1. Submitted by
Anand Raj & Sawai Lal
About Radio
The early history of radio is the history of technology that produced radio instruments that use radio
waves. Within the timeline of radio, many people contributed theory and inventions in what became
radio. Radio development began as "wireless telegraphy". Later radio history increasingly involves
matters of programming and content.
Nikola Tesla experimentally demonstrated the transmission and radiation of radio frequency energy in
1892 and 1893 proposing that it might be used for the telecommunication of information.
Around the start of the 20th century, the Slaby-Arco wireless system was developed by Adolf Slaby and
Georg von Arco. In 1900, Reginald Fessenden made a weak transmission of voice over the airwaves. In
1901, Marconi conducted the first successful transatlantic experimental radio communications. (A1)
About FM Radio
FM broadcasting is a broadcasting technology pioneered by Edwin Howard Armstrong which uses
frequency modulation (FM) to provide high-fidelity sound over broadcast radio. The term "FM band"
describes the "frequency band in which FM is used for broadcasting". This term is slightly misleading,
since it equates a modulation method with a range of frequencies.
Radio Industry In India
Radio broadcasting in India started in British India in 1923 with the Radio Club of Bombay. All India Radio
(AIR) was established in 1936 which is one of the largest radio networks in the world including the AIR
FM. AM, FM and even Satellite Radio have made a huge impact on the Industry in India. Most of the
media houses either already have a presence in the industry or are looking to get a license in the next
round. Famous stations are Radio Mirchi (of the Times Group) has maintained a lead position in most
cities it operates in and other channels like Radio City, Red FM, Big FM, Fever, Radio One have also been
able to get significant traction. Till 1990 Indian economy was closed, no private player was allowed to
enter and Akashwani has the sole responsibility to cater to the wide and culturally diverse Indian
consumer base. In the last 5 years, the Radio industry in India has seen a CAGR of approximately 20%
and has grown to a size of around Rs. 8.3 billion in 2008. By the end of the 2010, there were 245 active
radio stations in India and had a market size of INR 10 billion. It registered a cumulative growth rate of

2. 11 percent from 2007 to 2010. The industry is projected to grow at a CAGR of 20 percent over 2010-
2015 and is expected to be INR 25 billion in terms of revenue. Phase III privatization of the radio FM is
expected to add 839 new radio stations in 294 cities. The government has approved Foreign Direct
Investment (FDI) in FM radio channels to 26 percent from the current 20 percent. Ministry of
Information and broadcasting is planning to release additional frequencies in all markets, automatic
renewal of license at the end of the initial term of the license of the term. One of the major reasons for
such an interest in the industry is the increased profitability. The government has cut the license fees to
1/10th of the previous amount. (A2)
Macro environment factors affecting FM Radio:
 Demographic factors
 Economic factors
 Political factors
 Technological factors
 Socio-cultural factors
Demographic factors: Demographics is the study of population factors such as the
proportion of the population who are of a given race, gender, location or occupation, and
also of such general factors as population density, size of population and location.
FM PENETRATION IN MUMBAI, DELHI, BANGALORE AND KOLKATA
CITIES/POPULATION TOTAL POPULATION- ALL 12+ FM PENETRATION
AND FM PENETRATION (FIGURES IN ‘000) (FIGURES IN ‘000)
2007 2011 2007 2011
DELHI 11396 18523 6723 16321
MUMBAI 14349 16674 7347 11655
BANGALORE 5131 6050 3646 5274
KOLKATA 12375 13583 7851 8740
FIG:- http://thehoot.org/web/RADIO/5844-1-1-37-true.html
The radio listeners are not affected by the income group they belong to. In fact with the improvement of
the technological changes like Introduction of FM in mobile phones, cars stereo systems and portable
radio have made the FM world available to all income groups.
Economic factors
Today the FM industry is a attractive source of income for the government as well as private
players. The government sees it as a big source of revenue. Below is the table showing the
estimation of government to generate revenue from this particular industry.

3. PRIVATE FM RADIO INDUSTRY - POTENTIAL INCREMENTAL REVENUE TILL 2016
POTENTIAL
INCREMENTAL
REVENUE
(in INR billion)
2011 11.5
Revenues from 10
existing stations
Revenues from new 5
licenses in existing
cities
Revenues from new 2.9
licenses in new cities
2016 29.4
Fig:- http://thehoot.org/web/RADIO/5844-1-1-37-true.html
EXPECTED REVENUES FOR GOVERNMENT FROM PHASE III AUCTIONS
CATEGORY AVERAGE PRICE NO OF LICENSES Total collection
EXPECTED PER (INR billion)
LICENSE (INR
billion)
Category A+ 0.21 4 0.85
Category A 0.13 19 2.51
Category B 0.05 29 1.60
Category C 0.04 175 7.00
Category D 0.008 609 4.87
Total 839 16.83
Fig:- http://thehoot.org/web/RADIO/5844-1-1-37-true.html

4. The government has also approved 26% in FDI increasing it from 20%. This is also expected to give a
boost to this industry.
Political factors
With the government’s move to liberalize the entertainment industry has given a big boost
the FM industry in India and private players are now investing in this sector with a lot of
enthusiasm. With the government’s approval of 26% FDI in this sector is proving to be an
injection for the FM radio industry.
Technological factors
With the advancement in the technology the reach of the FM radio is vast. It has reached almost every
hand in this country as it was launched with the mobile phones. With it introduction in the car stereo
has made it available on the roads when one is traveling. People now see it as a source of information
and entertainment.DTH is also a great source of FM radio in india for the rural segments.
DEVICES OWNED BY FM LISTENERS
CITIES/ MOBILE RADIO SET/ 2 IN 1 HI FI MUSIC WALKMAN/
% OF MOBILE PHONE TRANSISTOR SYSTEM DISCMAN
DEVICES 2007 2011 2007 2011 2007 2011 2007 2011 2007 2011
OWNED
DELHI 39 98 73 28 32 11 10 12 7 4
MUMBAI 49 99 41 17 33 10 21 15 12 4
BANGALORE 34 95 58 48 40 22 10 13 12 6
KOLKATA 40 95 68 53 25 18 13 12 4 4
Fig:- http://thehoot.org/web/RADIO/5844-1-1-37-true.html
Socio-cultural factors
Socio-cultural factors are those areas that involve the shared beliefs and attitudes of the
population. It basically derives it in three categories :- Youth, Middle age and Old age. The
social trends show that the youths prefer to listen to the latest songs and the entertaining
RJ’s. The middle age prefers to listen to latest songs and old songs and see it as a source of
information. The old age listens to such channels where talks related to the health,
spirituality, observe the changing trends and prefer the programmers who broadcast the old
songs.

5. Market share section wise
Delhi
The Radio Audience Measurement (RAM) data Delhi. As on February 21, 2011
Radio Mirchi leads in the city with a market share of 23.5 per cent, registering a loss of 1.6 per cent.
The radio station's average market share for the last four weeks is 23.8 per cent.
Fever FM and AIR FM2-Gold occupy the next two spots, with market shares of 19.1 per cent and
15.7 per cent, respectively. While Fever FM has gained 0.9 per cent, AIR FM2-Gold has also gained
0.2 per cent as compared to the previous week. Their average market shares in the last four weeks
are 18.8 and 16.4 per cent, respectively.
Red FM is at No. 4 with a market share of 11.4 per cent, registering a gain of 0.2 per cent. Radio City
is at fifth position with a market share of 9.2 per cent, registering a loss of 0.2 per cent over the
previous week.
In Week 5, Big FM and Radio One have garnered market shares of 6.7 per cent and 5.8 per cent,
respectively, occupying sixth and seventh positions, as compared to the respective market shares of
6.3 and 4.9 in the previous week.
Next in line are Oye! FM, AIR FM1-Rainbow and HIT 95 FM, with market shares of 2.9, 2.1 and 2.0
per cent, respectively.
Market: DELHI
Demographic: All People 12+ Filter Demographic: None
Statistic: Share %
Daypart: Sun - Sat 12:00 AM - 12:00 AM
Place of Listening: All
Channels Wk 47-50' 2011 Wk 51 '11- Wk 2' 2012
Fever FM 104 Delhi 19.5 18.8
AIR FM2-Gold 106.4 Delhi 20.1 18.3
Radio Mirchi 98.3 Delhi 17 16.7
Radio City 91.1 Delhi 11 12
Red FM 93.5 Delhi 11.7 11.5
Big FM 92.7 Delhi 5.4 6.3
Radio One 94.3 Delhi 5.3 5.2
Oye! 104.8 FM Delhi 3.4 3.7
AIR FM1-Rainbow 102.6 Delhi 2.5 2.8
Hit 95 FM Delhi 2.2 2.5
Vividh Bharati Delhi 1.2 1.5
Akashavani Delhi 0.6 0.6

6. Others Delhi 0.1 0.1
Total 100 100
Fig:- http://www.radioandmusic.com/radioandmusiclinx/y2k12/feb/Radio_Wk_51_11_2_12.htm
STP of FM Radio
The FM radio in India is targeting for all segments of the society. They have a special time allocated for
all program as per their customers. FM Radio such as MEOW which is specially for the women. As per
Radio City which divides its segments in categories such as `flirter` listeners want the latest music, as
well as the updates on FM, lonely souls` who tune into radio to seek companionship. The `lonely souls`
like interactivity and hence can be termed as the closest friends of the radio jockeys. A separate
category altogether is the `cool dudes` who tune in to radio for trend related content to make a style
statement. Majority of the listeners tune in to relax themselves, looking for entertainment and keeping
boredom away. They seek a bit of everything from radio.
In Delhi the programs are mostly for the youths and the RJ’s talk in mixed language (Hindi + English as
well as mix dialect such as Punjabi and Bhojpuri) where as in tier 2 cities the RJ’s speak Hindi mixed with
the local language.
Marketing Mix of FM Radio
Product:
For listeners - Music, information, a portfolio of entertainment programming 24 hours a day, in mix
of Hindi and English & dialect.
For corporate and retailers: – The airtime.
Place: Intensive also, Selective in the sense that it has set up radio stations across the country. FM
radio is today targeting the Tier 1 and Tier 2 cities.
Price: Advertisement rates & base on license fees.
Promotion: FM Radio promotion, a perfect blend of English and Hindi music, teamed up with
professional, vivacious RJ’s
On the promotion front, the channel undertook huge promotion campaign in the initial stages of its
launch.

7. 1. Display Hoardings
2. From word of mouth.
3. How to they positioning in mind of customer from their daily programme.
4. Giving prize to customer from question answer between programmes.
People: Professional, vivacious RJ’s play vital role in FM Radio industry. Their fluency in language
as well as dialect attracts the audience.
Physical evidence:- The RJ’s are very entertaining and try to connect with the audience. In today’s
scenario the Rj’s also visit different places such as malls, schools, colleges to connect with the
audience and make the relation stronger.
Process: - They provide a complete package of entertainment to their customers with the help of
their RJ’s. They make the customers to call and talk to RJ’s and make the bonding strong.
Integrated marketing communication of FM Radio
The FM world has become the part and partial of lives of people specially in the metro cities. People
in the rural areas have a special attraction for the FM radio and it a source of information related to
release of new songs and latest information related to lifestyle.
The FM channels today is a favorite place for corporate to advertise and inform people about the
their existing and new upcoming products. FM is also a favourite place for the entertainment
industry to promote their movies and songs. Even the Movie stars come and talk about their new
movies and urge the audience to watch it once. In today’s scenario no movie can imagine about its
success without the help of advertising on FM radio.
The FM channels also provide platforms for the corporate and well as stars to promote their
projects.
To make this more comfortable the FM today is available on the internet where listenrs and contact
and even listen to their programs and also corporate and advertise. The FM radio use hording and
banners to advertise about their RJ’s and programme. The FM have shows in which they distribute
gifts to listeners by having then participate in the programme.
The FM radios are today organizing and supporting many even and show such as singing
competition, fashion shows in colleges, and marathons to make their presence felt.
It is the result of the IMC strategy that corporate today allocate and special fund for their
advertising their product on radio.
Objective of the Project
1) To find out factors influencing Radio Listenership.
2) IMC credibility as media of FM Radio.
3) Frequency of usage.
4) Preferred channel, Preferred shows and preferred RJ’s.

8. 5) Loyalty of the listeners.
Hypothesis:
Majorly it has two types 1) Alternative 2) Null Hypothesis.
1) Alternative Hypothesis (H1):
If RJ’s will more interactive then FM Radio market share will grow.
Null Hypothesis (H0):
If RJ’s will more interactive then FM Radio market share may not grow.
1) Alternative Hypothesis (H1):
If IMC proper then FM channel will realm.
Null Hypothesis (H0):
If IMC proper then FM channel may not realm.
Methodology:
Survey: primary survey
Research Instrument: Questionnaire
Type Of Questionnaire: Close ended, liker scale
Sample Size: 20
Sample Unit: Age(18-25), Income, Occupation of chief wage earner.
Geographical coverage
Slum areas of Delhi.

9. Monthly House hold Income
0
no of respondents
1
3
2
Less than 5000
10000-15000
15000-20000
20,000-30,000
30,000 and above
14
Occupation of CWE

10. no of respondents
0
2
4
Private Service
Self employed
Govt. Service
Any other
14
Rank the following stations on the basis of Frequency of listening
no. of respondents
1 1 95.1
1
91.1
5 98.3
4
92.7
106.4
1 104.8
2 102.6
5
93.5