Kismat FM - Ofcom Licensing

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Section 105(A): Ability To Maintain Proposed Service Kismat Radio Manchester's Asian Population Greater Manchester is home to a significant and rapidly growing Asian population. Today, there are over 148 000 Asians representing 6% of the population of the metropolitan county, a proportion that is estimated as high as 10% by 2010. Significantly, Asians are particularly concentrated in a number of towns in the area, largely the old mill town districts: Bolton, Bury, Manchester city, Oldham and Rochdale. As a result of this centralisation, it is estimated that the Asian population amounts to over 8% of the more restricted area effectively covered by this licence. Half of Manchester's Asian population is of Pakistani origin, another quarter Indian and the remainder Bangladeshi or other origin. Those of Pakistani and Bangladeshi origin make up nearly two-thirds of the Asian population, compared with London where the largest proportion is of Indian origin. Those of Indian origin are principally concentrated in Bolton, with Pakistanis and Bangladeshis mainly in Manchester, Oldham and Rochdale. There has been and continues to be a higher birth rate among the Asian than the overall population: 28% of all Asians are under the age of 15. As a result, the age profiles compared with that of the general population shows a younger bias. Nevertheless, the over-35's targeted by Kismat account for 48% of the Asian population (29% over 45). Business Plan We believe Asians in the Manchester area, particularly older members of the community, have less real choice among existing services than the general population. Mainstream audiences in Manchester have a range of services second only to London: six local or regional commercial stations, a number of smaller-scale alternatives and the full range of BBC radio. We are satisfied that there will be significant demand for Kismat, both from listeners and advertisers in the Manchester area. But the market for Asians is only a fraction of the general population. The revenue potential and operating requirements are not the same for a minority station as for one that addresses the whole market. Sunrise Radio has been successful because it understands the Asian marketplace and the realities of serving a minority audience. The financial projections for Kismat radio reflect this market knowledge and experience. Business Plan All People All Asian Asian % GREATER MANCHESTER - ASIAN POPULATION Mixed Asian Indian Pakistani Bangladeshi BOLTON 261 037 24 614 9.4% 970 15 884 6 487 268 1 005 BURY 180 608 7 954 4.4% 643 1 211 5 492 168 440 MANCHESTER 392 819 38 336 9.8% 2 459 5 817 23 104 3 654 3 302 OLDHAM 217 273 26 493 12..2% 686 1 562 13 754 9 817 674 ROCHDALE 205 357 20 891 10..2% 769 743 15 829 2 594 956 SALFORD 216 103 3 484 1.6% 495 1 196 963 402 428 STOCKPORT 284 528 6 882 2.4% 915 1 867 2 949 353 798 TAMESIDE 213 043 8 973 4.2% 506 3 087 2 596 2 493 291 TRAFFORD 210 145 9 225 4.4% 717 3 883 3 613 243 769 WIGAN 301 415 1 713 0.6% 387 681 400 72 173 TOTAL 2 482 328 148 565 6.0% 8 547 35 931 75 187 20 064 8 836 % Asian 100% 5.8% 24.2% 50.6% 13.5% 5.9% ONS Census 2001 Other Asian Section 105 (A): Page 13
Section 105(A): Ability To Maintain Proposed Service Kismat Radio Revenue Projections Our experience in London shows that Asian businesses demand a different way of buying advertisng space. They are more content with long term commitments but require with it a greater degree of flexibility that is more aligned to the changing short term needs of what are predominantly family-based retail businesses. Economic activity amongst Pakistani and Bangladeshi women is lower than the population at large (in common with these communities in the rest of Britain). This is largely accounted for by social and cultural reasons. Nevertheless, these women have a significant sway over the spending priorities of families. Added to this is the respect and control that older members of the Asian communities exert (again due to social and cultural reasons). As younger Asian businesses recognise, economic decisions and advertising budgets remain largely controlled by the older family members. Kismat will build its local business based on the Sunrise sales model and our financial forecasts have drawn on the actual performance of Sunrise Radio, the yield rates generated, the pricing structures, inventory levels and the size and structure of the sales team that is necessary to exploit the full potential of the market. From this, we established the spot rates for Manchester that generate the revenue lines in our financial forecasts. The assumed average spot rate represents about 20% of the non package spot rate for Sunrise’s local sales in London. The yield rates used for comparison are based on Sunrise Radio’s actual performance for the last financial year. The comparative data and our detailed revenue forecasts are set out on the ‘Key Revenue Assumptions’ worksheet in the confidential Financial Appendix. Our experience, confirmed by or recent monitoring of Asian Sound, is that Asian stations outside London receive almost no national revenue. In London, Sunrise maintains a significant national sales team that currently generates around 20% of its advertising business. Kismat Radio would be represented by Sunrise for national sales, both opening the door to national sales for Kismat and adding further opportunity for agency buyers. We have therefore included with confidence a modest level of national revenue for Kismat. Costs Apart from the economies of scale that can be generated as part of the Sunrise group in administrative and technical areas, Kismat Radio will be run locally with its own MD, sales team and local newsroom. The cost base set out in our financial forecasts reflects the resources necessary to ensure that level of independence and service, again based on our substantial operating experience. Marketing and Promotion The dynamics of marketing a stations for Asian listeners are different from those of a mainstream station. Awareness among the target community is not the difficulty. We have provided for a smaller marketing and promotion budget that would be the case for a mainstream service. Activity among the community locally remains most important. Our plans therefore focus on the use of posters and specific community events. We have also provided for a high-profile station vehicle that will be out and about in the area on a permanent basis, either collecting news stories and local features or doing live broadcasts from local events, shop openings, fêtes, school sports days and the like. 2. (d) AUDIENCE PROJECTIONS (i) The target audience for the proposed service; Kismat Radio is a speech-based service that is aimed at Asian listeners over the age of 35. We have taken account of the severe interference limitations for this licence. These are examined more fully below, but fortunately do not hamper coverage of Manchester and the surrounding towns that are home to the area's Asian communities. Business Plan / Audience Projections Section 105 (A): Page 14
Page 1 and 2: Kismat Radio KISMAT RADIO LIMITED A
Page 3 and 4: General Information Kismat Radio e)
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Page 23 and 24: Section 105(B & C): Catering For Ta
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Page 37 and 38: Kismat Section 105(D): Evidence Of

Kismat FM - Ofcom Licensing

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