Business Plan for Radio Station
Category : Ipod Touch Cases, Proposed Business Plan_
Business Plan for Radio Station
The radio industry in the Middle East is composed of public service broadcasters and commercial broadcasters and with FM as the primary radiowave. Today, radio broadcasting is a thriving industry with 346 FM radio stations in total. Private FM radios constitute 48% of this total and the rest are government-owned. Liberalisation in the Arab region is reported to be the reason for the growing industry. As it is linked with economic reasons, the need to broadcast in multi-language because of the growing presence of expatriates enhances the number of radio stations (Sennitt, 2009).
Further, there are also radio stations that are broadcasting live on the Internet. Stream types differ depending on the requirement of the radio station. Most of these radio stations are offering rai ballads and pop music, 24/7 (Sennitt, 2009).
- Provide broadcasting services in the Middle East in the field of entertainment
- Broadcast programmes in line with Islamic ideology, national unity and principles of democracy
- Promote right to communicate and encourage creative expression
- Provide right to access to various groups including minority and marginalised
Programmes relating to music will make up the basic programme but will also cater to religious, news and current affair, women and children and youth-oriented programmes. Music continues to remain to be a dominant feature of Middle East radio stations as it involves the diversity of cultures through music.
The need for radio station
Faten Bader, Arab Advisors senior research analyst, noted that, “State-owned radio stations in the Arab World still outnumber private radio stations, although the number of private ones is growing and approaching the number of state-owned radio stations” (Sennitt, 2009). As such, there is an opportunity to establish commercial radio station in the Middle East.
Basically, anyone who owns a radio or have a computer and Internet access at home can listen to the radio traditionally or virtually. Baby boomers tend to listen more on the former while Generations X and Y listens on the latter. On Internet radio, downloads of music on mobile phones and iPods are possible.
The radio station should first cater to the Middle East market prior to extending services on other areas outside the region.
Marketing Strategies and Implementation
The business will be driven by press releases, expo/exhibit participation and word of mouth. The target markets are Generations X and Y and secondarily the baby boomers. Fresh music from pop to cultural to ballads, the radio station should offer a wide array of musical inspiration. The radio station will be positioned as a full-pledged entertainment radio station that caters to the diverse musicality of the Middle East. When it comes to the distribution strategy, the radio will be the key distribution channel which is planned streamed online.
Promotion strategies depend on the requirement of the target market. Initiatives, nonetheless, will center on creating awareness of the existence of the radio station. Conventional advertising will be sought to increase brand recognition. Classified newspapers will be used four times a month for twelve months. Press releases will be also implemented, focusing on the strength of the radio station and how it would succeed the competition. Sponsoring musical events especially on Universities in the Middle East could be also strategic for the radio station. This is a low-cost way of increasing awareness while also building goodwill to the community.
A streamlining website will be created for the radio station so that it can also compete in the Internet radio industry. Basic information about the music will be provided as well as the lyrics and downloads page. Traffic and brand exposure could be achieved using this medium. The radio stations logo will be also displayed for one calendar year on appropriate websites including the music authority in the Middle East and concert pages.
Evaluation and Control Strategies
Objectives will be established for the radio station so that actual performance can be measured against them. Each subsequent year, new objectives will be set for these benchmarks and actual performance will be then measured against them. In terms of promotion, it will be obtained from the listeners the information on how and where they learn about the radio station so that the effectiveness of promotion strategies could be evaluated.
Each subsequent year’s budget should adjust spending accordingly. There will be developmental and general operating expenses for the radio station. Funding will be achieved through donors. Advertising rates will be initially offered at low prices to build up the advertising relationship.
Sennitt, A 2009, ‘Middle East FM radio broadcasting services boom,’ Media Network.