7

RADIO INDUSTRY –INDIADone by :

C.B.Jayapavithra

Sukanya Kumar

Bhargavi .M

Smruthi . V

A.Gayathri

Divya.M

Vishnu priya

Namrata Torka

INTRODUCTION There are a total of 232 FM channels, private and government owned in

India.

Current size of the radio industry (2008) is esti mated at US $170.87 million.

According to a PwC study, the radio industry is forecast to grow at a compound annual growth rate(CAGR)of18percentover2009-13,reachingUS$391.15million.

In terms of its share of the adverti sing pie,it is projected that the radio adverti sing industry will be able to increase its share from 3.8 percent to 5.2percent between 2009 and 2013.

The government earned US$11.05 million from private radio channels during 2008-09.

Radio Mirchi, along with its alliances, is number one in the Indian private FM radio industry, with a 46.5-million listenership according to Indian Readership Survey(IRS)2009.

GROWTH OVER THE YEARS

NUMBER OF STATIONS

RADIO MIRCHI Radio Mirchi is the most popular private FM radio channel in

India with the largest operating network and a presence in 33 cities & 6 Metros.

In October 2001, RM launched radio broadcasting station in Indore.

Operated by Entertainment Network India Ltd (ENIL).

Promoters: Bennett, Coleman & Co. and Time Infotainment Media Ltd.(cross media ownership)

Radio Mirchi bid on 64 F & won 12 licenses.

Radio Mirchi started first from Indore.

II-WAVE OF FM PRIVATISATION

In mid-November 2005, Radio Mirchi had announced that it was entering the capital market to raise capital of Rs. 2-3 billion.

In February 2006, Radio Mirchi, the most popular private FM radio channel in India, announced that its license bids for 32 citi es, spread across the country, were successful.

Its highest bid of Rs. 281.6 million was for the city of Bangalore.

The bidding process, which began in January 2006, was part of the second phase in the Government of India's (GoI) eff orts to privati ze FM radio.

Radio Mirchi was already present in seven citi es, including key citi es such as Mumbai, Delhi, Kolkata, and Chennai.

OWNERSHIP

ORGANISATIONAL STRUCTURE

managing director

service providers

art director

RJs

script writers

programme designer

space selling executives

program director

DEPARTMENTS

Administrati ve department

This department maintains, organises and runs the enti re radio stati on.

Finance

Manages the accounts, finance and prepares budget and annual report.

Technical

Manages the equipments necessary for broadcast

Programming

Decides the program content, order of content etc.

Marketing & PR

includes sales promotion, advertising, publicity and public relations.

a) Advertising:

For advertisement purpose they use different kind of medias, Such as print ,outdoors, and electronic.

b) Sales promotion:

Sales promotion, key ingredients in marketing campaign .They promote their program or any event by organising contests respective to that event.

c) Public relation:

Public relation involves , variety of programmes to promote the company image. Example-sponsoring events and contests, tie ups etc.

d) Publicity:

in terms of corporate social initiative and other campaigns.

Transmission engineers

They are responsible for the transmission and relay of programs.

RJ’s

Music management

The process of production starts by the research for song. mixing of the songs, important updates, announcement, jingle, advertisement etc.. Mixed according to the programs etc.

COST ASPECT A Licensee pays Rs. 6000/- per hour.

Add Rs. 1,500/- for the music. Add Rs. 8,000/- for the technology, salaries and other expenses. An hour long show thus costs Rs. 15,500-20000.

20-25 Minutes have been set aside for advertising. One minute is reserved out of 10 minutes for social awareness advertising.

Thus, advertising time available for sale is 20-25 minutes.

In other words, 20 advertisements each of 15-30 seconds can be accommodated in an hour.

Besides the tariff card should be modest, considering the limited range and listenership supposing a 30 seconder costs Rs. 1000-Rs 3000 at prime time for 20 such spots, the total revenue generated is Rs. 20000-60000.

ROYALTIES FM is primarily a music channel, so the question of royalties is

relevant

The Indian Protographic Record Society (IPRS) and Phonographic Performance (P) Ltd.(PPL) are supposed to hold all the rights of royalties.

They are demanding Rs. 1,500 per hour (as against Rs. 100 per hour, at which they are supplying music to AIR), PPL is demanding a royalty of Rs. 250 per hour of needle time, the actual duration of a piece of music.

The IPRS is demanding Rs. 100 per hour. The IPRS claims royalty for the original composers and authors of music.

HOW THE PRICE IS SET Flexible price:

Flexible price is used to reduce the perishability characteristics of services and iron out the fluctuations in demand. When the demand is less the charge is less and when demand is high the charge is more.

>> Ex- day time slot price and prime time slot price are different

Discount price:

Discount pricing refers to the practice of offering a commission or Discount to intermediates such as advertising agencies, stock brokers, property dealers for rendering a service. It may also be used as a promotional device to Encourage use of low demand time.

Ex- if a company books a slot say 2 or 3 months in advance, discount is possible and also if the radio station is a client of that company.

Diversionary price

Diversionary pricing refers to low price which is quoted for a basic service to att ract customers.

For ex-if a prime ti me slot is booked , discounts will be available opti onally if the company also wants to adverti se in low demand slots.

High price maintenance prices:

High price maintenance pricing strategy is used when the high prices is associated with the quality of the service.

Ex- as of now radio mirchi ranks 1, and hence its prices are higher when compared to others.

Combo price

Combo price means booking adverti sement in one medium(radio or tv or print) and have opti ons to book adverti sement in other branches of that medium.

Ex- suryan fm-sun tv-newspaper

REVENUE Panel Unit confirms Radio Mirchi as the leading FM Radio stati on ahead

of Red FM and Radio City. With 12.1 daily listeners, Radio Mirchi leads with a 72 per cent share of the market.

Entertainment Network (India) Ltd., India’s number 1 Private FM Radio operator, popularly known as Radio Mirchi.

Revenue growth has been buoyant; lift ed by the ICC ODI cricket world cup.

They are on the cusp of a major expansion in the radio business with the announcement of the Phase III of Private FM radio policy expected soon.

As per Indian Readership Survey (IRS) Q4 2010, Radio Mirchi has maintained its leadership positi on in India.

Radio Mirchi has garnered the top spot in FM radio with a listenership of more than 41 million listeners – nearly double the listenership of the next radio brand.

Mirchi has consistently been the leader by far across all the survey results of 2010. Mirchi’s current listenership is bigger than the Average Issue Readership (AIR) readership of the Top 3 newspapers put together.

USP OF RADIO MIRCHI Playing contemporary hits songs Radio Mirchi has always been the no

1 choice of listeners

As Mirchi has more than 41 million listeners across 32 stations

Its market share in revenue terms remains in excess of 40% of the private FM industry.

Radio Mirchi is the number 1 radio brand in the private FM space.

It won a Plethora of awards. It has been recognition of the brand popularity and the creative talent behind the brand.

Mirchi was voted the no. 1 media brand, ahead of iconic brands like the times of India and star plus.

As per brand reporter October 2009 issue Mirchi was recognized as one of the game changers of the decade in the radio industry.

Music Scape Suryan FM Radio Mirchi Radio City Aha FM BIG FM Hello FM Radio ONE

Song 66.78% 68.56% 76.90% 75.67% 75.80% 67.70% 85.24%

Spots 19.91% 20.89% 10.65% 6.29% 13.43% 16.07% 7.11%

Stationality 7.50% 6.90% 9.20% 6.43% 9.44% 9.27% 5.71%

Jock Talk 5.81% 3.62% 3.20% 5.10% 1.31% 6.95% 1.92%

Total 850.178 888.6 893.7 860.4 930.27 838.7 919

0%

10%

20%

30%

40%

50%

60%

70%

ContemporaryHits

Familiar Hits New Retro Medium Retro

Radio Mirchi

Radio City

Radio One

Hello FM

Suryan FM

BIG FM

Aha FM

A COMPARATIVE STUDY OF SOME RADIO STATIONS

• ALL INDIA RADIO

• RADIO CITY

• RADIO MIRCHI

• RED/SURYAN FM

ALL INDIA RADIO A.I.R, which is a nati onal service planned, developed and operated by the Ministry of

Informati on & Broadcasti ng under the Government of India. New initi ati ves by AIR

• Radio Adverti sing AIR, which produces more than 300 bulleti ns daily, will also cash in on phone

bulleti ns. The service, which is on in Patna, Hyderabad, Kolkata and Delhi at diff erent numbers, will be launched across the country with a four-digit common number.

Prasar Bharati is set to launch a major campaign aimed at repositi oning and total branding of the two FM Channels of All India Radio (AIR). Prasar Bharati is positi oning AIR FM Rainbow as a channel off ering a buff et fare - Hindi Music, Western Music, Chat shows, Helplines etc. and for this it is launching a campaign in select citi es

The publicity campaign of AIR is focused on projecti ng AIR as the world's oldest and largest radio network both in terms of geographical and populati on reach and the only source for news and entertainment for people in remote places.

It will promote and publicize sports events covered by AIR besides popularizing existi ng services like Radio on Demand and News on Phone.

The enti re publicity campaign of AIR is being designed by Prasar Bharati 's ad agencies. The ad agencies have been asked by the Prasar Bharati to make a strategy presentati on, recommending a suitable positi oning for AIR Channels, a marketi ng plan and publicity plan with suitable media mix.

RADIO CITY Radio City, a venture promoted by Star and Music Broadcast

Private Ltd (MBPL), was launched on 21st May 2002.

MBPL is a company backed by P.K.Mittal, family and Associates.

The company has received the license to set up radio stations across the country in six cities - Bangalore, Delhi, Mumbai, Patna, Nagpur and Lucknow.

The Mumbai license was secured for Rs 10 crores. STAR India’s radio division would provide or take charge of advertisement sales, marketing and programming

Radio City aims to reach out to listeners across demographic barriers.

TARGET AUDIENCE Radio City is not looking at any particular segment to target, and is

trying to create a brand name.

The idea is to create the brand and then to move on to specifi c target programming.

Radio City’s market strategy is backed up by six months of intensive research in Bangalore.

Intensive research is being carried out to ascertain demographic profi les of radio listeners, so as to enable more targeted programming in the future.

THE 4 P’S Product:

For listeners - Music, informati on, a portf olio of entertainment programming 24 hours a day, in mix of Hindi and English .For corporate and retailers: - The airti me.

Place:

Intensive all over Bombay also, Selecti ve in the sense that it has set up radio stati ons across the country in six citi es - Bangalore, Delhi, Mumbai, Patna, Nagpur and Lucknow.

Price:

Adverti sement rates Promotion: Radio city is one of the top 3 stati ons in the city. This is thanks to its promoti ons,

a perfect blend of English and regional music, teamed up with professional, vivacious RJ’s. On the promoti on front, the channel undertook huge promoti on campaign in the initi al stages of its launch.

The Television “fun ka doze har roz” ad campaign. Hoardings all over the city. The channel is into sponsoring events especially college festi val

Advertising with Radio City Radio City has managed to attract advertisements, from

small local stores as well as big brands like Tanishq, IBM and HLL.

Star India is in-charge of providing the content, besides advertising, sales and marketing support.

Radio City will have a four-hour slot in its 24-hour broadcast for advertisement, breaking to a 10-minute projection in every hour's programmed.

Radio city is trying to drive the market by encouraging the ad spends on radio to increase from two per cent to the world average of 10 per cent.

RADIO MIRCHI Target audience

As the punch line says, 'it is hot.' They have a very clearly defi ned position – they are a contemporary hit radio station, and their Target is around 18 to 35 - SEC A and B and in that too mainly youth and housewives. This segment addresses about 12 lakh listeners 65.

THE 4 P’S Product:

For listeners: 90% of the music played on RM is regional and other language contemporary hits are played keeping in mind the tastes of their Target Group airti me

Place:

intensive in Mumbai and selecti ve all over the country since it is established in citi es like Kolkatt a, Delhi, and Chennai.

Price:

The adverti sement rates

Promotion:

The marketi ng strategy of Radio Mirchi revolves around two crucial pegs – create hype around the name Radio Mirchi, plug Radio Mirchi through the other media that The Times Group owns. It also does a lot of ti e-ups and contests for the consumers

MARKETING STRATEGIES

Radio mirchi has also ti ed up with various shopping malls, retail showrooms, for conti nuous adverti sement of their channel to make people aware of the temptati ons given by the channels to them.

Adverti sements

Display media

Tie up with companies

Feedback from listeners (build consumer involvement)

Sponsored many things.

Launching innovati ve promoti on campaigns.

Made sales team to maintain relati on with local adverti sers

Price of Ads based on ti me.

Additi onal income from SMS

Radio mirchi has two main objecti ves behind doing an extensive marketi ng which are-

To create the Top of the Mind recall in the relevant Target Audience And Connect with the growing Radio l istening populati on in Mumbai.

A very large factor that contributed towards the establishing the brand of RADIO MIRCHI was its catchy slogan “it ’s hot ”. However the slogan by itself was incomplete without the voices that accompanied it. CELEBRITIES and fi lm stars that repeated every so oft en “hi I ’m -------- I ’m hot and I ’m Radio Mirchi!!” big names that generated curiosity and excitement and compelled the listener to refrain from fl ipping the dial.

Advertising Radio Mirchi charges the highest rate of Rs 2,000 for a 10-second slot, the rest of the FM channels

charge anything between Rs 1,000 and Rs 1,500 for a 10-second slot.

Radio Mirchi listenership extends to 45 lakhs every week as per Radar study. There is an average listenership of 45 minutes per day on the stati on.

The rates are reasonable that adverti sers can aff ord 10 or 15 spots a day and run the campaign for 15 days or three weeks at a fracti on of the cost that you will incur in print or Television.

There are about more than 300 adverti sers on Mirchi. Radio Mirchi sells independently and does not off er any print package deal even though they belong to Times Group – they are an independent company.

Most of the nati onal adverti sers on Radio Mirchi today want to buy all the stati ons on air(all the citi es). So they have package deals for them .

There is very litt le retail adverti sing on radio.

Currently, on an average, there are 125 to 175 brands adverti sing on Radio Mirchi. In most cases, stati ons off er discounts on what is on their rate cards. On an average, across the fi ve stati ons, the eff ecti ve ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. Clients buy eff ecti ve rates and they buy a combinati on of spots like prime ti me, non prime ti me and the likes.

IMRB conducts research for Radio Mirchi which is aft er every 15 days to know exactly what the listeners actually want to lend their ears to. Hence, accordingly, they have implemented the changes in the ti me slots of the diff erent shows on air. So when the adverti sers wants to adverti se on radio, Radio Mirchi can provide them with the more informati on and help them to decide on the ti me slots and frequency etc…

According to the study conducted:-

Mirchi delivers highest number in terms of listenership among Housewives and working men.

Radio Mirchi delivers highest number in terms of listenership among the Radio Listening student population.

Radio Mirchi emerges up as the No. 1 channel and delivers high numbers with Daily listenership at 24.63 lacs.

Future Plans:-

Radio Mirchi is looking radio Industry from the long term point of view. They are

interested in some of the bigger cities and Mirchi would eventually look at having a presence in every nook and corner of this country, which means going

into the smaller towns.

 

RED/SURYAN FM It is owned by Sun TV network, India’s largest network has

power packed 32 TV channels and 45 fm radio stations. It was acquired from India Today promoter Living Media in January 2006.

Their punch line is 'Bajaate Raho' (Keep Playing).

Starting August 14, 2009, S FM or Suryan FM was re-branded into RED FM across 38 cities in INDIA.

S FM took over Red FM in August, 2009 and re-branded all its stations to Red FM except for the ones in Tamil Nadu.

Target Audience

93.5 Red FM caters to 25-plus age group and also youth, housewives.

The 4 P’s Product:

For listeners: The programming mix has non-stop music interspersed with Red FM’s‘crisp’ and ‘entertaining’ updates on traffi c, weather, city-specific events and the latest buzz on everything current. For corporate and retailers: the airtime

Place:

Intensive in Mumbai and Chennai and selective all over the country

Price:

advertisement rates Promotion:

Red Fm is associated with many production houses(films)

Marketing initiatives

• Promotions through various electronic mediums.

• Tie ups, launch campaigns and sponsors

• Two key elements-contemporary music around the clock, the other being emotional element

Advertisement

• the clients are more enthusiastic because the FM station is present across the country, and also the fact that the FM station is able to deliver a certain quality and content that a listener or even an advertiser expects.

• While Red FM is said to be very strong among retail advertisers in terms of revenue generation, the Red FM ad revenues are evenly split between both national and retail advertising.

• Going forward, Red FM aims to be as interactive and as local as possible

RATE CARD

30 secs spot buy rates RADIO MIRCHI

Programme category Mumbai Delhi Banglore Lucknow

07:00 - 11:0017:00 - 20:00

Radio active 8000 8000 5000 4000

11:00 - 17:0020:00 - 22:00

Radio Mix 6000 6000 4500 3000

22:00 - 00:00 Radio Master Blaster 6000 6000 4000 3000

Round the clock Radio Ga Ga 4000 4000 2500 2000

30 secs spot buy rates

TERMS AND CONDITIONS:-

Minimum acceptable radio spot/ commercial duration will be 10 seconds.

In case any programme, which is being offered in this package, gets discontinued, the advertiser will move the spots to the programme replacing the discontinued programme in the same rate category.

To ensure proper and timely release of the spots, release orders should be given to MBPL through Star India Pvt. Ltd. At least 2 weeks prior to the date of airing of the first spot.

All bookings are subject to availability at the time of booking.

The agency/advertiser must provide DATS at least fift een days prior to first spot airing date. The sponsorship material must be sent four weeks prior to start date of the sponsorship of any programme.

All invoices should be sett led by the advertisers/agency within 30 days from the date of the receipt of invoice

SURYAN FM The marketing department is wholly responsible for the

advertisement sales of the in-house productions of the Sun TV Network Limited channels.

With it's team of dedicated professionals, it is today one of the highly appreciated professional marketing unit among satellite televisions.

Apart from offering the available advertisement time in the most effective way, it offers the best follow up service.

The deals, that are made, are mutually beneficial and uniform. It functions with the motto - professionalism, effi ciency and dedicated service.

Starting

TimeEnding Time RODP rates Rate

07:00am 11:00am 600 

Denotes 10

sec Rate 

11:00am17:00pm 350  

Denotes 10

sec Rate 

17:00pm 22:00pm600  

Denotes 10

sec Rate 

22:00pm07:00am 350  

Denotes 10

sec Rate 

         

PUNE RED FM  

 Starting

TimeEnding Time RODP rates Rate

07:00 am 11:00 am 750

 

Denotes

10 sec

Rate

 

11:00 am

05:00 pm 450  

Denotes

10 sec

Rate

 

05:00 pm 10:00 pm 750

 

Denotes

10 sec

Rate

 

10:00 pm

07:00 am 450  

Denotes

10 sec

Rate

 

           

RADIO MIRCHI Prime time -8-10am, 6-8 pm—15-20 % hike in slot.

Minimum jingle length

The minimum jingle duration will be considered as 10 sec.

Over 10 seconds, jingle length would be counted in multiples of 5 seconds.

E.g. A 23 second jingle would be billed as 25 seconds

(RATE PER 5 SECS)

Region North Split 7am to 12noon

City Rate 12noon to 5pm

Delhi 1500 5pm to 11 pm

Jallandhar 150Prime time -8-10am, 6-8 pm—15-20 % hike in slot.

Japiur 200Kanpur 200

Lucknow 200Varanasi 130

Region CentralCity Rate

Bhopal 175Indore 200

Jabalpur 150Raipur 150

Gwalior 200

Region EastCity Rate

Kolkata 500Guwhati 150

Patna 400

Region WestCity Rate

Mumbai 1200

Pune 650

Kolahpur 150

Nasik 200

Aurangabad 150

Nagpur 200

Panaji 150

Ahmedabad 550

Surat 150

Vadodra 150

Rajkot 150

Region South

City Rate

Bangalore 700

Mangalore 150

Hyderabad 550

Vijyawada 150

Vishakhapatnam 150

Chennai 600

Coimbatore 200

Madurai 150

Trivanduram 200

RADIO ONE

CHENNAI LIVE

FIXED TIME BAND Rs. 10/secs

06:00-08:00 2,500

08:00-11:00 3,500

11:00- 14:00 2,500

14:00-17:00 2,500

17:00-21:00 3,500

21:00-24:00 2,500

Total Audience Plan (TAP)

Monday-Sunday 06:00 - 24:00: Rs. 2,500/-

Best Time Available (BTA)

Monday-Sunday 00:00 - 24:00: Rs. 1,500/-

FIXED TIME BAND Rs. 10/secs

06:00-08:00 2,500

08:00-11:00 3,500

11:00- 14:00 2,500

14:00-17:00 2,500

17:00-21:00 3,500

21:00-24:00 2,500

CHENNAI LIVE RATE CARDTotal Audience Plan (TAP)Monday-Sunday 06:00 - 24:00: Rs. 2,500/-Best Time Available (BTA)Monday-Sunday 00:00 - 24:00: Rs. 1,500/-