Presented by

Presented to : Anuja Jain

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

Operated by entertainment network

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

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

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

cities

Radio Mirchi bid on 64 Frequencies and won 12 licenses

Radio Mirchi started first from INDORE

CONTD…
Segmentation of listeners and program was customized

Local language programes

Updated everyday new releases

Reminder to reinforce marketing

Invested in high Quality

Launching innovation promotion campaigns

CSR (NGO’s)
SECOND WAVE OF
PRIVATISATION
Occurred losses because high license fee in phase 1

Threatened to close operation

Govt. agree on 4% of revenue as license fee

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

32 freq.

Fear of niche broadcaster

Expansion of Radio Mirchi to abroad

High charge taken by PPL(Phonographic performance ltd.)

MAJOR EVENTS
 PEST ANALYSIS
POLITICAL/LEGAL

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

ECONOMIC

RJ’s mainly attracted by package that has been preferred to

them by competitors.
Royalty pay to music companies
Contd…
SOCIAL FACTORS

Make programs according to regions (Multilanguage)

NGO’s “GIFT A SMILE,MAKE A DIFFERENCE”
Westernization is coming so needs and preferences of Indian
customer is changed
Help in June 2005 Mumbai flood
SWOT ANALYSIS
 ANSOFF MATRIX

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

two objectives:
PRIMARY OBJECTIVE:
• They should work upon the strategy to capture those markets
where there is no radio services available to gain COMPETITIVE
ADVANTAGE.
SECONDARY OBJECTIVES: In order to attract large number of
customers it can start programs like “KHABRI BABA” in which the
listners will give any five” news “and they will get special gifts.
 MARKETING MIX
PRODUCT
High quality studio and transmission equipment
Mass audience
Multilinguistic programs
Customization
Emphasis on culture
PLACE AND TIME
Broadcasting
(Ahmedabad,Mumbai,Banglore,Chennai,Indore,Kolkata,Lucknow
etc.)
Various programs at various time
Family (7:00-11:00 am)
Housewife(11:00-2:00 pm)
Youth(2:00-5:00 pm)
Evening Drive(5:00-9:00 pm)
Late evening(9:00-11:00 pm)
Night(11:00-1:00 am)
CONTD…
Ø PROMOTION
Cross media marketing
Bite a mirchi a get a pepsi free
Mirchi packets
Online promotion (983 kismat khol de)
Dabbawallas
Mumbai marathon
Mirchi khoobsurat
9 baj gaye kya
Mirchi kaan awards
Innovative programs (pappi da, go go ganguli,Mr. hot crack pot,Ding-Dong)
Jingles and promos
Sponsored events in schools and colleges
Mirchi job fest
Mirchi activation team
Radio workz

Ø PRICE
Ø PHYSICAL ENVIORNMENT
High quality studio and transmission equipment
DTH Radio involved radio broadcast from radio station via satellites
Good radio frequencies

Ø PROCESS
Direct attachment with audience
Talented RJ’s
Direct to home radio
Visual radio
Internet radio
Digital audio broadcasting
Satellite radio
seprate sales team of 130 employees in 8 cities

Ø PEOPLE
Hired skilled RJ’s
Emphasised on audience choice
Level of customer involvements
WHO OR WHAT?
 Segmentation
Demographic:-

Age group 18-35

Gender Family, Housewife, Youth

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

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

Situational:-
Radio Mirchi came up with unique game or any kind of attractive
show(for e.g. new year,Diwali,R.D. Burman show,Valentine day)
Give reminder like “9 baj gaye kya ”
 Targeting
• Radio Mirchi has targeted listeners as
well as advertisers. It has mainly
targeted youth(18-35) because they
are the major chunk of population.
M M M
1 2 3
S
1

S
2
S
3

Radio Mirchi is targeting on service

 POSITIONING

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K H USH
WAY S
L E A L
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MIRCHI AS LOGO—IT’S H

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DIRECT NT L PROGRAMES AND
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AREAS ALWAYS KHUSH

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

Giving listeners a platform to raise their

voice in election time

Briefing about election process

Motivating them to go out and vote

Showing responsibility during June 2005

flood time in Mumbai
 MARKETING STRATEGY OF RADIO
Ø MIRCHI
FORTRESS STRATEGY:-

EMPHASISED ON CUSTOMIZATION THROUGH INNOVATIVE AND

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

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

Ø RE-ENTRY OF THE PLAYERS:

Ø Star INDIA WIN 94.6

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