Business Plan For F.M Radio Station in Sargodha

BUSINESS PLAN FOR F.
M
RADIO STATION IN
SARGODHA

M H R A & C O .
S A R G O D H A
0 3 4 4 - 7 5 9 0 4 0 1
M h r a 2 6 @ g m a i l . c o m
E s t a b l i s h e d i n 2 0 1 3
F.M SAEIN
Music Dose for Everyone with Masti and Fun

Entrepreneurship

Submitted to:
Sir Mohsin Altaf

Submitted by:
M.Haroon Rasheed Awan
Roll# 07(S.S), M.COM 3
rd
Semester,
Department of Commerce,
University of Sargodha

Group Members:

Javid Irshad
Wasim Akhtar
Hafiz Habib-ur-Rehman
Hafiz Answer

Acknowledgement

First and foremost I would like to express my thanks to almighty Allah who
blessed me with enough abilities and knowledge required for the preparation of
this internship report.

Than I want to mention my parents without their Support and Prayers I may
have not been able to succeed in any task in my life than I would like to extend my
humble gratitude to my teachers especially to our Course Instructor Sir. Mohsin
Altaf who taught us with diligence and commitment and furnished me with an
opportunity to write this report in order to get the insight of the subject in a
practical manner and always there whenever I need any sort of guidance or help.

I am also thankful to F.M V.O.V (U.O.S) Head of Station who facilitated us
in the gathering of data regarding the project and provided us with every possible
aspect that we asked for. Without which Completion of project would have been a
lot more difficult. Their Staff is also very cooperative and professional.

I am also thankful to all the staff and my group members that its due to
their effort, hard work and dedication that made this report become possible.

______________________________________

MUHAMMAD HAROON RASHEED AWAN

MHRA & CO. SARGODHA
MHRA26@GMAIL.COM Page 1

Table of Contents
1. Executive Summary
2. Company Description
Company
Mission
Slogan
3. Industry Analysis
4. Market Analysis
Competitors Analysis
5. Marketing Strategy
Product
Price
Place
Promotion
6. Management Structure
7. Operational Planning
8. Product/Service and Design Development
9. Financial Analysis

MHRA & CO. SARGODHA

EXECUTIVE SUMMARY
MHRA &CO. SARGODHA is going to set up a F.M radio station in the city of Eagles, Sargodha, Punjab, Pakistan.
All relevant licenses have been applied for and received and the station enjoys the support of the University of
Sargodha and different city authorities including Local MNA and MPA as well as local groups who have offered
support.

This Radio Station is going to provide nonstop and quality Music for every taste and age including up to dating
their listeners with news breaks at every hours but we are going to hit the Youngster and teenagers most as
they are most active part of the market in this industry.

FM Saein is a new company and as such, we will need to meet market acceptance. To that end, the company is
working to determine trends in the industry, the needs of the customer, what the most of the target market
wants, demands and how best to address the needs of the customer.

We will offer numerous new and emerging local broadcasters the chance to express their creativity and assist
them move up the career ladder by offering them roles that wouldn't have been offered by other stations. We
are about giving new, fresh talent a chance to express their skills and to give them a platform to showcase
their work but we also got Some Famous names in the field of Sargodha radio industry on our side that we are
hoping to provide a Competitive advantage over our rivals

It is vital that our stations are designed to provide specialist programs in music. We will strictly adhere to
community broadcasting's guiding principles of access, diversity, localism and independence.
In our first year of operation we believe we can achieve Rs.3.6M in daily Sale advertisements and Rs0.4M in
terms of SMS revenues.

We believe that we can earn in our first year, rising to Rs. 4M and in our second 5M and third years at a
constant of 5.5M, respectively. Our market strategy will be to advertise and capitalize on the services that our
competitors do not offer.
There are several stations with whom we will be competing. We have a competitive advantage, however, as
we are local and will focus on providing broadcasts by local people for local people.

The company is a partnership firm and all the Capital is going to be invested by the partners along with, which
we are trying to get a credit line of 3 million from bank that will be used to purchase the equipment and
start-up expenses.
Our FM Saein expects to achieve profitability within 3 months of beginning operations.

MHRA & CO. SARGODHA

Company Description
The Company:
MHRA & Co. Sargodha is founded by Haroon Awan. MHRA & Co. is currently a Partnership firm with main
office located in City of Eagles, Sargodha. This is firm is going to enter into the industry of FM entertainment
and make his way through by dedication and by bringing innovations in the field and become a leader of FM
industry in the Sargodha region.
Mission
Our mission is to become the leading radio station in Sargodha, utilizing the latest technology to provide High
Quality Services to shift market share from competitors to FM Saein.
Slogan
Music Dose for Everyone with Masti and Fun

We will offer numerous new and emerging local broadcasters the chance to express and promote their
creativity and assist them move up the career ladder by offering them roles that wouldn't have been offered
by other stations in the Sargodha region. We are about giving new, fresh talent a chance to express their skills
and to give them a platform to showcase their work but we also got Some Famous names in the field of
Sargodha radio industry on our side that we are hoping to provide a Competitive advantage over our rivals and
the Company is intending to provide their staff with state of the art facility and got benefit from most advance
technology and hence providing a quality edge over the competitors.

Industry Analysis

Radio Industry has seen enormous changes in the last few years it sits at a unique moments in its history for
the first time radio as a medium is being targeted with audio alternatives with internet radio, radio is on the
verge of facing new kinds of challenges moreover the pie of advertising revenue for radio is also declining.
Radio on a whole in Pakistan is quickly going down day by day due to this rapid technology and life lane
changings but there are about 116 local Private entertainment Radio stations Regulated by PEMRA (Pakistan
Electronic Media Regulatory Authority) new technology like frequency modulation (FM) and RDS helped this
industry to survive and again enter into a new phase of growth.

MHRA & CO. SARGODHA

Pakistani society is shifting towards change. Media is playing a vital role in this social change. In this regard,
FM channels are being considered as more effective medium. These channels are running under the control of
Pakistani Government.
Now, these are spreading far and wide from metropolitans to towns. Due to this mass acceptance, these
channels are acting as leverage of media revolution. Social scientists are feeling that Pakistani society is
converting into information society, gradually. The majority of Pakistani population is economically poor .The
governments have not paid proper attention towards education. As a result, they can't gain education
properly. Despite all these things, the Pakistani society is in process of change slowly, because media is
influencing on it. Like other low literate societies of world, the radio's role in Pakistani society is also very
significant. Radio's role as an effective source of information, education and entertainment is always
acknowledged in this country .For time being, TV was replaced in urban areas but recent FM radio channels
boom proved to be the resurgence of radio in Pakistan.
What is FM?
"FM (frequency modulation) means the encoding of carrier waves, such as the sound wave or audio signals of
a radio or TV stations, by the variation-modulating-of its frequency resulting in little or no static and high
fidelity of original sound in reception. FM radio stations, from 88 to 108 megahertz, in the VH1 Band (30-300
MHZ) produce reception superior to that of AM or amplitude modulation stations, particularly of music in the
high frequency range."
Pakistan Broadcasting Corporation (PBC) started first set up of FM as 'FM Gold' in 1994.PBC used its own
studios and staff for FM Gold. In Lahore, Karachi and Islamabad from 7:00 A.M till 1:00 PM. as experimental
transmissions, after this, in 1996, PBC started FM 101, as an independent FM channel. In private sector, FM
radio channels were introduced in second regime of the Prime Minister Benazir Bhutto (1993-1997).
An independent corporate body namely PEMRA has been established with effect from 1st March, 2002 in
order to:
"1- Improve the standard of information, education and entertainment.
2- Enlarge the choice available to the people of Pakistan in the media for news, current affairs, religious
knowledge, art, culture, science, technology, economic development, social sector concerns, music, sports,
drama and other subjects of public and national interest.
3- Facilitate the devolution of responsibility and power to the grass roots improving the access of the people
to mass media at the local and community level.
4- Ensure accountability, transparency and good governance of optimizing the free flow of information." 9
This was suggested in a research thesis that for the improvement, FM 101 should transmit its programs 24
hours, more educational programs, live calls should be increased, sound system and comparing style should be
improved, young talent shows, road shows, old songs, information and religious programs should be
increased. 14
Media sources believe that FM radio channels are now on the verge of transmission and these are focusing on
communities and localities. These channels are now moving towards localized set-ups offering specialized
services for different target audiences. For this purpose, PEMRA has issued 55 FM radio broadcast licenses till
10th, Jan, 2005.
Now its a new industry where radio stations are earning more than 10 Million a month and growing rapidly
and have a wide scope of profit for the new entrants.

MHRA & CO. SARGODHA

Market Analysis

We expect to compete as a freelance FM radio station in the broadcasting industry.
We will look at what other stations are doing. We have collected over 100 radio program guides from around
the country and we have been amazed by some of the innovative programs that community broadcasters
come up with.
We will do our own surveys and we have already attended three public meetings.
Volunteers have been into local shopping malls with a simple survey form. We have been at local sporting
events and Capital News ran a free questionnaire. Our station's programming is therefore based on what our
community wants to hear.
Companies in the industry are involved in the creation and delivery of various types of programming. Much of
that programming is recorded and can be heard repeatedly by both new audiences and those that are familiar
with it. Within this local market, FM Saein will initially focus on supplying quality Music to the community
Our goal is to be on the top of the order radio Station in the Sargodha.

Target Markets
We must balance our programming to attract advertisers. Our target market is the people of Sargodha city
including Shahpur Sadar - Khewra -Shahpur City - Pind Dadan Khan - Khushab - Jala - Makhdoom - Joharabad
Chaks - Sillawali - Mid Ranjha - Sahiwal - Khushab - Mianwalli Road - Bhalwal - Jhang Road - Lalian - Faisalabad
Road - Chanab Nagar (Rabwa) - Lahore Road - Chiniot - Wegowal - Kot Moman - Soonskaser - Bhagianwala -
Noshera - Pandi Bhatian - Quaidabad - Hafizabad - Farooqa - Shaheenabad - Jhawarian - Dhrema - Khalar Khar
- Bhera - Malakwal * - Nehang - Bakhar - Salam M2 and we must concentrate on appealing to them. By doing
this we should attract further funding and advertising.

Competitors Analysis

Threat of New Entrants:
The threat of new entrants in this industry is low due to couple of barriers to entry of which one is the
high Capital requirements to start up the business and set up the facilities and after setting up the facility its
difficult to create market differentiation and building a brand image in the mind of the Listeners.

MHRA & CO. SARGODHA

Competitive Rivalry within an Industry:
There are three direct competitors that a new entrants need to tackle in order to survive in Sargodha
market.
1. FM V.O.V
2. FM SUNRISE PAKISTAN
3. FM AWAZ
Bargaining Power of Buyer and Suppliers:
Both bargaining powers of buyer and supplier is increasing day by day in this industry due to rapid
advancements in the technology and High growth rate of the industry provided both the buyer and supplier
with much more options available which increased their bargaining power significantly which is decreasing the
profit margin So it is of extreme importance to bring innovations and finding new ways in order to survive and
make a differentiation for themselves.
Threat of Substitute Product:
Threat of new substitute is also increased remarkably as the there are a number of T.V Channels now
available along with Internet and wireless internet provided customers with a lot of options with a no. of
online Radio Channels available to them just a click away.
Marketing Plan
We plan to market our services through diverse channels including print advertising, and television.
These channels are most appropriate initially because we are seeking to gain recognition in the
industry. Marketing of our station is important! The marketplace is tight. We have to catch the
attention of your audience, and get them to consider listening. We must
Provide creative, eye-catching & informative mailings
Have a presence at local events
Advertise in local publications
Strategic Relationships
The company plans to form strategic alliances with clients who will benefit from broadcasting to the local
community. We will not just with advertisers, but will seek to do pieces on what is happening in Sargodha City,
allowing citizens of all ages to debate on air the issues and concerns that affect our city.
We are also developing strategic alliances agreements with radio production companies and broadcast their
work on our station.
Sales and Marketing Channels
In marketing our products and services, we will rely on a combination of the following channels:
Direct approach
Yellow pages
Website
Television
Mail order
Word of mouth
Trade shows

The message associated with our station is national quality in a local station. Our promotional plan is diverse
and will include a range of marketing communications.

MHRA & CO. SARGODHA

Product
We will provide Quality Music to the Listeners in the Sargodha and its surroundings
Price
Advertisers are expected to use our services based on traditional factors:
Price
Performance
Flexibility
Expertise

We plan to set our advertising rates based on market value. Our actual price will be based on the
length of the campaign and the timing of the advertising. As a new station we will need to quickly identify
listeners habits and approach potential advertisers accordingly.
Place
We are going to establish our broadcasting station at 49-tail Sargodha which intents to cover the a
range of 50km as explained in target markets section
Promotion
We plan to market our services through diverse channels including print advertising, and local cable
television and through internet. These channels are most appropriate initially because we are seeking
to gain recognition in the industry.
Organization Structure

Head of Station
Haroon Awan
Program Section
1-Senior Producer
> Compares
Administration
Branch
1-Accounts
2-Marketing
3-Admin.
News Section
1-News Editor
>Announcers
Engnieering
Section
1-Electrical
2-Mechenical
3-Software
Station Director
Javid Irshad

MHRA & CO. SARGODHA

Head of Station:
Head of Station is responsible for the day-to-day running of Radio stations - leading the management team to
ensure they meet the key objectives of the station in terms of output, audience, or revenue
Essential Knowledge & Skills
Radio Head of Station need the following:
ability to generate original ideas, and to think creatively about how to communicate them
excellent communication and presentation skills
knowledge of the Radio market, different station and program styles, and audience demographics
business and finance skills
sound editorial judgments
confidence and decisiveness
the capacity to work effectively under pressure, react quickly, and meet tight deadlines
determination, diplomacy and excellent interpersonal skills
a facility for managing creative teams, and encouraging acceptable creative risk taking
ability to coach, and to develop talent in others
ability to give and receive (accept?) feedback, and manage performance
ability to deal effectively with team members of differing temperaments and morale
ability to encourage frank and constructive reviews of output
self-motivation and adaptability
a thorough knowledge of the law, ethics and industry regulation as they affect Radio production
knowledge of when it is necessary, and how to acquire, the relevant clearances and licenses, including
copyright and music clearances
knowledge of the requirements of the relevant Health and Safety legislation and procedures and a high
level of IT skills - particularly good word-processing and data handling skills
Station Director:
The radio station manager has the responsibility for the day-to-day operation of the station including
managing the various departments, scheduling on and off air staff, dealing with promotions and other
advertising issues as well as ensuring that the station follows are regulations and guidelines. The station
manager is also the liaison between the station owners and the employees and works to make sure that all
employees are following the goals of the owners with regards to the type of station and level of
professionalism.
The station manager usually hires and trains all employees or oversees the training by department managers
in large stations.
Common work activities include:
Monitoring and evaluating the quality of the station and meeting all requirements and regulations with
regards to programming.
Motivating and managing sales staff to meet all sales quotas or budget requirements for income.
Handling all complaints, questions, or request for information about the station.
Hiring and training of new employees, interns and other personnel at the radio station.
Networking with other businesses, organizations and agencies to prompt the radio station and increase
the market for advertising.
Developing budget plans, employee schedules and overseeing the daily operation of the station

Station Director needs the following:
excellent communication and presentation skills

MHRA & CO. SARGODHA

sound editorial judgment
business and finance skills
the capacity to work effectively under pressure, react quickly, and meet tight deadlines
determination, diplomacy, and excellent interpersonal skills
ability to coach, and to develop talent in others
ability to give and accept feedback, and manage performance
ability to encourage frank and constructive reviews of output
knowledge of the requirements of the relevant Health and Safety legislation and procedures
A high level of IT skills - particularly good word-processing and data handling skill.
Producer:
Radio Producers work in both speech-based and music Radio. Although they play a key role in creating what is
heard by listeners, they are not usually heard on air themselves.
They are responsible for creating and coordinating the content of Radio programs, and may also have
responsibility for the content of related websites or other mobile platforms. As well as managing the creative
process they are often closely involved with the business and technical aspects of programs.
Radio Producers need the following:
excellent writing and story-telling skills, which they can adapt for different audiences and platforms
when necessary, an understanding of how to use their voice to communicate effectively with listeners
the confidence and tenacity to pursue information, overcome obstacles, and pitch ideas to senior
colleagues
ability to work independently but also as part of a team
ability to work effectively under pressure, react quickly, and meet tight deadlines
empathy and patience, the ability to build rapport and draw information from people
ability to coach and develop talent in others
a comprehensive knowledge of the subjects relevant to the Radio genre in which they wish to work
a high level of IT skills - particularly good word-processing and data handling skills
ability to learn how to use a variety of recording equipment and to operate different radio studios
Ability to conduct effective internet research, use relevant computer software for audio editing, and,
when necessary, to manipulate visual images or edit video, and upload all such material for use on
websites.
Radio Presenter
Radio Presenters are the voice of a station or program, whether they work in speech-based or music Radio.
They are responsible for creating the tone and style of Radio output and establishing a relationship with

MHRA & CO. SARGODHA

listeners. They may also be required to carry out a range of other production tasks, as well as deliver content
for related websites or other mobile platforms
Radio Presenters need the following:
excellent presentation and performance skills
an understanding of how to use the voice effectively for radio
ability to build credibility and rapport by communicating knowledgably and engagingly with audiences
determination and tenacity
excellent interpersonal skills and the ability to draw information from people
a comprehensive knowledge of subjects relevant to the Radio genre in which they wish to work
knowledge of the law, ethics and industry regulation as they affect Radio production
ability to learn how to use a variety of recording equipment and to operate different radio studios
ability to present while operating studio controls and coordinating a range of simultaneous technical
activities
ability to conduct effective internet research, use relevant computer software for audio editing, and,
when necessary, to manipulate visual images or edit video, and upload all such material for use on
websites
Broad Cast Engineer:
A broadcast engineer operates, maintains, updates and repairs hardware and systems used across television,
radio, podcasts and other channels, ensuring that programs are broadcast on time to the highest possible level
of quality.
Broadcast engineers work in a team with others including producers, studio managers, presenters, and other
technical staff. As well as being spread across ever-expanding methods of distribution, the work of broadcast
engineers takes place in a range of locations and work situations. In addition to studio or set work, there may
be outside broadcasts, when sound and images are relayed live back to a studio or straight to the network.
Broad Cast Engineers need the following:
maintaining specialist equipment for video production, broadcast and satellite transmission, and
interactive media;
setting up and monitoring audiovisual links between units in different locations;
installing and testing new facilities and equipment;
setting up and operating editing facilities in post-production suites;
analyzing and rectifying technical faults on equipment and systems;
minimizing loss of service at times of equipment failure by rapidly identifying and implementing
alternative methods of service provision;
keeping abreast of constant changes in technology by investigating new systems, techniques and
equipment - especially new internet technologies;
setting up and operating equipment and transmission links during outside broadcasts;
designing and installing custom audiovisual circuits;
repairing hardware, software and other broadcast technology systems;
designing and manufacturing new circuits, hardware and systems;

MHRA & CO. SARGODHA

developing and using awareness of best practice in health and safety for the workplace;
interpreting and implementing instructions and requests from producers, directors and other
colleagues;
communicating effectively with members of one's own and other teams and project members;
Keeping up to date with the industry by building and maintaining a network of contacts.
Radio News Editor:
The Radio News Editor's role is to oversee and direct the work of a news team supplying news content for one
or more different outlets, News Editors manage program budgets and optimize the use of available technical
resources to realize story or program ideas. They usually have managerial responsibility for their team,
motivating them, developing their skills and reviewing performance. They need to ensure that there is
effective communication.
News Editors need the following:
a strong sense of what makes a good news story
sound editorial judgment
ability to generate original ideas and to think creatively about how to communicate them
excellent writing and story-telling skills which they can adapt for different audiences and platforms
in-depth knowledge of the Radio market, different station and program styles and audience
demographics
the capacity to work effectively under pressure, react quickly and meet tight deadlines
ability to give and receive feedback and manage performance
ability to encourage frank and constructive reviews of news or program output
the capacity to maintain objectivity in order to be fair and balanced in the treatment of stories
a thorough knowledge of the law, ethics and industry regulation, and broad experience of their
application in radio and the practice of journalism
knowledge of when it is necessary and how to acquire the relevant clearances and licenses, including
a wide ranging interest in news and current affairs and particularly in those issues relevant to the
communities and audiences served by their particular stations or programs
the ability to learn how to use a variety of recording equipment and to operate different radio studios
the ability to conduct effective internet research, use relevant computer software for audio editing,
and, when necessary, to manipulate visual images or edit video, and upload all such material for use on
websites
ability to manage program budgets and resources
Management:
Executives may be involved in a wide range of activities in order to market the services and products of a
radio station, or group of stations, to existing and potential listeners and clients. The aim is to increase brand
awareness and loyalty, grow audiences, and attract advertisers.
Executives need the following:
ability to think creatively and generate original ideas
excellent writing skills which they can adapt for different audiences and platforms
knowledge of marketing and communications, and how to build and manage brands

MHRA & CO. SARGODHA

familiarity with the increasing range of communications platforms, and how they can be used in
marketing campaigns
the confidence and tenacity to pursue information, overcome obstacles, and pitch ideas to senior
colleagues
research skills, and the ability to interpret data and make the information accessible for non-specialist
colleagues
attention to detail
determination, diplomacy, and excellent interpersonal skills
a thorough knowledge of the law, ethics and industry regulations as they affect radio marketing
knowledge of when it is necessary, and how to acquire the relevant clearances and licenses, including

Operations Plans

Top-Notch Production Values:
Just because we all call it public radio, it isn't automatic access radio. Today's marketplace is fiercely competitive.
Listeners have choices. Most listeners in Sargodha City can access 2,000 hours of radio every day.
It is vital that we spend a fair amount of time critiquing production values. Any production has to be clean from
top to bottom: top-notch radio-friendly, engaging voices; solid transitions, forward promotion, back promotion,
appropriate and wonderful music, clean mikeing, etc. A show must also be produced with clear cognizance of a
station's need to identify/brand itself, and be an important, highly visible player in its own community.
Knowledge:
In order to insure that the programs have an audience we must first have knowledge. Long before our show ideas
ever become a demo; we will want to collect this knowledge to help us determine the marketability of the
program and the roadblocks. Once the demo is a reality, our knowledge of the marketplace will then guides us in
positioning the program at an appropriate time and focuses us on any promotional strategies and materials.
A Branding Position:
We need to make the story of our radio station extraordinary.
We will set out a clear brand, an editorial picture, and a promotional story that sets our station apart from anything
else out there.
Accomplishable Goals and a Clear Strategy:
We will ask ourselves a lot of questions to ensure that we have a clear strategy with accomplishable goals.
One of the first questions we will ask is what we hope to accomplish by broadcasting each show. The answers do
vary considerably and ultimately dictate the strategy for marketing both the show and the station as a whole.

MHRA & CO. SARGODHA

In today's market, niche programs can gain a lot of visibility on the Internet for example. An on-line presence will
be part of our strategy. We will need to ensure that we have strategic partners involved with our programs who
can help us attain visibility
Gaining and Maintaining an Audience
We need to catch the attention of our audience immediately, and help them promote our station by word-of-
mouth.
Codes of Practice
We will learn the Codes of Practice. We must memorize them and comprehend them. Understanding and adhering to
the Codes of Practice should play an integral role in every community broadcasting station's programming procedure.
We will
We will have policies and procedures in place, relating to the licensees community of interest, ensuring
access and equity and encourage participation by those not adequately served by other media.
Be controlled and operated by an autonomous body which is representative of the licensees
community of interest.
Have organizational mechanisms to provide for active participation by the licensees community in its
management, development and operations.
Incorporate policies that apply to all station activities, which oppose and attempt to break down
prejudice on the basis of ethnicity, race, chosen language, gender, sexual preference, religion, age,
physical or mental ability, occupation, cultural belief or political affiliation.

Our station will not
Broadcast material that may incite, encourage or present for their own sake violence or brutality
Simulate news or events in such a way as to mislead or alarm listeners
Present as desirable the misuse of drugs including alcohol, narcotics and tobacco.

We will
Avoid censorship wherever possible, however, consideration shall be given to the audience; the
context; the degree of explicitness; the propensity to alarm, distress or shock; and the social
importance of the event.
Not broadcast material which may stereotype, incite, vilify, or perpetuate hatred against, or attempt to
demean any person or group on the basis of ethnicity, nationality, race, chosen language, gender,
sexual preference, religion, age, physical or mental ability, occupation, cultural belief or political
affiliation. The requirement is not intended to prevent the broadcast of material which is factual, or
the expression of genuinely held opinion in a news or current affairs program, or in the legitimate
context of a humorous, satirical or dramatic work.
Establish programming practices that protect children from harmful program material.
Respect each persons legitimate right to protection from unjustified use of material, which is obtained
without an individuals consent, or other unwarranted and intrusive invasions of privacy
Not broadcast the words of an identifiable person unless that person has been informed in advance
that the words may be transmitted or in the case of words which have been recorded without the
knowledge of the person, the person has subsequently, but prior to the transmission, indicated
consent to the transmission of the words or the manner of the recording has made it manifestly clear
that the material may be

We will handle complaints and other comments from members of the public by ensuring
Compliance with the Codes of Practice or a condition of the license;
A minimum of 50 on-air announcements every year containing information about Community
Broadcasting Codes of Practice and how audiences may obtain them.
Every reasonable effort to resolve complaints, except where a complaint is clearly frivolous, vexatious
or not made in good faith.

MHRA & CO. SARGODHA

Complaints will be received by a responsible person in normal office hours;
Complaints will be conscientiously considered, investigated if necessary and responded to as soon as
practicable; and complaints will be responded to in writing within 60 days of receipt
A responsible officer of the licensee will maintain a record of complaints in a permanent form, for a
period of at least 2 years.

Service Design and Development
FM Saein is going to be 24 hour nonstop music channel and will offer numerous new and emerging local
broadcasters the chance to express their creativity and assist them move up the career ladder by offering
them roles that wouldn't have been offered by other stations. We are about giving new, fresh talent a chance
to express their skills and to give them a platform to showcase their work
FM Saein Radio Station is an independent radio station project that will provide local broadcasters the
opportunity to create innovative and ground breaking projects that challenge, provoke and inspire.
FM Saein will establish a strong talent base of broadcasters that are currently establishing themselves in radio.
We also have great contacts with a large number of advisors who have been working in the industry for many
years from companies. We also have two very famous Icons of FM Entertainment that will provide us with an
edge over the Competitors.
We will have a setup that ensures that they can focus on their core competencies and the things that they do
best. We are in business to provide a service that is second to none. As such, we guarantee that our listeners
will receive first class service and a final product that is well worth the money invested.
At our Radio Station, we take pride in our work and it is our aim to be the best at what we do. We will conduct
our business in a professional manner from our methods and character to our standards and ethics.

Gaining and Maintaining an Audience
We need to catch the attention of our audience immediately, and help them promote our station by
word-of-mouth.
Stations are becoming more formats focused in an effort to increase core listenership. Although this
trend toward more focused formats may limit carriage for particular programs, such as specials and
limited series, there is an opportunity to target messages to program decision-makers more effectively.
Public Radio News Listeners are coveted. Many public radio program directors have been and continue
to be interested in attracting the younger news audience. Programs that can demonstrate appeal and
affinity to this group are of great interest. Social documentaries also carry a strong appeal to baby
boomers, the main public radio audience.

MHRA & CO. SARGODHA

We will produce high quality programs and our programs must be wonderfully produced. We can have
the best idea for a program, but in this day and age with so many listening choices, if the quality is not
good we will lose your audience.
Besides being a good idea, it needs to be radio phonic. Our station must have
Clean sound
Compelling hosts
Inviting, intelligent radio voices
We must draw audiences in within the first minute
Excellent editing
Well-written scripts
Good use of transitional and background music
Our content must
Have a unique perspective
A good story
Push the envelope
Have niche programming
We must meet station-scheduling needs. Each program must be clear in its
Format
Length
Music/talk ratio
We must encourage our listeners to stay tuned. No matter how many types and styles of programs we
broadcast, we must schedule them carefully. A science program could follow a show about computers, then
environmental issues, then mellow jazz.
Financial Projections
To launch FM Saein it requires approximately 200 million rupees initial investment of which all 200 millions are
going to be contributed by the partners of the firm directly and the firm is obtained a line a credit of 50
millions for just in case to meet any need and fluctuation these Start-up expenses will cover

Building and Station setup
Fictitious Name Filing/Trademark search
Business Licenses
Initial Brand and Graphic design
Initial Web design
Initial Letterhead, envelopes, labels/biz cards
Theme music: composition/recording
Field recorders

MHRA & CO. SARGODHA

Microphones
Scanner
CD-RW Burner
Hard Drive
Mic Stand, clip universal
Laptops
Flashcards
Digital Still Camera
Speakers
Computer screen
Pistol Grip for microphones
These startup expenses are allocated under:
Items Amount (RS.)
Legal Expenses (Registering and Licensing) 10,00,000/-
Machinery and Equipment 80,00,000/-
Land and Building 70,00,000/-
Cash in Hand 20,00,000/-
Insurance 25,000/-
Other Misc. expenses 5,00,000/-
Reserves 4,75000/-
Marketing Expense 10,00,000

Total Startup cash needed 2,00,000,000/-

Funding by the partners for this Investment is allocated as under:
Items Amount (RS.)
Mr.Haroons Capital 40,00,000/-
Mr.Javids Capital 40,00,000/-
Mr.Answers Capital 40,00,000/-
Mr.Wasims Capital 40,00,000/-
Mr.Habibs Capital 40,00,000/-

Total Startup cash Provided 2,00,000,000/-

Assumptions Sheet:
The financial forecast for the business is depends on some important assumptions that need to be disclosed
forecasted period other wise it is going to be adjusted accordingly and results may differ and also it is assumed
that the burden will be begin softly and grow in accordance with the growth in the business and its revenues.
Other key assumptions are listed below:
o Assuming continued Steady economy in Pakistan.
o Assuming continued Growth in the FM industry
o It is assumed that it will require initial cost of 200 millions for the Radio station to be ready for its
Grand opening
o All the estimations of revenue and expenses are done by keeping in mind the current market
conditions
Revenue Estimations:
There are two main sources of revenues for a FM radio Station from its daily operations and services
Advertisements (Rs.30 for every 30 sec.)
SMS revenues (Rs.1.50 for every SMS)

MHRA & CO. SARGODHA

Sources Revenue/Unit Total revenue Per Year
Advertisements 30 36,00,000/-
SMS 1.5 4,00,000/-

Expense Estimations:
The expenses during year comprise of the following Components

Source Per Month Per Year
Station Director 60,000 720,000
Producers 20,000 480,000
Engineer 25,000 3,00,000
Anchors/Hosts/Announcers
(150-200 Per Hour)
1,00,000 12,00,000
Repair and Development 5,000 1,00,000
Random(Guests, Refreshments) 10,000 1,20,000
Utility Bills 15,000 1,80,000
Marketing 1,00,000
Total Cost
2,35,000/- 32,00,000/-

0
1
2
3
4
5
6
7
Advertisements SMS
Revenue
Revenue
0
1
2
3
4
5
6
7
Station
Director
Producers Engineer Anchors Repair Random Utility Bills Marketing
Expense
Expense

MHRA & CO. SARGODHA

F.M Saeins Income Statement
Assets Year 1 Year 2 Year 3
Sales 40,00,000 50,00,000 55,00,000
(Cost) (31,00,000) (35,00,000) (40,00,000)
Gross Profit 9,00,000 15,00,000 20,00,000
Marketing (1,00,000) (1,50,000) (2,00,000)

Net Profit
8,00,000 13,50,000 18,00,000

*Expenses are expected to grow at 15%

Ratio Analysis
Ratios Year 1 Year 2 Year 3
Return on equity .4% .7% .95%
Profit Margin 20% 28% 34.5%
Return on Assets .53% .93% 1.27%

____________________________________
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Year 1 Year 2 Year 3
Sale
Cost
Profit

Business Plan For F.M Radio Station in Sargodha

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