2. Introduction
Radio Mirchi is the most popular private FM
radio channel in India with the largest operating
network and a presence in 33 cities & 6 Metros.
The case traces the emergence of Radio Mirchi
as a leader in the Indian 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 new challenges that Radio Mirchi
might have to face in the changed environment
and the future outlook for the company.
3. Background Note
Operated by Entertainment Network
India Ltd (ENIL)
Promoters: Bennett, Coleman & Co.
and Time Infotainment Media Ltd.
Radio Mirchi is Star SBU of ENIL ,
started October 2001
4. First wave of FM Privatization
July 1999 gov decided to privatize FM Radio
sector.
Ninth Five year plan
Gov offered licenses for 10 year, charging
15% license fee with annual hike.
2000 gov started bidding process for 108 FM
radio licenses in 41 cities.
Radio mirchi bidd on 64 F & won 12 licences.
Radio Mirchi started first from Indore.
Competion for Ads revenue amoung other FM
( Mumbai & Delhi)
5. ADDING SPICE
Change Perception of Radio.
Created a colorful image in audience.
Segmentation of listeners & program
was customized.
Local language programs.
Updated every week new releases.
Listeners chatted with film stars.
Radio mirchi hired RJs (radio jockey)
Radio Mirchi invested in high quality
equipment & transmissions.
6. Marketing Mirchi
Advertisements
Display media
Tie up with companies
Feedback from listeners (build consumer
involvement)
Sponsored many things.
Launching innovative promotion
campaigns.
Made sales team to maintain relation with
local advertisers
Price of Ads based on time.
Additional income from SMS
7. Growing popularity of RM
Popular in youths.
Reminder to reinforce marketing
Help to other SBU.
Program format of local language.
CSR (NGOs)
Information regarding traffic, health, safety
e.t.c
Good content & marketing
8. ll- wave of FM Privatization
Occurred losses because high license
fees in l phase
Threatened to close operation.
Gov agree on 4%
ENIL decided to fund expansion
through a public issue.
Bidding was 337 F in 91 cities, RM win
32
Sun tv44 , Adlabs also came.
9. New Challenges
Policy guidelines
Fear of Niche broadcaster
Entry of foreign radio channel
Re-entering of 1phase player
Adlabs ,Sun Tv
New campaign of existing
One-station-per-company-per city norm
implemented by gov
High charge taken by ppl (phonographic
performance ltd)
Development of high technology- internet,
quality of software, internet radio, digital audio
broadcasting
Gov restricted 2-3 minutes news only
10. Outlook
Optimistic about new policy
Listeners increased
Market reach
Started strategic partnership with
international players.
Provide consultancy services in
Bangladesh to set up new radio station
Maintain Leading position through
innovative marketing campaign.
11. Questions
What in your opinion has contributed to immense
success of Radio Mirchi?
Do you think gov was only responsible for losses
incurred by private FM or companies themselves
to blame for lack of judging the FM industry
potential?
Is the current optimism justified considering the
fact that revenue growth in FM industry is very
slow and the competition has intensified
What are the future prospects for Radio Mirchi?
Do you think it can continue dominating the
indian FM radio industry