Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

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
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