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Radio Mirchi: Marketing Strategy For The Bangalore Market

Radio Mirchi is losing market share in the important Bangalore market. It currently only offers Hindi music. It should change its music offering to include both Kannada and Hindi music to appeal to more listeners in Bangalore. Continuing with only Hindi music will result in further loss of market share to competitors in Bangalore, an important market for the radio industry. Changing the product is necessary to adapt to the local market dynamics and preferences of Bangalore listeners.

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Santosh
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815 views6 pages

Radio Mirchi: Marketing Strategy For The Bangalore Market

Radio Mirchi is losing market share in the important Bangalore market. It currently only offers Hindi music. It should change its music offering to include both Kannada and Hindi music to appeal to more listeners in Bangalore. Continuing with only Hindi music will result in further loss of market share to competitors in Bangalore, an important market for the radio industry. Changing the product is necessary to adapt to the local market dynamics and preferences of Bangalore listeners.

Uploaded by

Santosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Radio Mirchi: Marketing Strategy for

the Bangalore Market


1) Phase II of radio privatization and Radio
Mirchi performance
• Channels operating under the phase I regime found licensing fee high
• Extensive pressure from FM operators forced govt to change its policy
• In phase II, govt accepted bids for 338 channels in 91 cities which were divided
into five broad categories
• Operators were instructed to pay one time entry fee and later share 4% of gross
revenue.
• They put a cap of number of licenses to 45 per operator
• Between July and august 2006, radio mirchi saw entry of new players like Big FM,
S FM, Radio one and many more
• In 10 months after its launch its numbers were bad. Big FM and S FM surpassed
its market share in 6 months and others started to catch up.
• Brand awareness of Big and S FM were comparable or superior to Radio mirchi.
2) Importance of Bangalore market for Radio
Mirchi
• Bangalore is top three media markets in India
• Bangalore is also one city that is crucial for economic success of any
radio brand because of the way it is growing
• Along with Mumbai and Delhi, Bangalore is prime market for radio
companies
• Success in Bangalore will help Radio mirchi to gain larger listenership
base, enhanced advertising revenues and dominant position in FM
industry.
• If company does bad in prime market like Bangalore it will affect their
nationwide market share
5) What should be the implications of
changing the product design?
• Consideration of changing the product to suit Bangalore market by offering
Kannada music exclusively
• The Radio Mirchi was appropriately positioned as the foremost channel
offering the finest Hindi music
• Changing the channel’s music content would cause to lose advertisers who
preferred it for its Hindi content
• Potentially loss of loyal customers who preferred it for exclusive Fine Hindi
content
• Challenge in attracting a new set of advertisers who had not patronized yet
• The marketing and promotional effort that was put in would go in vain
6) Should Radio Mirchi change its music
offering in the city?
• Yes, Radio Mirchi should change its music offering in the city
• The language content should not be restricted to only Hindi as it is
losing significant market share
• At the same time, it should not turn to drastically change the entire
content into Kannada Music
• The better strategy would be to cater both Hindi and Kannada music
listeners offering the finest content of both languages
7) Should it continue with its existing product
design?
• No, it should not continue with its existing product design
• Despite the extensive market and promotional effort, the Radio
Mirchi kept on losing the market share
• So it should adapt to the dynamic environment before other Radio
players capture the market
• Also the content needs to be crafted well as Bangalore FM listeners
felt that on Radio Mirchi, film music was played less than other forms
of Music

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