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8/8/2019 Akhlesh St Ppt
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The Resurgence of Radio inIndia : The Re-Entry of PVT
Players
Presented BY ±
Akhlesh Kumar (A54)
Manpreet Kaur (A55)
Jasmeet Singh (A19)
Shreya Chitranshi (A22)
Vineet Kumar (A14)
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´Nobod y asks f or Radio and nobod y
gives a damn.´- Prasoon Joshi (C. Director)
³Radio w on¶t die; even today the reach
of radio is more than that of television.In rural India, every individual has atransistor. And y ou can listen to the
radio even when y ou are telling thesoil. Y ou can¶t do that with TV.´- Vinod Sharma (Ex-President, RAPA)
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IntroductionRadio was invented during the late 1890s.
Pu blic Radio services offering inf ormation and
entertainment. A d vertising on the radio started first in the US in
1920.
In India, radio broadcasting started in 1927 at
Mum bai and K olkata.From 1957, the radio service also came to be
referred to as µAkashvani.2¶
Vividh Bharti, Air¶s main entertainment channel
was started in the 1960s.
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Cont.In July 1999, the GOI decided to allo w PVT
players to enter the FM broadcasting sector.
The first private FM radio station began in July 2001 in Bangalore, Karnataka.
Radio is the
medium of thecommon man
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Programs by Radio In 1980s, its programs included situational
comedies, suspense thrillers, film music based
pro
grams,d
ramas, and
d
iscussio
n and
commentaries on health, cooking and beauty tips.
And no w a days, Radio broadcasts music,
education and entertainment based programs. And other programs as News and current affairsalso.
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Most Popular FM Stations in India
98.3 FM (Radio Mir chi)
92.7 FM (Big FM)91.9 FM (Radio Mantra)
95.0 FM
93.5 FM (Red FM)94.3 FM (My FM)
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BIG 92.7 FM ADVERTISEMENT
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Present Scenario12,275 Radio station under telecom act 1996
Radio station increase 75%-100%
8.5 gro wthRadio and technology
Radio and ad vertising
Radio listeners
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Radio is an affordable and easily
accessible medium
Free to air ± no su bscription charges unlikeTV/newspapers/magazines/Sat Radio
Cheap receiver ± unlike TV
Not dependent on po wer
only source of entertainment during energy cuts; which isstill high in smaller to wns
Vast reach ± 90% co verage vis-a-vis TV (only 80 millionTV homes) and press
Only medium of entertainment f or the economically weaker sections of Society
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Latest Strategies Impro ving Sound quality
Increase the ad vertisements
Live sho ws Campus Visit to capture y outh
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Competitors
Television
Computer/Laptop
Mobiles
i-pod
DVD Player
News Paper Internet
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Porter·s 5 Forces Model
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Porter·s 5 Forces ModelThreat of the new entrants:- Moderate
Bargaining power of buyer:- Low
Inter category competition:- High
Bargaining power of supplier:- Low
Threat of substitute:- High
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BCG MatrixStar ± High growth, Highmarket share)
Question Mark ± High growth But low market
share
Cash Cow ± Lo
w gro wth, High market share
R adio comes in this Matrix
Dog ± Lo
w gro wth, Lo w market share)
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SWOT Analysis
Strength ± R ecently , the government has agreed upon revenue-sharing model,
w hich is 4 % for the growth of the radio stations. R adio listenership habits have changed considerably· R
adio is considered as a back ground medium, because people canlisten to radio anytime and anyw here they want. It is also a freemedium.
90% of India has access to radio w hich is unmatched by any othermedia.
R adio also reaches to uneducated v illage folk w ho do not read print
publications R adio is the least cost medium and it helps to reach mass audience
w ith various back grounds. R adio is considered as a medium w here the ³Proximity to
purchase´ is very high. R adio is a complement to another media. Therefore, other media or
the advertisers or agency can use this medium for brand recall.
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Cont..
W eaknesses ± There is very less differentiation in the programs that are aired. Most
of the stations plays much of the music that is played consist of Hindi Film songs, and therefore it is diff icult to differentiate between the
programs of the different channels. Fragmented Audience ± the large number of the audience in India is
fragmented in various remote places. No proper research available ±there is no proper research is
available. Many stations are conducting their own research w hich can be biased.
An advertiser w hose product depends on demonstration or v isualimpact is at a loss w hen it comes to radio.
Many advertisers think that w ithout strong v isual brandidentif ication the medium can play little or no role in theiradvertising plans.
Increase in listenership numbers but no increase in ad revenue. This
is the situation that every radio channel is facing.
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Cont..
Threats The biggest threat to pri vate radio industry players is ALL INDIA R A DIO. AIR is the biggest player in India because of its reach, low charges, government channel etc«
Because of the new government policies there w ill be morenumber of stations and then competition w ill also increase. Thisis one of the biggest threats it faces. W ith no particulardifferentiation in the music. So, there is a fear of losing its brandloyalty
i-podMusic Channels on Telev ision
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