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From the research done on teenagers it is evident that most of the respondents are
males and females of the age group 25 to 35. The listening habits of the respondent’s
shows that they want to listen Radio for information. The response received from
them shows that most of the respondents want to listen to music in the evening. They
like to listen Fashion Updates apart from music. Some of them want their Personal
issues to be discussed on the Station itself.
We all know that teenagers get more influenced from celebrities so they should be
called on the shows. Every child want to be informative in every aspect so there
should be more Fashion updates and discussion on the social issues. Quizzes and chat
shows are most liked by the teenagers so it should organize chat shows and quizzes
for them.
Listening to radio as well as the number of radio listeners had increased over the past
two years Delhi registered the highest growth rate in terms of new listeners at 35%“
Radio track 2003”. The geographical area covered by radio in India is as high as 98%.
Currently radio has just 2% of the 9000 crore Indian advertising market according to
an “Arthur Anderson’s survey”.
Given that radio has penetrated into 100 millions home and a FM set cost around Rs.
50/- FICCI estimates FM’s share up from the present 1.5%to 5% in five years (2008
-2013). They have also forecasted that revenues from radio advertising in India will
be Rs. 1200 crores by 2013.
Our survey predicted that advertisements on radio must increases in coming years.
While TV is a family medium, radio is personalized. “Advertising of certain product
seems to work very well while some might not. For example, cellular phone service
or auto related products would have a impact when advertised on radio is primarily
known as a “drive time” medium” “Arthur Anderson’s survey”.
Teanagers want to listen to radio in evening as well as at night so radio channels can
advertise fashion updates, beauty tips, information about colleges etc at that time.
Similarly service class people prefer to listen to radio while traveling to office and in
evening so advertisements regarding real sector, IPO, auto etc can presented during
this time ,to grab the attention of target audience.
The number of people listen to radio has increased tremendously in Delhi, Secondly
among all the sources of advertising radio advertising is the two folds cheaper than
other sources, with the coverage of 98% of total geographical area. So if one wants to
advertise there product to whole Delhi in one go and at cheaper cost then radio
advertisements is best option for them. In next three years radio became one of the
stronger competitor of INTERNT as these two are only sources which provide TWO-
WAY communication to people.
Acoording to NDTV report:
Overall advertisement revenue to its different sources is Rs. 21314 crores . which is
20% more than last year because of intense competition prevailing these days. Among
this:
SOURCES MARKET SHARE REVENUE
TELEVISION 40% 8674 Crores
PRINT 46% 10000 Crores
CINEMA 0.7% 149 Crores
OUTDOOR 6.82% 1454 Crores
RADIO 4.78% 1018 Crores
INTERNET 1.7% 362 Crores
LITERATURE REVIEW
“RADIO GA GA GA” FM- The Road ahead
Despite pre-dating commercial television by about 50 years, radio in India
lags behind other media by many a mile in terms of share of the
advertising monies – while worldwide radio garners 5-12% of the
advertising monies, in India radio manages less than 2%. FM signals do
not need expensive transmission towers. In mature radio markets
worldwide, the medium has survived the onslaught of commercial
television with the help of FM. FM Radio enables a great degree of
localization and hence brings along interactivity with a local flavour, at
relatively low broadcast costs, which cannot be matched by television. In
1999, the Indian Government decided to allow private FM stations in India
through a bidding process where bids were invited for 32 cities.
“Fact is, AM-FM radio is healthy as ever”
Listening is actually higher among the iPod crowd
By Diego Vasquez
Apr 26, 2007
Digital music devotees are spending as much or more time listening to
terrestrial radio as their non-digital counterparts, according to a study
released last week by ratings company Arbitron. The study suggests these
people are simply making more time in their schedule for different music
media rather than weeding the older types out. The study found that
respondents ages 12 and older spent an average two hours and 37
minutes listening to FM radio per day compared with two hours and 45
minutes for those who listen to online radio, subscribe to satellite, or have
ever listened to an audio podcast. Digital platform growth continues to be
slow. The study found the weekly web radio audience is roughly flat to the
past year, at 29 million, or 11 percent respondents.
Consumer Adoption of New Radio Distribution Systems
By
Constance Ledoux Book, Ph.D.
Elon University &
Don A. Grady, Ph.D.
Elon University
NAB Grant Report
June 2005
Abstract
Since its inception, terrestrial radio has been threatened by a number of competing
technologies. Despite these challenges, radio has continued to thrive, and many
observers have described radio as one of, if not the most, adaptable form of mass
media. The rapidly evolving industry of digital audio programming has introduced a
host of new competitors, including: satellite radio, Internet radio, and personal audio
devices, such as iPods, CD & MP3 players, and now cell phones.
Of the new digital audio challengers, satellite radio has emerged as a
potential threat to terrestrial radio broadcasters.
OBJECTIVES
This project is made with a purpose to study the advertisement senario on radio with
special reference to NCR region .The advertisement senario on radio is analsed
through customer preferences and through competitive senario. As this is one of the
cheapest source of advertisement in INDIA , other than this through radio
advertisement advertisers are able to reach that area also which is still untapped by
television, internet etc.
1. NEED FOR SURVEY
Today radio is one of the emerging sources of advertising. The point of conducting a
survey is to predict the radio advertisements scenario in future. So that advertisers can
present there advertisements at right time to grab the attention of target audience.
2. RESEARCH METHODOLOGY
Type of Research:
The research design constitutes the blueprint of the collection, measurement and the
analysis of data. The research design is the plan and structure of investigation so
conceived as to obtain answers to research questions. The plan is the overall scheme
or program of the research. I have adopted Descriptive Research. Descriptive research
is used to describe the conditions that are prevailing in the place where the research
study is conducted.
Sampling Technique:
Sampling is simply the process of learning about the population on the basis of a
sample. Thus in a sampling technique instead of every unit of the universe only a part
of the universe is studied and conclusions are drawn on the basis for the entire
universe.
A sample is a subset of the population units. I have adopted Random Sampling.
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Abbreviation: Descriptive research: A type of conclusive research that has as its major objective the
description of something----- usually market characteristics or function.
Sample size:
The main concentration was to reduce the cost substantially. Now if I would have
surveyed to a relatively larger number of units would mean relatively high cost .
Hence, the sample size consists of 100 for this research.
Earlier, India's attempts to privatise its FM channels ran into rough weather when
private players bid heavily and most could not meet their commitments to pay the
government the amounts they owed.India's new private FM channels could also
change the advertising scenario. Traditionally, radio accounts for 7% to 8% of
advertiser expenditures around the world. In India, it is less than 2% at present
According to NRS reports, radio is the media with the highest and fastest paced
growth prospects in the country today. The revised license fee structure - from a flat
fee model to a revenue sharing one announced in 2005 has been an advantageous
move for the Indian Radio Industry . Which radio station you listen to ? Radio City,
Radio Mirchi or Big FM ? For the last 6-7 years, the radio era started back again. Lot
of FM stations are starting up now a days and these three are the top among all.
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Abbreviation: NRS report: National Readership Report
The journey of radio in India began with the government broadcasting agencies
like AIR and Prasar Bharti. At the time of partition radio coverage in India was only
11% of the population and it now stands at 99.13%. All India Radio now under Prasar
Bharati has the distinction of being one of the major broadcasting organizations in the
world. The benefits of the seeds, which were sowed by the radio pioneers in the early
days, are being reaped by the booming radio industry today.
When the government changed its policy and opened the doors to private players
the scene of radio in India was changed forever. The first private FM radio station
began in the year 2001, so this is the right time to look at how the radio industry has
grown in these six years, where it has reached and where all it can go. There is little
doubt that the current radio industry scenario is one of pure youthful energy and
spurting growth. According to “PricewaterhouseCoopers” estimates the radio industry
is projected to be a Rs 1400 crore industry by 2010. The last few years have been one
of growth for the private FM stations, with about 150 private FM stations expected to
be on air by the end of 2008. A total of 700 more are set to gain licenses in the third
phase, with this the war of the air waves is just round the corner. FM radio coverage is
expected to spread from the current 15 percent to 60 percent of Indian population
after the third phase of licensing.
With the governmental nod to community radio has opened the floodgates for
peoples participation in the radio movement. It has given a voice to the voiceless
masses and radio is fast emerging as a tool for development, growth and prosperity
FATHER OF FM RADIO
Armstrong is best known as the father of frequency modulation, or FM. Because of his work,
FM radio is the preferred format for broadcast music, while the AM band has largely been
relegated to the realm of news and talk. Because of pioneering work performed by Armstrong
we also have access to other commonly used technologies like television, radar, and cellular
telephony.
Old media don’t die! They just bounce back in new avatars. Not so long ago radio had been
written off as fuddy-duddy, down market and not so cool. Television and later “new media”
were touted to being the media of the future. But thanks to technology radio is making a
comeback. In fact, in its new avatar fm-radio is all set to become the hippest, coolest and most
with- it medium.
FM radio is a new entity altogether and has to deal with new market dynamics. Media owners
dealing with new market will virtually have to draw up their strategies as they go along,
create programming that is new, innovative and grab away eyeballs from TV sets and make
them tune into their radio sets.
It’s a whole new challenge and competition is never far away. Ad revenues will also not be
easy to come by, as advertisers will expect media players to put their money where their
speakers are before they commit large sums of money towards radio advertising. The other
challenge for radio in attracting advertisers is the nature of the medium-radio has always
considered being a reminder medium. The involvement of listeners to radio is low, Vis a Vis
television or print media.
However in spite of the various challenges the emergence of private FM station is certain to
increase the quantum of radio advertising in the country, much like satellite channels did to
the quantum of television advertising in the country. That should open up a vast new market
of consumers-100 million Indian households own an estimated 150 million radios,
outnumbering television.
The geographical area covered by radio in India is as high as 98% and the penetration level is
approximately 97%. But FM presently covers only 17% of the area and 21% of the population
of India through transmitters. Currently radio has just 2% of the 9000 crore Indian advertising
market according to an Arthur Anderson’s survey. Globally depending on each country, radio
has a 5% to 12% of the advertising cake. On the higher side are countries like the United
States with 13%, Canada with 12.7% and Spain with 9.1%. FM station executives are not
forthcoming on multi-platform strategies as yet.
Given that radio has penetrated into 100 millions home and a FM set cost around Rs. 50/-
FICCI estimates FM’s share up from the present 1.5%to 5% in five years. They have also
forecasted that revenues from radio advertising in India will be Rs. 1200 crores by 2005 and
Revenue of radio services is expected to rise to Rs. 689 crore by 2008 at a CAGR of 30%.
While TV is a family medium, radio is personalized. Also advertising of certain product
seems to work very well while some might not. For example, cellular phone service or auto
related products would have a impact when advertised on radio is primarily known as a “drive
time” medium most people who turn in are doing so while commuting. Thus the potential if
FM is better is bigger town, as the car population is much bigger. This would be the key when
evaluating the medium. Also one must not forget that radio continues to be a medium that has
tremendous reach among the poor and marginalized sections of security.
With the coming of more channels and the emergence of lifestyle advertising, radio will
become a push and pull medium. As said earlier, is not just making a comeback but is being
reincarnated into a new avatar.
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HISTORY
In the mid-30s, Major Edwin Armstrong, an inventor who had already devised a successful
circuit to improve AM radio, came up with a whole new approach to transmitting radio
signals. Armstrong was clearly a technical genius. Although his life was cut short, he's still
considered the most prolific inventor in radio's history.
Even though he had improved AM radio in significant ways, Armstrong was well aware of
AM radio's major limitations:
Among other things they closed down the FM station that they had helped Armstrong
build.Strongly believing in his invention, Armstrong started to develop FM radio on his own.
He sold rights to manufacture FM radios to several companies. By 1941, 50 FM stations were
on the air. Then the Japanese bombed Pearl Harbor. The ensuing war diverted resources and
froze development. David Sarnof and RCA, still out to hold control of their radio empire,
pressured the FCC to change all of the FM radio frequencies — a move they knew would
instantly obsolete all of the exiting FM radios, and cause Armstrong to lose his personal
investment in FM radio. Listeners were understandably upset at having their radios suddenly
rendered useless. And having been "burned once," they were reluctant to immediately go out
and buy new FM radios.
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Since most radio station owners didn't want to go to the expense of creating high-fidelity
programming just for their FM stations, the FCC allowed them to simulcast —
simultaneously broadcast the same programming on both their AM and FM stations.
Of course, this didn't show off FM's quality advantages and it did nothing to help the cause of
FM. (Years later, the FCC ruled against this practice of simulcasting.)
Armstrong never lived to see the great success of his invention. Nor will we know what other
inventions this genius of electronics might have contributed if his personal and financial
resources hadn't been devastated by years of legal battles.
Once FM radio started to make money, RCA quickly started pushing its development and
subsequently made millions of dollars from the sale of FM transmitters and equipment.
As we can see from the graph below, FM radio not only climbed out of the cellar of
popularity after Armstrong's death, but today it leads AM radio in both number of stations
and listeners. The green line represents the growth of noncommercial and NPR stations
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The top categories contributing to the growth of Radio are Banks, Financial Institutions,
Telecom, Retail, Media (TV Channel Promotions and Films), Auto, Real-estate and IPOs.
Radio has become a retailer’s dream come true and almost 70 % of the deals are tactical in
nature (linked to brand promotion rather than brand building). While in bigger cities, there is
an equal mix of local and national advertisers, in smaller towns, regional advertisers account
for 70 % of the total revenue. This is an indication of both the reduced entry cost and the lack
of other cost effective localized media options.
THE PLAYERS:
Over 240 private FM stations have become operational since phase 2 of the bidding for radio
channel licenses. Radio channels with the highest number of operational stations are Radio
Mirchi with 32 stations, Radio City with 16 stations, Big FM with 44 stations and My FM
with 17 stations.
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ABBREVATION: RAM- Radio Audience Measurement
THE PRODUCT:
The sudden glut of radio stations has resulted in similar-sounding stations with little variety in
content. With an eye on the big-spending ad categories, there has been an overabundance of
programming targeting the mass market. However, 2007 saw some radio stations coming out
with innovations in an attempt to cut through the clutter by differentiating on the basis of
conversational language, the kind of songs they played and RJ speak.
Most of the stations have moved from block formats, which addressed particular TGs in
different time bands to programming, which is now scheduled across the day. The former
required a “lean forward” listening approach to radio, which has so far been absent in a
growing market like India.
Radio now offers options beyond just advertising spots. Value additions in the form of
content integration and ground activation are now an integral part of many radio campaigns.
Today, 70% of the total radio revenues come from spot buys, with activations (10-12%) and
innovations (18-20%) making up the balance.
The growth of the satellite television audience saw proliferation of a number of satellite
television channels offering more choices to media buyers and consumers of entertainment.
Thus, the television broadcasting business, which started off as a single government
controlled television channel, now has over 300 channels covering the Indian footprint,
resulting in growing ad spends on this medium. Reforms and proliferation of private players
were the key reasons for this rapid growth of the share of television in the advertising
industry.
ADVANTAGES OF RADIO
• BROADLY SELECTIVITY
Specialized radio formats with prescribed audiences and coverage areas enable
advertisers to select the market they want to reach. From o marketing
perspective, radio has the ability to reach prospects by sex, age group, ethnic
or religious background, income group, employment category, educational
level or special interest with a format that adds even greater dimensions to its
already strong personal communication environment.
Radio’s high overall reach and instability to provide numerous formats make it
a multi factor medium. Because of the relatively low cost of production
advertisers are able to adapt commercials to the various station than buy , a
strategy that would normally be prohibitively in television
• COST EFFICIENCY
Radio is the least cost medium and it helps to reach mass audience with
various backgrounds. Radio offers it reach frequency and selectively at one of
the lowest cost per thousand and radio production is relatively inexpensive.
National spots can be produced for about one tenth the cost of a TV
commercial, and local stations often local spots for free. Also, radio ads can be
produced very quickly.
• PROXIMITY TO PURCHASE
The mobility of radio and its huge out of home audience gives the medium an
advantage enjoyed by few other advertising vehicles. In the competitive
environment facing most companies, it is imperative that brands achieve
consumer reinforcement as near as possible to the purchase decision.
Radio’s daily frequency offers scope for continued messages and hence the
consumers are more likely to remember that product and consumer lend up
buying that product.
• A PERSONAL MEDIUM
The human vehicle is the most personal means of communication. Radio gives
the advertisers the opportunity to take advantage of the right combination of
words, voices, music, and sound effects to establish a unique “one-on-one”
connection with prospects that lets you grab their attention, evoke their
emotions, and persuade them to respond.
Radio can be targeted by lifestyle formats and is more efficient than other
media from a cost and production standpoint. As a result many advertising
agencies will move their budgets into radio.
DISADVANTAGES OF RADIO
• MISUNDERSTANDING
Sometimes there might be a misconception regarding the radio ad as it is only
heard. In television the chances of such misconception is less, as it is audio as
well as visual.
• FRAGMENT AUDIENCES
The large number of stations that try to attract the same audience in a market
has created tremendous fragmentation. If a large number of radio stations
compete for the same audience, advertisers who have to blanket the market
have to buy multiple stations, which may not be cost effective. However in
radio’s quest to continue to fine tune its reach, some advertisers wonder if
radio is offering too many narrowly defined options.
• CREATIVE LIMITATIONS
The audio only nature of radio communication is a tremendous creative
compromise. An advertiser whose product depends on demonstration or visual
impact is at a loss when it comes to radio. Many advertisers think that without
strong visual brand identifications the medium can play little or no role in their
advertising plans.
• LIMITATIONS OF SOUND
Radio is heard but nit seen, a drawback if the product must be seen to be
understood. Some agencies think radio restricts their creative options.
• R.J NEEDS TRAINING
IT is very important that Radio Jockey is trained enough to deliver the ad.
Sometimes the voice really matters. If the voice is irritating then there is a
chance that the campaign may flop.
Therefore, there could be a problem for the marketers in the sense that they
might advertise on wrong channel at a wrong time
SWOT ANALYSIS
STRENGTHS
1) Recently, the government has agreed upon revenue sharing model, which is 4%
for the growth of the radio stations. So that they can develop themselves well
2) The success of private FM stations and reveals that radio listenership habits have
changed considerably; not only are listeners tuning into it more often but also
opportunity.
5) 90% of India has access to radio which is unmatched by any other media.
6) It also reaches to uneducated village folks. At the places where the literacy rates
are low & people hardly red newspapers – radio is the only way they can
WEAKNESS
1) One of the major weaknesses of radio that there is very less differentiation in
the programme that are aired. Most of the stations plays much of the music
remote places. And thus, the percentage of listeners tuned to anyone station is
segment. It is main base to attract client & earn more revenue. But, in India
OPPORTUNITIES
1) Getting copyright licenses from the government for running mega events,
which are aired on the AIR radio station & have been restricted to be aired on
3) Tie-ups with BEST or railway authority for playing the FM in train in bus.
4) The launch of private radio FM has managed to create a set of “New listeners”
5) The new radio stations, which will come in future, can have venture with the
college or the university campuses. And can play their station, which will
6) With the coming of the many more new players in the radio industry each
8) One has to constantly innovate , and that is the challenge. Brand building is
thus much more difficult. At the same time we are very bullish & gung-ho
THREATS
1) The biggest threat to private radio industry players is AIR radio. AIR is the
biggest player in India because of its reach, low charges, and being a
government channel.
2) Because of the new government policies there will be more number of stations
and then competition will also increase. This is one of the biggest threats it
brand loyalty.
SECONDARY DATA:-
Year Revenue
2000 4.7bn
2001 5.1bn
2002 5.4bn
2003 5.8bn
2004 6.3bn
2005 7.9bn
2006 7.2bn
2007 7.8bn
2008 8.0bn
2009 8.7bn
=10*4.75-1.3*3.9/√10*1.39-(1.3*1.3)*10*19.33-
(3.9*3.9)
=47.5-5.07/√12.21√178.09
=42.43/3.49*13.38
=42.43/46.69
=0.908
=0.91
ANALYSIS:
This shows that there is high positive correlation
between market share and revenue of the FM radio
.This shows that as the market share of radio FM
grows its revenue also increases.
X Y Y^2 X^2 XY
2.1 4.7 22.09 4.41 9.87
2.3 5.1 26.01 5.29 11.73
2.4 5.4 29.16 5.76 12.96
2.5 5.8 33.64 6.25 14.5
2.5 6.3 39.69 6.25 15.75
2.6 7.9 62.41 6.76 20.54
2.7 7.2 51.84 7.29 19.44
2.9 7.8 70.72 8.41 22.62
2.9 8 70.72 8.41 23.20
3.4 8.7 133.63 11.56 29.58
∑y^2=51 ∑x^2=70 ∑xy=180
2.91 .39 .19
( Here mean of X is denoted by x)
( Here mean of Y is denoted by y)
Then Regression equation of x on y:
(X- x) =bxy (Y-y)
bxy= ∑XY/^Y2
= 180.19/512.91
= 0.351
Hence the regression line :
(X-X) =0.351(Y-Y)
(X-2.38) =0.351(Y-6.69)
d.f= k-1
= 6-1
=5
χ ^20.05,5= 11.1
γ 2
cal= ∑(O-E)2/E
ϒ 2
tab <χ 2
cal
11.1< 84.995
so, Reject Ho
Ques4) Multiple bar for the comparison of last three years revenue of different
advertisement media.
ANSWER:
INTERPRETATION:-
Here, as we can easily say that market share of print media start decreasing and most
of its share is eaten up by radio television and internet sector. On the other hand
10*1308.77-(26.3)(501.5)
√10(70.39)-(26.3)^2 √10(25260.33)-(501.5)^2
= 13087.7-13189.45
√703.9-691.6925260.33-25150.225
= -101.75
√12.21*110.11
= -101.73
3.49*10.5
= -.7766 negative correlation
INTERPRETATION:
Here correlation comes out to be -.7766, which shows that there exist negative
correlation between market share of print media and radio advertisement i.e. as the
market share of radio is increasing market share of print media advertisement is
decreasing. Although there exist some other factors also which leads to increase in
radio advertisements these days .like: radio coves 98%of the total geographical area
and it is the cheaper source of financing this is also one of the reasons of increasing
market share of radio advertisements.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 5 2 5 2 14
2 1 7 4 2 2 2 1 19
3 1 2 1 4
4 4 7 1 6 18
5 10 18 8 9 45
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION:
The recall of radio advertisements is low as compared to all its competitors. As seen
from the data the recall is about 33% which shows that the radio should really work
on its this weakness to gain on its market shares. By improving its style of
presentation and adding innovations in it like endorsing celebrities to host their shows
and the advertisements they can bring about changes in the way people perceive their
promotions and advertisements.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 4 9 1 1 15
2 2 8 3 1 3 2 19
3 1 4 4 2 4 15
4 5 5 2 1 4 3 1 1 22
5 3 2 3 5 2 2 5 3 3 1 29
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION:
According to matrix it is visible that for maximum people radio acts as stress buster.
Generally during morning hours i.e. from 5 to 9 radio telecast various spiritual songs
and yoga etc this basically cater the needs of older people, generally they listen to
radio during this time . So for advertisements of products like Agarbatti , some
spritual place etc can telecast at this time .To grab the attention of target audience.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 3 2 1 1 3 1 11
2 1 4 1 2 2 3 1 14
3 2 6 2 3 1 1 5 1 1 22
4 8 7 3 1 1 3 3 26
5 4 8 4 5 4 2 27
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION:
Through this matrix we come to know that mostly younger generation love to listen
radio jockey . They listen to specific programme because of them only, among
youngsters most famous radio jockey is “love guru”. So radio can give advertisements
during this programme , which caters the need of youngsters ,other than this they can
also telecast some specific advertisements by radio jockey itself. Similar is the case
with celebrities youngsters love to listen to them , we can advertise products between
these programmes when celebrities are invited.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 2 1 2 1 6
2 2 2 1 1 1 1 1 1 10
3 2 2 2 1 1 8
4 7 8 3 2 3 4 2 1 30
5 6 16 6 1 5 7 3 2 46
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETTATION :-
Here out of 100 more than 40% people are strongly agree to this point that radio
provides them necessary information, among them most are between the age of 25-45.
According to people the information they love to listen on radio is: traffic
information, real estate, IPO, colleges, interior, beauty tips, and general news ETC.
People who are either student or employees generally need all these information
because they don’t have much time to read newspaper, other than this they listen these
information during traveling also. So radio can advertise different products during this
time . LIKE: generally people between age 35-45 start making there own house and
they listen to radio in evening time , so we can provide real estate information, IPO
etc during evening only.
People who travel a lot they like to listen traffic information so, we can also provide
advertisements of cars, engine oils ETC during this time
male female
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 5 2 2 9
2 4 2 2 2 1 1 12
3 1 1 1 1 1 1 6
4 3 8 3 2 2 7 2 1 27
5 7 12 6 2 1 5 8 4 45
total 15 28 12 6 2 9 16 7 4 1 100
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 1 1 1 2 1 1 7
2 1 3 1 1 1 1 2 2 1 13
3 2 4 2 3 2 1 1 15
4 3 8 5 1 2 5 2 26
5 8 12 4 0 5 8 2 39
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION: - it is concluded from the above data that people of young age
15-35 male and female both are always very excited and enthusiastic about the new
schemes and vouchers offered by various shows broadcasted at radio. As we can see
that 65% of the people agree that they listen to radio shows because of the gifts they
win. Hence the radio stations are trying to lure its listeners by offering them attractive
gifts. It is seen that these type of offers are made to the public during noon or evening
time, when the frequency of listeners is maximum, and hence the rate of
advertisements can be increased during these hours to gain affective promotions.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 1 1
2 2 2
3 1 4 1 2 2 10
4 4 6 5 2 1 3 4 2 2 29
5 9 18 7 3 1 4 8 5 2 1 58
64total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION
From the above mentioned data we come to know that print media advertisements provide
more information than radio. Out of 100 people we surveyed, 58 strongly agree on this point.
To fulfill this huge gap we can improve the quality of information given in the advertisements
of radio. The age limit between 15-25 strongly support print media and under this age comes
business and service executives, students seeking igher education and proffessionals. Hence
to satisfy their wants radio can cater to their needs by concentrating on real estates, IPO ,
political news, malls, PG colleges information etc.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 10 1 7 2 20
2 5 2 4 2 1 2 1 17
3 2 1 1 1 6
4 5 3 7 5 20
5 19 9 9 1 38
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION
From the above mentioned data we come to know that radio is more popular between the age
group of 25-45.thus radio should telecast advertisements catering to the needs of this
particular group to give a tuff competion to competitors like print media. Other than this if
they want to get a grip of the market shares then they can also please the age group above 45
by launching various advertisements on bhakti, yoga and other stress releving activities. And
for age group below 25 they can have advertisements on schools, beauty tips, games,
coaching institutes, cartoons, movies etc.
male female
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 3 19 5 1 9 2 39
2 9 5 7 7 5 5 38
3 3 4 1 2 10
4 2 1 1 4
5 4 2 3 9
total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION
We conclude that the age group between 45- 65 strongly prefer radio over internet. Hence for
building up more popularity radio can increase the frequency of advertisements preferred by
this age group and it can also improve the quality of information passed on by them. For
instance it can lay stress on advertisements like real estate, malls , yoga, health care etc. and
to entrap age groups below 45 it can make more lively presentations like include a lot of road
shows, beauty tips, schools and colleges information etc.
Age 15-25 25-35 35-45 45-65 65& 15-25 25-35 35-45 45-65 65 &
above above
1 9 4 4 1 1 8 9 6 2 44
2 5 22 6 5 1 1 5 1 2 1 49
3 1 2 1 2 6
4 1 1
5 0
Total 15 28 12 6 2 9 16 7 4 1 100
INTERPRETATION
Majority of people agree that the recall of radio advertisements in not low. They believe that
the retention of these advertisements is very high. Radio can still enhance upon it by adopting
different strategies. For instance they can bring celebrities to host shows and endorse
advertisements. When the celebrities will speak for the advertisements the impact will be
more and it will leave a longer imprint on the minds of the listeners.
.ANALYSIS
The main focus of our report is the effect of advertisement scenario for FM radio in
the NCR region. The diameter of the report mainly focused on the competitor analysis of the
radio, customer preferences and attitude towards radio advertisements and how the
advertisements are affecting the perception of the people. The main tools that we have
administered to find the results and give an accurate analysis are regression analysis,
correlation, chi- square test and various charts and graphs.
The important findings that we have concluded are that:
➢ The correlation between market share and revenue earned is 0.91. this shows
that they are highly positively correlated. As revenue increases,
simultaneously market share also increases.
➢ According to the NRS report the revenue generated through advertisements on
FM radio is 16.3 billion dollars and according to our analysis and calculation
the market share must be 5.76%. (Though it may not be totally accurate as
there are some other factors also which affect the market share of the radio
simultaneously, which are not taken into consideration by us. Taking into
consideration only one factors primarily bases this analysis).
➢ Other than this the bar graph shows the last three year growth structure of
different competitors, this shows that radio is growing in a very slow rate but
the increase is consistent. Other than this print, outdoor and cinema is
decreasing. On the other hand television media advertisements are increasing.
The reason being there is still a small part of untapped market by it and the
main reason is that it gives visual as well as audio appeal to the viewers.
The above data analysis is through secondary data. Next we move forward
with the primary data analysis. The primary data has been collected through a
structured quessionarrie having 29 questions. The whole quessionarrie was
divided into 3 sections namely personel data, competitor analysis and
customer preferences.
➢ Moving on with the analysis part the first tool applied by us is correlation
between market share of radio and print media with gives us a negative
correlation of -0.766. which tells us that these two factors are indirectly
proportionate to each other. As the market share of radio will increase , the
market share of print media will decrease. We have also analyzed through the
bar graph of 3 years that the market share of print media is decreasing and on
the other hand the market share of radio is increasing.
➢ The results of the chi – square test show that there exist a significant
difference in the choice of people regarding different advertising medias. As
we can see that teenagers and the younger generation is preferring radio and
housewives generally prefer television and the educated class still resides to
the print media like the economics times.
Other than this there exist some graphical representation of few questions presented in the
quessionarrie. According to the report the general view formed is that the youngsters
listen to the radio mostly during evening and late nights so we can increase the frequency
of advertisements pertaining to them during these hours. People traveling to colleges and
offices during morning or evening time like to listen to the advertisements on traffic,
railways and flights. Hence imphasis should be given to such information so that people
listen to radio with more interest. Moreover a large part of the population enjoys the early
morning shows of yoga, stress relieving exercises and religious chants and songs, so
advertisements relating to various medications and agarbatti should be increased during
that time.
According to the present scenario the next best competitor of radio is internet as it
provides a two way communication so we can improve it in radio by taking care of all the
feedback that it gets and also implement it on the daily shows.