Radio Mirchi - Spicing up the Indian Air Waves

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Case Details:

Case Code : MKTG124
Case Length : 16 Pages
Period : 2000 - 2006
Pub Date : 2006
Teaching Note :Not Available
Organization : -
Industry : FM Radio
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Radio Mirchi was operated by Entertainment Network India Limited (ENIL). The promoters of ENIL were Bennett, Coleman & Co. Limited (BCCL) and Times Infotainment Media Limited (TIML), a wholly-owned subsidiary of BCCL. BCCL, one of the largest media houses in India, had several leading publications to its credit.

These included The Times of India, the largest circulated English newspaper in the world and The Economic Times, the largest circulated business daily in India.

BCCL also owned two regional language newspapers - Navbharat Times, a Hindi daily, and Maharashtra times, a Marathi daily.

It also published magazines like Filmfare - a widely read film magazine, and Femina - a leading women's magazine. Its digital venture, Times Internet Ltd., managed Indiatimes.com - a portal which offered a wide range of information and entertainment.

The group also had other interests in the media and entertainment sector like Planet M -a chain of music stores, Times Music - a portal selling Indian music online, Times Multimedia -a portal selling multimedia items like games, infotainment and reference titles, Times Now- an English news television channel and Zoom -an entertainment television channel.

Times Innovative Media Private Limited (TIMPL), a wholly-owned subsidiary of ENIL, was established on October 26, 2005. TIMPL was created to manage the affairs of 360 Degrees and Times OOH Media, which initially were directly under TIML. While 360 degrees was an event management company which organized events and provided brand promotion solutions to several corporate entities, Times OOH Media was one of the few organized companies in the Indian out-of-home advertising industry. It offered advertising space and solutions to its clients on billboards, bus shelters, handbills, banners, and railings. Radio Mirchi, which accounted for 73% of the company's revenues in FY 2005, was the most important constituent of ENIL.

The popular FM radio station started operations in October 2001. However, BCCL's association with FM radio started way back in 1993 when the GoI offered time slots on AIR⁹-FM- the only FM radio channel in India at that time - for transmissions by private FM radio companies in the cities of Mumbai, Delhi, Kolkata, and Goa on payment of license fees (Refer Exhibit I for some interesting facts about radio in India)...

Excerpts >>

9] All India Radio (AIR) is the government owned radio network having 215 broadcasting centers covering almost 100% of the India's population.