INDUSTRY ANALYSIS ON PRINT MEDIA

CONTENTS

Chapter 1. Introduction 2. Product ine! and con!u"er #eha$ior %. &ro'th o( the indu!tr) *. Techno o+) o( production and di!tri#ution ,. Mar-etin+ .. Inno$ation /. Strate+ie! and co"petition in the indu!tr) 0. 1u!ine!! en$iron"ent 2. Critica !ucce!! (actor! Appendice!

Chapter31

Introduction

INTRODUCTION O$er$ie' O( The Indu!tr) Printin+ i! a proce!! (or reproducin+ te4t and i"a+e5 t)pica ) 'ith in- on paper u!in+ a printin+ pre!!. It i! o(ten carried out a! a ar+e3!ca e indu!tria proce!!5 and i! an e!!entia part o( pu# i!hin+ and tran!action printin+. Indian print "edia i! one o( the ar+e!t print "edia in the 'or d. The hi!tor) o( it !tarted in 1/065 'ith the pu# ication o( the 1en+a &a7ette (ro" Ca cutta. 8a"e! Au+u!tu! 9ic-e) i! con!idered a! the :(ather o( Indian pre!!: a! he !tarted the (ir!t Indian ne'!paper (ro" Ca cutta5 the Ca cutta &enera Ad$erti!e or the 1en+a &a7ette in 8anuar)5 1/06. In 1/025 the (ir!t ne'!paper (ro" 1o"#a)5 the 1o"#a) 9era d appeared5 (o o'ed #) the 1o"#a) Courier ne4t )ear ;thi! ne'!paper 'a! ater a"a +a"ated 'ith the Ti"e! o( India in 10.1<. The (ir!t ne'!paper in an Indian an+ua+e 'a! the Sa"achar Darpan in 1en+a i. The (ir!t i!!ue o( thi! dai ) 'a! pu# i!hed (ro" the Sera"pore Mi!!ion Pre!! on Ma) 2%5 1010. In the !a"e )ear5 &an+a =i!hore 1hattachar)a !tarted pu# i!hin+ another ne'!paper in 1en+a i5 the 1en+a &a7etti. On 8u ) 15 1022 the (ir!t &u>arati ne'!paper the 1o"#a) Sa"achar 'a! pu# i!hed (ro" 1o"#a)5 'hich i! !ti e4tant. The (ir!t 9indi ne'!paper5 the Sa"achar Sudha ?ar!han #e+an in 10,*. Since then5 the pro"inent Indian an+ua+e! in 'hich paper! ha$e +ro'n o$er the )ear! are 9indi5 Marathi5 Ma a)a a"5 =annada5 Ta"i 5 Te u+u5 Urdu and 1en+a i. The Indian an+ua+e paper! ha$e ta-en o$er the En+ i!h pre!! a! per the ate!t NRS !ur$e) o( ne'!paper!. The "ain rea!on i! the "ar-etin+ !trate+) (o o'ed #) the re+iona paper!5 #e+innin+ 'ith Eenadu5 a Te u+u dai ) !tarted #) Ra"o>i Rao. The !econd rea!on i! the +ro'in+ iterac) rate. Increa!e in the iterac) rate ha! direct po!iti$e e((ect on the ri!e o( circu ation o( the re+iona paper!. The peop e are (ir!t educated in their "other ton+ue a! per their !tate in 'hich the) i$e (or e.+. !tudent! in Mahara!htra are co"pu !or) tau+ht Marathi an+ua+e and hence the)

are educated in their !tate an+ua+e and the (ir!t thin+ a iterate per!on doe! i! read paper! and +ain -no' ed+e and hence hi+her the iterac) rate in a !tate the !a e! o( the do"inatin+ re+iona paper in that !tate ri!e!. The ne4t rea!on i! oca i7ation o( ne'!. Indian re+iona paper! ha$e !e$era edition! (or a particu ar State (or co"p ete oca i7ation o( ne'! (or the reader to connect 'ith the paper. Ma a)a a Manora"a ha! a#out 16 edition! in =era a it!e ( and !i4 other! out!ide =era a. Thu! re+iona paper! ai" at pro$idin+ oca i!ed ne'! (or their reader!. E$en Ad$erti!er! !a' the hu+e potentia o( the re+iona paper "ar-et5 part ) due to their o'n re!earch and "ore due to the e((ort! o( the re+iona paper! to "a-e the ad$erti!er! a'are o( the hu+e "ar-et. The Indian Ne'!paper indu!tr) i! one o( the ar+e!t in the 'or d. It pu# i!he! the ar+e!t nu"#er o( paid3(or tit e! @2A in the 'or d. In 122/5 the tota nu"#er o( ne'!paper! and periodica ! pu# i!hed 'a! *1/6,5 'hich inc ude */26 dai ie! and 1*/*% 'ee- ie!. The hi+he!t nu"#er! o( ne'!paper! 'a! pu# i!hed in 9indi5 1.0.*. Ne'!paper! in India are "ea!ured on t'o para"eter!5 circu ation and reader!hip. Circu ation i! certi(ied #) the Audit 1ureau o( Circu ation! 'hich i! an indu!tr) #od). It audit! the paid3(or circu ation o( the "e"#er ne'!paper co"panie!. Sur$e) ;NRS<. Li!t o( p a)er! in the indu!tr) The Ti"e! o( India Daini- 8a+ran Ma a)a a Manora"a The 9indu Deccan Chronic e Ananda 1a7ar Patri-a A"ar U>a a Daini- 1ha!-ar 9indu!tan Ti"e! 9indu!tan Reader!hip i! e!ti"ated #) t'o di((erent !ur$e)!5 The Indian Reader!hip Sur$e) ;IRS< and the Nationa Reader!hip

Eenadu The Econo"ic ti"e! The Ne' Indian E4pre!! The Te e+raph Deccan 9era d

Cate+ori7ation o( p a)er! in the indu!tr) Cate+or) Dai ie! 1u!ine!! dai ie! Month ie! Re+iona Andhra Prade!hD Deccan Chronic e5 Andhra 1hoo"i5 9indi Mi ap De hiD 9indu!tan Ti"e!5 Pioneer Mahara!htraD 1o"#a) Mid3da)5 Lo-"at Ti"e!5 Sa-aa 5 Lo-!atta Bi " re ated Co"puter re ated Other! Ce!t 1en+a D The Te e+raph5 The State!"an Bi "(are5 Screen5 P anet 1o )'ood5 Indian E4pre!! 1o )'ood Scoop5 Apun =a Choice5 Indian Te e$i!ion5 Redi(India5 Bi " Trip5 Star Du!t PC Eue!t5 C)#er India5 Data Eue!t5 ?oice F Data5 Co"puter! Toda)5 E4pre!! Co"puter5 Si icon India The Onion5 India Toda) P u!5 De! Parde!5 India To+ether5 Teen! Toda)5 Andhra 8)othi in te u+u5 Co' 9)dera#ad5 Gee Pre"iere5 Sho'ti"e5 Arcade5 8AM5 India Ta -ie! P a)er! Deccan Chronic e5 The Ti"e! o( India5 The 9indu5 Aa> Ta-5 India A#road5 Deepi-a & o#a 5 A!ian A+e The Econo"ic Ti"e!5 The Binancia E4pre!!5 1u!ine!! Line5 1u!ine!! Standard

Cee- ie! and The Cee-5 Out oo-5 India Toda)5 A!ha -iran5 Panch>an)a 'ee- )

1rie( pro(i e o( p a)er! in the indu!tr) The Ti"e! o( India

The Ti"e! o( India ;TOI< i! a popu ar En+ i!h3 an+ua+e #road!heet dai ) ne'!paper in India. It ha! the 'ide!t circu ation a"on+ a En+ i!h3 an+ua+e dai ) ne'!paper! in the 'or d5 acro!! a (or"at! ;#road!heet5 co"pact5 1er iner and on ine<. It i! o'ned and "ana+ed #) 1ennett5 Co e"an F Co. Ltd. 'hich i! o'ned #) the Sahu 8ain (a"i ). In 26605 the ne'!paper reported that ;'ith a circu ation o( o$er %.1* "i ion< it 'a! certi(ied #) the Audit 1ureau o( Circu ation! a! the 'or dH! ar+e!t !e in+ En+ i!h3 an+ua+e dai ) ne'!paper5 p acin+ a! the 0th ar+e!t !e in+ ne'!paper in an) an+ua+e in the 'or d. Accordin+ to the Indian Reader!hip Sur$e) ;IRS< 26605 the Ti"e! o( India i! the "o!t 'ide ) read En+ i!h ne'!paper in India 'ith a reader!hip o( 1%.% "i ion. Thi! ran-! the Ti"e! o( India a! the top En+ i!h ne'!paper in India #) reader!hip. Accordin+ to COM Score5 TOI On ine i! the 'or dH! "o!t3$i!ited ne'!paper 'e#!ite 'ith 1,2 "i ion pa+e $ie'! in Ma) 26625 ahead o( the Ne' Yor- Ti"e!5 The Sun5 Ca!hin+ton Po!t5 Dai ) Mai and USA Toda) 'e#!ite!. The Ti"e! o( India i! pu# i!hed #) the "edia +roup 1ennett5 Co e"an F Co. Ltd. Thi! co"pan)5 a on+ 'ith it! other +roup co"panie!5 -no'n a! The Ti"e! &roup5 a !o pu# i!he! The Econo"ic Ti"e!5 Mu"#ai Mirror5 the Na$#harat Ti"e! ;a 9indi3 an+ua+e dai ) #road!heet<5 the Mahara!htra Ti"e! ;a Marathi3 an+ua+e dai ) #road!heet<. The Ti"e! i! !e (3dec ared a! a i#era ne'!paper5 and i! !o"eti"e! de!cri#ed a! irre$erent. The Ti"e! o( India i! printed (ro" the (o o'in+ p ace!D TOI pre!! are in Sahi#a#ad5 Ah"eda#ad5 1hu#ane!'ar5 1en+a uru5 1hopa 5 Chandi+arh5 Chennai5 De hi5 &oa5 &u'ahati5 9)dera#ad5 Indore5 8aipur5 =anpur5 =o -ata5 Luc-no'5 Man+a ore5 Mu"#ai5 M)!ore5 Na+pur5 Patna5 Pune5 Ranchi5 Surat. Tota A$era+e Circu ation (or 2660D %5*%%5666 copie! Supp e"ent! The Ti"e! o( India co"e! 'ith !e$era cit)3!peci(ic !upp e"ent!5 !uch a! De hi Ti"e!5 Ca cutta Ti"e!5 1o"#a) Ti"e!5 9)dera#ad Ti"e!5 =anpur Ti"e!5 Luc-no' Ti"e!5 Indore Ti"e!5 Na+pur Ti"e!5 1an+a ore Ti"e!5 Pune Ti"e!5 Ah"eda#ad Ti"e! and Chennai Ti"e!5 The Ti"e! o( South Mu"#ai5 The Ti"e! o( Doon5 Meerut P u!5 9arid'ar P u! 5 1hopa P u! . Other re+u ar !upp e"ent! inc udeD

Ti"e! Ce ne!! ;Saturda)!< I Ti"e! Ce ne!! (ocu!e! on !o ution! to hea th i!!ue! and +uidance to #etter i$in+ Education Ti"e! ;Monda)!< I Education Ti"e! cater! to the e$er3e4pandin+ !tudent co""unit) and earnin+ e4perience5 a! a career +uidance5 coun!e or and ad$i!er. Ti"e! A!cent ;Cedne!da)!< I Editoria o( Ti"e! A!cent5 Center! on hu"an re!ource de$e op"ent and the i"pact and i"p ication! on #u!ine!! and !ociet). GI& C9EELS I Gi+Chee !.co" i! an auto"oti$e 'e#!ite re$ie'in+5 di!cu!!in+5 (eature! and inter$ie'! on Indian $ehic e!. Ti"e! Li(e ;Sunda)!< I Ti"e! Li(e i! the !upp e"ent 'hich i! (eature dri$en ChatH! 9ot ;Brida)!< I Bocu! on ate!t happenin+!Je$ent!. Specia pa+e! created (or channe ! and detai ! o( pro+ra""e! Rou+e ;Saturda)!< I Concentrate! on 'o"enH! intere!t area!. Daini- 8a+ran Daini- 8a+ran i! the Cor d! Lar+e!t Read Ne'!paper and the Nu"#er One 9indi Ne'!paper in India. It i! the 'or dK! ar+e!t read ne'! paper and i! one the ar+e!t ne'!paper! in the 'or d. It 'a! the #rainchi d o( the a++re!!i$e (reedo" (i+hter Mr. Puranchandra &upta. The (ir!t edition 'a! aunched in 8han!i in 12*2 and in 12*/ Daini8a+ran !hi(ted it! headLuarter! to =anpur and thu! aunched it! !econd edition. In thi! ne'5 d)na"ic 'or d o( Indian "edia Daini- 8a+ran i! an iconic #rand. More than ,,./ "i ion peop e reach out (or Daini- 8a+ran "a-in+ it the ar+e!t read dai ) o( India. Daini- 8a+ranK! %/ edition! car$e a hu+e !'athe acro!! e e$en !tate! I Madh)a Prade!h ;1hopa 5 Indore5 &'a ior5 8a#a pur5 Rat a"5 Satna F Sau+or< a on+ 'ith the !tate! o( Uttar Prade!h5 Uttara-hand5 Pun>a#5 9ar)ana5 1ihar5 8har-hand5 9i"acha Prade!h5 De hi5 Ce!t 1en+a and 8a""u F =a!h"ir . So"e !upp e"ent! o((ered #) the Daini- 8a+aran areD 8han-aar5 Yatra5 San+ini5 8o!h5 Nai Rahein5 E 3 PAPER 8a+ran.co" ha! $ariou! channe ! on it! 'e#!ite (ocu!in+ on di((erent in(or"ation need! o( it! u!er!. On the 'e#!ite the ate!t ne'! in 9indi "ore than %6 ti"e! a da). In addition to ne'!5 the) a !o ha$e "ore than %6 other channe ! on their 'e#!ite inc udin+D

8unior 8a+ran 3 A co ored5 #i in+ua 5 'ee- ) ta# oid caterin+ to the ta!te o( the )oun+!ter! and teena+er! o( 1%I12 )ear! a+e +roup. =hana =ha7ana 3 A coo-er) channe tar+eted at hou!eho d 'o"en 'ho cheri!h coo-in+. 8a+ran YahooM =hana =ha7ana i! a co"p ete re!ource o( "u ti cui!ine recipe! and Luiccoo-in+ tip!. Channe Sa-hi 3 The Sa-hi i! a pre"iu" 'o"enK! channe tar+eted at up'ard ) "o#i e and out+oin+ 'o"en in the upper !ocio3econo"ic c a!!. The channe hi+h i+ht! the ro e o( 'o"en in "odern ti"e! and he p! the" in copin+ 'ith the out!ide 'or d. 8o!h 3 A "onth ) !upp e"ent o( >a+ran.co" 'hich i! concentratin+ on educationa content5 career re ated Luerie!5 per!ona it) de$e op"ent5 and update! on !cience and techno o+). Cine Ma7a3 A popu ar 1o )'ood ne'! and re$ie'! channe o( 8a+ran.co" +i$in+ in(or"ation on 1o )'ood5 top , re ea!e!5 1o4 o((ice hit!5 (act (i e! o( actor! and actre!!e! 'ith #io+raphie! and ate!t re ea!e!. The 9indu The 9indu i! a eadin+ En+ i!h3 an+ua+e Indian dai ) ne'!paper 'ith a circu ation o( 1.*, "i ion and i! the !econd3 ar+e!t circu ated dai ) En+ i!h ne'!paper in India a(ter Ti"e! o( India5 and ! i+ht ) ahead o( The Econo"ic Ti"e!. Accordin+ to the Indian Reader!hip Sur$e) ;IRS< 26605 The 9indu i! the third "o!t3'ide ) read En+ i!h ne'!paper in India ;a(ter Ti"e! o( India and 9indu!tan Ti"e!< 'ith a reader!hip o( ,.2 "i ion. It ha! it! ar+e!t #a!e o( circu ation in South India5 e!pecia ) Ta"i Nadu headLuartered at Chennai ;(or"er ) ca ed Madra!<. The 9indu 'a! pu# i!hed 'ee- ) 'hen it 'a! aunched in 10/05 and !tarted pu# i!hin+ dai ) in 1002. The 9indu #eca"e5 in 122,5 the (ir!t Indian ne'!paper to o((er an on ine edition. The 9indu i! pu# i!hed (ro" 1% ocation! 3 1an+a ore5 Chennai5 Coi"#atore5 De hi5 9)dera#ad5 =ochi5 =o -ata5 Madurai5 Man+a ore5 Thiru$ananthapura"5 Tiruchirapa i. Achie$e"ent! The 9indu ha! "an) (ir!t! in India to it! credit5 'hich inc ude the (o o'in+ 12*6 3 Bir!t to introduce co our

12.% 3 Bir!t to o'n ( eet o( aircra(t (or di!tri#ution 12.2 3 Bir!t to adopt (ac!i"i e !)!te" o( pa+e tran!"i!!ion 1206 3 Bir!t to u!e co"puter aided photo co"po!in+ 120. 3 Bir!t to u!e !ate ite (or (ac!i"i e tran!"i!!ion 122* 3 Bir!t to adopt 'ho ) co"puteri7ed inte+ration o( te4t and +raphic! in pa+e "a-e3 up and re"ote i"a+in+ 122, 3 Bir!t ne'!paper to +o on Internet 1222 3 1eco"e! India nationa ne'! paper Supp e"ent! and (eature! Monda)! 3 Metro P u!5 1u!ine!! Re$ie'5 Tue!da) 3 Youn+ Cor d5 Education5 1ooRe$ie'5 I"pro$e Your En+ i!h5 Cedne!da)! 3 8o# Opportunitie!5 Thur!da)! 3 Metro P u!5 Science5 En+ineerin+5 Techno o+) F A+ricu ture5 Brida) 3 Brida) Beature!5 Saturda) 3 Metro P u! Cee-end5 Sunda) 3 Cee- ) Ma+a7ine5 Open Pa+e5 Literar) Re$ie' Dai ) (eature! 3 Thi! da) that a+e5 Re i+ion5 The 9indu Cro!!'ord5 Sudo-u On ine pre!ence. The 9indu 'a! the (ir!t ne'!paper in India to ha$e a 'e#!ite5 aunched in 122,. Deccan Chronic e T)pe Bor"at O'ner Editor Bounded Lan+ua+e 9eadLuarter! Circu ation Ce#!ite Dai ) ne'!paper 1road!heet Deccan Chronic e 9o din+! Ltd. A T 8a)anti 12%0 En+ i!h 9)dera#ad5 India 15%*252,2 Dai ) '''.deccanchronic e.co"

The Deccan Chronic e i! a dai ) ne'!paper pu# i!hed throu+h the Andhra Prade!h5 =arnata-a and Ta"i Nadu !tate! o( India. It i! pu# i!hed in En+ i!h. The ne'!paperH! na"e deri$e! (ro" the ori+inatin+ p ace Deccan re+ion! o( India. Other !upp e"ent! #) it

16

are T? &uide5 Sunda) Chronic e5 Chennai and 1en+a uru Chronic e. It a !o !upp ie! other 'ee- ) (eature! i-e Schoo chronic e5 Teen Chronic e5 Sunda) chronic e5 etc. Eenadu Eenadu5 headLuartered in 9)dera#ad5 India5 i! the ar+e!t circu ated Te u+u ne'! dai ) in the !tate o( Andhra Prade!h. Accordin+ to NRS ;Nationa Reader!hip Studie!< 266, it ha! +ot a reader!hip o( 151%*5666 and i! the third "o!t circu ated re+iona an+ua+e dai ) and 16th "o!t circu ated dai ) in India. Eenadu ;"eanin+ :Toda): in Te u+u< 'a! (ounded #) the Indian "edia #aron Ra"o>i Rao in 12/*. It ha! p a)ed a ro e in either cro'nin+ or dethronin+ +o$ern"ent! in Andhra Prade!h. It ha! a !o !ucce!!(u ) adapted the ate!t pu# i!hin+ and co""unication techno o+ie! into the Te u+u an+ua+e. EenaduH! rapid e4pan!ion ena# ed di$er!i(ication o( it! port(o io #) $enturin+ into nu"erou! other "ar-et! !uch a! (inance and chit(und ;Mar+adar!i chit!<5 (ood! ;Pri)a Bood!<5 (i " production ;U!ha =iran Bi "!<5 (i " di!tri#ution ;Ma)uri Bi "!<5 and a +roup o( te e$i!ion channe ! ;ET?<. A the #u!ine!!e! are or+ani7ed under Ra"o>i &roup. 9i!tor) A! 'ith an) other pu# ication5 Eenadu too had it! !hare o( !tru++ e!. Chen aunched in ?i!ha-apatna"5 it 'a!nHt a# e to !e "ore than %5666 copie! a 'ee-. Eenadu (ound it!e ( !tru++ in+ to #eco"e a dai ) pu# ication ran-ed a"on+!t other popu ar ri$a pu# ication!. 1) 12/,5 Eenadu "ana+ed to achie$e it! tar+et o( #eco"in+ a dai ) pu# ication. 9o'e$er5 it 'a! popu ar in re+ion! and ri$a r) 'a! !ti an i!!ue. In a period 'here the co"pan) needed $i!ion to dri$e and e4pand it an) (urther. Eenadu hired a ne' !et o( director! to #e part o( it! -e) deci!ion and "ana+e"ent +roup 'hich dro$e it to'ard! 'hat it i! toda) #ein+ the top read5 hi+h ) circu ated ne'!paper. Mr. Ra"o>i raoH! +ro'th (ro" no 'here to e$er) 'here5 i! a"a7in+. 9i! na"e #eca"e a hou!eho d na"e. E$er) one in Andhra Prade!h -no'! Ra"o>i Rao. 9e i! an in!piration (or "an) )oun+ #u!ine!! peop e. Thou+h Eenadu i! a hi+h ) circu atin+ ne'! paper5 the) ha$e a hea th) co"petition 'ith other circu atin+ ne'! paper! ?aartha5Sa-!hi ;"a+a7ine<5 and Andhra 8)oti.

11

Daini- 1ha!-ar Daini- 1ha!-ar i! a 9indi3 an+ua+e dai ) ne'!paper o( India. It 'a! !tarted in )ear 12,0 (ro" 1hopa 5 the capita cit) o( Madh)a Prade!h. It! current editor i! Ra"e!h Chandra A+ra'a . Daini- 1ha!-ar i! pu# i!hed (ro" "an) citie! o( North and Centra IndiaD 1hopa 5 Indore5 Ne' De hi5 Luc-no'5 Na+pur5 A-o a5 Raipur5 &'a ior5 8a#a pur5 8aipur5 A>"er5 8a#a pur5 Satna5 ?arana!i5 Ahe"eda#ad. In &u>arat5 and Ce!tern Madh)a Prade!h the &u>arati ?er!ion o( the ne'!paper i! a !o pu# i!hed a! Di$)a 1ha!-ar. Daini- 1ha!-ar &roup pu# i!he! a $aried ran+e o( "a+a7ine he p(u in "an) 'a)!5 i-e HAha 7ind+iH a "a+a7ine #a!ed on hi+h i+htin+ the po!iti$e (eature! o( i(e. The co"pan) a !o run! En+ i!h ne'!paper DNA in partner!hip 'ith Gee &roup. 9i!tor) Daini- 1ha!-ar 'a! (ir!t pu# i!hed in 1hopa and &'a ior o( the centra pro$ince. The ne'!paper 'a! aunched in )ear 12,. to (u (i the need (or a 9indi an+ua+e dai )5 #) the na"e Su#ah Sa$ere in 1hopa and &ood Mornin+ India in &'a ior. Later in )ear 12,/5 it 'a! rena"ed a! Sa"achar =ranti5 and then a+ain in )ear 12,0 a! 1ha!-ar Sa"achar. Bina ) in )ear 12.65 it 'a! pu# i!hed a! Daini- 1ha!-ar. There 'ere on ) 166 print! o( the ne'! paper on the (ir!t da) o( it! pu# ication5 a (i+ure 'hich increa!ed #) .2,.. 'ithin a 'ee- and ro!e to o$er 2., "i ion print! dai ) in 2660.

Chapter32
12

Product Line! And Con!u"er 1eha$ior

PRODUCT LINES AND CONSUMER 1E9A?IOUR Co"p i"entar) and !u#!titute! product!

1%

Co"p i"entar) +ood (or print "edia i! ad$erti!e"ent! a! it +i$e! hi+h re$enue!. Su#!titute! (or print "edia are radio5 te e$i!ion5 e3paper!5 on ine ne'!paper5 door to door ca"pai+n!5 e4hi#ition5 and pa"ph et di!tri#ution. Product de!cription and ran+e o( product! Ne'!paper! u!e! co u"n o( $ar)in+ 'idth. So"e ha$e !i4 co u"n! per pa+e5 'hi e other! ha$e ei+ht or nine 'hich a((ect! the !i7e5 !hape5 and co!t! o( an ad. Ne'!paper !pace rate! $ar) 'ith an ad$erti!erK! !pecia reLue!t!5 !uch a! pre(erred po!ition or co or.

1*

Chapter3%

&ro'th O( The Indu!tr)

&ROCT9 OB T9E INDUSTRY

1,

Rate o( +ro'th5 pattern o( +ro'th5 +ro'th deter"inant! The Indian Media and entertain"ent indu!tr) !tood at R!,0* #n in 26605 a +ro'th o( 12.*N o$er the pre$iou! )ear. O$er the ne4t (i$e )ear!5 the indu!tr) i! pro>ected to +ro' at a CA&R ;co"pound annua +ro'th rate< o( 12.,N to reach the !i7e o( R!16,2 #n #) 261%5 !a)! a BICCI F =PM& report on the !ector re ea!e. The report ho'e$er5 hi+h i+ht! that the "ar-et en$iron"ent ha! #eco"e increa!in+ ) cha en+in+ (or the !ector5 on the #ac- o( econo"ic ! o'do'n and the con!eLuent ! o'do'n in ad$erti!in+ re$enue!5 e!pecia ) in the a!t Luarter o( 2660. Sector! i-e T?5 Print5 Radio and Outdoor 'hich depend on ad$erti!in+ re$enue! 'ere ar+e ) a((ected and thi! i! e!ti"ated to continue into the current )ear too. Ad$erti!in+ !pend! +re' at CA&R o( 1/.1N in the pa!t three )ear!. &oin+ (or'ard5 it i! e4pected to e4hi#it a ro#u!t +ro'th rate at CA&R o( 12.*N o$er the ne4t (i$e )ear!. Potentia up!ide! cou d ta-e thi! hi+her. &ro'in+ acceptance o( the di+ita T? di!tri#ution techno o+)5 entr) o( DT9 p a)er! the !ucce!! o( "an) !"a #ud+et "o$ie!5 and the ri!in+ co"petition in the re+iona "ar-et 'ere !o"e o( the -e) hi+h i+ht! o( the pre$iou! )ear. Ra>e!h 8ain5 9ead In(or"ation5 Co""unication F Entertain"ent5 =PM& India !aid5 OMedia co"panie! are under pre!!ure to chan+e5 inno$ate and re3e4a"ine their e4i!tin+ #u!ine!! "ode !. P a)er! need to dra' upon ne' capa#i itie! to !ur$i$e in thi! en$iron"ent. In the i""ediate (uture5 "edia corporate i! i-e ) to (ocu! "ore on operatin+ "ar+in!5 and a!!e!! opportunitie! (or con!o idation5 'hi e #ui din+ on core !tren+th!.P The pro>ected 12.,N +ro'th (or the !ector 'i #e dri$en on the #ac- o( (actor! i-e (a$ora# e de"o+raphic!5 !tron+ on+ ter" (unda"enta ! o( the Indian econo")5 e4pected ri!e in ad$erti!in+ to &DP ratio co"pared to de$e oped econo"ie! and increa!in+ "edia penetration. The (ocu! o( indu!tr) p a)er! too i! chan+in+Q 'ith a !tron+ e"pha!i! on pro(ita# e +ro'th in the current !cenario. 9ence5 "edia co"panie! are increa!in+ ) concentratin+ on !tren+thenin+ e4i!tin+ operation! and a!!e!!in+ option! (or +ro'th throu+h con!o idation5 'hi e continuin+ to inno$ate. Bactor! and Dere+u ation ha$e #eco"e the R#u77'ord!K in the indu!tr). i-e Narro'ca!tin+5 Re+iona i7ation5 Internationa i7ation5 Or+ani7ed Bundin+5 Di+iti7ation The Indian Print Media indu!tr) i! e!ti"ated to ha$e +ro'n #) /..N in 2660 and reachin+ around INR 1/2..

1.

#i ion in !i7e. The indu!tr) i! pro>ected to +ro' at a CA&R o( 2N o$er the ne4t (i$e )ear! and reach around INR 2.. #i ion in !i7e #) 261%. &ro'th in the Print "edia indu!tr) i! achie$a# e throu+h !u!tained +ro'th in ad$erti!e"ent re$enue! due to increa!ed ad$erti!in+ !pend! (ro" e"er+in+ !ector! !uch a! Education5 Or+ani7ed Retai and Te eco"5 i"pro$in+ iterac) e$e ! in the countr)5 opti"i7ation o( co$er price! eadin+ to i"pro$ed penetration and +ro'th in !a e! $o u"e5 "ore aunche! in the niche !e+"ent5 i-e ne'!paper !upp e"ent! and !pecia t) "a+a7ine!5 #) p a)er!. The indu!tr) need! to in$e!t in Lua it) i"pro$e"ent!5 e!pecia ) in re+iona "edia to attract ad$erti!er!Q co ecti$e ne+otiation! and #u - purcha!e o( ne'!print5 con!titute (oru"! to encoura+e and pro"ote re+u ar readin+ ha#it! a"on+ )outh5 adoptin+ inno$ati$e practice! i-e tradin+ "edia !pace in pu# ication p at(or"! in return (or eLuit) and i"pro$e or+ani7ationa a#i it) to attract and retain ta ent. The !tructure o( the Indian print "edia indu!tr) i! hi+h ) (ra+"ented 'ith i"portance to re+iona do"inance. The Indian print "edia !e+"ent pri"ari ) co"pri!e! ne'!paper and "a+a7ine pu# i!hin+.

A! per P'C report5 the print indu!tr) i! e4pected to +ro' (ro" R! 120 #n in 266. to R! 2%2 #n #) 26115 at 12..N CA&R. Chi e the ne'!paper indu!tr) i! e!ti"ated at R! 112 #n5 the "a+a7ine !e+"ent i! $a ued at R! 1. #n. Growth drivers Higher literacy levels: In 266.5 the iterac) e$e ! increa!ed to /1.1N a! co"pared to .2.2N in 266,. Chi e rura iterac) i! at .*.0N5 ur#an iterac) touched 0,.%N. Current ) Indian print "edia i! e!ti"ated to reach o$er 226 " peop e5 and ha! i""en!e +ro'th potentia !ince c o!e to %/6 " iterate Indian! are #e ie$ed to not #e !er$ed #) an)

1/

pu# ication. A !o5 the reach o( ne'!paper! i! on ) 2/N5 a! co"pared to the + o#a a$era+e o( ,6N. Lower cover prices: Ear ier5 due to !tron+ ho d o$er a re+ion5 the ne'!paper had hi+her co$er char+e!. 9o'e$er5 'ith increa!in+ co"petition and $enture into ne'er re+ion! the co"panie! ha$e reduced the co$er price! to au+"ent "ore !a e!. Man) En+ i!h dai ie! are !o d (or a! o' a! Re 1 or R! 2. The initia !u#!cription o((er! o( RDNAK and R9indu!tan Ti"e!K ;9T< in Mu"#ai5 durin+ their aunch period5 (urther reduced the co!t o( the ne'!paper to around ,6 pai!e (or an a$era+e i!!ue Higher ad spends: Print "edia account! (or *0N o( the tota R! 1%/., #n ad$erti!in+ !pend in the countr). 9o'e$er5 the ad !pend in India i! >u!t 6.*N o( &DP a! a+ain!t 6.,N in China5 1.%N in the US and a 'or d a$era+e o( near ) 1.6N. Cith ri!in+ con!u"eri!" and +ro'in+ intere!t (ro" do"e!tic and + o#a #rand! in Indian "ar-et5 the +ro'th in ad !e+"ent i! e4pected to #e !tron+. A! per the re+i!trar o( ne'!paper!5 there 'ere appro4i"ate ) .5,22 dai ) ne'!paper! a! o( March 266,. No !in+ e ne'!paper had a nationa circu ation. In 266.5 India had the !econd ar+e!t circu ation o( ne'!paper! 'ith 00.2 " copie! per da)Q !econd on ) to China 'ith 20./ " copie! a da). Urban & !ral "ase #op!lation $%& ' An) Pu# ication 10* 2%.. An) Dai ) 1/6 21.2 An) 9indi Dai ) .2.2 0.1 An) En+ i!h Dai ) 1/.* 2.2 An) Ma+a7ine ,0.2 /.. Urban $%& ' 22.2 *2.2 2%.0 %2.. %,.. 1, 1,.2 ../ %%.0 1*.% !ral $%& ' 0*.% 1,.. /... 1*.2 2/.% ,.1 1.. 6.% 2,.1 *..

Newspaper 8a+ran Pra-a!han Ti"e! o( India 9T Media Deccan Chronic e The 9indu

#lace o( strong hold Uttar Prade!h and Uttarancha Mu"#ai De hi5 1ihar5 8har-hand Andhra Prade!h Chennai

10

The Te e+raph Deccan 9era d Pun>a# -e!ari

=o -atta 1an+a ore Pun>a#

)rag%ented ind!stry The re+iona i!" a!pect i! c ear ) $i!i# e in the ne'!paper !ector. The print "edia i! (urther di$ided on the #a!i! o( the an+ua+e!. O( the dai ) ne'!paper!5 a#out *.N are $ernacu ar5 **N are in 9indi and 16N are En+ i!h. 9indi and $ernacu ar an+ua+e ne'!paper! o((er a oca and re+iona ( a$or to their reader!. The content and circu ation o( En+ i!h3 an+ua+e ne'!paper!5 on the other hand5 are ar+e ) (ocu!ed on the pri"ar) ur#an center!. Appro4i"ate ) /N o( the popu ation in ur#an area! read En+ i!h3 an+ua+e ne'!paper!5 co"pared to a reader!hip o( on ) 6.%N o( the popu ation in the rura area!. ;SourceD IRS 266,< In contra!t to thi!5 9indi3 an+ua+e ne'!paper! ha$e a proportionate ) ar+er reader!hip in rura area!5 in addition to their !tron+ pre!ence in ur#an area!5 'ith a reader!hip o( appro4i"ate ) 1,N and ,N o( per!on! in ur#an and rura area!5 re!pecti$e ). The ne'!paper indu!tr) i! re+iona ) di$ided5 'ith e4i!tin+ p a)er! en>o)in+ !tron+ #rand o)a t). Bor e.+. Ti"e! o( India (o o'! !tron+ #rand o)a t) in Mu"#ai and it 'a! di((icu t (or 9indu!tan Ti"e! to enter Mu"#ai. The ne'!paper indu!tr) ha! re ati$e ) hi+h entr) #arrier! due to the !tron+ #rand eLuit) o( e4i!tin+ p a)er!. A !o5 e4i!tin+ p a)er! ha$e !tron+ contro o$er the di!tri#ution net'or-5 "a-in+ it di((icu t (or ne' p a)er! to enter. *ttracting (oreign invest%ent Mo!t Indian print p a)er! continued to do"inate the oca re+ion! and did not enter ne' territorie!5 "ain ) due to ac- o( (und!. 9o'e$er5 (orei+n in$e!t"ent re+u ation! 'ere re a4ed in 2662. Current )5 up to 2.N (orei+n direct in$e!t"ent ;BDI< i! per"itted in ne'!paper! and periodica ! dea in+ 'ith ne'! and current a((air!. In non3ne'! pu# ication!5 166N (orei+n in$e!t"ent i! per"itted. Since the chan+e! in the re+u ation

12

"an) (orei+n in$e!tor! ha$e ta-en !trate+ic !ta-e! in the do"e!tic print "edia co"panie!. Going (orward A #oo"in+ Indian econo")5 iterate popu ation on the ri!e5 increa!in+ con!u"eri!"5 entr) o( + o#a #rand! in the countr) and openin+ o( the !ector to (orei+n in$e!tor! 'ou d dri$e the +ro'th in print "edia. A !o5 'ith ne'!paper co"panie! enterin+ into ne'er re+ion! and !e+"ent! 'ou d ead to !tron+er +ro'th.

Chapter3*

26

Techno o+) O( Production And Di!tri#ution

TEC9NOLO&Y OB PRODUCTION AND DISTRI1UTION Co!t !tructure The nature o( the ne'!paper indu!tr)H! co!t !tructure i! cau!in+ the (ie dH! current 'oe! and 'i reLuire tran!(or"ation in order to reduce (i4ed co!t! #) out!ourcin+ printin+. The current co!t !tructure ea$e! re$enue +eneration !ector! 'e under (unded 'ith content creation and ad$erti!in+ !a e! recei$in+ >u!t 1* percent and 1. percent o( the ca!h operatin+ co!t! re!pecti$e ). On the other hand5 /6 percent o( co!t! are de$oted to print di!tri#ution and corporate e4penditure. A! re$enue (ro" ad$erti!in+ continue! to dec ine the ar+e co!t o( out!ourcin+ printin+ i! cau!in+ hu+e ca!h ( o' pro# e"! (or ne'!paper!.

21

More recapita i7ation and c o!ure! are i""inent un e!! ne'!paper! can #e+in to #etter "oneti7e di+ita content and cut !tructura co!t! to ri$a increa!ed co"petition in the ne'! indu!tr). Print "edia indu!tr) de!perate ) need! to increa!e their co$er price5 #ut the on ) rea!on (or pe++in+ the co!t at S16N o( the co!t o( production i! due to the (ear that no one 'i #u) the" #ecau!e ri$a paper! "a) #eco"e cheaper. 9ence5 the) are hea$i ) dependent on ad$erti!in+ to ta-e care o( co!t! and +enerate re$enue. Recent )5 "an) ne'!paper! re$i!ed co$er price!. 9indu!tan5 Daini- 8a+ran and A"ar U>a a rai!ed their co$er price in Meerut and Dehradun to R! % (ro" R! 2.,6. Si"i ar )5 in 1ihar and 8har-hand5 Daini8a+ran5 Pra#hat =ha#ar and 9indu!tan rai!ed their co$er price #) ,6 pai!e to R! *. The co$er price o( 9indi dai ie! in UP and Uttara-hand are e4pected to +o up to R! %.,6 and tho!e in Ra>a!than to R! %. En+ i!h dai ie!5 too5 ha$e rai!ed their co$er price in "an) "ar-et!5 thou+h De hi !ee"! to #e una((ected a! o( no' #ut (or The 9indu 'hich rai!ed the price (ro" R! 2.,6 to R! %. The econo"ic do'nturn appear! to ha$e ta-en a !e$ere to on the Indian print "edia indu!tr). ItH! # eedin+5 +i$en the condition! acro!! a p at(or"!. Cith dippin+ Ad re$enue! due to the ! o'do'n and hi+h co!t !tructure5 the print "edia indu!tr) 'i continue to (ace pre!!ure (or the ne4t t'o to three Luarter!. La)o((! and !a ar) cut! "a) #eco"e a nece!!it) (or "an) #u!ine!!e! to !ur$i$e a! the) ha$e added !u#!tantia ) to their capacitie!. Ad$erti!in+ and Circu ation Re$enue There are t'o #a!ic !ource! o( re$enue (or the ne'!paper!D 1. Ad$erti!in+. 2. Circu ation. The circu ation re$enue reco$er! on ) a part o( the co!t o( producin+ a ne'!paper. The #onu! o( "a-in+ a pro(it a(ter a co!t! i! on the ad$erti!in+ re$enue. I( circu ation (a !5 ad$erti!er! !h) a'a) (ro" u!in+ the "ediu". On the other hand increa!e! in circu ation to ta-e re( ect on ad re$enue ta-e! ti"e. Ne'!print account (or a#out /6N o( the co!t o( production5 #ut an) increa!e in circu ation doe! not decrea!e per unit co!t. A !o an) "ar+ina increa!e in ad$erti!e"ent re$enue due to increa!e in circu ation i! not apparent in the !hort run.

22

The print "edia indu!tr) 'i continue to (ace pre!!ure (or the ne4t t'o to three Luarter!5 a! per the ana )!t!. La)o((! and !a ar) cut! "a) #eco"e a nece!!it) (or "an) #u!ine!!e! to !ur$i$e a! the) ha$e added !u#!tantia ) to their capacitie!. Re ie( on ne'!print co!tDue to the current econo"ic ! o'do'n i"pactin+ the print "edia indu!tr)5 the &o$ern"ent ha! announced !pecia cu!to"! dut) e4e"ption! (or the ne'!paper F "a+a7ine pu# i!hin+ indu!tr). Ti no'5 a cu!to" dut) o( %N 'a! app ica# e on ne'!print and ,N on i+ht'ei+ht coated paper. A !pecia additiona dut) o( * per cent 'a! a !o e$ied5 'hich ha! no' #een 'ai$ed. Ne'!print price!5 'hich con!titute "ore than /6N o( the co!t o( producin+ a ne'!paper5 !hot up a!t )ear #) around .63.,N. The conce!!ion! announced #) the Binance Mini!tr) inc udeD T Bu e4e"ption in cu!to"! dut) on ne'!print and + a7ed ne'!print u!ed (or printin+ ne'!paper! T Bu e4e"ption in cu!to"! dut) on i+ht'ei+ht coated paper u!ed (or printin+ "a+a7ine!. The!e e4e"ption! 'i reduce the price #urden to !o"e e4tent and !o too the reduction in i"ported ne'!print price! (ro" it! pea-. T In(or"ation and 1roadca!tin+ "ini!tr) ca"e to the re!cue o( !"a and "ediu" ne'!paper! #) announcin+ a re$i!ed po ic) o( re ea!in+ &o$ern"ent ad$erti!e"ent!. T It increa!ed the ad$erti!e"ent Luota o( the Directorate o( Audio ?i!ua Pu# icit) ;DA?P< (or !"a paper! (ro" 16N to 1,N and (or "ediu" ne'!paper! (ro" %6N to %,N. Under the ne' po ic)5 %, per cent o( DA?P ad$erti!e"ent! in rupee ter"! 'i #e +i$en to re+iona and other an+ua+e ne'!paper! a+ain!t the e4i!tin+ i"it o( %6N. T Under the ne' po ic)5 a DA?P rate!. Econo"ie! o( !ca e and econo"ie! o( !cope A !ur$i$or ana )!i! (or dai ) ne'!paper! (ro" 12.* to 1201 indicate! that paper! 'ith ,5666 or e!! circu ation are 'itherin+ a'a)5 'hi e paper! in the 16656663,665666 "ini!trie!5 depart"ent! and !u#ordinate o((ice! o( the &o$ern"ent o( India can i!!ue tender notice! direct ) to e"pane ed ne'!paper! at

2%

circu ation !i7e ran+e are e!! i-e ) to ha$e +ained oca or nationa "ar-et !hare5 once intercit) !hi(t! in de"o+raphic $aria# e! are con!ideredQ no !tati!tica ) !i+ni(icant increa!e in the di!tri#ution o( (ir"! in the!e ran+e! i! e$ident. On the other hand5 the 16566631665666 circu ation !i7e c a!!e! ha$e e4perienced !u#!tantia increa!e! in the nu"#er o( (ir"! and in "ar-et !hare. The increa!ed nu"#er o( (ir"! in the!e c a!!e! repre!ent! a !tati!tica ) !i+ni(icant !hi(t in the !i7e di!tri#ution o( (ir"!5 and the o+3odd! ratio o( increa!ed nationa or oca "ar-et !hare (or e4i!tin+ paper! in thi! !i7e ran+e !u#!tantia ) e4ceed! that (or paper! in the 16656613,665666 !i7e c a!!e!. Bina )5 the ,665666 p u! circu ation !i7e c a!! ha! e4perienced an increa!e in "ar-et !hare and an increa!e in the nu"#er o( (ir"!. Chi e the !hi(t in the !i7e di!tri#ution o( (ir"! i! not !i+ni(icant5 the o+ odd! ratio o( increa!ed nationa and oca "ar-et !hare i! +reate!t (or thi! !i7e c a!!. E4cept (or the $er) ar+e!t c a!!5 the!e re!u t! are con!i!tent 'ith the con>ecture that the ne' techno o+) o( dai ) ne'!paper! ha! reduced (ir!t cop) co!t! and o'ered the "ini"u" e((icient !ca e. Thi! conc u!ion i! #uttre!!ed #) the per(or"ance o( (ir"! in the 1656663 1665666 circu ation !i7e ran+e in #oth nationa and oca "ar-et!5 and ta-in+ intercit) !hi(t! in de"o+raphic (actor! into account. Moreo$er5 the !econd !"a e!t !i7e cate+or)5 ,5661 3 1656665 'hi e not e4periencin+ a !tati!tica ) !i+ni(icant increa!e in the nu"#er o( (ir"!5 did de"on!trate a hi+h o+ odd! ratio o( increa!ed "ar-et !hare 'hen de"o+raphic $aria# e! are inc uded in the ana )!i!. The per(or"ance o( the ,665666 p u! circu ation !i7e c a!! i! di((icu t to interpret. The econo"ie! o( !cope increa!e! 'ith increa!e in nu"#er o( ad$erti!er! 'here the) +et hi+h return and in turn he p in reduction in co!t o( the ne'!paper a! the proce!!e! uti i7e the !a"e re!ource!. ?a ue added5 o+i!tic! and a#or The $a ue added (or ne'!paper! and "a+a7ine! are ad$erti!er! and reader! 'ho are capa# e o( attractin+ hi+her re$enue! or addin+ to it! di((erentiation. The $a ue added ad$erti!e"ent! are co""ercia ad!5 (e!ti$a 'i!he!5 #irthda) 'i!he! and anni$er!arie!. Co"petiti$e ad$anta+e #) identi()in+ i!!ue! and pro$idin+ (a!t re!o ution! or action! re ated toD

2*

aw #aper +nventory, Rea 3ti"e $i!i#i it) o( paper in$entor) in 'arehou!e!5 trac-

in$entor) co!t and a$ai a#i it) and e$a uate o( ri!-!J'hat3i(3ana )!i! and their i"pact on in$entor). T #aper #roc!re%ent, Opti"i7e p annin+5 !upp ier !hort i!t5 and price ne+otiation5 'ith on3de"and in(or"ation a#out pa!t per(or"ance5 co!t!5 and the current !tate o( a$ai a# e paper and de"and. T #aper -!ality and )a!lts, A ert and in(or"ed a#out (au t! !uch a! tearin+ and "i!!3 print! durin+ !et.up and production. Match (au t! to paper t)pe5 +rade5 ro and !upp ier. T Se waste/de(ect paper, Identi() opportunitie! and trac- "etric! re ated to !e in+ 'a!te paper ;e.+. (or rec)c in+<. T #rod!ction #er(or%ance, Trac- printer!K production acti$it) #) (aci it)5 !hi(t5 printer and t)pe o( paper. Identi() (au t) paper5 hu"an error!5 production Lua it) and e((icienc). Toda) the di!tri#ution in print "edia indu!tr) i! $ie'ed a! a $a ue added or anci ar) !er$ice. Anci ar) !er$ice! ha$e #een identi(ied a cha en+e in printin+ indu!tr) (or +ro'th opportunit). Di!tri#ution i! a cu!to"er !er$ice o((erin+ that !tart! 'hen the >o# i! !chedu ed. E((icient di!tri#ution in$o $e! the u!e o( "ar-et e4perti!e to ne+otiate (rei+ht rate and o+i!tic! !er$ice!5 routin+5 and o$era co"pi ation or "ana+e"ent and or+ani7ation o( product! and di!tri#ution. Other a!pect! o( di!tri#ution inc ude 'arehou!in+5 !hippin+5 in$entor) "ana+e"ent5 (u (i "ent and -it pac-in+. Ne'!paper! reLuire uniLue de(inition o( their product5 in(or"ation5 and (inancia ( o'! to #e adapted to !upp ) chain and other Luanti(ia# e "ana+e"ent pro+ra"!. The pri"ar) !upp ) chain ( o' (or ne'!paper! i! the out#ound product ( o' and it! a!!ociated in(or"ation ( o'. Ne'!paper! ha$e !ucce!!(u ) !eparated !u#!cri#er and ad$erti!er ca!h ( o' ti"in+ (ro" product de i$er). A! !uch5 a (inancia ( o'! 'ithin the ne'!paper !upp ) chain are either di!cretionar) ;ho' "uch ne'!print and in- in$entor) i! carried<5 or direct co!t! re!u tin+ (ro" the !upp ) chain in p ace. The pri%ary co%ponents a((ecting the total s!pply chain cost (or a newspaper are: T In#ound In(or"ationD ad$erti!in+5 ne'!5 editoria 5 pa+ination T Pre!! Operation!D p ate "a-in+ throu+h pre!!in+ T Pac-a+in+ Operation!D hand in+5 in!ertion5 !tora+e5 pac-a+e de!i+n F ( o'

2,

T Di!tri#ution Operation!D tran!port "ode5 ti"in+5 ocation!5 and hand in+.

1a ancin+ ti"e and 'or-( o' acro!! the !upp ) chain 'i )ie d the ar+e!t re!u t!. A d)na"ic co!t and proce!! ( o' "ode o( the ne'!paper !upp ) chain 'i #e e!!entia in -eepin+ pace 'ith chan+in+ need! and de"and! 'ithin the ne'!paper indu!tr). 2.

In print "edia indu!tr) the a#or "ar-et i! hi+h ) !-i ed. Nu"#er o( e"p o)ee! i! the !o e #a!i! o( the indu!tr). S-i ed a#or! reLuired are pre!! operator5 in(or"ation !)!te" ana )!t5 9R5 reporter5 >ourna i!t5 editor5 i#rarian5 !a e! !uper$i!or5 pro"otion "ana+er5 pu# i!her5 +enera "ana+er5 'e# "ana+er.

Chapter3,

Mar-etin+

2/

Mar-etin+ Mar-et !e+"entation5 "ar-etin+ !trate+ie!5 "ar-etin+ practice! and "ar-etin+ concept! !peci(ic to the indu!tr). The print "edia indu!tr) ha! o' entr) and e4it #arrier!. 9o'e$er5 there i! inten!e co"petition (or "ar-et !hare in the indu!tr). Man) p a)er! are 'e e!ta# i!hed in their re!pecti$e re+ion! and it i! di((icu t (or ne' p a)er! to penetrate the "ar-et. The "ar-et (or print "edia can #e !e+"ented #a!ed on +eo+raph)5 de"o+raphic! and p!)cho+raphic!. Man) p a)er! u!ed techno o+) and "ar-etin+ !trate+ie! to e"er+e a! + o#a +iant!. In India5 the print "edia indu!tr) i! in the +ro'th pha!e. There are a (e' 'e 3e!ta# i!hed p a)er! in the indu!tr)5 'ith each p a)er con!tant ) tr)in+ to increa!e it! "ar-et do"inance. The deci!ion o( the Indian +o$ern"ent to a o' 2.N BDI in Indian print "edia ha! recei$ed "i4ed re!pon!e (ro" "edia hou!e!. So"e p a)er! !tron+ ) oppo!ed the "o$e 'hi e other! 'e co"ed it. Pro"otin+5 ad$erti!in+5 and "ar-etin+ product! or !er$ice! are the "o!t #a!ic 'a)! to dru" up ne' #u!ine!!. 1ut it !hou d co"e a! no !urpri!e that the $a!t pro i(eration o( "edia !een !ince circa. 2666 ha! #een 'rea-in+ ha$oc 'ith traditiona approache! to "ar-etin+ and pro"otion. A partia i!t o( the "edia a$ai a# e to "ar-eter! inc ude!5 #ut i! not i"ited toD

print direct "ai 20

print cata o+! print ad$erti!in+ ;"a+a7ine!5 ne'!paper!< Ce# !ite! Ce# ad$erti!in+ ;#anner! and other ad!< e3"ai direct "ai Je3 etter! !earch en+ine "ar-etin+ ;!pon!ored in-! on &oo+ e5 e.+.< #roadca!tJ!ate ite radio #roadca!tJca# eJ!ate ite T? #i #oard!Jpo!ter!Joutdoor ad$erti!in+ point o( !a eJpoint o( purcha!e di!p a)! 'ord o( "outhJ!o3ca ed O$ira P "ar-etin+ co"puter de!-top O'a paperP ad$erti!in+ on "o#i e phone!Jother porta# e de$ice! rin+ tone! (or "o#i e phone! # o+! !ocia net'or-in+ !ite! ; i-e M)Space< on ine $ideo ; i-e You Tu#e< in3+a"e ad$erti!in+ ;(or $ideo+a"e!< And on and on and onU

Part o( the "ar-etin+ pro# e" i! that5 than-! to ine4pen!i$e e ectronic! and di!p a) techno o+ie!5 a "o!t an) !ur(ace can #e a "ar-etin+ $ehic e. A(ter a 5 con!u"er! are a'a!h in ad$erti!in+ and "ar-etin+ "e!!a+e!5 'hich a inter"in+ e! to create a den!e 'a o( #ac-+round noi!e. The Indu!tr) Mea!ure ha! conducted e4ten!i$e re!earch into "edia channe ! and the 'a)! in 'hich tho!e channe ! are chan+in+. In a recent !ur$e) o( ad a+encie!5 (or e4a"p e5 it 'a! (ound thatD

/6N o( ad a+encie! current ) u!e print direct "ai ;not $aria# e< to "ar-et and pro"ote their and their c ient!K !er$ice! or product!Q ,2N current ) u!e Ce# ad$erti!in+ ;#anner!5 rich "edia5 etc.<Q *,N current ) u!e outdoorJdi!p a) ad$erti!in+ ;!i+n!5 po!ter!5 ( eet +raphic!<Q and *,N a !o current ) u!e #roadca!t radio.

22

OLe!! i"portantP !hou dnKt #e con!trued a! "eanin+ Ouni"portant.P In toda)K! "edia "i45 OitK! a +ood.P At the !a"e ti"e5 !o"e ad$erti!er! and "ar-eter! are >u"pin+ onto 'hate$er ne' "ediu" co"e! do'n the pi-e5 (ear(u perhap! o( "i!!in+ out on the One4t #i+ thin+.P Chi e ne' "edia are i"portant to the o$era "edia "i45 o der e!ta# i!hed "edia are o(ten !ti the "o!t e((ecti$e. Thi! i! 'h) a >udiciou! co"#ination o( "edia i! the #e!t approach. There are certain +uide ine! "ar-eter! can ta-e to en!ure that their "edia rupee! are not !pent in $ain. Bir!t5 identi() the tar+et audience and thin- care(u ) a#out the #e!t "ediu"J"edia to reach the". Di((erent de"o+raphic +roup! ;a+e5 +ender5 inco"e5 e$en +eo+raphica ocation< ha$e di((erent "edia ha#it!. Print "a) not #e the #e!t 'a) to reach certain +roup!5 'hi e the Internet "a) not #e the #e!t 'a) to reach certain other +roup!. Second5 co"#ine "edia. Re )in+ on >u!t a print direct "ai ca"pai+n "a) +arner !o"e ne' #u!ine!!5 #ut co"#inin+ that 'ith a direct e3"ai # a!t5 an outdoor ad$erti!in+ ca"pai+n5 radio !pot!5 or !o"e other co"#ination o( "edia 'i a'arene!!. Third5 to -eep the ad$erti!in+ "e!!a+e and de!i+n e e"ent! con!i!tent acro!! "edia. U!in+ the !a"e o+o and o+o co or!5 the !a"e (ont!5 the !a"e ta+ ine phra!in+5 the !a"e or !i"i ar te4t5 etc.5 in a )our "edia per"utation!. Thi! he p! 'ith #randin+ and rein(orcin+ the "e!!a+e. At the !a"e ti"e5 the adoption o( Ode!i+n3once3reu!e3"an)P !trate+) he p! !a$e co!t! on de!i+n and et! )ou +et "ore O#an+ (or )our #uc-.P In print "edia indu!tr)5 ne'!paper! and "a+a7ine! are di((icu t to u!e (or direct "ar-etin+ #ecau!e the ad! ha$e to co"pete 'ith the c utter o( other ad! and #ecau!e the !pace i! re ati$e ) e4pen!i$e5 re!pon!e rate! and pro(it! "a) #e o'er than in other "edia. he p #ui d #rand

%6

Chapter3.

Inno$ation

%1

Inno$ation T)pe! o( inno$ation5 concept! o( inno$ation re e$ant to the indu!tr)5 !ource o( inno$ation5 rate o( inno$ation and econo"ie! o( !ca e. T)pe! o( inno$ation

The Concept! in inno$ation re e$ant to the indu!tr) are di!rupti$e inno$ation5 proce!! inno$ation5 #u!ine!! "ode inno$ation.

%2

The ne'!paper indu!tr) i! +oin+ throu+h a :di!rupti$e: chan+e5 a pheno"enon that ha! tran!(or"ed indu!trie! !uch a! retai in+5 co"putin+5 air ine! and auto"o#i e!. The #ad ne'! i! that 'hen the du!t o( di!rupti$e chan+e !ett e!5 hi!torica ) e$en the #e!t3run co"panie! t)pica ) end up in the o!erH! co u"n. Di!rupti$e inno$ation! t)pica ) o((er o'er per(or"ance a on+ di"en!ion! that (ir"! con!ider critica . In e4chan+e5 ne' #ene(it! are introduced a on+ di"en!ion! !uch a! !i"p icit)5 con$enience5 ea!e o( u!e5 or o' price. In the "edia indu!tr)5 # o+!5 &oo+ e5 e1a)5 Mon!ter.co"5 and (ree ) di!tri#uted co""uter paper! each (it the pattern o( di!rupti$e inno$ation. Each e"er+in+ co"petitor ac-! !o"ethin+ that i! core to "o!t ne'!paper co"panie!H $a ue propo!ition. So"e canHt "atch a ne'!paperH! #road di!tri#ution net'or-. Other! canHt co"pete 'ith the ne'!paperH! detai ed reportin+ capa#i it) or oca reach. A 5 ho'e$er5 co"pete a on+ di"en!ion! o( per(or"ance that are di((erent than the traditiona "etric! e"pha!i7ed in the print ne'!paper #u!ine!!. Three #arrier! t)pica ) "a-e it di((icu t (or "ar-et3 eadin+ incu"#ent! to +et di!ruption ri+htD 1. )ail to spot the disr!ptive change early eno!gh: Di!rupti$e chan+e tend! to

!tart innocent ) at a "ar-etH! (rin+e!. Mar-et eader! tend to di!"i!! ear ) di!rupti$e de$e op"ent! #ecau!e the) >u!t donHt a((ect their core #u!ine!!. 2. )ail to allocate s!((icient reso!rces towards disr!ptive o((erings: Di!rupti$e inno$ation! o(ten ha$e o'er per(or"ance and o'er price! than e!ta# i!hed o((erin+!. Co"panie! (ind it hard to prioriti7e !pendin+ ti"e and "one) on di!ruption 'hen the) ha$e !ee"in+ ) attracti$e opportunitie! in their core #u!ine!!. %. )orce the disr!ptive initiative into the e0isting b!siness %odel and prod!ct

concept Mo!t ne'!paper co"panie! !ti (ocu! a di!proportionate !hare o( ti"e and attention on their print product. Chi e not i+norin+ that product5 a ocatin+ "ore re!ource! to'ard! ne' di!rupti$e product! "a-e! !en!e. It !ee"! c ear that ne'!paper co"panie! "u!t re3 i"a+ine their content and #u!ine!! "ode ! i( the) hope to !ucceed. De!pite the !en!e o( doo" and + oo" that per$ade! the indu!tr) toda)5 there are !i+n! o( hope. Chi e ne'!paper reader!hip i! dec inin+5 in(or"ation con!u"ption i! increa!in+. A "o!t e$er)

%%

ne'!paper co"pan) ha! "ade the tran!ition to the Ce#5 'ith their propertie! attractin+ ne' audience! and ne' ad$erti!er!. In (act5 the interacti$e nature o( the Ce# a o'! (or'ard3thin-in+ co"panie! to co"p ete ) chan+e the 'a) the) interact 'ith reader! and ad$erti!er!. Reader! can #eco"e content creator! and co""unit) #ui der!. Ce# !ite! can !er$e ad$erti!er! that 'ou d e!che' the !tatic nature o( print. Additiona )5 co"panie! are e4peri"entin+ 'ith ne' approache!. Do7en! o( co"panie! ha$e aunched (ree paper! tar+eted at )oun+ reader! or recent i""i+rant!. Ne'!paper co"panie! !hou d oo- at their oca "ar-et to identi() >o#! that peop e canHt +et done 'e toda). The) !hou d thin- o( the +reat a!!et! the) ha$e at their di!po!a V top3( i+ht >ourna i!t!5 !tron+ #rand!5 in3depth oca -no' ed+e5 hea th) #a ance !heet! V and thin- ho' the) cou d recon!titute tho!e a!!et! to addre!! i"portant5 un!ati!(ied >o#!. The Co!t di"en!ion in "edia product inno$ation reLuire! a "edia or+ani7ation to o#tain a co!t ad$anta+e throu+h product inno$ation5 thu! enhancin+ the pro#a#i it) a "edia product i! cho!en. The ?a ue Ana )!i! Mode !ee! Oco!tP a! the O(ee incurred in a productK! i(e circ eP. The co!t ad$anta+e the "edia product inno$ation 'ant to rea i7e inc ude o' "edia con!u"er co!t and o' "edia product co!t. 9o'e$er5 under the u!ua circu"!tance!5 the a#o$e3"entioned t'o co!t! are in a 7ero3!u" re ation 33 A decrea!e o( one o( the" 'i ine$ita# ) cau!e an increa!e in the other. &i$en that5 #e(ore "edia co!t inno$ation can #e rea i7ed5 t'o Lue!tion! need to #e tac- edD 9o' to cut "edia con!u"er co!t5 and ho' to cut "edia product co!t thu! cau!ed. Media Product Co!t i! c o!e ) re ated to the earnin+ cur$e5 e4perience cur$e5 !ca e econo")5 econo") o( !cope and inno$ation "ethod. Thi! i! #ecau!eD Bir!t )5 a! a "edia or+ani7ation +ain! e4perience in it! tar+eted "ar-et5 it! pinpointin+ !-i ! 'i increa!e and thu! can #etter !ati!() the "edia u!er!K need!. Increa!ed tar+etin+ !-i ! 'i con!eLuent ) reduce the redundanc) in the content it produce! and increa!e the e((icienc) a! a "edia u!er (u (i ! it! need! 'hi e u!in+ the content in a +i$en ti"e !pan. A! the content redundanc) i! cut5 the "edia can o((er "ore !pace (or ad$erti!e"ent!5 and the "ediaK! attraction to ad! increa!e! accordin+ ). Mean'hi e5 increa!ed accurac) in in(or"ation co ection and proce!!in+ 'i +reat ) cut re!ource! con!u"ed #) the reportin+ and editin+ tea". Thi! deduce! the tota operation co!t o( the "edia or+ani7ation. A! 'e can !ee5 a "edia product inno$ation

%*

#a!ed on co ecti$e inte ect ;core co"petence< can cut the co!t it pa)! in earnin+ and e4perience. Second )5 a! the !ca e e4pand!5 the "edia product 'i !ee a co!t cut5 accordin+ to the !ca e econo") theor). 1ut e!!entia ) an in( uence econo")5 the "edia econo") +enera ) operate! at a o!! at the ear ) !ta+e. E4pandin+ the !ca e in a (ree rein 'i $er) i-e ) i"po$eri!h the "edia or+ani7ationQ there(ore5 'hat it need! i! a re ati$e !ca e ad$anta+e rather than an a#!o ute one. So in the "edia product inno$ation proce!!5 the "edia or+ani7ation !hou d tr) to o#tain a re ati$e ) e((icient !ca e at a ti"e !pe !horte!t po!!i# e 'hi e decrea!in+ the po!!i#i it) o( an ine((icient !ca e5 e4ertin+ a co!t contro in #oth a!pect!. 1ei>in+ Ti"e!5 (or e4a"p e5 aunched at a $er) o' ne'!!tand price5 #ut atter increa!ed it three ti"e! 'ithin one )ear o( the aunch in order to cut co!t in the "o!t. Third )5 accordin+ to the econo") o( !cope5 a "edia product inno$ation !hou d #e conducted 'ithin a #u!ine!! !cope 'here a coordination5 "utua !upport and re!ource! !harin+ are po!!i# e and e((icient. On ) 'hen thi! condition i! "et can a co!t cut #e rea i7ed5 other'i!e the !o3ca ed di!econo"ie! o( !cope 'i appear. There(ore5 a "edia product inno$ation !hou d #e carried out on the #a!i! o( a "edia or+ani7ationK! core re!ource! and center on co"petence !tren+thenin+. The o$era +oa o( the inno$ation i! to rea i7e "edia e4pan!ion at a o' co!t. Bourth )5 the "edia product inno$ation enco"pa!!e! independent inno$ation5 e"u ation inno$ation and cooperati$e inno$ation5 'ith each o( the" ha$in+ a di((erent co!t3!a$in+ a#i it). A"on+ the three5 independent inno$ation i! "o!t e4pen!i$e5 'hi e the atter t'o are "ore co!t3e((icient5 i"itati$e inno$ation in particu ar. So5 co!t3centered "edia product inno$ation tend! to adopt the i"itati$e inno$ation approach or e$en a co"p ete i"itation in order to re(or" the "edia product ine. In thi! approach5 to #e co!t3!a$in+5 the core product a "edia or+ani7ation o((er! !hou d #e uni(or" 'ith that o( it! co"petitorK!5 #ut can #e $er) inno$ati$e in it! outer appearance and other #ene(it! it o((er!. U!in+ thi! approach5 the con!u"er co!t i! tran!(erred5 and a! 'ho e the product i(e c)c e co!t i! reduced5 and it! $a ue increa!ed. In !u""ar)5 e((ort! in the (our a!pect! di!cu!!ed a#o$e can5 throu+h reor+ani7in+ it! production e e"ent!5 he p a "edia or+ani7ation o#tain hi+her production e((icienc) and cut "edia product unit co!t5 thu! o#tainin+ a !u!taina# e co"petition ad$anta+e. An

%,

e4a"ination o( the ne'!paper co"petition in Nan>in+ in 1222 !ho'! the co!t inno$ation #) !o"e o( the co"petin+ ne'!paper! in the cit) 'a! !ti on the (ir!t a!pect5 and (e' 'ere on the !econd a!pect. There(ore5 thin-in+ a#out "edia co"petition a! "ere ) a co"petition o( O#urnin+ "one)P5 to cut the "edia u!er! co!t 'hi e i+norin+ "edia product inno$ation i! too nai$e and detri"enta #oth to a "ediaK! +ro'th and the nurture o( it! a 3around a#i it).

Chapter3/

Strate+ie! And Co"petition In The Indu!tr)

%.

Strate+ie! and co"petition in the indu!tr) Strate+ie! u!ed in the indu!tr)5 PorterK! +eneric !trate+ie! "ode 5 porterK! (i$e (orce! "ode and ana )!i! u!in+ it5 e e"ent o( indu!tr) !tructure5 porterK! $a ue chain "ode ana )!i!5 !'ot ana )!i!5 concept o( +eneric $a ue chain5 concept o( +ro'th !hare "ar-et "atri45 co"pan) po!ition . The pricin+ o( ad !pace in ne'!paper! ha! a 'a)! #een tric-). In India5 the En+ i!h dai ie! are !een a! pre"iu" and the ad !pace in the!e i! !o d to c ient!5 that are into hi+h end product! and hence the ad !pace! in En+ i!h dai ie! a 'a)! !e ! at a pre"iu". To under!tand the!e (actor! 'hich a((ect the pricin+ !trate+ie! o( dai ie! and #und e! o( dai ie! "ode ! 'ere created durin+ the cour!e o( the !tud) #a!ed on rate card! o( Indian ne'!paper!. The "ode de$e oped to identi() pricin+ !trate+) o( dai ie! u!ed circu ation5 !i7e o( the ad and the ocation o( the ad on the ne'!paper a! !o"e o( the -e) (actor! o( deter"ination. The "ode 'a! de$e oped #) re+re!!in+ ad rate! 'ith the a#o$e "entioned (actor!. 1rand i"a+e5 dup ication o( reader!hip and area o( circu ation 'ere !o"e o( the additiona (actor! that 'ere con!idered 'hi e de$e opin+ a "ode (or the pricin+ o( #und ed !er$ice!. Since the!e $aria# e! 'ere Lua itati$e5 du"") $aria# e! 'ere a!!i+ned and re+re!!ion o( the!e "u ti $aria# e! 'a! done u!in+ SPSS. The "ode ! de$e oped he ped in identi()in+ the inten!it) o( i"pact o( each (actor on ad rate! and the di!count! o((ered. 1ut on a practica ca!e5 the i"pact deduced 'a! on a !"a er !ca e. It 'a! (ound5

%/

throu+h inter$ie'!5 that c ient re ation!hip actua ) p a)! a -e) ro e than the a#o$e "entioned (actor!. Thu! the e"pirica "ode de$e oped he ped identi() the corre ation #et'een the (actor! "entioned and the ad rate! and the #a!e rate on 'hich a the!e (actor! are app ied depend! in per!ona re ation!hip #et'een the pu# i!her and the ad$erti!er. SCOT Ana )!i! ST ENGHT Supp ) create! it! o'n de"and. 9i+h de+ree o( "ar-et co$era+e. Ser$ice and ( e4i#i it). Re$enue increa!e! 'ith increa!e in nu"#er o( ad$erti!e"ent!. Product! can ea!i ) #e rec)c ed. 1E*2NESS S-i ed a#or Short i(e !pan o( the product. Circu ation. O##O TUN+T3 Di+ita !pace techno o+). Inno$ation &ro'in+ "a!! "edia ?a ue addin+ On ine ne'!paper! TH E*T Econo"ic do'nturn. Con!u"er "i+ration to T? "edia. Radio

%0

PorterK! +eneric !trate+ie! "ode &eneric !trate+ie! 'ere u!ed initia ) in the ear ) 1206!5 and !ee" to #e e$en "ore popu ar toda). The) out ine the three "ain !trate+ic option! open to or+ani7ation that 'i!h to achie$e a !u!taina# e co"petiti$e ad$anta+e.

The +eneric !trate+ie! areD 1. Co!t eader!hip5 2. Di((erentiation5 and %. Bocu! 1. Co!t eader!hip In the ca!e o( "edia product!5 "ean! the) !hou d #e o((ered at a price o'er than their co"petitor!K #ut 'ith a! +ood #ene(it!5 or5 the uniLue #ene(it! the "edia product! o((er can o$er3o((!et the pre"iu". 2. Di((erentiation Di((erentiation in "edia re(er! to 'hen a "edia or+ani7ation pro$ide! uniLue #ene(it! to the "edia u!er! throu+h product inno$ation. Thi! i! to increa!e the pro#a#i it) o( the "edia u!er! to choo!e the product. A "edia or+ani7ation 'ith a tar+et u!er o)a t) can concentrate "ore on ho' to (u ) "eet the tar+et u!erK! need! rather than on product co!t !a$in+. %. Bocu! Bocu! !trate+) i! a !o -no'n a! a HnicheH !trate+). The c utter o( ad! ha! no' !pi ed out on the nu"#er o( channe a$ai a#i it) due to 'hich peop e are !poi t (or choice. Thu! Niche channe ! are the on ) 'a) to "aintain $ie'er o)a t). So"e pre"iu"3#randed ne'!paper!5 a #it i-e The Sunda) Ti"e! i! "ore niche3orientated. PorterK! (i$e (orce "ode

%2

The (i$e (orce! 'hich one "u!t con!ider to ana )7e an) indu!tr) are the ri$a r) #et'een the (ir"! 'ithin the indu!tr) #ein+ ana )7ed5 the #ar+ainin+ po'er o( #u)er!5 the #ar+ainin+ po'er o( !upp ier!5 the threat o( !u#!titute product! or !er$ice!5 and the threat o( ne' entrant! ;a !o -no'n a! #arrier! to entr)<. The) are a !o !ho'n in the dia+ra" #e o'. Initia ) propounded #) 9ar$ard 1u!ine!! Schoo Pro(e!!or Michae Porter5 the Bi$e Borce! (ra"e'or- ha! #een accepted a! a !trate+ic (ra"e'or- 'hich one can app ) to ana )7e an) indu!tr).

LetH! con!ider ri$a r) 'ithin the indu!tr) (ir!t. It i! co""on !en!e to a!!u"e that i( the ri$a r) i! inten!e5 a$era+e pro(ita#i it) 'i reduce. In other 'ord!5 to increa!e pro(ita#i it)5 (ir"! 'ithin an indu!tr) "a) ha$e to coordinate (or co ecti$e +ood. Bor e4a"p e5 i( the (ir"! 'ant to a$oid co!t ) price 'ar! 'hich 'i u ti"ate ) reduce pro(it! (or a (ir"!5 (ir"! need to coordinate. 9o'e$er5 thi! i! ea!ier !aid than done. BreLuent )5 *6

in an indu!tr) co"pri!in+ o( (ir"! ar+e and !"a 5 !"a er (ir"! tend to o'er price! to increa!e "ar-et !hare5 and u ti"ate ) ar+er (ir"! (o o'. 1ar+ainin+ po'er o( !upp ier! and cu!to"er! a 'a)! need! to #e con!idered5 'hi e ana )7in+ an) indu!tr). The threat o( !u#!titute! i! i"portant 'hi e ana )7in+ an indu!tr). Current )5 'ith the on! au+ht o( the Internet5 traditiona "edia i-e print and T? are under attac-. On ine ad$erti!er! i-e &oo+ e and YahooM5 t'o 'e -no'n Internet co"panie!5 are en!urin+ that "ore and "ore ad$erti!in+ "o$e to the Cor d Cide Ce#5 at the co!t o( print and T? ad$erti!in+. In !hort5 the Internet and the "o#i e Internet ha$e e"er+ed a! rea !u#!titute! to readin+ ne'!paper! and "a+a7ine! and 'atchin+ T?. Concept o( +eneric $a ue chain

A $a ue chain i! a chain o( acti$itie! (or a (ir" operatin+ in a !peci(ic indu!tr). The #u!ine!! unit i! the appropriate e$e (or con!truction a $a ue chain5 not the di$i!iona e$e or corporate e$e . Product! pa!! throu+h a acti$itie! o( the chain in order and at each acti$it) the product +ain! !o"e $a ue. The chain o( acti$itie! +i$e! the product! "ore added $a ue than the !u" o( added $a ue! o( a acti$itie!. It i! i"portant not to "i4 the concept o( the $a ue chain 'ith the co!t! occurrin+ throu+hout the acti$itie!. The $a ue chain cate+ori7e! the +eneric $a ue 3addin+ acti$itie! o( an or+ani7ation. The :pri"ar) acti$itie!: inc udeD in#ound o+i!tic!5 operation! ;production<5 out#ound o+i!tic!5 "ar-etin+ and !a e! ;de"and<5 and !er$ice! ;"aintenance<. The :!upport

*1

acti$itie!:

inc udeD

ad"ini!trati$e

in(ra!tructure

"ana+e"ent5

hu"an

re!ource

"ana+e"ent5 techno o+) ;RFD<5 and procure"ent. The co!t! and $a ue dri$er! are identi(ied (or each $a ue acti$it). The $a ue chain (ra"e'or- Luic- ) "ade it! 'a) to the (ore(ront o( "ana+e"ent thou+ht a! a po'er(u ana )!i! too (or !trate+ic p annin+. Concept o( +ro'th !hare "atri4 ;1C& "ode < A !o ca ed the 1C& Matri45 it pro$ide! a u!e(u 'a) o( oo-in+ at the opportunitie!5 and he p! ana )7e 'hich !e+"ent! o( the #u!ine!! are in a +ood po!ition I and 'hich one! arenKt. That 'a)5 one can decide on the "o!t appropriate in$e!t"ent !trate+) (or the #u!ine!! in the (uture5 and 'here #e!t to a ocate the re!ource!. Mar-et !hare i! the percenta+e o( the tota "ar-et that i! #ein+ !er$iced #) the co"pan)5 "ea!ured either in re$enue ter"! or unit $o u"e ter"!. The hi+her the "ar-et !hare5 the hi+her proportion o( the "ar-et one can contro . The 1o!ton Matri4 a!!u"e! that i( one en>o) a hi+h "ar-et !hare the) 'i nor"a ) #e "a-in+ "one) ;thi! a!!u"ption i! #a!ed on the idea that )ou 'i ha$e #een in the "ar-et on+ enou+h to ha$e earned ho' to #e pro(ita# e5 and 'i #e en>o)in+ !ca e econo"ie! that +i$e )ou an ad$anta+e<. The 1o!ton Matri4 cate+ori7e! opportunitie! into (our +roup!5 !ho'n on a4e! o( Mar-et &ro'th and Mar-et ShareD

The!e are #e o'D

+roup! e4p ained

4ogs: Low 5ar6et Share / Low 5ar6et Growth

*2

In the!e area!5 "ar-et pre!ence i! 'ea-5 !o itH! +oin+ to ta-e a ot o( hard 'or- to +et noticed. A !o5 one 'onHt en>o) the !ca e econo"ie! o( the ar+er p a)er!5 !o itH! +oin+ to #e di((icu t to "a-e a pro(it. Cash Cows: High 5ar6et Share / Low 5ar6et Growth 9ere5 the) are 'e 3e!ta# i!hed5 !o itH! ea!) to +et attention and e4p oit ne' opportunitie!. 9o'e$er itH! on ) 'orth e4pendin+ a certain a"ount o( e((ort5 #ecau!e the "ar-et i!nHt +ro'in+ and opportunitie! are i"ited. Stars: High 5ar6et Share / High 5ar6et Growth 9ere the) are 'e 3e!ta# i!hed5 and +ro'th i! e4citin+M The!e are (anta!tic opportunitie!5 and one !hou d 'or- hard to rea i7e the". -!estion 5ar6s $#roble% Child&: Low 5ar6et Share / High 5ar6et Growth The!e are the opportunitie! no one -no'! 'hat to do 'ith. The) arenHt +eneratin+ "uch re$enue ri+ht no' #ecau!e the) donHt ha$e a ar+e "ar-et !hare. 1ut5 the) are in hi+h +ro'th "ar-et! !o the potentia to "a-e "one) i! there. Eue!tion Mar-! "i+ht #eco"e Star! and e$entua Ca!h Co'!5 #ut the) cou d >u!t a! ea!i ) a#!or# e((ort 'ith itt e return. The!e opportunitie! need !eriou! thou+ht a! to 'hether increa!ed in$e!t"ent i! 'arranted.

*%

Chapter30

1u!ine!! En$iron"ent

**

1u!ine!! En$iron"ent PESTEL Mode Po itica (actor To under!tand "edia5 'e need to under!tand the po itica en$iron"ent in 'hich the) operate. The "edia indu!tr) "a) not 'ant +o$ern"ent re+u ation in !o"e "atter!5 #ut in thi! ca!e it certain ) doe! 'ant +o$ern"ent inter$ention. The +o$ern"entK! protection o( cop)ri+ht i! crucia to the continued (unctionin+ o( the "edia indu!tr). Cithout +o$ern"ent en(orce"ent o( cop)ri+ht a'!5 the (or3pro(it "edia indu!tr) 'ou d #e una# e to !ur$i$e. Thu!5 the re ation!hip #et'een +o$ern"ent and "edia i! "ore co"p e4 than a !i"p e O(reedo" o( the pre!!P ! o+an "i+ht !u++e!t. To "a-e !en!e o( it5 'e "u!t under!tand the con!titutiona notion o( O(reedo" o( the pre!!P in hi!torica conte4t. Econo"ic (actor Bor "o!t o( the 26th Centur)5 ne'!paper! 'ere the pri"ar) !ource o( in(or"ation (or the pu# ic. Chether the !u#>ect 'a! !port!5 (inance5 or po itic!5 ne'!paper! rei+ned !upre"e. 8u!t a! i"portant5 their ad! 'ere the ea!ie!t 'a) to (ind >o# opportunitie! or to earn the price o( +rocerie! at )our to'nH! !uper"ar-et!. The +reat "a>orit) o( (a"i ie! there(ore (e t the need (or a paper e$er) da)5 #ut under!tanda# ) "o!t didnHt 'i!h to pa) (or t'o. Ad$erti!er! pre(erred the paper 'ith the "o!t circu ation5 and reader! tended to 'ant the paper 'ith the "o!t ad! and ne'! pa+e!. Thu!5 'hen t'o or "ore paper! e4i!ted in a "a>or cit) ;'hich 'a! a "o!t uni$er!a ) the ca!e a centur) a+o<5 the one that pu ed ahead u!ua ) e"er+ed a! the !tand3a one 'inner. A(ter co"petition di!appeared5 the paperH! pricin+ po'er in #oth ad$erti!in+ and circu ation 'a! un ea!hed. T)pica )5 rate! (or #oth ad$erti!er! and reader! 'ou d #e rai!ed annua ) I and the pro(it! ro ed in. Bor o'ner! thi! 'a! econo"ic hea$en. Socia (actor!

*,

Socia (actor! in( uence peop eH! choice! and inc ude the #e ie(!5 $a ue! and attitude! o( !ociet). So under!tandin+ chan+e! in thi! area can #e crucia . Such chan+e! can i"pact purcha!in+ #eha$ior. Con!u"er attitude i! $er) i"portant !ocia (actor. Techno o+ica (actor Techno o+) i! increa!in+ ) co"petin+ 'ith print "edia #) openin+ acce!! to end e!! !ource! o( ne'!. It "a) no' !ee" that the need o( the reader to #u) a ne'!paper (or ne'! and the need o( the ad$erti!er to ad$erti!e in it i! ! o' ) recedin+. Thu! it i! (or the ne'!paper! to oo- at e"er+in+ option! and to re'or- their traditiona !ource! o( re$enue. En$iron"enta (actor Ne'!paper! (ace !i+ni(icant cha en+e! on the #ac- o( econo"ic ! o'do'n and the con!eLuent ! o'do'n in ad$erti!in+ re$enue!5 e!pecia ) in the a!t Luarter o( 2660. Print "edia indu!tr) ha! to adapt to a (a!t3"o$in+ en$iron"ent and p a)er! need to dra' upon ne' capa#i itie! to !ur$i$e in thi! en$iron"ent. Le+a (actor A! a "ea!ure o( po ic) i#era i7ation5 &o$ern"ent ha! a o'ed Indian edition o( (orei+n ne'! "a+a7ine! (or (aci itatin+ 'ider reader!hip at a((orda# e price!. A !o5 &o$ern"ent ha! recent ) announced (ac!i"i e edition o( internationa ne'! paper! to #e #rou+ht to #e India. &o$ern"ent ha! re$ie'ed the print ad$erti!e"ent po ic) and #rou+ht a#out chan+e! to !upport !"a and "ediu" ne'!paper!. A! per that po ic)5 ad$erti!e"ent !upport ha! #een increa!ed (ro" 16N to 1,N (or S"a ne'!paper! and (ro" %6 to %,N (or Mediu" ne'!paper!5 in "one) ter"!. Mini"u" pu# ication period reLuire"ent dra!tica ) reduced (ro" %. "onth! to . "onth! (or re+iona an+ua+e! ne'!paper!.

*.

Chapter32

Critica Succe!! Bactor!

*/

Critica !ucce!! (actor! 1. Content Niche channe ! are the on ) 'a) to di((erentiate content and ha$e a capti$e audience. The c utter o( ad! ha! no' !pi ed out on the nu"#er o( p a)er! due to 'hich peop e are !poi t (or choice. Thu! Niche channe ! are the on ) 'a) to "aintain readerK! o)a t). 2. Con!u"eri!" Increa!ed con!u"eri!" and Mu tip ication o( p a)er! i! eadin+ co"panie! to increa!e their ad !pend to create #rand reca . Thi! in return "ean! "ore re$enue! (or the "edia co"panie! (ue in+ (urther +ro'th. %. Pricin+ Price! in India 'hether it i! (or ca# e connection5 (i " tic-et! or ne'!paper! re"ain one o( the o'e!t in the 'or d thou+h hu+e $o u"e! co"pen!ate (or o' price!. Cith increa!ed purcha!in+ po'er o( the India ur#an c a!! a! 'e a! the rura peop e5 and the e4penda# e inco"e5 price! 'i increa!e 'ith increa!e in choice. *. Re+u ation! Print ha! a read) opened (or BDI ran+in+ (ro" 2.N to 166N eLuit) !ta-e. Cith "ore and "ore p a)er! >u"pin+ on the #and'a+on5 e$en (or a#road5 the re+u ation! 'i #e re a4ed and the indu!tr) 'i #e a "uch #i++er one. ,. Techno o+) U!e o( techno o+) (or !pecia e((ect!5 ani"ation and other creati$e 'or- eadin+ to #etter Lua it) o( "edia product!. Di+ita techno o+) i! increa!in+ ) co"petin+ 'ith print "edia #) openin+ acce!! to end e!! !ource! o( ne'!. It "a) no' !ee" that the need o( the

*0

reader to #u) a ne'!paper (or ne'! and the need o( the ad$erti!er to ad$erti!e in it i! ! o' ) recedin+. Thu! it i! (or the ne'!paper! to oo- at e"er+in+ option! and to re'ortheir traditiona !ource! o( re$enue.

Appendice!

*2

Appendice!

SH* E O) *47E T+SE5ENT +N 4+))E ENT 5E4+U5: MEDIUM 2660 T? *6./ PRESS *..2 RADIO %.2 CINEMA 6./ OUTDOOR..0 INTERNET1./

G O1TH *TE O) *47E T+SE5ENT E7ENUE +N 4+))E ENT 5E4+U5: Mediu" T? Pre!! Radio Cine"a Outdoor Internet Tota Year o( +ro'th in 2660;N< 22 10 *6 ,6 1* *, 26

,6

Leadin+ ne'!paper in India

Bi+ure READERS9IP ;MILLIONS<

?ERNACULAR DAINI= 8A&RAN DAINI= 19AS=AR EENADU LO=MAT AMAR U88ALA 9INDUSTAN DINA=ARAN RA8AST9AN PATRI=A EN&LIS9 TIMES OB INDIA T9E 9INDU

21.2 21 1%.0 16.2 16.0 16.* 2.. 2.* /.* *.1

Re(erenceD Ad$erti!in+ and pro"otion #) &eor+e F Michae &oo+ e 1i# io+raph) '''.india!tat.co" '''.a indiane'!paper!.co" '''.econo")'atch.co" '''.doc!hoc.co" '''.p u++d.in '''.!cri#d.co"

,1

'''.Luic-"#a.co"

,2