jffm jessica greschner

Managing the Demands of Two Segments COMM 365, Sec:on 102

Ideen Toudeh Fallah 18651117

Jessica Greschner 2772107 Shayla Hardy 41418104

Chenessa Mok 25285107 Narissara Su 52817103

MARKETING RESEARCH PROJECT

About JRfm Owned by the Jim PaUson Broadcast group

Only FM country radio sta:on in Vancouver

Music, contests, updates on latest news and trends

Community involvement (FunFinder, Ci:zenship Ini:a:ves)

Maintains a strong presence in social media


Understanding the Industry

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0.60

0.80

1.00

1.20

1.40

2008 2009 2010 2011 2012

Revenu

e (billions)

Revenue of Commercial Radio in Canada

476 501 516 535 546

0

100

200

300

400

500

600

2008 2009 2010 2011 2012

# of Rad

io StaHo

ns

# Radio StaHons in Canada

67%

31%

0% 0% 2%

2012 Commercial Radio Revenue Sources

Local Time Sales Na:onal Time Sales Syndica:on

Government Grants Adver:ngs & Events


Understanding the Industry

GENERAL USAGE

•  In 2011, the average person listened to the radio for app. 11 hours per week

•  Music accounts for 5.5 hours, News, weather, informa:on, sports, commercials, etc. account for the other 5.5 hours per week.

COMPETITION

•  Direct: Other FM radio sta:ons in Vancouver

•  Indirect: Satellite radio, mobile apps, MP3s, and websites


JRfm Listeners Exp l o r a to r y Re sea r ch

49% Have a household income of $75K+ 31% Have a household income of $100K+ 49% Have a university / college degree 50% Are married 58% Own their home 29% Have children living at home 67% Dine out at restaurants monthly 61% Order take out food monthly 52% Drink 1+ cups of coffee daily 48% Drive import vehicles 40% Drive domes:c vehicles 53% Do not read a daily newspaper 50% Listen to JRfm 7-‐28 hours per week -‐

20,000

40,000

60,000

80,000

100,000

12 to 17 18 to 24 25 to 34 35 to 44 45 to 54 54 to 64 65+

Age of Listeners

JRfm Weekly Listenership – Total 433,052


JRfm Listeners Exp l o r a to r y Re sea r ch

ADULTS 18 -‐ 34 ADULTS 25 -‐ 54

Monday -‐ Friday 6:00am – 10:00 am 127,891 264,253

Monday -‐ Friday 10:00am – 3:00pm 205,869 416,920

Monday -‐ Friday 3:00pm – 7:00pm 240,448 387,742

Monday -‐ Friday 7:00pm – 12:00am 178,401 234,552

Weekends (aggregated) 207,120 401,320 * Insight provided by JRfm

The 25-‐54 segment listens MORE than the 18-‐34 segment

The 18-‐34 segment listens the most from 3:00pm-‐7:00pm

The 25-‐54 segment listens

most from 10:00am-‐3:00pm

KEY TAKEAWAYS:


The Rebranding of JRfm Exp l o r a to r y Re sea r ch

“OLD COUNTRY” “NEW COUNTRY”

Tim McGraw, Alan Jackson, Brad Paisley, Garth Brooks and Reba Mcen:re

Carrie Underwood, Taylor Swij, Zac Brown Band, Luke Bryan and Jason Aldean


While JRfm was playing more “new country”, older consumers were s:ll reques:ng “old country”…

THE DILEMMA

Play more “new country”

(Poten'ally) Lose older segments

Play more “old country”

(Poten'ally) Lose younger segments

JRfm is struggling to balance the requests for both “new country” and “old country” given their new posi:oning.

The Rebranding of JRfm Exp l o r a to r y Re sea r ch


Defining ObjecHves Resea r ch P rob l em & Re sea r ch Que s:on

RESEAR

CH PRO

BLEM

How to both grow and maintain JRfm’s two dominant segments; how can JRfm best accommodate the listeners who demand “new country” and those who demand “old country”.

RESEAR

CH QUESTION

Would establishing a new, partner FM radio sta:on be successful in strengthening both segments of young and old listeners, therefore proving to be a profitable and wise endeavor for JRfm?


HYPOTHESIS: If JRfm creates a sister sta:on that caters to the segments preferring “old country” they will be able to grow and maintain both the “new country” listeners, and the “old country” listeners.

Research Design Des c r i p:ve S t udy , S u r vey , & Que s:ons

DESCRIPTIVE RESEARCH

Gain insight on listener preferences

Bever understand aUtudes towards new and old country

SURVEY QUESTIONS

Paired Comparisons

Constant Sum Scales

Likert Scales

Customer Survey


Research Method Des c r i p:ve S t udy , S u r vey , & Que s:ons

Secondary Research…

Primary Research… •  Survey Type: Self Administered Ques:onnaires

and Mall Intercepted •  Advantages & Disadvantages?


Sampling Method Popu l a:on , Co l l e c:on , Me thod

PopulaHon of Interest •  Individuals who have listened to JRfm before • People who listen to country music

Data CollecHon Method • Survey •  Intercepted at two JRfm concerts & self-‐administered

Sampling Method • Non-‐probability with purposeful randomness • Time & resource constraints avributed to small sample size


Sampling Method Samp l e S i z e

SAMPLE SIZE: 62

Under 19 20 – 24 25 -‐ 49 Over 50


Sampling Method Samp l e S i z e

SAMPLE SIZE: 62

Under 19 20 – 24 25 -‐ 49 Over 50

LARGEST MARKET “Old Country” Listeners

TARGET MARKET “New Country” Listeners


Data CollecHon How We Ac ce s s ed ou r Popu l a:on

CONCERT #1 (Tim Hicks) •  Access to younger demographic

CONCERT #2 (Emmylou Harris & Rodney Crowell) •  Access to older demographic

SOCIAL MEDIA (Facebook) •  Access to JRfm fans

Survey Sofware: U

BC Qualtrics

Problem | Design | Sampling Procedure | Data CollecHon | Analysis & Recommenda:ons | Follow-‐Up

Analysis Va l i d a:on & Ed i :ng

Surveyed appropriate target audiences

Surveyed relevant popula:on (JRfm listeners)

All ques:ons in the survey were completed

Elimina:on of ques:on that was difficult to answer


Analysis Va l i d a:on & Ed i :ng

5%

10%

18% 17%

21%

14% 15%

0%

5%

10%

15%

20%

25%

12 to 17 18 to 24 25 to 34 35 to 44 45 to 54 54 to 64 65+

Breakdown of JRfm Audience by Age

3%

48%

10%

2% 2% 3% 3% 7%

11% 11%

0%

10%

20%

30%

40%

50%

15-‐19 20-‐24 25-‐29 30-‐34 35-‐39 40-‐44 45-‐49 50-‐54 55-‐59 60+

Breakdown of Sample by Age

49% of the Sample was over 25

85% of the Popula:on is over 25


Analysis Can They Hea r t he D iffe rence?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Taylor Swij Carrie Underwood

Lee Brice Hunter Hayes

Brooks & Dunn

Chris Cagel Toby Keith Tim McGraw Garth Brooks

SorHng “New” & “Old” Country ArHsts

Old Country

New Country

“New Country” “Old Country”


Analysis What do t hey P r e f e r ?

New Country 29%

Old Country 24%

No Preference 47%

Do You Prefer “New” or “Old” Country?

70% of survey respondents also noted that they like listening to a mix and new and old country!



31%

15%

44%

10%

0%

10%

20%

30%

40%

50%

Blake Shelton, Lee Brive, Florida Georgia Line

Gary Allan,Brad Paisley, Brooks & Dunn

A Combina:on of Both Neither

Which StaHon Would You Choose Based on Song Line Up?

“New Country”

“Old Country”

KEY INSIGHT



Key Insight: Although the popula:on indicates they like a mix of ”new” and “old” country, it is evident that more young people like “new country”, and more old (er) people like “old country”


Cost Benefit Analysis Survey: 59 respondents, 154 total tune-‐in occasions

Avg. Daily Occasions Avg. Daily Listeners Avg. Daily Tune Ins Avg. Monthly Tune Ins

2.6 192,500 500,500 14,014,000

Avg. Daily Occasions Tune-‐In Value Avg. Daily Listener ContribuHon

2.6 $0.04 $0.10

Spot Revenue (JRfm) 2012: $565,501


Cost Benefit Analysis L i s t e n e r R e v enue s

25% of listeners preferred “old country”

Avg. Daily Occasions Avg. Daily Customers Avg. Daily Tune Ins Avg. Monthly Tune Ins

2.6 48,125 125,125 3,503,500

Tune-‐In Value Avg. Daily Listener ContribuHon (P6+, Full Week)

Avg. Annual Listener ContribuHon

-‐$0.07 -‐$0.18 -‐$65.47

JRfm opera:ng cost (2012): $245,050


Cost Benefit Analysis

Tune-‐In Value Avg. Daily Listener ContribuHon

Avg. Annual Listener ContribuHon

$0.04 $0.10 $37.77 -‐$0.07 -‐$0.18 -‐$65.47

Limited promise in growth

Considered other sources of revenue

Total loss of -‐$103,674 for new sta:on based on expected listener count

Cost per listener is much higher than contribu:on per listener


RecommendaHons Conc l u s i on

CONCLUSION

• Making a separate radio sta:on that played only old country would be a bad idea! Why? •  Listeners prefer a mix of “new country” and “old country”

•  The costs are greater than the gains

RECOMMENDATION

•  JRfm needs to play and endorse a mix of “new country” and “old country” to best suit their listeners preferences



Open up a new sta:on just for “old country”

Instead, maybe introduce “Saddleback Hour” •  An hour of just “old” country music played when most “old”

country listeners tune-‐in •  This will reaffirm the presence of “old country” in the newly

rebranded JRfm



Therefore since JRfm listeners want both “new” and “old” we recommend “Saddleback Hour”, an hour of “old” country music to be played between 10:00am and 3:00pm when more people who

prefer “old” country music tune-‐in

Those Under 24: •  Most popular tune-‐in :me:

5:00am to 10:00am

Those Over 35: •  Most popular tune-‐in :me:

10:00am to 3:00pm


Plan for Follow-‐Up Now t h a t R e s e a r c h i s D one…

PRESENT

•  Present our recommenda:on of not opening up a new sta:on

MONITOR

•  Suggest con:nuous monitoring of the preferences of different segments

MORE RESEARCH

•  Suggest that a similar survey is conducted again in 2 years


THANKS FOR LISTENING!

Any Ques:ons?


jffm jessica greschner

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