By: Boris Borisenko, Artem Login, Dajana Kostic and Ekaterina Naboychenko.
For our coursework we have chosen Kiss 100 — radio station which specializes in rhythmic and dance music. It is one of the most popular and successful radio stations in London, reaching around 2 million listeners per week. However, it also has quite strong rivals, especially Capital FM in the target market. Hence, we have to explore new product for Kiss FM, to help gain competitive advantage and attract new listeners. Even though it sounds obvious, a detailed analysis is necessary prior to it as it is extremely important not to lose existing customers and existing advantages, while launching something new. Moreover, it is also essential to know the market and the competitors prior to any innovaton in order to predict the results of it.
To begin with, we would like to highlight key facts about Kiss 100:
Kiss 100 FM mostly targets youth population of ages 15-24 and 15-34, but continuously look for a new way of targeting more audience and offering innovative. A detailed analysis of the relevant segment is explained below.
• The UK copyright law covering the intellectual property and defamation law. • Data protection law.
• E-marketing law.
• E-commerce law -to ensure that electronic contracts are legally binding.
• Corporate taxation decrease, may result in higher profit for radio • High Youth unemployment in the UK (approx. 17-20 year old), Kissfm target audience - concern for advertisers • Economic down turn affecting business spend on advertisement revenues • Weak £ drive up costs of innovative technologies and equipment
• Most radio listeners are looking attracted to popular music rather than content quality • Personal taste are diverse
• Fresh music release, otherwise “unfashionable”
• Changing demography affecting the level of potential listeners • Level of young population, 15+, increase in potential market share. • More educated population, preference for news, politics and sophisticated expectation, rather than simply music.
• Availability of online Radio allows wider listeners reach, nationally and internationally at low costs. • Higher quality of music via radio waves increases potential clients.
Trends in Media and Radio
The media industry has changed dramatically with the introduction of new technologies. It is no longer possible to concentrate on single market segmentation for radio stations and avoid the importance of internet and television. Looking back at the very beginning of radio industry in the UK, it all started in the early 1920's with just one small radio station (BBC), but it has all changed drastically since than. Now, majority of UK's radio stations are moving towards Internet and TV, having its' own web sites with online translations and TV channels. More and more people listen to radio on their mobile phones and office computers.
WheatStone and Althea Research of radio tech people survey:
• As we can see from the graph, majority believe that Internet radio will play a bigger part in the future of radio. • Another research of WheatStone and Althea shows that there was a big increase in the number of people using Internet radio and wireless Internet penetration in the last 5 years and there’s a forecast which states that this number will keep on rising in the future. (Source:http://www.radiostreamingnews.com/)
• The research by Edison, illustrates that media usage among teens and young adults is shifting as many youngsters have given up their newspapers, talking on the phone and listening to the radio, due to internet which has replaced many of these activities....