcasting rights of the music of leading films for up to two weeks after the initial release of the music. Inspite 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 local tastes. In Delhi and Mumbai, Radio Mirchi is the clear market leader, capturing 5.9 m out of 11.2 m daily listeners. In Kolkata, Radio Mirchi has over 50% market

45

It’s Hot! share and is the second largest media vehicle after the leading Bengali daily. c) Stronge FM Background: Radio mirchi having a stronge background. Radio mirchi is from the ENIL group and this company have a many companies. Radio mirchi is from the ENIL and ENIL is from the TIMES group and ENIL is the public company and whenever they want to land money from the public they can land. And the most important is that the ENIL is also from the TIMES group. And TIMES group have also a different companies and have a stronge financial condition so if Radio mirchi wants to expand their business in the future they can easily available with the finance.

d) Product Innovation: Radio mirchi is trying to give the new nad new featured programme. So radio mirchi is coming with new and new programme because in this era the people are wanting a changes in the programme and the product. Generally they are coming with one new programme in the the one year. And Radio mirchi having a own copy writer and they are taking the full benefits of it. They are writing their new programmes from the copy writer. e) Stronge Brand Equity: As in the first character we have discussed that radio mirchi is the First mover so they are getting that and become a stronge brand in the market. Radio mirchi is the no.1 Radio station in the Ahmedabad and so although having a strong competitiors like MYFM and Radio City they have a more listeners. f) Famous RJs: RJs are the real aseets of the any FM company.they have a famous RJs like Dhwanit, Devki.and withot the service provider any FM industries company cannot give the service. So if any person’s famous RJs programme is there the they will be the highest listeners. 2. Weakness: The organization may also survive by avoiding the unnecessary weakness. The organization conduct the feedback and service to search for the latent weakness it require productive approach and inward looking method to revise

46

It’s Hot! the policy and procedure of the organization.Second element is weakness from this element we can measure what is the negative point of the company and at which part company is not doing well and not so good with compare to the competitors. There are three elements of weakness: a) lack of local touch: radio mirchi is in the Ahmedabdbad specially in the Gujarat and they are with gujarati peoples and they are not playing gujarati songs and gajals and the garbas so this is the biggest weak ness of the radio mirchi. b) More advertisement: Radio mirchi gives more advertisement in the radio so the interested people can be bored of it and they go to the other stations. They are generally gives advertisement 10 minutes in the one hour. c) Over repetition of the songs: The radio mirchi ia played songs from the grades and they play A+ songs in a day approximately 17 or 18 times. So whomever listening a radio very long time is boring srom the repetition of the songs. 3. Opportunity : The third element of the SWOT analysis is the Opportunities from this point we can see that what is the opportunities regarding the company Ther are three things included by radio mirchi. a) Wide Untraped market: Radio mirchi is now in the 32 cities and there are many space where radio mirchi can open their FM station. So if they are uding this areas where they haven’t started their FM station is beneficial. b) Increase audience: FM listeners are increasing day by day and they are use to listen radios. And where radio mirchi has monopoly at there people will only like to listen radio mirchi. All people are interested to listen a song on radio not on the Television.

47

It’s Hot! c) More Access point to listen: there are many instruments to listen radio mirchi or radio. We can listen radio in the Buses, mobiles, offices, restaurants etc.. 4. Threats: the last is the Threats is the point in which we can understands that what is the threat of the company. Below three iteams are included in the threat analysis.: a) increasing competition: radio mirchi is only one player so he can enjoy the monopoly.but in the last two year many FM station are started. The biggest competitors of the radio mirchi is the MYFM. b) government policy: Radio mirchi and any other FM station are based on the license. They have to get license from government for radio and suddenly government incersing the fees of license than it may happen that fm station have to stop their work or pay high fees to the government, c) changes in taste and preference of customer: radio mirchi is only the station at there they are playing only melodious song means not sad song. Some times it happen some people are in sadness and they do not want to listen melidous songs and they switchoff to radio mirchi and go to other stations. And in this situation the statement of radio mirchi “MIRCHI SUN NA WALA ALWYS KHUSH” It can be wrong. So for any manufactures and broadcasters can not get what consumer wants.

48

It’s Hot!

CONCLUSION  As we have all wright about in the rhis report I have deeply studied and analyse it. The Radio mirchi is a no.1 FM station in FM industry in all over India. Radio mirchi is the only FM station Which is having profit in their Balancesheet. They have a best RJs in the Whole FM industy.

 Radio Mirchi is the largest Radio Station in Gujarat. Radio Mirchi has a group os TIMES which is having a different companies in it. This TIMES group is also famous in all over the world.

 At now Radio Mirchi is having a competators like MY FM and RADIO CITY. And both of the stations have a stonge identity in the FM industry.

 At last we can conclude that if they give a special programme to the 49

It’s Hot! Gujarati people of a Gazals and the Gujarati songs. And thay also givethe special programme of the English songs.

BIBLIOGRAPHY  I take help of many things to prepare this report are as follows: à WEBSITES: 1) WWW.ENIL.COM 2) WWW.VIKIPEDIA.COM 3) WWW.GOOGLE.CO.IN à BOOKS: 1) Philip Kotler & Koshi 2) Philip kotler & Armstrong

50