SCHOOL OF BUSINESS GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Hamzah Bustami Student ID number: 17677211

Student name: Albert Young Student ID number: 18146745

Student name: Emad Abdallah Student ID number: 17239686

Student name: Justin Armostrong Student ID number: 18016505

Student name: Djordje Bratic Student ID number: 18026102

Student name: Ali Al Fadhly Student ID number: 17785929

UNIT AND TUTORIAL DETAILS

Unit name: Marketing Planning Project Unit number: 200096 Tutorial/Lecture: Wed 1PM Bankstown Class day and time: Wed 1PM Lecturer or Tutor name: Dr Ned Doyle

ASSIGNMENT DETAILS

Title: Final Report Wednesday 19 Length: 79 Pages Due date: Week 14 Date submitted: October 2016 Home campus (where you are enrolled): Bankstown

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2

MARKETING PLANNING PROJECT 200096

FINAL

REPORT

PREPARED FOR MR N. DOYLE UNIT COORDINATOR AND MACARTHUR

COMMUNITY RADIO

3 1.0 Executive Summary

100.3 FM Macarthur Community Radio (2MCR) is a volunteer based community radio station situated in the Macarthur Local Government Area.

2MCR offers a range of services to the Macarthur region, specifically they are the main local voice on the radio, and they ultimately promote the Macarthur region through the broadcasting of information, news, community services and activities, entertainment and all aspects of community life1.

The aim of this marketing plan is to assist 2MCR in identifying their key issues and through extensive research, finding the most optimal solutions through the recommendation of the right marketing strategies. This marketing plan hopes to ultimately achieve greater brand awareness amongst a younger target market and will recommend many approaches in order to achieve this result.

The key issues that 2MCR currently faces that this marketing plan will address includes their web presence whether it be website or social medias, current station shows/segments, sponsorship propositions and ultimately arrangements to enhance brand awareness in Macarthur.

The strategies this marketing plan will recommend suggest the implementation of merchandise, sponsorships, participating in radio events, exhibitions or trade shows. It will recommend concentrated efforts into social media and overall web presence due to the advantage it holds in today’s

1 2MCR - About 2MCR

4 market and it will implement internal or external development and training in order to satiate the franchise with a host program.

5 Table of Contents Page no. 1.0 Executive Summary ...... 4 2.0 Client Overview ...... 8 2.1 Products/Service Offerings ...... 9 2.2 Financial Position ...... 9 3.0 Current Marketing Situation ...... 11 3.1 Industry Analysis ...... 11 3.2 Market Analysis ...... 12 3.3 Competitor Analysis ...... 13 3.4 Customer Analysis ...... 14 3.5 Client’s Position...... 16 4.0 Situational Analysis ...... 18 4.1 PEST Analysis ...... 18 4.11 Political ...... 18 4.12 Economic ...... 19 4.13 Social ...... 20 4.14 Technological ...... 22 4.2 SWOT Analysis ...... 24 4.21 Strengths ...... 25 4.22 Weaknesses ...... 26 4.23 Opportunities ...... 27 4.24 Threats ...... 28 5.0 Identification of Key Issues ...... 29 5.1 Funds & Financial ...... 29 5.2 Online streaming/podcasting and emerging technologies...... 31 5.3 Target Market & Strategy ...... 32 6.0 Objectives ...... 35 7.0 Marketing Strategies and Objectives ...... 36 7.01 Improve web presence and expand social networking throughadvertisement and engagement through social media platforms...... 36 7.02 Improve and launch new services (Franchise hosts/Radio personalities)...... 42 7.03 Achieve a new target market through developing an advertising program to create momentum for a new program schedule and target market...... 45 7.04 Maintain and improve customer relationships...... 49 7.05 Build brand awareness ...... 54

6 8.0 Target Market ...... 57 9.0 Conclusion ...... 61 10.0 Appendices ...... 64 11.0 Bibliography ...... 80

7 2.0 Client Overview

Macarthur Community Radio, is a radio station based and broadcasting to the

Macarthur region2:

• Established, 22 August 1989.

• Located, Campbelltown RSL Club (Carbery Lane, Campbelltown

NSW).

• Broadcasting, 24 hours a day, 7 days a week.

• Broadcast reach: Campbelltown, Camden and Wollondilly Shire.

Initially 2MCR broadcasted on 88.0 FM and were only allowed a small window of 28 days of airtime per year due to a licensing agreement, similarly 2MCR lacked equipment and facilities often having to borrow radio gear and make due with temporary studios. In November of 1993 2MCR relocated to a permanent location, a house in Ingleburn, affectionately named the Radio

House.

Nowadays Macarthur Community Radio is a community orientated organisation run by volunteers and open to all members of the community,

2MCR even extends to those living outside of the region that tune in through various media channels.

Currently located within Campbelltown RSL Club (Carbery Lane,

Campbelltown NSW) and under the guidance of President Rodney Simpson the community radio station is undergoing a period of substantial change in an

2 Macarthur Community Radio, 100.3 FM – Macarthur Community Radio.

8 attempt to reinvigorate the brand and establish an adaptable brand position that is centered on the notion of community3.

2.1 Products/Service Offerings

Macarthur Community Radio provides 24 hours a day, 7 days a week broadcast, with Breakfast (6.00am - 9.00am) and Drive Time (4.00pm -

7.00pm) being most popular. Whilst Macarthur Community Radio currently does very little in actively positioning their brand, they do have success segmenting market subgroups by targeting groups with similar needs, this is evident within their programs targeted to specific groups within the diverse community of Macarthur (e.g. 7pm to 9pm Tongan with Issi, 7pm Spanish with

Pedro, 8pm Chinese with Laura Lee, 7pm till 8pm Cambodian Hour with

Nairand Kay, 8pm to 9pm Island of Samoa with Paul Tooala and friends etc.) 4 . Whilst this segmentation is beneficial in more closely meeting the needs of the market, additional evaluation of market segments is necessary in order to understand the individual segment characteristics, profit potential, competitive situation and cost structure5.

2.2 Financial Position

1. Viability

Although Macarthur Community Radio is able to generate funding through sponsorships ($53905.43 - 01 July 2015 - 30 June 2016), memberships

($2613.19 - 01 July 2015 - 30 June 2016) and donations ($6000 - 01 July

2015 - 30 June 2016) to name a few ultimately the radio station is barely

3 Ibid. 4 Ibid. 5 Garlin, Mariyani-Squire and Spanjaard, Enterprise Innovation and Markets.

9 sustainable, operating at either minimal profit/break-even or at a some stages

(such as the 01 April 2016- 30 June 2016 period) a loss6.

2. Profitability

During the period of 01 July 2015 – 30 June 2016 net profit was at

$35,782.27 7 , this leaves little wriggle room for marketing activities in an organisation that desperately needs a fundamental change and refinement of current marketing strategy and operations.

6 Fitzpatrick, MCR Financial Report 2016. 7 Ibid.

10 3.0 Current Marketing Situation

3.1 Industry Analysis

The number of community radio listeners has slowly increased at an annual growth rate of 1.4% since 2011, however, forecasts predicts that the industry will suffer a loss of 0.4% of its listeners annually8. The industry has been identified to be entering its declining stage in the business life cycle due to the innovation of technology with the external competition from unfamiliar music streaming companies such as Spotify 9 . Furthermore, the utilization of podcasts and other outlets such as digital radio have become the largest technological advancements in the broadcasting industry within the last 5 years10. This is a major problem for 2MCR as they target an older audience with ageing program hosts and lack an online presence. These trends and forecasts indicate the declining nature of the industry with the emergence of technologically superior services that have made it more convenient for the consumer to tune into their radio programs and listen to their music. The radio broadcasting industry also faces difficulty with the government budget cuts, which will see the main revenue generator for community radio broadcasters be cut under the new budget plan11.

This presents a challenge for 2MCR is identifying one of their key issues to contain and increase the frequency of their radio listeners. The strategic implementation that the radio company should focus on is to develop an innovative marketing strategy that will attract and maintain listeners, where

8 Little, Radio Broadcasting in Australia, 3. 9 Ibid., 10. 10 Ibid., 4. 11 Ibid., 8.

11 there has been a shift to more innovative service providers. This is due to a number of reasons listed above including; the nature of the declining industry, the innovation and development of more convenient service offerings and an ageing target market.

3.2 Market Analysis

2MCR entertains approximately 40,000 listeners weekly and over 100,000 listeners on a monthly basis, this accumulates to 3% of the current listeners of community radio broadcasting market as demonstrated in Appendix 1 12 .

Although the percentage of community radio listeners has increased, however, 2MCR station only possesses a minor market share within the industry. As identified by McNair Ingenuity Research and in Appendix 2,

2MCR’s major competitors include Nova 969 who contain 31% of the market and smooth FM 95.3 who occupy 30% of the market13.

2MCR possesses plenty of experience within radio broadcasting. The station has been on air since 198914, however, technology innovations and online presence and exposure from market leaders within the industry has elevated them from2MCR. The lack of online presence and innovation from 2MCR has lingered the progress and potential of the organisation. To achieve the aims and objectives that have been set, 2MCR should look to implement strategies to solve the key issues that have been identified.

12 McNair Ingenuity Research, The National Listener Survey, 2. 13 Ibid., 3. 14 Macarthur Community Radio, About 2MCR.

12 3.3 Competitor Analysis

2MCR’s role as Campbelltown/Macarthur’s community radio presence has a few rivals in terms of local news, public service announcements and other factors exclusively relevant to the Macarthur region. However, when assessing broader competition with other surrounding stations with often- higher prominence and resources than 2MCR, an entire ecosystem begins to form.

When analysing the data produced via surveying the Macarthur public,

Appendix 9 presents the results that were found for respondent radio station preference

As can be discerned, the larger commercial-oriented Sydney-based radio stations have a higher listener base in the region than smaller, community- based stations. Due to their resources, brand strength and higher market share and value, these stations may be considered 2MCR’s most formidable competitors.

Because competing with larger stations is not feasible, 2MCR competes locally, and centres its content on community-based themes. Appendix 10 presents a tabulation of 2MCR’s direct competition, judged in terms of locale and similar criteria

As indicated, many of these competitors have the following proficiencies or points of parity over 2MCR:

13 • Better websites.

• Better web infrastructure & content feeds.

• Better social media presences.

In order for 2MCR to capture greater market share amongst listeners in the region, it will need to counteract the points of parity’s realized in this competitor analysis amongst its local competition. The objectives and strategy segment of this report will explore the methods of achieving this in greater detail.

3.4 Customer Analysis

Through the utilization of primary research, McNair Ingenuity Research has outlined the potential audience of 2MCR. The organisation conducted a study that with reference to Appendix 3 stated that a majority of Macarthur community listeners comes from Inner South West & Outer West Sydney accruing 50% of the listeners and South West Sydney & Sutherland making up for 48% of the listeners15. Understanding our target market determines the service offering that should be accessible by 2MCR, these statistics allow the organisation to do so and to develop further segmentation through demographic and psychographic characteristics of their customers. This may allow for the organisation to implement strategic marketing campaigns that are most effective with reference to the identification of these demographic and psychographic characteristics. Appendix 5 outlines that a majority of listeners are males accumulating to 69% and approximately 66% of these males possessed the same characteristic of being employed full-time16. With

15 McNair Ingenuity Research, The National Listener survey, 6 16 Ibid., 4.

14 this information, 2MCR can determine who their main consumers are and how they could change their internal system to reach more women and other occupational traits.

Appendix 3 identifies that 2MCR has attracted 43% Christian listeners, followed up by listeners who adhere to other religions accumulating to 24%17.

By determining the religious following of their customers, 2MCR understands the context in which its content may be censored and could be viewed as biased or offensive. However, this also presents an opportunity for the organisation to possibly develop more diverse service offerings and religion specific programs. Appendix 4 outlines that a majority of listeners are of

English speaking backgrounds and accumulate to 65% of all listeners18 and

Appendix 3 indicates that 98% of 2MCR listeners do not have reading difficulty19. With this knowledge, 2MCR can determine whether they have an opportunity for expansion of potential listeners by possibly offering more diverse programs to engage listeners who do not have an English speaking background.

Appendix 5 identifies that the current age group of 2MCR listeners is 25-39 year olds making up 44% of all listeners followed up by 15-24 year olds making up for 31% of overall listeners, these are the organisations two largest age groups20. Understanding the age group of listeners can help 2MCR target their audience with appropriate marketing implications. Appendix 5 identifies the marital status of all listeners and it shows that married/partner with no children making up for 30%, followed up by married/ partner with children at

17 Ibid., 6 18 Ibid., 5 19 Ibid., 6. 20 Ibid., 4.

15 home accumulating to 25% and finally followed by single/ never married accruing 24% of all listeners21. Marital status has been determined to be an important factor because it allows for 2MCR to develop a clear understanding on what/how they should develop segments to fit both parents and children.

Appendix 5 states that the occupation pattern of 2MCR listeners are technical, skilled, semi-skilled or manual with 31% of all listeners followed up by professional, business manager or executive with 25% 22 . Furthermore in

Appendix 4, outlines the highest level of education of their listeners with primary, secondary or high school harnessing the broadest reach of 47%23.

Both occupation and highest level of education can provide an opportunity for

2MCR to allocate proper schedule according to working/ school hours.

3.5 Client’s Position

2MCR station is strategically located in the Macarthur region and is the first in its area. In 2016, the radio station recorded a net profit of $35,78224. This places the organisation in a positive position with a significant amount of expenditure being spent on advertising and equipment purchases with a total of $8794 spent25. These figures are in sync with the companies set objectives, which they identified in the meeting that took place. Their objectives include:

• Supporting the development of community broadcasting services in

Campbelltown, Camden and Wollondilly26.

21 Ibid., 4. 22 Ibid., 4. 23 Ibid., 5. 24 Fitzpatrick, MCR Financial Report 2016, 4. 25 Ibid., 3. 26 Macarthur Community Radio, About 2MCR.

16 • Supporting the principle of local autonomy in the control of community

broadcasting services27.

• Promote the principles of independence in programming, diversity of

programming, and access to broadcasting facilities, diversity of opinion

and views, which enable the fullest expression of the aspirations and

culture of the Australian people and the Macarthur region in

particular28.

• Provide a range of services to members and the community we serve,

including information, technical, programming and training services29.

The goals set out by the organisation are important however do not address the issues that seem to be concerning the organisation the most. Although they address the importance of diversity and constantly updating their community with information, they have failed to address the issues that will allow for them to compete in the market including the internet exposure, technological developments and a redefinition of the company’s image and target audience.

27 Ibid. 28 Ibid. 29 Ibid.

17 4.0 Situational Analysis

4.1 PEST Analysis

Several macro-environmental factors can and will affect the overall decisions a organisation has to make. This includes 2MCR Macarthur and the

Community Radio sector. Tax changes, funding, content restrictions, government policy, technological advancements and several other macro- environment factors are all examples of macro change. To help analyse these factors we will use the PEST model, which highlights the points of interest in their respective classifications. (Political, Economic, Societal & Technological)

4.11 Political

The 2MCR political factors are:

• The federal budget will see a decrease in funding support for the sector

of $1.4 million p.a. This is funding that keeps community radio stations

broadcasting on digital in 5 capital cities.30

• The CBAA (Community Broadcasting Association of Australia) has

launched a campaign to keep the Community in Your Radio, seeking

signatures on a petition calling on both the Coalition and Labour to

restore funding to keep community radio on digital.31

• Growing community in the Macarthur region and the standards to meet

by the board puts the ability for 2MCR to renew their licence at risk.32

• 2MCR is bound by several policies as shown in their Articles of

Association. This may affect their ability to change their identity or alter

30 Macarthur Community Radio, 100.3 FM – Macarthur Community Radio 31 Ibid. 32 Macarthur Community Radio Updates, 100.3 FM – Macarthur Community Radio

18 their content in certain ways. Upholding these standards may be a

drawback when considering change in content.

4.12 Economic

Economic change can have a major impact on 2MCR’. These include interest rates, taxation changes, economic growth, inflation and exchange rates.

• Through their financial report as of July 2016, 2MCR has been

negative. Their profit and loss statement shows a net profit of -

$783.20.33

• 2MCR requires a joining fee of $5.50, and membership costs range

from concession members at $27.00 to a full member at $44.00 and

finally a group deal of up to 5 people at $110.00.34 Prices may affect

the attractiveness of the organisation. The financial report shows that

2MCR doesn’t even make much profit from membership fees.

• A dedicated team of volunteer announcers, administration and

technical staff runs 2MCR. This removes the expense of workers.

• The ever-growing technologies in the radio/communications industry

will display larger expenses that 2MCR may have to incur.

• The current economic climate has forced most organisations to be

selective in their selection of sponsorship projects.35

• Competition for the corporate dollar by non-profit organisations has

increased. 2MCR will need to heavily research the organisations they

choose to approach.36

33 Macarthur Community Radio Financial Report, 100.3 FM – Macarthur Community Radio 34 Macarthur Community Radio Get Involved, 100.3 FM – Macarthur Community Radio 35 Marketing Community Radio, Community Broadcasting Foundation

19 • The Community Radio Census (2013) states that sponsorship income

is the most effective. 37 It stands at 39.8% of the total income

community radio makes.

4.13 Social

Social factors greatly impact 2MCR, as it’s a community radio station that’s objective is to support the development of and the ongoing provision

Community Broadcasting services within Campbelltown, Camden &

Wollondilly. With their aim to provide a range of services to members and the community 2MCR serves, including information, technical, programming and training services 38 . Customer demographics, cultural limitations, lifestyle attitude and education must all be taken into account when understanding how social factors shape 2MCR.

• Currently 2MCR’s customers are mostly aged. Their intention is to

draw customers from younger age group, which according to the

census, Macarthur’s average age is getting younger39. The addition of

new areas in the Macarthur region and the influx of diverse ethnicities

moving into these areas will demand a change in business delivery.

• With reference to Appendix 5, the majority of members are 25-39,

which accumulates for 44% of the overall audience.

• According to Appendix 5, the majority of listeners are tradespeople at

33%.

36 Ibid. 37 Community Broadcasting Association of Australia, Community Radio Broadcasting Census, 12. 38 Macarthur Community Radio, 100.3 FM – Macarthur Community Radio 39 Australian Bureau of Statistics, Macarthur Region

20 • They are located at Campbelltown RSL Club, therefore awareness and

ease of participation along with the ability to attract new customers

using the RSL Club facility enables heightened interaction.

• Community Radio Census shows coloration between non-Australian

music played and audience participation. 40 Playing non-Australian

music can draw a younger audience, which is what 2MCR wants.

• People need to go out of their way to listen to community radio, it isn’t

doesn’t meet the top of mind awareness

• The nature of community radio invites challenge to the committee, its

members and especially the leaders. Constant reviewing of the

organisation’s direction is necessary. Especially if the staff throughout

the organisation will consider trends in the industry and implement

them.

• The nature of community radio is community based. An increase in the

amount sponsored events need to be considered, effective use of such

events can draw in a strengthened communal brand image that more

will be willing to take part of.

• Some music genres and some current content needs to be re-

evaluated. CBAA Census shows that Jazz is a dying genre in Australia.

Along with metal, classical, world, ethnic, metal and non-specified

genres, this shows that 2MCR must consider getting rid of, or lessening

the amount of broadcasting these genres receive.41

40 Community Broadcasting Association of Australia, Community Radio Broadcasting Census 27. 41 Ibid., 31.

21 • Nine in ten (91%) of stations had a website. The growing social media

and online activity requires an organisation such as 2MCR to invest

and strengthen their online presence through social media. Almost

everyone has a Facebook, interaction and traffic can increase and

improve if great efforts were to be invested into the use of social

media.42

4.14 Technological

Technological factors affect how 2MCR delivers its content to the marketplace. Key factors will include information and communication, telecommunication, lifecycle of technology, accessibility, research funding and rate of technological changes.

We see that in relation to 2MCR, the major concerns would concern technology, the impacts could be:

• The rise of internet radio can cause concern for the draw of younger

customers.

• Modern equipment and highly technical transmitters are used. Upon

visiting 2MCR, it was evident that the equipment used was dated.

• Rise of downloadable podcasts and downloadable segments increases

the amount of competition and introduces more platforms 2MCR may

need to consider establishing themselves in.

• Modern cars have AUX inputs; therefore use of mp3 has heightened

substantially.

• Web-design and social media presence is key to modern success.

42 Community Broadcasting Association of Australia, Community Radio Broadcasting Census, 62.

22 • Listening to their broadcast, they had very noticeable static.

23 4.2 SWOT Analysis

Strengths Weaknesses • Diverse audience • Community unawareness

• Variety in programs • Heavy reliance on government

• Ability to unite community funding and community

• External broadcasting available sponsorship

• Membership incentives • Geographic barriers

• Outdated technology

Opportunities Threats

• Opportunities for social gain. • Federal budget cuts

• Rise in younger regional • Other sources of entertainment

demographics. • Increasing competitor market

• Increase in radio technology share.

24 4.21 Strengths

Diverse audiences

2MCR holds a wide Audience diversity through its dedicated time slots for community offered programs, towards specific Nationality groups, Music genre and News. Such include “Filipino with Eve Sullivan”, “Music from the movies with Paul Helmsley” and “Cambodian Hour”.43

Variety in programs

The offering of multiple forms of programs allows for the attraction and retention of listeners within specific segments of the community e.g. Tongan listeners to “Tongan with Issi”44

Ability to unite community

Community Radio possesses the ability to tie a community together through e.g. crowd funding for disaster relief, hosting of local events such as the

Camden Show45, which in light benefits the image of the radio station greatly.

External broadcasting available

Ownership of Radio Van allows for external broadcasting which highly assists

2MCR as it opens doors for further investment by sponsors that may be interested in external broadcasting segments e.g. segment on food festival, thus sponsors of food will advertise during allocated time period.46

Membership incentives

Strong membership incentive such as involvement with the radio station, development and training for volunteers towards broadcasting, brings forward funds and volunteers to operate the station.

43 Macarthur Community Radio, Weekday Shows. 44 Macarthur Community Radio, Weekday Shows. 45 Macarthur Community Radio, May 2016 Update. 46 Macarthur Community Radio, May 2016 Update.

25 4.22 Weaknesses

Community unawareness

With a monthly Audience Reach of less than 7% of the 15+ population, and the under shining of the station by the popular 96.9, 95.3, 106.5 stations it is difficult for the station to keep community awareness through listening without doing external advertisement.47

Heavy Reliance on community funding and sponsorship

Due to ACMA guidelines community radio stations are restricted to funding and rely heavily on Donations, membership fees and community funding, however 2MCR has been in a hole not meeting most budgets or breaking even, being stated as have “begged and borrowed whatever they could grab their hands on to keep listeners”.48

Geographic Barriers

From the name to operating Region 2MCR slows its expansion, as its geographical location weakens signals transmitted through further Sydney, and due to the context of the station may be unappealing towards the greater community that may not be part of the Macarthur Region. Although there have been several advancements to improve signal as stated in the July 2015

Report49.

Outdated technology

As collected from a primary source, outdated technology within the station limits the quality and effectiveness of their production, with much of its

47 Appendix 3. 48 Cains, Daily Telegraph, Macarthur region community radio station celebrates its 25th anniversary. 49 2MCR, Annual General meeting report 2015.

26 equipment being borrowed or donated towards them. ‘’The station was built on borrowed equipment”50.

4.23 Opportunities

Opportunities for social gain

The rise of listeners within the community gives place for social gain, in which community radio stations may target minority groups and give them a voice such as the house bound, and disabled, whom are limited to their input within local discussions and events51.

Rise in younger Regional Demographic

The rise in a younger demographic within the Macarthur region as stated in census, places pressure upon the station to change in terms of its offering as

2MCR has been generally targeted at the 25-39+ age group as based on its membership52.

Increases in Radio technology

The introduction of Digital radio 5 years ago brought vast and further development towards radio entertainment 53 , further opportunities and developments in online radio broadcasting and streaming technologies are rising and giving way to platforms such as podcasts that may be employed by

2MCR.

50 Cains, Daily Telegraph, Macarthur region community radio station celebrates its 25th anniversary. 51 Ofcom, Small stations bring benefits for local communities, Nov 2010. 52 Australian Bureau of Statistics, Macarthur Region. 53 IBISWorld, Radio Broadcasting in Australia: Market research report, 2015.

27 4.24 Threats

Federal Budget Cuts

Federal budget cuts of $1.4 million per annum, 54emplace a threat towards the community radio station industry and in particular 2MCR as it is currently struggling to break even, with a net profit of -$783.20 in 201655.

Other sources of entertainment

Community Radio generally does not meet awareness in retrospect to entertainment sources, with the presence of television, online pod casts and

Mp3 music undermining community radio in a person’s top of mind awareness.

Increasing competitor Market share

The Radio broadcasting industry within Australia is seeing an annual growth rate of 1.4%56, presenting a developing climate for radio stations, with high end channels and popular community radio stations like FBI 94.5 holding such a strong market share, the ability for 2MCR in retaining any of it may be difficult.57

54 Macarthur Community Radio, 100.3 FM – Macarthur Community Radio 55 Macarthur Community Radio Financial Report, 100.3 FM – Macarthur Community Radio 56 IBISWorld, Radio Broadcasting in Australia: Market research report, 2015 57 Appendix 8

28 5.0 Identification of Key Issues

From the first client meeting, many concerns and key issues facing the community radio station were brought to light. These can be narrowed down to:

1. Funds/Financial.

2. Podcasting and emerging information consumption technologies.

3. Target market & strategy.

5.1 Funds & Financial

2MCR as well as all community radio stations across Australia are currently facing the implications of the Federal budget-decreasing sector funding by a margin of $1.4 million per year58. This funding helps to support “community radio stations broadcasting on digital in 5 capital cities”59 – 2MCR included and at risk.

The Chief Executive Officer of Community Broadcasting Association of

Australia, Jon Bisset, stated that "for over 40 years, Australian Governments have been committed to community radio standing alongside commercial and national radio services on available free-to-air broadcast platforms and now, this is threatened"60.

The Community Broadcasting Foundation is the distributor of the Department of Communications funding support for the radiobroadcasting sector. With

58 Macarthur Community Radio, 100.3 FM – Macarthur Community Radio 59 Henry, Keep Community Radio Campaign. 60 Ibid.

29 community radio funding being cut via the Federal Budget, these grants may become lesser in sum and their subsequent impact to the prosperity of the station.

According to 2MCR’s annual 2016 financial report, the station received majority of its income from sponsorship sales at $53,905.43, and grants represented the second largest portion of funding with $29,126.00 accounted for61. The station has proven it can sustain itself, however the funding cuts may lessen the degree to which it can and may force a new budget.

With all of this considered, 2MCR may need to reevaluate their revenue model and consider the introduction of new or the development of existing revenue streams in the interest of securing their assets and financial standing in such a case that the Federal Budget negates their profits greatly. With sponsorships largely opportunistic and broadcasted ads limited to a 5 minute window per hour, this may prove a challenge. One such new revenue stream could stem from ad placements on online streaming/podcasting, which may not carry ad time limitations.

61 Fitzpatrick, MCR Financial Report 2016.

30 5.2 Online streaming/podcasting and emerging technologies Perhaps the most obvious key issue is that 2MCR does not currently engage in podcasting, but does engage in live online radio streaming. While the latter move is opportune for reaching online listeners, the lack of podcasting may neglect the market of convenience-oriented, technology-savvy or mobile consumers. If left unaddressed, other Sydney competitors moving in before

2MCR can depreciate the potential for expansion into these markets. The lack of podcasting additionally confines perceived usage situations/conditions.

The convenience of listening to podcasted talk radio anytime and anywhere has the potential to garner a larger audience for the station and the digital podcast space is still seeing remarkable growth signaling that it is a trend which may last62. 2MCR may already possess the resources needed to begin podcasting. The only addition needed may be a server to remotely upload and host the podcast files for listeners.

In beginning to podcast, 2MCR may also wish to consider upgrading their digital brand, such as:

• Website update and modernisation. 2MCR’s website is the primary

online impression of 2MCR and may influence the perceived credibility

and performance of the brand. A poor website imparts poor 2MCR

brand imagery to consumers. Whilst the website does perform well in

terms of basic functionality, its aesthetic needs modern upheaval and

pales in comparison to a neighbouring radio station, C91.3FM.

62 Stine, Radio World,“ 5.

31 • Refining and structuring 2MCR’s social media operations and

establishing a presence. This is an effective tool the station could

utilize to engage with their community greater.

Considering these changes may acclimate the station to the new standard of technologies and consumer trends, especially with younger new-age consumers. These are suggested due to a fellow Campbelltown/Macarthur region station, C91.3 FM.

5.3 Target Market & Strategy

An additional concern raised during the initial client meeting was the fact that

2MCR’s target market is largely geographically segmented, i.e. all listeners in the Campbelltown and Macarthur region. While 2MCR is a community-based radio in essence, this broad and undetermined geographic segmentation may prove a barrier when pursuing one of the station managers expressed needs

– a 5-year (marketing) plan.

A geographic segment base may be too broad and the range of potential demographic, psychographic and behavioural segments within this region may encompass too many different interests to effectively and equally address. It is for this reason that a geographic segmentation base should be used in conjunction with another. The salience and resonance of the brand may suffer as a result of delivering general, non-target-specified content to appease the listeners on the criteria of geography alone.

32 Based on The National Listener Survey and Appendices 3-5, 2MCR’s largest

July 2016 audiences in Sydney consisted of63:

• 75% 15-39 year olds.

• 70% male listeners.

• 73% some form of married/partner/single.

• 66% full-time workers, 77% employed non-casually.

• 47% with primary, secondary high school as their highest level of

education.

• 48% of listeners residing in Inner, South West & Sutherland, and

50% residing in South West & Outer South West – indicating that

the community and immediate surrounding communities are the

predominant listeners64.

With these findings considered, it may prove fruitful to pursue target markets consisting of these demographic characteristics, in accordance with geography. In light of this, it may prove logical to:

• Use geographic-segmenting when producing and delivering news and

CSA’s, as this is a basic function of the community radio station and

service to the community is a key initiative.

• Establish whom 2MCR’s key listeners are, and assess how they can

retain these listeners while attracting new and untapped potential

listeners to the station in the interest of growth. After this is

accomplished, content can be sourced and delivered accordingly.

63 McNair Ingenuity Research, The National Listener Survey, 2. 64 Ibid.

33 • Allocate different weekly time-slots and separate shows to deliver their

target-tailored content to the different target segments, if multiple are

chosen.

34 6.0 Objectives

2MCR will apply a wide range of marketing strategies to achieve their marketing objectives. 2MCR would ultimately like to increase brand awareness in the local government area (Macarthur). 2MCR would like to achieve this by attracting a younger market than the median age bracket they currently have. 2MCR’s objectives include:

1. To improve web presence and expand social networking

2. To improve and launch new services (Franchise hosts/Radio

personalities)

3. To achieve a new target market (company wants to move towards

younger audiences)

4. To maintain and improve on customer relationships

5. To build brand awareness

35 7.0 Marketing Strategies and Objectives

It is recommended that 2MCR apply several marketing strategies that have been suggested to achieve their marketing objectives. 2MCR would ultimately like to increase brand awareness in the local government area of Macarthur.

2MCR would like to achieve this by attracting a younger market than the median age bracket they currently have. These strategies have been developed for each of the identified objectives respectively and are set out in the same order of the objectives above, furthermore, these strategies will also elaborate on the budget, implementation, control procedures and the contingency plans for each of the 5 strategies.

7.01 Improve web presence and expand social networking

through advertisement and engagement through social media

platforms.

One of 2MCRs weaknesses is its failure to create customer relationships and awareness. Through the utilization of social media and website upgrades, these weaknesses can potentially be transformed into strengths.

Reasons to Engage

• Social Media Advertising is stated to have ‘surpassed that of

newspaper by 3% in 2013’65 demonstrating the opportunity and growth

in the advertisement platform.

65 Johnson, B, “10 Things You Should Know About the Global Ad Market,” Advertising Age, December 08, 2013, Advertising Age Archives database.

36 • Facebook Advertisement through desktop users holds a (8.1x) click

rate to that of regular website ads, and a (9.1x) click rate through

Facebook mobile advertisement to that of normal advertisements66.

• $2.9 Billion revenue in Facebook advertisement to date presents rising

norm in social media use67.

• Instagram presents an easy platform to engage with the youth and

particular group interest through the use of Hash tags, it also allows for

the visualization of a company.

Strategy Process

In relation to Macarthur Community Radio, the strategy will heavily focus on the use of social media marketing through Facebook and Instagram due to their high rate of traffic and broad consumer reach in comparison to that of niche social media platforms, the following process will present an order in which the strategy must be implemented to determine whether it will succeed or fail in meeting current Objectives.

Initial Testing Period:

1. Develop and Design a Facebook Page Dedicated To Macarthur

Community Radio Station and link it to a complimentary Instagram

Account.

2. Take Advantage of Facebook and Instagram’s targeting systems.

Facebook groups and pages dedicated to music, radio and

entertainment are a strong starting platform for any business similar to

66 LePage, E, “A Beginner’s Guide to Social Media Advertising,” Hootsuite, November 26, 2014, Hootsuite Archive database. 67 Kokalitcheva, K, “Mobile is Facebook’s Cash Cow,” Fortune, July 29, 2015, Fortune Archives database.

37 that of Macarthur community Radio looking to expand their social

media reach. This may be achieved through:

• Discussion on Music Pages

• Advertising through simple posts on Community pages and trending

pages related to industry.

• Use of Hash tags on Facebook and Instagram targeting a specific

consumer e.g. #Radio #FreeRadio #SydneyRadio.

• Requesting similar groups or pages to share and discuss Macarthur

community Radio.

3. Update Frequently to keep community updated on presence on social

media regardless of popularity,

4. Develop and test different forms of advertisement on both Facebook

and Instagram in the form of links, comments, photos, videos and audio

files to determine which achieves a greater reaction from consumers.

5. Analyse results of testing period and determine whether to proceed.

Setup and Expansion

1. Inclusion of Social media logos on station identity. Small logos of the

Facebook and Instagram symbol to be associated with any

presentation of the Macarthur community radio station logo.

2. Create physical handouts and advertisements informing the community

on the stations Expansion into Facebook and Instagram.

3. Initiation of light paid Facebook Advertisement.

4. Determine Return on investment with paid social media advertising and

increase in views.

38 Developed Stage

1. Increase paid advertising if proven to increase message reach.

2. Increase use of free advertisement such as shares and posting on

community pages.

3. Create alliances with local businesses and clubs to share one

another’s content e.g. Macarthur Rams Soccer Club, Campbelltown

RSL.

If implemented as follows a successful social media advertising platform may be developed to assist Macarthur Community Radio in achieving its vision and mission, while expanding and developing on its listeners.

Benefits

• Decreased marketing costs through the use of free social media

advertising as stated in the initial testing phase.

• Increased recognition from differing consumer groups and current

listeners of Macarthur Radio, gained through the wide reach and

visibility Facebook and Instagram provide for a business.

• Ability to convert new customers from their old entertainment

platform to that of Macarthur Community Radio, and create

customer recall for those that may have forgotten.

• Increase rates of adoption and repeated listening.

• Ability to communicate with similar businesses or businesses in the

Macarthur region that may be interested in advertising through

Macarthur community radio or creating alliances in which free

sharing of content is done on, one another’s Facebook or Instagram

page.

39 • Ability to communicate with listeners and keep brand authority over

suggestions and complaints, that if not dealt with may be

detrimental towards the business.

• Increase awareness of upcoming events, station information,

timetables, methods of sponsorship, and other related information

that may be present on the Radio website.

Budget

Budget: Social Media

Stage Cost % Strategy % Total Budget

budget

Testing N/A 0% 0%

Expansion $2,004 55% 10%

Developed $1,646 45% 8%

$3650 100% 18%

The Above table demonstrates the predicted costs that may apply to initiating the strategy however they are not certain costs as Facebook advertising costs are variable and if stages of strategy aren’t successful certain costs may not apply:

Costs Based on Stages

Testing:

• Test period should only use free advertising methods

Expansion: • Facebook minimum per day advertising cost of $5 applied

40 • 5000 A6 flier recommendation through Vista Print at $179 base cost

Developed • Increase in Facebook advertisement by $4.50 per day

Control Procedures

Lead Measures

• Increase in listeners from initiation of strategy to current.

• Listener involvement on social media pages.

• Sponsorship requests from other businesses.

• Involvement of community group pages with Macarthur Community

Radio page

• Return on investment rate and decreasing total marketing costs.

Lag Measures

• Little to no increase in online traffic

Contingency: 2MCR will need to test multiple forms of

advertisement through social media to ensure the most popular are

being used, to decrease chances of unappealing advertising.

• Decrease in Listener posting, complaints and suggestions.

Contingency: 2MCR would be suggested to keep up a high

frequency in relation to replies towards listeners as it will keep them

engaged and feel a part of the station.

• Little to no requests for advertisement on social media or through

the station acquired from other businesses.

Contingency: 2MCR may acquire personnel to specifically monitor

its social media platform and keep in contact and reach out to

41 possible sponsors or businesses that may seek to support or

advertise through 2MCR.

7.02 Improve and launch new services (Franchise hosts/Radio

personalities).

It would be highly beneficial for 2MCR to put more emphasis on radio personalities. Through the survey results, it is evident that what compels the general audience (almost all age brackets) is the constant discussion and elaborate conversations radio hosts often bring to the table. When a radio host is part of the brand rather than in the brand’s way, they become much a part of what listeners look forward to as any song. Good radio show hosts adapt their performance based on how well the audience knows them and the things they have at their disposal, and try not to script their shows so tightly that they cannot adjust to changing circumstances68.

Radio talk show hosts strive on the notion that the impression they leave will garner an opinion a large audience has on them, causing them to ultimately feel the need to make the right impression69. Due to the fact that radio hosts often fill hours of content as opposed to DJ’s who fill pockets of around 10 seconds before a song, it enables them to adapt a level of professionalism to the length of the performance.

Upon analyzing the survey results, it is clear to see the desire for radio hosts, thus the strategy to ensure training of current staff or hiring potential candidates is imperative to 2MCR’s success in Macarthur Local Government

68 Crider, Performing Personality: Radio Identities, 80. 69 Ibid.

42 Area and potentially further prospects. Thus, the strategy to introduce segments to the program which enable talk show hosts to flourish and garner a mass following similar to that of Kyle and Jackie O.

2MCR should consider hiring candidates from the Australian Film Television and Radio School and while they’re getting exposure into the industry, current volunteers or longtime members should consider taking a short course or a diploma at the university.

Budget and Implementation

What’s taken into account is the hiring of potential candidates or the training of current staff. 2MCR should consider finding candidates from Australian Film

Television and Radio School as many graduates or current students or undertaking short courses specializing in broadcasting techniques or improving podcast abilities or even developing their specialist crafts in the industry.

Paying for a current member to take a short course in radio specializations will cost $950. This can be done online or face-to-face enabling flexibility. A diploma however, would cost $3400. Considering radio hosts historically succeeds with a ‘duo’ of talent, the cost for training and developing staff if they were to take the course would be approximately $1900 as the short courses would be more for specializations such as podcasts.

Control Procedures

Marketing is designed to persuade consumers to purchase a product or invest in a service. One control put into place in any marketing plan is the monitoring

43 of customer feedback through polls and surveys. You can reach customers indirectly by hosting online polls on the Internet that ask specific questions about your latest marketing plan. Conversely, surveys can be done with marketing groups or via individual interviews by phone or in person. Adjust your marketing plan according to the results of your research. So with the acquisition of hosts, the way to measure up lead or lag is to see if the strategy met these objectives:

Lead Measures

• Increase in Listeners from initiation by 8%.

• Listener retention maintains or improves after initiation (8% or higher).

• Increased listener participation.

• Other platforms such as social media increases in traffic.

• Positive reviews or feedback.

Lag Measures

• Upon Initiation, listener numbers stay the same or drop.

• Social media traffic does not increase.

• Negative reviews or feedback can stray away from constructive and in

turn, hurt 2MCR.

Contingency: 2MCR would need to constantly gauge the feedback from

the audience as the program runs. Constant surveying or questions

progressively as the program runs and with it, act accordingly. For

example, one of the participants from the university was highly liked,

take note of content and procedure. If negative reviews are apparent

upon the initiation and development of the program, further research is

44 required to understand the ‘why’ to come up with resolutions to the

issues.

7.03 Achieve a new target market through developing an

advertising program to create momentum for a new program

schedule and target market.

For 2MCR to target a new segment and develop a new advertising program there are several prerequisite steps that must be identified and performed to ensure that the station successfully rebrands its brand image to suit its new segment. These include, setting advertising objectives and defining target market, determining the advertising budget, develop the advertising message select the appropriate media and evaluate the advertising effectiveness70. The main reasons for implementing this strategy is that outside of the current targeted segment, the age group of 15-24 presents the next largest listener segment and the management of 2MCR identified their desire to re-identify target segment.

1. Defining the Target Market and Setting the Advertising Objectives.

2MCR’s target market consists of listeners both aware and unaware of the station aged between 15-24 based in and around the Area of Macarthur.

Focusing on the local listeners will allow for the station to maximise their appeal and exposure to their targets as they will show the most interest and regard.

70 Walker et al., Marketing strategy – a decision-focused approach.

45 It is important to have measurable and precise objectives for the station to meet. Therefore, in order for 2MCR to reach its set target market and increase the awareness of the station and position the station highly in comparison to its competitors, specifically C91.3. Several marketing implications will be recommended throughout this section in which the station can implement.

This objective will be measured through the market share of Macarthur

Community Radio increasing by 5% within the first year of applying the marketing strategies and increasing the overall awareness of the station.

These specific objectives will allow for the station to measure these results through the application of a quantitative survey. This marketing research will allow for 2MCR to obtain useful information regarding the station’s improved program schedule and the awareness of the station.

2. Determine the Advertising Budget.

From the total marketing budget of $20,000 we have decided that a total of

$2000 will be utilised for advertising, however, we will emphasise the utilization of free advertising through social media. By enhancing the station’s online presence, there will be opportunities for sponsorship and a broader reach and exposure for the station. The two main objectives from this advertising campaign are to increase the awareness and the services offered by 2MCR. With the objectives being identified we believe that the set budget for this particular campaign is adequate to achieve the tasks that we have presented in order to reach the set advertising objectives and goals.

46 3. Develop the Message.

It is important for Macarthur Community Radio to develop a message that is centred on the target market and will appeal to them in order to successfully communicate the advantages of the radio station. The message is important in establishing the station’s position within the market, it is crucial that the message conveys the competitive advantage that 2MCR possesses over its competitors. This mainly includes the unique community feel that the station can offer, which integrates listeners to their community, these advantages will aid the station in developing a successful and clear positioning strategy. The final factor in developing a clear and successful message understands the motives behind the listener’s decision to listen to 2MCR ahead of other radio stations. It is important in this case to highlight the company’s competitive advantage, which is to offer a radio station that encompasses the community feel and emphasise its “sounds of Macarthur” slogan.

Therefore, it is important for 2MCR to develop a clear message that can position the station positively against its competitors and encompass the community feel and highlight the slogan that emphasises the community

“sounds of Macarthur”.

4. Select Appropriate Media.

The ads for the marketing campaign need to reflect the new product offering and its benefits to the selected segment. It is necessary to select appropriate media coverage to ensure the most reach and exposure of the marketing campaign to the target market. With the budget taken into account it is important to make full use of the resources that the station currently possess.

47 The most appropriate media selection for the targeted segment would be to increase social media activity and overall online presence, the use of

Facebook to promote the station can be the most effective and efficient advertising method as the targeted segment is overwhelmingly active on social media. An increase in self-promoting through the station’s website could increase exposure and raise knowledge of the program/service offering of 2MCR. Furthermore, with the allocated budget more exposure can be exerted at the Western Sydney University Campbelltown campus. This can be achieved through sponsorships or appearances to the universities several events and hosting a stall to create momentum and attract more listeners.

5. Evaluate the Advertising Effectiveness.

It is important to measure the success of the station’s marketing campaign, for this particular campaign it is suggested that after the 6-month period the station should conduct a preliminary evaluation. This is then followed up at the end of the campaign, which in this case is 12 months to evaluate the overall success of the implemented marketing campaign in comparison to the objectives and goals that were set. This is to have reached the intended targeted segment, increase the awareness of 2MCR through the increase of market share of 5% and the increasing knowledge of the program/service offering of 2MCR. These evaluations are to be achieved through the utilization of quantitative market research.

Control Procedures

Similar to the evaluation of the advertising effectiveness, the control procedures are put into place to monitor customer feedback whether that is

48 through polls and surveys. These are most appropriately achieved through the surveying through marketing groups or via individual interviews whether on the phone or in person.

Lead Measures

• Market share growth by 5%.

• Increased brand awareness and knowledge amongst the targeted

segment.

• Increased listener participation.

• Positive reviews or feedback.

• Social media traffic increases.

Lag Measures

• Listener numbers fail to increase throughout the implementation of the

advertising campaign.

• Station fails to increase market share.

• Social media traffic does not increase.

• Negative reviews and feedback decrease listener participation and hurt

2MCR.

7.04 Maintain and improve customer relationships.

2MCR can seek to enhance customer relationships through a number of methods, some of these methods tie-into the objective of web presence, however distinguishing differences are apparent. In order to achieve this objective, 2MCR could pursue:

1. The hosting of new or participation, cross-promotion, sponsorship or

broadcasting of existing community events and ‘gigs’, such as local

49 talent and performers. Examples of local talent and performers can be

found on the Macarthur Gig Guide71, which is regularly updated

with upcoming shows and performances.

Budget: Varies depending on the frequency and scale of gigs 2MCR

may wish to host.

The price range may be upwards of $2000 for band hire, and $3000-

$6000 for all other smaller costs such as venue hire, etc. Potential

venues could be Campbelltown Catholic Club, Otis Bar & Grill, Village

Lane Café & Wine Bar, Macarthur Tavern, or Wests Leagues Club.

Costs can, however, be mitigated via ticketing and external

sponsorships. A ticketing system could see tickets charged at $5 to

$10 each or donations could be accepted. 2MCR may wish to not

charge for tickets at all, and host these events out of community

goodwill. Cross-promotions and sponsorship of existing community

events or gigs may prove difficult to estimate a budget for. Typically, a

$100-$1000 investment per sponsored figure is estimated.

2. The empowerment of customers, as this is a vital concept in customer

relationship management. 2MCR may empower customers through

allowing them a greater trust of responsibility over the content

broadcasted or show format where applicable. Perhaps a more refined

forum or feedback model can be developed to allow for an inlet of

71 Macarthur Gig Guide: live entertainment guide.

50 valuable customer opinion.

Budget: in terms of monetary investment into this, there is next to no

further investment required, except for perhaps greater man-hours

invested into the development and maintenance of the refined forum or

feedback model. Further investment into this is minimal.

3. Creating 2MCR’s own events or listener/community fundraisers ‘meets

and greets’ where listeners, hosts, staff and special guests can develop

relationships. Potential industry or corporate partners could also make

their way to these events, and it would serve as a valuable opportunity

to maintain 2MCR’s current sponsors as well as prospect new ones.

Budget: As with hosting gigs, this initiative may prove to require a

budget as high as $5000 for venue, acts, etc. With this, however,

ticketing may not be an option as this would be more of a goodwill

event.

4. Tailoring shows to have more call-in opportunities, so as to facilitate

greater listener engagement and greater perceptions of contribution

and stake – this furthermore ties into the principal of empowerment.

Budget: This may not require additional monetary investment.

5. A student scheme wherein even further discounted memberships are

offered and presenter training provided to usher in a younger

51 generation of content to the variety in 2MCR’s current palette. This

initiative may empower students and coincides with the objective of

targeting new segments.

Budget: students can become a member and receive presenter training

for $20 with no joining fee. This means a sacrifice of $12.50 will be

made per student signup, albeit more affordable entry to the program

(less barriers to entry) and greater student uptake of the program as a

result.

Control procedures

Lead measures

• Greater quality and/or quantity of partnerships, measured by high

mutual benefit and positive return to the station.

• Greater customer satisfaction measured qualitatively via a listener

survey or forum which will draw on criteria such as:

• Station satisfaction

• Inclination to advertise ion. 2MCR via word-of-mouth.

• Brand equity, such as resonance, judgments and feelings

regarding 2MCR.

• Greater interest in the attendance or participation with 2MCR cross

promotions, partnerships, fundraisers, meet & greets, etc. This can be

measured quantitatively.

• Greater audience call-in frequency.

• Greater quality in the engagement and content value of call-ins.

52 Lag measures

• Poor quality and/or quantity of partnerships, measured by low

mutual benefit and negative return to the station.

Contingency: 2MCR will need to evaluate whether the potential

partnerships are perhaps mismatched, organized less than

ideally, and opportune or of benefit to the station before

pursuing.

• Poor customer satisfaction measured qualitatively via a listener

survey or forum.

Contingency: Based on the criteria listed in ‘lead measures’, the

station will need to evaluate which changes can be made and

how certain feedbacks can be applied to change.

• Decreasing interest in the attendance or participation with 2MCR

initiatives, such as cross promotions, partnerships, fundraisers

and meet & greet events.

Contingency: 2MCR will need to evaluate the failures or

shortcomings of their initiatives and either adjust strategy or

pursue a different route.

• Lesser engagement and call-ins.

Contingency: 2MCR will need to evaluate if the premise of

calling in is of encouragement, value or incentive to audiences

and adjust accordingly.

• Poorer content value of call-ins.

Contingency: 2MCR will need to examine the context of call-in

and assess whether they provide audiences with opportune

53 conditions for providing valuable input. If not, 2MCR will need to

adjust these contexts accordingly.

7.05 Build brand awareness

To build and establish brand awareness, increased familiarity of the 2MCR brand through repeated exposure of brand elements, such as the 2MCR logo/tagline is essential.

The three tactics for developing 2MCR’s brand awareness are:

1. Traditional advertising

2. Increased presence at local community events

3. Promotional car air fresheners

Brand awareness is a fundamental building block of brand equity and therefore essential to 2MCR’s marketing activities.

Budget

• Traditional outdoor advertising - $5000 - $10000

• Increased presence at local community events - $500

• Promotional car air fresheners - $500

Implementation/ Action Plan

The limited budget of 2MCR has been taken into account when considering brand awareness building strategies.

• Traditional advertising

54 An increase of traditional advertising focused on the Macarthur local government area in the form of signage/billboards particularly at relevant locations such as gyms, retail, university campuses and pubs/bars would not only help to raise brand awareness and provide consideration advantages, but would mutually reinforce 2MCR’s positioning strategy and overall commitment to the region. It is recommended that this is implemented through an advertising agency such as ‘ooh media’ ooh’s ‘locate by ooh’ would be the most appropriate and cost effective solution.

• Increased presence at local community events

Additionally 2MCR should increase its presence at local community events:

• Macarthur Gig Guide 2016.

• Live Music on the Terrace at OTIS Bar.

• Macarthur Sunday Markets.

• Campbelltown New Year's Eve.

Emphasizing particularly on those significant with the younger market of which

2MCR is aiming to target, again brand elements should be on full display,

2MCR volunteers should have branded t shirts, banners etc. and provide community members with promotional goods.

• Promotional car air fresheners

Promotional car air fresheners could be used to effectively build brand awareness, these are more relevant when compared to previous promotional products such as 2MCR branded mugs, as the air fresheners hold a more functional benefit for consumer i.e. keeping car smelling fresh, and are used during the moment of truth i.e. the car. The air fresheners will help move

55 2MCR to top of mind for some consumers and provide choice advantage.

Additionally, the branded air fresheners lower the necessity of brand recall for consumers when in the car as the air freshener would prompt the consumer to tune into 2MCR.

Control Procedures

• Traditional advertising

Ooh provides a number of proven successful Control Procedures to measure the success and influence of a campaign.

(http://www.oohmedia.com.au/insights/move)

• Increased presence at local community events

• Promotional car air fresheners

Both of these brand awareness tactics can be evaluated simultaneously through the monitoring of customer feedback through surveys, interviews with

56 community members and focus groups. Questions should particularly focus

on the community orientated positioning of 2MCR (Increased presence at

local community events) and the brand recognition and recall (Promotional car

air fresheners).

Balance Score Card (BSC)

The BSC outlines the lead and lag measures for the set objectives and

strategies throughout our marketing mix.

Reference Objective Lead Measure Lag Measure Linkage 6.01 (1) Enhance a Web • Increased • Low online 7.01 Presence and listeners traffic expand social • Listener • Decrease in networking Involvement listener recall • Sponsorship and repost rate • Low • Other Social advertisement media requests involvement • ROI and Marketing cost 6.01 (2) Launch new • Increase in • Upon Initiation, 7.02 services Listeners from listener initiation by 8% numbers stay • Listener the same or retention drop. maintains or • Social media improves after traffic does not initiation (8% or increase. higher) • Negative • Increased reviews or listener feedback can participation stray away from • Other platforms constructive such as social and in turn, hurt media 2MCR. increases in

traffic • Positive reviews or feedback 6.01 (3) Target new • Market share • Listener 7.03

57 customers growth by 5%. numbers fail to • Increased increase brand throughout the awareness and implementation knowledge of the amongst the advertising targeted campaign. segment. • Station fails to • Increased increase market listener share. participation. • Social media • Positive traffic does not reviews or increase. feedback. • Negative • Social media reviews and traffic feedback increases. decrease listener participation and hurt 2MCR. 6.01 (4) Enhance • Return on • Poor 7.04 Customer Partnerships Partnerships relationships • Customer • Customer satisfaction Complaints • Event • Decreasing attendance interest • Call-in • Low response frequency rate • Response value

58 8.0 Target Market

Identifying 2MCR’s target market is imperative as it provides the essential structure of the marketing plan and whom it will be projected to. In order for

2MCR to guarantee that they have selected the most appropriate target market, there are several factors that have to be taken into account, including an analysis of the various segments relating to the market potential, growth rate and competitive intensity72. These factors should be taken into account with 2MCR’s objectives and capabilities.

One of 2MCR’s current weaknesses is that the station is currently targeting listeners aged between 18-40. Their current target market is too broad and does not meet the interests of their listeners. 2MCR have expressed that they would like to segment their market based on geographical location and target a younger audience. This strategy may not be the most successful as it is still too broad to satisfy the listener’s interests and wants. If 2MCR have a definitive segment that they can target it will allow for them to offer more programs that suit the needs of their targets. 2MCR’s most current listeners according to the national listener survey consists of a majority of males aged

15-24 with 31% of all 2MCR listeners and males aged 25-39 making up 44% of all 2MCR listeners73. With these statistics and 2MCR’s objectives taken into account, it would be in the station’s interest to focus their marketing plan on listener’s aged 15-24. The station can utilise these statistics to develop a more appropriate marketing plan to maximise their reach for their new target

72 Walker et al., Marketing strategy – a decision-focused approach, 117. 73 McNair Ingenuity Research, The National Listener survey, 4.

59 market and objectives. These details will be thoroughly examined throughout one of the four objectives that we will present throughout the report.

60 9.0 Conclusion

The strategies we have recommended for 2MCR to consider are varied and overall, the primary focus we have decided 2MCR should concentrate their resources and efforts on is social media and web presence. This is due to opportunity and growth advertising in the platform an offer. It creates a means for 2MCR to have evolving, fun, and constructive communications with their audience. Facebook and Instagram will be the main platforms to further meet

2MCR’s objectives as the research conducted shows the high rate of traffic and broad customer, reach it presents. The benefits of successfully implementing this strategy, as it is the main strategy we’ve focused our efforts on will, if executed impeccably, increase the amount of listeners from its initiation and highly increase the listener involvement. It will attract sponsorships and ultimately welcomes more opportunities to involve the community of Macarthur Local Government Area.

2MCR should also look into implementing or further emphasizing their efforts on franchise hosts that specialize in discussion, debate and podcasts. The surveys conducted in the Macarthur region shows that the majority of people would gravitate towards 2MCR if they had their local area represented by their own hosts. Similar to Kyle and Jackie O, this presents itself with opportunities that benefit the social media focus strategy as both strategies coincide to bring out the benefits of both platforms. Customer retention is heightened as the research shows that a large percentage of Australians associate major FM radio stations with their franchise hosts or DJ’s.

61 To build and establish brand awareness, increased familiarity of the 2MCR brand through repeated exposure of brand elements, such as the 2MCR logo/tagline is essential. The three tactics we developed to increase 2MCR’s brand awareness are: Traditional advertising, Increased presence at local community events and Promotional car air fresheners.

An increase of traditional advertising focused on the Macarthur local government area in the form of signage/billboards particularly at relevant locations such as gyms, retail, university campuses, pubs/bars etc. would not only help to raise brand awareness and provide consideration advantages, but would mutually reinforce 2mcr’s positioning strategy and overall commitment to the region

Additionally, 2mcr should increase its presence at local community events to further reinforce positioning and raise awareness emphasizing on local events that are significant with the younger market of which 2mcr is aiming to target.

Promotion air fresheners are used during the moment of truth and prompt consumers reducing the need for brand recall whilst simultaneously raising awareness, furthermore they work cohesively with the presence at local community tactic.

Maintaining and improving customer relationships through a variety of methods is imperative in creating greater quality partnerships and higher brand retention rates amongst the audience. The objective is broad as there are a number of ways that must be continued through a long period of time to reap the long-term benefits. This includes hosting or participating in cross-

62 promotional/sponsored events, which heavily involves the community, as its intention is to shine light on Macarthur’s diverse interests. For example, the promotion and celebration local talents and performers are invited to further increase traffic and brand awareness of 2MCR but to also observe the station’s local community and gather information, which results in constant and evolving ways to appeal to their market.

63 10.0 Appendices

Appendix 1: A graph presenting the reach of 2MCR.

McNair Ingenuity Research. Fact Sheet: Community Radio National Listener

Survey.

Community Broadcasting Association of Australia, 2015. Accessed

August 17, 2016, page 2.

https://www.cbaa.org.au/sites/default/files/media/McNair%20Fact%20S

heet%20-%20Sydney%20-%202015%20-%20Wave%20%232.pdf

64 Appendix 2: A graph comparing 2MCR’s monthly ratings from other radio stations.

McNair Ingenuity Research. Fact Sheet: Community Radio National Listener

Survey.

Community Broadcasting Association of Australia, 2015. Accessed

August 17, 2016, page 3.

https://www.cbaa.org.au/sites/default/files/media/McNair%20Fact%20S

heet%20-%20Sydney%20-%202015%20-%20Wave%20%232.pdf

65 Appendix 3: A table outlining the monthly audience profile.

McNair Ingenuity Research. Fact Sheet: Community Radio National Listener

Survey.

Community Broadcasting Association of Australia, 2015. Accessed

August 17, 2016, Page 6.

https://www.cbaa.org.au/sites/default/files/media/McNair%20Fact%20S

heet%20-%20Sydney%20-%202015%20-%20Wave%20%232.pdf

66 Appendix 4: A

McNair Ingenuity Research. Fact Sheet: Community Radio National Listener

Survey.

Community Broadcasting Association of Australia, 2015. Accessed

August 17, 2016, Page 5.

https://www.cbaa.org.au/sites/default/files/media/McNair%20Fact%20S

heet%20-%20Sydney%20-%202015%20-%20Wave%20%232.pdf

67 Appendix 5: A

McNair Ingenuity Research. Fact Sheet: Community Radio National Listener

Survey.

Community Broadcasting Association of Australia, 2015. Accessed

August 17, 2016, Page 4.

https://www.cbaa.org.au/sites/default/files/media/McNair%20Fact%20S

heet%20-%20Sydney%20-%202015%20-%20Wave%20%232.pdf

68 Appendix 9: A graph showing the station preferences amongst listeners.

Respondent Radio station Preference

2BL (702)- 2 2MBS (102.5) - 2 2KY (99.3) - 2 Vintage FM (87.6 )- 2 3SER (97.7) - 2 2SER (107.3) - 3 C91.3 - 4 2GIF (89.3) - 4 2UE (95.3) - 4 Hope (103.2) - 4 Has zero association with any radio station - 4 Triple M (104.9) - 5 WSFM (101.7) - 7 ABC Classic (92.9) - 7 Triple J ( 105.7) - 9 2GB (87.3) - 10 KIIS (106.5) - 13 2MCR ( 100.3) - 14 Nova (96.9) - 14 The Edge (91.1) - 16 2day Fm (104.1) - 19 Smooth Fm (95.3) - 20

0 5 10 15 20 25

Surveyee Radio station preference

69 Appendix 10: A table showing the similarities and differences between the 3 different Macarthur radio stations.

Frequency Branding, Location Proficiencies over Deficiencies over format 2MCR 2MCR 91.3FM C91.3/2MAC, Macarthur • Macarthur • More (C91.3 FM Adult community- commercially n.d.) Contemporary oriented. oriented. Music • Website is more • Fewer shows & visually variety, e.g. appealing & does not with better provide classic infrastructure. or ethnic • Social media content/music. presence is larger and given more effort. • Larger-scale sponsors. • Larger-scale charity and other initiatives. • More refined image, with presenters showcased better. • Website is also an entertainment hub. 101.7FM 101.7 WSFM, Macarthur • Much larger • More & 88.3FM Adult via 88.3FM breadth of commercially- (WSFM Contemporary repeater audience due to oriented. n.d.) being a large- • Fewer shows scale station. and variety, e.g. • Better does not showcased provide classic presenters & or ethnic news. content/music. • Website is more • Less visually community- appealing with oriented. better infrastructure. • Social media presence is larger and given more effort. 12k

70 Facebook followers. • Larger-scale sponsors. • More refined brand image. • Specialized and acclaimed shows. • Website is also an entertainment hub. 89.3 2GLF-FM, Liverpool • Website is more • Not as many (2GLF-fm Community visually quality n.d.) Radio appealing, with sponsors. better infrastructure. • Listeners are able to listen to any program from the last four weeks on- demand, online. • 1.7k Facebook followers. • Just as much variety as 2MCR.

71 Appendix 11: A Copy of the original Questionnaire.

72 Appendix 12: A graph showing the locations of respondents.

Surveyee Location

Gledswood hills Englorie Park Glenfield Leppington Glen Alpine Smeaton Grange Ambarvale Bradbury Macarthur Minto Leumeah Camden Mount Annan Campbelltown

0 2 4 6 8 10 12 14 16 18 20

Macarthur Region do the samplers live

73 Appendix 13: A graph showing the occupations of respondents.

Surveyee Occupation

Transportation - 1 Personal care and Service - 2 Healthcare practitioner or techician - 2 Education/ Training/ Library -2 Business and financial operations - 2 Office/ Administrative support -2 Hospitality - 4 Unemployed - 4 Sales - 7 Management - 7 Retired - 9 Student - 10 Construction - 10

0 2 4 6 8 10 12

Surveyee Occupation

74 Appendix 14: A graph showing the radio station preferences of respondents.

Surveyee Radio station preference

2BL (702)- 2 2MBS (102.5) - 2 2KY (99.3) - 2 Vintage FM (87.6 )- 2 3SER (97.7) - 2 2SER (107.3) - 3 C91.3 - 4 2GIF (89.3) - 4 2UE (95.3) - 4 Hope (103.2) - 4 Has zero association with any radio station - 4 Triple M (104.9) - 5 WSFM (101.7) - 7 ABC Classic (92.9) - 7 Triple J ( 105.7) - 9 2GB (87.3) - 10 KIIS (106.5) - 13 2MCR ( 100.3) - 14 Nova (96.9) - 14 The Edge (91.1) - 16 2day Fm (104.1) - 19 Smooth Fm (95.3) - 20

0 5 10 15 20 25

Surveyee Radio station preference

75 Appendix 15: Summary of survey question 6.

76 Appendix 16: Summary of survey question 7.

77 Appendix 16: Summary of survey question 8.

78 Appendix 16: Summary of survey question 9.

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