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Business standard Business standard Document Transcript

  • STUDY ONMARKET DEVELOPMENT FORFINANCIAL NEWS PAPER AT BUSINESS STANDARD 1
  • A REPORT ON MARKET DEVELOPMENT AT BUSINESS STANDARD AHMEDABAD SUBMITTED TOAES Post Graduate Institute Of Business Management SUBMITTED BY Dhwani Worah Amit Raichuria Acknowledgement 2
  • This project is an amalgamation of team efforts. My heart felt thanks to all who havegiven time and insight into making this project possible.We are grateful to Dr. A.H. Kalro, Director, and AESPGIBM for giving us the opportunityto undertake summer training in the field of our interest.We are also thankful to the entire staff of BUSINESS STANDARD, Ahmedabad branchfor guiding us and giving us a patient listening every time we encountered problems.Mr. Mukund Shukla, Business Standard Circulation head, Gujarat has been a mentorand we thank him for his support. We also extend our sincere gratitude to Mr. KunalPanchal, Market Development Executive and our project head.Our special thanks to Mr. Rajendra Sharma and Ms. Jinal Parikh for guiding usthroughout the project.Last but definitely not the least; we thank our friends for their unconditional supportextended.Executive summary 3
  • Marketing is an all embracing function that links the business with customer needs andwants in order to get the right product to the right place at the right time. Moreover themarketer has to understand customer needs and offer products and services better thanthe competition.Working at business standard was a great learning opportunity. The duration for thesummer project was 18th May to 18th July. Business Standard is India’s one of thefastest growing newspapers having growth rate of 300% in past five years. During thecourse of the summer training various tasks were undertaken:MAY 18TH -19TH – ORIENTATION • Introduction with staff members • Analyzing and understanding BUSINESS STANDARD newspaper as a product and its content • Comparison with other business dailies like ET, BL, FE etc.MAY 20th – 28th – FIELDWORK • Market mapping and identifying potential target areas. • Conduct survey to find the brand awareness and market penetration of Business standard relative to competitors. • Market development through personal selling the annual subscription scheme of Business standard. A target of 20 subscriptions in a week was given which was achieved before the deadline.MAY 29TH – 31ST STRATEGY FORMATION • Involved in strategic planning implementation of a counter attack strategy to withstand the entry of new competitor FE in Gujarat. 4
  • JUNE 8TH - 17TH – FIELD WORK (BARODA MARKET) • Success at Ahmedabad market was motivating enough to undertake the same drive in Baroda market. Both the markets had entirely different features. • 200% target was achieved within one week.JUNE 18TH – JUNE 31ST • Institutional market developmentJULY 1ST – 8TH- VISIT TO ALL THE DEPARTMENTS • Visit to the printing pressJULY 10TH – 15TH - REPORT MAKINGWe feel glad to present this report which is a comprehensive effort to describe ourlearning experience. The project report can be summarized as follows:Market development strategies: MDS is a tool to increase the circulation ofnewspaper with various tactics like mass subscription, schemes, sponsored copies,promotions etc.Research Design: We collected data through scheduled questionnaire which weretransformed into information which was used by us to penetrate into the market copingup with competition and increasing our customer base.Findings: We found that management students have more potential to read businessnewspaper, further we found that awareness of Business Standard was 30.3% we alsofound that presently 41.18% were reading Business standard for mutual funds newsalso 63.3% were interested in schemes or offers.Suggestions: Business Standard should target management students to increase thecirculation. It should also target undergraduates, who are preparing for management 5
  • entrance exams, and they should also provide job appointment supplement and theyshould become media partner at various B-schools quizzes and seminars to createbrand noiseThe research work forming the part of the university syllabus has provided anopportunity for probing into the marketing strategies and to understand the policies ofBusiness Standard. We have tried our best to collect the information required for theorganization study and market development strategies.Contents 6
  • Acknowledgements iiiExecutive summary iv1. INTRODUCTION 1 1.1 History of the Print 3 1.2 Popularity of the Print Media in India 5 1.3 Challenges for the Print Industry 7 1.4 Changing trends in the Newspaper Industry 92. BUSINESS STANDARD 12 2.1 Stake holder- Financial 14 2.2 Product Profile 163. DEPARTMENTS 19 3.1 Market Development 22 3.2 Space Marketing 28 3.3 Scheduling 29 3.4 Editorial 31 3.5 Systems and Production 324. COMPETITION ANALYSIS 35 4.1 Other Financial Newspapers 37 4.2 Readership Survey Results 40 4.3 SWOT Analysis 47 4.4 Porter’s Five Forces Model 495. MARKET RESEARCH 54 5.1 Chi-Square Test 64 5.2 Findings and Recommendations 666. CONCLUSION 68 7
  • ANNEXURE 69NOMENCLATURE 72BIBLIOGRAPHY 73 A REPORT ON 8
  • MARKET DEVELOPMENT AT BUSINESS STANDARD AHMEDABAD SUBMITTED TO AES Post Graduate Institute Of Business Management SUBMITTED BY Dhwani Worah Amit RaichuriaCHAPTER 1 9
  • INTODUCTIONHISTORY OF THE PRINTPOPULRITY OF THE PRINT MEDIA IN INDIACHALLENGES FOR THE PRINT INDUSTRYCHANGING TRENDS IN NEWSPAPER INDUSTRYAUDIT BUREAU OF CIRCULATIONINTRODUCTIONMedia is an important and inseparable part of a democratic society. It is in fact calledthe fourth pillar of democracy. Before the advent of electronic media, print media playedan important role in disseminating information to people. Over the years, a wide varietyof media like the press, performing arts, television, radio and films have been used forcommunication. Among these, print media continues to play an important role. TheGovernment uses print media to secure wide coverage of messages through variousnewspapers and journals.A newspaper is a regularly published print product containing information vital to thefunction of the market it serves. Definitions become more important as traditional 10
  • newspaper companies move from single-product management (newspapers) to multi-product management - often under the companys brand, typically the title of thenewspaper.What newspaper companies are learning is that the value of what they produce is notthe ink on paper, but the content, depth, segmentation choices, credibility, andemotional attributes that are delivered in any distribution channel they choose.Over the years newspaper reading has become a daily early morning regime. What fordecades was a dull market place with limited number of newspapers is today a verydiversified offering.Print offerings have multiplied and cater to diverse needs like travel, sports, fashion etc.Newspapers these days not just provide news and entertainment but also cater to nicheaudience. Financial newspapers are such newspapers that target niche marketcomprising corporate, businessmen and investors.With the era of multi edition newspapers and therefore multi newspaper markets, hasgiven greater choice to readers and also resulted into a fierce fight for reader’sattention. But, the latest trend observed is that one reader is not necessarily habituatedto reading only a particular newspaper, therefore even a small difference in price couldsometimes bring about a change in the purchase decision.This has driven newspaper prices to a point where leading newspapers fetch virtually nocirculation revenue for their publishers. The little that is collected from the reader goesalmost entirely to the distributor or the hawker.The growth of newspapers have been highly affected by growth in computer andinternet connectivity, mobile telephony which enables real time access to news, viewsand entertainment anytime anywhere! 11
  • Recent changes in regulations permitting FDI in print and broadcasting media hasfurther heated up the media market. With the entry of the foreign players, the Indianprint media scene has changed tremendously. On the other hand the Indian print medianow operates overseas as well and thus, it is not confined to Indian audience only.The newspaper plays an important role in contributing to social good, playing a criticand the watchdog function, helping to foster debates on agendas for socialtransformation. The one that best fulfils these roles will gain the maximum eyeball’sshare.With the growing literacy and income, particularly among the young, our media today isbeing forced to respond to the demands of a new readership one which is discerningand demanding, impatient with the old content and style and not bound by old codes ofloyalty. This adds pressure on the newspaper companies to seek creative solutions andexplore new roles and meanings for it.HISTORY OF THE PRINTJames Augustus Hicky a rambunctious and irreverent Englishman gave India its firstnewspaper in January 1780. The weekly Bengal Gazette, also known as Hicky’sGazette, was a rag of sorts with gossip about English society in Bengal, the center ofthe British East India Company’s existence at that time. More than a year later in June1781 he was in jail for defamation. Undaunted, Hicky edited his paper from jail and hisaudacious column continued to appear. After a second prosecution in 1782, his presswas confiscated and his career as an editor came to an end.If that seems like an unpromising beginning for India’s publishing industry, it wasn’t.Here was an Englishman with the impudence to question the governor general andchief justices that his own country had appointed. Hicky symbolizes in many ways thatessential element of a vibrant print industry – freedom. Combine that with the othermark- that of government censorship and control. Across the developed and 12
  • developing world, the history of press is littered with examples of governments trying tobrowbeat, scare, cajole and bludgeon the freedom that the Hick’s of this world want towrite what they think – for the people who want to read it.By the time the first newspaper was launched in India, printing was a booming industryelsewhere in the world. After Hicky’s Gazette came a succession of newspapers andperiodicals, many out of Bengal and many created by Englishmen. There was the IndiaGazette, another weekly from B. Messink Welby and Peter Reed in 1780, and theCalcutta Journal, a bi-weekly from James Silk Buckingham in 1818. The first Indian-owned, Indian language paper came, rather appropriately from noted social reformerRaja Rammohan Roy in 1820. Sambad Kaumudi was a weekly Bengali newspaper.Between 1780 and 1947 until India’s independence, more than 120 newspapers andperiodicals were launched in almost every Indian language. Some were owned byEnglishmen, others by Indians and still others by missionaries. Almost all of them beganwith a cause – either to speak out against British imperialism or to spread the messageof Christianity among the natives. None of them, it seems, had the intention of makingmoney.That is still the main reason why the newspaper industry in India remains small. It nevergot out of the ‘I am here to fight a battle not to make money’ mindset. At the timeindependence that was nothing wrong with the notion. The trouble was that thingscontinued that way for decades later. At that time, India was a nation struggling todiscover its identity and trying to get out of British clutches. The need of the hour was tospread the message of independence. So newspapers sprouted up all over the place –and equally quickly they shut down. In fact many of the editors of defunct newspapersusually manage to get the funds to start another one.So, it appears that the aim for many of these newspaper launches was never ever tomake money. It was always a cause, revolt, a message, and a tool to counterpropaganda or spread some of their own. Many of the top publications today are theones are the one that have lived through the freedom struggle. The Times of India(TOI), Mumbai Samachar, Malayala Manorama, Anand Bazar Patrika (ABP) and the 13
  • Hindu, among others are all veterans of the Indian Freedom Struggle. Ironically enough,across the length and breadth of a largely illiterate country, there cropped up vehicles,which would play a huge role in the bringing down of the British Empire. Most of thesewere financed by benevolent or patriotic businessmen or through donations. Even afterindependence most had a cause, to see to the birth of a nation and its growth. Wealthybusinessmen continued to keep running these papers, most of them at a loss, becauseof the influence and the power they brought them. They could afford to do it becausemost had other successful businesses, like the Goenkas who owned Indian Express,also own real estate.POPULRITY OF THE PRINT MEDIA IN INDIA“If you read a lot, you are considered well-read; but if you watch a lot of TV, you are notconsidered well-viewed!” cribbed Lily Tomlin, the American actress and comedian.And therein lies the truth behind why, despite all catastrophic predictions, print hasmanaged to survive the onslaught of other media and grow from strength to strength, inIndia at least.The desire to be “well-read”, especially in India, has its foundation in our history, wherea person’s worth was determined by the extent of his or her knowledge. As long as ourhistory continues to subliminally influence our habits, print will never hear the death knellin India. In fact, there exists no better medium to gain knowledge than print currently.Today India is a buoyant print market, with 216 million adult readers, a number thatwould make this reader universe the fifth largest country in the world.There has been a lot of good news for the Indian print industry in recent years. Forexample, in the last five years with a 19-per cent growth rate, readership has grownfaster than the country’s adult population, which grew at 15 per cent.With projected revenues of Rs 6,800 crore in 2006, print is India’s leading medium,constituting 49 per cent of the Rs14,000-crore advertising market. It is also the fastestgrowing medium for advertising, with an estimated 20-per cent gain in 2006. Television,for example, is expected to grow only at 15 per cent. 14
  • 15
  • Also, sensationalism in terms of breaking unique and controversial stories has helpedprint to regain topicality in news reporting to some extent.More interestingly, the profile of the reader is also changing to address the advertiser’sneed today. About 71 per cent of new readers today are coming from rural India, whichis where most advertisers are concentrating their efforts to increase sales. At a 30 percent growth rate, the advertiser’s key audience, the female readership, is growing fasterthan the male readership, which is growing at the rate of 15 per cent.CHALLENGES FOR THE PRINT INDUSTRYThe first challenge that the print industry has to address is to win over the future readers— the youth of today — in a big way. A survey done amongst today’s youth revealedthat only 37 per cent of them felt it important to read a newspaper every day and nearlyhalf of them believed that newspapers do not play an important role in their life.Publication owners need to figure out tactics on how to “catch them young”.The second challenge lies in defining the role of newspapers, given that the latest newsis available on numerous television channels. “Newspapers cannot be defined by thesecond word — paper. They’ve got to be defined by the first word — news”, it holds truewith the advent of the news channels and the internet.The third challenge lies in tackling the lack of time amongst today’s readers. Time spentreading has hardly grown in the last five years. Despite this, we have numerouspublications entering the market and newspapers are flooding the readers with multiplesupplements on the same day.The fourth and final challenge lies in making the ad space more efficient and effectivefor the advertisers. Compared with television, print still continues to be a cost inefficientmedium for most advertisers. Also, the print medium is not offering any uniqueinnovations that could generate more bangs for the buck for advertisers 16
  • The challenges in front of the print industry are best summed by the words ‘Whateverbusiness you are in, you cannot run in place for someone else will pass you by. It doesnot matter how many games you have won’.The print industry has managed to constantly run out of place to get to where it is todayamidst tough competition. Its future lies in finding an answer to “What is the new paththey are going to run in now?”Numbers crunchReach: 200 million readersNewspaper readership: 176 millionMagazine readership: 69 millionSize of print media industry: Estimated at Rs109 billion in 2005; projected to grow to Rs195 billion by 2010Size of newspaper industry: Estimated at Rs96 billion in 2005; projected to grow to Rs170 billion by 2010Size of the magazine industry: Estimated at Rs13 billion in 2005, projected to grow to Rs25 billion by 2010Source: FICCI-PwC report on the Indian entertainment and media industryCHANGING TRENDS IN NEWSPAPER INDUSTRYNewspapers have generally been closely held, many a time family owned enterprises.Significant changes of late are taking place in Newspaper Industry. Some newspapershave gone public while some, which were primarily in the publishing business, havediversified in allied and other fields. Some cross-financial investments between differentnewspaper groups have widened the potential areas for cooperation and are likely tostrengthen the Industry. 17
  • Foreign Direct Investment (FDI) in Indian general newspapers is also taking place.Issue of IPO’s is helping closely held newspaper organizations to become widely held.Additional resources mobilized through FDI/IPO’s are funding expansion andmodernization plans of such newspapers.Advertising is a big industry and share of print media in the total advertisement marketis very significant. In the current economic scenario, as a constantly changing reflectionof public and private realms at various levels and intersects of our lives and times thenewspapers have a critical role to play.Readers turn to their preferred newspaper for various reasons. Therefore there is noreason to doubt that the newspapers will continue to thrive, even in the digital world.AUDIT BUREAU OF CIRCULATIONAudit Bureau of Circulations (ABC) is one of the several organizations of the samename operating in different parts of the world.The ABC founded in 1948 is a not for profit, voluntary organization consisting ofPublishers, Advertisers and Advertising Agencies. It has done pioneering work indeveloping audit procedures to verify the circulation data published by thosenewspapers and periodicals, which have earned the right to display its emblem.ABC as it is called and understood by all, is a founder member of the International 18
  • Federation of Audit Bureau of Circulations. The main function of ABC is to evolve, laydown a standard and uniform procedure by which a member publisher shall compute itsnet paid sales. The circulation figure so arrived at is checked and certified by a firm ofChartered Accountants which are approved by the Bureau. The Bureau issues ABCcertificates every six months to those publishers whose circulation figures confirm to therules and regulations as set out by the Bureau.From a modest beginning it has grown to remarkable proportions. ABCs membershiptoday includes 411 Publishers of national and regional importance, 151 AdvertisingAgencies, 51 Advertisers & 20 New Agencies and Associations connected with printmedia and advertising. It covers most of the major towns in India.Facts and figures, which are checked and certified by an independent body, is a veryimportant tool in the hands of the advertising business community. The details of ABCcertified circulation figures are available online to all Members of the Bureau(http://www.auditbureau.org) at no extra cost.An Advertiser would like to know the facts and figures before investing his money inadvertising. An Advertiser ought to know how many people buy a publication and inwhich area. The ABC gives all these vital facts every six months. The ABC figures arenot the outcome of opinions, claims or guesswork, but they are the result of rigid, in-depth and impartial audits of paid circulations of member publications by independentand leading firms of Chartered Accountants working in accordance with the rules /procedures prescribed by the Bureau.Few important issues to take care as per ABC certification:Trade terms to agents on subscription copies should not exceed • In case of dailies-40% of the subscription price • In case of weeklies-45% of the subscription price 19
  • Publishers have to maintain the full record of subscribers with their address, name andsignature.There are two types of panels: 1. Auditors panel 2. Publishers panel • Auditors will audit the circulation twice a year ending June & December • The auditors to cover the outstanding dues provide Two months credit period to publishers. • If any distributors have more than 15000 subscriptions copies then he also comes under the audit for ABC certification.Thus ABC plays a major role to stop the manipulation activity in the publication industry.CHAPTER 2BUSINESS STANDARDSTAKE HOLDER - FINANCIAL TIMES OF LONDONPRODUCT PROFILE 20
  • BUSINESS STANDARD Business Standard is the countrys most respected business daily, being the first choice of serious business readers. Business Standard Ltd. (BSL) was incorporated on 16th Dec. 1970 under the name of “Desh Publications (p) Ltd.” This was changed to “Business Standard (p)Ltd.” on 7th Sept. 1995 and subsequently converted into “Business Standard Ltd” on 23rdNov. 1995 as a limited company. The Head office is in Delhi.Several reputed investors own the company. Kotak Mahindra Finance Limited has astake of 47.30% and Great Eastern Shipping Company holds 31.87% while others hold20.76%. The Financial Times of London has taken an equity stake of 13.85% in BSL.It is published in colour from 7 centers in India - Mumbai, New Delhi, Kolkata,Bangalore, Chennai, Ahmedabad and Hyderabad. It is also printed at Kochi, Pune andChandigarh. 21
  • The newspaper believes in free, fair and independent journalism and strives to inculcatethese values in its editorial staff. The journalism practiced by Business Standard laysequal stress on quality, credibility and accuracy.Business Standard has the countrys best economic journalists and columnists workingfor it. It is edited by T.N.Ninan, perhaps India’s best-known business journalist, who hadearlier undertaken a complete and highly successful revamp of The Economic Timesand was responsible for its phenomenal growth.Apart from a business newspaper, BSL publishes several periodicals, including BSMotoring, Indian Management, and Routes: the Gateway Magazine (a lifestylemagazine).The company sees content creation, content processing and content management asits core competence. It offers complete outsourcing solutions for organizations whichwant to bring out in-house or private publications but lack the people and/or resourcesto do it cost-effectively.VISION“To stand at a respected position in the marathon and also keep up with the pace of thechanging needs of its valued readers.”The agenda is to win more and more readers to their cause and also to deliver 100% ofitself.MISSION 22
  • To expand the marked share of BS by creating a new market and by taking bites fromcompetitor’s market share.CORE COMPETENCEContent creation, content processing & content managementOBJECTIVETo provide comprehensive details of market development “When You Are Sure”STAKE HOLDER – FINANACIAL TIMES GROUPHistoryThe Financial Times newspaper launched in 1888, declaring itself: The friend of thehonest financier, the bona fide investor, the respectable broker, the genuine director,the legitimate speculator.The newspaper is now printed in 23 cities, with four editions: for the UK, ContinentalEurope, US and Asia-Pacific. The FT has a daily circulation of over 425,000 and areadership of approximately 1.4 million, across 110 countries. In print and online, the FThas more paying readers today than at any time in its history. FT.com has 3.2 millionunique monthly users and 84,000 paying subscribers.A growing global audienceThe aim of the FT is to deliver the most accurate, incisive and timely businessjournalism to an increasingly mobile audience of global business leaders, and to ensurethat our advertisers communicate effectively with this elite group. It presents a holistic 23
  • analysis of global business and financial news. The FTs value lies in its ability to makeconnections and make the information relevant. It is this ability to collate, analyze andcomment on the issues which sets it apart.In recent years, FT has significantly expanded its presence on the global stage. In 2003,it launched an Asia edition in print and online, establishing a news editing operation inHong Kong. This now forms part of the FTs global editing network, alongside New Yorkand London. The Asia-Pacific edition has continued to grow and is now also printed inSydney, making the FT the first international daily to print in Australia. The FTs Chineselanguage website, www.FTChinese.com, has also built a formidable reputation amongstChinas fast-rising business elite.The FT is committed to maintaining its position as the definitive business informationbrand for todays international business audience.FT BusinessFT Business produces specialist information on the retail, personal and institutionalfinance industries. It publishes the UKs premier personal finance magazine, InvestorsChronicle, and The Banker, Money Management and Financial Adviser for professionaladvisers.The FT Group also has a number of other associates and joint ventures, including: • A 50% interest in The Economist Group, which publishes the worlds leading weekly business and current affairs journal; • FTSE International, a joint venture with the London Stock Exchange; • Vedomosti, Russias leading business newspaper and a partnership venture with Dow Jones and Independent Media; • A 50% interest in BDFM, publishers of South Africas leading financial newspaper and magazine; 24
  • • A 13.85% stake in the Business Standard, one of Indias leading financial newspapers.PRODUCT PROFILE Indian M anage- The ment W orld of Newspaper b-school The B illionaire Club M otoring Business How to Standard Spend it B S 1000 B anking The Annual Strategist Gateway FundBusiness Standard is M anager India’s emerging businessdailies. It is ranked second in the daily businessnewspaper category. It is published in 7 editions from India’s 7 hubs for industry trade,finance and politics.The newspaper focuses on content management and comprises of financial andbusiness news, stocks and commodities, international business, banking etc.Newspaper 25
  • Major Sections in Business Standard newspaper are:IST section - Business Standard contains General news, The Economy, Companies,International Business, Politics & public affairs, Business Life, Issues & Insights, opinionIInd section - Money & Markets which comprises of General market news,Commodities, Money and currencies, Stocks, BS 200, Stocks/Mutual fund values,MarketsIIIrd Section - accent West* which features General news about the western regioncovering Gujarat, Maharashtra and Other regions.*Accent West was an extra supplement in business standard newspaper, in a tabloidform, has been included into the main supplement recently.The various supplements of business standard facilitate quality news coverage, articlesand analysis.The Smart Investor: It’s a tabloid which is published every Mondays and is a totalinvestment guide for retail investors. Focus: Old economy, primary markets, secondary markets and new issues.The Strategist: Published on every Tuesdays on glossary paper. Focus: Theory and practice of business management, Guest columns from world’s foremost management thinkers.Accent west: A local guide for all that you wanted to know of the western regionpublished as a tabloid on all weekdays except Monday and Saturday Focus: Business news from Gujarat, Maharashtra and other western regionsWeekend: It is published on Saturdays. Focus: Entertainment, enterprise, motoring, personal finance & leisureMagazines 26
  • The Strategist: An annual magazine, which throws light upon the various companies’strategies and is a collection of the finest corporate stories featured in ‘The Strategist’supplement published every Tuesdays.Indian Management: It is the journal of All India Management Association. It focuseson articles on management style and is published monthly.Banking Annual: A yearly magazine, giving information on the banking scene, and alsoconducts market survey to rank the banks.The Billionaire Club: A yearly magazine which gives information about the billionairesof India.BS 1000: A yearly magazine which gives a kaleidoscopic view into the corporate scenein India. It also ranks companies on a scale of 1 to 1000 on basis of sales.The world of B-schools: A yearly magazine focusing on top b-schools in India.Spend: A yearly magazine on living.Gateway: A monthly magazine on life styleMotoring: A monthly magazine on automobile sector.Fund Manager: A monthly magazine on mutual fund sectorCHAPTER 3DEPARTMENTSMARKET DEVELOPMENT 27
  • SPACE MARKETINGEDITORIALSYSTEMS PRODUCTIONDEPARTMENTS1. Market Development Department –is responsible for the circulation of the newspaper in the whole region which comes under the preview of the respective editions.2. Space Marketing Department – is the only revenue generating department. The main function of this department is to sell space of Business Standard newspaper and its other products by collecting advertisements and generate revenue.3. Scheduling Department – It is responsible for the layout of the newspaper. Its core function is to adjust the advertisements and the editorial material on the pages.4. Editorial Department –collects news in the form of special stories reported by journalists as well as news from various news agencies. It edits the contents, fills 28
  • the remaining allocated space by the advertisement department with articles and reports.5. System Department –is responsible for network communication through VSAT (Very Small Aperture Terminal) and with dedicated leased lines connected to all the other branches.6. Production Department – It is responsible for the printing process of the newspaper.7. Administration Department – It is responsible for the overall administration, also the Finance and HR activities are synchronized and looked after by this department. 10:00 pm Printing starts 10:30 pm Printing completed 11:00 pm Up country dispatch 01:30 am Dispatch Completed 02:00 am Ahmedabad Dispatch 03:30 to 06:30 am Distribution Center 09:30 am Reporting to office 10:00 am to 06:00 pm Editorial and space department work 06:00 to 06:30 pm Pagination and Scheduling 07:00 pm System sends for approval at HO 08:30 pm Approval comes back 08:30 to 10:00 pm Preparation of master film for production and send it to press 29
  • Publication Process Editorial Space M arketing Department Department Scheduling Department Desk Takes indent revision Printing Dispatch Press Officer Dispatch City Edition Dark EditionMARKET DEVELOPMENT 30
  • A newspapers circulation is the number of copies it distributes on an average day. It isone of the principal factors used to set advertising rates. Circulation is not always thesame as copies sold, often called paid circulation, since some newspapers aredistributed without cost.Readership figures are usually higher than circulation figures because of theassumption that a typical copy of the newspaper is read by more than one person.Market Development Department generally known as circulation department andresponsible for the circulation of the newspaper in the whole region, which comes underthe preview of that addition of the newspaper. Market Development Department isresponsible for more than 40 routes for its regular supply. Addition to that marketdevelopment department has daily back-room operations, which contains to give printorder for the regular supply and for other copies like subscriptions, complementary andsponsored copies.Functions of Market Development Department:-MDD handles various functions like Print Order Generation, Regulation of Dispatch andto receive the payment in mode of cash, cheque or DD against bill generated by it forthe month. MDD also has to maintain following ledgers /books. • Indent Revision: A book, which keeps a record of daily supplies to each agent, and the variation in the supplies as per agent’s requirement of copies. • Print Order Generation: A slip, which is issued by MDD to production department for the printing of, copies which contains the requirement of total number of copies to distribution for next day. • Print Order Variance: 31
  • A transactional slip issued to Production Department, which is made by Dispatch Executive showing last moment change in print order. • Daily Supply Report: A master record book in which records of daily supplies of BS copies sent to each agent are kept. • Yearly Supply Report: A master record book that records an average annual supply of BS copies to each agent. • Net Paid Sales: A master record book, which contains the information about daily sale of BS on cover price. The formula for calculating NPS is NPS = Total Print Order – FRSN – Complimentary copies – Unsold copies • Unsold Register: A register which maintain a record of daily unsold. Local unsold is maintained on day to day basis where as up country unsold is maintained on monthly basis, which will be credited in agents account as per the unsold norms. • Payment Receipt Book: A transaction record, which shows the receipt of payment from the agents.The role of Market Development Department goes beyond simply distributing thenewspaper to readers. Circulation department also sell and promotes the newspaper.They must identify what reader’s want, when and at what price.MDD also includes Dispatch Control Department, which plays the role of to send rightnumber of newspapers at right time, at right station to the right person. For the abovepurpose this department generates Print Order and Rush Mails of Business Standard.Print Orders shows the required number of newspapers to be printed for each station forthe next day. The numbers of Rush Mails are generated accordingly. 32
  • This department makes the parcel of newspaper for each destination, they put the rushmails on the parcel which shows the number of copies on the parcel and its destination.The expenses incurred during the circulation are: • Taxi fare : Rs.3 per kilometer (approx.) • Parcel packing : Rs. 7 per parcel (approx.)According to the World Association of Newspapers (WAN), newspaper circulationsworldwide rose slightly in 2005 while newspaper advertising revenues showed thelargest increase in four years. Global newspaper sales were up 0.56 per cent over theyear, and had increased 6 per cent over the past five years. Much of the sales growthlast year was again in Asia.When free dailies are added to the paid newspaper circulation, global circulationincreased 1.21 per cent last year, and 7.8 per cent over the past five years. Free dailiesnow account for 6 per cent of all global newspaper circulation.Overall, the audience for newspapers keeps on growing, both in print and online.Newspapers are increasing their reach through the exploitation of a wide range of newdistribution channels, ranging from daily free newspapers to online editions. They areproving to be incredibly resilient against the onslaught of a wide range of mediacompetition.When the ad revenue grows at a healthy pace, publishers invest in increasing theircirculations. With bigger circulations, they are able to command higher ad rates. Thisbusiness model demands that the momentum be provided by growing ad revenues.Looking ahead, the prospects to 2006 look fairly good. With the economy of the countrycontinuing to grow at 7.5 per cent, we may reasonably expect at least 15 to 20 per centgrowth in ad revenues. This will drive the circulation at an eight per cent growth in theturnover and then can be expected to grow by 12 to 14 per cent. 33
  • To manage the distribution channel properly is not the only task that the MarketDevelopment Department has to perform. The department also has to take care for thenecessary steps required to tape the opportunities prevailing in the market.Department tries to increase the readership base with various tactics like masssubscription, prepaid card, sponsored copies etc.Regular SupplyRegular circulation refers to the circulation of news paper at the cover price that is Rs.Rs. 2 /- from Monday to Friday and and rs. 6 for Saturday, Ahmedabad Edition.Business Standard has a regular circulation of more than 150000 copies all over Indiawith its seven editions. Regular copy of B.S is supplied through the existing channel ofhawkers and agents. .Individual SubscriptionIndividual subscription comprises of various schemes floated for readers to subscribe tothe newspaper for a fixed time period at discounted price. Presently it has floated ayearly subscription scheme for Rs. 695.Generally subscription rate are lower than its cover price of the particular edition andABC rules.Mass SubscriptionMass subscription schemes are launched to acquire multiple subscriptions from a singleplace e.g. corporate office, hotels and institutions.In organization point of view this offer can give marginal increment to its dailycirculation. 34
  • Sponsored CopiesThis scheme is specially made for those corporate clients who want to advertise in thenewspaper. This turns out to be an economical form of promotion for the promoter. Thepromoter pays for the number of copies to be circulated in the area of their preference.A sticker is also placed on such sponsored copies.This scheme is beneficial for both the Sponsor Company and B.S to promote the dailyin an economical way. The sponsored copies also increase the average circulationfigure of the company. 35
  • Dispatch Process R aw M aterial Printing PressA hm edabad N adiad A nand V adodara B haruch A gent in E ach C ity V endors B ook stalls H aw k ers H aw k ers E nd U sers 36
  • SPACE MARKETING DEPARTMENTThe space marketing department plays a very important role in running a publication. Itis an indispensable part of the publication because it is the only revenue generatingdepartment, so all expenses like salaries, production expenses are paid from thisdepartment.60 per cent of revenues come from advertising sales. While the circulation revenueaccounts for 38 per cent, other incomes account for about 2 per cent. Circulationrevenue covers about 70 per cent of the variable costs. The first 25 per cent of theadvertising revenue goes towards covering the variable cost and the balance 75 percent is available for fixed cost and profits. Obviously advertising drives the print media.For the company, the overall cost of one copy of BS newspaper is around Rs. 15, butthey charge to the customers only Rs. 2 on weekdays and Rs. 6 for the weekendedition. Out of the revenue, 28% is given to the vendors and 5% to the distributor ascommission.In Business Standard newspaper, the pages are predefined for the various types ofadvertisements. There are advertisement agencies which provide the service ofadvertising in any newspaper. The Space Marketing Department is connected withthese agencies. The clients who place ads in any newspapers generally contact theagencies and hardly meet any publication directly. There are such 125 ad agencies inAhmedabad city only. For these ads the commission paid to the agencies is 10 to 15%.The advertisement rates here are negotiable depending upon the clients. The spacemarketing executives have to maintain a great rapport with the agencies as well as theclients because advertisements in business dailies are generally placed by governmentundertakings and large corporate houses. In addition usually these ads are larger insize and at a national level. 37
  • Advertisements can be classified into two main parts.1. Response oriented ads :Display – It consists of general ads of new products and services. It is in the form ofB2B, B2C and classifieds.Tender –tenders and notices are that form of ad that is usually placed the government,private companies and public sector companies to invite tenders for an upcomingproject.Feature –features is a special advertisement supplement focused on a category, eg.Summer feature on air conditions, coolers or health care supplement on pharmacyindustry etc.Appointment – appointments are ads placed by companies in business newspapers toinvite applications for middle and top management vacancies.2. Compulsion ads :Financial ads – The advertisements which include any financial information about thecompany, as for example, quarter end results etc.Scheduling deptMain task is to design the ad position, means which ad of which size for how manyeditions to be printed on which page. On the basis of all these information, theScheduling Department of all editions coordinates with each other and makes atentative. Tentative is a summary of ad positions for all seven editions. According tothe tentative, they make the dummy pages. The dummy is prepared on a A4 sizepaper, which is then send to the systems department. 38
  • The Scheduling Department has to check that: • The ad material is in PDF, EPS or TIFF file format • Ad file is in CMYK color format (Cyan, Magenta, Yellow and Black) • After the ad is printed in the final copy, it sends a report to Delhi • Front page ads must be booked to Kolkata (both sections) • Back page ads must to booked to Mumbai (both sections) • Front page ad can be of 25x4 only • Ads on left page will be on left side of the page • Ads on right page will be on right side of the page • Stock pages carries only 3 ads of 5x2 • Black and White ads must be of 1200 dpi • Color ads must be of 300 dpi • Government ads come on the left side 39
  • EDITORIALThe main task of this department is to edit the story. This department plays the role ofparents in the publication. There three main people involved in the editorial departmentare: • Reporter • Desk • PhotographerReporters engender the stories from different fields. They collect news on their ownthrough investigation and research as well as from various news agencies like PTI, AP,AFP, and PR agencies of the companies. Reporters file the stories and send it for finalediting to the desk in Mumbai. Reporters of all the seven editions file stories and sendthem to the desk at Mumbai and Delhi.The Desk decides which stories should be printed and what should be the headline foreach news storyPhotographers take the photographs at various places and events as and whenrequired.How does this department work?This department collects the news and then edits the content and sends it to Mumbaiand Delhi for the adjustment in the page. After allocating the space for advertisement itadjusts the remaining space for the article. For national dailies, the editorial versusadvertisement ratio is 60:40. 40
  • SYSTEMS AND PRODUCTION DEPARTMENTThe systems department acts as a link between the editorial and the productiondepartment. It is linked with V-SAT and dedicated leased lines to seven branches andhead office. The Ahmedabad branch is linked by leased lines to only two cities, Mumbaiand Delhi. News from all seven editions is obtained from these centres.This line is open 24 hours and is connected with BSNL and ISDN when it is necessaryto take data from Mumbai or Delhi.It uses the software called Quark Express. Final pages of the main section of thenewspaper come from Delhi which is automatically saved to the computer. The systemdepartment staff checks these pages and saves it to the computer. These pages arethen sent to the Duo Setter to make the cassette for printing the positive image. Themost important part is to receive a facsimile copy of newspaper and forward its print tothe production department.Components of System Department • 2 personal computers • Delta tower-manages the speed between computer and Duo setter, because the speed of the computer is lower compared to duo setter. • Duo setter-produces the cassette of the positive to be printedAfter receiving the facsimile copy from the system Department on butter paper or on apositive, this positive is framed on the aluminum plate. This plate is then fixed in theprinting machine. The required number of copies is printed according to the printingorder.The main raw material for this department is paper, aluminum plates, ink, etc. Theprinting contract is with Pearl Energy & Infrastructure Pvt. Ltd. formerly known asSambhaav Press for the Ahmedabad edition. Newsprint comes in reel form. The 41
  • weight of one reel of Salmon Pink paper is 400 kg and it costs Rs. 30,000 and it printsabout 4000 copies of newspaper. Per 1000 copies machine charges Rs. 800 inclusiveof all overhead costs. Per copy cost comes about Rs. 15.Tremendous advancement in newspaper printing technology has taken place worldover. Technology advancements are getting passed on to developing countries likeIndia much faster than hitherto. In fact some of our newspaper printing processes areamongst the most modern in this part of the Globe.In the next few years, a major section of the newspaper industry may be going for CTP(Computer to Plate), which will fully eliminate film output. Each such machine is capableof producing more than 200 broad sheets pages an hour.An optical punching and bending machine ensures precise register on four colourplates. In these machines plates can be mounted focused across and one around eachprinting cylinder. Such press can be configured to print 24 broadsheet pages eight ofthem in colour. A number of features such as narrow gap plate and blanket cylinders,double diameter blanket cylinders, metal backed blankets and shaft less drives make forhigh quality offset printing at high speeds.The two rotary folders deliver the printed and folded copies, which are conveyed to andprocessed in the mailroom. Two news grip, a single griper conveyer pick copies up fromthe folders and deliver them to counter stackers that produce bundles containing apredetermined number of copies. These bundles are labeled, plastic wrapped andstrapped before being loaded on transport vehicles.All this means faster and world-class printing of the newspaper. Such new presses arecapable of rolling out around 75,000 85,000 copies an hour resulting in newspaperability to carry late news and the reader getting his superbly printed newspaper earlier.In this technology imaging system takes fully paginated digital file and exposes thisinformation on to Printing Plate in Plate Setter without creating Film intermediate. The 42
  • pages received from editorial site are fired directly on the CTP having Silver platesloaded in it. These silver plates are exposed in the CTP.Technological advances world over have made newspapers less expensive to produce,specially if, the print order is large. It is likely to result in a shift in production from inhouse publishing to setting up of regional mass printing centers with latest technology.Media companies have begun heading towards cheaper, spacious and places withbetter infrastructure.Substantial investments have been made especially by very large newspapers intechnological up gradation of their newsgathering, communication and installing state ofthe art printing facilities. With such modern imported/indigenous latest in printing andnewspaper production technology, readers of newspapers are being treated toadditional colour pages. All such investments have been kept in view; to the extentinformation was available, during deliberations of the Committee to determine thepricing structure of advertisement tariff.Medium and Small newspapers have also not escaped this technology invasion. A verylarge number of Medium newspapers are now being brought out in colour or at leastcover pages are in colour. Reader is now getting a much better printed and morepresentable newspaper. This is also helping the newspaper establishments to increasetheir circulation at not only in their traditional areas but also reach readers in hithertounexplored cities and towns. Small newspapers are also upgrading their news collectingand printing technology by partially/fully computerizing their operations. This is alsoenabling them to bring out a much more presentable newspaper and increase theircirculation and reach in their traditional and targeted newer areas. 43
  • CHAPTER 4COMPETITION ANALYSISOTHER FINANCIAL NEWSPAPERSSURVEY RESULTSSWOT ANALYSISPORTER’S 5 FORCES MODEL 44
  • COMPETITION ANALYSISCompetitor Analysis is an imperative part of the strategic planning process. Businesseshave to track the competition, observe their moves and react to or preferably beproactive to their moves.Competitor analysis helps:• To understand ones competitive advantages/disadvantages relative to competitors• To generate understanding of competitors’ past, present and future strategies• To provide an informed basis to develop strategies to achieve competitive advantage in the future• To help forecast the returns that may be made from future investmentsWhile undertaking competitor analysis a number of questions need to be answered. Thefollowing are some such questions:• Who are our competitors?• What threats do they pose?• What is the profile of our competitors?• What are the objectives of our competitors?• What are the strengths and weaknesses of our competitors?• How are our competitors likely to respond to any changes to the way we do business? 45
  • Competition from other business dailiesThe Decision maker’s survey states that corporate honchos in india spend 20 minutesreading business dailies. There are many business dailies that are competing for thiseyeballs’ share.THE HINDU Business LineKasturi & Sons Ltd., (KSL) is the holding company of The Hindu group of publications.This organization’s first publication -- The Hindu, started as a weekly in 1878 thenbecame a daily in 1889 is widely read and always trusted. The Hindu played a majorrole during the Indian Independence Struggle.The corporate office of KSL is situated at Chennai (Madras). With the spread of theiroffices in major cities of India, KSL publishes and distributes a number of grouppublications all over the country and abroad.The correspondents all over the world bring the international news to the readers. Thenews and views enjoyed by readers through the print editions are now available to theGlobal readers through the Net editions of The Hindu and Business Line.The cover price of business line is higher than business standard thus businessstandard has a price advantage. Also in the Ahmedabad market the main advantage forBS is that it is printed in Ahmedabad and thus reaches the readers early. In case ofbusiness line, it is not printed in Ahmedabad, thus the readers in Ahmedabad receivecopies a day later as the copies come from Mumbai. 46
  • The Economic TimesThe Economic Times, launched in 1961, is Indias largest financial daily and the worldssecond largest financial daily after The Wall Street Journal. It is published by Indiaslargest media group, Bennett, Coleman & Co Ltd, (This company along with its othergroup companies are more popularly known as The Times Group), which also publishesThe Times of India, the Navbharat Times, the Maharashtra Times, Femina, andFilmfare. The current Editor of The Economic Times is noted economist SwaminathanAiyar.Supplements• Brand Equity (Weekly) - this is a weekly colour supplement which covers marketing, advertising, media and market research.• Corporate Dossier is a supplement of The Economic Times aimed at the CEOs of corporate India, with a special focus on management and strategy.The Economic time is the market leader. The main advantage is that it is one of theoldest financial dailies and thus enjoys great brand loyalty. Despite a higher cover price.It is part of the giant Times Group and thus it as the ability to start a price war to countercompetition. Thus business standard being a number 2 business daily has to adopt avery defensive strategy of protecting its market share. Even if it launches any scheme itcannot do it aggressively. The main reason behind it is that it is a third party publication.Despite this fact business standard has shown 300% growth in the last 5 years of itsexistence.The following graph shows the circulation and readership figures of different businessdailies.Source: NRS 2005 47
  • • ET has over 10 times the circulation of the next business daily • ET has over 5 times the combined circulation of all other business dailies in IndiaFINANCIAL EXPRESSFinancial Express is published since 1961 and is part of the famous express group.Indian express is flagship brand of the express group. Recently FE launched its Englishedition in Gujarat, which has further aggravated the competition in the Gujarat financialnewspaper market. The supplements by financial express are:India Inc. – it focuses on current market happenings, personal finance, trade,advertisement and marketing and is published every Thursdays and Fridays.Corporates & Markets is another supplement which covers issues like money andbanking, international corporations, markets and commodities.FE investor focuses on tax issues, stocks and investment. 48
  • READERSHIP SURVEY RESULTS1. DECISION MAKER’S SURVEY 5DMS, conducted by AC Nielsen-ORG Marg, is an annual survey detailing the attitudesof 1200 decision-makers aimed at marketers and publications to focus their media plansmore sharply. DMS 5 brings together a composite understanding of the media habitsand lifestyles of today’s business leaders. A successor to the popular DMS 4, thecurrent survey was conducted among senior executives designated as GeneralManagers and above across India’s top 500 private companies, top 100 public sectorand 100 leading financial sector companies including banks, merchant bankers andforeign institutional investors (FII).Aimed at better understanding this key target group, the DMS enables marketers tobetter identify the ideal channels for communicating to these high profile consumers andprovides insight into their media habits - newspaper and magazine readership, TVviewer ship, radio listener ship and Internet usage as well as lifestyle behavior andproduct ownership of the corporate elite whose average annual income is estimated atRs 10 lakhs plus..According to the Decision Maker’s Survey 5, The readership figures of four leadingbusiness publications in percentages put : • The Economic Times in the number one slot with 78 per cent. • Business Standard is at number two with 26 per cent • Followed by Financial Express and Hindu Business Line with 18 and 14 per cent respectively.2. NATIONAL READERSHIP SURVEYConstituted by: Advertising Agencies Association of India, Audit Bureau of Circulationsand the Indian Newspaper Society. 49
  • The National Readership Study 2005 (NRS 2005) in India is the largest survey of itskind in the world, with a sample size of over 2,61,212 house-to-house interviews to trackthe media exposure and changing consumer trends in both urban and rural India – andof course the estimated readership of publications. The study covers 522 publications(221 dailies and 301 magazines).Salient Features of NRS-2005PRINT MEDIA • The reach of the press medium (dailies and magazines combined) has increased from 179 million to 200 million in the last three years – as a proportion reached of population aged 15 years and above it has increased from 26.4% to 27.4%. • Of the 200 mn readers, as many as 98 mn are from rural India and 101 mn from urban India. • Literacy as measured in the NRS (the ability to read and understand any language) has risen from 62.5% to 70.6%. The rise has been more in rural areas (nearly ten points from 55.6% to 64.6%) than in urban India (79.3% to 84.5%). One would expect this to boost the market for the press medium. • The number of readers in rural India is now roughly equal to that in urban India. • Dailies have driven this growth in the press medium, their reach rising from 23% to 24%. Magazines have declined in reach from 13% to 10% over the last three years. • The time-spent reading has gone up quite significantly though – from 30 minutes daily on an average to 39 minutes per day over the last three years. The increase 50
  • has been sharp both in urban India (from 32 to 42 minutes daily) and in rural India (from 27 to 35 minutes daily). • There is still significant scope for growth, as 314 million people who can read and understand any language do not read any publication. It is not just affordability that is a constraint, since 21 million of these literate non-readers belong to the upscale SEC A and B segments. • Today the average urban adult spends 42 minutes per day reading dailies and magazines and 1 hour 42 minutes watching TV. The average reading time used to be 32 minutes and the average viewing time 1 hour 40 minutes 3 years ago.BUSINESS DAILIESAs per NRS 2005, The Economic Times has a readership of 11,74,000, BusinessStandard has 33,000, Financial Express 32,000, and Hindu Business Line 2,02,000.TELEVISION • TV and C&S dominate in the Southern States • Television now reaches 108 mn Indian homes, which means it crosses the 50% mark of all homes for the first time and reflects a growth of 32% since 2002. • Satellite TV has grown explosively in reach – from 134 million individuals watching in an average week in 2002 to as many as 190 million individuals in 2005 – almost catching up with the number of readers. • Homes with access to C&S jumped from 40 mn in 2002 to 61 in 2005. The growth of 53% is far higher than the growth of the TV market. 51
  • • An urban adult now spends on press and TV an average of 17 hours a week; on press 4.9 hours and TV 11.8 hours. The time spent on radio is 10 hours a week. • The time spent by the average rural adult on press and TV together is 14 hours a week and that on radio is 9 hours a week • Internet reach now exceeds 10 mn • Radio’s reach has stagnated at 23% of the population listening to any station in the average week. It has improved its performance in urban India (23% listen to the medium, up from 20% three years ago) primarily due to FM. In rural areas, the reach has dropped – 23% of village folk listen nowadays compared to 25% three years ago.3. INDIAN READERSHIP SURVEYTo counter the NRS, which was supported by large newspaper groups, the IRS wasborn in the mid-nineties. Some media users got together to create the media ResearchUsers Council. The idea was to offer members an unbiased readership and marketstudy to rival the NRS. The first study was out in 1995 and then after a gap of a year,the IRS has bee released every year since 1997. The IRS operates on a continuousinterviewing basis across the year in order to mitigate any seasonal biases. This isdone in two half yearly batches with a questionnaire and random sampling.For the IRS 2006 R1 an annual sample size of 2.4 lakhs was covered-spread equallyover two rounds. A total of 1,178 towns and 2,894 villages were surveyed. The datarepresents fieldwork during the full year Jan-Dec 2005. The mid-point of the survey isJune 1, 2005. Being a continuous survey, the reporting takes place every six monthsbased on a Moving Annual Total. 52
  • Major findings of IRS 2006 ( first round )PRINT MEDIA • Dainik Jagran tops dailies, Saras Salil rules magazines • Business publications register mixed performance • Most leading dailies see a marginal decline in readership • Most top magazines experience decline in readership • English dailies readership shoots up; Hindi dailies experience marginal decline • HT continues to rule the Capital: TOI still number two • Battleground Mumbai: Who is the winner • Survey reiterates increase in mass media reach • Fall in English dailies, but Hindu bucks the trend; drop in all magazinesPress reach has been hovering around at 24 per cent, TV at 55 per cent, Radio at 21per cent and Internet at 1.5 per cent at the all India level.In Urban India, Press and TV has actually declined in last three years. Press reach hasdeclined from 42.9 per cent in 2004 to 41.7 percent in 2006. Though TV has declinedfrom 80.2 per cent to 78.9 per cent in the last three years, C&S has shown somegrowth, from 53.5 per cent in 2004 to 54.4 percent in 2006.The readership of any English daily has increased by 2.24 per cent in comparison to theprevious round of the IRS (Round 2, 2005). The current readership of any English dailystands at 1,73,96,000.Whether it is English, Hindi, Malayalam, Tamil or Telugu, the Indian Readership Survey(IRS) 2006 has shown a decline in readership for almost all publications and largely 53
  • even across markets. Industry leaders offered mixed reactions to the finding whereIndia Today is flabbergast, Outlook is perplexed, and media professionals try and give arationale, saying that the days of borrowed readership are going.BUSINESS DAILIESMuch on the lines of what was seen in the general interest and other titles space, thebusiness dailies offer a mixed bag of performance with Hindu Business Line (HBL) andFinancial Express (FE) holding on to their readership unlike the leader in the segmentThe Economic Times (ET) and other players. In terms of business magazines, fromBusiness Today to Business World all have recorded a fall in the IRS 2006 R 1.According to the latest IRS figures, readership figures stand as below: IRS 2006 Publication Rank Readership The Economic Times 1 868000 Hindu Business Line 2 173000 Financial Express 3 93000 Business Standard 4 75000While The Economic Times emerges as a clear leader in all the three surveys, it isinteresting to note that Business Standard is number two in DMS followed by FinancialExpress and Hindu Business Line.However, going by NRS data, Hindu Business Line is way ahead of Business Standard,which is at number three, and there is a difference of only 1000 copies betweenBusiness Standard and Financial Express that takes the fourth slot. Also, IRS putsHindu Business Line at number two followed by Financial Express. Here, BusinessStandard is fourth. 54
  • INTERNET AS AN EMERGING SOURCE OF INFORMATIONThe rapid evolution of the Media is changing the everyday life of consumers the worldover, with its significance more evidenced in fast-growing nations like India. Readersfeel that internet publications are as good as or better than newspapers/ magazines forfinding information about products and music. • Newspaper online consumption rose 8.71 per cent in 2005, and 200 per cent over the past five years. • Internet advertising revenues continue to grow rapidly, and were up 24 per cent in 2005, the highest growth for five years. • The number of newspaper websites increased by 20 per cent in 2005.Consumers continue to move beyond purely functional uses of the internet into moremedia-oriented activities, such as reading stories, looking at photos, and watchingvideo. People of all ages are receptive to the internet as a medium and not just a tool.Significantly there are is almost negligible difference between the age groups in theirattitudes toward the internet, television and magazines.However, the importance of newspapers differs significantly depending on the agegroup of the respondents, with 38 per cent of the 35 to 54 year-old newspaper readersindicating that newspapers are an important part of their day, compared to only 17 percent of 18 to 24 year-old readers.Interestingly, 45 per cent of the 18 to 24 year-olds indicate that they would turn to theinternet first for national news (vs. 29 per cent), while 58 per cent would turn to theinternet first for weather (vs. 49 per cent) and 51 per cent for sports (vs. 41 per cent). 55
  • SWOT ANALYSISSWOT stands for Strengths, Weaknesses, Opportunities and Threats.SWOT analysis is an important tool for auditing the overall strategic position of abusiness and its environment. Once key strategic issues have been identified,they feed into business objectives, particularly marketing objectives.Strengths and weaknesses are internal factors inheriting the company Forexample; strength could be company’s marketing expertise. A weakness couldbe the lack of a new product.Opportunities and threats are external factors. For example, an opportunity couldbe a developing distribution channel such as the Internet, or changing consumerlifestyles that potentially increase demand for a companys products. A threatcould be a new competitor in an important existing market or a technologicalchange that makes existing products potentially obsolete.SWOT analysis can be very subjective given the same information about thesame business and its environment. Accordingly, SWOT analysis is best used asa guide and not a prescription.Areas to ConsiderSome of the key areas to consider when identifying and evaluating Strengths,Weaknesses, Opportunities and Threats are listed in the example SWOTanalysis below: 56
  • SWOT ANALYSIS- BUSINESS STANDARDSTRENGTHS WEAKNESSES India’s 2nd largest circulated • Low Brand Awareness. business daily • Third Party Publication. Associated with the Financial • Some Product features- small times of London font size, NAVs are not latest. Competitive cover price of Rs. 2. Unmatched Quantitative and qualitative content Diverse supplementsOPPORTUNITIES THREAT • Great market potential. • Existing Competitors like • Tie-up with different national Economic Times, Business Line newspapers. • Entry of new entrants e.g. • Increasing literacy rate and Financial Express English in incomes. Gujarat etc. • Increasing urban population • Threat from other media forms • Govt policy for FDI in print media. like news channels, internet etc. • Technological advances in • Entry of foreign Players. printing which will drive down the • Access to online analysis. cost per copy. 57
  • PORTER’S 5 FORCES MODELThe most influential analytical model for assessing the nature of competition in anindustry is Michael Porters Five Forces Model, which is described below:Porter explains that there are five forces that determine industry attractiveness andlong-run industry profitability. These five "competitive forces" are- The threat of entry of new competitors (new entrants)- The threat of substitutes- The bargaining power of buyers- The bargaining power of suppliers- The degree of rivalry between existing competitors 58
  • Threat of New EntrantsNew entrants to an industry can raise the level of competition, thereby reducing itsattractiveness. The threat of new entrants largely depends on the barriers to entry. Highentry barriers exist in some industries (e.g. shipbuilding) whereas other industries arevery easy to enter (e.g. estate agency, restaurants). Key barriers to entry include- Economies of scale- Capital / investment requirements- Customer switching costs- Access to industry distribution channels- The likelihood of retaliation from existing industry players.Threat of SubstitutesThe presence of substitute products can lower industry attractiveness and profitabilitybecause they limit price levels. The threat of substitute products depends on:- Buyers willingness to substitute- The relative price and performance of substitutes- The costs of switching to substitutesBargaining Power of SuppliersSuppliers are the businesses that supply materials & other products into the industry.The cost of items bought from suppliers (e.g. raw materials, components) can have asignificant impact on a companys profitability. If suppliers have high bargaining powerover a company, then in theory the companys industry is less attractive. The bargainingpower of suppliers will be high when:- There are many buyers and few dominant suppliers- There are undifferentiated, highly valued products- Suppliers threaten to integrate forward into the industry (e.g. brand manufacturersthreatening to set up their own retail outlets)- Buyers do not threaten to integrate backwards into supply- The industry is not a key customer group to the suppliers 59
  • Bargaining Power of BuyersBuyers are the people / organizations who create demand in an industryThe bargaining power of buyers is greater when- There are few dominant buyers and many sellers in the industry- Products are standardized- Buyers threaten to integrate backward into the industry- Suppliers do not threaten to integrate forward into the buyers industry- The industry is not a key supplying group for buyersIntensity of RivalryThe intensity of rivalry between competitors in an industry will depend on:The structure of competition - for example, rivalry is more intense where there aremany small or equally sized competitors; rivalry is less when an industry has a clearmarket leaderThe structure of industry costs - for example, industries with high fixed costsencourage competitors to fill unused capacity by price cuttingDegree of differentiation - industries where products are commodities (e.g. steel, coal)have greater rivalry; industries where competitors can differentiate their products haveless rivalrySwitching costs - rivalry is reduced where buyers have high switching costs - i.e. thereis a significant cost associated with the decision to buy a product from an alternativesupplierStrategic objectives - when competitors are pursuing aggressive growth strategies,rivalry is more intense. Where competitors are "milking" profits in a mature industry, thedegree of rivalry is less 60
  • Exit barriers - when barriers to leaving an industry are high (e.g. the cost of closingdown factories) - then competitors tend to exhibit greater rivalry.STRENGTHS OF THE FIVE COMPETITIVE FORCES MODEL • The model is a strong tool for competitive analysis at industry level. • It provides useful input for performing a SWOT Analysis.LIMITATION OF PORTERS FIVE FORCES MODEL • Care should be taken when using this model for the following: do not underestimate or underemphasize the strengths of the organization (Inside-out strategy). • The model was designed for analyzing individual business strategies. It does not cope with synergies and I portfolio of large corporations. • From a more theoretical perspective, the model does not address the possibility that an industry could be a companies are in it. • Some people claim that environments which are characterized by rapid, systemic and radical change requi emergent approaches to strategy formulation. • Sometimes it may be possible to create completely new markets instead of selecting from existing ones. 61
  • BUSINESS STANDARD (AHMEDABAD EDITION) AND THE PORTER’S 5 FORCEMODEL THREAT OF NEW ENTRANTS LAUNCH OF FE ENGLISH IN GUJARAT BARGAINING POWER SEGMENT BARGAINING OF BUYERS RIVALRY POWER OF SUPPLIERS LOW AD RATES ET, BS, FE, HBL 3RD PARTY PUBLICATION THREAT OF SUBSTITUTES OTHER MEDIA FORMS LIKE TV NEWS CHANNELS, INTERNET, AND MOBILE NEWS UPDATES 62
  • CHAPTER 5MARKET RESEARCHMARKETING RESEARCHA. IntroductionMarketing research is a tool in the hands of the marketer, either to find out the solutionof any managerial or market related problem or to find new opportunities and threatsprevailing in the market. Marketing research is a systematic gathering, model buildingand fact-finding process to solve the problem relating to marketing of goods andservices. 63
  • Marketing research can be of three types;1. Descriptive research2. Exploratory research3. Causal researchAs part of our summer training, we first wanted to have an overlook at the presentmarket conditions. So we first conducted a pilot survey. Based on it some strategieswere suggested to enhance the awareness of Business Standard as a brand and tofurther penetrate into the market. A sample of 150 respondents was taken as a baseand a survey was then conducted with the help of a questionnaire, which is displayed inthe annexure. The results of the survey are discussed later in this section.B. Objectives of the Research:Following are the major objectives of our pilot survey;1. To know the reading habits of people2. To judge the awareness level about Business Standard3. To make a market development strategy for Business Standard4. To find the purposes for which people read financial dailies5. To know the factors considered important for subscribing to any financial dailyC. Research Methodology:Research methodology is the most important part of marketing research, which consistsof the research design, sampling, data collection, and data analysis parts. These aredescribed here under:(a) Research DesignResearch design is the planning of how to do the research. It consists of all necessaryanswers to questions such as what should be the sample size, sampling method and 64
  • the method of data collection. As Business Standard is a financial newspaper theresearch design had to be very specific since the target audience was selective.(b) Sample sizeAs we just wanted to do a pilot survey, we took the sample of only 150 respondents. Asthe target audience is very specific we decided to go by Judgmental sampling method inwhich we included the respondents from all the audience classes described below.(c) Target audienceGenerally any financial daily caters to a niche audience. In order to take acomprehensive sample the target audience has to be kept in mind. Accordingly asample of 150 diverse respondents was taken. The chart shows the proportions ofdifferent respondents included in our sample. Insurance Agents 8% CA 11% Bank Employees Corporates 12% 27% Stock Brokers 29% MBAs 13%The sample was not just diverse as far as professions are concerned, but it alsoincluded diverse age groups. Though it was not a pre-determined idea but through dataanalysis it was known that the sample was diverse. 65
  • Respondents Age Group 20-30 26% >50 5% 41-50 31-40 23% 46%(d) Data collectionSince, data collection signifies a very crucial place in a pilot survey; primary data wasalso collected by way of personal interviews through structured questionnaires.(e) Data analysisThe actual work of researcher starts after the collection of data, because only heaps ofdata does not serve the purpose of market research. The data is to be classified andanalyzed properly so as to get deep insights into the problem or the prospects of theopportunity. On the basis of the questionnaire, the following facts and analysis ispresented.1. Which newspapers do you read?From the table given below, we can observe that from our sample 54% respondentswere reading English Newspapers and 38% were reading Gujarati Newspaper. Also8% of them were Hindi newspaper readers. Readers Percentage Readers Percentage Gujarati 38% Gujarati & English 8% Hindi 8% Hindi & English 4% English 54% 66
  • 2. Which Financial dailies you are aware of?The chart shows that out of 150 respondents 88% wereaware about the Economic Times financial daily. Themain reason being it is a product of Bennett, Coleman &Co. Ltd. ET 88%Business Standard, according to our pilot survey got thesecond place as far as the brand awareness is concerned.One of the reasons can be an earlier association withfamous Anand Bazaar Patrika. BS 68% The adjoining pie-chart shows that 45% of the respondents were aware of Financial Express financial daily. It is published in Gujarati language also. As the company had to start the Gujarat i.e. the Ahmedabad edition of Financial FE Express ‘English’. This was due to the recent brand noise 45% created through hoardings and other brand promotionactivities as part of the launch campaign.‘The Hindu Group’ which has a very good brand image asfar as general newspaper category is concerned. ThoughBusiness Line is part of the same group, it does not havegood brand awareness as far as the Gujarat market is BLconcerned. Also it is not published from anywhere in 24%Gujarat. The Mumbai edition of Business Line is 67
  • distributed to very few and specific customers only .so all respondents were not awareof the brand.3. Do you subscribe to any financial daily?The chart shows that out of 150 respondents approx.54% were subscribing to any of the financial dailies. YES 54%Amongst the rest, most were either reading the branch NO 46%copies or generally obtain the business news throughother mediums such as business news channels orthrough the Internet.4. Which factors do you take into account while selecting a financial daily? Editorial Quality Gifts Price S upplementsThe above graph shows that the editorial quality of a financial daily is the mostimportant factor for readers. It is followed by free gifts with subscriptions that motivate aperson to subscribe for a newspaper. This had been working well for generalnewspapers but it is interesting to know that even subscribers for financial daily preferfree gifts to price and supplements.5. How much time do you spend on reading a financial daily?By this question, a background for next questions was built, like the specific features,improvements and various purposes for which the financial dailies are preferred. Here 68
  • we found that majority of the respondents were>30Min. reading any financial daily for more than 30 minutes.66% <30 Min. 34%6. Since how long have you been reading the financial daily that you subscribe? The main purpose to put this question was to Check the relationship between the variables, brand loyalty >5 Yrs. and brand shifting. As per our findings, people who 3-5 Yrs. 15% 35% have been reading their preferred daily since a long period of time are more likely to be brand loyal and <1 Yr. thus would not switch to any other financial daily 21% 1-3 Yrs. whatever be the offerings. 29% (For statistical analysis refer to the annexure.)7. What is/are your main purpose of reading the financial dailies? Business News Stock Values BN SV 72% 46% Economic News Inte rnational Business EN IB 54% 19% 69
  • The main purpose of reading a financial/business daily is to get the latest businessnews. The above charts show the findings supported the obvious expectation asBusiness News acquired the highest percentage. Also Economic news and daily StockValues, NAVs are some other purposes for reading a financial daily.8. Would you consider shifting to any other financial daily?Findings show that approx. 49% of the respondents wereready to switch to other financial dailies if some attractive NOdiscounts and gifts are offered. This is also consistent with 27%Gifts as one of the factors for subscribing to a financialdaily.( one of the previous questions) Particularly this YES 49%information is useful for devising a strategy for BusinessStandard to penetrate the market. (Shifting preference is MAY BEalso one of the variables for the chi-square test given in the 24%annexure).9. Which sections of Business Standard do you like? (Assign Ranks)This question was particularly relevant for Business Standard readers. The chart showsthat General Headlines and Money & Market section were ranked as most preferredsections of BS. It also throws light on the fact that though accent west does have goodcontent as far as the western India news is concerned, but because of its tabloid form itis read less. Thus we suggested to include accent west’s news in the main supplement. 70
  • General Headlines Money & Market Accent West Editorial Part International Business10. What is your mode of access to Business Standard?Generally the newspapers are distributed through vendors only, but at some regulartime intervals companies launch certain schemes in which customers get some cashdiscount as well as some gifts. Our research data shows that majority of the customerssubscribe to Business Standard through vendors only, but there are some who wouldlike to go for BS if some subscription scheme is provided to them. Book- S talls 7% S ubscrp. S cheme 24% Vendors 69% 71
  • 11. How do you find the delivery of Business Standard? Distribution SystemIn this fast paced industry, timely andconsistent delivery of newspapers is veryimportant as far as customer satisfaction and Satistactory 58%retention is concerned. This is because newsloses it value if delivered late. Here we foundthat only 58% of the existing BS customerswere fully satisfied with the distribution. Poor Average 10% 32% 72
  • CHI SQUARE TEST (1) Set up the Hypothesis: Ho : Brand shifting is independent of since how long a person reads a particularfinancial daily H1 : Brand shifting depends on since how long a person reads a particular financialdaily. (2) Test Statistics: Χ2 = (fo – fe)2 fe (Fo - Fe)2 /Will shift ? Fo Fe Fo - Fe Fe Yes <1 22 15.09 6.91 3.1642 1-3 31 21.41 9.59 4.2956 3-5 14 25.31 -11.31 5.0539 >5 6 11.19 -5.19 2.4072 No <1 2 8.47 -6.47 4.9423 1-3 4 12.03 -8.03 5.36 3-5 18 14.21 3.79 1.0108 >5 17 6.29 10.71 18.2359 May Be <1 7 7.44 0.44 0.02602 1-3 9 10.56 -1.56 0.2305 3-5 20 12.48 7.58 4.5313 >5 0 5.52 -5.52 5.52 54.7777(3) Degree of freedom: (r-1)(c-1) = (3-1)(4-1) = 6(4) Level of Significance: α = 0.05(5) Critical Value: χ2 = 12.592 73
  • (6) Decision: 12.592 54.777The calculated chi-square does not fall within the acceptance region so the nullhypothesis is rejected and It can be said that shifting preference depends on the tenurefor which a person reads a particular financial daily.Limitations of the Research:Following are the limitations of the pilot survey:1. To get an overview about the prevailing market conditions, we used judgmentalsampling and took a sample of only 150 from a huge population.2. the survey was restricted to Ahmedabad city only. Thus, it may not fully represent the whole population of business newspaper readers in India.3. Time Constraint: We had only a week’s time to carry out this pilot study. 74
  • Findings and RecommendationsFrom the study carried out and the analysis of the result obtain from the survey, thefollowing suggestions and recommendations were made to help the firm improve uponits product. 1) Increase the number of centers where the news paper is available. 2) Regarding news content. a. Give more values to foreign exchange rate. b. Increase the font size of stock details. c. Provide the separate columns of Banks and Insurance news. d. Cover all the scheme of Mutual Funds. e. Provide script code of BSE and NSE. f. Provide information of appointments and education abroad. 3) Management should design a vendor Relationship Management program and should come up with some motivational offers and scheme for the vendors, so that they are self-motivated and hence push Business Standard from their side increasing trade sales. 4) Business Standard as a newspaper can implement a MIS to keep a track of BS readers. Through this MIS, Business Standard can focus on their existent readers and can work for customer retention and customer loyalty programs. 5) The survey revealed another important learning that newspaper reading is a matter of habit and habits are hard to break. A slight drop in price does not endear the other newspaper — more or less newspaper demand is price inelastic. Thus business standard should target the young age group today so that they become loyal readers tomorrow. For this it should launch BUSINESS STANDARD STUDENTS’ FORUM for management students and a JUNIOR BS 75
  • FORUM for undergraduate students. Students would have to subscribe Business Standard and in turn The BS forums would provide a platform for students to participate in various competitions.6) Also, the floating readers are inherently disloyal and are prone to experiment with any new entry on the block. After these insights, combo offers prove to be an effective pricing tool. Unlike other newspapers, business standard does not have support news paper brands for combo offers. Thus Business Standard can introduce combo offers like 1 year subscription for business standard + 1 year subscription of Indian Management Magazine at discounted price. 76
  • Conclusion • From the pilot survey we found that most of the customer regularly read this newspaper and they are satisfied with all the contents provided by the Business Standard. • Looking at over all publication process, we came to know the whole process of printing till the final delivery of the newspaper. Understanding the theoretical aspect makes it look much easier but practically the publication process is very difficult and requires integrated efforts from all the departments. • The distribution channel plays a very important role in newspaper industry. The distribution channel of Business Standard is similar to the other print industry. After completing the printing work of the newspaper dispatch officer sends the copies to the various cities, the agent of the various cities collects the copy and sells to their vendors and bookstalls. Vendors sell their copies to the end user. • As a part of promotional activity performed by business standard, subscription scheme at discounted price is offered to customer. The main objective behind this is to attract the non BS reader and make him try the newspaper. By doing so the company is able to increase the circulation with maximum customer retention after the scheme period. • Finally looking at the acceptance of promotional scheme of Business standard, I conclude that the scheme offered was mostly liked by the readers and ultimately most of them were subscribing to it. 77
  • ANNEXURE1. QUESTIONNAIRE 1. Name: 2. Organization: 3. Designation: 4. Contact No.: M . 5. Age: (a) 20-30 years (b) 31-40 years (c) 41-50 years (d) 51 years & > 6. Qualification: ________________________ 7. Which newspaper do you read? (a) Gujarati (b) Hindi (c) English (d) Others 8. What are the financial dailies that you are aware of? (a) (b) (c) (d) (e) (f) 9. Do you subscribe to any financial dailies? If Yes, Which? (a) Yes (b) No 78
  • 10. How much time do you spend on reading the newspaper? (a) <30 Minutes___ (b) >30 Minutes___11. Since how long have you been reading the financial daily that you subscribe?(a) <1 Year(b) 1-3 years(c) 3-5 years(d) > 5 years12. What is your main purpose of reading the financial dailies?(a) Local News(b) Business News(c) Mutual fund values and Stock values(d) International Business(e) Economic News13. Which are the specific features of the newspaper that you like?(a) ________________________________________(b) ________________________________________(c) ________________________________________(d) ________________________________________14. What are the improvements that you would like to see in the newspaper that you subscribe? (a) _________________________________________ (b) _________________________________________15. Would you consider switching over to any other financial daily?(a) Yes(b) No(c) May Be 79
  • Business Standard 1. Which sections of Business Standard do you like? (Assign Ranks) (a) General Headlines (b) International News (c) Editorial Part (d) Money & Market (e) accent West 2. What is mode of access to Business Standard? (a) Subscription Scheme (b) Vendors (c) Bookstalls 3. How do you find the delivery of Business Standard? (a) Satisfactory (b) Average (c) PoorNomenclature ABC Audit Bureau of Circulation BS Business Standard BL Business Line DSR Daily Supply Report ET The Economic Times FE Financial Express 80
  • IRS Indian Readership Survey MDD Market Development Department MDS Market Development Strategies NRS National Readership Survey ROI Return on Investment SMD Space Marketing Department YSR Yearly Supply Report Bibliography• Kohli, Vanita (2003), ’The Indian Media Business”, Response Books, New Delhi• Kotler, Philip, 2005, “Marketing Management”, Pearson Education, Delhi, 11th Edition• K. Suresh, 2003, “Media Management”, ICFAI University Press• http;// www.indiatelevision.com/image/12/dailies_top10jpg• http:// www.economictimes.indiatimes.com/articleshow/msid_375873• http:// www.india.mapsofindia.com/the-country/india-forum/media- in-india.html• http:// www.hindu.com/the hindu/ho/nus/00200606160312.htm 81
  • • http:// www.chronosphere.biz.imo/23/imo.html• http:// www.newswatch.in/?p=4410 82