1

CHAPTER 1- INTRODUCTION TO RADIO INDUSTRY

1.1 INTRODUCTION TO MEDIA
NEWSPAPER:
The emergence of the new media branch in the 17th century has to be seen in close connection
with the spread of the printing press from which the publishing press derives it name. A
newspaper is a regularly scheduled publication containing news, information, and advertising.
By 2007 there were 6580 daily newspapers in the world selling 395 million copies a day. The
worldwide recession of 2008, combined with the rapid growth of web-based alternatives, caused
a serious decline in advertising and circulation, as many papers closed or sharply retrenched
operations. A wide variety of material has been published in newspapers, including editorial
opinions, criticism, persuasion and op-eds; entertainment features such as crosswords, sudoku
and horoscopes; weather news and forecasts; advice, reviews of movies, classified ads; display
ads, editorial cartoons and comic strips.
TELEVISION:
Television (TV) is a widely used telecommunication medium for transmitting and receiving
moving images, either monochromatic ("black and white") or color, usually accompanied by
sound. "Television" may also refer specifically to a television set, television programming or
television transmission. The word is derived from mixed Latin and Greek roots, meaning "far
sight": Greek tele , far, and Latin visio, sight (from video, vis to see, or to view in the first
person).
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Commercially available since the late 1930s, the television set has become common in homes,
businesses and institutions, particularly as a source of entertainment and news. Since the 1970s
the availability of video cassettes, laserdiscs, dvds and now Blu-ray Discs, have resulted in the
television set frequently being used for viewing recorded as well as broadcast material.
RADIO:
Radio is the transmission of signals by modulation of electromagnetic waves with frequencies
below those of visible light. Electromagnetic radiation travels by means of oscillating
electromagnetic fields that pass through the air and the vacuum of space. Information is carried
by systematically changing (modulating) some property of the radiated waves, such as
amplitude, frequency, phase, or pulse width. When radio waves pass an electrical conductor, the
oscillating fields induce an alternating current in the conductor. This can be detected and
transformed into sound or other signals that carry information.
Radio systems used for communications will have the following elements. With more than 100
years of development, each process is implemented by a wide range of methods, specialized for
different communications purposes.





3

1.2 RADIO INDUSTRY
India has been among the fastest growing economies in the world, with a nominal GDP CAGR
of 9.94% over the last 10 years (1995-2005). The nominal GDP for fiscal 2005 was Rs. 30,636
billion. According to CSO estimates, nominal GDP growth for fiscal 2006 is estimated at 10.9%.
There is a correlation between the economic growth rates of a country i.e. The nominal GDP
growth rate, and growth rates of the advertising industry.
The key factors which have contributed to growth of the Indian advertising industry
include:
Rapid economic growth of the country on the back of economic liberalization and
deregulation
Increase in consumer prosperity
Entry of global consumer companies with large advertising budgets
Higher degree of competitive intensity among consumer companies
Growth in media vehicles leading to increase in media penetration.

4



5

1.3 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.
1.4 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: 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
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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.
1.5 KEY PLAYERS OF RADIO STATIONS
Player (Brand
Name)
No. Of
Stations
Cities of operations
Radio Mirchi 7 Delhi. Mumbai, Chennai, Kolkata, Indore,
Ahmedabad, Pune
Radio City 4 Mumbai, Delhi, Bangalore, Lucknow
Suryan FM 3 Chennai, Coimbatore, Tirunelvelli
Red FM 3 Mumbai, Delhi, Kolkata
Go FM 1 Mumbai
Visakha 1 Visakhapatnam
Aamar FM 1 Kolkata
Power FM 1 Kolkata
Source: TRAI data

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CHAPTER 2- INTRODUCTION TO RADIO MIRCHI RADIO MIRCHI
2.1 INTRODUCTION
Radio Mirchi is a nationwide network of private FM radio stations in India. It is owned by the
Entertainment Network India Ltd (ENIL), which is one of the subsidiaries of The Times Group.
"Mirchi" is Hindi for chili. The tagline of Radio Mirchi is "It's hot!".
The original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in
Indore. Until 1993, All India Radio or AIR, a government undertaking, was the only radio
broadcaster in India. The government then took the initiative to privatize the radio broadcasting
sector. It sold airtime blocks on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata,
Vizag and Goa to private operators, who developed their own program content. The Times
Group operated its brand, Times FM, till June 1998. After that, the government decided not to
renew contracts given to private operators.
First round of licenses
In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won
the largest number of frequencies, and thus started its operations under the brand name Radio
Mirchi.
Second round of licenses
In January 2006, Radio Mirchi bagged 25 frequencies in the second wave of licences that were
issued by the Government of India. This pushes the Radio Mirchi presence in 32 centers. In the
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first wave of launches, Indore was the first city in India having grade of first private radio
channel.Times decided to start radio channel to address the mass audience as advertisers can be
attracted by showing a low cost per thousand.
2.2 AREAS OF OPERATION
Currently, Radio Mirchi has a presence in more than 33 cities, including the 6 metros of India
and Radio Mirchi is the costliest station in India as they charge more than double of the
competition.Radio Mirchi believes premiumness can be achieved by charging more from the
clients. :
98.3 FM - Ahmedabad Tagline "Radio Mirchi - It's hot"..
98.3 FM - Aurangabad, Maharashtra Tagline "Mirchi Sunne Wale Always Khush"
Started On 23 July 2007.
98.3 FM - Bangalore It uses the tagline "Sakkath hot maga!" in Bangalore.
98.3 FM - Bhopal Tagline "Radio Mirchi - It's Hot"
98.3 FM - Chennai It uses the tagline "Idhu semmma hot machchi!" in Chennai.
98.3 FM - Coimbatore Service started on November 2007 "Idhu semmma hot machchi!"
98.3 FM - Delhi "Its Hot"
98.3 FM - Jaipur "Its Hot"
98.3 FM - Mumbai "Its Hot"
98.3 FM - Gwalior It user the tagline "Gwalior Jhoome"
98.3 FM - Hyderabad It uses the tagline "Idi chaala hot guru!" in Hyderabad.
98.3 FM - Indore, Tagline "Radio Mirchi - It's hot..".
98.3 FM - Jabalpur, It uses the tagline "Radio Mirchi - It's Hot"
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98.3 FM - Kanpur - Tagline - "Mirchis sunnewale always khush" and "Radio Mirchi,it's
hot"
98.3 FM - Kolhapur Tagline -" Radio Mirchi - It's Hot "
98.3 FM - Kolkata It uses the tagline "Michi shone j always khushi thake se."
98.3 FM - Nasik - It uses the tagline "Mirchi Sunne wale Always Khush" &"Garam
Ahe!" On AIR since 6 July 2007
98.3 FM - Pune Tagline - "Radio Mirchi - It's Hot" / Radio Mirchi - Tikhat Aahe!
98.3 FM - Patna Tagline - "Radio Mirchi - It's Hot" /It is first station of second phase.
98.3 FM - Jalandhar Tagline - "Mirchi Sunne Wale Always Khush" & "It's Hot".
98.3 FM - Goa Tagline - "Radio Mirchi - It's Hot"
98.3 FM - Ujjain Tagline "Its Hot"
98.3 FM - Vadodara Tagline - "Mirchi Sunne Wale Always Khush" & "It's Hot".
98.3 FM - Rajkot Tagline "Radio Mirchi - It's Hot"
98.3 FM - Raipur
98.3 FM - Varanasi - Services Started on 14 July 2007
98.3 FM - Lucknow - Services started on 14 August 2007
98.3 FM - Surat - Service started on 20 August 2007
98.3 FM - Nagpur - Service started on 18 October 2007. Tagline- same as above
98.3 FM - Madurai - Service started on September 2007.It's tagline is "Idhu semmma hot
machchi !" (meaning 'It's too hot'
98.3 FM - Mangalore - Service started on November 2007
98.3 FM - Vijayawada - Service started on December 2007 Tagline "idi chaala hot guru!"
98.3 FM - Vizag - Service started on October 2007 Tagline "idi chaala hot guru!"
10

98.3 FM - Thiruvananthapuram- Service started on 28 January 2008
[1]
Tagline:
"Sangathi HOT aanu!"
It reaches out to almost 52% of FM radio listeners in Delhi 44% in Mumbai,40% in Indore,35%
in Jaipur,30% in Bhopal, 20% Chennai, 17% in Kolkata, 15% in Nagpur,10% in Bangalore and
02% in Raipur. Radio Mirchi has started providing Visual Radio to its subscribers in Delhi from
25 July, 2006 onwards and in Mumbai from September 2006. It also has started its Visual Radio
service from Kolkata recently.
2.3 COMPETITIVE STRENGTH OF RADIO MIRCHI
LARGEST OPERATING NETWORK AND REACH AMONG LISTENERS
They have the largest operating network among private FM radio broadcasters based on our
operational stations in the four metropolitan cities and six other cities. We also have the highest
listnership among private FM radio broadcasters in India. We believe that our industry-leading
operating network and listener reach enable us to offer an attractive advertising platform to our
advertisers.

TRACK RECORD OF DEVELOPING INNOVATIVE AND CREATIVE CONTENT
They have a track record of developing creative and innovative content and programming
formats, which has helped us expand our base of listeners and advertisers. We believe that we
have developed good relationships with the film industry in India, including the Hindi, Bengali
and Tamil film industries, and have successfully developed unique programmes and shows with
the participation of film industry artists. Further, in the recent past, Radio Mirchi has been among
11

the first private FM radio networks in India to release the sound recordings for popular Hindi
films. We also secured exclusive FM broadcasting rights of the music of these films for up to
two weeks after the initial release of the music. We have also developed various on-air fictional
'characters' such as Professor Kawas and Go Go Ganguli that have become popular with certain
sections of our listeners and has helped in attracting and retaining listeners.
PROVEN ABILITY TO SUCCESSFULLY OPERATE IN DIVERSE MARKETS
Our FM radio stations are located in diverse regions in India and we have been successful in
attracting local listeners in each of these markets. Our superior understanding of audience
preferences enables us to provide content that is customized to the taste, language and culture of
the local audience. We intend to leverage this expertise to attract new listeners as we expand our
footprint to more cities and towns in India.
RADIO MIRCHI BRAND IS WIDELY RECOGNIZED
We have focused on investing in and developing the Radio Mirchi brand, which is widely
recognized in its markets. As per ILT Wave 5, Radio Mirchi brand had awareness of 95% in
Mumbai and 100% in Delhi. We advertise and promote the brand through various media
platforms including print, television, cinema and out-of-home media. Our on-ground events and
on-air promotions have also helped enhance the recognition of Radio Mirchi brand. For example,
our on-air promotion '983 - Kismat Khol De' in Delhi won the gold medal for "Best Activity
Generating Brand Loyalty" at the 2004 Promotion Marketing Awards of Asia. We also organize
annual events such as the Mirchi Kaan awards, where the jury includes pre-eminent advertising
agency professionals, and a workshop series called radioworks, where we invite noted
international speakers. These events help in building the FM radio industry as well as promoting
the Radio Mirchi brand.
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STRONG ADVERTISEMENT SALES CAPABILITIES
Based on Aircheck data we have attracted 773 advertisers in the four metropolitan cities during
the period from October 1, 2004 to September 30, 2005 which is the highest amongst all private
FM radio broadcasters. Our sales team has established strong relationships with advertisers and
advertising agencies. We focus on understanding the needs of our advertisers and advertising
agencies to offer customized advertising packages and marketing opportunities. Our sales team
works independently of the advertising sales efforts of other entities in the Times Group. We
follow several innovative advertising sales practices such as per-second billing, providing
services for production of advertisements at nominal cost and offering our studio space for pre-
production work, which have helped strengthen our relationships with advertisers and advertising
agencies.
HIGH QUALITY STUDIO AND TRANSMISSION EQUIPMENT
For our studio and transmission facilities, we have invested in high quality equipment. Most of
our key equipment, such as transmitters, mixers and codecs, has been sourced from suppliers
based in United States and Canada. We believe that our investment in technology helps increase
the quality of broadcast and coverage in each of our local markets.





13

CHAPTER 3- ENVIRONMENTAL ANALYSIS OF RADIO MIRCHI
I. EXTERNAL ENVIRONMENT
PEST ANALYSIS
POLITICAL
To enter in the industry, high one time entry fee has to be given
There is no FDI allowed in this sector
Up to 15 % annual hike In licensee fee
Only 10 year of license is valid.
ECONOMIC
RJs 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 we have 10 music stations.
Internet radio is introduced.
Modern equipment and highly technical transmitters are used
Visually appealing materials are also associated
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II. COMPETITIVE ENVIRONMENT
Radio Mirchis high end competitor FEVER 104 FM- was evaluated on several key factors,
such as type of music they both play, promotional activities, product offering and overall
presence in the competitive arena.
Radio Mirchi is facing a high competition from FEVER 104FM. Fever 104 is just 2yr Old and it
is already creating greater threat for other music stations including Radio Mirchi.
Fever 104 is a brand owned by Hindustan Times Group. Basically it is handled by HT Music and
Virgin Radio. The main advantage of FEVER is that, apart from Hindi music, they also play
Pure English music, which is automatically becomes threat to Radio Mirchi.
But the competition from other music stations is quite low. Secondly, the advertisers and other
brands that associated with Radio Mirchi are loyal to them. Plus, Almost 53 per cent of daily
listeners of Radio Mirchi choose not to tune in to any other radio station. That makes the market
environment attractive for Radio Mirchi.

III. INTERNAL ENVIRONMENT
SWOT ANALYSIS
STRENGTHS
Radio Mirchi known for giving superior quality music and benefits to their customers.
It delivers the best combination of innovative content and interesting initiatives.
Serve each and every section of public starting from the children to 70+ aged.
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According to the latest listenership figures released by IMRB International's Media &
Panel Unit, confirms Radio Mirchi as the leading FM Radio station ahead of Red FM and
Radio City. With 12.1 laky daily listeners, Radio Mirchi leads with a 72 per cent share of
the market.
MRB conducts the in-car listening research every fortnight in Delhi, and findings indicate
that Radio Mirchi is the favored station on the roads with a share over 50 per cent on an
average since launch.
The research reveals that Radio Mirchi enjoys the highest "loyalty" among its listeners.
Radio Mirchi has partnered with VIBGYOR 2008 (college fest of International School of
Business and Media).
Also with BLITZKRIEG 2008 (ICFAI Business School), COBWEB 2008 (college fest of
LHMC) and SPANDAN 2008 (college fest of Vivekananda College).
Their wide and national footprint enables our advertisers to reach the largest number of
listeners among private operators in high income cities and adjoining areas.
Also won awards for its successful brand building.
The '983 - Kismat Khol De' Contest won the Gold medal for Best Activity generating
Brand Loyalty at the Promotion Marketing Awards of Asia 2004.
Bronze medal for Best Activity generating Brand Awareness and Trial recruitment at the
Promotion Marketing Awards of Asia 2004.
WEAKNESS
Listeners faces major distraction from advertisements aired in between the show.
Long waiting queues to connect with them by calling.
Radio jockeys had no long lasting career.
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\OPPORTUNITY

Future plans include exploring opportunities to become FM radio broadcasters or content
providers in international markets at an appropriate time, either directly or through
strategic partnerships or inorganic initiatives.
Great opportunity in the field of generating their own news show on air.
Field of internet radio

THREATS
Still facing threat from AIR FM and FM Gold. Both are take care by government bodies.
High threat from all private music station, specifically from Fever 104FM, 93.5Red FM,
91.1 Radio city.
Recent threat is Meow 104.8FM, which is completely women oriented music station.










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CHAPTER 4- MARKETING STRATEGY ADOPTED BY RADIO MIRCHI
4.1 MARKETING MIX OF RADIO MIRCHI
The punch line of Radio Mirchi (Mirchi sunnewale always khush) focuses on its customer and
the quality of music provided by them. They try to come up with new innovative ideas thereby
making their radio the most preferred station with largest listenership. There latest innovation is
in the style of radio jockeys. Generally, radio jockeys speak non-stop quite fast entertaining the
masses. But there is new RJ named Sudh who talks at a slower pace but in a weird tone. His way
of telling jokes attracts people to him.
PRICE & PLACE are the two factors which has no impact on the customers( .i.e. Radio
listeners) of Radio Mirchi since they dont pay for listening radio and it is available
everywhere(rather in pockets of every person in the form of mobile)
PROMOTION
Cross media marketing
Bite a mirchi a get a pepsi free
Mirchi packets
Online promotion (983 kismat khol de)
Dabbawallas
Mumbai marathon
Mirchi khoobsurat
9 baj gaye kya
Mirchi kaan awards
Innovative programs (pappi da, go go ganguli,Mr. Hot crack pot,Ding-Dong)
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Jingles and promos
Sponsored events in schools and colleges
Mirchi job fest
Mirchi activation team
Radio workz
PRODUCT
High quality studio and transmission equipment
Mass audience
Multilinguistic programs
Customization
Emphasis on culture
PLACE AND TIME
Broadcasting (Ahmedabad,Mumbai,Banglore,Chennai,Indore,Kolkata,Lucknow
etc.)
Various programs at various time
Family (7:00-11:00 am)
Housewife(11:00-2:00 pm)
Youth(2:00-5:00 pm)
Evening Drive(5:00-9:00 pm)
Late evening(9:00-11:00 pm)
Night(11:00-1:00 am)
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Late night(1:00-7:00 am)
PHYSICAL ENVIORNMENT
High quality studio and transmission equipment
DTH Radio involved radio broadcast from radio station via satellites
Good radio frequencies
PROCESS
Direct attachment with audience
Talented RJs
Direct to home radio
Visual radio
Internet radio
Digital audio broadcasting
Satellite radio
Seprate sales team of 130 employees in 8 cities
PEOPLE
Hired skilled RJs
Emphasised on audience choice
Level of customer involvements

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4.2 MARKETING PLANS OF RADIO MIRCHI

This Marketing Plan is developed for the brand RADIO MIRCHI 98.3FM. It is Owned by the
company ENTERTAINMENT NETWORK INDIA LTD.(ENIL) ENIL is promoted by Bennett,
Coleman & Co. Limited (BCCL) which is one of The largest media and entertainment
companies in India, operating in various media Segments such as print media and television
broadcasting. Before we begin, lets know a little about Radio Mirchi. The original avatar of
Radio Mirchi was Times FM, which is probably the most famous radio in India Which began its
operation in 1993. Until 1993, AIR, a government undertaking, Was the only radio broadcaster
in India. The government then took the initiative to Privatize the radio broadcasting sector. It
sold airtime blocks on its FM channels to Private operators, who developed their own program
content. The Times Group Operated its brand, Times FM, till June 1998. After that, the
government decided Not to renew contracts given to private operators.

In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won
the largest number of frequencies, thereby acquiring a national Footprint, and becoming the only
commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities.
Earlier available in the seven cities Of Mumbai, Delhi, Kolkata, Chennai, Pune, Indore
andAhmedabad, now it is also Available in key markets of Bangalore, Hyderabad, Jaipur, Patna
& Jalandhar Thereby taking the tally to 12 stations across India. It's the largest private FM Radio
Operator in the country in terms of number of operational stations and revenue.

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Though Radio Mirchi FM radio stations are located in diverse regions in India It's been
successful in attracting local audiences in each of these markets. This is Largely due to a superior
understanding of audience preferences, which enables it to Provide content customized to the
taste, language and culture of the local audience.













22

4.3 MARKETING STRATEGY BY RADIO MIRCHI
1) COMPETITVE STRATEGY
On the basis of GE Matrix, Radio Mirchi proved to be a leader in Radio industry.
Many research also shows that it is a confirm leader, latest by 05th January 2009.
In this scenario Radio Mirchi must sustain its position and need to apply some special strategies.
We suggest Radio Mirchi..
increases which would later attract clients again.
power.
yet not being touch by any private channel.
This helps Radio Mirchi to secure exclusive FM broadcasting rights of the music of leading films
for up to two weeks after the initial release of the music. In spite 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 17 local tastes. Radio Mirchi takes care of all these
needs in the best way by broadcasting shows keeping in mind the customer needs and their free
time(so that they can listen their favorite shows at free time). On this basis, Radio Mirchi
segmented their customer (time slots they get free) and targeted them in such a way that no other
FM Station could change the bit of positioning done by it.


23

2) TARGET CUSTOMER PROFILE

The Radio Mirchi target market was defined using interesting factors such as lifestyle, attitudes,
occasions rather than demographic information alone. Although the customer description
generally fall within the demographic that have been identified, this approach will provide an
increased understanding of what motivates the listener and can be used to focus target marketing
and positioning efforts more precisely.
Radio is the source of entertainment for every individual of any age group whether it is children,
youngsters, housewives or aged people. Radio satisfy different needs of the people such as
entertainment( which is the most important one), Bollywood Gossips, Recipe of different types
of food, Child care tips, relationship problems, career guidance, Beauty Secrets, etc. ENIL has
developed good relationships with the film industry in India helping it to have innovative and
creative content.







24

4.4 STRATEGIES ADOPTED BY RADIO MIRCHI
EXPAND OUR FOOTPRINT
Under the Phase II Policy, We are successful in winning 25 of the radio channels that we bid for,
we will expand our footprint and cover additional markets and regions in India. We also intend
to explore opportunities to become FM radio broadcasters or content providers in international
markets, either directly or through strategic partnerships, arrangements, joint ventures or
acquisitions.
LEVERAGE OUR FOOTPRINT TO CAPTURE ADDITIONAL INCOME
We intend to leverage our footprint of seven operational stations and any other station that we
acquire in future to enhance our audience base and income. Any expansion of our footprint
would allow us to target a greater number of potential advertisers in new markets. Further, any
increase in our listenership reach would allow advertisers to address a larger audience.
CONTINUOUSLY INVEST IN BRAND BUILDING AND PROGRAMMING
INNOVATION
We intend to maintain and enhance the leadership position of our radio stations through
continuous innovation, focused marketing, intensive brand building and exploiting the interactive
nature of FM radio. We plan to engage current and potential listeners through on-air as well as
off-air activities. We intend to increase our use of research generated internally as well as
provided by external agencies to continuously monitor the evolving needs of our audience and
advertisers.
EXPLOIT ADDITIONAL REVENUE STREAMS
In addition to our income from airtime sales on our FM radio channels, we intend to focus on
25

creating or expanding additional revenue streams. We have already launched Mirchi Activation
events which are promoted through our radio channels and enable us to enhance our revenue
from airtime sales as well as attract new advertisers. Additional income streams may also include
revenue from smss or calls received from our listeners, or from the sale or licensing of content to
third parties, whether in India or in international markets. We have also recently provided
consultancy services to an industrial group in Bangladesh for setting up radio stations. We have
also entered into an agreement with Hewlett-Packard India Sales Private Limited ("HP") to
launch visual radio services for the first time in India. With visual radio, images and texts are
synchronized with the radio broadcast to bring information and interactivity directly to a mobile
phone. As part of this agreement we have an exclusivity period which will give us the first mover
advantage. Visual radio services also provide an additional advertising opportunity to our clients.
These services also provide us with additional advertising revenues from our clients as well as
digital service revenues from the telecommunications sector that HP shares with us.
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.
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.
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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.









27

CHAPTER 5- BURNING ISSUE

5.1 RISHIKAR KRISHNA JOINS RADIO MIRCHI AS HEAD, MARKETING
December 27, 2013
Radio Mirchi has appointed Rishikar Krishna as head, marketing, Mirchi Properties, ENIL. He
will be responsible for the conceptualisation, design and marketing of various intellectual
properties of Radio Mirchi.
Based in Mumbai, Krishna will report to Mahesh Shetty, chief strategy officer, Radio Mirchi.
Earlier, Krishna was with Skechers USA as associate director, marketing and was responsible for
creation of brand awareness and brand preference in the Indian market.
About his new role, Krishna says, "My key responsibilities at Radio Mirchi will be to manage
shows and concepts that we call 'properties'. For now, I will take care of Mirchi Music Awards
and Mirchi Top 20." His job will be to add new elements to the brand and take them to market.
Krishna has more than a decade of experience. In his previous stint at Radio Mirchi, roles he
held (over a span of seven years) included group manager, corporate marketing; senior manager,
marketing; and manager, marketing.
Krishna holds an MBA degree in marketing from University of Pune. He began his career with
Philips Consumer Electronics as assistant manager, marketing and worked there for around two
and a half years before moving to Radio Mirchi. At Philips, the launch of pocket FM radios was
an important milestone.
Among the awards he has won over the years are names such as Midas Award and Designomics
Award for digital innovation, among others.
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5.2 RADIO MIRCHI RESULTS STRONG, PAT GROWS 38%
ET BUREAU FEB 11, 2014, 04.00AM IST


NEW DELHI: Entertainment Network (India) Ltd (ENIL), which operates the popular FM radio
channel Radio Mirchi, reported 38% higher net profit for the quarter ended September 30, 2013
to Rs 25.8 crore from Rs 18.7 crore a year ago. Revenues for the quarter were 12.7% higher at
Rs 98.5 crore as compared to Rs 87.4 crore a year ago.
The company's earnings before interest, tax, depreciation and amortization (EBITDA) stood at
Rs 38.2 crore, up 26.7%. The company's EBITDA margin improved from 34.5% in Q3 FY13 to
38.8% during the current quarter. Prashant Panday, executive director and chief executive
officer, ENIL said that the company had done well in a tough economic environment.
"Our EBITDA and PAT numbers are the highest ever since inception. Our revenues are the
highest ever for Q3 since inception. While the going will remain tough in the months to come,
we expect a gradual turnaround resulting in improving medium to long term growth prospects.
There is good news on the regulatory front as well with TRAI expected to offer a formula for
renewal of current Phase-2 licenses, and with MIB finally expected to go ahead with Phase-3
auctions," said Panday.




29

CONCLUSION
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.
Radio mirchi has adopted growth strategy after the wave of privatization.






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BIBLOGRAPHY
www.radiomirchi.com
www.enil.co.in/radiomirchi.php
https://www.facebook.com/mirchi983fm
article on cis: http://mumbai-radio mirchi.com/marketing-strategies.html
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