Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

GENERAL INFORMATION
Application for FM Independent Local Radio Licence for Cornwall
(a) Name of Applicant IMD Radio Cornwall Ltd
Address IMD Group
White Horse Yard
78 Liverpool Road
London N1 0QD
Telephone 020 7288 4300
Fax 020 7359 6001
Email Radio@imdgroup.co.uk
(b) Main Contact (for Public Purposes)
Ian Merricks
IMD Radio Cornwall Ltd
White Horse Yard
78 Liverpool Road
London N1 0QD
Telephone 07970 306699
Email Ian@itchyfm.co.uk
(d) Proposed station name:
Cornwall’s 105 to 107 Itchy FM
(e) Brief description of Programme Service
A distinctive, relevant and lively local radio station for Cornwall’s Under 35
audience, playing popular youth targeted music predominantly from the
last 10 years, plus specialist programming providing a credible,
alternative with news, lifestyle, issues and events bringing together the
local tastes and preferences that define young Cornwall today.
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SECTION 105(A): ABILITY TO MAINTAIN PROPOSED SERVICE
1. Ownership and control of company which will operate the licence
(a) Board of directors
(I) Provide the name, occupation, other directorships, other media interests, background and
relevant media experience of each director (executive and non-executive), including the proposed
chairperson.
(II) If there are firm plans to appoint any further directors, provide information (with details of any
specific individuals in mind). This information may be submitted in confidence
Directors:
IMD Radio Cornwall Ltd has established an experienced board of directors that combines the founders
behind the idea of a distinctive new music station in Cornwall, business entrepreneurs with Cornish
relevant market knowledge, successful small-scale commercial radio expertise, committed youth media
brand experience and one of the radio industry’s most successful national commercial operators.
Rolf Munding – Non Executive Chairman
A local success story, Rolf owns a number of local, national and international businesses from his
home in Cornwall, ranging from the Green Room Music Venue in Redruth, to Duffs – a young fashion
brand. Rolf also manages a series of housing development investments throughout the county.
Ian Merricks – Launch Commercial Director
Ian has developed IMD into a successful operator within the youth media market. Ian has a longstanding
ambition to operate a new music radio station in Cornwall and has assembled an
exceptional team of professionals to launch and develop the station.
Managing Director – See confidential appendix
Cornish born and bred, our Managing / Programming Director has outstanding experience in radio
programming and management. Details have been submitted in confidence to Ofcom.
Martin Dallaghan – Launch Operations Director
Martin is a proficient Operations Director, overseeing day-to-day operations within IMD Group. With
a background in local radio programming and marketing, Martin is a specialist in youth media
business establishment and development.
Micheal Snaith – Non Executive Director
Micheal is an accomplished finance professional, and subject to the successful award of the licence
to IMD Radio Cornwall Ltd will be appointed to the board. Micheal is employed as the Director of
Finance for Northern Light Ltd.
Itchy FM has secured a Managing Director for the station, and this individual will also be appointed to
the board as an executive director upon award. A profile is included in the Confidential Appendix. In
addition this individual will be supported from launch by an experienced radio consultant. (See Staff
Structure for details)
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Rolf Munding
Non-Executive Chairman, IMD Radio Cornwall Ltd
Current directorships
Northern Light Limited
RAT Holdings Ltd
In 1977 Rolf started his entrepreneurial career with a partner, launching RAT which continues to this
day as RAT Holdings Ltd.
Between 1978 and 1996 RAT Holdings was involved in many activities ranging from motorcycle
retailing and import / export to high tech furniture design; from engineering and industrial design, to the
design and development of rowing training machines and music stands. All the above companies were
start ups which were developed and financed in group without outside help or financing.
RAT Holdings is still controlled and managed solely by Rolf and holds property in the centre of London,
which it has purchased and developed itself, including the successful development of a site in
Smithfield, London EC1 into the popular nightclub Fabric and the Smiths of Smithfield restaurant and
bar.
In 1991 he was approached by Merrill Lynch to head the property investment activity of a new Eastern
European Fund to be set up by them. Accepting this role led to Rolf quickly being entrusted not only
with property investment in the former Soviet Bloc but also with overseeing the general investment
activity in the former Czechoslovakia.
Rolf has continued to work in Eastern Europe on his own property deals and small industrial
investments as well as providing a consultancy service to a number of clients concerning cross border
strategies. Clients have included; Reed Elsevier, Ceti (The Central European Telecom Investment
Fund set up by Credit Anstalt and the World Bank amongst others), Hambros Bank, Art Production K,
Tesla Pardubice, Glencor, and Serco.
He operates the UK agency for one of the Czech breweries. The Kozel brand imported by Rolf is now
selling well in all J.D.Wetherspoon pubs. He has created two apartment complexes in Prague (300
appartments), now sold to the Czech Bank, and owns a brewery in the Czech Republic, producing
internationally renowned and sold lager.
In the UK, he is the largest shareholder of Duffs Extreme Sports Shoes and Clothing.
In Cornwall he has purchased and developed 11 apartments on Poltisco Wharf in Truro, buildings in
Redruth including a young music venue, apartments and neighbouring space for the radio station to
utilise should it prove successful in its application. He continues to develop property and business in
Cornwall including Wooden Hand Brewery, Falmouth’s Fairweather Wharf. Rolf has a significant share
in Vixpix Films, a documentary maker of both critical and cultural acclaim, recently making
documentaries on James Elroy, Kasparov and Abraham Lincoln.
Locally, Rolf was instrumental in closing the private financing for the £100M EDEN Project in Cornwall,
working on the successful bid to the Millennium Commission, as a very early member of the project
team which included only Tim Smit, Rolf and three others at the time.
Rolf manages his significant local, national and international business interests from Cornwall, where
he lives with his wife and four children (all at school in Cornwall).
IMD Radio Cornwall Ltd welcomes the extensive business launch and growth experience that Rolf has
developed over the last 25 years, alongside his indepth knowledge of the county and vision for Itchy FM
to become a focal point for young social development within the county.
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Ian Merricks
Group Managing Director, Interactive Media Developments Ltd (‘IMD Group’)
Current directorships
IMD Radio Cornwall Ltd
Interactive Media Developments Ltd
IMD Radio Ltd
Itchy Media Ltd
TrustTheDJ.com Ltd
Amberland Ltd t/a University Media
The Student Planner UK Ltd
In just eight years Ian’s entrepreneurial flair has seen him build a network of media and marketing
companies that are all active within the youth market. Having established himself as an events
promoter, Ian moved into the radio industry in 1998, when he founded an award winning radio
consultancy specialising in launching commercially viable youth and student radio stations.
Through his consultancy business Ian was active in numerous student and youth trial stations, including
Plymouth’s ‘Eclipse 106’ in 1999 with partners MTV, Galaxy and Ministry of Sound. It was at this point
that Ian wrote to the Radio Authority expressing his interest in a new, youth-focussed radio station as
an alternative, additional service to Pirate FM.
In 2000, Ian met with Martin Dallaghan the then chair of the Student Radio Association, and they
decided to merge the radio consultancy with Martin’s student radio promotions company. The
combined partnership entity traded as ‘IMD’, providing national brands with strategic consultancy
principally around the combined use of radio and marketing promotions to target the youth / student
market.
IMD managed a number of media consultancy assignments culminating in Ian taking the role of Head
of Local Sales for talkSPORT in 2001 / 2002. Ian also worked with EMAP Performance evaluating
acquisition opportunities in youth ILR. In April 2002 IMD acquired the loss-making publishing business
The Student Planner, the UK’s largest publishers of branded academic media. Ian’s commercial skills
enabled the business to quickly return to profitability. The business produces advertiser funded student
diaries for 100 colleges including Cornwall College and boasts a 53% market share of 16-19 year olds
in full-time, further education.
In 2003 IMD acquired another youth publishing business, Itchy Media, the UK’s best selling city
entertainment guides. Itchy produces 16 local editions, and IMD very soon added a Cornwall edition in
support of its radio ambitions in the county. Ian’s turnaround skills were again tested as he returned
Itchy to profitability within 4 months. In February 2004, IMD was incorporated into a newco for the
purpose of raising investment to fund growth, and Ian was appointed as Group Managing Director. Ian
has since negotiated a further 4 acquisitions, in events marketing, outdoor (poster) media, magazine
publishing and new media. Ian has also overseen the launch of IMD’s data and digital marketing
services unit and developed a strategy to apply for a number of new FM radio licences. Ian currently
oversees group business performance, managing 23 staff across two offices and a local media sales
force of six. He has successfully integrated recent acquisitions into the business.
Subject to a successful licence award Ian is looking forward to relocating to Cornwall to lead the
station’s commercial function from launch.
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Martin Dallaghan
Current directorships
IMD Radio Cornwall Ltd
Interactive Media Developments Ltd
IMD Radio Ltd
Itchy Media Ltd
TrustTheDJ.com Ltd
Amberland Ltd t/a University Media
The Student Planner UK Ltd
Martin has worked at board level across the media industry in radio, publishing & new media. Martin’s
unique combination of experience and entrepreneurialism has been instrumental in the development of
the IMD Group, specifically its marketing led approach to multi-channel youth communications.
Martin’s longstanding interest in youth culture (trend spotting and market perception), formed the basis
of his career in media management, and have been of huge importance in the development of IMD’s
portfolio of media.
In 1994 Martin founded an Event Promotions company in Oxford and ran a number of successful music
events in the Midlands in partnership with local venues and promoters. He launched a local listings
magazine for Oxford – “First Word”, which targeted students, tourists and the local community and
balanced the different interests of these groups whilst retaining a cultural and commercial edge. “First
Word” was notably the first publication to pick up on and promote the (now) internationally famous local
band Supergrass and a host of other local bands from the mid-Nineties’ Oxford music scene including
Radiohead.
In 1996 while studying at University in Leeds, Martin noticed an opportunity to develop a successful
commercialised Leeds Student Radio - “LSR FM”. In doing so he created a successful commercial
model for the development of commercially viable Student Radio stations, through exploiting
Sponsorship and Promotions and on-campus activity. Using this unique approach, Martin was able to
create full time employment for station staff and oversaw the station winning an unprecedented three
BBC Radio One: National Student Radio Awards.
Martin was subsequently elected National Chair of the Student Radio Association and as a member of
the Radio Academy Council worked with the Academy to introduce the Development Officers position
and solidify student radio as a talent recruitment pool for the radio industry. Martin worked on a number
training initiatives with the large PLC radio groups as well as advising countless student / youth and ILR
trial RSL’s on programming, operations and commercial development.
Upon leaving university Martin launched “RED10”, a red-brick university student radio sales and
promotions business, working with corporate clients such as Visa International to target the student
market. In 2000 RED10 and Ian Merricks’ radio consultancy came together, from the realisation of their
shared objectives.
Martin has undertaken a variety of external media development consultancies during his period
developing IMD, most notably with Fast Web Media, owners of Barclaycard’s official website for the
Football Premiership and Tiscali / United Media’s Line One Internet (ISP/Portal), typically charged with
securing new sustainable revenue streams.
Within IMD, Martin has led all group operations including many areas relevant to the establishment of
Itchy FM such as market assessment for regional media sales, staff recruitment and management, plus
operational turnaround of both the Student Planner and Itchy businesses.
Martin will use his cross media business experience to help launch a new and exciting brand of youth
radio in Cornwall.
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(b) Proposed Investors and Shareholding Structure
[i] Name and addresses (the latter may be submitted in confidence) of all existing or proposed
shareholders:
IMD Radio Cornwall Ltd
Shareholder: IMD Radio Ltd* Northern Light Ltd
Percentage: 75%
Address:
IMD Radio Ltd
IMD Group
White Horse Yard
78 Liverpool Road
London, N1 0QD
25%
Northern Light Ltd
Clive House
12-18 Queens Road
Weybridge
Surrey, KT13 9XB
Reg’d No. Company No. 04987666 Company No. 02349155
* IMD Radio Ltd is a (100% subsidiary of Interactive Media Developments Ltd t/a IMD Group).
[ii] Total number, class / classes of share and issue price of shares (specify voting, non-voting,
preference, other etc)
Issued share capital consists of 100,000 £1 ordinary shares with identical rights issued at par.
(iii) All voting shareholders and holders of 5% or more of non-voting shares and loan stock should be
named. State the number class / classes and price of shares to be issued to each investor.
Shareholder No. of shares Price of shares
IMD Radio Ltd 75,000 £1.00
Northern Light Ltd 25,000 £1.00
(iv) Outline any shareholder agreements or arrangements which exist
The board intends to adopt a shareholders agreement which will prevent premature sale of company
shares as outlined in Section E (Funding).
(v) Where a corporate body other than a current Ofcom licensee will be providing 30% or more of the
required funding, details should be given of its directors and main shareholders, and of its activities.
IMD Group - Shareholder Summary
Interactive Media Developments Ltd t/a IMD Group is owned by the following shareholders:
o Ian Merricks
o Martin Dallaghan
o Tim Schoonmaker – One of the most experienced senior radio and media executives in the industry,
Tim has invested personally in IMD Group. Tim oversaw the growth of EMAP Performance to a
£147m turnover, responsible for 16% of EMAP Group turnover and 20% of profit.
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o Christopher Weston – A serial high net worth investor in the SME sector, Christopher holds 28
investments, across a range of industries including publishing (Infoconomy Magazine) and radio
(Global Radio News) and previously ran a successful business auction business in and from
Par, Cornwall.
o Far Blue CI (Guernsey) Limited – The investment vehicle of Towergate PLC
Its directors are:
Ian Merricks – Group Managing Director
Co-Founder of the IMD Group and experienced in creating and building shareholder value in youth media
and marketing businesses through organic launches and turnarounds of underperforming acquisitions. Ian
worked entrepreneurially within the music industry between 1995 and 1998 as an events promoter / band
manager, and from 1998 in a variety of commercial development consultancy roles, at ILR and latterly
talkSPORT and Impact (The Wireless Group’s sovereign sales house).
Martin Dallaghan – Group Operations Director
The last decade has been spent in the youth media and marketing sector. Martin has launched several
small, successful businesses, acted as chair of the Student Radio Association and been involved in the
preparation of a number of licence applications and countless RSL trials and student broadcasts. Martin
runs the day to day operations of IMD Group.
Piers Linney – Non Executive Director
Piers Linney is a qualified solicitor with particular experience in corporate finance and private equity and was
a Senior Associate in Credit Suisse First Boston’s M&A Group before leaving to start an online marketing
and research business for the pharmaceutical industry. Until December 2000, Piers was a board director
and the COO of TrusttheDJ, a music, radio, youth marketing and talent management company founded by
Matthew Bannister (ex-Radio 1 controller and #2 at the BBC) and funded by Virgin, Bear Stearns and
Bridges Community Ventures. Piers now acts as CEO of media investment boutique Towergate PLC and
acts on a part-time basis as IMD’s Corporate Development Director, overseeing strategic growth and finance
issues.
Business activities
IMD Group’s whole focus is on working with our clients to credibly reach the youth market. IMD owns
various youth media publications, and each of our brands are market leaders in their respective fields
('Itchy' - the UK's best selling city guides; 'The Student Planner', paid for distribution to 53% of all
college students). We have a youth broadcast / radio unit (supported by EMAP), and we have an
excellent below-the-line unit which manages client events, PR, sampling, data capture and research.
Performance
The combined assets owned by IMD Group will have turned over around £1m by December 31 st year end.
A DTI high growth business, IMD projects organic turnover of £2.6m next year, and a net profit of c£0.5m.
This ignores any contribution from IMD Radio Cornwall Ltd, and excludes any of the planned acquisitions we
have planned post IPO, which we anticipate will at least double turnover.
(c) Involvement of the Applicant in Specified Activities
Neither the applicant nor its participants (including shareholders) are involved in any of the Specified
Activities.
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Financial and Business Plan
(d) Overall financial strategy
Provide a concise summary of how the applicant considers it is able to establish and maintain,
throughout the licence period, its proposed service, and how this licence fits in with the
investors' strategy.
IMD Radio Cornwall Ltd is confident that it can establish and maintain a successful and distinctive
music radio service in Cornwall. We have extremely experienced individuals to launch and programme
the station and, most importantly, we know that the audience offers considerable scope for commercial
success. Our target audience is not only the significant number of Under 35s who currently favour BBC
Radio 1 over Pirate FM, but also the 1.4m 1 seasonal leisure visitors aged between 15-34.
We are confident in the success of our chosen format because of our extensive trail of research,
consultation and testing over the past five years. It has clearly demonstrated that a radio station which
effectively targets young adults will not only extend listening choice, but will win receptive audiences
and enjoy commercial success. Collectively our investors and directors have relevant track records in
the Cornish business community, youth media, local and national radio, and long-term commitment to
their investments. We have committed relevant resource to the station and have a compelling crossmedia
strategy for developing and marketing the brand.
Itchy FM’s strategy is based on the following criteria and underlying market research:
Developing a credible, relevant and distinctive radio station which is clearly focused on targeting the
audience most underserved by local commercial radio - Under 35s in Cornwall;
Pirate FM’s primary audience (71%) is aged 35 or over, 2 making an older targeted service difficult to
sustain, especially with the added competitive presence of a strong BBC Radio Cornwall;
A detailed business model based on extensive research, testing and analysis which includes a
market gap study, an NOP tastes and interests survey, a monitoring study, full RAJAR analysis, a
local revenue study and ongoing local consultation, over a three year period;
Delivering a powerful and effective youth brand which benefits from marketing partnerships, well
defined brand values and the ability to integrate with existing youth media and lifestyle strands in
Cornwall;
A strong understanding of the marketplace and target audience, supported by investors, board and
management which combine to provide outstanding experience and understanding across youth
media, marketing and commercial radio;
Strong audience demand based on NOP research 3 which shows that 64% of adults under 39 were
likely or very likely to listen to a radio station with our proposed format – the strongest interest
coming from BBC Radio 1’s audience;
Realistic audience projections, and revenue assumptions and extensive collaboration with potential
advertisers, sponsors and brand partners;
The ability to complement traditional advertising revenue with untapped revenue from sponsorship
revenue, promotions, events and brand associations;
Considered movement into youth ILR from one of the UK’s fastest growing youth media and
marketing specialists, with extensive radio expertise from the management and shareholders.
1
Source: Cornwall County Council, The Cornwall Tourist Board & The Cornwall Association of Tourist Attractions
2
Source: RAJAR quarter ending: 09/04
3
Source: NOP Survey, Edison Media Research, November 2004
8

Market Opportunity
BBC Radio 1 consistently performs strongly in Cornwall but is completely unable to represent the
“Cornishness” associated with the county’s distinct identity. Locally, Pirate FM continues to include a
significant proportion of its music output from pre-2000, and even pre-1990. On the day of our
monitoring its second highest genre was 1980’s music. This format, not surprisingly attracts a large
majority of its audience from the county’s over 35s. Indeed Pirate FM is still very much a traditional fullservice
ILR which, our research suggests, narrows the market gap at the older end of the market.
We have identified, and our research has substantiated, that in a county where 15-34s make up 20% of
the population, and where the vast bulk of listening hours to the heritage ILR are from 35+ adults, that
there is a compelling case and opportunity for a locally focussed, energetic music radio station. A radio
station targeting this demographic will clearly complement Pirate FM which, although very successful in
achieving a wide audience base, primarily appeals to a 35+ audience in its programming. Itchy FM will
achieve its reach forecasts by focussing predominantly on the county’s 106,841 local 15-34 year olds.
Business plan and assumptions
After having satisfied ourselves as to the likely success of the station with our target audience through
external research, we have also thoroughly investigated revenue levels, cost base and audience
marketing requirements. We believe that through a realistic capitalisation of the station, and well
planned staff structure plus a revenue plan encompassing local and national revenue the station will be
well constructed to ensure its long-term financial sustainability. The business plan for IMD Radio
Cornwall Ltd is underpinned by five basic assumptions:
1. Effective financial management
2. Audience attraction
3. Sponsorship & Promotions specialism
4. Non-traditional revenues
5. Integrated approach
Due to the limited amount of youth media within the county, IMD is convinced that a media channel as
significant as Itchy FM will be a “must-buy” for Cornwall’s youth communications market, with a range
of activities centred around the station, from local spots to sponsored events, from programme
sponsorship to outside broadcasts, plus non-traditional radio revenue and brand extension activity
(database rental, listener downloads, merchandising, listener publications, station CDs etc). This
commercial innovation reflects the changing face of commercial radio as it evolves to compete in a
multi-media on-demand world and IMD are confident this tactic will create strong margins within this
radio station.
We passionately believe that our genuine positioning of Itchy FM at the heart of the Cornwall youth
experience (both local and visiting) will enable the station to maximise client spend and trust from
launch.
Effective financial management
Commercial management team to launch the station
Our team has extensive experience of running small, profitable media businesses. Our cautious
approach to running the business on a sensible and scaleable overhead will be implemented via a team
experienced in launching / re-launching youth media businesses. We intend to make good use of
freelancers, shareholder resources, function outsourcing and extensive local relationships / goodwill
generated over the last few years. The launch team, lead by Ian Merricks, has good experience of
prudent revenue forecasting, cost controls and revenue growth, plus inventory and brand development.
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Outsourcing and group services
Through the shareholders’ experience of running small but profitable media businesses, we recognise
the importance of keeping fixed overheads down, and ensuring scaleable costs. As such we plan to
outsource a number of aspects of the company’s operation to partners and certain back-office functions
to IMD Group.
As well as major marketing support, IMD will support the station with company registration matters and
have access to IMD’s experienced in-house creative design team, currently responsible for the design
and production of over 40 separate regional publications with a total print run of just under 1 million
books a year. This will ensure we have high quality visual branding for the station across the county,
whether in print or outdoor media.
Financial support (payroll, preparation of management accounts, analysis of debtor days etc) will come
from E-Financial Management Ltd, an outsourced financial management specialist. EFM is lead by
Gary Jesson, former Ernst & Young Auditor to Chiltern Radio PLC, and is currently retained by IMD
Group. Annual audit work will be undertaken by Grant Thornton, and prepared on a Group basis.
Outside Broadcasts and Promotions
Itchy FM will sub-contract the management of any outside broadcast, promotion or live music event to IMD
Group’s events marketing unit. Targeted support and events management expertise will be made
available to the bid at cost through the provision of experienced promoter Ben Hylands, IMD’s Head of
Events Marketing in an advisory role as necessary.
Web, IT & SMS partner
Itchy FM has contracted out website design and hosting and all IT matters to Carbon Chip, a West Country
based digital and new media consultancy which has supported our radio ambitions since we shared
premises with them for the 1999 RSL. Carbon Chip has provided digital development for youth
brands including Glastonbury Festival and Bacardi Breezer. Their experience and local know-how will
ensure we are competitively advantaged against national music stations.
Elsewhere, IMD Group’s digital and data unit, ‘Mindset’, manages a range of interlinked and crosspromoted
niche youth websites (“Digital Youth Network”) and Itchy FM will benefit from shared content
(listings, competitions etc) enhancing our audience’s use of the station site plus national online advertising
sales.
Commercial Production
Itchy FM will employ its own producer with dedicated production facilities. High quality production is critical
to the success and fast-moving young sound of our station and our budget provides for studio equipment
for the production of station imaging and commercial production. Our in-house producer will play a vital
role in the creative selling process and will have the opportunity to understand the brands from a local
perspective. Commercial Production income is based on 7% of local revenue. We have assumed costs of
30% to voiceover artists and scriptwriters. This makes commercial production a profitable operation, even
taking into consideration the costs of our in-house producer and some additional production resources.
Transmission facilities
NTL are Itchy FM’s preferred provider of engineering facilities. It is anticipated that we will reach an
agreement with NTL for the provision of these services through a Total Broadcast Contract, the provision
for which has been included in the business model, allowing for dual transmitters and separate feeds to
both to enable the option of split advertising breaks.
Sales training
Ian Merricks has exceptional radio and media sales skills, having sold across RSL, ILR and INR
stations, and within national radio sales agencies. He has trained more than 20 local radio sales staff
in ways to sell commercial airtime, programme sponsorship, on-air promotions and off-air activity. He
worked as a commercial consultant to the Student Radio Association and has spoken at Radio
Academy events on commercial activity for small-scale stations. His 1998 Operations Manual on
‘Maintaining Commercial Youth Radio’ played an important part in Ian’s commercial radio consultancy
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usiness being awarded a Shell Livewire Regional Award for Innovation. IMD has allocated time and
resource at a group level to support the training requirements of the station and its sales staff at launch,
and Ian will deliver this personally in his remit as Launch Commercial Director for Itchy FM.
Ian’s sales training programme will be supported by input from the station’s Managing Director, who
has experience of training 15 S&P staff, and Martin Dallaghan who has day-to-day management
responsibilities for IMD Group’s nationwide local sales force.
Audience Attraction
A fundamental requirement of the station is to attract and retain young listeners.
o Local audience: Build a solid base of local young adult listeners achieved through extensive
community interaction, credible marketing and an electrifying mix of music and speech
programming
o Visiting audience: Create an effective marketing plan to maximise exposure to Cornwall’s
unusually high profile of seasonal youth leisure visitors
From our market gap research and tastes and preference study, we are confident that our fresh, pacey
programming mix and innovative marketing activity and events programme will enable us to achieve a
healthy reach. Our audience lives, works, studies and spends in Cornwall. They are a valuable
audience for a number of businesses to reach, although other media does not communicate effectively
with this audience. To achieve our audience forecasts we have planned extensive marketing to reach
this audience, and from the station’s launch in summer 2005 we intend to take market share directly
from BBC Radio 1, thereby enabling Itchy FM to benefit from new listeners to commercial radio.
The station’s core year round audience will attract advertising from numerous youth targeting
businesses. We have undertaken direct research with 50 local businesses to determine the probability
of their use of Itchy FM as a marketing channel in their efforts to communicate with a youth customer
base. 58% of the businesses we researched and contacted expressed interest / definite interest in
considering Itchy FM as an alternative marketing tool. These included:
Cornwall County Council
Carrick District Council
Fistral Blue
Follett Stock
Hotel Victoria & Health Club
Flicks
60 One
Dude Bars
Tall Trees
The Chy Bar / Koola Bar
L2 Ltd
The Walkabout
Fosters Club & Pub & Steak House
Senor Dick's Mexican Restaurant
Buzios Cafe Bar Restaurant & Pool Hall
Berties Club & Pub
Red Square.
“We see a youth radio service as a great channel for Connexions, and other local organisations that
work with young people, to promote the opportunities available to them”
Melanie Salmon, Marketing Co-ordinator, Young People
Connexions Cornwall and Devon
We have researched the local client base of Pirate FM (source: MMS) and from management’s
knowledge and research into the County’s advertising market, we are confident that many of the clients
listed would certainly consider advertising on a younger focused station. Due to the large number of
small businesses in Cornwall, it is essential that we can offer reasonably priced campaigns to local
advertisers, usually split by East or West Transmitter site (as per Pirate FM) to reduce wastage, and
ensure that the campaign’s work for these businesses to drive repeat business. This will also enable
Itchy FM’s sales force to up-sell participation in Sponsorship and Promotions or other opportunities for
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audience interaction (on or off-air). Our local sales strategy is set out in the Financial forecasts section
of this application.
Visiting audience
In September 2004, Cornwall County Council reported that ‘Nearly Five million visitors are now
attracted annually to Cornwall. Only London and Devon attract more. What’s more 29.1% (source;
Cornwall Visitor Survey Annual Report 2002 – 2003) are 16-34 – nearly 1.5 million! While RAJAR
cannot (yet) register these listeners we are confident that local and national clients will recognise that
our extensive marketing and profile will result in a vast majority of this transient youth audience tuning
in to ‘Cornwall’s 105 - 107 Itchy FM’.
This transient market has such an impact on Cornwall’s economy that we are certain that the station
will attract significant additional advertising revenues from this audience.
This, alongside the county’s unique Cornish identity makes the station unusual and IMD Radio Cornwall
believes its approach of upbeat presentation, first class marketing and well tested mix of hit modern
music will result in a high 15-34 audience.
We are aware that in order to attract the attention of short term non-local youth audience, we need to
ensure that our marketing is very prominent and targeted. We recognise that this marketing
requirement should have a positive effect on revenue potential, as we are able to invite our advertisers
to participate in this essential audience marketing activity, sponsoring station events and other below
the line marketing initiatives. Our commercial research supports this assumption, as local and national
advertisers have stated their enthusiasm for being able to benefit from the kudos of sponsoring a lively
young station’s events and activities.
IMD’s experience of presenting youth facing media and marketing opportunities to national youth
targeting brands alongside specific national advertiser research has identified a client base with an
appetite for using Itchy FM and its events programme to credibly interact with this potential “summer
time” audience of 1.5m young people.
Itchy FM also benefits from the national recognition of its brand, representing trusted youth opinion.
Itchy’s Guide Books (now in their 6th year) are sold across 850 retailers throughout the UK. Aside from
a launch sales uplift, an average of 20,000 books are sold at retail each month, plus distribution of
books free of charge on campus to students, and through national bulk distribution with the broadsheet
newspapers (Independent, Telegraph etc). It is the UK’s best selling city entertainment guide and its
distinctive editorial tone help to position the book series as an “insider’s guide”. This brand reaches
around 1.5m young people across 16 UK cities, as well as the Cornwall county edition. We are
confident this brand recognition will assist our aims of attracting a visiting audience, and have based
our on-air editorial sound on Itchy’s distinctive cheeky, fun tone.
Seasonal sales uplift
Our wide range of planned events activities will attract both audience and local and national
advertisers. Our biggest events will take place during the summer season.
Many local businesses specialise in servicing the summer market. Cornwall’s Community Strategy
states that “The service industry which caters for both the resident population and tourists dominates
Cornwall’s economy”. This is no surprise - “Newquay has a population approaching 100,000 in the
peak of the summer – five times its resident population.”
“Your station targeting a youth market would have great advertising potential during this period, and like
most other businesses in Cornwall would generate the majority of its revenue during the summer.”
Tony Townsend, Marketing Manager, PAVH International Ltd
(Newquay's biggest entertainments company)
12

The seasonal uplift in listener volume will also serve to increase consumer revenues as more young
adults are given opportunities to interact with the station, through SMS features, merchandise or
commercial, branded ‘spin-offs’.
Sponsorship & Promotions Specialism
Itchy FM will align its marketing activity with the objectives of local and national youth targeting brands
to introduce addition revenue to the station through sponsorship revenue. Our research has shown that
numerous brands are interested in utilising Itchy FM’s integrated marketing plans and events activity to
access Itchy FM’s local and “holidaying” audience, and IMD’s team have widespread experience of
delivering this type of integrated brand marketing activity.
Local sponsorship opportunities
Local businesses will benefit from extending their relationship with Itchy FM into live events, Outside
Broadcasts and presence at station club nights / new music gigs. Several local businesses have
already expressed interest specifically in this area of the station’s audience promotion, making us
confident that Itchy FM’s promotions and parties will be well-funded and promoted, and this will
increase their appeal to large sections of our audience.
Co-branded events
We have identified an excellent market opportunity for national brands to benefit from utilising the
station and its large events plans to communicate with the massive number of young leisure visitors
spending time in Cornwall each summer. This is one of the key ways that we believe the station will
achieve significant additional revenues, which would be unavailable to applicants targeting an
indigenous older population. Each year, national youth targeting brands plan advertising and marketing
activity to reach their audience when on holiday (for example in Ibiza) or at the festivals (Glastonbury,
Reading, Leeds etc). In our experience, over the last few years brands have been allocating more of
their budgets to this kind of experiential activity, as a way of achieving brand differentiation. IMD Group
is in regular contact with these brands and is certain that with Itchy FM at the centre of the Cornwall
youth experience, Cornwall will be added to the same national, summer-time media planning schedules
as Ibiza and the Festivals.
"Itchy FM's Cornwall events, supported by the station, will be of major interest to iris as we are always
looking for new ways to reach the diverse youth market and bring campaigns to life for our many youth
targeting clients"
Claire Glennane, Group Account Director, iris
(Marketing Communications agency for Department for Transport and Department of Health)
The Cornwall Visitor Survey also recognised the growth of festivals as being an important driver of
visitor attraction and we are confident this fact supports our live events plans, giving our station
additional opportunities to convert visitors to the county into listeners, and into revenue.
In the five years since IMD proposed the Cornwall station opportunity, an increasing number of national
brands have begun to host or sponsor youth targeting events in Cornwall. The Daily Telegraph, Nuts
Magazine (IPC) and Wrigleys for example all had heavy brand attendance and sampling activity at
Fistral Beach in Newquay this August bank holiday for the Quiksilver Boardmasters Surf Competition.
IMD has researched this market gap and concluded that a marketing focussed youth communication
channel such as the radio station would become a focal point to coordinate this type of activity, using
local market knowledge and the station’s profile and promotional ability to enable brands to access this
massive visiting youth audience. We see this as a separate proposition to that of our national sales
agency, selling national spots to radio buying agencies on a CPT basis.
13

We have presented a number of key national brands with some of our plans for station activity,
including beach parties, festivals and new music tours, centred around the busy summer months, and
received a number of positive responses, which are available on request.
Our ability to link professional event management with radio promotions, outside broadcasts, advertiser
funded programming features, spots and sampling makes Itchy FM a valuable component of any
national youth targeting brand’s summer campaigns. Furthermore IMD Group with its sales, events
and content development staff of 23 is uniquely placed to direct this spend, and manage these
campaigns on behalf of national clients. Our recent national client roster includes Mini, Siemens, The
Times, Bacardi and National Express. Our account handling team oversees relations with all of the
major media agencies in London and our regional staff and Northern office maintain similar agency
relations within the regions. Only IMD can present the required levels of 360 0 campaign planning,
implementation and fulfilment to gain the confidence of national and local brands looking to engage with
Itchy FM’s Cornish audience.
We are aware of RAJAR’s weaknesses at identifying any of the additional visiting audience, but our
research has shown that national clients (rather than their media buyers) fully recognise that through
strong brand marketing for Itchy FM within the county, and for the Itchy brand nationwide, it is highly
likely that a large proportion of the summer influx of young people will be tuning in, attending our events
and meeting our “branded” sampling teams throughout the summer months. Furthermore we intend to
commission additional non-RAJAR research into unprompted brand awareness for Itchy FM and our
events, and their sponsors, during the summer months, to reassure national brands of the
accountability of both on and off-air activity with Itchy FM in Cornwall. This will be required as this is a
unique county station with an unusual audience and composition, which needs an equally tailored
approach to its operational and commercial management.
These events will become central to both our summer time additional revenue plans and our year-round
local audience marketing plans. With regular high quality summer time events, we will ensure
“Cornwall’s 105 & 107 Itchy FM” is a familiar Cornish brand and essential frequency for the local and
visiting youth audience. These professionals have a complete focus on achieving these goals across
IMD Group, and this presents Itchy FM with an unmatched ability to access very specific skills, which
may otherwise be deemed peripheral to a local radio station.
Non-traditional radio revenue / range of inventory
IMD Radio Cornwall will multiply station revenue opportunities through developing effective nontraditional
radio income streams beyond merely selling spot advertising to predominantly local
businesses.
We recognise that through integrating conventional commercial radio sales expertise with other
revenue-generating activities tailored specifically to the uniquely underserved younger radio listeners of
Cornwall, IMD’s Cornish youth radio station can attain early profitability and will become a high margin
long term asset for its shareholders.
These ‘non-traditional’ revenue and audience marketing opportunities will be supported by IMD’s expert
team; with station events, marketing strategy and sponsor attraction assisted by IMD’s Events
Marketing Manager, Ben Hylands and Advertiser Funded Programming opportunities presented to
national clients by Rob Wood, IMD’s Head of Content Development.
For several years, IMD’s management have presented commercial radio as an integrated marketing
opportunity, selling trusted access to a defined demographic rather than just selling radio spots. This
philosophy has been successfully implemented in IMD’s wider business emphasising our confidence of
making this local youth station a commercial success. With the station at the epicentre of a client’s
youth targeting activity, we will offer clients a range of (traditional and non-traditional) marketing options
to enable effective audience interaction, including:
14

This arsenal of advertiser-aligned marketing options will not only help to establish and reinforce the
station’s credibility and proximity to the audience served, but also generate multiple valuable revenue
streams for the station. Through maintaining year round contact with our clients we will be well-placed
and well prepared to continually attract marketing spend into the station’s range of revenue channels.
IMD Radio Cornwall Ltd has adopted a series of strategies to maximise income within each of these
nine revenue units. The revenue expectations for each business unit are detailed in the Financial
Projections section of this application.
1. Local Advertising
Sales
2. Events
Sponsorship
3. National
Advertising Sales
4. Advertiser
Funded
Programming
Data
capture &
data sales
Station
branded
publications
Consumer
revenue
(downloads,
tickets, SMS
interaction)
On-air
promotions
Local spot
revenue
IMD
Radio
Cornwall
Ltd
Show
sponsorship
The mainstay of local radio stations, Itchy FM’s local advertising will be
sold by a team of 4 sales executives, under the co-ordination of a
seasoned Sales Manager. The staff will benefit from extensive training
provided by the Launch Commercial Director and IMD’s experienced
radio and youth media sales team.
Station
branded
events
(own)
National
spot
revenue
Advertiser
Funded
Programmes
Itchy FM will benefit from a dedicated S&P/Marketing Manager, whose
responsibility will be to sell sponsorship for station managed and station
supported events. This will range from beach parties to festivals, from
club nights to live gigs. The implementation of the events activity will be
supported by IMD Group’s Events Marketing team.
National spot sales will be outsourced to a professional radio sales
agency. At present we have held discussions with EMAP Advertising,
Impact and Opus although no final decision has yet been made.
Advertiser funded programming is an emerging area of radio revenue
growth. Radio production companies such as Unique and Somethin’ Else
have made good progress in introducing the concept to brands. IMD
already offers brands a Content Marketing service, licensing existing
content or commissioning bespoke content to local and national
businesses. The Head of this department is experienced at enabling
brands to utilise content / music as part of their marketing mix, and as
such IMD will provide this national client contact service to the station.
15

5. Show / Feature
Sponsorship
6. On-air
Promotions
7. Station
Publications
8. Data Capture and
Preference Data
Sales
9. Consumer
Revenues
(Downloads,
tickets, SMS
interaction,
merchandise)
Certain specialist shows and key daytime output will be made available
for sponsorship. In the first instance this will be sold by the station’s S&P
Manager. We have already held conversations with a number of
sponsors for shows we are proposing in our schedule.
One-off and ongoing in-show promotions will also be sold by the station’s
S&P Manager. Local clients will be encouraged to utilise these to extend
airtime campaigns and ensure differentiation of their message.
An area for brand and revenue extension, IMD Group’s expertise in
publishing nearly a million print media publications each year will be
made available to the station, enabling Itchy FM to develop station
specific print media (new music guides, listings, event programmes etc)
Data capture, data analysis and data sales (list broking and rental) are
fast becoming a growing area for media companies to develop expertise
as they build their levels of audience understanding and interaction.
Once this data has been collected, (whether through text promotions,
email communication or sampling at station events) there is an
opportunity to sell clients access to the data. Certain clients now plan
marketing and media spend based on expected levels of response or
Return on Investment, and as such data capture is becoming an
essential tool for media owners (such as EMAP) and their clients. IMD’s
data unit “Mindset” provides the understanding of Data Protection Act
regulations to ensure effective use of this data for both operational
(programme testing) and commercial use (opt-in sponsored email
newsletters, SMS promotions etc), and will advise the station on best
practice, and fair-pricing of data campaigns complementing airtime
activity.
With an expected year three audience of around 73,000 listeners, plus a
sizeable number of the summer leisure visitor market listening, we will
offer a variety of ways for listeners to purchase directly from the station.
Across IMD Group, we have expertise in selling publications and records
online, and we already have affiliate deals in place with TicketMaster and
TicketLine for the sale of event tickets, through a dedicated Itchy branded
ticket phoneline. The station’s live events programme lends itself to the
sale of station merchandise. Effective promotion of station competitions
and SMS promotions will help Itchy FM to grow its revenues per listener
through text revenues, more popular within our target demographic than
any other age range.
The launch commercial director and senior commercial team (sales manager and sponsorship
manager) will ensure all sales staff are well-equipped to propose the most appropriate marketing
channel to reach Itchy FM’s audience in order to ensure local client objectives are met.
Our consultation with organisations like Objective One, have revealed Cornwall’s traditionally
precarious economic position, and the steps taken to address this over the last four years, in an effort
to reverse the fortunes of this economy. IMD’s local consultation set out initially to determine likely
audience and commercial support for a youth targeted radio station. Along the way, we have come to
recognise that the station we launch in Cornwall has an even greater requirement than many other local
commercial radio stations to achieve its client’s objectives. Many of our likely clients are SMEs
(Cornwall has 18,414 businesses of which 70% employ less than 5 people) 3 and for these businesses
currently advertising spend is at best considered discretionary and at worse an unaccountable cost.
Through IMD’s approach to ‘needs analysis’ and ability to offer integrated marketing solutions based on
radio’s “close to me” audience relationship we fully intend to increase the success of client campaigns,
Our in-house producer will work with clients to develop their individual “sonic identity” or on-air brand
image. Our commercial team will have unparalleled skills in selecting the most appropriate station
marketing initiative for the client to promote their business / service / offer. We absolutely believe that
3 Source: Cornwall Enterprise, 2004
16

only through this genuine investment of time in a client’s business will local companies begin to trust
the new station and its commercial ability. When our clients recognise that Itchy FM (on or off-air)
enables them to reach a substantial youth audience and that their campaigns result in a direct increase
in sales / awareness / footfall, then we will have succeeded in positioning Itchy FM at the heart of
Cornwall’s youth economy. We have held numerous meetings with organisations such as Business
Link, Enterprise Edge, the Hub – Youth Business Network and Mid-Cornwall Enterprise Trust, as well
as the regeneration organisations working to achieve sustainable economic growth, in order to ensure
that Itchy FM is well utilised by local businesses.
We are incredibly conscious that only such an integrated approach will result in long term success and
profitability of the new Cornish station. IMD Group’s daily experiences with hundreds of local
advertisers support this fact, and the opportunities associated with offering clients a commercial service
far beyond traditional ILR spot sales.
Integrated approach
We fully intend to aggregate the various ways the station can add value to a client’s youth proposition,
and present this to clients in an integrated, easy-to-buy manner.
Our commercial strategy from launch will be to ensure that sales staff are well trained to identify and
understand varying requirements of our clients, ensuring that opportunities to offer a variety of radio
based marketing solutions, plus develop valuable additional sales and client trust are not missed. This
integrated approach has been developed successfully by IMD Group in its wider youth media activities.
When presenting to local businesses, our sales staff will be encouraged to listen to the client’s
requirements and then (whether entirely in-house, or alongside local strategic partners), we will define
an advertising / marketing / promotional strategy that will enable the client’s desires to be met.
This would always be centred around station activity (on or off-air) but could also include involvement at
station events, use of sampling, data capture or IMD Group’s other local youth media (50,000 Itchy
Cornwall Guides, 7,500 Cornwall College Student Planners, Poster sites at University leisure venues
and Inside+Out magazine) or via our relationships with local promoters (SW1 Productions) or venues
(including The Green Room music venue, Redruth, Cornwall's largest nightclub Berties, and the Koola
Bar in Newquay).
Additionally IMD Group employs local sales staff to manage client sales across its poster sites, local
guide books and branded diaries, and these staff would also be trained in upselling radio as part of their
available media mix. Although we would expect this referred activity to result in additional sales
opportunities, for the sake of prudence we have not relied on any revenue from IMD Group’s local nonradio
sales staff in Cornwall.
This integrated approach will extend to the manner in which the launch team will recruit and train a
multi-skilled team to establish the station.
Social Advertising Policy
Aside from the more traditional areas of the business plan, we have developed a pro-bono advertising
programme, in response to our local consultations. More so than in other bids the directors have been
involved in, Cornwall has some real financial difficulties as highlighted by its Objective One status. As
such, Itchy FM will offer certain clients free or discounted advertising. We have proposed this service
to a variety of socially focussed businesses or support groups, non profit organisations and local
charities with resounding success.
IMD has set up this Social Marketing Fund for the station to support not-for-profit organisations and
charities. We have presented our ideas to a series of local membership organisations whose members
are involved in youth support activities (Acorn Community Theatre, The Hub Young Business Network,
17

Enable in Cornwall, Mid Cornwall Enterprise Trust) and who would benefit from being able to offer their
members reduced or free advertising on the station.
The Social Marketing Fund will be allocated quarterly via applications made through the station’s
website bulletin board, as we believe this is less hierarchical that a ‘grand advisory board’, and more
in touch with networked culture. Allocation of the Fund (given in the form of a free monthly on-air
campaign) will be made to the most relevant project group.
The Community Advisors are identified briefly below. Further background on the Social Marketing
Fund and its infrastructure and Advisors is available on request.
Frances Truscott Regeneration Consultant, Future Perspectives Ltd
Trustee, Cornwall Theatre Company (Acorn Theatre)
Keltie Seaber Town Councillor / Millennium Green Trustee / Chair-secretary Padstow Youth
Project / Adult Education Tutor, Bodmin College
Ross Williams Founder, Cornwall Arts Marketing
Sally Turner Enable in Cornwall Ltd (Disabilities Charity), Project Manager
Whilst not revenue generating, we believe “Itchy FM’s Social Marketing Fund” will be well received by
the community, and will help to ensure that local grassroots efforts at improving the community for
young people are given the necessary promotion. It will also offer new membership supported
businesses subsidies on their first advertising campaigns, which we expect will drive initial trial of Itchy
FM and result in valuable repeat business.
This initiative is an example of how we believe Itchy FM will become a much-needed part of the
community, acting as a trusted route to interacting with the historically disenfranchised young adults in
Cornwall. As Keltie Seaber stated:
"This is exactly the sort of thing I would like to see happen, it
would make a great difference to Not-For-Profit Organisations in the county”
18

Station’s link with Investor strategy
Investor strategy summary
Interactive Media Developments Ltd (IMD Group)
IMD Group was incorporated in February 2004, as the parent company for a range of advertiser-funded
proven youth media channels. It raised six figure equity investment in July from very strong private
investors including Tim Schoonmaker, and has since gone on to acquire or develop a number of market
leading youth media or marketing channels. It has drawn together years of youth communications
experience and an unusual mix of skillsets giving the company a unique breadth of knowledge. IMD is
able to use its client expertise and understanding of the youth market to reduce the risks associated
with its commercial and corporate innovation.
IMD Group believes in communicating with a youth audience in a multi-channel manner. This may be
achieved via media content, marketing activity, and / or data driven consumer interaction. We have
assembled a leading youth media and marketing management team, and developed expertise in
delivering integrated youth media and marketing activities for a wide range of clients (recent client
campaigns across the IMD Group include Sony, Samsung, ScreenSelect, News International and
hundreds of local youth targeting clients).
Radio is the most effective means of communication in the youth market and reaches 80.4% of the
target youth market, whom, in turn, are spending 34% of their media day with radio. Research from the
RAB demonstrates that radio accounts for a higher share of the media day amongst 16-34 year olds
(34%) with 65% agreeing radio “is an important part of my daily life”.
Against this backdrop, IMD Group has invested in IMD Radio Ltd, to apply for targeted youth licences,
building on Itchy’s local knowledge, advertiser contacts and IMD’s abilities to manage small profitable
media businesses, and to buy underperforming youth radio stations, and turn these businesses around
(as per turnaround success achieved in other IMD acquisitions),
Our radio aspirations fit our strategy in youth media, and our integrated range of activities will help any
stations that we own reduce its reliance on pure local advertising, as well as offering each station an
improved audience marketing resource and ability to add value through cross-selling youth radio
sponsorship and promotions to our existing clients. This integrated approach extends the commercial
potential of stations, and our complementary media and marketing abilities can be utilised to increase
local young adult audiences, and grow revenue per listener.
UK youth ILR owned by large ‘full-service’ radio groups often results in bland programming and tired
marketing, and this is reflected in the creeping growth of BBC Radio One, at the expense of commercial
radio. Through focussing on youth ILR, IMD Radio Ltd has the ability to innovate quickly, due to its
proximity to the fast-moving tastes and desires of the youth market. This audience are heavy users of
MP3s, iPods, PVRs, multi-channel TV, mobile technology and increasingly, digital radio. We believe
our innovative approach to radio as a multi-media proposition will help youth radio to maintain its reach
within this multi-channel world through ensuring the continued relevance of local radio to this audience
and its advertisers, subsequently improving our stations’ profitability.
Northern Light Ltd
Headed by a very successful locally resident entrepreneur, Rolf Munding is active in developing
businesses, many with large youth appeal (Fabric Night Club, The Greenroom music venue, Duffs etc).
His strategy is to assist the station to maximise its reach and become a profitable local media channel
at the heart of the Cornish youth community.
IMD Radio Cornwall Ltd
19

The application’s shareholders expect the station to build local audience reach and hours, local
revenue, visiting audience awareness and national brand support.
The station will need to offer the maximum choice in new and established popular youth music and
relevant speech content in order to cater for the broad tastes of a local Under 35 audience. Beyond the
local audience, it is a unique factor that the station will also need to be well marketed to short term
leisure visitors in the summer months. We intend to make our local listeners ‘ambassadors’ of Itchy FM
and its work to grow the music, leisure and entertainment scene in Cornwall and for local listeners to be
proud of the interest shown in ‘their’ “Made in Cornwall” station from the transient summer visiting
audience attracted to Cornwall’s leading position in UK youth culture. Our commercial team will work
hard to ensure every revenue opportunity is fully exploited.
20

(e) FUNDING
The business will be capitalised at £750,000 in working capital and shareholder funded loan stock of a
further £100,000. This capital enables pre-operative expenditures including engaging key personnel as
necessary well ahead of launch. The business plan ensures the company will remain cash positive with
the support and expertise of established media and private investors. Such is their support and
commitment that a shareholders agreement will be put in place to prevent premature sale of shares in
the company. In addition to this market capitalisation and loan stock, the shareholders have all
expressed a further commitment to provide additional capital, should this be required, to support the
station’s successful transition from analogue to digital, in due course.
Investors are confident that Itchy FM’s strong brand, supported by IMD’s marketing skills and resources
are in line with the multi-channel environment. The cross-media brand approach will assist the station’s
transition from analogue to digital and multi-format broadcast.
Investor profile
IMD Group
An early stage, high growth youth media and marketing company, backed by private investors including
Tim Schoonmaker. IMD raised seed investment in the form of private equity in 2004, and is preparing
for an IPO onto AIM in summer 2005. IMD’s investors and management have expressed their intent to
support the growth of the business including its radio arm. It is IMD’s intention to capitalise the station
with shareholder equity, IMD has also arranged contingent funding in the form of lead investor
promissory notes, and held discussions with its bank (Barclays Media Centre) about offering the station
support if required. IMD’s ownership of the station is such that development capital for additional
business growth could be achieved through introducing a radio partner in due course, to further develop
the Cornwall station including full roll-out of the digital strategy for Itchy FM. IMD Group has ambitious
plans in UK youth media and marketing including growing in ILR, both as a consolidator and through
being active in youth-potential licence applications, and we have access to seven figure contingent
investment to achieve our goals in radio.
Northern Light Ltd
A UK group holding company with interests in a diverse range of sectors (property development, drinks
trade, TV production, fashion and other interests), its principal shareholder has demonstrated Northern
Light’s ability and commitment to support its investment in the station.
Sensitivity analysis of sales performance
We have undertaken sensitivity analysis to identify the impact of any failure to meet local revenue
targets. If local airtime sales were 10% or even 20% below that identified in the business model, IMD
Radio Cornwall would have sufficient reserves from its initial capitalisation and shareholder loan facility
to not require an overdraft during its first three years trading. In all other quarters during the first three
years the company would remain cash positive. This strong position is as a result of three key
assumptions detailed within the business plan; carefully planned, scaleable overheads, wide range of
commercial activity and strong market capitalisation by committed shareholders from launch. Our wide
ranging commercial research, emphasis on commercial management and experience at running small
profitable media and radio businesses has given us confidence in our prudent revenue figures
forecasts, and our business strategy enables the business to grow steadily without having problems
due to under resourced, and even allows for (excessive) local airtime underperformance over a three
year period, which we believe to be highly unlikely based on our thorough client briefings.
Furthermore, we anticipate that national brand activity will be a likely source of substantial high margin,
additional revenue as brands seek cut-thru activity to engage with a ready audience in a purely leisure
environment. Due to the ‘big ticket’ nature of these sales, we are confident that just slight overperformance
in this area will create substantial non-forecast income for the station, accelerating IMD
Radio Cornwall’s achievement of profitability.
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Details the sources of finance that will be used to fund the licence, under the following
headings:
Source Detail
Share capital £750,000 advanced by the two shareholder companies
Loan stock Investor funded loanstock facility of £100,000
Leasing / HP facilities
Aside from our property lease, we propose no direct leasing liabilities. There
is provision for contract hire on staff vehicles and a Total Broadcast Contract
with NTL for transmission equipment. All other equipment will be purchased.
Full details of the above can be found in our confidential financial appendix.
Bank overdraft No overdraft required is forecast within the first three years of trading,
although if it were required, it is likely that Barclays Media Centre would be
the provider.
Grants and donations None foreseen
Other N/A
Market Capitalisation
The capitalisation of IMD Radio Cornwall Ltd will be threefold. Recognising Ofcom’s statutory
requirement to licence operators with an ability to maintain the license, we are confident we can
illustrate that despite being a relatively young company, we have a solid investment base and therefore
an ability to ensure the successful launch and development of the Cornwall County license.
IMD Radio Cornwall Ltd
IMD Radio Ltd Northern Light Ltd
75% 25%
£562.5k £187.5k
Our primary source of funding for the market capitalisation will consist of IMD Radio’s shareholders
advancing funds proportionate to their equity stakes. Bank and accountants letters to confirm their
ability are available on request. All of the shareholders are one hundred percent committed to the
success and capitalisation of the station.
In addition, we have taken the supplemental step of identifying two alternative sources of immediate
funding should the station require (either as part of the initial capitalisation or in the event of any
[unlikely] commercial underperformance or if business development capital is required to exploit
adjacent market opportunities within Cornwall). Firstly, one of IMD Group’s lead investors has offered a
promissory note to underwrite the station should it be required, and secondly, through IMD Group’s
relationship with the Barclays Media Centre, we are confident that bank funding could be made
available as a short term solution if shareholder equity routes were exhausted. Barclays Media Centre
have banked IMD since inception and know the management and its shareholders well, and are familiar
with the radio sector and experienced in arranging radio finance deals based on the value of the licence
as well as the station’s trading performance.
With this sensible mix of scaleable overheads and multiple revenue streams targeted by a strong
commercial team, we are confident that IMD Radio Cornwall will become a profitable station with
excellent growth prospects within its first three years on-air.
IMD Group and Northern Light Ltd both have the resources and commitment to ensure the station is
given the support it needs to flourish commercially. This commitment is a continuation of the support
already demonstrated in the IMD Group management team’s ability to launch, turnaround, build and
22

sustain small scale youth media and marketing businesses and IMD Radio Cornwall Ltd’s investors are
confident that the secondment of Ian Merricks and Martin Dallaghan to oversee the launch of the
station , alongside deep radio experience from Mark Briggs and the Managing Director will result in a
station that out-performs the cautious revenue and reach targets set out herein.
(F) Financial and Audience Projections
The purpose of this section is to allow the applicant to demonstrate its understanding of the market.
The forecasts should be based on reasonable assumptions that are logically applied and justifiable.
The applicant should provide financial projections on an annual basis for the licence.
(I) Profit and loss accounts
(II) Projections for listenership ratings over the first three years of the service
(III) The expected impact of the proposal service on existing services, in listenership terms.
This section must include a full listing of the underlying assumptions on which the financial projections
are based, relating such assumptions clearly to other parts of the applications (e.g. proposed format,
extent of coverage area).
The applicant should detail how revenue figures were derived, distinguishing between local, national
and sponsorship revenues.
The applicant should also address the following issues:
(i) The target audience for the proposed service;
(ii) Projections for listenership ratings over the first three years of the service;
(iii) The expected impact of the proposed service on existing services, in listenership terms.
Revenue Strategy
A significant benefit of targeting an Under 35 audience is the opportunity to capitalise on a range of
non-traditional revenue streams that are currently under-exploited. IMD Radio Cornwall Ltd will adopt a
diversified approach to building commercial revenues, reducing its reliance upon purely local spot
advertising in favour of sponsorship, promotions, events, brand partnerships and advertiser funded
specialist programme production.
The IMD Group is exceptionally well-placed in its ability to provide strategic and operational input
relating to numerous non-traditional radio revenue opportunities such as client marketing services
(events, PR, sampling) and specialist programme production / advertiser funded programming. This will
be led by Rob Wood, IMD’s Head of Content Development. Rob was previously managing editor of
youth magazines JockeySlut and Sleaze[Nation], and is a respected consultant to brands and the
music industry on partnership marketing through content.
Despite its explosion in profile as a youth centre and destination, Cornwall’s established media owners
continue to target an older profile. This presents the opportunity for IMD Radio Cornwall to unite,
develop and promote a large number of disparate, but increasingly successful publications, venues and
thriving youth brands. Itchy FM will effectively corner this section of the communications market,
utilising a range of activities centred on the station.
Revenue summary
Itchy FM’s income will comprise local and national clients, buying spot advertising, on and off-air
sponsorship and other youth targeting marketing services ideally provided by a radio station.
Revenue composition
Year 1 Year 2 Year 3
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Net Advertising Revenue 382.3 463.7 543.6
Net Sponsorship & Co-funding (net) 193 200 220
Commercial Production Revenue 25.1 30.3 34.9
TURNOVER 600.4 694 798.5
These revenue streams are well researched; we have conducted detailed studies and consultation,
including ongoing discussions with intended brand partners and radio industry comparisons.
Summarised below are the methods we intend to use to ensure the forecasts revenues are attained.
o Local Advertising Sales
Advertising sales will be the backbone of the radio station, providing 60% of revenue. Commercials will
be priced at rates which are competitive, enabling local advertisers to utilise a medium which appeals to
young adults across the county. We anticipate selling up to 50% of available advertising airtime in year
one, ensuring airtime values are retained and output is not over-cluttered with spot airtime. We
recognise that many local advertisers, especially smaller independent businesses, will not see the
benefit of coverage across the whole of Cornwall. For this reason, our budgets make provision for split
advertising across the East and West transmission areas. This enables us to offer lower cost and more
effective advertising for our customer. Our revenue projections exclude any growth in ratecard,
favouring audience growth and client volume to grow local income. This is a prudent approach and
subsequently any rate-card increase possible within the first three years will serve to further increase
revenue and profitability.
o Sponsorship and Promotions (S&P)
With a dedicated Marketing / S&P Manager, considerable attention will be paid to ensuring promotional
output sits well within the overall station theme – making it most effective for both the radio station and
the client. Sponsorship will include regular live broadcasts from venues across the county in addition to
traditional feature sponsorship for the major programme strands such as the on-air guide and travel
news. Combined with events, summarised below, S&P will represent up to 35% of revenue.
o Events & Merchandising
Our revenue research study has demonstrated an excellent marketing and revenue opportunity from
national brands. Each year Cornwall attracts some 5 million visitors, of which 29.1% (1.4m) are young
adults. Our audience marketing and revenue plans dovetail through the creation of high profile events,
available for third party sponsorship. Whilst such events are not necessarily appealing to an
indigenous older population, they represent significant opportunity to key national brands wishing to
target young adults. Our recent NOP study shows that 73% of 15-39 local adults believe that Cornwall
does not have enough live events; 79% would definitely or almost certainly attend a mix of music
events promoted on radio - there is clearly a significant opportunity to develop this market. Further to
this, three in five of these people would bring friends from outside the area, a third of them bringing five
or more people. IMD has noted these brands have been allocating increasing budgets to this kind of
experiential activity, particularly in Cornwall. We have established a partnership with leading local
promoter SW1 Productions which will support this strategy, as we co-promote local gigs and music
events, utilising both local and national youth music artists. This particular commercial opportunity is
seldom available to non-youth stations due to the greater propensity of younger demographics to attend
regular gigs and club nights, as supported by our NOP research.
o Co-operative marketing / brand partnerships
In the five years since IMD proposed the Cornwall station opportunity, numerous national brands have
begun to host or sponsor events in Cornwall which target the 15-34 age group. For example, The Daily
24

Telegraph, Nuts Magazine (IPC) and Wrigleys all had strong brand attendance and sampling activity at
Fistral Beach in Newquay during this August Bank holiday Quiksilver Boardmasters Surf Competition.
We have researched the opportunity to work with national brands to build on existing events and
generate new activities. A number of brands have stated that they would support such initiatives. These
come direct from the brand promotions department and are not, therefore, channelled through national
sales. IMD Group regularly proposes client-responsive marketing solutions and adding Itchy FM’s
“brandable” opportunities will result in a low cost of sales for these “cut-thru” brand specific marketing
propositions.
“We'd look to use a youth station like Itchy to target regional sales through advertising. Currently there
isn't a suitable outlet for us in the South West.”
Hannah Neaves, Positiva / EMI
o National Advertising Sales
Itchy FM will contract a national agency to sell national revenue onto the station. Based on audience
predictions, consultation with agencies and comparisons against other similar sized radio stations in the
UK, we expect the station to book approximately £4,000 per month gross. We believe that first year
sales will be hardest, with a new brand and the first RAJAR survey unavailable. On this basis, we have
budgeted at approximately £3,000 per month in our business plan. The Launch Commercial Director
has worked extensively within the radio agency sales market and believes these figures are particularly
cautious, based on a low CPT and a slow client uptake, especially as a number of the leading media
buying agencies (Matters Media, Zenith Optimedia etc) have expressed significant interest in the young
adult reach that Itchy FM would deliver.
”I have read the proposal from Itchy 105 FM. Cornwall …does offer a significant incremental
opportunity which could be more explored than it is currently. Itchy FM could well be the platform for
achieving this.
We have had considerable success from Capital’s XFM format and if the station mirrors / builds on this
it has to be of interest to our business. I look forward to see what develops and would consider the
station in terms of potentially adding to our considerable radio roster.”
Revenue Study
Mark Riley, Media Account Director
The Carphone Warehouse Group
IMD conducted a revenue study, which was broken into both local and national revenue streams. 50
local businesses across the TSA were selected and were broadly balanced across the five major towns
of Newquay, Penzance, Truro, St Austell and Falmouth. The choice of business was made based on
their product or service being likely to appeal to young adults under 35 years of age. 38% of businesses
sampled had previously used Pirate FM. The study showed that 58% of businesses would seriously
consider using radio advertising to promote their business to adults aged under 35% - furthermore
58.7% would alter their marketing mix to enable them to spend more on radio whilst 13.8% would grow
overall marketing spend to accommodate the new youth radio station. An impressive 88.6% said they
would regard a radio station which was able to reach under 35s in Cornwall as ‘useful’ or ‘very useful’.
To identify promotions and event sponsorship opportunities, IMD also contacted a number of brands
which target 15-34 adults. Some of these brands have worked with IMD in both Cornwall and other
regions in connection with the Itchy Guide. This process took the form of consultations in which we
presented national brands with key plans for station activity, including beach parties, festivals and new
music tours, centred around the busy summer months, and a summary of some of the responses is
below. A full set of written responses are available to Ofcom on request.
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Our ability to link professional event management with radio promotions, outside broadcasts, advertiser
funded programming features, spots and sampling makes Itchy FM a valuable component of any
national youth targeting brand’s summer campaigns. Furthermore IMD Group with its sales, events
and content development staff of 23 is uniquely placed to direct this spend, and manage these
campaigns on behalf of national clients. Our recent national client roster includes Mini, Siemens, The
Times, Bacardi and National Express. Our account handling team oversees relations with all of the
major media agencies in London and our regional staff and Northern office maintain similar agency
relations within the regions.
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Audience Projections
Itchy FM predicts a total of 51,000 weekly listening hours in its first year, rising to 73,000 by the third
year of operation, which is a market share of 3% rising to 5% from years 1 to 3 respectively. Amongst
its target audience of under-35s, this represents a 16% market share by the third year.
Audience Projections Table Demographic Year 1 Year 2 Year 3
TSA Target 15-34 106,841 106,841 106,841
Weekly Reach 000's 49,085 59,604 70,122
Weekly Reach % 46% 56% 66%
Weekly Total Hours 314,245 441,102 546,256
Weekly Average Hours 6.4 7.4 7.8
Market Share 9% 13% 16%
TSA All Adults 15+ 412,912 412,912 412,912
Weekly Reach 000's 51,063 62,005 72,947
Weekly Reach % 12% 15% 18%
Weekly Total Hours 320,078 449,435 556,575
Weekly Average Hours 6.27 7.25 7.6
Market Share 3% 4% 5%
In determining our projections, we have looked to our research and additional data from published
audience figures, our monitoring study and a comparison against existing comparable UK commercial
radio stations.
Our research clearly shows that we can expect a
strong interest from launch. The November 2004
NOP Study shows that 57% of respondents stated
they would strongly like to listen to the type of music
radio station we propose, of which a quarter
predicted it would be their favourite station. A quarter
of all respondents in the sample said they would
listen only a little, leaving just 14% saying they would
rarely listen. Combined, this suggests that over 80%
of all adults under 39 would listen to Itchy FM, with
two thirds listening a lot.
There is strong evidence that Itchy FM can deliver its third year weekly reach projections of 66%
amongst 15-34 adults. They are deliberately cautious. In calculating weekly listening hours and share,
however, we have taken into account the existing commitment of existing listening from other radio,
mainly being BBC Radio 1 and Pirate FM which dominate the younger adult marketplace.
Whilst 57% of all respondents currently listen to BBC Radio 1 the most, only 3% of this audience said
they were “completely satisfied”, as opposed to a more loyal Pirate FM listener trend, of which only
11% said they were likely to make a new station their favourite.
The research shows Itchy FM will quickly attract listeners and further shows evidence of converting
these to loyal listeners. Our music-led, locally oriented output will offer a compelling alternative to
national output from BBC Radio One and also a choice for Pirate FM’s younger audience who currently
listen to a local service which is predominantly targeting an older audience.
Our RAJAR research will not track the transient holiday visitors which make up 1.45 million 15-34 year
olds per annum, according to County Council and Tourism data. We have made budgetary provision to
carry out supplemental brand recall / dipstick research to identify listening to Itchy FM. Whilst this will
27

e invaluable for our sponsorship, promotions and events revenue strategy, we have dismissed this
additional audience potential in the above predictions.
We have compared our Year 3 projections to published RAJAR results with other commercial radio
stations which also predominantly target young adults – although there is currently no radio station
which is exactly similar in size. The comparisons show that our predictions for audience growth and
share are realistic.
Station TSA
000’s
Year 3 RAJAR Comparisons
Weekly
Reach
000’s
Weekly
Reach
%
Avg
Hours
p/lstnr
Total
Weekly
Hours
Share
%
Brighton's Juice 107.2 285 43 15 7.3 314 4.3
107.6 Juice (Liverpool) 1,147 123 11 8.5 1,040 4
Fire 107.6 FM 283 48 17 5.8 280 4.4
Beat 106 2,616 429 16 7.6 3,254 6.4
XFM 104.9 10,435 572 5 5.9 3,370 1.6
Galaxy 102 2,257 379 17 8.7 3,308 7.2
Galaxy 102.2 2,025 319 16 7.4 2,357 5
Galaxy 105 4,175 952 23 7.6 7,246 8.2
Galaxy 105-106 2,091 544 26 8.2 4,466 10.5
Kiss 100 FM 10,435 1,527 15 6.4 9,814 4.5
Vibe FM (Galaxy 101) 2,125 258 12 7.2 1,869 3.8
Vibe FM 1,810 312 17 7.7 2,395 5.6
Source: RAJAR Sep-04 Release
Notably, Juice 107.2 in Brighton and Fire 107.6 in
Bournemouth are the closest in terms of size, albeit still much
smaller the Cornwall county coverage area. They show very
similar performance when compared to our predictions.
Itchy FM Year 3 Reach & Share
Comparisons
0%
Weekly
Reach
Impact on Existing Services
It is difficult to accurately predict where audience will come from. Our estimates show that Itchy FM will
find approximately 45% of its listening from Pirate FM, whilst a further 22% is likely to come from BBC
Radio 1; a further 33% is likely to come from more radio listening. (We have not factored listening for
other radio stations as this is slight).
Our research clearly shows that a third of adults under 39 would actually increase their radio listening if
a radio station such as we propose was available. This is understandable in a marketplace which
currently offers little choice.
We have used the quantitative data in our NOP Study and data from the latest RAJAR September 2004
release to estimate audience migration. Itchy FM predicts a 16% (year 3) share in the 15-34
marketplace, which is some 546,000 listening hours. Based on the full sample of the research (which
takes into consideration adults up to 39) our projections are likely to have the following effects:
20%
10%
Source of Share of Listening
Listening Hours % of Total
Pirate FM 246,000 45%
BBC Radio 1 120,000 22%
New radio listening 180,000 33%
Itchy FM
Brighton's Juice
107.2
Fire 107.6 FM
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Total Hours 546,000 100%
Based on these estimates, we have calculated that Pirate FM will see some 14% of its total 15+ share
in Cornwall (not including Plymouth), whilst BBC Radio 1 will see a 10% loss in its share of audience.
Other listeners
In addition to the 72,947 regular listeners we expect to attract by Year 3, we expect to capture a
significant proportion of the younger transient audience which forms nearly 1.5 million visitors to
Cornwall each year. Marketing and promotions centred around local events and brand partnerships will
ensure the Itchy FM logo and frequency is highly exposed to this vast audience potential. There is
every reason to anticipate that with effective marketing many of these young adult visitors will also tune
into “Cornwall’s 105 & 107 Itchy FM” during their stay. We will use dipstick research to measure and
evaluate this additional audience penetration.
Age based programming
Our audience projections have a clear focus on young adults aged 15-34, with virtually no audience
whatsoever in older demographics. Our NOP study surveyed 15-39 adults to allow us to monitor the
edge of our format focus. This enables us to firmly concentrate our marketing and programming efforts
most effectively, winning audience over from BBC Radio 1. Such a strategy also confines the inevitable
incursion into Pirate FM’s audiences to the younger demographic, who are least targeted in their
programming output.
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AUDIENCE MARKETING
“I recognise that young people in Cornwall (like my teenage children) should have a locallyoriginated
station that is more relevant to them than Pirate, BBC Radio Cornwall or Radio 1. I'm
very encouraged by your links with the Green Room, the Hub and so on”
Ross Williams
Cornwall Arts Centre Trust Truro Ltd, Cornwall Arts Marketing and Creative Kernow
To establish and maintain the station and its local revenue forecasts, we require a realistic percentage
of Cornwall’s total young adult population to tune in and become regular listeners, (and listen for
longer). As such our marketing efforts will be given significant support in this area from IMD Group,
and its subsidiaries.
The young adult market is one of the hardest demographics to reach, due to low media consumption,
greater degree of mobility and their distrustful approach to much of the poorly targeted marketing aimed
at them. IMD Group’s success has been built on an ability to generate “cut-through” youth marketing
strategies to engage and interact with this audience, through increasing the relevance of marketing
directed at this cynical market segment.
Local knowledge has convinced management that traditional radio launch activity will not work for Itchy
FM in Cornwall. Local TV and press ads (West Country TV, Cornish Guardian / West Briton) create
extensive wastage when trying to reach a youth audience – a problem recognised by practically all of
the local youth targeting businesses we consulted with.
Aside from an initial ‘burst’ of above-the-line high-impact brand awareness activity to promote the
station’s arrival on Cornwall’s airwaves, we will prefer to use a range of below-the-line marketing to
advertise the station and promote reasons to listen longer. As well as utilising the station’s on-air
promotional abilities, we intend to utilise station events and promotions, print media, outdoor activity,
flying, stunts and local partnership marketing, plus IMD Group’s existing local media channels where
possible.
Targeted investment in this area directly correlates to audience levels and due to the ‘sponsor friendly’
approach of Itchy FM’s marketing, revenue growth.
Through placing substantial emphasis upon the station’s branding and profile, we are aware that we will
create an opportunity to attract many sponsors and non-traditional local radio buying clients to the
station. In local markets a station’s visibility is often a key determinant securing a sale, above even
RAJAR figures, and as such the importance of brand activity is reflected in our marketing plans.
We believe that as the only dedicated service targeting Cornwall’s young adult community, Itchy FM will
automatically and instantaneously generate appeal, and its highly visible local presence and interactive
programming will help Itchy FM to generate the audience levels and loyalty projected within the
business plan.
Our Local Partnership Programme developed over the last 3 years has given us access to a host of
marketing partners which will help to ensure the station’s local grassroots support. In addition IMD
Group has already launched a range of existing media channels in Cornwall (Itchy Cornwall Guide
Books: 50,000 copies, The Student Planner @ Cornwall College 7,500 copies), and is currently
extending this local media further (poster sites in the university / colleges & reach, Inside+Out
Magazine) and these would be made available to support Itchy FM’s marketing objectives. These
significant cross-promotional deals (with a combined young adult reach of approx 250,000) will
constitute a major aspect of Itchy FM’s promotions, at costs significantly lower than any other applicant
30

might incur to achieve such high levels of public exposure. They also create opportunities for low cost
research and feedback on the station, to help Itchy FM remain absolutely relevant to the county.
We would use different channels to reach different audiences.
IMD’s Media Channels in Cornwall
Itchy Cornwall – Insider’s Guide Book
The UK’s best-selling local entertainment guide book series, Itchy Guides are sold throughout 850
retail outlets across the UK as entertainment guides, reviewing pubs, clubs, restaurants, shopping and
other activities. The Itchy Cornwall Guide Book was produced during summer 2004, partially to raise
awareness of the bid and station brand through Itchy FM adverts. Itchy Cornwall Guides are sold
locally as a local’s or “insider’s” guide. Their honest tone appeals to young adults, and their national
retail presence as the only dedicated county guide ensures that Itchy Cornwall will be bought in
advance by many young people when planning their summer breaks. ItchyCornwall.co.uk, the
accompanying website is used in a similar way for leisure planning purposes.
University Media union poster sites (CUC)
The recently completed Combined Universities in Cornwall initiative links Falmouth College of Arts, one
of the leading specialist institutions in the country for courses in Media and Design, with the University
of Exeter. The CUC is expected to create 4,000 additional student places by 2010.
IMD Group’s ambient media subsidiary (Amberland Ltd) is the UK’s leading in-bar student poster
media company, with 115 university poster sites. Amberland has been invited to install its revolving
poster machines into two of the CUC venues (night club / bar). These sites are prominent, and the
framed, A1 backlit rotating poster-sites in the bars and nightclub will serve to reiterate Itchy FM’s
relevance to a fun, young audience. As the media owner of these sites, we would be able to vary copy
regularly to promote differing aspects of the schedule and particularly client sponsored station S&P.
The Student Planner - Branded Academic Diaries
Itchy FM will gain daily access to college students aged 16-19, via advertising, editorial, competitions
and / or feedback forms in The Student Planner college diaries. IMD Group publishes 250,000 of these
localised diaries across the UK, and in Cornwall specifically where we produce nearly 8,000 of these
under contract to Cornwall College, making us the largest supplier of Further Education college diaries.
31

Inside+Out Regional Magazines
IMD Group’s most recent acquisition; Inside+Out is a quarterly local youth entertainment and arts
magazine published across 12 UK regions and has an average local readership of around 30,000
young adults, ‘first jobbers’ and students. Inside+Out readers are primarily males and females aged
18-30 years with a wide range of interests, who are active and intelligent, adventurous in their leisure
time. The magazines are advertiser funded, and we employ two dedicated sales staff per magazine to
sell advertising in each region’s edition.
Below-the-line marketing
The station’s below-the-line marketing plans are much more comprehensive than traditional radio
stations may operate. This is not only due to the lack of available and effective above-the-line channels
to the youth market (aside from IMD Group’s existing media outlets), but also because of the proven
success of below-the-line activity within the youth demographic. Such activity is likely to include
ambient media (student bus route bus backs, club posters etc), a comprehensive live promotional event
campaign and street activity (flyers, sticker distribution, co-branded sampling activity etc), as well as
publicity stunts reflecting the fun young sound of the station.
Our proposed local audience will very quickly become aware of the station through:
Events marketing
This approach relates to the disparate nature of the county and accordingly the differing audience
tastes across the series of towns that Cornwall comprises of (unlike the more usual city-centric,
regional centre based broadcasting). The geography of Cornwall lends itself to regular ‘outside
broadcasts’, ensuring that the station is at the forefront of the various scenes within both the bigger
conurbations with their individual scenes, such as:
o Truro: live music, house / clubbing, sports, arts,
o Falmouth: live music, clubbing, sailing, skate
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o Newquay: surf / skate, clubbing, festivals, party
o Penzance: live music esp rock, arts
o Redruth: live music, hip hop
o and the many other smaller towns with their own unique pockets of interest (Peranporth, St
Blazey, Torpoint etc)
We believe this will not only help establish consistent local credentials for the station and maintain a
close proximity with these crucially different hyper local scenes, but will also create opportunities for
high value local sponsorship. Our partnership with leading local promoters SW1 Productions and
venues such as The Green Room will support this strategy, as we co-promote local gigs and music
events throughout the county, utilising both local and national youth interest music artists to promote
awareness of the station and its sponsors.
Flipside/Greenroom is keen to support the development of a youth focused radio station for Cornwall,
which we see as a crucial component within any integrated strategy designed to tackle the acute
problems facing youth in our project area. As a peer led community enterprise, working through arts
based regeneration, we are happy to work with IMD Radio to ensure they meet any commitments
they make to deliver quality programming tailored towards the diverse needs of our members and the
wider Cornish youth community.
Ben Simpson – Manager, Greenroom / Project Director, Flipside Foundation
The station’s own event based strategy will become the most obvious link between audience marketing
and station revenue generation, attracting prime local advertisers to “partner” with the station to target
their audience in a fun, live and often client-responsive environment. The event strategy will be
developed by IMD Group’s Marketing team, which has extensive experience of live promotions and
event based marketing. Some examples of ways we intend to promote the station to potential and
existing listeners at Itchy FM’s own events include distributing Itchy merchandise at station events, and
via data-capture competitions administered by station branded staff. Extensive station branding at
these events will ensure Itchy FM is synonymous with the Cornwall leisure scene. Examples of some
of the events we are planning to launch as part of the station’s marketing activity are summarised
below.
• Itchy FM Presents…regular club night with station DJs
Station DJs and special guests presenting genre specific club nights will help to position Itchy FM
as the authority on the local scene. Station presenters (particularly of specialist programmes)
would cross-promote their Itchy FM branded live nights during their radio shows, and offer listeners
free tickets and other exclusives. IMD Group would help to ensure station presenters hosted high
profile events featuring DJs from the TrustTheDJ network.
• Itchy FM Party Boat
IMD’s management have experience of co-promoting two highly profitable annual 1,000 capacity
exclusive boat parties in Europe, achieving around £35k in ticket income, and a further £40k from
sponsorship and onboard sampling, and plan to replicate this in Cornwall in support of the station.
The Itchy FM Boat party would be extensively promoted on-air (“Win a weekend on Itchy FM’s Party
Boat!), and via IMD Group’s other local media, with high profile artists such as The Zutons and the
Scissor Sisters playing to an enthusiastic audience of paying guests and station competition
winners. IMD Marketing would handle the logistics of organising the Itchy FM Boat Party on behalf
of the station.
• Itchy FM Presents…The Itchy Beach Party
With 1.4m young people congregating in Cornwall each summer, we foresee the Itchy FM Beach
Party becoming a major focal point for these young holidaying adults. We expect the Itchy FM
Beach Party to become the station’s biggest event, attracting an audience of around 20,000 to see
a major line-up of station playlist artists, compered by station DJs. As the event grows we would
consider extending the promotional coverage to include a branded “Best of the Itchy FM Beach
Party” TV programme, and expanding the invitation via email to IMD’s Youth database, and
promoting it extensively across our network of youth websites. We have had several discussions
33

with a national drinks brand about extensive sponsorship for this event. Capital Radio have had
massive success with their similar brand and revenue extension format; Party in The Park.
• Itchy FM Presents…New Music Now! tour
One of Itchy FM’s recurring music themes is a focus on New Music. In our NOP research, 75.7% of
the sample stated that they most often found out about new music from listening to the radio. Itchy
FM can take ownership of the development of this burgeoning music scene in the South West,
through regular on-air promotion of the ‘New Music Now’ tour, developing “grassroots” talent
promotion initiatives through offering local bands valuable support slots with higher profile emerging
bands. Based on our NOP audience research this is likely to be very successful at ensuring
audience growth. In addition, with the station’s efforts to grow the music scene, we are certain this
will impact on the local music and entertainment scene, and even have a potential impact onto the
economy:
“A new youth station for Cornwall will do much to reinvigorate the environment in which new bands
and new music can prosper. The infrastructure to make this happen - good media opportunities and
places to play live - is ripe for development. A station like ItchyFM would give companies like
Channelfly and Barfly (the biggest promoter of new musical talent in the UK) the chance to work more
actively in the region - both with local artists and bands of international standing.”
Adam Driscoll – CEO, Channelfly plc
• Itchy FM Presents…Xtreme Sports
Ensuring the station maintains (sponsorable) marketing activity throughout the year, we have
planned a key wintertime event featuring a variety of extreme sports. Station branding will feature
on climbing walls, and on event banners etc. We intend to partner with local sports organisations
and will use this high profile sports focussed activity etc for sporting events as diverse as downhill
biking and other exciting new extreme sports activities. Our local consultation over the last two
years and presentation of sports-based events of appeal to young adults in Cornwall have been
well received. James Garland, Spokesperson for the Sport Action Zone informed us that events
like these would help to “raise the profile and availability of local sport…[and]… would complement
the work of the Sport Action Zone.”
• Itchy FM Presents…”Itchy & Scratchy” HipHop Showcase
Linking specialist programmes with high profile events and putting innovation to the top of Itchy
FM’s agenda is a live audition for the best scratch and breakbeat DJ to win a season on Itchy FM.
The on-air show would be awarded for the best scratch mixing. Live event including graffiti art,
breakdance crews and MC competitions to be promoted on-air and nationally via IMD Group
partners Drum’n’Bass Arena and HumanBeatBox.com, with the final broadcast live on Itchy FM and
presented via a live web cast.
• Itchy FM’s “Live & Local” Showcase
Our daily specialist “Live and Local” music showcase on-air feature has been proposed in response
to our research and community consultation which continually revealed a mass of new Cornish
bands and artists, looking for an outlet in Cornwall, and an audience looking to find out about this
new music. As well as the daily showcase, Itchy FM has consulted with a variety of Cornish bands,
management and promoters with a view to establishing a week long live music event across many
venues throughout the county, supported by major on-air promotion and editorial coverage.
Intended local sponsorship will extend the Itchy FM Showcase further across the county and we are
in discussions with several potential partners.
All of the above events based activity would make for engaging radio promotions and outside
broadcasts.
Online marketing
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We would also support all station activity heavily on Itchyfm.co.uk and across relevant channels within
IMD’s Digital Youth Network youth websites. This support would take the form of advertorial for the
Cornwall station events (including all DJ / artist interviews, info, listings, pr, photos, streaming,
interviews, competitions etc), with a fixed newsletter link.
Press & PR / Partnership marketing
Due to the weak youth reach of established local press, Itchy FM will forge valuable long term
relationships with smaller, more credible print media partners.
Twenty4-seven
Twenty4-seven is the Westcountry's most popular free magazine. Having established a circulation of
25,000 copies and an estimated readership of 75,000 every month, twenty4-seven magazine is
considered the most effective free music and lifestyle magazine to successfully target the 18-35 age
group in the Southwest whether they are students, visitors or locals.
With over 650 outlets stocking twenty4-seven magazine across Cornwall & Devon, twenty4-seven has
the largest free magazine circulation in the region and a pick up rate of 98% every month. Stockists
include various high street stores such as HMV, Virgin, MVC, Pilot & Topshop/Topman alongside
hundreds of independent record, fashion and surf shops, pubs, bars, cafes, venues, colleges,
universities, selected supermarkets & service stations on main roads in and around the Westcountry.
Copies of twenty4-seven are also exclusively distributed via flyer packs direct to selected nightclubs &
live events in Cornwall & Devon at the beginning of each month.
Itchy FM has agreed a partnership with Twenty4-seven, wherein Itchy’s drivetime presenter will write a
regular page on What’s new in Cornwall, and what’s coming up on Itchy FM that month as well as
include the Itchy FM listener request chart. In return for this promotion, Twenty4-seven will provide
content for a daily listings guide feature to be broadcast during the Itchy Drivetime show.
“We look forward to working with Itchy FM, and are certain we will both benefit on and off air”
Nigel Muntz, Managing Director, Afterdark Media Ltd (Publishers of twenty4-seven magazine)
Stranger
October 2004 heralded the launch of a free bimonthly called Stranger. Aimed at 18 to 35-year-olds,
the title covers global and local issues from music to the environment and is printed on 100% recycled
paper.
Stranger’s editor, Helen Gilchrist (ex-Time Out and Adrenalin magazine) will co-present a weekend
specialist magazine show (Stranger Sounds). In exchange Itchy FM’s specialist presenters (rare
groove, funk, live scene, hip hop) will be given a page in the magazine to talk-up’ their special guest
appearances, new or rare tracks they feature on their show and other specialist output.
“We at Stranger are really excited at the prospect of working with Itchy FM, and the fantastic
opportunities it will provide to boost youth communication in Cornwall. By communicating to a wide and
waiting youth audience, we hope that Itchy FM and Stranger can work together to highlight the vibrant
culture and opportunities available for young people in the county – hopefully helping persuade them to
stay here!”
Helen Gilchrist, Editor
Other marketing
Itchy FM’s Marketing / S&P Manager will be responsible for generating a number of other low cost, high
impact marketing activities to increase audience including:
• Itchy Hit Squads on Branded mopeds doing beach promotions in summer and in term time
college and university promotions (sticker blitzes, voxpox, raising awareness and participation
for on-air promotions) plus workplace visits.
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• Marketing activity (advertising and sampling) within the County’s key travel corridors. Including
Newquay Airport which regularly welcomes a huge youth market. IMD Group’s sampling ‘hit
squads’ can distribute Itchy FM branded destination guides at the major train stations and
Newquay airport). These could be given away to 10,000 - 15,000 people, in any one day. This
activity would also create the opportunity for listener data capture.
• Partnership marketing - logo / frequency inclusion on other promoters flyers and at the events in
exchange for promotional support on-air (ie: ticket / guest-list giveaways)
• Club and gig attendance / sponsorship and OBs – branded station presence at existing nights
• Outdoor in appropriate youth areas (train station advertising, bars – washroom media)
• Affiliate marketing to reach summer audience (distribution of Itchy FM branded radios and Itchy
Cornwall Guides in B&Bs / hostels and to car hire companies in exchange for pre-tuning radios
in hire cars etc)
• Ensuring youth targeting shops, bars and cafes have the station tuned in whilst open for
customers to hear. This will be achieved through the distribution of window stickers, and prizes
for businesses whose workforce makes regular record requests
• Itchy FM branding in youth spaces. We have agreed Itchy branding to appear at music venues,
skate parks and other places with high levels of predominantly Under 35 footfall). Branding
could take the form of banners, branded beer mats or even branded Surf / Skate Boards. Itchy
branded surfboards were offered as prizes at this year’s Cornwall SAS Ball.
• Plus a few of the more traditional ILR marketing options, such as flyering and branded station
vehicles
Brand extension marketing
• “Itchy FM: Sound of the Summer” - Station CD compilation
Itchy FM’s distinctive mix of new youth dance and rock creates an opportunity for the station to produce
an annual “best of” CD. Stations such as Classic FM, Virgin Radio, Jazz FM and Kiss FM have had
good success producing CDs. In addition we can create assured distribution via Itchy’s Guide Book
retail network (incl Virgin Megastore, HMV and independent record stores). The Sound of the Summer
Station CD would serve a dual purpose, promoting Itchy FM’s brand and creating a new revenue
stream.
IMD Group’s Head of Content Marketing, Rob Wood has compiled and produced CDs for the
Bargrooves compilations series; branded covermounts for Jockey Slut magazine; the promotional
campaign for Glennfiddich whisky’s ‘Independent Mix’ and the ‘Mr & Mrs Smith’ hotel guide book &
compilation series. The management of IMD’s music community and online retailer TrustTheDJ.com
have also had extensive experience at licensing tracks to produce profitable, cutting-edge CD
compilations.
Audience interaction
In addition to these marketing activities, we intend to achieve audience growth via a greater level of
listener interaction than may be traditional in conventional ILR stations.
• Data capture (including email and SMS competitions entry on-air)
• Viral marketing via emailing local listings to subscribers
• Itchyfm.co.uk website
Marketing Summary
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A large part of Itchy FM’s likely success will be a result of its marketing penetration into the 15-34
Cornish market. Whilst this audience is poorly targeted by the incumbent local ILR’s, we will have to
battle for share from a well resourced BBC Radio One. However, shareholders are confident that the
variety and ubiquity of Itchy FM’s marketing efforts will achieve the required reach. Our programming
will extend hours and our commercial team will ensure this audience interest is conveyed to prospective
advertisers.
37

FINANCIAL SUSTAINABILITY
The size of the licence means that if the station was solely reliant on traditional local radio income
(predominantly spots), the station would be limited in its marketing activities and overall profitability.
The board have made several plans to ensure that Itchy FM will be sustainable, without being required
to run the station on an overly restrictive budget.
As outlined previously, the station will operate with:
1. Low fixed cost base
2. Emphasis on wide range of commercial activity
3. Access to non–traditional national client-direct sponsorship revenues
Low fixed cost base
The investors have a range of experience of running SME businesses with scalable overheads in line
with revenues. Cautious fixed costs, enhanced and performance related pay to ensure staff motivation
aligned with business success. This is demonstrated at IMD Radio Cornwall through the Commercial
focus and the use of shareholder support (especially the IMD Group structure) to create flexible, on
demand opportunities for revenue growth.
The Launch Team will be in place for four months prior to and six months post-launch date and will
ensure station set up within budget and that revenue targets are achieved. The team’s skills are such
that they will be able to:
• Ensure effective use of partners / outsourcing and group services
• Deliver local sales training and process creation to ensure sales sustainability,
• Develop the Itchy Cornwall brand position for trade and consumer marketing,
• Determine fixed and variable cost levels and ratios,
• Ensure local goodwill and support generated during the bid is harnessed post-award,
• Channel shareholder expertise and knowledge to the management team of the station from
launch.
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Staff structure
IMD Radio Cornwall will employ fourteen full time staff split between Management, Programming, Sales,
Marketing Administration, and News & Speech. In addition freelance presenters will be employed to
present specialist programmes. Salary levels for full time staff and details of the budgets for specific
programmes are detailed in the financial forecasts. ‘People costs’ will be structured in a way to reward
success, with high-motivation sales commissions and performance related bonuses for non-sales staff. In
the director’s experience this reduces the fixed cost risks, and incentives the station staff.
Launch Support
Launch Team
Accounts / Traffic / Admin
Head of Music /
Presenter
Employed Presenters
Full time - 2
Freelance Presenters
Part time: 6+ (show based)
Producer
The Board
Managing Director / Programme Controller
Head of Spoken Word
IMD Radio Cornwall intends to contract Mark Briggs to provide support to the Managing Director and
the board in the pre-operative phase. Mark is a respected radio consultant, having launched and
operated numerous commercial radio stations in the UK. His experience lies strongly within smaller
scale radio stations and he will provide support and advice on all operational issues. He is well known
to the board of IMD Radio, having held an interest in the Cornwall application for the past two years.
Sensible use of recruitment / outsourcing / partnerships
Journalist
Volunteer & student
support base
Sales Manager
S&P / Marketing
Manager
Sales Executives
Full Time – 3 (+ 1 at 7 months)
Itchy FM will train staff to multi-skill, focussing on either commercial activity, marketing, programming or
production – with minimal admin or middle management roles. The staff policy will be to recruit young,
hungry talent for whom the station will be an important stepping stone on their career path. This will help
to ensure sensible staff costs, and a good degree of skill transfer throughout the small business. The
board have extensive experience of talent development, particularly in youth radio.
In addition IMD will provide the fledgling station with certain activities such as marketing support, design
work, sales training and various back-office functions including financial management (VAT, payroll
etc). We also will benefit from local strategic partnerships (detailed herein) that have already been
agreed in order to support the station and its marketing initiatives from launch.
Local student / volunteer support
Through raising local awareness of our bid via local press, our live music event in August 2004 and via
consultations over the last three years, Itchy FM has already become awash with work experience
39

equests from local young people and particularly students at Falmouth College of Arts, nationally
renowned for its broadcast journalism course. We have discussed the potential for running formal
placement schemes with all of the colleges (Truro, Falmouth and Cornwall College), with good degrees
of interest. In addition, through discussions we have had with Cornwall College, we have agreed a
series of placement opportunities, linking with various courses (Improvisation, Multi-media,
Performance and Composition), giving local young people opportunities to get involved in many
activities at the station. As well as this, we will be happy to respond to the numerous requests we
receive as below:
“I am a budding radio broadcaster, and I am
currently doing volunteer work at Truro Hospital Radio, and will be starting
a Broadcasting course at Falmouth College of Arts in September/October. I am
passionate about music, which is why I am particularly interested in your radio station. I was
wondering, if you are successful in your licence application, whether you will be offering work
experience placements, or actual jobs for young, enthusiastic, broadcasters such as myself?”
Local student enquiry through our website
Martin Dallaghan will lead the training and new talent development programme for the station at launch.
Commercial focus - Emphasis on sales activity
To ensure financial stability and sustainability the management team are all commercially astute
individuals recognising that exciting commercial radio needs to be supported by advertising and
sponsorship (although this commercial activity can be delivered creatively!).
To this end, the following senior roles include both commercial and operational activities.
Managing / Programming
Director
Overseeing station partnerships and all on-air sponsorships
Sales Manager Responsible for all local sales performance
S & P / Marketing
Manager
Sales Executive Team
Arranging and securing marketing sponsorship and S&P revenues, to
develop the brand of Itchy FM, to drive audience and client uptake. This
role will also include developing integrated commercial promotions (S&P)
for the station and our client base.
3+1 strong sales team selling airtime campaigns (East TX / West TX /
County-wide) to local direct clients.
To demonstrate the financial sustainability of the station we recognise the need to set-up a very
effective local commercial function. As such, immediately post-award Ian Merricks will act as Launch
Commercial Director managing resources to optimise sales. He will recruit and train a commercial
management duo (a Sales Manager focussing on inventory sales and an S&P / Marketing Manger to
attract sponsors and commercial partners). Several likely candidates are known to Ian, from his local
consultation and radio industry contacts. The Sales Manager will be responsible for devising the sales
policy, setting targets, monitoring performance and recruitment, training and development of three sales
executives to service clients buying East and West transmitter campaigns and County-wide activity.
After the sales force has begun to hit its targets a sales support / telesales role will be created
(estimated as being necessary from Month Seven after ‘going live’, in line with the growth in inventory
volume forecasts. The board believes this approach will ensure that there is a strong sales culture from
pre-launch whilst the Managing Director focuses on creating the sound and “stationality” of Itchy FM.
At the same time, the S&P Manager will also be required to develop a local client base and work with
the Managing / Programme director to maximise sponsorship revenue as well as identifying and
developing additional and alternative areas of revenue, given the unique audience profile and disparate
geographical area.
40

In addition, IMD Group’s local sales force will be able to refer business to Itchy FM. IMD Group’s
national client relationships will enable station events to be sponsored by national brands, and a
national sales agency will focus on national spot sales.
Emphasis on wide range of commercial activity
As set out previously, Itchy FM has identified and researched nine different revenue streams, broadly
falling into three inventory areas for servicing:
1. Local: spots, programme sponsorship, outside broadcasts, on-air promotions
2. National: Large event sponsorship, sampling activity, data capture and data sales
3. Consumer revenue: Music downloads, SMS, publications
Local commercial activity
The Cornwall business, education, social community has made the Itchy FM bid team very aware of the
difficulties they each currently face reaching the youth market as no one media channel targets
significant numbers in a credible or accountable way. From their enthusiastic support for our
application we are confident that many of these businesses and organisations will adopt Itchy FM as
their preferred marketing channel.
Commercial trial
During the course of the year, the underlying principle of IMD Radio Cornwall’s local sales strategy will be
to sell effective campaigns to the majority of the county’s key local youth targeting business 'on air' within
twelve months of launching. For many of our target advertisers, a large part of their business is reliant
upon the youth market, and as such many businesses have developed to specifically target young people
within the county. As such, the station will benefit from a large number of potential clients across the
county, currently frustrated by the lack of opportunities to enable effective communication with this valuable
demographic.
Due to the geographic spread of Cornwall, IMD believes that many of these clients will be smaller
businesses. Subsequently, one of our methods to grow local advertising will be through providing a
fresh, targeted media opportunity for the many smaller advertisers for whom other media channels are
either too expensive, demographically wasteful or geographically limited. Our split transmitters will
enable East / West campaign optimisation and act as an incentive for many of the County’s smaller
businesses – those having a turnover of less than £500,000 (35%), to try radio advertising as part of
their marketing activity 4 .
Through IMD’s local sales training programme, local sales staff will be encouraged to sell campaigns that
will secure the best possible chance of generating repeat business. This factor reiterates the importance
of an integrated approach to the sale of advertising on the Cornwall youth station.
We will demonstrate Itchy FM’s ability to reach the lucrative youth market with minimal wastage, in a
cost-effective manner, against all other media options. Attracting a broad brand count will also
encourage other less obvious advertisers (including seasonal businesses) to use the station whenever
they wish to communicate with the youth market in Cornwall.
“As a new high end clothing range based in Cornwall, we would welcome the opportunity to promote
our business on a cool local radio station with lots of young people listening!” –
Chris Dart, Owner / Co-Founder - Lief Clothing
Alongside integrated campaign planning, our local sales staff will be trained to plan and implement
airtime campaigns that will achieve quantifiable results for the client, whether through sufficient
weighting of ad campaigns, creative copy, supporting activity or a combination of all three. This will
enable our clients to trust Itchy FM, and will increase the ability for our staff to recommend future
campaigns.
4 Source: Cornwall Enterprise, 2004
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Revenue justification
Given our programme format and target audience, Itchy FM will have no direct competitors for local
sales.
Owing to the previous low levels of young (Under 35) audience attracted to the existing commercial
station, Pirate FM, we believe that many advertisers at a local level will be new to radio. These clients
will need to be “educated” about the benefits of radio advertising (secondary medium, trusted, low ad
avoidance etc) and be made aware of the importance of the more technical aspects of a radio
campaign (copy rotation, USP, motivation to act, message clarity, OTH weighting etc).
Itchy FM's sales forecasts are based on previous experience and recent client research undertaken by
the IMD Radio Cornwall team, and on advice from three of the national sales agencies contacted by
IMD Group. The forecasts are viewed as conservative due to the unique offering our service provides,
allowing total audience access without wastage, and creating a channel to reach a sizeable leisure
audience of UK youth each summer.
We have found that many local companies have significant budgets aimed at the youth / student
community; these include mobile phone stores, fashion & record retailers, surf shops, as well as
professional firms seeking recruitment. As part of the commercial research, IMD has interviewed fifty
local businesses many of whom have already expressed serious interest in advertising and
sponsorship opportunities on Itchy FM.
We have also had good support from the organisations impacting directly on the local business
economy:
“You are creating a form of communication that will be important in engaging the younger members of
our community in developing the future of Cornwall. From Business Link’s point of view we currently
have difficulty in reaching this audience. I am pleased to offer Business Link’s endorsement for your
project and hope that you are successful in your application for the new radio licence”
Andrew MacDonald, Operations Director, Business Link Devon and Cornwall Ltd
Our local commercial review has demonstrated that many (62%) youth targeting local businesses do
not use Pirate FM, due to its older, ‘family’ appeal or cost, but 58% would consider using Itchy FM.
National revenues
A national sales agency with experience of youth ILR sales will be selected. They will be tasked with
selling the advertising to national clients and their agencies.
We intend to work with a trade PR agency specialising in representing media clients to communicate
our proposition to the national media buying audience.
As part of the application process, IMD has interviewed national clients and radio planners and buyers
at several advertising agencies who are keen on the proposition.
“I was pleased to hear about your plans for Cornwall and feel that your programming proposals
targeting 15-35’s will certainly extend choice in the marketplace for listeners and advertisers alike.
With your past radio experience and growing expertise in wider youth media, I believe Itchy FM will be
most successful.
ZenithOptimedia puts c.£600k into the South West marketplace and our clients would welcome another
media outlet that broadens choice for thus under-utilised audience.”
Michael Buckley
42

Director of Radio, Zenith Optimedia
Despite a number of comments from senior agency staff as positive as this, for prudence we have
predicted that the regional and national sales model will initially have a low client uptake in Year One,
increasing gradually over the next two years.
National Sponsorship Activity
On a national level, the Radio Advertising Bureau recently (Q3, 2004) reported significant increase in
sponsorship & promotions at £24.0m, taking a 15.2% share of total revenue. We are confident that
IMD Group’s national client facing activity creates an element of competitive advantage for Itchy FM, as
it will benefit from pro-active national sponsorship representation by a sales team offering a range of
media solutions for national brands (IMD’s “portfolio sell”), and management are confident this will
result in disproportionate national sponsorship income for the station, beyond local S&P activity.
43

(g) Transmission Proposals
(i) Name and NGR of Transmitter Site
(a) Name and National Grid Reference of site;
Redruth (SW 690 374)
Caradon Hill (SX 273 707)
(b) Height of site above Ordnance datum (in metres);
Redruth 229 metres
Caradon Hill 369 metres
(c) Height of transmitting aerial above ground level (in metres);
Redruth 95 metres
Caradon Hill 167 metres
(d) Radiated power
Redruth 10kW watts vertical +2. 5 kW watts horizontal
Antenna pattern will be directional
Caradon Hill 2kW vertical + 0.5kW horizontal
Antenna Pattern will be directional
NTL has offered us site-sharing facilities at Redruth and Caradon Hill. No planning permission is
required as the existing antennas will be shared. All the additional equipment will be housed within the
building.
The existing antennas with the e.r.p stated above will meet the Ofcom restrictions for this licence.
(ii) Coverage Predictions
Please see the NTL Coverage Predictions for the area in the Engineering Appendix.
(iii) Arrangements for transmission provision
Our Transmission provider ntl is well resourced to install the complete system and subsequently
maintain and monitor the Transmission parameters. Telemetry and remote monitoring systems provide
information back to their control centre e.g. Carrier Power, lack of modulation etc on a 24 hr basis.
Their maintenance personnel are highly trained with the necessary spares and test equipment to
resolve any problem quickly. Itchy FM intends to utilise a Total Broadcast Contract (TBC) with NTL.
(iv) What is the anticipated time-lapse between the award of licence and start of broadcasting?
Itchy FM would aim to be on air within 6 to 9 months from licence award.
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SECTION 105(B) AND (C): CATERING FOR TASTES AND INTERESTS / BROADENING CHOICE
(a) Programming philosophy
(i) Statement – setting out programming philosophy and vision for the radio service.
Playing Cornwall’s Under 35s a much-needed variety of music, lifestyle programming and information
relevant to our target age group and currently absent in the local commercial radio landscape.
Itchy FM will mostly appeal to a popular mainstream youth audience through its young, local
programming mix; it will build its credentials through countywide marketing activity and involvement in
the music, club culture, beach and leisure scenes throughout the towns of Cornwall. Itchy FM will aim
to play a central role in the regeneration of Cornwall by engaging young people and providing them with
access to relevant information. The station’s success will depend on its ability to reflect the interests of
its target audience and the needs of the region it serves, and our management team have good
experience at interpreting these needs.
Itchy FM’s focus on the style of delivery of both music and speech content will ensure it is widely
listened to as an energetic fun young station for the county’s youth. In programming terms, the station
will replicate the success achieved by stations such as Galaxy Network or Beat 106, advocating
“ratings by day, reputation by night” with well designed and maintained brand conscious programming
features to develop listening hours and service both mainstream pop dance / pop rock tastes and more
specialist programmes to cater for other music styles that are of researched interest to Cornwall’s
Under 35s and not currently locally available on Pirate FM.
The county’s 107,000 15-34 year olds are the station’s core demographic. In addition the station will
appeal to a “youth lifestyle community” in the county. This definition extends to include individuals
outside this age range but who remain affiliated to this group through lifestyle or leisure activities, plus
the 1.5m annual visitors. The driving focus of Itchy FM will be the resident population of underserved
under 35’s.
IMD Radio’s research has shown the significant gap and demand that exists for a station which offers
our proposition. The station’s experienced management team offers confidence in understanding the
audience through personal experience of the marketplace and similar styled services.
(ii) Strategies for:
• catering for tastes and interests, general or particular, of persons living in the area
Itchy FM will position itself as Direct Response Radio through developing interactive communication
paths with its audience, providing high levels of personalisation of its output through listener’s
programming, including phone / SMS music request features and a well developed website promoting
opportunities for listeners to interact with their station. Our NOP Study shows that this type of
interaction is important.
We have consulted and will continue to consult with youth organisations across the county.
In addition, we intend to continue to run snoop sessions with the focus groups we presented format and
playlist suggestions to during the local consultation period prior to submitting this application.
Itchy FM’s programming proposals are based on:
• Management and shareholders that are ‘in tune’ with youth media, music and Cornwall itself to
create a station uniquely for Cornwall’s under-35’s
• A leader as Managing Director and Programme Controller whose roots ensure his unrivalled
passion and enthusiasm for the business and the community
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• Significant study into all aspects of the station (programming, marketing, sponsorship and local
community involvement), to ensure optimum market positioning from launch
• Extensive independent market research - carried out to provide detailed information on
programming tastes and audience lifestyle dynamics
• Previous experience building audience and revenue in ‘youth’ media
• broadening the range of local commercial services available in the area
Itchy FM will provide a voice and a much needed focal point for the broad youth community living
across Cornwall County. Itchy FM is the only means for this influential and spread-out population to be
communicated to en masse, to have a local commercial radio station targeted specifically at their tastes
and lifestyle and to galvanise the current enthusiastic activities undertaken by Cornish youth.
The station will be distinctive in all aspects of its operation from the existing heritage ILR Pirate FM - not
just in the music the station plays, but also in the station’s speech output and marketing activity and
overall feel.
The station’s attitude will be conveyed through the music played, the use of language, understanding,
sharing and expression of listeners’ lifestyle, research and production techniques and the station’s
ability to integrate with other lifestyle orientated businesses and experiences that build a single brand in
the mind of Cornwall’s potential new listeners to commercial radio.
As Itchy FM will be concentrating on the audience not adequately represented by Pirate FM, it is only
worth a brief comparative note in programming terms, that Pirate is a broad appeal service with a very
broad music policy. Wave 3 2004 RAJAR data shows 71% of its listening hours are from audiences
aged older than the target demographic of Itchy FM (35+).
15-34 year old listeners should have the choice that is available in other areas of the UK. Our NOP
research clearly proves that they will welcome a targeted, local service.
No commercial service adequately targets young (and young lifestyle) listeners in Cornwall. The sheer
volume of under-35 listening that is given to BBC Radio 1 shows the county and demographic’s
dissatisfaction with the current choice of commercial radio listening. BBC Radio 1 is specifically
London-centric and the lifestyle and routine of a Cornish young adult is radically different to that of a
Londoner.
Music policy
“someone is finally putting out a radio station which might play good music, instead of golden bloody
oldies and loads of old men talking.”
Male, 16, media studies student, Liskeard
Itchy FM will provide a service that acknowledges the significant interests in specialist music within the
younger aspect of this lifestyle group whilst recognising that as the community ages their listening
behaviour becomes more mainstream in reality, whilst maintaining a keen interest in the heritage niche
music they grew up with. This group remains unserved and ignored by all Cornwall radio. In our
research, 64% of the respondents favoured pop rock, 52% pop dance which confirmed that pop rock
and pop dance were the most popular music types, but not to the exclusion of other genres.
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0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Fifties
Sixties
Seventies
Eighties
Nineties
2000-03
Current
Pirate FM – Monitoring Day by year of music played.
Series1
In supporting a young format, we looked at our formal monitoring study of 110 daytime tracks played by
Pirate FM (Nov 29 th 2004), included in the appendices. This demonstrated the likely difficulty which
would be faced by a new radio station attempting to appeal to an older market. A significant amount of
Pirate FM’s daytime output (23%) is made up of music from the eighties. This decade is second only in
its prevalence to recent music from this year (33 tracks, 30%). Additionally we highlight that of these
tracks, Itchy FM would be likely to play only 10 tracks, or as a percentage of Pirate FM’s overall
daytime output the likely cross-over from Itchy FM is just 9%. Furthermore, any station targeting an
older age range would undoubtedly have to play significantly more music from the last forty years, and
less current and pre-release tracks, thereby competing head-on with Pirate FM. We see Itchy FM’s
minimal music cross-over as essential to reach the 63.3% of local 15-39 year olds identified in our NOP
research who were ‘Not very satisfied’ or ‘Mostly satisfied but would consider switching’ with Pirate FM.
Our monitoring highlighted that half of Pirate FM’s music is pre-2000. Even though less than one third
of Pirate FM’s output is ‘current’, there is only a small cross-over in the individual tracks that would be
shared.
Music Comparison Table – Pirate FM & Itchy FM
Pirate FM – Currents
Lucie Silvas
Daniel Bedingfield
Bryan McFadden
Dido
Pirate FM - Classics
Bananarama
Brenda Russell
Tina Turner
Duran Duran
Itchy FM – Currents
Snow Patrol
Usher
The Streets
Rasmus
Itchy FM – Classics
Basement Jaxx
Fatboy Slim
Faithless
Armand van Helden
Whereas a high proportion of Itchy FM’s output would be music from the past 10 years – proving a real
and critical point of difference - we believe that, as in other markets, an older focussed second FM
service would simply end up as a “me too” carbon copy of Pirate FM.
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Our Format commitment will be “To be the station that is passionately focussed on serving Cornwall’s
15-34”; this phrase encompasses not just the station’s musical output but the overall attitude and
personality of the station: to serve Cornwall, you have to love Cornwall.
Understanding that young musical tastes change, Itchy FM should have the flexibility to deliver against
these ever changing tastes and interest of young listeners in Cornwall. Itchy FMs format will evolve so
as to move with musical taste changes to retain its relationship with young people in Cornwall.
Specialist programming
Although access to a different daytime music service is needed by the county’s under 35s – it is
essential to examine the specialist music genres alive in the county and express them on-air.
Specialist music tracks and genres that are ‘less than mainstream’ (Hip-Hop, Skate Punk, Indie etc) will
be played, but provided within features or specific programme segments, in proportion to our NOP
research findings and ongoing audience research.
The station will build on the special relationship that the youth market holds with new, live and breaking
music. Itchy FM will deliver this credibly, and with reference to the local Cornwall community.
Itchy FM’s specialist output will offer new music of any credible genre, likely to appeal to our Under 35
audience. Alongside this, the station will carefully mix dance music, and its various sub-genres (house,
funky house, some trance), with guitar based indie music, and specialist strands including more leftfield
output (rap, R&B, rock, skate punk), as per audience indications in our research and county wide focus
groups.
Specialist music programmes will be fully produced giving not only access to the music, but also the
personalities and stories behind the tracks played. Specifically, established local promoters will be
invited to present specialist shows, such as Jelly Jazz’s show featuring classic funky tracks with high
profile musical special guests. They may give a potted history of their work, play some of their tunes
throughout the show and express their feelings about the county’s burgeoning music scene.
We have also had very productive discussions with the County’s most popular night club venues
regarding producing a sponsored radio show of appeal to our audience, and as a promotional channel
for the venues.
As outlined in our marketing section, the editor of “Stranger” magazine, Helen Gilchrist, has proposed
and will co-present a weekend specialist magazine show (“Stranger Sounds”), as a young version of
the popular Desert Island Disc feature, enabling local promoters, artists, spokespeople and especially
visitors to the county to discuss their personal musical preferences, from the more specialist output,
often alluding to the background of today’s popular tracks. In addition the Stranger Sounds Show will
include edited highlights of backstage interviews and other uniquely local programme features.
The station’s content and style of delivery of speech will differ from that provided by Pirate FM,
particularly for news and information. Not only because Itchy FM’s information output will be fervently
Cornwall as expressed in our on-air brand of “Cornwall’s 105-107 Itchy FM” – rather than “The South
West’s Pirate FM”.
Speech policy
The energy, eclecticism and dynamism of the Cornwall youth lifestyle will be reflected in the Itchy FM
editorial policy, which will provide a true community service, central to the youth lifestyle. The Itchy
Cornwall ethos is to popularise issues of interest and concern to this community, which is continuously
seeking orientation and advice. Steering away from traditional dumbed-down youth media, Itchy FM’s
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spoken word content will provide editorial and opinions specific to the local community. Features on
music, film, clubs, the internet, comedy, sports, news and social issues will make up most of the spoken
word content.
The news and information service on Itchy FM will be delivered in a differing style and outlook with
production values that are crucial to attain the attention and interest of the core audience.
Itchy FM will not ‘stop for news’. News bulletins and information breaks as are currently provided by the
majority of broadcasters will not be present on Itchy FM: the ‘news’ output will be brought closer into the
general programming mix, so that it is inclusive. The bulletins will run 90-seconds before the ‘top of the
hour’, written with a local and human interest style with an agenda specific to the informational
requirements of the station’s core demographic. Itchy will not broadcast ‘Caradon Council news’, Itchy
will broadcast ‘the impact that Caradon Council decisions will have of the county’s under 35s’.
Music will be the primary driver of listeners to the station, but due to the isolated nature of parts of the
Duchy, a concentration and attention to detail on the station’s speech output will be essential. As
illustrated in the market research, Itchy FM will use its understanding of the youth market, local market
and radio listeners to ensure that information is imparted on issues of relevance and concern to the
target audience, while also providing local organisations access to a local media outlet in areas that will
help develop the county’s economic and social concerns.
Responding to our research, Itchy FM’s speech policy has been carefully prepared to help keep the
station relevant to Cornwall youth. This approach includes ensuring that the station management
respond to the interactive programming activity (‘Direct Response Radio’), and use this to ensure the
station remains reflective and proactive in its coverage of social issues relevant to either the general
youth community or Cornwall Under 35s in particular. In addition to the station’s social action
programming and issues based speech output, the station will utilise fun speech issues to create a
distinct on-air identity for Itchy FM.
Style of presentation
The fresh, informative and cheeky presentation style will differentiate Itchy FM from the heritage station
– Itchy will be ‘up-front’, irreverent and intelligent. Our focus group research shows that Cornish young
people are looking for a more challenging style of presentation and we will deliver this with a fun-loving
style that is relevant to being a young person in Cornwall.
• provision of local material
Itchy FM believes that its success in winning audiences from BBC Radio 1 will be through its strong and
credible commitment to local content. Itchy FM intends for all its regular live programming to be
broadcast and produced from studios in the county. Itchy will train and develop local talent – both on
and off air – as we understand that people with a passion for their home county are a vitally important
element of a local radio station.
Our local output will extend off-air through flagship specialist shows interlinked with our events
marketing strategy, such as our “Live & Local” showcase reflecting the significant interest we have had
from young people
“I support this because there needs to be a platform for people to listen to local material…I think a radio
station is the missing piece in this puzzle, acts can get their music across to their intended target
audience, who may not be in a position to hear about the acts in any other form.”
Male (26), via website
“You should broadcast recordings of local youth bands playing gigs to get them heard on the radio”
Male (16), media studies student, Liskeard
49

Community partner
Management have demonstrable experience at gauging this delicate mix of spoken word issues and
relevance within youth format radio.
Itchy FM will become a key partner for the region, uniquely able to communicate with this hard-to-reach
youth demographic, which is largely overlooked by established media, and enable local businesses and
organisations to advertise their products and services to our historically difficult to reach audience. The
radio station will become an integral part of regeneration; recent developments such as the CUC
(Combined University Cornwall), Objective 1, and the Education Business Partnership underline the
importance of young people in the future of the region. Our success will be underpinned by the ability to
reflect and engage the interests of the target audience and the needs of the region it serves. Our
consultation included speaking with the Cornwall County Council with regard to the “Making a
Difference: Cornwall’s Community Strategy [Mar 2003]”, which recognised that “action is needed…to
recognise the needs of young people…in particular”. We have worked to include many of the strategy’s
recommendations and plans within the fabric of the station. We will produce issues based features
working with a variety of local support organisations with similar beliefs that youth targeted commercial
radio can act as a catalyst; one of the tools to regenerate the county.
“Young people need to be provided with a fair share of community facilities. Your plan for a youth
oriented radio station seems like an excellent initiative to help involve them in the wider community, and
for the wider community to learn more about the perspectives of young people”
Frances Truscott, Regeneration Consultant, Future Perspectives Co-operatives Ltd
For example, our social action programming initiatives to help “Increase in the proportion of young
people in employment or education” will include:
o “WorkWise” job advice and skills feature in weekday daytime schedule
o “Moving On” seasonal programming features for school and college leavers (working with
confirmed local content partners including Connexions – The Youth Service and the Education
Business Partnership)
We will also create 2 minute features on any of the businesses, organisations or charities selected to
participate in our Social Marketing Fund initiative.
• provision of locally made programming
Programming will be live and local save for 8 hours per week that will be used to ‘buy-in’ national
syndicated programmes that have a musical focus on the core demographic. This is not expected to
include syndicated network “pop charts”.
(iii) programme-by-programme weekday schedule
Itchy FM will undoubtedly provide a voice and a much needed focal point for the broad youth
community living across Cornwall County. Itchy FM is the only means for this influential and spread-out
population to be communicated to en masse, to have a local commercial radio station targeted
specifically at their tastes and lifestyle and to galvanise the current enthusiastic activities undertaken by
Cornish youth.
Our programming is often going to be talent-lead, and as such we expect our local talent recruitment
and development to significantly inform our output. A broad sample of our programme schedule is
available to Ofcom on request as developed by our Managing / Programming Director.
50

(b) Proposed format
Licence Outline
CORNWALL’S 105-107 ITCHY FM STATION FORMAT
ation Name Cornwall’s 105-107 Itchy FM
cence Area Cornwall (as defined in Ofcom’s Measured Coverage Area
map.)
105.2 MHz and 107 MHz
Frequency
24 hours a day (at least 18 hours weekdays and 14 hours at
Service Duration weekends locally produced/presented)
Definitions
eech “Speech” as defined in the Format excludes
commercial minutage, programme/promotional trails
& sponsor credits and may be calculated over
daytime.
Music Any music percentages are calculated on the basis
of the number of tracks broadcast.
Peaktime(s) “Peaktime(s)” refers to Weekday Breakfast and
Afternoon Drivetime output, and Weekend Late
Breakfast.
“Daytime” refers to 0600 to 1900 weekdays, and
Daytime
weekend output from 0800 to 1400.
Locally produced/presented Production/presentation from within the licence area,
to include peaktime save for seven hours per week
(out of peaktime).
Character of Service
PASSIONATELY FOCUSSED ON SERVING CORNWALL’S 15-34 YEAR OLD AGE GROUP WITH A
MIX OF NEW AND CONTEMPORARY RHYTHMIC MUSIC AND LOCAL INFORMATION
Detail
The station is targeted at 15-34 year olds and is music-led with information and features of particular
local and demographic relevance. Speech should not normally fall below 15% of daytime output. Local
news will be aired at least hourly during peaktimes. The music is a spread of current and new music,
no more than 20% of the music will be older than 10-years. In non-daytime music will vary with more
emphasis on local and more generally accepted specialist music genres. The service will be based
within the licence area. Daytime automated local output will not exceed 3 hours.
51

SECTION 105 (D): EVIDENCE OF LOCAL DEMAND OR SUPPORT
(a) Evidence of demand
This section should provide an analysis of the reasons as to why it is considered that there is a demand
for the type of service proposed, with reference to the size and nature of the proposed target audience.
If original market research has been undertaken, please provide the following information:
o A statement of the key objectives of the research
o The specific questions that the research sought to answer
o How the research was conducted
o The size and composition of the samples
o When and where the research was conducted
o A summary of the main findings from the research, showing how these demonstrate evidence of
demand for the service proposed
o Full data tables for any quantitative research undertaken (these may be submitted in
confidence)
To assess the demand for the proposed service, and its financial viability, IMD Radio has undertaken
an extensive programme of research and consultation over several years. The first piece of research
we analysed started with a broad sweep of general radio listening in the South West, and our research
has become more focussed throughout the last few years. It has culminated in IMD Radio
commissioning a very extensive piece of final research - an NOP Study of Cornwall’s young adult
listenership by Edison Research in November 2004.
In addition to the qualitative research, we have conducted a monitoring study, RAJAR analysis, focus
groups and consultation. To understand demand for advertising and sponsorship, we have conducted a
full revenue study.
The NAA study two years ago set the scene. In September 2002, NAA Research conducted a demand
study which we have used to further understand the marketplace. The sample covered Truro and
Newquay, but also included Plymouth, and covered the 15-44 year old market, in order to gain a
general overview of the shape of the South West’s radio market. The main findings were that 60% of
all listeners under 44 listened to BBC Radio One and 64% of ILR listeners also tuned to BBC Radio
One (with the greatest propensity within the under 35s), demonstrating low loyalty to existing
commercial services. BBC Radio One was more likely to be listened to for new music than the existing
heritage ILR stations. A commercial station that would provide a locally relevant service in a manner
that would draw listeners from BBC Radio One appeared to be the gap. This was just one of the
factors IMD Radio Cornwall has used to hone its proposition.
52

NOP Study – November 2004
Edison Media Research was commissioned by Itchy FM to carry out an independent study of young
adults aged 15 to 39 years in Cornwall. The key objectives were to understand the listening habits,
tastes and interests, music preferences and to obtain evidence of demand for a new radio station which
targets a young adult population aged 15-34; we actually sampled up to age 39 to fully understand the
older edge of the market. Specifically, the study sought to provide answers to the following questions:
• What radio stations are currently listened to by this demographic?
• Which station is favourite and why?
• What are specific listening habits, preferences and are there any trends?
• What makes a good radio station in terms of style, content and theme?
• What are the satisfaction levels and reasons for listening to existing radio?
• Are existing radio stations fully serving this demographic?
• To what extent will listeners try a new radio station, such as we are proposing?
• How will this new radio station affect existing radio listening?
• How do respondents feel about the music ranges we sampled?
• How are we extending choice – where else can you get this music?
• Can we find out main attitudes to music and media consumption?
• How much interest is there in live music, events and station activities?
• What music and brand opportunities exist for a new radio station for young adults?
400 Respondents were interviewed using computer assisted telephone interviewing administered by
NOP World in London. Each survey averaged 22 minutes in length. A postcode-specific random digit
dialling methodology was used to ensure a representative sample. All interviewing was subject to
rigorous monitoring: in accordance with ESOMAR guidelines, 12.5% of all interviews were monitored by
a supervisor. The survey included music sampling. Fieldwork was conducted between the 18th and
24th November 2004. The full tables of this research accompany this application in the confidential
appendix.
Summary of Main Findings of NOP Research Study
Based upon our extensive survey of the Cornwall radio market among 15-39 year-olds, there is a clear
market gap for a new, local, youth-targeted radio service for the county. The young people in this
market are mostly listening to BBC Radio 1 and not exhibiting significant satisfaction with their current
options.
We specifically tested a new radio station that features Dance, Indie, Rock, and more mainstream hit
music that is not being played by local stations. There is very broad interest in such a radio station;
nearly two-thirds of those surveyed responded positively to our description of a new service. In
particular, males and BBC Radio 1 listeners would be most attracted to such a new service.
The research clearly shows that by adding a new radio station that plays music that can’t be heard on
existing local commercial radio and which has a strong local commitment with relevant lifestyle
information and a presence in the community, will clearly increase total listening to radio in Cornwall
and will create stronger satisfaction with the medium in general.
53

Existing Listening Habits
BBC Radio dominates the younger market: An
considerable portion of current radio listening in
Cornwall is going to BBC stations. 56% of
respondents lists one of the three primary BBC
channels (1, 2 or 4) as their favourite station. BBC
Radio 1 is dominant with 42% saying they listen to
the station most.
Amongst 15 to 24s, BBC Radio 1 dominates even
more completely: An incredible 62% of
respondents in this age group list BBC Radio 1 as
the station they listen to most, their P1 station.
Satisfaction with radio in general is
quite low, no doubt owing to the lack of
options. As compared to what we see in
markets around the world, far fewer
Cornwall residents are “completely
satisfied” with their P1 station.”
BBC Radio 1 listeners have a very low
level of satisfaction for the station: An
exceedingly low 28% of BBC Radio 1
listeners say they are “completely satisfied”
with that station. Among 15 to 39s, Radio 1
and Pirate FM own the market; being the
only two stations with significant cumulative
audiences: 73% and 78%, respectively, of
the 15-39 year olds in Cornwall say they
have listened to these stations in the week
before they took the survey.
Research indicates that younger listeners (those under age 35) will be significantly more receptive to
this new station than those at the older end (age 35 to 39). A few examples:
Market wide Station Satisfaction:
When looking at listener's satisfaction with the radio station they listen to most, those aged 35 to 39 are
significantly more content with their current choices than those aged 15 to 34.
Among 35 to 39s, 40% are "completely" satisfied with their current favourite station. In contrast, only
30% of those 15 to 34 are "completely" satisfied.
In addition, 90% of those aged 35 to 39 are either "mostly" or "completely" satisfied with the station they
listen to most. So, while this new format option scores very well among younger listeners, those aged
35 to 39 are less likely to abandon their current "favourite" station when it arrives.
Pirate FM ("listen to most") Satisfaction:
Among those who listen to Pirate FM most, younger listeners are far less satisfied with the station than
older listeners. Among those 18 to 34 who listen to Pirate most, only 29% were "completely" satisfied
with the station. Among those aged 35 to 39, 45% were "completely" satisfied. In addition, twice as
many 18 to 34s said they were "not very" satisfied as those aged 35 to 39 (17% to 8%). So, again
listeners on the older end are less likely to switch stations because they are more content with that
what they currently have on the radio.
54

Interest in New Radio Station:
When asked how often they would listen to this new Dance/Indie Rock station, listeners aged 15 to 34
demonstrated a significantly larger appetite for the station than those aged 35 to 39. Among 15 to 34s,
59% would either listen to the station "a lot" or would make it their "favourite" station. Among those
aged 35 to 39, this number is only 50%. The percentage that would "rarely listen" was also higher
among the older group - 19% - as compared to 12% for the 18 to 34s.
Market Gap
The data clearly shows a gap in the market: When combining the low station satisfaction among
Radio 1 and Pirate listeners with their enormous listening base, the need for additional radio choices for
this target group becomes clear. The statistics clearly show a sizeable number of listeners listening
because there are no better options currently unavailable to them, NOT because they love their current
options.
Whilst the majority of BBC Radio 1’s listeners are least
satisfied, Pirate FM’s appeal does reveal an element of
compromise; 37% of respondents state that Pirate FM
plays a lot of “bad songs combined with some good
ones”. We cross-tabbed this response against Pirate FM
listeners and their responses to interest in local
information, such as news, travel information and details
about events. Interestingly, around 9 out of 10 Pirate FM
listeners regard local information on the radio as
important. This does suggest that that existing Pirate FM
listeners listen to identify with a local radio station, but
are compromised by a music policy which is musically
targeting an older demographic.
Those most interested in a dance / indie radio station were also those who are most dissatisfied with
existing radio choices, indicating that the market gap for this age profile is most suited to Itchy FM’s
format.
When asked how much they might listen to a new radio station which played Dance / Indie Rock, 57%
of all respondents said they would listen a lot or make the radio station their favourite. Males are slightly
more likely to listen heavily, especially in the 15-24 age group.
57% of respondents who regard Radio 1 as their favourite station were likely to listen a lot, with a
further 11% saying that the new station would become their P1 station. Of the 58% of Pirate FM P1
listeners who would listen a lot, 11% stated the new station was likely to become their P1 station.
55

Music Tastes and Interest
The NOP survey sampled a range of music styles with each respondent, which we have categorised
using the table below.
Music Style Sample Artists
Pop Rock Maroon 5, Keane, Rasmus
Pop Dance Eric Prydz, Mash Up Kids, Shapeshifters
Credible Pop Outkast, Natasha Bedingfield, Pink
Skate Punk Avril Lavigne, Blink-182, Green Day
Rap / Hip-Hop The Streets, D-12, 50 Cent
Classic Dance Basement Jaxx, Faithless, Fatboy Slim
Hard Rock Lost Prophets, Marilyn Manson, Queens of the Stone Age
Club Dance Deep Dish, Scissor Sisters, Tomcraft
R & B Twista, Usher, Ashanti
Indie Doves, Snow Patrol, The Hives
The most popular kinds of music are what we termed Pop Rock, Credible Pop and Pop Dance. There
was also significant interest in all the of music styles we tested, including Rap & Hip-Hop, Hard Rock,
Indie Rock, and all forms of Dance.
56

Radio listeners in Cornwall are well aware that they can hear most pop music types on the radio. But
there is lower perception of a station providing Dance music, and an even lower perception for a station
providing Rock. The music types with the fewest people knowing where to find it on the radio were Hard
Rock and Indie, followed by Club Dance, Classic Dance, and Rap & Hip-Hop. These music types
appear to be under serviced by the available radio options in Cornwall.
The music sampling shows that this age group favours a wide variety of music categories, but is unable
to find this choice on Pirate FM and also Radio 1. It is clear that Pirate FM gets the “who plays that type
of music” image for many music styles by default. While Pirate FM has image for all music types, this is
primarily a function of their current broad variety and lack of competition. Their images for Pop music
types are much higher than their images for Dance or Rock music types. This supported by our
monitoring study which shows that Pirate FM’s music output only represents a very small proportion.
Interest in new Dance / Indie station is
high: We asked respondents: “How much
would you like or dislike listening to a new
radio station that plays a fresh mix of
current & new music selected from Dance &
Indie Rock, along with some mainstream
music currently not heard on local radio in
the county, and would provide relevant
Cornwall lifestyle information for the youth
market?” Fully 64% of 15-39s gave a “4” or
a “5” on a five-point scale to this idea.
Interest was highest among men and
among Radio 1 listeners. This station would
appeal to people throughout all ages within
15 to 39.
57

Spoken Word
The research suggests a real opportunity for commercial radio at breakfast time. Respondents tell us
they want a fun, entertaining morning show: 57% choose a station with “a lot of entertainment and fun
personalities mixed with music”, while only 33% choose “a lot of music with minimal chat”. Currently,
BBC Radio 1 appears to be the only option for these people – 69% of those who want an entertaining
morning show listen to BBC Radio 1 most in the mornings. The BBC Radio 1 Breakfast Show
dominates the market; among those who listen to radio in the mornings, 45% choose BBC Radio 1.
Speech elements, such as news, information and interaction are regarded as important by the
overwhelming majority of respondents. About 8 in 10 of all respondents felt that frequent news bulletins
for Cornwall were important, of which half regarded this as “very important”. There was very similar
importance attached to information about concerts and live music.
It’s certainly bad news for those DJ’s who like to talk up to the vocals – 8 out of 10 respondents said it
was important for this not to happen. But the content of speech is key; respondents indicate that the
presenters should be knowledgeable about the music played and 76% regard radio as their primary
source of finding out about new music – which is 40% more than the number who view music TV
channels and nearly 8 times more than the 11% who get their information from music magazines.
Effect on Listening Trends
Itchy FM will most appeal to the remarkable 62% of listeners aged 15-39 who regard BBC Radio 1 as
their favourite (P1) station. 71% of Pirate FM’s audience is aged 35 or over, 5 and it is unquestionable
that Itchy FM will also appeal to a significant proportion of its much smaller, younger audience.
Those who love Radio 1 and Pirate FM will not stop listening because of this new Dance/Indie
station: There is clear evidence from the data that those who are “completely satisfied” with what they
hear on Radio 1 and Pirate FM are unlikely to leave those stations for this new station. Rather, the
sizeable market for this new station would come from those who are NOT “completely satisfied” with
their current choices. Only 3% of those who currently listen to Radio 1 and are “completely satisfied”
with the station would make this new this new Dance & Indie Rock station their “favourite”. Among
Pirate FM, only 11% of there core listeners would make the new station there “favourite.
There is significant evidence that this
new station would increase the time
people would spend listening to radio in
Cornwall. A significant 34% of the
sample said that they would listen to
radio more if the new station described
were to come on the air. Among those
who said they would listen less to
existing station, a large portion cited
BBC stations as the stations they would
decrease time with.
It is those who are most interested in a
new radio with our proposed format who
are NOT satisfied with their existing
choice of radio in Cornwall.
5 Source: RAJAR quarter ending: 09/04
58

Research Conclusions
This format clearly extends choice...
The NOP survey confirms that Itchy FM’s format of credible new music with a dance and indie rock
theme is very popular amongst the 15-39 demographic sample, most appealing to those least satisfied
with existing radio stations.
This format will bring listeners to commercial radio from the BBC...
Whilst existing commercial radio will inevitably see erosion of its younger audience, the study shows
that those least well served will migrate to the new radio station – and it will be predominantly BBC
Radio 1 listeners who will switch to a local station offering the right mix of music and speech.
This format will increase radio listening in Cornwall...
More than a third of respondents believe that they will consume more radio than before, if a station with
this format is available to them.
This format is in demand...
Only 14% said they would listen to a station like Itchy FM “very rarely”, demonstrating the very real
opportunity to win over new listeners in Cornwall and provide them with the radio station that they want.
59

(b) Evidence of support
In addition to the quantative and qualitative research undertaken by IMD Radio, we have also identified
a huge amount of support throughout the last 5 years of lobbying and local consultation.
From summer 1999, Ian Merricks started receiving requests from local people (Plymouth and Cornwall)
for a new permanent station in the South West. Our summer RSL in neighbouring Plymouth reached
the Cornwall boundaries (Saltash) and we had a number of complaints from young people in Cornwall
who had read about the station but could not listen to it. As one of the local newspapers reported on
the eve of the station’s launch “Whatever people say, we don’t have a dedicated youth market radio
station, serving Cornwall, but this could be the start…”
Ian Merricks commissioned a review of the potential for a permanent youth radio station broadcasting in
the South West, and appointed a Project Manager to assess local interest and potential support. The
research demonstrated that the whole of the South West area was underserved by local radio, with the
youth demographic having the least choice of relevant commercial radio. This activity culminated in an
initial letter of intent being sent to David Vick at The Radio Authority in September 1999.
The letter alluded to the extensive and ‘unprecedented’ local support that had been received by the trial
station – from an audience, “comprising local young people”, and went on to outline the gap in the local
marketplace, suggesting that “a young ILR license covering…would be able to sustain itself in terms of
both audience and commercial support” as its only competition would come from “Pirate FM, a regional
‘adult contemporary station’ “.
Over the last 5 years, the management of IMD’s historic radio experience, alongside growing expertise
in wider youth media and marketing has been integral to ensuring that this license application in
Cornwall remained a priority at Group level, despite numerous changes to the licensing timetable. To
date, a massive amount of local work has been undertaken to help create this application and
demonstrate support from local Under 35s, the wider community, businesses active in the youth market
and other prominent local organisations. This activity, taking in commercial, audience and community
research is summarised (briefly) below.
Activity outline:
• Face to face meetings in the County with over 250+ individuals (since IMD Board meeting
May 02 sanctioning application)
• Appointment of Koru Communications, a Wadebridge-based marketing consultancy to
manage our Local Partnerships Programme (since July 03)
• 5 high profile advisory committees formed
• Received letters of support from partners
• Received expressions of support from potential listeners
• Held a series of youth consumer research sessions across Cornwall
• Local feedback invited and received regarding OfCom consultation
• Monthly e-newsletter to hundreds of County-wide decision makers
From Ofcom’s guidelines we understand the regulator is not looking for extensive letters, or detailed
reports and as such we have not submitted nor actively solicited evidence in this format. We do
however have an extensive meeting log report, detailing dates and times and meeting outcomes for
each of our 250+ face to face consultations. We also have numerous letters of support from listeners,
local businesses and organisations and national brands, collected over the last three years. From this
bank of evidence of commercial, community and audience interest and support for the station, we have
60

collated a number of the most pertinent quotes from which we have shaped our business and
programming plans. We are certain that this goodwill can make an invaluable impact on our plans to
launch the station, and we take pleasure in seeing our local youth radio proposals being adopted as
wholeheartedly by local decision makers.
“I think your idea for a youth based radio station is a strong one”
Tim Smit, Founder, The Eden Project
“I support the IMD bid as there is a huge gap in the radio market in Cornwall. There is no provision for
new or local music and there is plenty of talent to be found in Cornwall. The station needs new music,
local artists, local presenters with good musical knowledge, ads which are relevant to a youth audience,
and close contacts with the local colleges”
Male (39), Broadcasting Lecturer, Cornwall College
“If you do get the Ofcom licence to create a new
station in Cornwall for younger people, that would be brilliant. It is just
what Cornwall needs.”
Male, FCA Student
“I'd like to hear more … events happening in my local area that I should be hearing about".
Male (18), Student, Truro
3 additional letters are attached in a separate PDF.
61

A selection of comments from letters / emails received by the applicant:
I own and run The Chy Bar + Kitchen & The Koola Klub, Newquay. Both venues cater for the ever
growing youth market, and booming tourist trade. Having found out Itchy FMs’ intentions and direction I
am totally behind their bid to host Cornwall’s new radio station.
There is a massive demand for the right sort of new station and I feel Itchy would fill this gap perfectly.
I also run an events company, this focuses on surf / music tours. Itchy would be a perfect media partner
in these projects. Not only for advertising but also for media interest. The K Festival was launched this
summer to provide Cornwall with its’ very own music festival. I see this as an obvious project both
myself and the station could benefit from.
Many other events could also benefit with radio link-ups and shows broadcast live from the Klub or bar.
Ian Whittaker, Owner
Chy Bar & Kitchen / Koola Klub, Newquay
As Marketing Manager for one of Newquay's major entertainments companies PAVH International Ltd, I
would like to give my support to a radio station aimed at the youth market.
Our company runs Berties nightclub (Cornwall's largest), and a variety of other clubs and bars in
Newquay. Many of our customers listen to Radio One, and we work closely with Radio One during the
summer months. Many of their DJ's play our venue and we get involved in their outside
broadcasts. The reason behind this is because at the moment there is not a local radio station which
appeals to our target market.
During the summer months most of the major drinks companies and many firms targeting the youth
market descend upon Newquay. Population raises from 10K to 100K a week, as the countries youth
descend upon Cornwall's premier tourist resort. A station targeting a youth market would have great
advertising potential during this period, but like most other businesses in Cornwall would need to
generate the majority of its revenue during the summer.
Local radio cannot target this transient market at the moment as Pirate FM needs to be a station to "suit
all" to be successful, we know this is hard to do with an uncompromising teenage audience. A station
targeting this market somewhere between radios one and two could be successful here. This would be
extremely useful for our company and many others wanting to tap into the youth market, only served by
national radio in Cornwall.
I feel 'IMD's Itchy FM therefore are at least offering us an alternative to what is already being heard on
the radio in Cornwall, and if successful a platform to target our target audience.
Tony Townsend
Marketing Manager PAVH International Ltd. [Owners of Hotel Victoria & Health Club, Berties Club &
Pub, Fosters Club & Pub & Steak House, Senor Dick's Mexican Restaurant, Buzios Cafe Bar
Restaurant & Pool Hall, Red Square all in Newquay].
62

Local meetings
Summary of some of the businesses and organisations consulted with during May 2002 and October
2004. Our Local Partnership Programme involved IMD Radio consulting with more than 300 individuals
across 250 organisations, businesses, education establishments and youth consumer groups.
Summary meeting notes are available on request.
AfterDark Media Ltd, 24:7 Magazine
Ambrook Lecture Club
Amplifeyed
B.T. – regional head
Bar 200
Barefoot Media
Battle of the Bands (Newquay)
Beach protection charity
Big Air Kitesurfing school
Big Friday
Blue Fish Promotions
Bude Airculture
Business Link for Devon & Cornwall
Buzz magazine
Camel Valley Vineyards
Carbon Chip Ltd (Plymouth)
Chilli Media
Close Focus Marketing
Coleridge Production
Combined University Cornwall
Connexions
Cornish Cuisine
Cornish Guardian
Cornish Stairways Ltd
Cornwall Arts Centre Trust Ltd
Cornwall & Devon Media Ltd
Cornwall Arts Marketing,
Cornwall Business Partnership
Cornwall College
Cornwall County Council
Cornwall Enterprise
Cornwall Film fund & Cornwall Film Festival
Cornwall Outdoors
Cornwall Property Developer
Cornwall Sports Partnership Manager
Cornwall Youth Service
CPR Urban Regeneration Company
Creative Kernow
Creative Partnerships
CSV
Cultural Industries Task Force
CYMAZ
Digital Peninsula Network
Digital Evolution
Eat Art
Economic Forum
Eden
Eden Events
Education Business Partnership
Electric December
Enable
Environ
Excel Programme
Extreme Academy
Fact Finder
Falmouth College of Arts (CUC)
Falmouth Maritime Museum
Film Festival and Film Fund
Finance Cornwall
Follett Stock
Force 4 business
Fowey community college
Federation of Small Businesses (Cornwall)
Great Atlantic Way
Glanvilles
Globe Pub Truro
Green Rooms
Hall for Cornwall
Happy Days
Head of Business Treviglas
Head of Business Wadebridge
Head of Cornwall Association for the Blind
Head of Cornwall Youth Action Zone
Head of Health Promotion
Head of Young Enterprise in S.W.
Head of Youth Volunteer Service
Head Teacher Penryn College
Hustyns Private Holiday Village
In Pursuit of Excellence / Cornish Lectures
Kernow Trek
Koola Bar
Korado Ltd.
Koru Commuications
Learning Skills Council
Last Friday Network
Let’s Do I.T.
Liskeard School & Community College
Lizard Penninsula Tourism
Llanhydrock Accountancy
Lloyds TSB – Cornwall
Local band county finalist of battle of the bands
Lusty Glaze
Malibu Surf FM
Marine Network
MCET
MET Media
Mid Cornwall Enterprise Trust
Motion Grafik
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Mount Hawke Skate Park
Munding Group
Newquay Uncovered Ltd
NMM
Objective One
Orchard Media
Organiser of the freestyle skateboarding competition.
Owner of businesses in Camborne area
Penzance Chamber of Commerce
Pirate FM
Plays on the Net (radio production company)
Plymouth Evening Herald
Plymouth Music Co-operative
Princes Trust
Producer Inside out BBC
Pro-surf
Radio Penzance
Radius Records (Plymouth)
RAF St. Mawgan
Regional Sports Board Chairman
Rehearsal studio project
Roughcuts
S.W. Business Link
S.W. Film Studios
Scouts in Cornwall
Shell Livewire Winner
SLA
Soundlive Cornwall
Sports Action Zone
St. Agnes Film Exhibition
St. Merryn Meats
Student Union
Surf Life Saving Association
Sustrans Cornwall and Plymouth
SW Regional Development Agency
SW1 Promotions
Media studies lecturer, Truro
The Foyer Social Housing Project (Padstow)
The Hub (Youth Business Network)
Treviglas Community College
Treviglas Comprehensive
Truro College
Truro School for Girls
UK Internet
Vice Chair of Cornwall Leisure Officer Group
Visit Britain
Vocational Education co-ordinator
W.E.T.Trust
Wadebridge Town Council
Wadebridge Town Forum
Watergate Bay Hotel
West Briton
West Coast Surfari
Western Morning News
Worldwide Financial Planning
Young Farmers Association
Youth Millennium Volunteers
Youth Project Padstow
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