Presented by

Presented to : Anuja Jain

Prof Shubhra Behl Arihant Darda
Arun Chahar
Ashwini Jain
Charu Pahwa
Mohit Rathi
 ADDING MIRCHI TO INDIA
Radio Mirchi is the most popular private FM radio
channel in INDIA with the largest operating network
and a presence in 33 cities and 6 metros. The case
traces the emergence of Radio Mirchi as a leader in
the FM radio industry.
The case talks about the company’s innovative
marketing and promotional campaigns. It also
describes the government policies , vis-a-vis FM
radio, and their impact on Radio Mirchi and other FM
broadcasters. The case finally talks about the
challenges that Radio Mirchi might have to face in
the changed environment and the future outlook for
the company.
 Background Note

Operated by entertainment network

INDIA ltd.(ENIL)
Promoters:- BENNET, COLEMAN &
Company and time information media
ltd.
Radio Mirchi is STAR SBU of ENIL
started October 2001.
FIRST WAVE OF PRIVATIZATION
July 1999 Govt. decided to privatize FM radio sector.

Govt. offered licenses for 10 years, charging 15% license fee with annual hike

In 2000 Govt. started bidding process for 108 FM radio license in 41 cities

Radio Mirchi bid on 64 Frequencies and won 12 licenses

Radio Mirchi started first from INDORE

Competition for ads revenue among other FM(Mumbai and DELHI)

Changed the perception of Radio

Create a colorful image in audience

CONTD…
Segmentation of listeners and program was customized

Local language programes

Updated everyday new releases

Reminder to reinforce marketing

Invested in high Quality

Launching innovation promotion campaigns

CSR (NGO’s)

Good content and marketing

SECOND WAVE OF PRIVATISATION
Occurred losses because high license fee in phase 1

Threatened to close operation

Govt. agree on 4% of revenue as license fee

Bidding was done in 337 frequencies in 91 cities, Radio Mirchi won 32 freq.

Fear of niche broadcaster

Expansion of Radio Mirchi to abroad

High charge taken by PPL(Phonographic performance ltd.)

Started strategic alliance with international players

MAJOR EVENTS
 PEST ANALYSIS
POLITICAL/LEGAL
Privatization of FM radio
High licensing fee
To enter into industry, high one time entry fee has to be given
There is no FDI allowed in this sector
Up to 15% hike in annual fees
Only 10 year license is valid
Migration fees to switch to second phase
Tussle with phonographic performance ltd. for copyright and licensing fee

ECONOMIC
RJ’s mainly attracted by package that has been preferred to them by
competitors.
Royalty pay to music companies
High installation and operating cost
Contd…
SOCIAL FACTORS
Make programs according to regions (Multilanguage)
NGO’s “GIFT A SMILE,MAKE A DIFFERENCE”
Westernization is coming so needs and preferences of Indian customer is
changed
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
Advancement in technology (Internet world)
Modern equipment and highly technical transmitters are used
SWOT ANALYSIS
 ANSOFF MATRIX
EXISTING PRODUCT NEW PRODUCT

EXISTING MARKET Market penetration Product development

NEW MARKET Market development Diversification

On the basis of Ansoff’s matrix,RADIO MIRCHI can go for two objectives:

PRIMARY OBJECTIVE:
• They should work upon the strategy to capture those markets where there is no
radio services available to gain COMPETITIVE ADVANTAGE.
SECONDARY OBJECTIVES: In order to attract large number of customers
it can start programs like “KHABRI BABA” in which the listners will give any five”
news “and they will get special gifts.
 MARKETING MIX
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)
Late night(1:00-7:00 am)
CONTD…
 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)
Jingles and promos
Sponsored events in schools and colleges
Mirchi job fest
Mirchi activation team
Radio workz

 PRICE
 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 RJ’s
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 RJ’s
Emphasised on audience choice
Level of customer involvements
WHO OR WHAT?
 Segmentation
Demographic:-

Age group 18-35

Gender Family, Housewife, Youth

Geographic:-
Presence in more than 33 cities
6 metros (Mumbai, Delhi, Lucknow, Banglore, Chennai, Indore)
Abroad

Behavioral:-
Time Evening drive time, Late evening, Night, Late night

Situational:-
Radio Mirchi came up with unique game or any kind of attractive show(for e.g. new
year,Diwali,R.D. Burman show,Valentine day)
Give reminder like “9 baj gaye kya ”

Psychographic:-
It keeps track records of latest and customer demand (Bhojpuri, Punjabi, English)
 Targeting
• Radio Mirchi has targeted listeners as well as
advertisers. It has mainly targeted youth(18-35)
because they are the major chunk of
population.
M1 M2 M3

S1

S2

S3

Radio Mirchi is targeting on service specialization.

 POSITIONING

SH …”
S K H U
AY
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“ MIRC
 • PICTURE OF SENDER

PE
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YOUTH

SO
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MIRCHI AS LOGO—IT’S HOT

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INNOVATIVE
DIRECT RELATION
L
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PROGRAMES AND
A T IT T
COVERS ALL SECTIONS
T
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AG
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MIRCHI SUNNE WALE

M
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COVERED ALL AREAS

F-I

ALWAYS KHUSH
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CORPORATE SOCIAL RESPONSIBILITY
“GIFT A SMILE,MAKE A DIFFERENCE” with an NGO.

Giving listeners a platform to raise their voice in

election time

Briefing about election process

Motivating them to go out and vote

Showing responsibility during June 2005 flood time in

Mumbai
 MARKETING STRATEGY OF RADIO MIRCHI
 FORTRESS STRATEGY:-

EMPHASISED ON CUSTOMIZATION THROUGH INNOVATIVE AND ATTRACTIVE

PROGRAMES
RADIO MIRCHI, IN ORDER TO BE IN LIMELIGHT, CONCENTRATED ON EVERYTHING
LIKE CORPORATE ENTITIES, PROMOTIONAL
ACTIVITIES,CELEBRITIES,SPORTPERSONS,LOCAL MASSESS LIKE DABBAWALLAS
ETC…
IT MADE ONLINE AND OFFLINE MARKETING

 MARKET EXPANSION:-
CROSS MEDIA MARKETING
IT EMPHASISED ON EVERY SEGMENT LIKE YOUNGSTERS.FAMILY,OLDAGE
PEOPLE,PRIME EARNING AND SPENDING GROUP
ON EVERY MEDIA IT HAS BROADCASTED ITSELF IN
NEWSCHANNELS,TELVISION,INTERNET ETC
IN EVERY CITIES FROM METROS TO RURAL AREAS
 NEW CHALLENGES
 Diverse program content was required
 Emergence of niche broadcasters
 GOI allowance of 20% FDI
 Many joint ventures were formed
 BBC worldwide and MID-DAY multimedia ltd
 UK’s Virgin Radio with Hindustan times

 RE-ENTRY OF THE PLAYERS:

 Star INDIA WIN 94.6

 NEW ENTERIES
 Adlabs
 South Asia FM-Earlier in Southern India.
T
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