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Refocusing a Product

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Refocusing a Product Refocusing a product Introduction In May 2001, at the Sony Radio Awards, Radio 2 was named Station of the Year for the second time in 3 years. This success represented a massive change in the fortunes of Radio 2, which only five or six years earlier had been seen as a station that was in decline with an image that was very negative to both journalists and that did not to upset the existing listener tance of making sure that marketable 1 million page impressions each week. potential listeners. Winning a broader audience base (55+) which is immensely loyal to programmes were fitted into the key This success has been driven by on-line In the mid 1990s, Radio 2 had lost touch with a broader the station. Indeed, Radio 2 continues slots of its schedules. For example, competitions, studio web-cams, web- to have the most loyal audience of any presenters such as Stuart Maconie and casts of artists such as Paul Weller and The American business writer Michael audience, and appeared to be ‘in a rut’ with an unclear BBC national radio station, with listeners Johnnie Walker were combined with Lisa Stansfield and programme features. Porter argues that the key to ongoing proposition and music programming that had not moved averaging more than 13 hours of listening “star” presenters, such as Jonathan Ross, business success is to win the lion’s time per week. Mark Lamarr and Steve Wright. Using forward for a number of years. Action had to be taken, share of the market. If a business has the this strategy it was possible to revitalise Refocusing the product because its group of listeners could only shrink in number biggest market share, then its rivals must the station by concentrating marketing as they grew older. have smaller shares and will be disad- A quiet revolution on the fresher programmes and also on vantaged in a number of ways eg their Introduce In moving Radio 2 forward, it was the presenters who were most likely to new presenters Action was taken, with outstanding results. By August costs per unit of output will be higher. In decided to go for a step-by-step process attract a new audience. at key times radio broadcasting, the most successful 2001, Radio 2’s audience figures had surged to 11.75 of change over time so as not to offend businesses will be the ones that are able Another key aspect of the product is the million listeners a week and Radio 2 had become the established listeners. This approach to spend money on creating the program- music played on the station: the playlist. Refresh Appeal Change most listened to radio station in the country and even contrasts strongly with that used by ming that attract listeners. Successful Radio 2’s playlist has been revamped and the to a wider target of Radio 1, which in the mid-1980s went music programming overtaken Radio 1 as the most popular radio station marketing therefore involves identifying updated. Traditionally, Radio 2’s playlist segment for radical change in order to gain a the right sort of marketing mix that will among adults. younger audience (the under 24s). At was firmly located in the 1950s and 1960s. make the firm the leader in its field. Today, Radio 2 mixes older music with This case study concentrates on analysing how this the time, Radio 1 discarded many of its Retain key elements Market segmentation is the process of existing DJs. As a result, a large pro- contemporary music, including fresh new that appeal to the established audience remarkable turnround in fortunes was achieved. dividing an overall market into several portion of its existing older audience sounds such as Coldplay and Travis. discrete segments made up of consumers turned to commercial radio. Radio 2’s audience and the press have who share common characteristics. responded to this innovation very favour- Radio 2 is required by its public ser- Radio 2’s strategy has been to go for Products can then be produced and pre- ably. Research shows that listeners want vice remit to provide for a range of evolution over time. As a result, Radio sented in an appropriate way to meet the more than just the sounds of the 1950s groups and different tastes. Radio 2 2 has retained the support of its tradi- requirements of a targeted segment. and 1960s. They like a blend, including meets this requirement by being more tional audience. It has also won praise One of the most common forms of market new sounds, and older listeners want to than just a mainstream music station. from the press and from other elements segmentation is based on demographics keep in touch with some of the music As well as the key day time shows, of the media. This represents a huge eg segmenting a market by age or by sex. that their children are listening to. The PR triumph for those who have been Radio 2 also has shows that cover a knock-on effect has been that Radio 2 managing the process of change. wide range of music from jazz to rock With radio, age is a key element of seg- has given its listeners the confidence to mentation. Market planners at Radio 2 and roll. In addition, the station also go out to record shops again to add to decided to re-target their product mix at carries some comedy and religious pro- Refreshing the product their CD collection of music. the 35+ radio listener. They needed to gramming, as well as social action cam- persuade the 35+ audience that Radio 2 It is only worth spending money on In September 2000, Radio 2 also laun- paigns. While providing music to meet was the station for them. In building a marketing a product that will attract an ched a web-site to add value to its brand the requirements of a range of tastes, new audience, it helps not to alienate audience. In the case of a radio station, the by offering an extension of its activities the programming includes a contempo- those who already tune in. The shift in product is essentially the programmes. on-line. Within 6 months of the launch, rary feel that has successfully won over emphasis needed to take place in a way Radio 2 therefore recognised the impor- Radio 2 was regularly achieving over a large audience. Glossary of Keywords Key indicators of the success of Radio 2 are those of: Reach Demographics: Aspects of population patterns and trends (ie the number of people listening to the station each week) eg age, sex, occupational distribution, geographical distribution. Second quarter of 1999: 9.85m Evolution: A gradual process of ongoing change. Second quarter of 2001: 11.75m Marketing: Identifying, anticipating and then meeting the needs This shows a growth of 19% over the and requirements of customers. two years; a fine achievement in what Marketing mix: The combination of elements, such as having is often called ‘the television age’. the right product and the right promotion and offering the product at the appropriate time and in the best possible place Market share to meet customer requirements. (the percentage of the listening public tuned in to Radio 2) PR: Public relations. of neon and moving backgrounds in importantly at the specialist press. This Targeting the market Ongoing promotion Second quarter of 1999: 12.5% television advertising. Media campaigns includes magazines such as Time Out Second quarter of 2001: 14.3% Public service remit: The charter that set up the BBC required are prepared several months ahead, and and specialist music publications such Once marketers are clear about the Having refreshed the product offering it to meet the needs of the full range of licence fee payers. So, Source: Rajar Q2, 2001 market segment at which they are provide consistent messages: Radio 2 is as NME, which provide the natural through the programming and presen- for example, Radio 1 is a music station for the youth market; aiming, they can develop targeted mar- ters, marketers followed this up with a station that offers surprises, innovation channels of communication. Research The evidence clearly shows that Radio Radio 3 is a classical music station; Radio 4 carries news, keting activities. Radio 2 has a broader a carefully thought out promotional and broad audience appeal. The consis- shows that publications such as Q 2 is in tune with its audience, a view comedy, drama, food and gardening programmes. Radio 5 popular appeal than other stations, campaign to challenge the audience’s tent identity of the media campaigns is and Mojo are particularly effective for that is supported by a series of highly carries news and sport. Radio 2 is for a broader mix of popular hence appeals to a broader segment, so designed to enhance the brand identity targeting music lovers. perception of the station. The campaign positive reviews in the national press. marketers have some clear ideas about of Radio 2 and to gain visual recognition music and popular culture, from classic and mainstream pop involves making the public aware of Importantly, Radio 2 is beginning to be how to target marketing activities to for the brand over time. In addition, the to a specialist music portfolio including folk, country and soul. the ‘big stars’ featured on the station Conclusion seen as a trend-setter rather than a sta- attract a growing audience. Marketing and also surprising the audience in brand uses the sign-off line “Radio 2 – activities are targeted principally at 35- the most listened to station in the UK”, tion that is behind the times.
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