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| Indiantelevision.com's
interview with Big FM chief operating officer Tarun Katial |
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'We
used the brand ambassador route to break through the
cluttered
FM market'
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| Posted
on 13 August 2007 |
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Reliance ADAG
has aggressive plans laid out for its radio venture Big FM.
With 29 stations already in place, Big FM has 16 more waiting
in the wings. And it has an investment outlay of Rs 4 billion.
Banking
on Abhishek Bachchan as the face of Big FM and supported by
the brand philosophy of 'Suno Sunao Life Banao,' Reliance's
radio venture is looking to firm up its position in existing
markets by rolling out four unique properties this year-end.
In
an interview with Indiantelevison.com's Nasrin Sultana,
Big FM chief operating officer Tarun Katial speaks about the
penetration of the FM stations into the urban and smaller
markets, the potential that the sector has, and the advertising
opportunities it throws open for local advertisers.
Excerpts:
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Being a new entrant in established markets, has it been a
tough journey for Big FM?
We have been extremely successful in selling the brand
across the country. Our success comes from launching in cluttered
markets like Kolkata, Mumbai, Bangalore and Chennai. We were
the first station in Bangalore to come out with local language
content.
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How
has it been in the smaller markets which opened up for private
operators in the second phase?
Big
FM is working extremely well in small towns. We have, in fact,
revolutionised media and media consumption habits in the tier
II and tier III cities. Eventually people are realising that
radio is a local medium which needs to have localised content
and marketing to make it successful.
We
have even entered troubled places like Srinagar and Guwahati
where no one thought of venturing.
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Are
the big advertisers willing to put money in the small town
stations?
For Big FM, local advertising contributes 30-40 per cent
of our entire revenue kitty. Apart from this, there are corporates
who advertise across all the 29 stations including big FMCG
and telecom players.
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Is
Delhi turning out to be a sticky wicket for the new players?
Delhi is one of our best stations. It has been getting
us good revenue. Nokia, Samsung and the big FMCGs, apart from
the local retailers, are our major advertisers in Delhi. As
far as listnership goes in Delhi, our internal research says
that we have a good amount of base in the capital city.
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What
has been the focus area for Big FM?
It is really bad to say that we are focused on some markets
and not on others. In the tier II, tier III cities it has
been our effort to gather a base for listenership. In the
next roll out phase, our focus will be about building a uniqueness
and getting the dynamics of the company to all the stations.
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Why was there a requirement to change content in your
Delhi station?
The consumer behaviour and attitude of Delhi changes very
frequently and it is very different from the other cities.
Our internal research showed that Delhi is happening and on
the move. That is where we zeroed in the '100 chartbuster'
format whereby every week the songs that the station plays
is renewed. 100 songs are selected on the basis of a survey
that covers mobile phones, internet downloads, music sales
and song requests. This way, we satisfy the need of Delhi
listeners to get something new every week. We are the first
station in the country to have introduced such content in
music.
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How is Big FM faring in regional markets like Jhansi, Bareilly,
Jalandhar, Asansol and Guwahati among others?
We have created a local brand out of the local product.
FM has created an atmosphere where local entrepreneurs have
understood these cost effective measures. There are lots of
un-organised and semi-organised workers in the Indian economy
for whom we have provided a platform.
In
the regional space, we have been beneficial to the common
people by generating job avenues. People now need not go to
cities in search of jobs in media.
Physical
hardware sales are also up. Nokia, Reliance and Samsung have
got sales high. Even FM radio is being launched on the mobile
platform.
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Is having Abhishek Bachchan, Upendra and Asin as brand ambassadors
helped you in grabbing listenership in the Hindi and southern
regions?
Today we are in a cluttered FM market in India. The easiest
way to break through the clutter is through the brand ambassador
route.
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'FM
should be allowed to have news and sports in the content
mix'
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How has the brand philosophy 'Suno Sunao Life Banao'
worked for Big FM?
The whole premise was to provide a new space. If you listen
to our station, it's about raising ones voice. Our content
and marketing campaigns affect the lives of the people. Later
this year we will introduce four new properties that will
make (banao) someone's life. As far as music goes,
we are currently playing contemporary hot music of Tempo 3.
Tempo 3 are specific songs that are up beat because as a rule
the station does not play extremely slow music.
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What do you regard as prime time for Big FM?
Our prime time is dependent on who our target audience
is at a particular time band. If it's the youth, then the
prime time band is evening. If it's the office goers, then
it's definitely in the morning. If it's women, the target
then is the afternoon time band.
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Which are the different platforms you are experimenting with
to build brand awareness?
Across mediums, internet is the best medium as it has
an extended reach. But the best thing that works for us is
on-ground activities. Big FM has been doing a good amount
of on-ground activities across the country, which has received
a good response in terms of participation.
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What
do you think about TV campaigns used by FM stations to advertise?
TVC is definitely a good way of promoting a brand. We are
also looking to launch a TVC soon. |
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What
is your argument for or against the Content Code?
Instead of getting ways to regulate us, the government
should grant us some freedom. As FM affects so much of the
consumption of people's life, we should be allowed to have
news and sports in our content mix.
The
ministry is talking about regulating FM broadcasters, when
we are already functioning with restrictions to our content.
When
they are comparing Indian FM stations with the international
radio industry, they have conveniently forgotten that we are
the only set of broadcasters who have been working on the
restricted content set up by the government.
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What
is the investment outlay for Big FM?
We are pumping in Rs 4 billion. |
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What
is the de-merger status of Big FM?
I can't comment on that. |
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How
is Big FM planning to synergise Reliance ADAG's Big Music and
Entertainment for music and home video?
Big FM gets the exclusive music and content rights from
Big Music and Entertainment, giving us the first right of refusal.
We have the option to build music properties across the medium.
We have the option to promote the division by pushing the content
through internet downloads and mobile ring tones. Big FM does
360 degree advertising for Big Music and Entertainment. |
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How
are your advertising spots being priced?
Recently we have introduced the uniform rate card system
'Aqua' for all our advertisers across the country. This is easily
available in our website. Unlike other stations, we are transparent
in our advertising rates. The advertisers know what is the rate
for the same space on the other stations. The advertisers are
aware of how we are priced in different markets.
Besides, all our stations have installed the wide orbit software. |
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With
the increasing content clutter on radio especially with Bollywood
music, how is Big FM placed?
I agree that Bollywood is all over FM stations, but it also
depends on what kind of songs you are playing at what time of
the day. How you treat the music is what differentiates the
content. We play old songs across era in different time bands. |
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You
have recently got Raju Srivastav (stand up comedian of The
Great Indian Laughter Challenge) as an RJ. In an attempt
to break away from the clutter, every FM station is now adopting
the fun element. How is this differentiated?
Fun is an important aspect of entertainment. We are here
to entertain, so what's wrong in doing it? Some are doing it
by some other means and people; we are doing it with Raju. He
is the best and the biggest clutter breaker in the industry.
Nobody wants to start the day on a sad note. We will get you
to start the day with laughter and good thoughts. Our effort
is rewarded if we can put smile in our listener's faces. |
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Do
you think the future will be in niche or mass stations?
The
FM business is in a nascent stage for me to predict the future.
It depends on what is the target, though I would recommend
that segmentation is required.
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How
are you looking to close 2007?
We have recently announced the four properties that Big
FM has planned for the various festival seasons for the later
part of the year. Starting from September, Big FM will start
rolling out these properties.
We will soon launch a show completely based on and coinciding
with the ICC World Cup Twenty20. The show will provide scrore
updates, interactive contests and interview of cricket celebrities.
During
the time of Diwali and Dusshera, Big FM will launch a shopping
contest Sabse Sasti Diwali. With the various tie-ups
that we are still working on, the contest will offer shopping
discounts from 9.27 per cent to 92.7 per cent.
Then we have a contest titled Chipak Ke Dekho by which
we will give away a car to whoever remains near the car for
the longest duration of time.
Finally, we have the biggest contest of its kind, Ek Saal
Free Maal to bear the entire expenses of the winner for
the whole year of 2008.
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