You are on page 1of 54

A PROJECT REPORT ON

STUDY OF

Submitted in partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION BY


K.Krishnamachary Roll No: 09E11E0017 Under the esteemed guidance of

P.VIKRANTH KUMAR
(ASSOCIATE PROFESSOR, MBA DEPT)

BHARAT INSTITUTE OF ENGINEERNG AND TECHNOLOGY


(NBA ACCREDITED) (Approved by AICTE, Recognised by the Govt. of AP and Affiliated to JNTU) Mangalpally (V), Ibrahimpatnam (M), Ranga Reddy District, A.P. 501 510. 2009-2011

Latter from the new indian express

Latter from the college

CERTIFICATE
This is to certify that the project report entitled Distribution channel

management procedure at Mediciti Hospital., Hyderabad, submitted to Jawarharlal


Nehru Technological University in partial fulfillment for the award of degree of Master of Business Administration has carried out by Mr.K.Krishnamacharya bearing Hall Ticket No: 09E11E0017. Who is a bonafide student of Bharat Institute of Engineering & Technology, Mangalpally, Ibrahimpatnam,for the academic year 20092011.

Prof. A. Sudhakar Rao Head of Department BIET Management Studies Project Guide

Submitted for the University Examination held on... Name of the Examiners

1...................................................... 2......................................................

Signature with date

DECLARATION
I hereby declare that the project work titled Distribution channel

management submitted by me in partial Fulfillment of the award of the degree of


MASTER OF BUSINESS ADMINISTRATION was done under the guidance of A.Sudhakar rao HOD, in partial fulfilment for the award of the degree of Master of Business Administration in marketing from Bharat Institute Of Engineering And Technology affiliated to the Jawaharlal Nehru Technological University and have not been submitted to any other institute or University for the award of any degree or diploma.

Place: Date: (Mr.K.Krishnamacharya)

ACKNOWLEDGEMENT
I express my profound thanks to the management of BHARAT INSTITUTE OF ENGINEERING & TECHNOLOGY for providing the facilities in carrying this project.

I am extremely grateful to Mr.A.Sudhakar rao HOD, MBA Department, Project internal Guide, for his unflinching cooperation throughout the project.

I express my gratitude to Prof. A. Sudhakar Rao, HOD, MBA Department, for his kind assistance with timely suggestions and indispensable help, whose cooperation has made this project feasible.

I thank our beloved Principal, Dr. P. Padmanabham for giving me permission to do . Last but not the least we thank all the teaching and non-teaching staff members of MBA Department who directly or indirectly helped us in successful completion of the project. the project at The New Indian Express, Hyderabad

Mr.K.Krishnamacharya (09E11E0017)

ABSTRACT
The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

Distribution system includes distribution channels. Which are sets of independent organizations involves in the process of making a product (or) a service available for the consumption. Distribution network is necessary for smooth flow of goods.

Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as "all the organizations through which a product must pass between its point of production and consumption"

Index
S.NO

CONTENTS CHAPTER 1
1.1INTRODUTION TO MARKRETING MANAGEMENT 1.2 OBJECTIVES OF THE STUDY 1.3 NEED OF THE STUDY 1.4 INTRODUCTION DISTRIBUTION CHANNEL MANAGEMENT 1.5 RESEARCH METHODOLOGIES

1.

2. 3. 4.

CHAPTER 2
2.0 LITERATURE REVIEW

CHAPTER -3
3.0 COMPANY & INDUSTRY PROFILE

CHAPTER -4
4.0 ANALYSIS AND INTERPRETATION

5.

CHAPTER 5
5.1 FINDINGS 5.2 SUGGESTIONS AND RECOMMENDATIOS BIBLOGRAPHY ANNEXURE

LIST OF TABLES AND FIGURES


Page nos 39 40 41 42 43 44 45 46 47

S.No. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9

Title Dealers relation with THE NEW INDIAN EXPRESS Dealers feeling about Company Image To know on which aspects the customer gets more satisfaction Stock out problems Dealer satisfaction on supply of NEWSPAPER Dealers satisfaction on in time deliveries Customers Awareness Sales satisfaction Industry to stock point fright expenses percentage

CHAPTER-I
INTRODUTION TO MARKRETING MANAGEMENT OBJECTIVES OF THE STUDY NEED OF THE STUDY INTRODUCTION DISTRIBUTION CHANNEL MANAGEMENT RESEARCH METHODOLOGY

Marketing Management
Marketing Management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making International marketing highly significant and an integral part of a firm's marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product .To create an effective, cost-efficient Marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning.

Structure
Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and Competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into certain five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context. Customer analysis is to develop a schematic diagram for market segmentation, breaking down the market into various constituent groups of customers, which are called customer segments or market segmentation's. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: demographic, psycho graphic, geographic, behavioral, needsbenefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping. In Company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct periodic brand audits to assess the strength of its brands and sources of brand equity. The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist. Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.[5] Depending on the industry, the regulatory context may also be important to examine in detail.

In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include: Qualitative marketing research, such as focus groups and various types of interviews Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Marketing strategy
If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals. To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: 1) The segment is attractive to

serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.[3] In fact, a commonly cited definition of marketing is simply "meeting needs profitably." [6] The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers who are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons. In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products. For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance." Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage.[8] The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers.[7]

Implementation planning
The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic.

After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management, Pricing (at what price slot do you position your product, for e-g low, medium or high price), Place (the place/area where you are going to be selling your products, it could be local, regional, country wide or International) (i.e. sales and distribution channels), and People. Now a new P has been added making it a total of 5P's. The 5th P is Politics which affects marketing in a significant way. Taken together, the company's implementation choices across the 4(5)Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives. In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes: An executive summary Situation analysis to summarize facts and insights gained from market research and marketing analysis The company's mission statement or long-term strategic vision A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved Implementation choices for each element of the marketing mix (the 4(5)Ps)

Project, process, and vendor management


Once the key implementation initiatives have been identified, marketing managers work to oversee the execution of the marketing plan. Marketing executives

may therefore manage any number of specific projects, such as sales force management initiatives, product development efforts, channel marketing programs and the execution of public relations and advertising campaigns. Marketers use a variety of project management techniques to ensure projects achieve their objectives while keeping to established schedules and budgets. More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as new product development, brand management, marketing communications, and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly. Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services. Under the area of marketing agency management (i.e. working with external marketing agencies and suppliers) are techniques such as agency performance evaluation, scope of work, incentive compensation, RFx's and storage of agency information in a supplier database.

Organizational management and leadership


Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion" and work to enforce corporate identity standards across the enterprise. In larger organizations, especially those with multiple business units, top marketing managers may need to coordinate across several marketing departments and also resources from finance, research and development, engineering, operations, manufacturing, or other functional areas to implement the marketing plan. In order to

effectively manage these resources, marketing executives may need to spend much of their time focused on political issues and inte-departmental negotiations. The effectiveness of a marketing manager may therefore depend on his or her ability to make the internal "sale" of various marketing programs equally as much as the external customer's reaction to such programs.

Reporting, measurement, feedback and control systems


Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers in the marketing department or elsewhere to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner. Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or "marketing resource management" to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.

Measuring the return on investment (ROI) of and marketing effectiveness various marketing initiatives is a significant problem for marketing management. Various market research, accounting and financial tools are used to help estimate the ROI of marketing investments. Brand valuation, for example, attempts to identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate the financial value of specific investments in brand equity. Another technique, integrated marketing communications (IMC), is a CRM database-driven approach that attempts to estimate the value of marketing mix executions based on the changes in customer behavior these executions generate.

OBJECTIVES OF THE STUDY :-

Primary objective: To study the nature and importance of distribution channel management in THE NEW INDIAN EXPRESS.

Secondary objective: To study various factors and determinants and outcomes of distribution channel management. To suggest factors that might improve distribution channel management. To acknowledge strategies of the employees. To offer suggestion in building effective channel strategy to THE NEW INDIAN EXPRESS.

NEED FOR THE STUDY

The primary reason for studying the distribution channel management in newspaper industry is to practice undertaken by the organization with THE NEW INDIAN EXPRESS changing technology & skilled and qualified staffing ,its need to pay attention towards distribution channel &how it is effecting India &also the organization.

Distributions are also one of the important functions in marketing. Through distribution only one company can sell its products. Here the distribution channels contain the dealers. Who are very near to the customers and act as middlemen between the organizations.

Distribution system includes distribution channels. Which are sets of independent organizations involves in the process of making a product (or) a service available for the consumption. Distribution network is necessary for smooth flow of goods.

SCOPE OF THE STUDY


The study aims to measure satisfaction level of the dealers regarding THE NEW INDIAN EXPRESS . The area within which the study was conducted regarding the information the primary data is collected in the form of questionnaire collected from the dealers in Rangareddy district. To sum up the project had within the scope of the study in the area of DISTRIBUTION CHANNEL of THE NEW INDIAN EXPRESS dealers in Rangareddy district for a particular time (JAN-FEB 2010)

The news and features are recorded on the newspaper.

So they can be accessed whenever necessary and can be discussed elaborately. Newspapers reach remote areas where the other media is not

accessible. The local news and information locally can cover more properly in

the news papers. The items like application formats, examinations results etc. can be given only

through the newspapers.

Newspapers are the cheapest medium for advertisers to reach a

large number of people. The newspaper can be expended in terms of pages to

accommodate more news, give extra supplements and other feature. The newspaper can give news, information and advertisements at the same time

on the same page. This enables different people to access different item or features at the same time.

Distribution and Channel Management

Introduction : Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion. The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as "all the organizations through which a product must pass between its point of production and consumption" Why does a business give the job of selling its products to intermediaries? After all, using intermediarys means giving up some control over how products are sold and who they are sold to. The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself.

Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production and consumption. Organizations that form any particular distribution channel perform many key functions: Information Gathering and distributing market research and intelligence important for marketing planning Promotion Contact Matching Developing and spreading communications about offers Finding and communicating with prospective buyers Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging Negotiation Reaching agreement on price and other terms of the offer

Physical distribution Transporting and storing goods Financing Acquiring and using funds to cover the costs of the distribution channel Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution channel in order to make it cost effective. Numbers of Distribution Channel Levels Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels:

In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent. The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers. Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs.

RESEARCH METHODOLOGY
The Market research project was carried out in two phases. In the first phase primary data was collected from the customers through questionnaires (direct, telephonic and mailed) prepared for the purpose. The second phase consisted of analyzing the Primary data with SPSS tool a n d d o e s t h e findings and Analysis. For this purpose there is a kind of methodology adopted to ease the purpose of the study. Steps: Research design, Sampling methods, Questionnaire, Data analyses and interpretation.

Research Design Data collection: Data is empowered information about the problem chosen. It is considered as raw material used in the interpretation part of the project work which is used to find out the hidden problem of the chosen topic. Thus the collected data is analyzed and interpreted to find out the exact reason for the problem and to give out appropriate suggestions to overcome the problem. So in order to carry out the analysis and interpretation as part of project work data collection with relevance to the problem chosen is essential. Data is collected in two ways:

Primary data:

The questionnaire is designed & circulated to personnel across the company out of which we are received and it was aimed to study the satisfactory level of employees in an organization at both supervisory and executive levels in the organization. The questionnaire and observation is used as the primary data in this report.

Questionnaire: Under this method a well-structured questionnaire is prepared covered all aspects with respect to the related topic. This may contain both open and close ended questions. The open-ended are those where the respondent are free to give their options. While in closeended the respondent has to answer the questions with in choice specify by the richer. By distributing it to the respondents the data is collected.

b) Observation: here observing the activities being performed by the organization collected data. Focus should be on the employees who are not satisfied and would leave the organization based on various reasons. Secondary data: the data that is already written and has gone through some prior statistical analysis. This data can be collected from various data banks, internet downloads, business periodicals, annual reports of the company etc.

As to meet the set objectives, the personnel manual has been use to get the information regarding the system and structures existing.

Browsed through several websites to gather further information and journal on HR have been studied to help in understanding the basic principle.

Sampling plan: sampling is the technique where a small sample would be considered and each of them would be considered as the universe. This method is used over the survey method because of its many advantages. In this project the size of the universe is around 70 out of which my sample size representing the universe was 50. The sampling method used was random method. It will be selected from the universe at random. The sample elements need not be related to each other. Sample unit: people belonging to all designation.

Sample size:

The sample size for the study is 100.

Sample technique: This technique used was simple random sampling.

Method of analysis:

A statistical technique used for the analysis of questionnaire in

percentile analysis and is represented with the use of tables and pie chart

CHAPTER-II
LITERATURE REVIEW

INTRODUCTION
Newspaper Circulation & Distribution A newspapers circulation is the number of copies it distributes on an average day. Newspaper circulation rates are currently experiencing a downward trend. Circulation is one of the principal factors used to set advertising rates. Circulation is not always the same as copies sold, often called paid circulation, since some newspapers are distributed without cost to the reader. Readership figures are usually higher than circulation figures because of the assumption that a typical copy of the newspaper is read by more than one person.

Problem Definition Process

To study the Distribution system of The New Indian Express newspaper and the process concerned before it reaches the customer Study of Distribution Process Distribution Process of The New Indian Express newspaper 1) The newspaper sales involve distributing highly perishable products under severe time constraints. 2) The printed newspapers have to be dispatched to various distributors across the region. Transportation is normally through private contract carriers within local area, public transport in case of longer distances and through couriers in other cases. 3) The newspaper distributor has the rights to distribute the newspaper in his area. The revenue of the newspaper distributor is based on a commission on the sale of every newspaper. The circulation is normally through salesmen appointed and salaried by the distributors, who in turn pass it on to hawkers.

4) Hawkers, vendors and book stall owners are the last link of the supply chain before newspaper reaches readers. The hawkers remuneration is also normally based on the commission system an generally the highest in the entire supply chain. 5) Responsiveness and efficiency play an important role in newspaper distribution channel. Responsiveness includes supply chain' stability to respond to wide a range of quantity demanded (due t o dem and fluctu at ions ) and m eet short l ead tim es. On t he ot her hand efficiency is the cost of making and delivering the newspaper to the reader.

1) Distribution of newspapers is based on number of drop points that area serves. In Bangalore The new Indian Express operates at 140 Drop points with each drop point being administrated and managed by respective Distributive Executives.

2) Number of Circulations differs for each Distribution drop point based on demand.

3) Distribution Process: Logistics: The newspapers were supplied to various points of sale were through delivery vans. Distribution point Segregation: The paper supplied in the vans are then collected and segregated in the distribution point *Distributor, Agents and Sub Agents Handling: The distributor supplies the segregated paper to the agents and then the agents to the sub agents. Hawkers: The hawker i.e.; t he mi ddl e men take t hese paper sand distribute to the houses with the help of newspaper boys. Household and Newspaper Mart: Newspaper supplied to the households is thorough hawkers and the newspaper mart gets paper straight from the agents or sub agents.

PRESENT SCENARIO OF NEWSPAPER INDUSTRY

The industry has achieved a point where the public feels that newspaper is must for the society and the welfare of the society and not for profits. The industry is affected by two main sections. The government and its working and paper industry through which it gets the necessary input resources i.e. the newsprint. The Government controls the price and quota of newsprint given to the respective newspaper organizations.

The competition both from other players in the market but also from the other media. The economic and social factors that affect the industry are the literary rate the per capita income, the average time spent on reading attitude of the public about particular newspaper. In the present day the industry is at a very slow growth with the individual organizations reaching maturity in their business life cycles. The newsprint produced in the country is costlier because of which most of newsprint is imported. Hence an increase or decrease in the import tariffs would also affect the newspaper industry. In order to study the present scenario of the NIE the activities of production, Finance, Human Resource and Marketing have been considered.

PRODUCTION PROCESS: The production of the newspaper is carried out at the greatest speed when all production stops at the most of the other industries. The hectic activity starts at about 9:30 PM and ends at 3:30 AM, Coordination play an important role in the newspaper industry. The various departments that co-ordinate in bringing out the product is as follows:

FINANCE DEPARTMENT: There are not much of activities with respect to finance that takes place. In the various units spread out in the state most of the decisions the executive who reside at the corporate. The NIE at Hyderabad was set up by the corporate officer with all the machinery and its structure. The price of the newspaper is less than the cost of its production. This gap is filled in for the revenue that the organization gets in the form of advertisements.

The agents collect the actual circulation revenue and submit to the marketing department. In turn it is passed over to the accounts department. Billing activities are carried out by the marketing department. Since the inflow of advertisements is seasonal and the profits are calculated yearly.

HUMAN RESOURCE: NIE unit at VSP has a work force of 96 of which 6 of them are in Management levels. The regular working staff is divided into clerical, Marketing and editing staff. The general working hours for the clerical staff is 9:30 AM to 5:00 PM. The editorial staff start their work at about 6:30 PM and finishes at about 3:00 AM the next day. There are about members in the NIE editorial section. The sales organization is headed by the sales manager (marketing). Under him are the circulation inspectors. They are two in number one sales officers. They are followed by the field sales promoters. The sales promoters are both promoters and temporary. There are about 10 sales promoters. The sales promoters work in teams. The average working hours per day is 5 hours. The sales promoters are two in number one as sales officer and other as asst sales officer, they are followed.

MARKETING DEPARTMENT: In this department they mainly concentrate on the Marketing Mix like the Product, Price, Place and Promotion.

PRODUCT: The product from the newspaper industry is the newspaper which in itself carries features like news, information, advertisements and entertainment. Each the paper covers these four important aspects in varying proportions. The NIE at Hyderabad publishes English newspaper.

PRICE:

The sales of any product are based on price compared to other factors it plays a major role in buying a product. The prices were reduced in paper industry in Oct 2000 when will India reduced its price to Rs. 1.50p with this all English newspapers, in the industry were forced to cut down their prices in order to survive in the competition. Even though the prices were reduced all the papers were maintaining the same number of pages and supplements for the same reduced price. With the reduction in prices all the papers circulation has also increased tremendously. When compared with last two decades, readership percentage increases abnormally within a time span of 5 months. Even though the company had spent lots of money on publicity earlier, growth percentage increased just above 10%. After the price slash, even without publicity, the market has seen a tremendous growth rate of 4000 in its circulation. In 1980 the price of the paper in weekdays was Rs.0.30p and for Sunday it is Rs.0.40p. In Jan 2000, price of the paper in weekdays is Rs.1.00 and for Sundays it is Rs2.50. From March these prices are increased to Rs.2.50 for weekdays and 3.00 for Sunday. After the reduction of price by Times of India, NIE this is also found in the survey that the circulation of the paper has increased because readers were subscribing only one paper before the press cut. After reducing the price people are subscribing for more than one paper.

PROMOTION: Newspaper is a media that promotes other business. Naturally it does not for excessive promotion of itself. NIE Hyderabad, promotion is done by marker into urban and rural semi-urban, market the sponsorship. In the rural areas the slides are used which are show in the theatres. The use of stockers are painting is also used for promotion.

CLASSIFICATION OF NEWSPAPER: Newspapers can be defined as a tangible media that is used in mass communication through which the receiver is made aware of the latest news, information and the related topic perceived as important by the editorial personnel of the newspaper. The newspapers

can be classified on the basis of ownership, on the basis of circulation, on the basis of frequency of editions, on the basis of subjects dealt.

LIMITATIONS OF NEWS PAPERS The market has to be literate and able to understand difficult

sentences. The subscription is a regular expense i.e. the customer has to pay for every month The time of delivery and its value becomes more as the day goes by. The price of the newspaper is less than the cost of production. Hot news cannot be given immediately and the readers have to wait till the next

morning. Effort has to be put in by the reader to read the news paper. The newspaper is geographically oriented. Journalism is not literature and is short lived. The interference of the press into the private lives of individuals, both high and low

is criticized. In places where here is no freedom of press the newspapers

becomes mere tools of the government.

INDUSTRY VISION STATEMENT Newspapers serve our democratic society by vigilantly protecting the peoples right to know. Newspapers are leaders in providing news, editorial comment, information and advertising. Newspapers will remain vital and sustain their vigilance by Investing energy and resources to strengthen their value to readers and advertisers Continuing to be the most comprehensive source of gathering, organizing and presenting news and information Pioneering businesses that anticipate and meet the changing needs and desires of consumers and marketers Attracting, retaining and advancing a talented, creative and diverse workforce.

VISION STATEMENT OF NEW INDIAN EXPRESS:

Create a Vibrant organization Perfect the functioning of all the parts Focus on the success of the whole company Release the enthusiasm of our people Tune-in to the live ends of the evolving society Convert every challenge into an opportunity

STATISTICAL INFORMATION OF NIE

Advertisement Revenue - 10 Cores per annum Circulation Turnover Turnover for 2008 Turnover for 2009 Turnover for 2010 - 3 lakhs per day in south - 12.5 Cores per month - 120 cores - 130 cores - 150 cores

Chapter-III
COMPANY PROFILE

INDUSTRY PROFILE
Indian Newspaper Industry Researchers have discovered a place where the newspaper, a threatened species in parts of the world, is thriving. In most parts of the world the age old newspaper industry is fighting a losing battle to the online news sources and in most parts surrendering to it. However, in India, home to 1.1 billion people, not only is the press in robust health, but its growing at an astonishing rate. From 2005 to 2006, nearly2,100 newspapers debuted in India, joining 60,000 circulating. India is a country with an expanding middle class and a booming economy, which have fuelled an explosion in consumer spending and advertising. The illiteracy rate though stubbornly high at an estimated 35 percent gradually is coming down. In New Delhi and Mumbai, about 80 percent of residents age 7 and older can read and write. Meanwhile, Internet penetration remains marginal, despite Indias reputations an information-technology powerhouse. Only a sliver of the population, mostly well-heeled urbanites, can afford home computers and high -speed Internet access. Helping newspaper circulation are newsstand prices that rarely exceed 3rupees a copy, the equivalent of about 7 cents. A vicious price war several years ago suppressed prices. But thanks in part to the surge in advertising, only four newspapers out of more than 60,000 ceased publication between 2005 and 2006, according to the official Registrar for Newspapers in India. With blogging coming in vogue, it has to be seen whether the Indian newspaper industry will reach a saturation point remains to be seen.

COMPANY
The New In di an Exp res s Group The Indian Express is an Indian newspaper owned by Ramnath Goenka started in 1931 by Chennai based Veradharajulu Naidu. After his death the group was split in 1999 a m o n g h i s f a m i l y m e m b e r s i n t o t w o w i t h t h e southern editions taking the name The New Indian Express, while the old Indian Express name was retained in the northern editions based in Mumbai with a prefix "The". It is published in all major Indian cities. It is a major and respected Indian newspaper with a worldwide circulation. The Indi an Express i s owned by t he Indi an Express Group wit h Vi vek Goenka as the Chairman and Managing Director. The group also owns other Newspapers in India such as the Financial Express, a newspaper focused on the Indian economy, stock markets, and fiscal policies. The group has other pub li cati ons s uch as S cr een wee kl y foc used on ent ert ai nm ent news, t he Marathilanguage daily Loksatta, and the Hindi daily Jansatta. The group also runs the Business Publication Division. This division publishes and prints out of its headquarters at Nariman Point in Mumbai a series of B2B magazines such as Express Computer, Express Travel World(formerly called Travel and Tourism), Express Pharma (formerly Express Pharma Pulse), Express Hospitality (formerly Express Hotelier & Caterer),t he IT -focu sed Net work Magaz ine, C IO Dec i si ons, Ex pres s Heal thcar e Management and the newly launched business magazine Express Channel Business. The Business Publications Division (BPD) has also ventured into organizing events and exhibitions such as Express World. The event is a mix of hospitality, t ra vel and hea lt hcar e. BP D also con duct s events on IT and organizes exhibitions for other parties. In September 2006, BPD's Express Travel W orld organiz ed t he exhi bit ion for Travel Agent s Associ ati on o f India (TAAI) 55th annual convention in Hyderabad. The Screen Awards, initiated by Ananya Goenka, is focused on films in India. The awards attempt to position themselves as India's first awards that are g i v e n by the film fraternity to

the film fraternity by way of a jury, as opposed to the other "popul ar" awards such as Film fare and Zee Ci ne Awards.

The New In di an Ex p res s News p aper The New Indian Express is a newspaper with its head office based in Chennai in south India. It was started in 1932 as the Indian Express, under the ownership of Chennai-based Veradharajulu Naidu. Fol low ing t he deat h of the t hen owner R am nat h Goenka in 199 1, t he Goenka's family split the group into two separate companies. The northern editions, headquartered in Mumbai, retained and renamed Indian Express into The Indian Express title, while the southern editions became The New Indian Express. The two newspapers used to share articles till early 2008but they are now very much different corpor ate entities. The newspaper is known for its intrepid and anti-establishment tone.

Editions: The New Indian Express is now published from all major cities in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala besides Orissa, including Chennai, Coimbatore, Hyderabad, Bangalore, Kochi and Bhubaneswar. In total, it publishes from 22 centers in the south. I t a l s o publishes city supplement known as Espresso which covers the local news of each city.

Supplements:

Its various supplements, which appear on a weekly or fortnightly basis, include pullouts on career and education called Edex. Also a special supplement for Saturday edition by name Zeitgeist is being published after its re launch in 2008. The Sunday magazines are i witness and I witness 2.

Pricing & Circulation:

The New Indian Express Newspaper is priced at 2 Rs/copy in weekdays and3 Rs/copy in weekends. It has a daily circulation of 6 lacs copies in different states of India

Major Competitors & Market Share:

The New Indian Express faces a competition from the other daily newspapers in the region in which the major players are The Times of India, The Hindu, Deccan Herald and Deccan Chronicle. The marketing strategies of The Times of India, Deccan Herald and Deccan Chronicle and the brand loyalty for The Hindu adds, and these were the serious issues to be considered. Considering the market share, The Times of India is the leader in the market followed by Hindu and Deccan Herald, The New Indian Express having the third position.

Chapter-IV
DATA ANALYSIS & INTERPRETATION

Table -1

Dealers relation with THE NEW INDIAN EXPRESS

Business experience <1 year Below 3years 3-6 years Above 6 years Total

Number of respondents 5 11 30 4 50

Percentage 10 22 60 8 100

Number of respondents

<1 year Below 3years 3-6 years Above 6 years

Inference:- 8% of the dealers have more than 6-years experience. 60% of the dealers have 3-6 years experience. Followed by 22% of the dealers having less than 3 years and 10% of the dealers have one year experience.

Table-2

Dealers feeling about Company Image

Dealers Opinion

Number of respondents

Percentage

Highly satisfied Satisfied Neutral Dissatisfied Others Total

15 30 5 0 0 50

30 60 10 0 0 100

Number of respondents

Highly satisfied Satisfied Neutral Dissatisfied Others

Inference:30% of the dealers falling highly satisfied about companied image and 60%of the dealers were feeling moderately satisfied, 10% of the dealers were feeling satisfied about companies image.

Table-3

To know on which aspects the customer gets more satisfaction

Dealers opinion Brand name Price Quality Usages Others Total

Number of respondents 6 2 38 4 0 50

Percentage 12 4 76 8 0 100

80 70 60 50 40 30 20 10 0 Brand name Price Quality Usages Others Number of respondents Percentage

Inference: Majority of the respondents are gibing fist preference to quality, second preference to brand name, then followed by product, usage and price.

Table-4

Stock out problems

Dealers opinion Frequently Rarely No Total

Number of respondents 0 5 45 50

Percentage 0 10 90 100

Number of respondents
Frequently 0% 10% Rarely No

90%

Inference: 90% of the dealers are getting satisfied with the supply of THE NEW INDIAN EXPRESS by expressing that they do not come across stock out problem.

Table-5 Dealer satisfaction on supply of NEWSPAPER

Dealers Opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total
60 50 40 30 20 10 0

No. of. Respondents 12 12 24 2 0 50

Percentage 24 24 48 4 0 100

No. of. Respondents Percentage

Inference: 48% of the dealers are satisfying by the supply and 24% moderately satisfying, 24% highly satisfied and 2% dissatisfied.

Table-6 Dealers satisfaction on in time deliveries

Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total

No. Of. Respondents 2 16 32 0 0 50

Percentage 4 32 64 0 0 100

Dissatisfied 0%

No. Of. Respondents


Highly satisfied 4%

Highly dissatisfied 0%

Moderately satisfied 32% Satisfied 64%

Inference:-The majority of the dealers are satisfied with the mode of dispatch by the company.

Table-7 Customers Awareness

Dealers opinion Advertisement Campaign Dealer Others Total

No. Of. Respondents 19 4 27 0 50

Percentage 38 8 54 0 100

60 50 40 30 20 10 0 No. Of. Respondents Percentage

Inference:The above table shows that 54% respondents are saying that dealers play majors in customers awareness about the product. And 38% of respondents are stating that advertisement is second highest promotional activity to create awareness in the minds of customer.

Table-8 Sales satisfaction

Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total

No. of. Respondents 9 11 30 0 0 50

Percentage 8 22 60 0 0 100

No. of. Respondents

Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied

Inference:60% of the dealers are satisfying the sale newspaper following 22% if the dealers moderately satisfied, 18% of the dealers were highly satisfied.

Table-9 Industry to stock point fright expenses percentage

Dealers opinion 2% 3% 4% 5% Total

No. Of. Respondents 30 10 8 2 50

Percentage 60 20 16 4 100

7000% 6000% 5000% 4000% 3000% 2000% 1000% 0% 1 2 3 4 Dealers opinion No. Of. Respondents Percentage

Inference: - The dealers are incurs very less fright charges representing 2%, to receive goods from company to your stock point.

Chapter-V
FINDINGS & SUGGESTIONS

FINDINGS

Majority of the dealers having 3 to 6 years experience, and less number of dealers having above 6 years experience. Majority of dealers just satisfied about the companys image, remaining are neutral, Highly satisfied. Majority of the customers satisfying about the quality of the product next preference given brand name followed by usages, price. The entire dealers were saying they do not face any difficulties to deal with the customers to selling the product. Majority of the dealers satisfying with the supply from the company and very few members satisfied, dissatisfied. Majority of the dealers satisfied with the mode of dispatch by the company. And few members were moderately satisfied, highly satisfied.

SUGGESTIONS

If possible increase the quality of the product and reduce the price.

Company and dealers should try to maintain customer good relationship as much as the possible.

Try to provide discounts to dealers and credit facilities.

Time to time delivery to customers.

To maintain good relation with customers.

Quality of newspaper must be increased.

To create awareness about the company, using of various ways of promotional activities such as advertisement, to maintain the better relation with dealers.

Questionnaire

Name of the shop

Date Ph No

: :

Name of the proprietor: District :

Signature:

_________________________________________________________________

1) How long have you been dealing with THE NEW INDIAN EXPRESS? a)<1year b)below 3 years c) 3 to 6 years d) above 6 years

2) How do you feel with this newspaper? a) Highly satisfied e) Others b) Satisfied c) Neutral d) Dissatisfied

3) According to you what makes customer more satisfaction with this newspaper? a) Brand name b) Price c) Quality d) Usages e) Others

4) Do you face any problems with delivery of newspaper? a) Frequently b) Rarely c) No

5) Are you satisfied with the supply from the company? a) Highly satisfied b) moderately satisfied c) Satisfied

d) Dissatisfied e) highly dissatisfied

6) In time delivery is very important for better serving the market. In this connection are you satisfied with the mode of dispatch by the company? a) Highly satisfied b) moderately satisfied c) Satisfied

d) Dissatisfied e) highly dissatisfied

7) According to you most of the customers are aware of THE NEW INDIAN EXPRESS through a) Advertisement d) Others b) Campaign c) Dealer

8) Do you satisfy with the NEW INDIAN EXPRESS? a) Highly satisfied b) moderately satisfied c) Satisfied

d) Dissatisfied e) Highly dissatisfied

9) At what percent are you satisfied with the commission of the company? a) 2% b) 3% c) 4% d) 5%

Bibliography BOOKS & AUTHORS Phillipkotler,2003Marketing Mgmt, T.M.H, New Delhi (12th EDITION)

Levin & Kirpatric, Quantitative Techniques For M.B.A, Tata McGraw Hill-1985

Websites: www.marketing.org www.estrategicmarketing.com www.marketingprofs.com www.btobonline.com Www.indianexpress.com Www.expressbuzz.com

You might also like