MOS PRESENTATION(RADIO INDUSTRY)

PRESENTED TO; PRESENTED BY;PROF.N.GARG APEKSHA GROVER (FACULTY MOS) SUMIT DHIR DISHA NAAGPAL PRASHANT GOEL POORVA SHARMA TANAY DIWEDI

RADIO INDUSTRY Business model is mainly advertising driven. Growth in the last two quarters of 2008 was slow. Radio is a cost effective medium as it has more

penetration. Controlled by few business groups having sizable stake. Phase II licensing made the business viable. Has huge infrastructure setup costs. Oligopolic and witnesses price wars. Overall growth rate is impressive.

Brief History of Radio Broadcasting in India

1935: Radio broadcast begins with AIR.

1977: First FM service in Madras. 1993; AIR sells time slots for private FM radio

broadcasting in five cities. 1999: Privatization of FM - Phase I Policy. 2001: Licenses given to private radio broadcasters. 2005: Announcement of Phase II Policy of privatization

of FM

Five key Things About Radio Today

2. Radio is hyper-local

4. People’s attention slips in and out of the

radio

1. Music and entertainment are

key

Information/ traffic updates

Songs ..for all

Happenings .. youngsters

Tips

Conversation

Dial Ins/ Contests

Radio jockeys

Jokes

3. Listening habits led by time and

mood

Lively songs during day, slow songs in evening

5. Relationship with radio varies by

segment

Students: companion among crowd

companion without intruding on space

Housewives:companion whilst

alone, connection to outside world

Professionals:background filler with points of engagement

“”you get to know the traffic update”“You are given current affairs

news…what's happening around Delhi”“They tell you about the weather, where

to go in the weekend”“you know the songs that are coming on radio…and you sing

along with it…”

College/ friends/ courses Friends Family

6 a.m 10 a.m 2-3 p.m 5 p.m 8 p.m 10 p.m8 a.m

In the background

Self Self

On route

Post return

In Back-ground Out of home activity. Family

6 a.m 9 a.m

7-8 p.m 10 p.m10 a.m

Self (especially if unmarried)

On the

road

On the

road

In the background

Self + kids Family

6 a.m 10 a.m 1 p.m 5 p.m 8 p.m 10 p.m6 p.m

Self + hubbySelf

SelfSelf

How people use radio

RADIO:

Part of daily routine

Background, non-intrusive

Companion whilst alone

Indulgence for self

RADIO:

Time pass

Private moments

Energising, pep

RADIO:

Energising, off-set stress

Unwinding

Fill monotonous journey

ENVIRONMENTAL ANALYSIS: 98.3 FM

EXTERNAL: PEST ANALYSIS POLITICAL: To enter in the industry, high one time entry fee has to be given Up to 15 % annual hike In licensee fee Only 10 year of license is valid. ECONOMIC: RJ’s mainly attracted by package that has been offered to them by competitors. SOCIAL: Showing responsibility towards various NGO Help in June 2005 Mumbai flood. TECHNOLOGICAL: Before 2000, there were only two music stations, but after that radio industry came

up with private Channels with different frequencies. Today ENIL has 40 stations. Internet radio is introduced. Modern equipment and highly technical transmitters are used. Visually appealing materials are also associated.

MARKET LADDER

Big FMVery new

Name at times not spontaneously evoked..

Radio OneNot spontaneously recalled…at probe level..no distinctive

imagery AIR FM

Old and boring

Fever FM

High awarenessPopular among

youngsters enjoying high-tempo and English music

Hit FM

New but fast gaining popularity

Radio City

Growing oldPopular once upon a time but losing out

as not very dynamic

Red FM

Growing steadilyPlaying enjoyable, new music and also fun programming Radio Mirchi

Strong imagery…that of spicy, young and dynamic

Well known RJs and programmes…Plays music resonating with young

generation

Respondents placed stations on a ladder, based on their perception of how successful they are…

Very newName at times not

spontaneously evoked..

Old

ON-AIR DELIVERABLES: The range of Services to clients:Free Commercial time:@ SPOTS: Information about the brand recorded once and is repeated for a

number of times.@ R.J. Mentions: R.J’s keep mentioning about the brand/client, live during a

show, it’s not pre-recorded.@ ON-AIR CONTESTS: Contests played during an on-air show like best recipe

with Hamdard Roohafza. Activation: (ATL + BTL)@ PRE-HYPE PROMOS: Promos specially created to create hype before the

activity.@ Activity Promos: On-air announcement of all the details of the on-ground

activity, along with the brand name.@ Winner Bytes: Recordings of the winners of the on-ground activity for on-air

broadcasting telling about the brand & the activity.@ RJ Mentions: RJ is present at the activity venue & does live mentions about

the activity on-air.@ Special Properties: These are properties owned by Radio Stations which

are sponsored by the client accordingly as client’s brand can leverage that property.

Maruti Suzuki being an automobile company sponsor the “Mirchi Traffic Beats” property of Radio Mirchi.

Live

Per

form

ance

s

Brand Driven – Activation

Special B

rand Integration on R

adio

Media Property

ACTIVATION SPECTRUM

Sponsorship modelMultiple clients on each activityTypically 1 PS & 2-3 AS, Execution is outsourced to an agencyActivity wise P&L, Costs broken up into on-ground & (on-air) costsCost to revenue ratio – 1:2.5

SWOT AnalysisStrength WeaknessInteractive medium Fragmented AudiencePenetration in remote villages Less DifferentiationLow content cost Creative compromise

Difference in prime time in comparison with TV Short commercials Excellent complementary & background medium Cost effective to advertisers

Threat OpportunityGovt. owned channel – AIR Fastest growing segment of the media and

Government Policies entertainment industry Technology Beneficiary of the buoyant growth ofHuge Sunk cost major advertisersTalent issues Reduction in license fees

Awareness & growth

RADIO is a step towards evolution, a strategy, a podium that is flexible & adaptable assuring that the clients Product/Service/Brand/ Message reach to maximum TG

Conclusion FM market – 5 things to take away

1. .

1. FM radio programming is based on fun and entertainment, with all programescentered around music

2. Radio listening is mood led, and people tend to stick to a certain time of listening which fits in with their lifestyle

3. Few RJs have resonated with listeners, but those most successful have developed a strong relationship with the listeners as empathetic, friendly and person-next doorwith persona as fun, lively, youthful, smart and cool

4. Other than the government owned channel (AIR) which is associated with being boring and old, all other channels are fighting in the same space with little differentiation – Mirchi is currently top.

5. FM has changed the market and radio is now unrecognizable from the old time

RECOMMENDATIONS: 1. Planning: Specialists to handle timeline creation

through comprehensive checklist & manage every detail of the pre-event planning.

2. Preparation & Programming: The programming team has to be well trained & has skills that they ensure a powerful radio plan, creating an impact at the TG & further fulfilling the client’s requirements.

3. Work on the principles: of excellence, price performance, and integrity, should be committed to achieving success for its clients by applying the full power of communications as an extension of business strategy and execution.

RadioBrands are promoted

on air, through

'live' links, interaction

with consumers.

Brands are promoted

on air, through

'live' links, interaction

with consumers.

… Hence helping the

brand to reach across

more no of audience

by amplificatio

n

… Hence helping the

brand to reach across

more no of audience

by amplificatio

n

Thank You !!!