A STUDY ON ANALYSIS OF FM RADIO STATIONS IN BANGALORE

DISSERTATION SUBMITTED TO IIPM UNIVERSITY IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE MASTERS IN BUSINESS ADMINISTRATION

SUBMITTED BY Pawandeep singh

INDIAN INSTITUTE OF PLANNING & MANAGEMENT

Next to Canara bank, 4th block, Koramangala, Bengaluru

(2010-2012)

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CERTIFICATE FROM GUIDE

This is to certify that the dissertation titled Analysis of FM Radio station Bangalore is of original research work.

It does not form part of any previous dissertation thesis or reports submitted to this university or any other university.

Place: Bangalore Date:

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DECLARATION

We hereby declare that the dissertation titled computation of cloud computation in SMES, Bengaluru submitted by me is of me assigned research work.

It does not form part of any previous dissertation thesis or reports submitted to this university or any other university.

PLACE: BENGALURU DATE:

PAWANDEEP SINGH

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ACKNOWLEDGEMENT

This is to place on record our heartfelt gratitude and thanks to the following people for their help and guidance during the course of our project.

First of all we would like to thank the almighty God for his grace. Secondly our family for their encouragement and support during the course of our project.

We express our intense gratitude to Prof. Jayachandran, Dean IIPM, and BENGALURU.

Place: Bengaluru Date: Pawandeep Singh

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1. INTRODUCTION TO THE STUDY 1.1General Introduction 1.2Statement of Study 1.3Need for the Study 1.4Objective of the Study 1.5Various Concepts

2. RESEARCH METHODLOGY 2.1 Source of data 2.2 Research methodology 2.3 Data collection 2.4 Limitations

3. DISCUSION AND FINDING

3.1Classification and tabulation of data 3.2 Analysis and interpretation of data

5. CONCLUSIONS AND SUGGESTION 5.1 Conclusions 5.2 Suggestion 6. BIBLIOGRAPHY

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INTRODUCTION
Media industry in India is among the fastest growing industries of the present Indian economy. The media industry has benefited a lot from the Indian current economic growth coupled by the rising earnings levels in India. The media industry is presently in a critical stage of revolution. Since 2006, the media industry has enjoyed a good time in terms of growth and development as it has been characterized by realignment, consolidation and expansion in many sectors of the media industry. In addition, the media industry is anticipated to grow up faster than GDP growth of India and subsequently more spending is being expected in the media industry. This report will analyse internal and external environment of the Media Industry in India through applying the SWOT analysis, PEST analysis and the Porter's Five Forces Analysis. In addition the paper will also focus on Future of the Media Industry in India, it will highlight the Different types Of Media in India which includes the Print media, radio, electronic, outdoor and Television. Television Television presently is the key driving strength of media industry in India. Television is predicted to be a main source to Indias GDP in the recent future. As at present, television is accessible by roughly hundred million households in India. Out of these, roughly half are satellite and cable. India is the third biggest television market, in the whole world coming after china and USA. India also is amongst the cheapest subscription of cable market, where in numerous places a monthly cable cost is merely averagely US $ 4 and hardly ever surpasses US $ 10. Print media: A roaring Indian economy leading to increasing necessitates for contents and regime initiatives which have opened up the segment to foreign investments are pushing growth in print media. Also, with increasing literate population, more folks in rural and urban regions are reading the newspapers and the magazines nowadays. The internet at present offers a fresh avenue to create more advertising income. (PWC, 2007)

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Radio: The most cheap and oldest model of media in the India that is dominated by AIR, the sector is witnessing a myriad-change very. In 2005, the India announced three main policy proposals which have driven growth in the sector. These policies were migrating to a returns share administration, permitting foreign investments into the sector and opening up licenses to the private players of the sector. This surge of radio stations have resulted in increasing requirement for content and experts. Latest concepts such as satellite, community radio and internet have also started to punch the market more and more, and radio is gradually making a return in the lifestyles of the people. (PWC, 2007) Out-of-home advertising: Outdoor media locations in India are mainly owned or run by small, local players and are usually, who directly markets them to the advertisers and also advertising agencies. Nonetheless, this sector also is witnessing a myriad-change through technological innovations. (PWC, 2007) Internet advertising: Roughly 28 million Indians are presently connected on the internet. And this increasing number is resulting to the increase of internet advertisement, which at present stands at around Rs 100 crore. Internet is used for a various reasons, in addition to work, for instance chatting, doing transactions, leisure and writing blogs. Internet provides a vast opportunity to marketers selling their products. With broadband increasingly becoming popular, this sector is projected to grow by leaps and jumps. (PWC, 2007)

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Changing consumption patterns, rising aspiration levels and increase in the number of middle- and upper-income households has led to growth in nondiscretionary sectors like retail, telecom, hotels among other sectors. Sector is no exception to the trend. In this article, we give an overview of the media sector. India is one of the largest media consuming markets with 3.7 bn film tickets sold annually. It is also one of the largest content creating market with 1,000 movies and 10,000 sound tracks released annually. Though Indian Entertainment and Media (IEM) is one of the fastest growing sectors in the economy, it is just 0.7% of the global US$ 1.4 trillion media industry. The IEM sector grew at a CAGR of 20% over the last 2 years. Going forward, IEM is poised to enter a golden era. As per PWC, India will be one of the key drivers in pushing the global entertainment and media industry to US$ 2 trillion by 2011. It is expected to grow at a CAGR of 18.5% till 2011 to touch Rs 1 trillion from Rs 436 m in 2006.

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The growth in IEM is being fuelled by a number of factors like strong economic growth, rising income and literacy levels, higher aspiration levels, widening base of the middle class income group, corporatisation of the film industry and technological changes amongst others. The IEM is divided into different segment like Television, print, films, radio, music and internet. Out of home advertising (OOH) and live entertainment are too gaining importance. Given below is the breakup of the revenues among the various segments and the expected growth rate till 2011. Television and print would continue to remain the largest segments. Internet, radio and OOH would also witness high growth rates. However, Internet penetration would take time to mature.
PROJECTED GROWTH OF RADIO INDUSRY IN USD MILLIONS IN INDIA

Fig 1.1

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Contribution of different media channels in revenue generation between 2006- 2011 in million dollars
Rs bn Television % share in total IEM Print % share in total IEM Films % share in total IEM Radio % share in total IEM Music % share in total IEM OOH advertising % share in total IEM Live entertainment % share in total IEM Internet advertising % share in total IEM Total 2006 191.2 43.8% 127.9 29.3% 84.5 19.4% 5 1.1% 7.2 1.6% 10 2.3% 9 2.1% 1.6 0.4% 436.4 2011 519 51.8% 232 23.2% 175 17.5% 17 1.7% 8.7 0.9% 21.5 2.1% 19 1.9% 9.5 0.9% 1001.7

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Growth from 2007 to 2010 Media penetration and its size and projected growth All India Print Terrestrial television Cable and satellite television 25% urban 46% Current size Size 2010

Rs 10,900 Rs 19,500 crore crore

53%

80%

20%

46%

14,800 crore Rs 300 crore Rs 800 crore Rs 100 crore

Rs 42,700 crore Rs 1,200 crore Rs 1800 crore 1750 crore

radio

22%

25%

cinema

7%

11%

internet

1%

3%

Indian media penetration and its projected growth

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Revenue generated by different channels in media industry in year 2011 in billion rs

Print Films Radio Music OOH advertising Live entertainment Internet advertising Total

232 175 17 8.7 21.5 19 9.5 1001.7

revenue genrated in year 2011 in bn rs

2% 2% 2% 1% 1% Television Print 17% 52% 23% Films Radio Music OOH advertising Live entertainment Internet advertising

Total revenue generated is 1001.7 bn rs and radio contribute about 1.7% and 17 bn rs

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SWOT ANALYSIS OF THE INDIA MEDIA INDUSTRY IN INDIA

Strength The media industry is a strong and well developed industry which is currently growing at high rate; this aspect gives the industry a lot of strength. With the increase in the level of education and media industry has a well-educated and skilled workforce with innovative ideas and technology which is an added positive aspect of the industry. The competitiveness of the media industry has enabled the industry to grow technically both vertically and horizontally, which is another positive aspect in the industry. India also offers strategic location and market in terms of its high population which is a boost to the industry. (Bird, 2003) Weakness Among the weakness in the industry, a current weakness may be inability to adhere to ethical standards in the industry which has led to lawsuits filed against some media industries. The industry also has been slow in its growth only picking up in the recent past, thus its innovation and marketing strategies may be not competitive on the global arena. (Bird, 2003) Opportunities According to the industry experts the industry still has room to expand within India as the market is wide. Media services are being sought with many organizations and thus this offers the industry to increase its market share. The high technological innovation which is happening everyday also presents a good opportunity for the media industry to utilize the latest technology in expanding its product mix or improving existing ones hence reaching or increasing its market. There is exists new business in the global market for the industry. (Bird, 2003) Threats Though India can be said to be stable political, the country his known for frequent changes in government administration and instability in some regions or states, this issue negatively affects the media and it is threat to the media. Also government legislations in India are known to some extend as hindering the growth of industry especially for foreign companies. Also, the current threat posed by piracy, which
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persists to deter investments in all media sectors has continued to threaten the industry growth. (Bird, 2003) Porters five forces used for Media Industry in India This part is an outline of positional assessment of the media industry using porters five forces model Barrier to entry: moderate, legislations and cost of research and development Industry competition: high, advantage gained through technology and marketing strategies Suppliers: supplier power is high Buyers: buyer power is low Substitutes: low PESTEL analysis of the media Industry in India PESTLE stands for: political, economic, social/cultural, technological, legal, environmental. A description of developments (known) and rising issues (unknown) which may impact on an industry/sector, Political Over the past year the media industry has continued to witness increased political interest increase because of the recognition of the media industry economic importance to the overall economic growth of the country. Policy stage Changes of administration stration or political principles have changed along the media industry making it to be freer than before. (Johnson, 2001) Economic In the past few years the media industry has witnessed an improved growth in the industry, this is attributed to India positive economic growth in recent years. The growth of the industry is expected to grow by 16% in the current year. Improved competition in other sectors also boots the media industry as these sectors services of the media industry such as promotion. (Johnson, 2001)

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Social aspect Media plays a big role in form information dissemination to the people of India, which of late due to globalization have developed a high infinite for information. The impact of intense media attention has brought about a more revolution in the social aspect and created a society which is more enlightened and which appreciates the industry. Even though the Indians are known to be conservative and traditional they attitudes towards the media industry are very positive. (Johnson, 2001) Technological advances Modern information technological advancement in media is making the industry players adapt faster to the new environments they are participating. The technological advancement taking place in industry is high and this calls for increased spending and research so as to be innovative in the industry. Legal environment The media industry in India is hot highly regulated as such, but there are laws and regulations which are enforced for the industry to comply. However, in the recent past the government has become to lessen to laws so as not to hinder competition in the face of increasing global challenges from the external markets. Legislations such as anti-piracy laws have been enacted and the government tries to enforce the fully even though it is difficult

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HISTORY OF RADIO IN INDIA:

Broadcasting began in India with the formation of a private radio service in Madras (presently Chennai) in 1924. In the very same year, British colonial government approved a license to a private company, the Indian Broadcasting Company5, to inaugurate Radio stations in Bombay and Kolkata. The company almost went bankrupt in 1930 but the colonial government took away the two transmitters and the Department of Labour and Industries started operating them as the Indian State Broadcasting Corporation. In 1936, this very Corporation was renamed All India Radio (AIR) and was controlled by the Department of Communications. When India became independent in 1947, AIR was made a separate Department under the Ministry of Information and Broadcasting. Government of India controls the radio broadcasting in India that works under the Directorate General of All India Radio. It was established in 1936 and since 1957 All India Radio was renamed as Akashvani. Akashvani is a governmentowned, semi -commercial operation of the Ministry of Information and Broadcasting. There were only six radio stations in India at the time of independence. All India Radio`s network had expanded by the mid-1990s to around 146 AM stations along with a National Channel, the Integrated North-East Service that aimed at reaching out to the tribal groups in northeast India and handles the External Services. There are five regional headquarters for All India Radio, namely in the North Zone in New Delhi; the East Zone in Kolkata; the North-East Zone in Guwahati, Assam; the West Zone in Mumbai; and the South Zone in Chennai. Commercial Radio services in India started in 1967 by Vividh Bharati Service with its headquarters at Mumbai. Vividh Bharati earned its revenues from extensive advertisements and had been broadcasting from thirty-one AM and FM stations during the mid-1990s. India has a wide-ranging network of medium wave and short-wave stations. In 1994 there had been almost eighty-five FM stations and seventy-three short wave stations that connected the entire country. The broadcasting equipment used in India is mainly indigenous and reaches special audiences, such as farmers needing agro climatic, plant protection, and other agriculture-related information. The number of radio receivers increased almost five times between 1970 and 1994. Initially it was around 14 million that rose to nearly 65 million. Most radios are also produced within India. The early history of Indian radio broadcasting in independent India set the
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parameters for the succeeding role of television in the nation. In those days radio was considered as an integral medium of communication, primarily due to the absence of any motion medium. All the national affairs and social changes were informed through the waves of broadcast media and within no time, popularity of radio spread nationwide. Indian radio proved to be a prime medium of social integration. Indian radio also took up the task of aiding in the development of economic scenario. The role of broadcasting provided an inlet for the flow of modern ideas. It was due to the same reason of static thoughts prevailing in the society; that television came into existence in 1959. Television broadcasts started from Delhi in September 1959, again associated with the All India Radio`s services. Programs were broadcast twice a week for an hour a day on welfare topics related to community health, citizens duties and rights, and traffic and road sense. In 1961 the television medium were expanded to include a school educational television project, however the importance of radio did not decline. For more than 4 decades, the Government of India did not permit private radio stations to broadcast in India. Then history changed its course.
HISTORY OF FM RADIO STATION IN INDIA

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 40 cities. 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.
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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, the bidding 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. 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 player. Currently, FM coverage in India is restricted to just 17% of the country, compared to 89% of All India Radio (AIR). Incidentally, Music Broadcasting became the first firm in India to commence private FM broadcast from Bangalore in June

LICENSEE 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. Its better to keep the revenue-sharing 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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After the second round of privatization, the number of FM radio stations targeted is around 300 to 4006. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project. It has also recommended to the government to release additional spectrum for the use of FM radio companies so that the number of companies operating in one centre can go up. However in spite of the various challenges the emergence of private FM stations is certain to increase the quantum of radio advertising in the country , much like satellite channels did to the quantum of television advertising in the country. That should open up a vast new market of consumers-100 million Indian households own an estimated 150 million radios, outnumbering television sets 3:1. The geographical area covered by radio in India 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 Andersons survey. Globally depending on each country, radio has a 5 % to 12 % of the advertising cake. On the higher side are countries like the United States with 13 %, Canada with 12.7% and Spain with 9.1%. FM station executives are not forthcoming on multi-platform strategies as yet. Given that radio has penetrated into 100 million homes and a FM set costs around Rs. 50/- FICCI estimates FMs share up from the present 1.5 percent to 5 % in five years. They have also forecasted that revenues from radio advertising in India will be Rs. Rs. 1200 crores by 2005 and Revenue of radio services is expected to rise to Rs 689 crore by 2008 at a CAGR of 30 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
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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

GROWTH RATE OF RADIO INDUSTRY IN CAGR EXPECTED COMPOUND ANNUAL GROWTH RATE OF RADIO INDUSTRY

projected CAGR growth rate in percentage

18 16 14 12 10 8 6 4 2 0 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 projected CAGR growth rate in percentage

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Major players in radio industry (private)

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PRIVATIZATION OF RADIO IN INDIA:

1993 Private broadcasters sold slots on AIRs FM channels for certain key cities, the service was later discontinued in 1998 1999 2000 2001 2004 Privatization of FM - Phase I Policy Bids were invited for allotting licenses for a ten-year period Phase I FM broadcast licensing, auction was conducted Licenses issued to private radio broadcasters In February 2004 TRAI was asked to give recommendations for Phase II licensing of FM radio In August 2004, TRAI presented its recommendations on the regulatory framework for private FM Stations 2005 2006 Announcement of Phase II Policy of privatization of FM Licenses for 91 cities were auctioned

Phase I Policy: The policy tanked because of its high license fee structure. During phase I, in total, 108 frequencies were allotted across 40 cities. Out of 37 licenses taken up, only 22 radio stations took off across 12 cities and government around about Rs 1.55 billion.

Private operators were invited to bid for a 10-year license to set-up and operate FM radio stations. No limits or penalties were levied on speculative bidding No foreign equity was allowed Bids often reaching unrealistic levels, many winning bidders paid inflated fees 50 per cent of the license fee had to be paid upfront by the player Determination of license fee was by auction for each market

Phase II Policy: After the debacle of Phase I, Phase II revived the hopes of FM radio in India. 338 frequencies were allotted across 91 cities during the second phase. Incredibly, 280 out of these 338 frequencies were won in the bid by
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private companies. Government earned a whopping Rs 9 billion in the round II licensing.

All the 91 cities were classified in A-plus, A, B, C and D categories Total 85 private players, apart from media companies and players from other sectors, were shortlisted for bidding Phase II granted licenses on one time entry fee (OTEF) basis along with annual revenue sharing at 4% of annual gross revenue or 10% of the reserved OTEF for the concerned city Government permitted automatic migration of Phase-I players if they clear all the previous dues and pay OTEF equal to the average of all successful bids under Phase-II in that city Opportunities in Phase III expansion The third phase of the FM Radio expansion proposes adding 790 new channels in 290 towns which have a population of over 100,000 Third phase is likely to allow broadcasters to own multiple frequencies which will in turn increase their revenue and profitability by offering more programming options to listeners Tradability of licenses is likely to be allowed after 3 years instead of the present 5 years The government is considering allowing private players to broadcast news of current affairs and sports Growth drivers: Increasing radio listener base Availability of radio enabled mobile handsets has helped in popularizing the radio Increasing advertising by small brands

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Consumption of radio in India is still largely at home, 'the radio on the move' trend is catching on in urban and semi-urban areas FM radio players are targeting the young population who look at radio as mean of entertainment at home and even when they are on-the-move Radio stations are hiring young and energetic radio jockeys who can easily connect with the target population Since the government allowed political advertising on local FM radios, many broadcasters have benefited from various regional and national parties ad spend on radio Though it is limited to broadcast range of about five kilometres, Community radio fulfils the needs of NGOs and in rural areas. Government is considering promoting about 5000 community radios among farming community, fishing community, women and children etc.

Challenges: High royalty rates are biggest threat to radio broadcasters. Royalty is paid irrespective of the listener base, size of operator or even how old the songs are played. Under an agreement from 2002, stations currently pay Rs 660 per needlehour, equivalent to 45 min of broadcast, costing 24-hour stations around Rs 6 million a year in royalty fees. These high rates will hamper the growth of small players in the market. Due to government regulations on news content, all the stations have to depend upon popular entertainment demand i.e., Bollywood music. This lack of content differentiation has been unable to create loyal listeners to any one station. Government regulations such as only 20 per cent FDI in radio, one frequency per one city, prohibition of sharing content and facilities with other stations hamper operators growth options. Due to lack of demand for air time, advertisers are always in a bargaining position. And they succeed in bringing down the prices causing losses to stations.
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Trends: Emergence of visual radio: interactive content and services will pull mobile radio listeners towards FM radios No doubt in the world of internet, these radios are already popular. Tata Indicom has launched seamless internet radio services, offering its customers access to 41 international and local radio stations through its application, Brew, at an attractive price of Rs 25 for a15-day subscription Players are forging alliances with each other for greater revenues. For instance, Radio Misty, which operates in the eastern cities of Siliguri and Gangtok and has a sales alliance with Radio One, which broadcasts in seven cities;Radio Mirchi has alliances with Radio Chaska in Gwalior, Radio Gupshup in Guwahati and Radio Mantras eight stations;Radio Mirchis tie-up with Radio Mantra of the Dainik Jagran Group has resulted in an encouraging flow of incremental revenues to both the brands/networks Most of the stations are also targeting niche audience to increase their listener base. Stations are planning to have programmes in more than one language, and cater to morethan one genre of music. Already, Radio Today has niche, talk based Meow 104.8 FM, a channel dedicated to women; Radio City instance, is targeting older audiences as compared to other stations; Red FM is chasing a younger audience; Hit 95 FM plays only English songs Competition: All India Radio still maintains monopoly as far as reach is concerned. It covers 91 per cent of Indias area and 99 per cent of Indian population Radio Mirchi leads the overall market with the share in revenue terms in excess of 40 per cent The current regulations do not permit consolidation of business before five years of operations. Thus, large players are forging strategic sales tie-up with the regional or small players and gaining advantage. Metro cities are over flown with FM stations 18 per cent of all private FM stations are located in metros; Metro cities have diverse set of people, hence, attract maximum attention of advertisers
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Advertising in Radio It was during the slowdown phase that everyone discovered the potential of radio. It was revealed as a very effective system, and today, it plays a very important role in the media plan of various advertising categories across the metros. The platform is very effective as a delivery system. But, advertisers are yet to completely recognize its full potential. Radio is increasingly gaining acceptance among advertisers, which is expected to result in higher ad spends on radio. There are a number of advertiser categories that are currently under penetration on radio, which could potentially increase spend. Advertisers are also increasingly focusing on non-metro markets, given the rising purchasing power of these markets. Revenues for radio are driven largely by advertisements. Up to 85%-90% of revenues for radio are derived from advertisements. The FM radio industry conducted business worth Rs. 2000 crores in the year 2010. Although the figures may seem impressive, the cost of doing business remained inconsistent with the projected revenue models. But the situation is likely to improve backed by an increase in the number of new stations catering to a larger audience. Advertising revenues from radio in India which are only 3% of the overall advertising industry in India, less than 50% of the world (8%) indicates the immense potential and scope for growth for radio in India. The industry is projected to grow at a CAGR of 12.2% over 2010-14, reaching Rs. 16.0 billion in 2014 from the present Rs. 9.0 billion in 2009 according to a report by KPMG. Jingle companies, advertising agencies and media houses are all set to benefit from the governments move. The cost per thousand and cost per reach of radio is significantly better than television. Radio has a higher potential to penetrate the rural areas than other media. High growth rates in sales of consumer commodities in these areas should attract firms. Increased rural marketing by corporate needs to be matched by independent consumer awareness creation and radio offers them an easier and effective way to do it. Radio sees a majority of advertisers which are exclusive on those mediums and are of the regional/local nature. Local retailers and restaurants see an advantage in advertising their products, services in local newspapers or radio as opposed to television. But most stations use same level of genre of content with little or no differentiation.
Table 5.2: Global radio advertising market in 2010

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Country Radio market (USD million) (USD million) Radio ma (USD mil\ Radio market (INR billion)

in io market

spending in advertisement in INR billion in 2010

spending in advertisement in INR billin 68.7 68 62.8 66.4

33 10.8

us

canada

uk

china

japan

india

Source: Global PwC Entertainment & Media Outlook 2011-2015

projected growth rate of indian radio advertising industry

expected CAGR growth rate in media advertising in india in % radio share in % 26 16.5 4.8 5.2 19 22

10.8 4.4

13.5

5.3

5.3

5.5

year2010

year2011

year2012

year2013

year2014

year2015

As we seen from year 2010 to 2012 radios has increased its share by increasing .4%in each year but as from 21012 to 2105 the growth rate is slow The average cagr growth will be 19.2%
Listenership trends

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This chart shows about the penetration of radio FM channels in four cities during year 2007- 2011 the listenership of radio had increases about 28% overall in last 4 years Penetration significantly increased in Mumbai, Delhi and Bangalore while Kolkata remained flat. While music remains the primary format for the industry, the year also saw some radio channels experiment with new content forms. Local advertising continued to remain a strong contributor to industry revenues, accounting for around 40 percent of ad revenues. Categories like cellular phone services, TV channel promotions, independent retailers, jewellery and educational institutions remained strong advertisers in 2010. Real estate, which has hit during the recession, jumped to the number one position during the year. Automobiles, cellular phone equipment and corporate/brand image advertisements were new entrants in the top ten during the year.

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The chart showing top ten categories of radio FM advertisement

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STATEMENT OF STUDY
Fastest growing segment of the media and entertainment industry The radio industry recorded a growth of nearly 58% in 2006. The share of radio in the total advertising industry increased from 2.4% to 3.1% during the same year. This is further expected to increase to 5.5% by 2011 as per the FICCI-PwC report on the Indian entertainment and media industry. The size of the radio industry is projected to increase at a CAGR of 28% from Rs 5 bn in 2006 to Rs 17 bn by 2011. Radio advertising is one of the earliest and most popular forms of advertising in today's world of mass media. Although television has shifted much of the audience away from radio it is undisputable that radio is always there. Radio is broadcasted everywhere twenty-four hours a day and always has the breaking news. Walter Cronkite11, a famous broadcast journalist, started his career in radio and concluded, "Radio has its own special strengths and contributions. While TV pulls the big audience, it's still radio that's there virtually every place, all day, all night. It's radio that's there when disaster strikes. Radio is that medium of the single sense and frees the imagination." Nearly 98 percent of people listen to the radio primarily for news, talk, entertainment, and sports. Unlike many other mass mediums radio is much more personal and friendly which attracts large audiences. Radio audiences have concluded that they listen to the radio, much like television, because they are either bored or lonely. Although radio did take a severe hit when the television was introduced into average households they still managed to make a comeback. Radio reaches 77 percent of consumers, and 80 percent of the younger audiences daily, which is remarkably comparing with the competition. Radio is now the third largest mass advertising media trailing newspapers and of course television. Radio advertising became increasingly difficult with the dawn of the television era which prompted the need for new ideas to reach the audience. Instead of working against television which was virtually impossible radio companies began working with them. In the early to mid-90s Fox was having trouble obtaining the younger audience that they wanted so they looked to the radio. During this time the younger audience was one of the radio's highest audience percentages.
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NEED OF STUDY
FM as a secondary medium for advertising is expected to make a foray into Indian market once the new FM policy is implemented. Once the FM channels are allowed to broadcast news, the number of active listeners also goes up thus providing lot of opportunity for marketers. The new policies also help the advertisement agencies to look at FM as an alternate advertising medium to reach more people and for reminding them of the offering. The prominence of retail advertisers is also expected to rise. In a world when the choices for the consumers are plenty while the tendency to block is also high, FM radio advertisements serve as an effective medium for marketers to reinforce their messages with less resistance. The opportunity in India rises with increasing penetration levels of mobile phones and liberal policies on FM broadcasting.

OBJECTIVE OF STUDY
Radio is considered as a secondary medium for reminder advertising. Radio has always been a highly cost-effective medium, helping brands to communicate with their target audiences at a very local level. In India most of the people listen to FM radio when they are on the move (in bus, cars etc.) and also when they are at work. Still the most popular programs in FM are Bollywood and regional songs. The advertisements are aired in the breaks between songs. The brand recall for radio is around 80% that of television. The effectiveness of a radio ad depends on the brand recall per unit cost. The researchers in developed countries have shown that radio has a relative power to affect recall which is greater than its relative cost leading to an important difference in value as reported in the Radio Ad Lab Research Compendium, 2002. In short, FM as a secondary medium for advertising is expected to make a foray into Indian market once the new FM policy is implemented. Once the FM channels are allowed to broadcast news, the number of active listeners also goes up thus providing lot of opportunity for marketers. The new policies also help the advertisement agencies to look at FM as an alternate advertising medium to reach more people and for reminding them of the offering. The prominence of retail advertisers is also expected to rise. In a world when the choices for the consumers are plenty while the tendency to block is also high, FM radio advertisements serve as an effective medium for marketers to
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reinforce their messages with less resistance. The opportunity in India rises with increasing penetration levels of mobile phones and liberal policies on FM broadcasting.

VARIOUS CONCEPTS

RADIO STATIONS ACROSS BANGALORE

Red FM: Red FM is an Indian FM14 radio brand, with stations broadcasting at 93.5 megahertz in the cities of Mumbai, Delhi, Kolkata and Pune in addition to Bhopal, Gwalior, Jabalpur, Indore, Nashik, Aurangabad, Nagpur, Bangalore, Mysore, Mangalore, Gulbarga, Kochi, Trivandrum, Trissur, Kannur, Kozhikode, Hyderabad, Vijayawada, Vizag, Warangal, Rajahmundry, Tirupathi, Ahmedabad, Rajkot, Vadodara, Lucknow, Kanpur, Allahabad, Varanasi, Jaipur, Bhubaneswar, Asansol, Siliguri, Gangtok, Guwahati, Jamshedpur, Shillong and Aizwal. It was launched in 2002, playing a mix of Hindi and English songs. However, the programming is now 100% exclusively Hindi. The channel is owned by Kalanidhi Maran, with a 48.9% stake, as well as minority holdings of Hyderabad-based IT company Value Labs, NDTV, Astro. It was acquired from India Today promoter Living Media in January 2006. Their punchline is 'Baja ate Raho' (Keep Playing). The most widely broadcast shows include "Morning No.1", "Dilse", "Mumbai Local", "One Two ka Four", "Mera Wala Gana", "Superhits Music Show", "RDX", "Indore Beats" and "Nomoshkar Kolkata". In one of the recent developments at Super Hits Red FM 93.5 Virag Mishra joined the team as a National Creative Head. Virag the recipient of the esteemed Stardust Award for standout performance as a lyricist is from advertising background. Starting August 14, 2009, S FM or Suryan FM was re-

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branded into RED FM across 38 cities in INDIA. S FM took over Red FM in August, 2009 and re-branded all its stations to Red FM except for the ones in Tamil Nadu. Radio Indigo: Radio Indigo 91.9FM15 - The colour of music, Soul of Bangalore is the country's first and only international hit station. This is a Jupiter Capital venture. Radio Indigo is the only radio station in the country that plays contemporary international music. Playing all the hits all the time, Radio Indigo caters to Bangalore and Goa's long-standing tradition and a vibrant community of music aficionados. The station plays a vibrant array of genres like pop, classic rock, hip-hop, jazz, world music and much more. Having headquarters in Bengaluru, Radio Indigo 91.9 has now emerged as the hottest radio station connecting to the most happening International music from around the world. And they are so exclusive that they are broadcasting only to Bengaluru and Goa. Its International with an Indian soul. The listeners are exposed to a prescribed dose of music or whatever gets their groove. The station is talking to all those who reflect the Youth and love music. Of course the audience hears favourites like Rohit Barker, Saggy, Melodee Austin, Ryan Seacrest, Michelle and Allen Kepler, but the new cowboys on the bandwagon are Kenny Jones, Christabel, Sriram, Suraj and Shweta taking their shows to the extreme and rocking the studios literally. The station has today become a house-hold name and those who have grown to love the station are sneaking it in their homes, cars and office. But like all good things in this world, Radio Indigo 91-9 has evolved to brilliance through bigger promotions & prizes. AIR FM Rainbow: AIR FM Rainbow, run by All India Radio16 is a national radio station, heard all across India. This government owned enterprise, features Hindi and regional language songs and occasional English songs along with hourly news bulletins in English, regional language and also in Hindi. In Bhopal, it operates on 102.1 megahertz in Hindi cum. English language covering more than 12 districts of Madhya Pradesh and 21 Suburbs in Bhopal City. In MP, it is also known as "Rainbow FM". In Delhi, it
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operates on 102.6 megahertz and AIR FM Rainbow Delhi is the only FM Channel to be aired in as many as ten cities. In Mumbai, it operates on 107.1 megahertz. In Lucknow, it uses the 100.7 MHz slot. In vizag, it operates on 102 megahertz. In Hyderabad, it operates on 101.9 megahertz and in Vijayawada it operates on 102.2 megahertz. It operates in Bangalore as well with a frequency of 101.3. It was earlier called FM Metro; the name was changed to FM Rainbow in 2002. The signals of this station are very strong and it catches till the far villages. The channel plays various genres of music unlike private channels; it does not stick to music of just one language. It plays ghazals, soundtracks as well as English songs, a rare occurrence in Indian radio channels. Rainbow is one of very few Indian radio channels which air Western Music and the western music slots are really popular with listeners. It has many western music programs like Time Out, Take off, Matchless music hours, Live wire Plus, Wicked Hour, Footloose, You asked for it, Just for you, Radio pet house, not only this it also has classical music shows. Almost all the radio jockeys on private FM channels once started with FM Rainbow. National Radio Station in Trichy, AIR FM Rainbow operates on 102.1 megahertz in Tamil language covering more than 12 districts of Tamil Nadu. In Tamil Nadu, this radio channel is also known as "Rainbow FM". In Delhi, AIR FM Rainbow operates on 102.6 megahertz and AIR FM Rainbow Delhi is the only FM Channel to be aired in around ten cities. In Mumbai, it operates on 107.1 megahertz, while in Lucknow, it uses the 100.7 MHz slot. In vizag, AIR FM Rainbow is heard on 102 megahertz. The popular slot for English music called Radio Raptures on AIR FM Rainbow is aired every day from 7am to10am and from 10pm to 1am and it has earned a very good audience with the passing years. Some of the radios Jockeys of AIR FM Rainbow are Altaf, Raunak, Sunny, Wasim, Aditi and Sohail. FEVER 104 FM: In 2006, FEVER 104 FM17, India's youngest, hippest and most happening Radio Station that plays more music than any other was launched. Fever 104 FM, owned by HT Media Limited, was formed in technical collaboration with the Virgin group. The company entered the private FM radio market in the four main cities of Delhi, Mumbai, Bangalore and Kolkata with the brand Fever 104 FM. Fever 104 FM is a contemporary hits music station that plays a mix of regional, national and international hits. It plays the latest hits, all day, all the time across the cities of
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Delhi, Mumbai, Bangalore and Kolkata, with its signature property of 40 minutes non-stop music. Fever 104 FM with its tagline It's all about the music! entered the FM radio market in key Indian cities. It is available in Delhi (since October 06), Mumbai (since January 07), Bangalore (since March 07) and Kolkata (January 08). In a short span of three years, the

channel's rise has been meteoric. It has gained the No. 1 position in Mumbai and Bangalore leaving behind all the other FM channels in these cities. In terms of TSL, Fever 104 FM has surged ahead with a total time spent listening of 386 minutes. It is No.2 FM station in Delhi on the popularity charts. Radio One: Radio One18 is a radio station in India. It was launched on June 8, 2006 in Mumbai before going national in 6 more cities. It is a joint venture between Mid-day Multimedia and BBC Worldwide and operates in 7 metros namely Mumbai, Delhi, Bangalore, Kolkata, Chennai, Pune and Ahmadabad. Soon the service of Radio One will also be started in Bhopal, Indore, Jabalpur and Jaipur. The station broadcasts at 94.3 MHz in all cities except in Ahmadabad where it broadcasts on 95.0 MHzs. It was known as Go 92.5 FM and was broadcast on 92.5 MHz in Mumbai till 2006. In the city of Bangalore, Radio One and the Bangalore Traffic Police, launched a carpooling drive which is has involved celebrities like Robin Uthappa, and Rahul Dravid encouraging the public to carpool. The initiative got a good response, and by the end of May 2009, 10,000 people are said to have carpooled in the city. Radio Mirchi: Radio Mirchi19 is a nationwide network of private FM radio stations in India. It is owned by the Entertainment Network India Ltd (ENIL), which is one of the subsidiaries of The Times Group. it is promoted by Bennett, Coleman & Co. Limited (BCCL) which is one of the largest media and entertainment companies in India, operating in various media segments such as print media and television broadcasting. The original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in Indore. Until 1993, All India Radio or AIR, a government
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undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. Before we begin, lets know a little about Radio Mirchi. Times FM was probably the most famous radio in India which began its operation in 1993. Until 1993, AIR, a government undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. It's the largest private FM Radio operator in the country in terms of number of operational stations and revenue. As per the Radio Audience Measurement Reports (RAM), Radio Mirchi has been dominating in Delhi & is the leader in Mumbai and Kolkata. However in Kolkata they are not clear leaders in SEC ABC segments. The SEC ABC segments were earlier dominated by Big FM & now by Friends FM. However in the SEC D & E segments Radio Mirchi has total domination. Playing contemporary hits songs Radio Mirchi has always been the No 1 choice of listeners. IRS 2009 reiterates the same as Mirchi has more than 41 million listeners across 32 stations. Its lead over its nearest competitor is more than double. Its market share in revenue terms remains in excess of 40% of the private FM industry. Radio Mirchi is the number 1 radio brand in the private FM space. During the year, it won a plethora of awards. It has been recognition of the brand popularity and the creative talent behind the brand. Mirchi was voted the No. 1 media brand, ahead of iconic brands like The Times of India and Star Plus. This unique honour was bestowed on Mirchi by the Pitch-IMRB group's survey of the top service brands of the country. This endorses the vote of trust that the brand has built amongst its listeners. As per Brand Reporter October 2009 issue Mirchi was recognized as one of the game changers of the decade in the radio industry. In December 2008, Mirchis website was voted the most popular TV and
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Radio site in India. The survey was conducted by Metrix Labs and AC Nielsen. The survey had 1.5 million participants. The success of the website reflects the overall popularity of Mirchi, the brand. Over the years Mirchi have established two important landmarks i.e.: The Mirchi Kaan Awards acknowledges and honours the contribution of individuals and organizations that have led the way in developing clutter busting radio advertising. The awards have been instituted to encourage continued creative focus on radio advertising. While the parentage of the idea was that of Mirchi, the design was created and crafted by the music fraternity itself. The jury led by Chairman, Javed Akhtar, would make any recipient proud - the other members comprised the best in the industry: Prasoon Joshi, Anu Malik, Shankar Mahadevan, Louiz Banks, Lalit Pandit, Kavita Krishnamurthy, Sadhana Sargam, Sonu Niigaam, Kailash Kher, Suresh Wadkar, Rakeysh Omprakash Mehra, Ramesh Sippy and Kunal Kohli. The jury set tough standards. This initiative of Listen to my movie has been felicitated with one of the most prestigious Readers Digest Pegasus CSR Awards in the Silver Category. As a part of its CSR Mirchi initiated a program to improve the quality of life of the visually impaired and the company came up with an initiative i.e. audio books. This initiative has already reached hundreds of schools across the country. Radio City: Radio City20 is a FM radio station in India. It broadcasts on 91.1 (earlier 91.0 in most cities) megahertz from Mumbai (where it was started in 2004), Bangalore (started first in 2001), Lucknow and New Delhi. It plays Hindi songs, English and regional songs. It was launched in Hyderabad in March, 2006, in Chennai on July 7th 2006 and in Vishakapatnam October 2007. Radio City recently forayed into New Media in May 2008 with the launch of a new mega music portal PlanetRadiocity.com that offers music related news, videos, songs, and other music-related features. Radio City has launched Fun Ka Antenna - Online Radio Station which plays hits across genres including International, Bollywood, Indipop and Sufi among others.
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Radio City Bangalore is India's first private FM radio station and was started on July 3, 2001. It launched with presenters such as Rohit Barker, Darius Sunawala, Jonzie Kurian and Suresh Venkat. Over the years, the station had been steadily losing popularity with the launch of newer stations in Bangalore. The station has been criticized for multiple format changes and presenter lineup. The Radio station currently plays a mix of Hindi and Kannada music. Recently as of July, 2006 it has announced plans to invest Rs. 700 to 800 million in the current fiscal year to set up 16 FM (Frequency Modulation) stations across India. The Chief Executive Officer is Ms Apurva Purohit. BIG FM 92.7: BIG FM 92.7 is a nationwide private FM radio station in India owned by Indian businessman Anil Ambani21. It broadcasts at 92.7 MHz (92.7FM). Currently, it covers 45 cities. This is the only private FM radio station which is being broadcast from Srinagar and Jammu in Jammu & Kashmir state. It has made an announcement to invest Rs. 4,000,000,000 dedicated to transmission equipment, infrastructure and licensing; which would make the proposed network the largest ever. From July 1, 2008, BIG FM included Singapore, the first city outside India, in its broadcasting network. It broadcasts its programs daily from 5 to 8pm on XFM 96.3, under the name of 'BIG Bollywood 96.3FM. Its main tagline is "Suno Sunao, Life Banao". Radio Active: Jain Group of Institutions (JGI)22 is a conglomerate of 35 mission driven institutions that spans the gamut of education, from primary to higher education, and charitable schooling to professional courses. JGI draws on the essence of tradition and sophistication of modernization to educate the professionals of tomorrow. Inspired by its dynamic founder and Chairman Mr. R Chenraj Jain, the JGI family is principled, proactive and visionary. Its vision is to contribute leaders to a vibrant and responsive India. Its mission is to provide excellence in academic education and focuses on the holistic development of the individual. The Vision behind Radio Active is to empower every individual in society to become a winner and an achiever by harnessing and nurturing human potential; to sensitize society to global, national and local
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issues; to use technology and human enterprise in tandem to help create a meaningful and proactive social ambience where interdependence becomes mutually supportive and to focus on a universally responsive India. In keeping with its tradition of promoting the welfare and betterment of society, JGI has taken the initiative to launch a community radio station serving the cause of progress and development of the community at large. The community radio station, Radio Active will seek to reach out to Bangalores masses on issues concerning health, environment, development, scientific awareness, women, social issues etc, in turn seeking to inform, educate, while entertaining the public

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 every day. The advertisers, who would depend on word-of-mouth, pamphlets, brochures or ads in local supplements of newspapers, are welcoming the opportunity. 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 cant afford a TV set. Therefore radio is more popular.
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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 programs 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 programs 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 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:
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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 programs. 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 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.
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COMPANY
RADIO MIRCHI

Introduction
Radio Mirchi19 is a nationwide network of private FM radio stations in India. It is owned by the Entertainment Network India Ltd (ENIL), which is one of the subsidiaries of The Times Group. it is promoted by Bennett, Coleman & Co. Limited (BCCL) which is one of the largest media and entertainment companies in India, operating in various media segments such as print media and television broadcasting. The original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in Indore. Until 1993, All India Radio or AIR, a government undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. Before we begin, lets know a little about Radio Mirchi. Times FM was probably the most famous radio in India which began its operation in 1993. Until 1993, AIR, a government undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. It's the largest private FM Radio operator in the country in terms of number of operational stations and revenue. As per the Radio Audience Measurement Reports (RAM), Radio Mirchi has been dominating in Delhi & is the leader in Mumbai and Kolkata. However in Kolkata they are not clear leaders

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in SEC ABC segments. The SEC ABC segments were earlier dominated by Big FM & now by Friends FM. However in the SEC D & E segments Radio Mirchi has total domination. Playing contemporary hits songs Radio Mirchi has always been the No 1 choice of listeners. IRS 2009 reiterates the same as Mirchi has more than 41 million listeners across 32 stations. Its lead over its nearest competitor is more than double. Its market share in revenue terms remains in excess of 40% of the private FM industry. Radio Mirchi is the number 1 radio brand in the private FM space. During the year, it won a plethora of awards. It has been recognition of the brand popularity and the creative talent behind the brand. Mirchi was voted the No. 1 media brand, ahead of iconic brands like The Times of India and Star Plus. This unique honour was bestowed on Mirchi by the Pitch-IMRB group's survey of the top service brands of the country. This endorses the vote of trust that the brand has built amongst its listeners. As per Brand Reporter October 2009 issue Mirchi was recognized as one of the game changers of the decade in the radio industry. In December 2008, Mirchis website was voted the most popular TV and Radio site in India. The survey was conducted by Metrix Labs and AC Nielsen. The survey had 1.5 million participants. The success of the website reflects the overall popularity of Mirchi, the brand. Over the years Mirchi have established two important landmarks i.e.: The Mirchi Kaan Awards acknowledges and honours the contribution of individuals and organizations that have led the way in developing clutter busting radio advertising. The awards have been instituted to encourage continued creative focus on radio advertising. While the parentage of the idea was that of Mirchi, the design was created and crafted by the music fraternity itself. The jury led by Chairman, Javed Akhtar, would make any recipient proud - the other members comprised the best in the industry: Prasoon Joshi, Anu Malik, Shankar Mahadevan, Louiz Banks, Lalit Pandit, Kavita Krishnamurthy, Sadhana Sargam, Sonu Niigaam, Kailash Kher, Suresh Wadkar, Rakeysh Omprakash Mehra, Ramesh Sippy and Kunal Kohli. The jury set tough standards. This initiative of Listen to my movie has been felicitated with one of the most prestigious Readers Digest Pegasus CSR Awards in the Silver Category. As a part of its CSR Mirchi initiated a program to improve the quality of life of the visually impaired and the company came up with an initiative i.e. audio books. This initiative has already reached hundreds of schools across the country.

First round of licenses

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In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won the largest number of frequencies, and thus started its operations under the brand name Radio Mirchi.

Second round of licenses

In January 2006, Radio Mirchi bagged 25 frequencies in the second wave of licences that were issued by the Government of India. This pushes the Radio Mirchi presence in 32 centres. In the first

Area of operations wave of launches, Indore was the first city in India having grade of first private radio channel. Times decided to start radio channel to address the mass audience as advertisers can be attracted by showing a low cost per thousand. Currently, Radio Mirchi has a presence in more than 33 cities and 7 metros Including Delhi, Mumbai, Kolkata, Pune, Indore, Ahmedabad and Bangalore and Radio Mirchi is the costliest station in India as they charge more than double of the competition. Radio Mirchi believes premiumness can be achieved by charging more from the clients, unlike BIG 92.7 FM which is comparatively much more economic but airs content which does not meet the expectations of its listeners. Radio Mirchi operates in the following cities:

HistoryThe original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in Indore, Madhya Pradesh. Until 1993, All India

Radio or AIR, a government undertaking, was the only radio broadcaster in

India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. Analysis The Bengaluru market has also seen a sea change in FM listenership rankings. Once a Big FM stronghold, the market is now dominated by Radio City which has not only retained its leadership position in Bengaluru, but has also significantly
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increased its listenership. Close behind Radio City is Radio Mirchi followed by Big FM, a distant third and Red FM ranked four. Radio City, Radio Mirchi and Red FM are the only FM stations to have seen an increase in listenership share on wk. 51 to wk. 2, 2012 as compared to the wk. 47 to wk. 50, 2011 RAM data. The other FM stations in this market are Fever FM, Radio One, Radio Indigo, AIR FM1 Rainbow, and Akashavani Bangalore. Radio Mirchi is the number one FM station in Bengaluru followed by Radio City, Big FM, Red FM and Radio One. Between Wk. 40- 43, 2011 to Wk. 52, 2011Wk 3, 2012 the radio channel share for Radio Mirchi was at its peak in Wk. 40 -43, 2011 with a share of 23.1 per cent. Radio City, the second most popular FM station in OOH listenership, was also at its peak in wk. 40 43, 2011 with 21.2 per cent share. However in week 52, 2011 Week 3, 2012 the station share for Radio Mirchi dropped to 22 per cent whereas Radio Citys share was 18.9 per cent. The other clusters of FM stations in Bengaluru are Fever FM, Radio Indigo, AIR FM1, Vividh Bharati, AIR FM1 Rainbow, Gyan Vani and Akashavani Bengaluru.

NO OF RADIO FM LISTENER FOR DIFFERENT CHANNEL IN BANGALORE (WEEKLY)

NO ARE IN percentages

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no of listners in banglore in percantage out of 100 for Radio mirchi

no of listners in banglore in millions 23.1 22.7 26 21.1 22 22.3

40 to 43

43-47

48-51

53-03

3 t0 7

7 to 11

No of active Bangalore

listeners

of

radio

mirchi

channel

in

Popular FM stations among female listeners in Bangalore. The two are way ahead of the rest of the FM pack in the southern metro. This has been revealed by RAM data for all female 12 plus, all places of listening from Week 1 of 2010 (December 27, 2009-January 2, 2010) to Week 15 of 2010 (April 4-10). Fever FM, which for long had remained at the third spot, has now slipped, allowing Radio City to surpass the ratings of Fever FM on Week 15, thus narrowing the gap between the third and fourth spots. While Big FM and Radio Mirchi are competing for the top slot leaving no clear winner, the fight for the second slot has emerged between Fever FM and Radio City.
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Big FM ended Week 15 with 19.8 per cent market share, while Radio Mirchi was marginally ahead with a market share of 19.9 per cent. Just a week prior to that on Week 14, Big FM had led the field in Bangalore among female listeners with a 20 per cent market share, while Radio Mirchi had a market share of 17.4 per cent. While Big FM had reached its highest peak on Week 7 with 20.8 per cent of the market share, Radio Mirchi had reached its highest peak in terms of ratings on Week 3 with 20.4 per cent market share. Fever FM ended Week 15 with 11.9 per cent market share, as against the 12.8 per cent market share of Radio City. The only other time Radio City came very close to Fever FM during this 15-week period was on Week 12, when Fever FM had received a market share of 13.6 per cent, while Radio City had a market share of 13.4 per cent. Red FM, Radio One, and AIR FM1 Rainbow are the other FM stations that are closely behind Radio City competing for the third slot. The other clusters of FM stations in Bangalore market include Radio Indigo, Akashavani and Gyan Vani.
Revenue generates through advertisement last three years in rupees

revenue from advertisementI RS for Radio mirchi

5E+09 4E+09 Axis Title 3E+09 2E+09 1E+09 0 revenue from advertisementI RS 2007-2008 413454671 2008-2009 4288900786 2009-2010 4231647566

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Swot Analysis of radio mirchi

STRENGTHS
Largest operating network Operate in diverse market Widely recognized Strong advertisement sales capability. High quality studio & transmission equipment

OPPORTUNITIES
Satellite radio/DAB Internet radio Self-news shows International market

WEAKNESSES

THREATS

Inadequate penetration in Indian AIR FM radio, Gold Pvt. Music market. stations Ads are more as compare to Retaining talented RJs songs aired

7PS OF RADIO MIRCHI

PRODUCT MIX BrandThe brand is Radio mirchi. As it is a right reflection of the one to one relationship with an emotional ownership of the medium with the listeners. The brand operates at the single frequency 98.3 Bangalore
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across

The brand id Radio mirchi its hot

Target segment They have a large chunk of listeners who are- young, housewives, also listeners who are 40 plus.So programming caters to all strata of society. So, while they target the young population, they cannot afford to ignore the other large segment of the society.

Language In Bangalore radio mirchi has made their programs in Hindi and kannada PRICE

Place Station: 32 Frequency: 98.3 FM Brand visibility: Corporate cricket Celebrating festivals Sponsored ads Organizing movie screenings Blood donation Camp Contest on air and on website

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Promotion Advertisements: My Radio mirchi does two types of advertisements. One is theme advertising and other is mode advertising. In mode advertising frequency of Radio mirchi is highlighted to target the customer so that they can recall station with frequency. While in theme advertising just a poster of joy with tag line of Radio mirchi is highlighted. Contests Radio mirchi does on air activity and asks question to listener and one who gives answers to question will get a prize like movie tickets, water park tickets and gift voucher Physical Evidence Being a service provider and also available anywhere at any time in physical evidence depends on the customers. Anyone can set the frequency and avail the service anywhere. Promotions help to create brand awareness and thus support the physical evidence. Event organization-they also have been organizing or sponsoring several programs which again help to create awareness and visibility which helps to attract more listeners to tune into. Gifts help to create peripheral evidence, which listeners take away with them and motivates them to tune into in help in more interaction.

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Radio mirchi has a colourful and interactive website which is useful for not just listeners but also helps to get ad revenue by quoting charges for ads per second. Thus it also helps to get an idea of how to approach Radio mirchi for campaigns. It also has interesting contest and music download which attract the music lovers.

Process A radio wave is an electromagnetic wave propagated by an antenna. Radio waves have different frequencies. The listeners can tune the radio receiver to a specific frequency to catch a specific radio signal. The size of the antenna depends on the frequency of the signal to be transmitted or received. Mirchi has much better technology as all of its equipments are imported from USA and Canada for better quality broadcast and coverage.

People They are hiring only local talents and theres no dearth of talent in this country. There is a lot of research before the launch of any station, the programming teams are trained for nothing less than three to six months. They dont import radio jocks from the metros and impose them on an alien city. They ensure that they are in touch with the localities, culture and ethos.
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Here Radio jocks plat an important part in creating a special relationship with the listeners and thus helps to create the differentiation. They can develop a special liking whereby the listeners will prefer listen to their shows due to the preference of RJs

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COMPETITOR
VIVIDH BHARTI(rainbow FM)

INTRODUCTION:
AIR FM Rainbow is a group of FM radio channels across India. The group of stations was previously called FM Metro, but the name was changed to FM Rainbow in 2002. The group is run by All India Radio, or AIR, a government owned enterprise. It features Hindi and regional language songs, while also playing English music and providing hourly news in English, regional language and/or Hindi. In Bhopal, FM Rainbow broadcasts in Hindi to more than 12 districts of Madhya Pradesh and 21 Bhopal City suburbs. AIR FM Rainbow Delhi airs in as many as ten cities, more than any of the other FM Rainbow frequencies. Mumbai, Lucknow, Vizag, hyderabad, Vijayawada, and Bangalore all receive FM Rainbow transmissions on a variety of frequencies. Rainbow stations are widely accessible due not only to their strong FM signals that carry transmissions to numerous villages in addition to urban areas, but also to FM Rainbow's commitment to providing diverse programming. Rainbow FM stations plays ghazals, soundtracks, and a variety of programs featuring Western music, both Popular Music and Classical Music. Some such programs are "Time Out," "Take Off," "Footloose," and "Wicked Hour." FM Rainbow's variety of programming is unique for an Indian radio station, yet almost all the disc jockeys (locally known as "radio jockeys," or RJs) on private Indian FM stations got their start at FM Rainbow. Programming is provided on a rotating schedule, accessible from the All India Radio website, along with the frequencies available in different regions.

History Broadcasting in India actually began about 13 years before AIR came into existence. In June 1923 the Radio Club of Bombay made the first ever broadcast in the country. This was followed by the setting up of the Calcutta Radio Club five months later. The Indian Broadcasting Company (IBC) came into being on July 23, 1927, only to face liquidation in less than three years. In April 1930, the Indian Broadcasting Service, under the Department of Industries and Labor, commenced its operations on an experimental basis. Lionel Fielden was appointed the first Controller of Broadcasting in August 1935. In the following month Akashvani Mysore, a private radio station was set up. On June 8, 1936, the Indian State Broadcasting Service became All India Radio.

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The Central News Organization (CNO) came into existence in August, 1937. In the same year, AIR came under the Department of Communications and four years later came under the Department of Information and Broadcasting. When India attained independence, there were six radio stations in India, at Delhi, Bombay, Calcutta, Madras, Tiruchirapalli and Lucknow. There were three in Pakistan (Peshawar, Lahore and Dacca). AIR then had a coverage of just 2.5 % of the area and 11% of the population. The following year, CNO was split up into two divisions, the News Services Division (NSD) and the External Services Division (ESD). In 1956 the name AKASHVANI was adopted for the National Broadcaster. The Vividh Bharati Service was launched in 1957 with popular film music as its main component. The phenomenal growth achieved by All India Radio has made it one of the largest media organisations in the world. With a network of 262 radio stations, AIR today is accessible to almost the entire population of the country and nearly 92% of the total area. A broadcasting giant, AIR today broadcasts in 23 languages and 146 dialects catering to a vast spectrum of socio-economically and culturally diverse populace. Programmes of the External Services Division are broadcast in 11 Indian and 16 foreign languages reaching out to more than 100 countries. These external broadcasts aim to keep the overseas listeners informed about developments in the country and provide a rich fare of entertainment as well. The News Services Division, of All India Radio broadcasts 647 bulletins daily for a total duration of nearly 56 hours in about 90 Languages/Dialects in Home, Regional, External and DTH Services. 314 news headlines on hourly basis are also being mounted on FM mode from 41 AIR Stations. 44 Regional News Units originate 469 daily news bulletins in 75 languages. In addition to the daily news bulletins, the News Services Division also mounts number of news-based programmes on topical subjects from Delhi and its Regional News Units AIR operates at present 18 FM stereo channels, called AIR FM Rainbow, targeting the urban audience in a refreshing style of presentation. Four more FM channels called, AIR FM Gold, broadcast composite news and entertainment programs from Delhi, Kolkata, Chennai and Mumbai. With the FM wave sweeping

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the country, AIR is augmenting its Medium Wave transmission with additional FM transmitters at Regional stations. In keeping with the Government decision for transition to the digital mode of transmission, AIR is switching from analog to digital in a phased manner. The technology adopted is the Digital Radio Mondiale or DRM. With the target of complete digitization by 2017, the listeners can look forward to highly enhanced transmission quality in the near future.

revenue from advertisement in crore rs

revenue from advertisement in crore rs 283.75 289.21

268.83

132.5

141.04

156.67

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

Analysis of company (competitor) As we see the revenue generated from radio advertisement is increasing Almost 110% increase in revenue growth from last six years

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no of listners in bangalore in percantages out of 100 for rainbow FM

no of listners in bangalore in millions for rainbow FM

6.1 5.3 5 4.9

3.5

3.4

40 to 43

43-47

48-51

53-03

3 t0 7

7 to 11

Analysis no of listeners always declines in case of radio rainbow Except from week 42 to 47

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SWOT ANALYSIS OF FM RAINBOW CHANNEL

WEAKNESSES STRENGTHS
Failure to connect with the youth due to old format
First Mover Advantage Air time of 15-18 hours a day Reach (99% population) Offers very less variety of program Low charges Fragmented audience Support from Government Huge fan following loyal customer Old world charm Simplicity in its presentation Vast collection of old classic songs

OPPORTUNITIES

Growing popularity Low charges Development and advancement in radio broadcasting technology Internet radio International market Use of digital technology

THREATS

Private Radio Players iPod, Walkman High Music Royalties

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7 PS OF FM RAINBOW
PRODUCT MIX BrandThe brand is Rainbow FM . As it is a right reflection of the one to one relationship with an emotional ownership of the medium with the listeners. The brand operates at the single frequency 101.3 across Bangalore Target segment They have a large chunk of listeners who are- young, housewives, also listeners who are 40 plus.So programming caters to all strata of society. So, while they target the young population, they cannot afford to ignore the other large segment of the society. Language In Bangalore Rainbow FM has made their programs in Hindi and English PRICE

Place Station: all over India Frequency: 101.3 FM

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Brand visibility: sports Celebrating festivals Sponsored ads Organizing movie screenings Blood donation Camp Contest on air and on website Various religion programmes and singer News both in Hindi and English

Promotion Advertisements: My Rainbow FM does two types of advertisements. One is theme advertising and other is mode advertising. In mode advertising frequency of Rainbow FM is highlighted to target the customer so that they can recall station with frequency. While in theme advertising just a poster of joy with tag line of Rainbow FM is highlighted. Contests Rainbow FM does on air activity and asks question to listener and one who gives answers to question will get a prize like movie tickets, water park tickets and gift voucher

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Physical Evidence Being a service provider and also available anywhere at any time in physical evidence depends on the customers. Anyone can set the frequency and avail the service anywhere. Promotions help to create brand awareness and thus support the physical evidence. Event organization-they also have been organizing or sponsoring several programs which again help to create awareness and visibility which helps to attract more listeners to tune into. Gifts help to create peripheral evidence, which listeners take away with them and motivates them to tune into in help in more interaction. Rainbow FM has a colourful and interactive website which is useful for not just listeners but also helps to get ad revenue by quoting charges for ads per second. Thus it also helps to get an idea of how to approach Rainbow FM for campaigns. It also has interesting contest and music download which attract the music lovers.

Process A radio wave is an electromagnetic wave propagated by an antenna. Radio waves have different frequencies. The listeners can tune the radio receiver to a specific frequency to catch a specific radio signal.

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The size of the antenna depends on the frequency of the signal to be transmitted or received. Rainbow FM has much better technology as all of its equipments are imported and provide better broadcast and coverage.

People They are hiring only local talents and theres no dearth of talent in this country. There is a lot of research before the launch of any station, the programming teams are trained for nothing less than three to six months. They dont import radio jocks from the metros and impose them on an alien city. They ensure that they are in touch with the localities, culture and ethos. Here Radio jocks plat an important part in creating a special relationship with the listeners and thus helps to create the differentiation. They can develop a special liking whereby the listeners will prefer listen to their shows due to the preference of RJs

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RADIO MIRCHI VS RAINBOW FM

campraision of share of listners in percanteges

Series1 Series2 26 23.1 22.7 21.1 22 22.3

5.3

6.1

4.9

3.5

3.4

40 to 43

43-47

48-51

53-03

3 t0 7

7 to 11

A chart showing about the no of listeners on weekly basis The chart clearly shows the listenership of radio mirchi is always thrice the market share as compare d to rainbow FM

RATES CAMPARISION FOR ADS IN RADIO FM CHANNELS (FM rainbow and radio mirchi) Introduction The following secondary is collected form Mr Ankit bhatt sales representative for radio mirchi and for FM rainbow we got the information from allindiaradio.gov.in
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Generally

THE RADIO TIME IS DIVIDED INTO THREE ZONES-:

Zone1->07-1100 hour and 1800-2100 hour Zone 2->1100-1500hour and 2100-2200hour Zone3->1500-1800hour and 2200-07 hour

Advertisment rates for common ads in INR

vividh bharti rates for 10 sec 700 600 500 500 400 300 Radio mirci rates for 10 seconds

zone 1

zone 2

zone 3

This chart shows about the rate for different time zone for sponsoring common rates for 10 seconds

CONDITIONS
Max limit /ad-30 sec Min limit/ads-10 seconds Average ads have 18 sec

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Advertisement cost for house sponsership for 120 second FCT

vividh bharti rates for 120 sec 9000 7500 5400 3250 7000 4500 Radio mirci rates for 120 seconds

zone 1

zone 2

zone 3

Tis chart shows about the cost of sponsorship programmes for each radio stations

CONDITION
Minimum FCT will be 90 seconds 20% for branding in vividh bharti and 10 to 15% depending upon

the client in radio mirchi

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Advertisement cost for sponsorship FCT 150 seconds

advertisement cost for sponsership FCT 150 seconds in INR

vividh bharti rates for 150 sec 11000 8400 6000 3800 8000 5000 Radio mirci rates for 150 seconds

zone 1

zone 2

zone 3

Condition If show is of 15 minutes FCT will be charged according to that No minimum seconds

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Advertisement rates for per song

Advertisement rates for songs

vividh bharti rates for per seconds 1500 1500 1300 1300 1000 Radio mirci rates per songs

100 zone 1 zone 2 zone 3

This chart tells about the cost per songs in two radio FM channels Conditions Song should be 3.38 sec FCT 20 seconds

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RESEARCH METHODOLOGY
Description of the Research Design This paper is a study of the scope of advertising in radio FM channels in Bangalore. The Main purpose of this paper is to examine and analyses the Scope of advertising in FM radio stations. So, this research paper aims to develop a research model which would justify this papers affinity towards the use of advertising in FM radio stations. This research paper adopts an analytical TYPE of research. The research methodology used for the paper was kept very simple. Primary data was collected by conducting. Personal Interview

TYPE OF RESEARCH DESIGN Descriptive research is used for the project. QUANTITATIVE RESEARCH A survey of listeners in Bangalore is done. The survey is done by questionnaire which comprises of open ended as well as close ended questions. SOURCES OF DATA Primary Data

Primary data is collected through survey of listeners. Secondary Data

Secondary data was collected from companys catalogue, internet, and magazines. METHODOLOGY The method used for survey is structured questionnaire. RESEARCH TOOL
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Questionnaire QUESTIONNAIRE DESIGN

The questionnaire comprise of open ended and closed ended questions.

SAMPLE DESIGN SAMPLE SIZE: 40 SAMPLING TYPE: Convenience Sampling SURVEY Once pilot study was over, actual survey was conducted. Classification and tabulation of data
Result of the study was put in tables and graphs along with interpretation for easy understanding of the findings of the research. Accordingly the charts and perceptual maps were generated from the tables.

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Graphical interpretation Listenership in Radio

yes no 39 1

listenership of Radio
3%

do yoy listen radioi yes no 97%

AnalysisAs seen out of 40 respondent 39 people respondent and 1 people not respondent

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2. LISTNERS GENDER WISE

male female 23 16

listnership gender wise

male female

41% 59%

Analysis As seen the male respondent are more than female respondent From 39 responses

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3. AGE WISE LISTNERSHIP

Age 10 to 20 20 to30 30 to40 40 to50 50 to 60 above 60

respondent 1 24 8 3 2 1

Listnership trends age wise inFM radio

10 to 20 20 to30 30 to40 40 to50 50 to 60 above 60 5% 3% 3% 8% 20% 61%

Analysis- as seen from the chart maximum respondent is from age 20 to 30 as they are college students and fresh working professionals we had seen the max listenership goes to youth

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4.

REASONS FOR LISTNING RADIO

radio No news advertisement music education information(agricultural)

1 12 24 1 1

reasond for listning FM Radio

news advertisement music 3% 3% education 2% information(agricultural)

31%

61%

Analysis As seen from the above graph the listenership for FM channels is Due to music than due to local offers advertised in FM channels

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5. PREFERENCE OF RADIO FM LISTNING

Suitability preference to listen radio Home Office Travelling Anywhere

no 14 5 16 9

preprefrence places for listning Radio FM

Home Office Travelling Anywhere

21%

32%

36%

11%

Analysis As seen in graph the listenership trends among listeners and The preferred places.36% listens while travelling followed by 32% in home

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6. TIME PREFERRED FOR LISTING RADIO

Time zone1( 07-100 hours and 1800-2100 hours) zone 2(1100-1500 hours and 2100-2200 hours) zone3(1500-1800 hours and 2200-700)

no of people 21 15 3

Time preferd by people for listning FM radio

zone1( 07-100 hours and 1800-2100 hours) zone 2(1100-1500 hours and 2100-2200 hours) zone3(1500-1800 hours and 2200-700) 8%

38%

54%

Analysis As we seen in this chart the people 54% of peoples listen radio in zone 1 followed by 38% in zone 2

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7. LANGUAGE PREFERENCE FOR FM RADIO LISTENERS

Language Hindi English Kannada Hindi and English English,Hindi,Kannada no of people 13 8 5 7 6

Launguage prefrence fo Fm Radio

Hindi English Kannada Hindi and english English,Hindi,Kannada

15% 33% 18%

13%

21%

Analysis As seen from the above diagram most people prefer 33% i.e. one third of radio listeners prefer Hindi language followed by 21% English language

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Hours for listening Radio

listening radio in hours less than 1 hour 1 to 2 hours 2 to 3 hours more than 3 hour

no of People 6 20 11 2

No of hours for FM radio listning

less then 1 hour 1 to 2 hours 2 to 3 hours more than 3 hour

5% 28%

16%

51%

Analysis As seen in the graphs the more than 51% of people listens radio between 1 to 2 hour followed by 2 to 3 hours with 28 %

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FM Radio channel preference

FM stations preference Radio mirchi Radio city91.1 FM Radio indigo 91.9 FM big 92.7 radio one 94.3 FM Red FM 93.5 Amrutavarshini 102.9 FM FM rainbow 102.9 FM Fever 104 .FM

no of respondent 7 11 5 12 3 5 6 5 9

no of respondent
no of respondent 16 11 5 12 9 3 5 6 5

Analysis As respondent are more than 39 because many people had preferred more than 1 FM channel for listening Radio

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FREQUENCY OF CHANGING CHANNELS

frequency very frequently frequently medium less frequently very less frequently

no of people 5 15 12 6 1

frequency of changing Radio FM channels durng Advertisement

very frequently less frequently frequently very less frequently 3% 15% 13% meduim

31%

38%

Analyse As seen from above chart as 38% of people frequently switch the channels followed by medium with 31%

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EFFECT ON BUYING BEHAVIOUR THROUGH RADIO ADVERTISING

effects yes no maybe

response 18 11 10

Affect on buying behavuour throgh Radio ads

yes no maybe

26% 46%

28%

Analyse As seen from chart radio advertisement affects buying

behaviour for more than 46% and 28% said no and 26% said maybe

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Devices used to listen Radio FM

device used to listen radio music system mobile Phone Transistor Portable Radio

no of people 11 22 6 0

Device used to listen RadioFM

music system mobile phone 0% 15% 28% transistar Portable radio

57%

Analysis As seen from the chart mobile phone are maximum used For listening Radio FM with 58% then followed by music system and transistor

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ANALYSIS AND INTERPRETATION OF DATA

1. Growth of radio industry projected 53 million dollars to 267 million dollars in six year almost 500% increase 2. Revenue generated by media industry in in 2011 is 1001.7 bn INR and radio shares 1.7% of that total revenue which is 17 bn INR 3. Projected growth rate of Indian radio advertisement shares 5.5 % of total media advertisement in India 4. Top four ads that comes in Radio advertisement in 2010 are 1. Property 2. Cellular phone service 3. TV channel promotion 4. Independent retailer 5. Revenue generated by both Radio mirchi And Rainbow FM always seen growing Rainbow FM had shown 500% growth from 2003 to 2008 6.Radio Mirchi is more expensive in term of Radio advertising as listenership are more and the cost per ad is dependent by the time zone preference 7. Youth age from 20 to 30 are more into radio listening 8. More than 60% of people listens Radio for listening music 9. People prefer to listen radio while travelling mostly people prefer while travelling to office or going for drive or vacations 10 .People generally prefer Zone 1 i.e. from 700 to 1800 hours and 1800 to 2100 hours 11. Hindi is most prefer language for listening radio 12. More than 505 of people listen radio between 1 to 2 hour 13. 38 % of the people changes FM channels frequently when any advertisement comes
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14. 46 % people says that Radio advertising affects their buying behaviour they tend to buy products by listening Radio FM channels ex property ads 15. Max no of listeners is for Radio mirchi followed by big 92.7 and then radio city

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CONCLUSION 1. Radio advertisement is growing at very fast rate each in turn supports revenue growth for India 2. Radio is considered as secondary source of advertisement as no of listeners drastically increased in last ten year it can be a primary source of Advertising 3. The cost of advertising is low as compared to other media like TV and internet 4 Radio FM channels may also help to reach the wider audience 5 Time can be taken more in radio as compared to TV(i.e. You can get extra more seconds at low price to conveys your massage as compared to television) 6. Massage can be convey easily by using local and national language 7. Generally in morning and evening people preference to listen radio 8. More no of people use FM Radio from their music system 9. People prefer to listens radio mostly in travelling 10. Radio mirchi has more active listeners as it broadcast programmes (both in Hindi and local language 11. To reach max audience in Bangalore the people should considered Radio mirchi for advertisement as it has max listeners 12 as compared to Rainbow FM people should considered Radio mirchi for advertisement

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SUGGESTION AND RECOMMENDTION

1. People should use radio advertising as their budget is low as compared to local television 2. They should have a new FM channels only for advertisement and promotion 3. If cost is lowered it can also attract middle segments people to advertise their product 4. In Bangalore they should play more Hindi songs to attract wider audience as Hindi is preferred language for radio listenership 5. If target audience is urban or rural use FM rainbow if its in metro (like Bangalore) people should use private FM channels 6. Despite its wide appeal, radio is the least taught and least researched by universities, and the most overlooked by advertisers and Advertising agencies.

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BIBLOGRAPHY 1. Books referred

Radio Advertising (Ntc Business Books) Peter Schulberg and Pete Schulberg Writing for Radio: A Practical Guide by Annie Caulfield

2.

Newspapers & Magazines

The Economic Times The Asian Age The Hindu Deccan Herald

3.

Web links
http://www.radioadvertisingbook.com www.radiiomirchi.com www.allindiaradio.org www.streetdirectory.com www.tradeindia.com

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