Thursday, May 26, 2011

MBA Project - Aniket & Melanie & Vinayak - Chapter 1


All India Radio
All India Radio (abbreviated AIR), officially known as Akashvani is the radio broadcaster of India and a division of Prasar Bharati. Established in 1936, it is the sister service of Prasar Bharati's Doordarshan, the national television broadcaster, today.
Commercial radio
Include the most famous radios which play music entire day. They are very popular in metro cities such as Delhi, Mumbai, Hyderabad etc. These radios make profit generally by attracting advertisers and are wide listened at the time of travelling in cars or bus from house to office and back in most of the metros.


Satellite radio
Satellite radio is one of the fastest-growing entertainment services in the world and it is making its presence felt in a small but a positive way in India. A satellite radio is basically a digital unit that receives signals broadcast by communications satellite. This allows a person with a set to follow his favourite stations anywhere in the country unlike the terrestrial radio (AM and FM) whose signals are limited to a certain area depending on the power of the station. Some of the advantages of a satellite radio are that the sound is of digital quality and there are no commercials. But it is not for free, it is available on subscription for a fee. An example would be “world space radio”.
Internet radio
Internet radio e-Radio is an audio broadcasting service transmitted via the Internet. Broadcasting on the Internet is usually referred to as webcasting since it is not transmitted broadly through wireless means but is delivered over the World Wide Web. The term "e-Radio" suggests a streaming medium that presents listeners with a continuous stream of audio to which they have no control much like traditional broadcast media. It is not synonymous with podcasting which involves downloading and therefore copyright issues. Nor does e-Radio suggest "on-demand" file serving. Many Internet "radio stations" are associated with a corresponding traditional "terrestrial" radio station or radio network. Internet-only radio stations are usually independent of such associations.
Community radio
Community radio is a type of radio service that caters to the interests of a particular area in need of mass awareness. The broadcasting material of community radio has to be popular to the local audience but can be a secondary issue for more powerful broadcast groups. It is limited for a fixed community, education institute, a social cause or a fixed area of approximately 12 kms.


1.2.1 MAJOR PLAYERS IN THE COMMUNITY RADIO INDUSTRY
Anna FM is India's first campus 'community' radio, launched on 1 February 2004, which is run by Education and Multimedia Research Centre (EM²RC), and all programs  are produced by the students of Media Sciences at Anna University. The first community-based radio station, licensed to an NGO (as distinct from campus-based radio) was launched on 15 October 2008, when ‘Sangham Radio’ in Pastapur village, Medak district, Andhra Pradesh state, was switched on at 11.00am. Sangham Radio, which broadcasts on 90.4 MHz, is licensed to Deccan Development Society (DDS), an NGO that works with women's groups in about 75 villages of Andhra Pradesh. The community radio station is managed by 'General' Narsamma and Algole Narsamma. The second NGO-led community radio station in India was launched on 23 October 2008 at 'TARAgram' in Orchha, Madhya Pradesh state. Named 'Radio Bundelkhand' after the Bundelkhand region of central India where it is located, the radio station is licensed to the Society for Development Alternatives (DA), a Delhi-based NGO. Radio Bundelkhand also broadcasts on 90.4 MHz for four hours a day, including two hours of repeat broadcast.
With the aim to create a common platform for local communities of Supi in Uttarakhand, TERI launched 'Kumaon vani', a community radio service on March 11, 2010. Uttarakhand Governor Margaret Alva inaugurated the community radio station, the first in the state. The 'Kumaon Vani' aims to air programs  on environment, agriculture, culture, weather and education in the local language and with the active participation of the communities. The radio station covers a radius of 10 km reaching out to almost 2000 locals around Mukhteshwar[9]
JNAN TARANGA, 90.4 FM is the first Community Radio Service in the entire north eastern part of India, formally started broadcast on November 20, 2010. Krishna Kanta Handiqui State Open University, Guwahati, Assam, India has successfully aired the first programme on 28th of January, 2009 as an experimental broadcast through the same frequency of 90.4 MHz. the name Jnan Taranga stands for knowledge wave.

1.2.2 SWOT ANALYSIS OF THE RADIO INDUSTRY
Strengths:
·         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.
·         A medium to the deprived in the society to raise their voice
·         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 can’t afford a TV set. Therefore radio is more popular.
·         Educates and development of the specific community
·         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.
·         Lack of revenue (specially community radio) as the advertisers show less interest in advertising through community radio
·         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.
·         Increase in listenership numbers but no increase in ad revenue. This is the situation that every radio channel is facing.
·         Restricted coverage in case of community radio
·         Poor quality radio signals at times especially in case of community radio
Opportunities:
·         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 bus 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
·         Venture with various college or university campuses and 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 to other entertainment medias such television, mobile web, internet etc.
1.2.3 THE INDIAN POTENTIAL IN THE RADIO SECTOR
Plainly, the radio sector cannot and should not be satisfied with a growth rate in the low 20s. In India too, it is the younger generation that is the key target audience vis-à-vis radio. While consumption in India is still largely at home, 'the radio on the move' trend is catching on in urban and semi-urban areas. The easy availability of FM radio sets at affordable price points (ranging from INR 40-INR 150) is fuelling its mass penetration.
According to market research, in Mumbai and Delhi, FM penetration is the highest. Further, 70 percent of radio listeners in these cities listen to FM radio all seven days of the week. However, this sector has not been able to monetize its hold on the listener’s eardrums. In spite of such attractive statistics, in terms of its advertising spend, radio remains a laggard. It has less than 2 percent share of the total advertising pie in India, compared to a global average of 8 percent. In the US, radio has a 13 percent share, in Spain 9 percent and closer to home, in Sri Lanka; radio has a 21 percent share of the advertising spend.
1.3 COMPANY PROFILE
1.3.1 SARANG RADIO
Community Radio Sarang 107.8FM is managed by the Mangalore Jesuit Educational Society (MJES) and is run by St. Aloysius College (Autonomous), Mangalore, a coastal town in the southern part of Karnataka, India. Dr Richard Rego SJ is both the founder and director of this campus based community radio. Though SARANG 107.8 FM is a campus radio, it is more of a community-participating radio than educational institution radio.
Sarang means 'harmony of colours' signifying various social, religious, linguistic communities and their peaceful coexistence at coastal Karnataka. Mangalore community is a melting pot of cultures, religions and languages. Hence, it was felt that Sarang would be the most appropriate name. The radio spreads messages of peace and harmony among people through programs based on the need for the same specially during celebrations and when such need is felt.
The station started broadcasting on 24th June 2009. At the begining the radio broadcasted only for 4 to 6 hours but presently broadcasts 14 hours of programs  everyday from 6.30am - 8.30pm. The broadcast covers Moodbidri, Udupi, Siddakatte, Bantwal, B.C. Road, Puttur, Sullia, Belthangady, Ujire, Manjeshwar, Ullal, Kotekar and near-by towns. 
Various community people like fisher-folk, daily-wage workers, auto-drivers, farmers, and others, besides students contribute programs  on various themes, making it real infotainment. People produce programs  in Kannada, Konkani, English, and Tulu. Malayalam, Beary, Hindi and Punjabi find a slot every week for half an hour each, on popular demand. Since 15 June 2010, Community Radio SARANG 107.8FM broadcasts 14 hours non-stop, from 6.30 to 20.30 hours
Dr. Richard Rego works with a full time staff of two people and various other volunteers who conduct one or the other programs for the radio according to their convenience. The programs are produced -mostly- by the local community and also by staff, students of mass communication (MCMS or MS Communication, equivalent to MCJ with specialisations) and other students of St Aloysius College and neighbouring schools and colleges.

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