Final Radio Fm Project

PATKAR VARDE COLLEGE OF ARTS, COMMERCE & SCIENCE MARKETING MANAGEMENT

A PROJECT REPORT ON

RADIO FM-IT’S MARKETING [

“BIG92.7FM” T.Y.BMS-Vth SEMESTER ACADEMIC YEAR

2008-2009 SUBMITTED TO:[

UNIVERSITY OF MUMBAI PROJECT GUIDE:-

MR.VIPIN SABOO SUBMITTED BY: -

Ms. RACHANA DALAL

1

INDEX Sr.No.

Topic

Pg. no.

1)

Introduction to Radio Industry

2)

Cost aspect & Time sharing model

13- 21

3)

Radio’s effect & Awareness report

22- 26

4)

Future of Radio Industry

27- 34

5)

SWOT analysis of Radio FM

35- 37

6)

7)

BIG-92.7 FM i) Company Profile ii) Marketing Mix iii) Segmented Market iv) Marketing Stratagies v) Radio an interruption vi) Survey Report Conclusion

38- 39 40- 48 49- 51 52- 63 64 65- 71 72

8)

Bibliography

4-12

73

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ACKNOWLEDGEMENT Nobody makes a project alone. The project bears the imprints of many people. Working on the project ‘radio fm-its marketing’ has been an incredible experience for me. For this very wonderful experience I would like to thank a lot of people without whose co-operation and support working on this marketing project would not have been so pleasurable and interesting. Helping me in the background is my project guide Mr. Vipin, visiting faculty of Patkar Varde College. My sincere thanks to: Mrs. Deepti Punjabi -- Manager (Marketing), Big 92.7 FM Ms. Hetal Joshi -- Student (Human Resource Management), Welingkers Mr. Sudeesh Subramanian -- Associate Consultant, Oracle Financial Services Software Ltd, formerly i-flex solutions ltd I deeply appreciate their work and guidance throughout the project; I acknowledge the same with sincere gratitude. These acknowledgements are one way where I can actually thank the people who have been instrumental in the making of this project. Without their contribution this project would have been deficient.

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Executive Summary Marketing landscape was populated with the thinking focused on making the sale. Today market place is enormously more complex. Communications media are proliferating. Competitors are everywhere-in hunger. In the midst of these changes, busy customers are changing their ways. Customers will continuously shift toward suppliers who can deliver greater value. New world is also characterized by an amazingly rich information environment. Customers with the help of communication medium like TV, radio, magazines, etc are able to access information on competing brands, including costs, price, quality, etc. This is a dramatic shift of economic power from sellers to buyers. At this stage radio can server best to their customer’s n satisfy them? Radio is entirely a medium of sound, which evokes smells, sensations and visual images which brings the listeners imagination into play. Radio is one of the tools which is effectively used for communication and positioning.. Radio can be used effectively for advertisement since it can target the large audience because of its high reach. Radio is good at increasing awareness about the brand and business and helping in building the brand image. But all this was only for pure academic purpose. With the advent of television radio lost its popularity and thus its purpose with the marketers. This led to sharp declines in the proportion of advertisement spending on radio as compared to other media. But then came the government’s order on liberalization and privatization. This brought about lots of changes in the world of radio broadcasting in India. Prominent and established companies entered the business of FM Broadcasting.

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FM broadcasting has breathed a new life into the medium of Radio in the past few months. Could radio now think this as a new phase of its life or a re-birth? Of course yes, people are today talking only Radio---- Radio Mirchi, Radio City, RED and Big92.7. One will find people with radio sets of different shapes and sizes listening to their favorite music on roads, in hotels, even the bide shops aired on any of the music channels. The radio channels are now vying against each other to provide their best to the listeners

However one can see that although radio is an excellent medium it has been used to its full potential and various efforts should be taken to improve it as with proper direction radio can reach heights as it is the cheapest and a very good medium.

Objective Through this project my objective has been to understand the following •

To find about the current scenario of the radio industry.

•

The working pattern and growth of the radio industry.

•

BIG92.7FM- its marketing strategies.

•

What BIG92.7FM station has to offer the masses.

5

Research Methodology Doing project on “radio fm-its marketing” I have made an effort to understand the marketing tool which is being increasingly recognized by marketers as a powerful tool that helps in finding new customers and retaining the existing ones at a much lesser cost.

Primary Research: The aim of primary research was to understand radio marketing as it is seen in kthe corporate world. To understand this I have taken two interviews from different fields. Ms.Dipti Punjabi the marketing manager of BIG92.7FM gave me an interview and helped me in trying to understand as to how the station works towards its market mix and looks after the needs of its customers and listeners. Mr. Sudeesh Subramanian who is an Associate Consultant, Oracle Financial Services Software Ltd, formerly i-flex solutions ltd helped me understand what all goes into the making of a radio channel.

Secondary Research The aim of secondary research was to understand as to why radio industry has been able to grow at a considerable rate as compared to the other media. It was undertaken to understand how radio channel runs and who are the current players in the market. Secondary data collection method: desk research Secondary data collection sources: internet, books, newspaper articles

6

Introduction 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 too 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 markets 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 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 stations is certain to increase the quantum of radio in the country , much like satellite channels did to the quantum of television 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 sets 3:1. The geographical area covered by radio in India is as high as 98 percent and the penetration level is approximately 97 percent. But FM presently covers only 17 percent of the area and 21 % of the population of India through transmitters. Currently radio has just 2 percent 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.FM station executives are not forthcoming on multi-platform 7

strategies as yet. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. 50/- FICCI estimates FM’s share up from the present 1.5 percent to 5 % in five years. Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 per cent. 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 good 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 forgot that radio continues to be a medium that has tremendous reach among the poor and marginalized sections of society. With the coming of more channels and the emergence of lifestyle 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 of Indian Radio For more than 4 decades, the Government of India did not permit private radio stations to broadcast in India. Then history changed its course. In 1993, the Government allowed private FM operators to 'buy' blocks (chunks) on All India Radio, prepare programming content, book commercials from advertisers and broadcast the whole lot. Within 4 years, (1997-98), the FM Radio advertising and sponsorship business grew to Rs. 93 crores with Times of India's Times FM & Mid-Day Group's Radio Mid-Day becoming the main players. Then, in June 1998 the Government, through its electronic media regulatory body Prasar Bharti, decided not to renew contracts of private FM operators. Not surprisingly, the advertising revenue fell by 50% within a year! This time, the Government gave the green light to privatize radio in India. July 6, 1999 was the historic day when the Government announced that 150 new FM channels would be licensed across 4 0 ci tie s. And in 2000, the Government auctioned licenses for private FM channels to bolster the revenue. And the focus on metros was evident in the bidding. Expecting to collect Rs 800 million from auctioning 108 licenses, the government had to actually face mass withdrawal of bidders because of the huge license fee. A handful of serious bidders chose to remain. In response to the Government's offer, many companies bid for the licenses to operate in key markets. But the going was not so easy. Many gave up, unable to shell out the high license fee. For instance, th e bi d di n g price for the Mumbai license was reportedly to the tune of Rs 9.75 crore. Others dropped out saying the business was not viable. So, in effect, the competition shrank, players consolidated and the Government extended its deadline. Today, there are roughly 10 players who will operate approximately in 37 cities across the country. 9

The government collected close to Rs 4.6 billion as license fee for the privately run FM radio channels in 40 cities. New Media Broadcasting, a Zee Group company, which focused mainly on the smaller towns, won the largest number of bids. The first round of bidding - for 76 channels in 26 cities, garnered close to Rs 3.5 billion. The government got the highest bids - Rs 97.5 million from each of 10 broadcast companies - for stations in Mumbai. Interestingly, the bids for Hyderabad and Nagpur came next, each for Rs 77.2 million and Rs 74 million, respectively, while the bids for Delhi were Rs 71.2 million each Radio is expected to follow the growth of the Television industry, which grew rapidly following the entry of private players Currently, FM coverage in India is restricted to just 17% of the country, compared to 89% of All India Radio (AIR).

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Players in Different Centers Company

Location of Centers

Number of Centers

Entertainment Network [India]

Delhi, Mumbai, Calcutta, 12 Chennai, Ahmadabad, Bhubaneswar, Cuttack, Hyderabad, Indore, Jabalpur, Lucknow, Pune

43.87

Hits FM

Calcutta

1

1.00

India FM

Calcutta

1

1.00

Living Media

Delhi, Mumbai, Calcutta

3

17.87

Mid Day Broadcasting

Delhi, Mumbai, Chennai

3

20.17

Millennium Broadcasting

Delhi, Mumbai, Chennai

3

20.17

Music Broadcasting

Delhi, Mumbai, Nagpur, Bangalore, Patna, Lucknow

6

41.37

Sumangali Publications - Sun TV

Chennai, Coimbatore, Tirunalveli

3

9.87

Vertex Broadcasting

Calcutta, Indore, Bhopal, Vishakhapatnam

4

2.90

11

Bid amount for first years license (Rs. crore)

Incidentally, Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in July.

License Fee and revenue sharing model Currently, FM players pay annual license fees, which go up by 15 per cent every year. Private FM radio sector would shift to a revenue-sharing model from the existing license fee regime. However, revenue-sharing also exists in the media sector. The objective is to “make FM radio a success story”. It’s better to keep the revenuesharing figure low than to have a failed project. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years; it is firm on revenue-sharing now. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. Revenue-sharing figure is quite low at around 4 %. While the private FM players had sought revenue-sharing in the band of 2-2.5 per cent, the panel has fixed it at 4 per cent.

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Communication process : Any radio setup has two parts •

The transmitter

•

The receiver The transmitter takes some sort of message (it could be the sound of

someone's voice, pictures for a TV set, data for a radio modem or whatever), encodes it onto a sine wave and transmits it with radio waves. The receiver receives the radio waves and decodes the message from the sine wave it receives. Both the transmitter and receiver use antennas to radiate and capture the radio signal. When you listen to a radio station and the announcer says, "You are listening to 92.7 fm “what the announcer means is that you are listening to a radio station broadcasting an fm radio signal at a frequency of 92.7 megahertz. Megahertz means "millions of cycles per second," so "92.7 megahertz" means that the transmitter at the radio station is operating at a frequency of 92,700,000 cycles per second. Your fm (frequency modulated) radio can tune in to that specific frequency and give you clear reception of that station. All fm radio stations transmit in a band of frequencies between 88 megahertz and 108 megahertz. This band of the radio spectrum is used for no other purpose but fm radio broadcasts. Common frequency band includes the following… •

AM radio - 535 kilohertz to 1.7 megahertz

•

FM radio - 88 megahertz to 108 megahertz

AM radio has been around a lot longer than FM radio. The first radio broadcasts occurred in 1906 or so, and frequency allocation for AM radio occurred during the 1920s. In the 1920s, radio and electronic capabilities were fairly limited, hence the relatively low frequencies for AM radio. FM radio was invented by a man named Edwin Armstrong in order to make high-fidelity (and static-free) music broadcasting possible. He built the first station in 1939, but FM did not become really popular until the 1960s.

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Royalties FM is primarily a music channel, so the question of royalties is relevant. The Indian Photographic 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.

Cost - Aspect A Licensee pays Rs. 6000/- per hour. Add Rs. 1,500/- for the music. Add Rs. 3,000/- for the technology, salaries and other expenses. An hour long show thus costs Rs. 10,500. 10 - 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 9 - minutes. In other words, 18 advertisements each of 30 seconds can be accommodate in an hour. This is the high target. Besides the tariff card should be modest, considering the limited range and listenership supposing a 30 - secondary costs Rs. 500 at prime time for 18 such spots, the total revenue generated is Rs. 9000/- . Another estimate puts the production cost of an hour long programme around Rs. 6,000/-. Add Rs. 6,000/- of the licensee fee to AIR. Studio hiring costs are between Rs. 500 - Rs. 1000 an hour. expenses are thus Rs. 12,500 to Rs. 13,000 per hour.

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The total

Advertising in India India has been among the fastest growing economies in the world, with a nominal GDP CAGR of 9.94% over the last 10 years (1997-2007). The nominal GDP for fiscal 2007 was Rs. 30,636 billion. According to CSO estimates nominal GDP growth for fiscal 2008 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 Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behind other developed and developing countries.

During fiscal 2007, the gross advertising spend in India is estimated at Rs 111 billion, and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2008.

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Segmentation in advertising The five key industry segments comprise print, television, radio, cinema, and outdoor. These different segments within the industry are at varying stages of growth and corporatization Media Spends as % of Total Ad Spend TV Radio Cinema

Year

Print

Outdoor

Internet

2002 2003

49.0% 48.4%

39.3% 40.6%

2.5% 2.7%

0.5% 0.4%

8.4% 7.5%

0.3% 0.4%

2004 2005

47.2% 46.6%

41.9% 43.0%

2.9% 2.9%

0.7% 0.7%

7.0% 6.5%

0.4% 0.4%

2006

46.3%

43.7%

2.9%

0.6%

6.0%

0.3%

The Indian television industry has grown rapidly, especially since 1991, which saw the beginning of satellite broadcasting in India. This growth was also aided by the economic liberalization program of the Government. 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.

Radio As Advertising Medium

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Radio is still the king when it comes to getting your music. The best way for a new band to get heard by the public and record label executions is over the airwaves. Paradoxically, radio currently has only a 2.9 per cent share of the total advertising pie in India. Globally, depending on country, radio has a 5 per cent to 12 per cent share of the advertising cake.. Companies that advertise on FM channels today such as Hindustan Lever (HLL), Dr Morepen, Amul, Castrol, Santro, Britannia, Parle, DSP Merrill Lynch etc are dominating the advertising on each one of the FM channels, be it Radio Mirchi, BIG 92.7, Red 93.5. Today, 70 per cent of the advertising comes from big-budget, national advertisers and the balance 30 per cent comes from retail. It is a known fact that retail advertising will grow because radio presents the perfect advertising medium for local businesses in a local environment. But national advertisers are also operational in the local market, implying that it is as important to them as it is to a retail advertiser, if not more. Nevertheless, it is undeniable that radio can be integral in exposing a new artist, new product or services to new fans and taking a local market to a national level. Accordingly, it is extremely difficult to obtain meaningful airplay. Putting it bluntly, successful radio promotion revolves around making and managing relationships. Radio promotion is an art that demands a certain style you may simply neither have nor desire to cultivate. On top of that, it can take a great deal of time to make all the contacts and connections that are required for successful radio promotion. Advertising agencies that control the national picture will be slow to move on to radio for creative reasons. They have people who love to make television commercials, but don't have anybody who knows how radio works. Here, only about 2.9 per cent of the money spent by advertisers goes to radio, and up till now, all of that went to ALL INDIA RADIO.

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However, in revenue terms, money from advertising has gone up. Revenue from commercials on AIR, including on Vividh Bharti and Primary Channel (including FM) rose from Rs 393 million in 1990, to Rs 808.4 million in 2000, & Rs. 600 crores in 2002,& Rs. 900 crores in 2005 representing a growth of about 8.5 per cent per annum. A clear advantage that radio has is that it can easily target city-based audiences. This makes sense if the advertiser, like a food chain that is opening an outlet in Mumbai, wants to target a specific audience. In such cases, it does not make much sense to advertise on TV, and the print medium is too expensive. Radio is the best bet for such small-scale promotions. It is also aptly suited for local promotions, and once audiences can be targeted, it has tremendous potential to eat into local mediums.

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Radio Stations Divide Their Days And Their Rates. Radio stations divide their rate cards into dayparts .The exact divisions vary from station to station. 6 am -10 am

Morning drive

10 am – 3 pm

Daytime

3pm – 7pm

Afternoon drive

7pm- 12am

Nighttime

12am – 6 am

all night

Rating services measures audiences for only the first four day parts because all night listening is very limited and not highly competitive. Heaviest radio use occurs during drive times (6-10 am and 3-7pm) during the week (Monday- Friday). This information is important to advertisers because usage and consumption vary for different products. For example, radios morning drive time coincides with most peoples desire for a steaming, fresh cup of coffee, so its great time for advertising coffee brands. For the lowest rate , an advertiser orders spots on a run of station (ROS) basis, similar to the ROP in newspaper advertising .However, this leaves total control of the spot placement up to the station. So most stations offer a total audience plan (TAP) package rate, which guarantees a certain percentage of spots in the better day parts if the advertiser buys a total package of time.

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Time sharing and Mumbai Radio Market Dayparts 6 a.m. - 10.00

Characteristics Drive time, breakfast audience, interested chiefly in news

a.m. 10.00 a.m. - 3.00

Daytime, program characteristics of station, talk , music, or all-

p.m. 3.00 p.m. - 7.00

news Afternoon, drive time ; radio prime time and same as morning

p.m. 7.00 p.m. - 12.00

drive time News, music, talk shows

a.m. 12.00 a.m. - 6.00

Music, talk shows

a.m.

Mumbai Radio Market

Length of Spot 20

The radio commercials in the test reels consisted of several different spot lengths, ranging from 15 to 60 seconds. The longest commercial played on the radio is 120 seconds. Those however are rare. In theory, one could assume that the longer a spot, the better it will be remembered or at least, the more chance there it that it will be heard. Research on television commercials proved that this theory holds true for the medium television: a doubling or tripling in spot seconds results in duplication in recall. The spots for advertisement can be for 10 sec, 20 sec, 30 sec and 60 sec. In General, 10 second spot should contain 25 words 20 second spot should contain 45 words 30 second spot should contain 65 words 60 second spot should contain 125 words If you’ve never written a spot, 30 seconds sounds like an impossibly short time to get your message across. But take a stop watch and time some spots on the air; you’ll see that quite a lot can be accomplished in a short time. In fact, you may find that 60s, unless very well written and well produced, sometimes seem a bit too long. A 60 does allow you more variety in music, sound effects, and voice and can be useful for political message, the announcement of a new or little-understood service, or other sports with a information/education content. 30 is usually 70 to 80 words long, and a; 60 around 150 to 160 words. The cost of a: 30 is usually about 60% to 75%. Some stations no longer charge a separate rate for: 30s and: 60s. Instead, they charge a unit rate. In other words, a: 30 costs the same as a: 60. Obviously, this is one case where you might want to use a: 60 to take advantage of the “free” air time. Check the rate cards of the stations you are interested in, or ask your sales rep.

Measuring the radio’s effect 21

Effectiveness research requires clarity of objectives – what are the agreed objectives of the overall campaign and of the radio campaign within this? Radio effectiveness can be measured either using continuous research or in stages (“pre & post”) – the pre-stage is normally the week before the campaign, the post-stage in the week after the campaign finishes. Consumers tend to misattribute radio-advertising memories to other media, particularly TV. This is particularly likely to happen where there is a strong executional link between the two media and/or where there is a history of TV advertising for the brand. This tendency to misattribute can be offset by using matched samples of listeners and non-listeners. This way, if the increase in advertising awareness is greater among listeners than it is among non-listeners, then the effect can be attributed to radio fairly confidently – even if the listeners think the advertising was in another medium. Radio research can successfully be done using telephone interviewing – ads can be played down the line. However cases where other media are to be included in the research it might be more appropriate to use face-to-face interviewing. Commercial recognition is a valuable technique – i.e. playing the ads to consumers. It provides a more robust measure of whether they have heard the campaign, and avoids problems of trying to describe the ads. Brand names can be bleeped out of the commercial, to test whether the campaign is linked to the brand.

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Creating the right mix A fieldwork was conducted by IMRB (Indian Market Research Bureau) to know about the listeners which encompassed the entire Mumbai urban agglomeration through a random sampling of 6,000 households and 3,600 individuals. With the growing salience of Radio, IRMB believes that time is ripe for a continuous Radio audience measurement system. IMRB International decided to launch RADAR RADIO LISTENERSHIP SYSTEM - the continuous radio audience measurement system in Mumbai. The findings have helped many radio stations to develop. The following is the standard procedure involved in calculating the listener ship of a radio station. The research can be undertaken by the research agency voluntarily to be sold later to companies, or on particular request by a company. •

A project is selected and a deadline is given.

•

All the interviewers are informed of the above and a questionnaire is given.

•

A sample size is decided which is spread all over the target city / town etc.

•

When the questionnaires are filled, they are complied and sent to the analysis department

• Then the analysis findings are forwarded to the research department and published.

Awareness of radio stations 23

100 90 80 70 60

Female 42%

50

40 At the country level: 30

Total awareness of radio stations 20

M ale 58%

10

VOA

World Space

Go 92.5

SLBC

WIN 94.6

AIR Primary

BBC

Radio City

AIR FM2

Radio Mirchi

AIR FM1

Vividh Bharati

0

% mentioning

Gender of radio audience

Female 42%

MALE 58%

24

7am - 11.30 am

20%

A 12%

18% 16%

A 12%

11.30 - 6.00 pm

14% D/E 45%

12%

B 14%

7pm - 11pm

D/E 45%

10%

B 14%

8% 6%

C 29%

4% Socio Economic Classification 2% 0%

C 29%

% liste n e r s

Listenership by time slots

Analysis While the overall reach of radio in India is high it can be seen above that awareness of private radio channels is not much. Prasar Bharti (AIR) has the highest awareness which is due to the fact that it is a government channel with a pan India coverage and enjoyed monopoly when the radio space was shut for private players. Being the only service provider it was able to penetrate deep into the Indian market. The private fm players mainly having license for big cities and towns although are gaining awareness in cities and towns they are still in their growth stage and for them to be known everywhere they have to diversify geographically and reach the rural 25

population where the radio is a very important medium of entertainment. Which is why the new entrants are vying for their share of the pie and encouraging the government to release more airwaves for them. Radio is very popular with the sec D/E market due to its cheap cost. Radios are now available at prices below Rs.50 which make it very affordable. While the sec A, B has a wider variety of entertainment available to them radio is not widely used. However with new players entering the market and providing them with the content they want the trend is now changing more people are switching on their radio sets even in these categories, specially the teenagers ! When an advertiser places an advertisement he has to make sure that his target audiences are met through this medium.

Pros and Cons of Radio Every medium has special strengths and weaknesses that make it more or less suited to special marketing problems of specific advertising. There is no one medium which is ideal for advertisers or every situation. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. Also, there are certain disadvantages of this media which need to be considered.

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Advantages of Radio

Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. The average adult listens more than 3 hours a day, radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. 90% of India has access to radio which is unmatched by any other media. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. Radio also reaches to uneducated village folk who do not read print publications. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. They can’t afford a TV set. Therefore radio is more popular.

Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. From a 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 its ability to provide numerous formats make it a multifaceted medium. Because of the relatively low cost of production, advertisers are able to adapt commercials to the various stations then 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 its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. National 27

spots can be produced for about one tenth the cost of a TV commercial, and local stations often produce local spots for free. Also, radio ads can be produced very quickly.

1. Creativity and Flexibility Radio is the most flexible medium because of very short closing periods for submitting an ad. This means an advertiser can wait until close to an air date before submitting an ad. With this flexibility of simple formats such as voice only can be created almost immediately to reflect changing market conditions or advertisers can take advantage of special events or unique competitive opportunities in a timely fashion. Radio also offers timeless, immediacy, local relevance and creative flexibility. The personal nature of radio, combined with its flexibility and creativity, makes radio the choice for numerous product categories. Copy changes can also be made very quickly. While radio may be one-dimensional in sensory stimulation, it can still have powerful creative impact. Radio has been described as the theatre of the mind. The musical formats that attract audiences to radio stations can also attract attention to radio ads. Audiences that favor certain music may be more prone to an ad that uses recognizable, popular songs.

5. Proximity to Purchase The mobility of radio and its huge out - of - home audience gives the medium an advan 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.

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6. As a Complement to Another Media In some cases, radio is the primary medium for local advertisers. However for national advertisers and most large local and regional firms, radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. A fundamental marketing strategy for radio has been its ability to successfully work with other media to increase reach and frequency or to reach non-users and light users of other media. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium.

7. A personal medium The human voice 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 1. 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.

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2. Poor Radio Attentiveness . Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. When a consumer is listening while doing some work or traveling in a car, he or she often switches stations when an ad comes and divides his or her attention between the radio and road.

3. Fragmented 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 want 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. For those product categories with broad appeal, it is difficult to gain effective reach and frequency without buying several radio stations and networks.

4. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program, the buying process can be sheer chaos. Since national networks and time in individual markets on a station-by-station basis. This could involve dozens of different negotiations and individual contracts.

5. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. They can’t keep like a newspaper or a magazine ad. Radio must compete with other activities for attentions, and it does not always succeed. Only 20 % of time availability restricts the frequency of message exposure.

6. Creative Limitations

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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 identification the medium can play little or no role in their advertising plans.

7. Limitations of Sound Radio is heard but not seen, a drawback if the product must be seen to be understood. Some agencies think radio restricts their creative options.

8. RJ needs training It is very important that the 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.

9. No proper research available In India, there is no proper research has been available on the area of radio listening, which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. Therefore, there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time.

Types of Radio Advertising 1. Network

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Advertiser may use one of the national radio networks to carry their messages to the entire national markets simultaneously via stations that subscribe to the networks programs. Networks provide national and regional advertisers with simple administration and low effective net cost per station. The advantage is less paper work and lower cost per station. Disadvantage includes lack of flexibility in choosing affiliated stations the limited no. of stations on a networks roster and the long lead times required to book time.

2. Spot Radio Spot radio affords national’s advertiser’s great flexibility in their choice of markets, stations, airtime, and copy. They can tailor commercials to the local market and put them on the air quickly – some stations will run a commercial with as little as 20 minutes lead time.

3. Local Radio Local times denote radio spots purchased by a local advertiser for local market. It involves the same procedure as national spots. Radio advertising is either live or taped. Most radio stations use recorded shows with live news in between .Likewise, nearly all radio commercials are pre recorded to reduce cost and maintain broadcast quality.

4. Sponsor Programme Here the advertiser sponsors the whole or part of the programme. The RJ informs the audience about the sponsored company throughout the programme.

5. RJ Mention/What’s On Mention Here the Radio Jockey [RJ] informs the audience the information given by advertiser about the new product launch, sale, exhibition going on at certain place etc.

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Future of Radio Industry FM Radio can play its part in building a stronger business future for India. Providing free-to-air local broadcasts of music and entertainment, helpful information traffic advisories, community announcements and public service messages provide a real value-added service. But at current levels of advertising support, each radio station is reeling under the brutal financial impact of high costs. With more players in the fray the FM radio industry would grow and also enhance the government’s yield from licensing radio naturally. The new India deserves an active private FM radio sector. It can provide a level playing field with benefits for listeners, for advertisers, employment & career options. Spearhead the government objective of growing the FM radio business in India. 33

With the government ready to reduce the license fees it will help in attracting new players like reliance which had earlier backed out only due to the entry fees. Also government allowing foreign players to enter him Indian market it will help the industry grow. Virgin group has already started exploring the Indian market for suitable partners. Various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand. The future looks bright as the reach of radio is expected to raise post the increase in the number and quality of players in the industry. It is on the basis of these key drivers of growth, it is being predicted that radio's share in the total advertising pie will see an increase in the medium term. There are an estimated 150 million radio sets across the country. The Rs 1.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually. Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertising markets, advertising spending is expected to amount to Rs 500 crore this year.

SWOT Analysis Strengths: •

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 because this industry is still in an introduction stage. •

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 sticking to radio for longer hours everyday. •

The advertisers, who would depend on word-of-mouth, pamphlets,

brochures or ads in local supplements of newspapers, are welcoming the opportunity.

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•

Radio is considered as a background medium, because people can listen to

radio anytime and anywhere they want. It is also a free medium. •

90% of India has access to radio which is unmatched by any other media.

•

Radio also reaches to uneducated village folk who do not read print

publications. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. They can’t afford a TV set. Therefore radio is more popular. •

Radio is the least cost medium and it helps to reach mass audience with

various backgrounds. Radio offers its reach frequency and selectivity at one of the lowest costs per thousand and radio production is relatively inexpensive. •

Radio is considered as a medium where the “Proximity to purchase” is very

high. •

Radio is a complement to another media. Therefore, other media or the

advertisers or agency can use this medium for brand recall.

Weakness: •

One of the major weaknesses of Radio is that there is very less differentiation in the programmers that are aired. Most of the stations plays much of the music that is played consist of Hindi Film songs, and therefore it is difficult to differentiate between the programmers of the different channels.

•

Fragmented Audience - the large number of the audience in India is fragmented in various remote places. And therefore, the percentage of listener tuned to anyone station is likely very small.

•

No proper research available - research is very important for any advertising segment. Research is the main base to attract client and get more revenue. But, in India there is no proper research is available. Many stations are conducting their own research which can be biased.

•

Radio-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. And like its radio message creates a

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fleeting impression that is often gone in an instant. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. •

Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing.

•

Short commercials

Opportunities: •

Getting copyright licenses from the government for running mega events which are aired on the AIR radio station and have been restricted to be aired on other private stations.

•

Launching a radio station with 24-hour news channel

•

Tie-ups with BEST or railway authority for playing the FM in train and in bus.

•

The launch of Private Radio FM has managed to create a set of ‘New Listeners’ for the medium

•

The new radio stations which will come in future they can have venture with the college or university campuses. And can play their station which will exclusively provide with the information relating to that university/college campus.

•

With the coming of the many more new players in the radio industry each channels can position themselves quite different from others, like, if some station is targeting the health conscious people then their programming strategy will vary accordingly. And then it is easier for the advertisers also to decide on which channel to advertise.

•

Allowing private FM players to start news and current affairs programmers.

•

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, and gung-ho about this whole enterprise.

•

Leaves huge scope for innovation in local market

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Threats: •

The biggest threat to private radio industry players is ALL INDIA RADIO. AIR is the biggest player in India because of its reach, low charges, government channel etc…

•

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 faces. With no particular differentiation in the music. So, there is a fear of losing its brand loyalty.

Company profile Just when punters were writing epitaphs of our age-old radio; this industry took a U-turn and rose like a phoenix from the ashes proving its naysayer’s wrong. Today Big92, 7FM is swaying to the music provided by a host of radio channels thronging not just the metros, but also making the tier 2 and 3 cities swing to its tune, and in such a competitive environment, each channel is adopting different strategies to out shadow one another.

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Bigfm - INDIA 'S LEADING RADIO NETWORK Bigfm is pioneered private FM in India to offer premium quality radio entertainment to every listener. Bigfm launched its first station in Delhi and hasn't looked back ever since. Promoted by Adlab’s Pvt. Ltd. radio is today present in Mumbai, Bangalore, Kokcatta, Lucknow, Jodhpur, Chennai, Surat and many more remote rural areas and has captured the heart of every listener tuning in. Over the years, Big92.7fm has become the choice destination for connoisseurs of music who tune in to.

BIG 92.7 FM is poised to create history with its pan India presence, spanning across 45 cities, 1000 towns and 50,000 villages to reach 200 million Indians across the length and breadth of the country. The company plans to take FM radio as a medium of entertainment not only to the key metros, but also to virgin markets that have never before experienced this medium of entertainment. BIG 92.FM has the capacity to touch every fifth Indian across the country - every third urban Indian and one in every eight Indian in the rural areas. In short, BIG 92.7 FM has the largest coverage from any private radio channel in the country.

Technology and Infrastructure Studios are modern and reflect international practices of the radio industry. BIGFM has sourced equipment, such as transmitters, mixers and codec’s, from various countries, including the United States and Canada. They believe they are well equipped to migrate to more advanced digital broadcasting without incurring high capital expenditures. Investment in technology helps increase the quality of broadcast and coverage in each of local markets. Studio design and equipment allows their programming staff to more effectively utilize their time and resources.

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Broadcasting via transmitters with web based remote management capability, hot swappable power supply & power amplifier with controller card redundancy. The transmitters have the capability of backup playtime of four hours of music preprogrammed content in case of any link failure. The highlight of big 92.7 FM will be web-based Media Monitoring Center (MMC) at Mumbai to monitor all the 45 stations live & provide technical support.

Marketing Mix Marketing mix describes the specific combination of marketing elements used to achieve an organizations goal and satisfy the target market. Marketing mix is made of four P’s: Marketing mix elements are also implemented in bigfm on mass basis and the most effective of all is promotion.

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Focusing on this entire 4Ps one can grab the market and reach the desired target audience. But considering BIG 92.7 FM as a service industry it has an additional PPhysical Evidence to be also looked into. Physical evidence is something that is tangible in the product which customers can feel, as services provided by the company are intangible.

Product Product is a key element in market offering. A product is anything that is offered to satisfy the customers. Since radio industry is totally a different streamline, its product is nothing but customers itself. Big92.7FM serves their clients, who are actually their customers & the only source of revenue by giving them the product called listeners. Clients are satisfied when there is maximum number of listeners, so that they can hit the audience.

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Big92.7FM serves two customers CLIENTS LISTENERS To grab maximum number of listeners big92.7fm try to come up with some innovations and always do things that are very local. They are trying to augment their product [MUSIC] at every stage.

Product Level In planning its market offering, the marketers need to think through four levels of the product. Each level adds more customer value, and the four constitute of a customer value hierarchy. The most fundamental level is the core benefit that a customer is really buying. At the second level, the marketers have to turn the core benefit into a basic product. At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product.

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At the fourth level, the marketers prepare an augmented product that exceeds customer’s expectations.

To be successful in market each company tries to serve the best to their customers and not only satisfy them but also surprise & delight them. Radio channels are no more behind in doing this and impressing their listeners and customers.

BIG92.7 FM tries to sever best through this product level, via 1) Core Benefit: The core product served by BIGFM is music as by other channels. 2) Basic Product: Now the basic product to be served along with music is proper networking & frequency modulations so that core benefit (music) is available everywhere and anywhere. 3) Expected Product: ‘Good RJs add flavour to music.’ So it is expected that the RJs should be good and try to be as friendly as they can be with the listeners. Also the shows are getting popular because of RJs like- Morning India with Malishka on 93.5,

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Mumbai Local with Neha & Tarun on 98.3, Love Ladkiya Bollywood with Anirudh on 92.7 Their should be a play list where both old and new songs should be played. There should be news coverage and also updates of current local area situation. 4) Augmented Product: People are crazy about stars so bigfm making a note of this point came with a very new and unimaginary concept of taking stars at their fans place. This was something really great that your favorite stars land up coming at your place. This was 1st time ever done in the history of radio stations.

Pricing Big92.7fm believes that “the best way to hold customers is to constantly figure out how to give them more for less” Since their product is listeners itself, pricing strategies are for all those who advertise on the channel. Bigfm price its effective 10-second advertising spots at Rs.2000,at par with market leaders like Radio Mirchi, Radio City, the rest of the FM channels charge anything between Rs 1,000 and Rs 1,500 for a 10-second slot.

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BigFM gives 45 lakhs weekly listeners as per Radar study. There is an average listenership of 45 minutes per day on the station. The rates are so reasonable that advertisers can afford 10 or 15 spots a day and run the campaign for 15 days or three weeks at a fraction of the cost that you will incur in print or Television. There are about more than 300 advertisers on BigFM. Today it is fashionable to be on radio. BigFM sells independently and does not offer any print package deal even though they belong to Adlab’s Group – they are an independent company. There is very little retail advertising on radio. More than half of the revenue comes from retail. But in Mumbai it is only 8%-10%. Currently bigfm has hiked their prices because they know that BigFM today is one of the best radio channels and they offer value to the advertisers who spend on their station. While all the other stations offer more slots and run ads for over 15 minutes, they offer ten minutes per hour on BigFM. There is huge inventory pressure on them and therefore they had to increase the ad rates. Currently, on an average, there are 125 to 175 brands advertising on BigFM and are charged Rs.3000-Rs.3500. In most cases, stations offer discounts on what is on their rate cards. On an average, across the five stations, the effective ad rate going for a ten second spot would be anywhere between Rs 1000 to Rs 2000. Clients buy effective rates and they buy a combination of spots like prime time, non prime time and the likes

Research and development: Research is conducted every week to know exactly what the listeners actually want to lend their ears to. Hence, accordingly, they have implemented the changes in the time slots of the different shows on air. So when the advertisers want to advertise on radio, bigfm can provide them with more information and help them to decide on the time slots and frequency etc.

Place

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BigFM is currently running in both a) Metro politics and b) Non-metro politics BigFM is spreading across 45cities, 1000towns & 50000villages. It is intensive in Mumbai and selective all over the country since it is established in 44cities like Delhi, Chennai, Kolkatta, Bangalore, Chandigarh, and many more. They are operating in non-metro cities also. BigFM finds advantage of running a radio station in places like Cuttack/Bhubaneswar and Rourkela as these places are very compact. Due to this compactness, station can reach out to almost anybody and everybody who lives there. No need to put too much of an effort to reach out to the people, they are easily accessible and can reach out to many districts in and around the city.Bigfm station reaches out to about 20 lakh people. Since the area is small, it is possible to get celebrities to the studios for special shows, in fact bigfm the first one in Bhubaneswar to do that. Instead of recoding the programmers with celebrities, they did the shows live, which might not have been possible in a metro city. Another advantage of operating from a small place is that can organize events easily. Have a show called Radio Orchestra, where people are performing in front of a small audience. This show is done live from various places in the city. It is easier to organize events in smaller places as compared to a metro city.

Promotion Promotion element of market mix plays a vital role. Promotion is used in hopes of influencing the recipient’s feelings, beliefs, or behavior through any forms of communication. BigFM uses various elements for promotion of there services viz; a) Advertising.

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b) Publicity c) Public relations d) Word of mouth At the initial stage of its launching bigfm was much into corporate social responsibilities (CSR).The target audience at that time was the older audience. But now it has positioned itself and are currently targeting the youth between age group of 18-30.The promotional strategies are totally changed and keeps varying as per the current and local requirement. There are lots of innovations and something different is constantly innovated and worked upon. Various promotional activities are conducted by bigfm, Had contracted vendors to manufacture one lakh radio sets to be distributed through contests, online merchandising & on ground activities. These will be single frequency branded radio sets so that consumers get to sample the programming of big92.7fm. Tide up with manufacturers for co-branded radio sets.Big FM has done partnership with 600-700 media & retail outlets(will promote on air)Transportation & college canteens are also potential public to carry out their promotions. With start has taken social responsibilities & now integrating its recruitment policy within its CSR initiatives. They are also planning to induct physically challenged people for copy writing etc so that their physical incompetence should not be a barrier. Big is the first radio station to use Brand Ambassadors like Abhishek Bachchan, Upendra & Asin. During its initial launching at Delhi, celebrities like Mona Singh & Gaurav Gera were the RJ’S.To tickle the listener’s funny bone Sunil Pal was also a celebrity RJ.Shweta Tiwari from Kasauti Jindagiki is also a RJ for spiritual shows.

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They have tie up with Mumbai’s most dhamal festival like Lalbaug ka Ganpati, Falgunis Navratri etc. On AIR do a lot of promotional contest topical, local. Olympiad contest and campaigning is the latest.

Physical-evidence Something that is tangible is physical evidence. May be infrastructure of the company or other attractive features of the product being sold like package, colour, model in case of cell phone, etc. But for radio channels it is their promotional activities that show their 5th P. Bigfm carries out many on ground activities in malls, near college campus, etc. RJs go to the malls, interact with local crowd play games and contest with them pick up people from their who are given chance to go on-air. RJs also go for lunch, dinner & movies with listeners and try to be amongst local crowd, so as to grab maximum listeners. 47

MEETING WITH CELEBRATIES

LAGAAN: MEET ‘N GREET WITH BIG FM WINNERS.

Segmen tation "If you have a clearly defined strategy for the target audience and know well what it takes to get them, you can win the battle of ever-evolving audience and markets" is what bigfm feels. The programming is decided largely keeping in mind what their audiences would like to hear at a particular time of the day. They have segmented programs as per the requirements of their listeners. Segmentation is not a problem as their are programs for youth, children, housewives, professionals, etc.       

Teenagers Working Professionals Shop-owners Housewives Self Employed professionals Businessmen & Industrialists Soft, latest music, gossips….

Preferred Time Zones •

5 am – 7am Senior citizens

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• • • • •

7am to 12noon Shopkeepers ,Teenagers Smaller Businessmen 12noon-5pm Housewives ,Self employed professionals 5pm to 10pm Businessman, Working executives, Teenagers 10pm-1pm Teenagers 1pm to 5pm Teenagers

Teenagers are the most targeted market and most of the time listeners are teenagers. So bigfm is trying to focus on them only so as to expand and capture maximum market share

Shows on bigfm Shows name

Time slot

Tune in/RJs

BACK TO BACK

Only music no RJ talks. Enjoy your favorite music uninterrupted SEHER

1am – 5am

Devotional/Spiritual

5am – 6am

Back to back

Seema

JO FIT HAI WOH HIT HAI

Relevant Health tips delivered with fun

6am – 7am

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Simmi Sakhuja

BIG CHAI 7 am to 8 am - Astro predictions, Birthday Shock 8 am to 9 am - Topical Interactive Debate 9 am to 10 am - Yeh Khabar Kyun Chapa/ MALOOM KYA 10 am to 11 am - Mere Jawabo Ka Saawal Do/ Bollywood 11 am to 12 pm - Jaani Ka Dabba

7am – 12pm

Aarchana Jain

MUMBAI MUCH MUCH 5 pm to 6 pm - Prank Call with Rowdy 6 pm to 7 pm - Mumbai Disco local topical- RJ take and listener take; What's Hot in Mumbai tonite 8 pm to 9 pm - Bollywood fatfati - Celeb interviews, Fokat ka call 9 pm to 10 pm - Whos on the Menu: Dinner with Rohit and a Hot Bollywood Star

5pm -10pm

K 10 pm to 11 pm 50

Rohit

Confessions, dates and unrequitted love: K's Verdict, Ex-Files, Love 10 at 10. 11 pm to 12 am - What makes u so sure about the other person in your life? Prospective Lovers and K. 12 am to 1 am - Romantic Music Dedications & Requests

10pm -1pm

K

Marketing With close to 100 radio channels operating in the country, it becomes extremely difficult to stand out in the clutter and carve a niche for yourself. But despite being a late entrant in the sector, Big 92.7 FM has, in a short span of time, created a strong position for itself in the market. The radio station always planned to be 'Big' because for them 'Big is Better' and 'Big is Beautiful'. Bigfm is doing very well in terms of marketing. Once people get to know the whole concept of Big FM and its programs r they realize the importance of advertising with big and tunning with them. Later on became an established name, and now they dont face any difficulty as brand”SUNO SUNAO LIFE BANAO” has become very popular with the people. So, now their objective is not only to maintain their position, but to go a step higher and stay ahead of all competitors.

Major Competitors In The Market

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Radio City 91.1 MHz

B

A

Radio Mirchi 98.3 MHz

C Competiti orsn

Big FM 92.7 MHz

D

E

Red FM 93.5 MHz

Radio One 94.3 MHz

Time Sharing Model of Big92.7 FM Big fm is currently operating in Mumbai, Delhi, Kolkatta and many more under the brand name Big92.7 FM, Suno Sunao Life Banao. Our rate card per 10 seconds (1 unit) of airtime is as listen as below for 3 states;

City Mumbai Delhi Kolkotta

Prime 1800 1800 1200

Individual City Rates SPT 2400 2400 1800

Super Prime Time:

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NPT/ROS 1200 1200 600

⇒ Mornings 8:00 a.m. to 10:00 a.m. ⇒ Evenings 6:00 p.m. to 8:00 p.m. Prime Time: ⇒ Morning 7:00 a.m. to 8:00 a.m. ⇒ Morning 10:00 a.m. to 11:00 a.m. ⇒ Evenings 5:00 p.m. to 6:00 p.m. ⇒ Evenings 8:00 p.m. to 9:00 p.m. Sponsored Shows: Super Prime Time + 25 % premium

Branding-The name game Branding is the art and cornerstone of marketing. Brand is a complex symbol. A brand is essentially a seller’s promise to deliver a specific set features, benefits, and services consistently to the buyers. A brand is moreover a complex symbol. Roping in the page three crowds to speak into the microphone isn't enough, though. FM channel operators are also realizing the need to create their own brands - for the stations, as well as the RJs. Many channels are promoting listener-RJ interaction. Call-ins, text messages and song requests are hygiene factors now, but face-to-face meetings with RJs and contests and promotions are also popular. "It is important to realize that radio is not just music, but it is about interactivity. This interaction can help build a loyal listener market, thus in turn attracting a large advertiser base."

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of

For its part, Bigfm is counting on a rub-off effect. The latest with them is, if u participate an win a contest then u can have pakodas with stars and Rj’s like Vidya Balan, Shahid Kapoor, Sunidhi Chavhan, Rj Archana, Rj Rohit. It's already working on co-producing shows dedicated to sports, fiction and entertainment. Even as that happens, Bigfm has been busy plastering Mumbai with hoardings and advertisements on bus shelters. Bigfm also does lot of BTN strategy.

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Positioning & PLC

Positioning: Normally Bigfm does everything that is local and also daily routine task of providing information regarding traffic updates especially during some chaos and during festivals. BIGFM positions itself local and undergoes small and local variations. BIGFM is undergoing a repositioning.

PLC (Product Life Cycle): Today in such a competitive market it is very essential to run with the speed of market growth and expansion. Radio market is very fast moving and changing everyday. The talks are new and gossips are countless. So considering the PLC in radio channel and its programs would be difficult. PLC of the shows is very dynamic in nature. It keeps on varying all the time. Infect bigfm always tries to do new and all local so the PLC of that new program is short lived and no sooner decline.

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Internal and Co-ordinate Marketing Employee-customer mirror: “The way your employees feel is the way your customers will feel”. Internal marketing relates to meeting the needs of employees so that they can meet the needs of their customers. Staff must work together in a way that is aligned with the firm’s mission, strategy and goals. "If people are happy and satisfied, then they would be willing to walk that extra mile to create a great product. Producing a great product would impact the company's performance in a positive manner and lead to a greater employee satisfaction. Employee satisfaction would lead to customer satisfaction which in turn translates into shareholder's satisfaction. So it's the whole chain and one needs to add value at each stage of this chain and having an 'Employee First Organization' culture helps to achieve that." All the radio stations are feeling the heat of retaining good talent. BIGFM says "The employees of today are not mere employees – they are your partners and your associates. So there is a need to inculcate the right set of values and culture in them." So bigfm has adopted a CAFETERIA APPROACH in its remuneration policy. Cafeteria approach is were you yourself can select the salary into three categories as per your expectations

CAFETERIA APPROACH: Like any other sector, radio is also feeling the heat of retaining good talent as employees are constantly poached by offering higher salaries. To tackle this issue Big 92.7 FM has adopted a Cafeteria Approach in its remuneration policy. Here the employees have an option – within a frame work – to alter the heads under which they get their salary on a platter. This helps them to pick and choose the kind of salary structure they want as per their requirements. \The much-hyped marketing efforts need to be complemented with strong and talented workforce. And thus the role of the HR in the organization became even more proactive than before. The think tank of the human resources at Big 92.7 FM were of the firm belief that there exists a strong relation between companies who are doing well and companies which have good HR practices in place.

CATCHY AWARDS: The USP of bigfm is their catchy awards. Catchy stands for spontaneous recognition of someone doing something positive in terms of great contribution. Employees are being valued for their job.

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INTEREST: The best part of big is that it has got other concern like bif92.7fm, big pictures, big movies, big events, big street, big live, big reach. So it is possible that if someone doesn’t want to do the same job for a long time then they can be shifted from that department to some other department. Thus interest of an employee is very well taken care off.

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Research and Development

CONTENT ANALYSIS: Bigfm like other stations also have special persons doing job of content analysis. They carry out survey of their listnership and also try to get information on what their competitors are planning. Rating comes to them on weekly basis and changes are then planned on as per the requirement of the rating.

DAIRY MEASURMENT: It is obviously very important to have precise measurement tools and techniques. World over the diary measurement is the most widely used methodology. The new measurement tool addresses all requirements of broadcasters and advertisers alike. The study is being conducted by the most credible research houses in the country – TAM, IMRB and ACNielsen, who have done thorough research in individual markets before setting up the diary panel. Dairy method is where particular cities are selected and chosen for survey. They are given a dairy in which they just have to say that which radio you listen and which program, and on this basis ratings are done.

RAM AREA: RAM(Radio Audience Measurement) data is clearly the most credible currency. It is the only continuous measurement study in India which tracks radio audience behavior 24x7. It is acknowledged as a currency across markets providing robust and market sensitive consumption habits. The fact is that in certain markets – even between No.1 & No.2 there is no clear leader, which means that no-body dominates the market right now. The gap between the players is small and hence weekly activities undertaken by stations are going to

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see change in leadership in some markets. Weekly shifts are true for all measurement systems across the world, where competing brands are close to each other. The clients are shown these RAM ratings for advertising purpose. Those channel whose ratings are the highest; advertisers choose their channel to advertise their product as they can reach the maximum target audience.

TARGET AUDIENCE RATING: TAR is similar to TRP. In target audience rating only a particular area is being targeted and only that target market is being viewed in all respect.

TIME SPENT LISTENING: It is when data is being analyzed and information is being given in marketing department. Say 3-4 pm 50 people are listening to bigfm. Last 4weeks ratings are being taken into consideration and bigfm is the top[per for this foe weeks i.e. in the month of July-August.

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TRANING AND DEVELOPMENT

Big 92.7 firmly believe in its people centric approach, clearly reflected in its training programs, recognition schemes.

which is and reward

TRANING PROGRAMMES: Recording in a studio.

Training is of utmost importance at Big 92.7 FM because it is the one factor that enables them to differentiate not only from other radio channels but also from other media companies. They have instilled a drive towards creating a learning environment across all their stations. For developing a culture of learning in the organization Big 92.7 FM heavily relies on e-learning and to strengthen this they have tied up with US-based firms like Danoday (for programmers training) and Keep Tingle (for RJ training). They also send some of their associates to US for training at RAB (Regional Advertising Broadcaster in the US) and NAB (National Association of Broadcaster in the US) and on returning these associates share their experience and learning's with the rest of the clan. The HR at Big 92.7 FM was quick to realize that in the media domain there is a constant need to strike a balance between the technical and creative workforce, for each individual has his/her own set of needs, passion and prejudices. The first step is to understand them and only then think of measures to motivate them. The focus is at making each day a special experience for employees as erratic schedule and odd war.

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.

CELEBRITY ENDORSMENT

Big is the first radio station to use Brand Ambassadors. Ambassadors like Abhishek Bachchan, Upendra and Asian were being used and has been successful in making the name of bigfm. Abhishek Bachchan has ensured aspiration at the highest level. In the cluttered radio market, he has helped bigfm stand apart. Abhishek Bachchan is an icon and a superstar and his brand equity has worked extremely well for BIG 92.7 FM. Celebrity RJs also help connect better with the listeners and offer an aspiration edge. Once low on aspiration as a medium, celeb RJ's have gone a long way in bringing on new listeners and of course retaining existing ones.

RELATIVE MARKET SHARE Relative market is not fixed as such. It keeps on varying, but BIG92.7FM is the largest networking.

INNOVATION AND IDEA GENERATION No monopoly exists in the market; there are lots of competitors to beat around. To stand out in this market one has to do constant innovation. Innovation as the name itself suggests is doing something new and come up with new ideas. Product modification is required every time. Ideas are seen in the product that are served to customers and based on the result evaluation we come to know that how well it is accepted by the customers. No radio stations are also left behind in this innovation strategy.Big92.7FM is always ahead of all when it comes to doing something new. Initially bigfm use to do lot of CSR (Corporate Social Responsibilities) activities as their target audience was the older public. But with the passage of time they started targeting youth. So the innovative ideas took a turn at this stage.  Every month there is something local which is carried out.  This monsoon they wanted to do different as last year they came up with CSR activities like donating umbrellas and raincoats to the poor masses. But this time their were many contest held out were the winners given a chance to have pakodas and chai with RJs and starts like VIDIYA BALAN, SHAHID KAPOOR, SUNIDHI CHAUVAN. 61

 This was a mission for helping out Raja who was suffering from HIV AIDS. it was a campaign named “RAJA MISSION". Even a girl named Sahara suffering from Cancer, 1st stage was helped by BIGFM by a campaign called “SAHARA MISSION”  There were special shows related to monsoon like “Monsoon Raga” only on bigfm.  Tie-up based weather updates are constantly aired on, so as to make people aware of the consequences. There are 200 people all around the city appointed by bigfm who gives the news updates live-its live, its authentic, its current.  “Lyricsis laheri” u like it na I come back, where one is suppose to sing a hindi song in English version and he translates into Bengali. It is funny and comedy tickling the nerves of the listeners.  Their basic idea is to go local.  Time ago, introduced Raju Shrivastav on BIG 92.7 FM, he does the breakfast show with a humorous take on the same.  Then was the Sabse BIG Diwali offering where listeners got to win BIG this Diwali. Came up with Chipak ke Jeetho- an endurance test, where the winner gets a car and the New Year will usher in Ek Saal Free Maal, where the winner gets free goodies from BIG92.7FM, the year round.  Initially Abhishek Bachan as brand ambassador, but in Bombay where people are not much into filmy world RJs face are being used on hoardings. Like the recent is their Radio Olympiad was 40-50 hoardings are being placed with RJs Rohit and Aarchana.

NEW PROGRAM- LATEST INNOVATION 62

With ‘Beijing Olympics 2008’, the biggest sporting event of the world approaching, BIG 92.7 FM in a first-of-its-kind initiative and in keeping up with the ‘Vibe of the City’ presents an Olympiad where every Indian will now get the chance to win, like never before in the form of a unique ‘Radio Olympiad’ across 44 stations! BIG 92.7 FM is the first ever radio station to host and bring alive the spirit of an Olympiad on-air, wherein every Indian across the length & breadth of the country will now enjoy the opportunity to win & create records! There are lots of challenges faced by Indians to win at an Olympiad so this is a kind of imitative taken by bigfm that one can win. Listeners’ will get to prepare themselves for their first-ever Olympiad on radio, as ‘Gold Medals Ki Baarish’ Kick-start across cities of Mumbai, Delhi, Hyderabad, Chennai & Bangalore, August 8th onwards. As part of the offering, there are tons of exciting games & contests on-air / off-air lined up at malls, youth hang-outs, offices hosted by BIG 92.7 FM, with winners getting the chance to walk away with ‘Gold Medals’. The ‘Radio Olympiad’ will t see BIG 92.7 FM presenting some of their key RJs battling it out for the ultimate endurance test, a record breaking on-air RJ marathon, wherein RJs across 36 stations attempt for a Limca Record of 100 hrs of RJing! But the true fortitude test will be showcased by none other than RJ Speed ‘Dheena’ in Chennai, who will be attempting a heroic feat with 136 hrs of the Guiness Record! Aug 8th and the first city to flag-off the on-air marathon will be none other than BIG 92.7 FM’s very popular RJs Anubhav & Pankaj from Chandigarh followed by RJs Ravi in Delhi, Shekhar in Hyderabad, Dheena in Chennai, Harsha & Shruti in Bangalore & RJ Rohit in Mumbai. Special training to RJs This unusual record requires the Radio Jockey to have immense passion for Radio, given that it is a true endurance test. Such a marathon makes for a rare attempt and hence there are no learning’s for the RJ’s. All the RJ’s are going through several preparations for the marathon both physically and mentally and undertaking fitness, yoga and meditation classes to ensure the highest levels of patience, commitment and focus. BIG 92.7 FM has ensured all arrangements required like medical assistance, food, energy drinks, string of well wishers to ensure the RJ’s are in their high spirits and also a well chalked out programming plan to ensure the successful completion of the marathon. All the RJ’s attempting for 100 hrs will begin the marathon with conversations with celebrities, friends and fans that are expected to call BIG 92.7 FM, to wish them luck and pray for a successful marathon completion.

When radio is an interruption 63

& when its not

Radio is back with a bang and it must thank, the terrible traffic, because most of the listening is done while in transit, which stretches pretty much to eternity. Jayant Bhokkare of Radio indigo says about FM Radio's future in India, “Out-of-home radio consumption has huge potential. With cities getting de-clogged and the formation of new business districts and residential townships, people are bound to spend much more time out of home. We should definitely see listenership growing in ambient areas. Marketers have enormous potential. Given that high traffic density is a favorable factor, listeners today experience a lot of compulsive listening.” He is right to the extent that listeners do experience 'compulsive listening'. Is that good enough to have marketers climbing on the FM radio bandwagon. For the moment, it seems they are. But then compulsive listening that people are exposed to, while on the move is at times wasted on them. Thus the marketing message that comes along is ignored. This may happen, lets say while a listener browses through stores at a mall; remember the assumption here is that his movement is purposeful. But the scenario changes drastically if the listener is stationery; or on the move, aimless, without a specific purpose. Lets say he is either in a moving vehicle (remember he himself is not on the move, technically) or maybe he's at a bar nursing a drink; at such a time he may be all ears; maybe even just walking down the road (FM playing on a mobile device). This distinction is important. When consumers are purposeful, most media interventions are treated as interruptions, therefore ignored. When the same consumer is aimless, media interventions are sometimes even welcome. Radio listenership, thanks to FM is on the rise in India. As long as the format does not come at a price, consumers are willing listeners. When charged, I am not sure if consumers would be as accepting. Take the case of World Space. Business hasn't been too good for them. Consumers are just not willing to pay for something they listen to.

Survey Report 64

I did my survey in our college campus itself. I used quantitative method and for research I did survey on 10 students.

QUANTITATIVE ANALYSIS: 1) Do you listen to radio fm or tune into your MP3?  Radio (80.%)  MP3 (20.%)

Question Number Radio Mp3

8 students 2 students

Percentage 80% 20%

Radio Mp3 Slice 3 Slice 4

65

2) Which radio channel do you prefer listening to?  98.3

(23.07%)

 91.1

(15.38%)

 92.7

(26.96%)

 94.3

(07.69%)

 93.5

(07.69%)

 104.8 (07.69%)  107.1 (03.84%)  100.7 (03.84%)  104.3 (03.84%)

Question 90’s range 100’s range

Number 27 times 5 times

Percentage 80.79% 19.21%

Number (times) Percentage Slice 3 Slice 4

66

3) Preferred time to listen radio fm channels?  Morning

(28.%)

 Afternoon (14.%)  Evening

(16.%)

 Night

(42%)

Question

Number

Morning Afternoon Evening Night

6 times 3 times 3 times 8 times

Percentage 30% 15% 15% 40%

Morning Afternoon Evening Night

67

4) Does it help u in creating awareness about new products?  Yes (50%)  No

(50%)

Question Yes No

Number 5 students 5 students

Percentage 50% 50%

Yes No Slice 3 Slice 4

68

5) Do you prefer listening to songs or chitchatting with Malishka, Anirudh, Rohit & Superstars sitting in studio?  Songs

(60%)

 Chitchatting (40%)

Question Songs Chitchatting

Number 6 students 4 students

Percentage 60% 40%

Songs Chitchatting Slice 3 Slice 4

69

6) Does listening to radio sometimes acts like an interruption in your work?  Yes (70%)  No

(30%)

Question Yes No

Number 7 students 3 students

Percentage 70% 30%

Yes No Slice 3 Slice 4

70

7) Will you listen to FM channels if they start charging you?  Yes

(0.0%)

 No

(90%)

 May be (10%)

Question Yes NO May be

Number 0 students 9 students 1 students

Percentage 0% 90% 10%

Yes No Maybe Slice 4

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Conclusion Radio has many natural advantages that make it an excellent choice for advertisers and listeners. These advantage include high amount of time spent listening, superior target ability, superior listener loyalty, ad recall and message retention, and much more which can be attributed to the ‘low cost of ownership’ feature of RADIO as a medium. Consumers spend 85% of their time with ear-oriented media, such as Radio, but spend only 15% of their time with such eye-oriented media as newspapers and magazines. Yet advertisers spend 55% of their money on eye media (print) and only 45% of their money on ear media such as Radio and television. Radio's share in the total advertising budgets of companies is likely to grow from 2 per cent to 5 per cent in the next three years, with an expected growth rate of about 10 to 12 per cent every year. In fact, the fortunes of radio are likely to change with the advent of private players like Star India, Bennett Coleman & Co, Living Media, Mid Day etc. The opening of the FM market is a new phenomenon and the maturing of the market will take its own evolutionary path. Interestingly, the private FM players have a huge opportunity in grabbing a bigger chunk of the radio advertising pie as, despite All India Radio's enormous reach (97 per cent of the population), its revenues have declined. In such a scenario, where the cheapness of radio is likely to ensure that the bulk of radio advertisers are those that go for a one-city-local-audience strategy, greater reach may not necessarily translate into a marketing advantage. Ultimately content and packaging will be the king. However, what will spell out the difference between success and failure will be neither size nor niche. It would be just plain old quality of programming and the explosion of contests and sweepstakes offered by the Radio Stations currently. One aping the other is an honest testimonial to justify this statement. In the end Radio offers tremendous opportunities for advertisers and media planners need to explore various options by which they can effectively use radio in their media mix. Conversely, broadcasters need to develop the market by being more responsive to the advertiser's needs. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium.

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Bibliography

While working on this project I visited a radio station BIG 92.7FM in Andheri (Infinity Mall) and they gave me some information However to support the same I have done some most of the research work from the following text books:



Marketing Management by Phillip Kotler .



Service Marketing by Christopher Lovelock



Direct Marketing Management by Mary Lou Robert and Paul Berger.

Newspapers and Magazines 

Times of India



Economics Times



Business Standard

Various websites were also visited such as, 

www.allindiaradio.org



www.star.co.in.



www.rab.co.uk



www.exchange4media.com



www.timesofindia.com



www.economicstimes.com



www.indiatoday.com



www.big927fm.com

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