Q&A: Prashant Panday, CEO, Entertainment Network India

'We have the mindset of an FMCG company'

Prashant Panday, 45, a hardcore marketing man, joined Radio Mirchi in 2000 while it was being set up and became CEO in 2007. The '422-crore ENIL is largely about Radio Mirchi and its 45 stations, that lead listenership numbers in many cities. ENIL is also, arguably, the most profitable radio company in a business where variety and differentiation are almost impossible to achieve, thanks to the regulator. Vanita Kohli-Khandekar had a long chat with Panday on how Radio Mirchi approaches its programming. Edited excerpts:

How has your approach to programming changed and why?
When we launched in Mumbai, we started with English music in the morning and evening drive times, thinking that drive time audiences love English music. When a competitor launched, internal research indicated we had lost our lead. We quickly changed to Hindi and recovered.

Our focus on internal research has helped. Much later, and for many years, we stuck to contemporary music. Later, research indicated that the brand Mirchi actually stands for “sunshine” and “fresh and spicy” and, in fact, limited music was a liability. About two years before, we changed that. Today, we play a variety of music, but we bind it all together on the back of the brand positioning which is on “sunshine”.

How often do you do research on, or for, programming — what type of research?
Before we launch a station, we do a proprietary research called LEP (leisure, entertainment, pastime), which gives us insights into the market. We do regular updates to the LEP, since our cities change so fast. We do a lot of music research, apart from the regular AMT (auditorium music test). We also do genre-testing, which tell us changing preferences to various genres of music. We do a proprietary scheduling research which tells us how to schedule music (after the playlist is established). We do pre and post-testing of music after release. We do advertising pre and post-testing. We do continuous brand tracks. At times, we feel we do too much research! We have the mindset of an FMCG (fast moving consumer goods) company, not a media company.

Considering the limitations in which the business operates, how much differentiation is possible?
In today’s world, with technology easily available and transferable, product differentiation is not possible. The concept of USP (unique selling proposition) has long died. Today, the only differentiation between brands is in terms of their personalities, their consistency and their meaning in the lives of people. When we launched Purani Jeans in the 9-12 pm slot in Mumbai, it was copied within two weeks, but the brand cannot be copied. We never hire RJs from competition, never ever. When a Mirchi jock leaves, he or she usually fails because they could not fit with the Mirchi brand.

What ensures that a RJ, show or song goes on air?
Our RJs are hand-picked. After the recruitment, we do a full-scale study of their personality. On the basis of that, a fit with the brand is developed. Many characteristics of the jock are developed and accentuated, others are subdued. It’s like a screenplay writer who develops a character. Once the jock is in place, the program concept is developed keeping research inputs and, very importantly, having the jock fit with the concept. This sounds easier than it is. This is where the magic is made…some concepts work, some fail.

What kind of patterns have you seen in what audiences, like across the stations you operate in?
We believe India is a happy country. It’s on the move. People do not like sensational stories all the time. People are okay with sensational stuff. TV is considered to be entertainment. But in print and radio, people don’t want sensational stuff. That is why a station which takes on an anti-establishment stance has been faring so badly of late. This is a pattern we have seen all across the country and we have built it into our brand personality.

What is local programming for a Mirchi station in a city or town?
We have a test: If a person from Delhi visits Mumbai, that person should be forced to wonder: ‘What are these guys talking about?’ He should be unaware of the topic being discussed, since it would be a local topic.

How much of programming decisions are driven by ad potential and and how much by audiences?
We are a very revenue-focused company. When we choose our TG (target audience), we choose it on the basis of a monetisable audience. We are not interested only in listenership numbers.