1 | Page
The Newspaper Industry is the one of the Industry, which is continuous source of Income for the Industry, but now days the Industry not generating revenues. Now days the market is not doing well because of financial crisis in the Market. Moreover, advancement in technology created a big problem for the print media because now people don’t like to spend much time reading the newspaper. They like to surf the Internet and get the news as much as possible with in short span of time. The concerned report shows the effectiveness of sales promotion which is carried throughout duration to find out the ways which will help the concerned company in increasing its revenue. This report is based on some ground objective such as to get the knowledge about media sector and entertainment, Financial Express performance in the market and its exposure to stock exchange. Moreover, it helps in understanding the Media sector. The need of study arises to view the competitive advantage of financial express based on the four P’s. The most important thing was to know the customer perception about the Newspaper, which helps in understanding the customer decision making at the time of subscribing any newspaper. The methodology is based on the both the Primary and secondary data which is collected through the help of questionnaire, websites and others sources. This involves converting raw data to gather and use full information about the topic at hand. It involves tabulation of data using statistical measures from them for developing and calculating the average. The different strategies adopted for achieving the concerned targets include:
➢ Meeting the businessmen ➢ Meeting the corporate employees ➢ Meeting personal contacts 2 | Page
➢ Targeting educational institutions ➢ Random cold calling ➢ Meeting bank employees
The above report gives viable ideas for the company which if executed well can lead them to be the number one in Industry. To become the top player, it is essential to increase the awareness activities and promotional activities. During the course of my project work, I have found The Financial Express is the leading Business newspaper in Hyderabad city. The competitors of the Financial Express are proving quality of Newspaper in Hyderabad. It is having more circulation in Hyderabad but it is has some distribution channels problem. If we solve that problem it can become the market leader in business newspaper sectors. At the same time it also has to give more importance to designing, editing and marinating good relationship with the customers. It is recommended that the company needs to focus on the followings. ➢ Try to improve the distribution channels. ➢ Try to solve the customer problems and solve as early as possible. ➢ Try to attract and retain the target customers. ➢ Try to feedback and suggestions from customers frequently and implement the right things. ➢ Try to improve the customer relations.
3 | Page
4 | Page
HISTORY OF THE NEWSPAPER The Origins of Newspaper
The history of newspapers is an often-dramatic chapter of the human experience going back some five centuries. In Renaissance Europe hand written newsletters circulated privately among merchants, passing along information about everything from wars and economic condition to social custom and “human interest” features. The first printed forerunners of the newspaper appeared in Germany in the late 1400’s in the form of news pamphlets or broadsides, often highly sensationalized in content. Some of the most famous of these report the atrocities against Germans in Transylvania perpetrated by a sadistic Veovod named Vlad tsepes Drakul, who become the count Dracula of later folklore. In the English-speaking world, the earliest predecessors of the newspaper were corantos, small news pamphlets produced only when some event worthy of notice occurred. The first successively published title was the weekly news of 1622. It was followed in the 1640’s and 1650’s by a plethora of different titles in the similar news book format. The first true newspaper in English was the London gazette of 1666. For a generation it was the only officially sanctioned newspaper, though many periodical titles were in print by the century’s end.
5 | Page
ASIA’S ROLE IN THE NEWSPAPER INDUSTRY
Worldwide newspaper sales edged up by more than two percent in 2004 while advertising revenue recorded significant gains, the world association of newspaper said Monday. In its report on trends in the newspaper industry, the WAN said 395 million copies of newspaper were sold daily in 2004 and read by an estimated one billion people worldwide. China, India and Japan were the world’s biggest newspaper market in 2004 and china overtook Japan as the country with the highest number of publication in the world. Three-quarter of the world’s 100 best selling daily newspaper were now published in Asia where sales were up 4.1 percent for the year. The figures, from WAN’s annual survey of press trends, were released to more than 1,300 publishers, editors and other senior newspaper executives from 81 countries attending the newspaper congress and the world editors forum, Asia’s biggest ever media gathering, which opened Seoul Monday. Worldwide newspaper circulation grew 2.1 percent, the number of daily titles was up two percent and advertising revenue rose 5.3 percent, its biggest jump in four years, the WAN report said. “It has been an extraordinary positive 12 months for the global newspaper industry.” Said Timothy Balding, director general of the Paris-based WAN. “Newspaper is clearly undergoing a renaissance through new products, new formats, new titles, new editorial approaches, better distribution and better marketing.” Despite a tough business environment the advertising pie had expanded, generating more revenue for newspapers, even though the portion of the pie going to the print media was gradually eroding, from 30.5 percent in 2003 to 30.1 percent in 2004. Revenue grew 29 percent in China last year, more than double the growth in 2003, and 116 percent over five years. It was up 3.93 percent in the world’s biggest advertising market, the United States, more than double last year’s increase which reversed two years of decline.
6 | Page
While revenue was up, newspapers continued to lose readers in many traditional strongholds, including Europe, though the drop was less sharp than in previous years. But Balding said reports of the demise of print newspaper with the advent of the internet and digital media were premature. “Well over one billion people on planet earth are reading our publication, an impressive figure, I think,” he said. Opening the annual media gathering, WAN acting president Gavin O’Reilly stressed the need to combat attacks on press freedom worldwide. Press freedom deteriorated worldwide and freedom of expression was under siege in many countries in 2004, the WAN said its annual press freedom report. “The press is simply muzzled in many countries,” said the report. “Attacks on journalists are common. Too many killers of journalists remain free.” The report also targeted autocratic regimes throughout the world which repress freedom of expression. “The suffocation of independent media continues unabated in countries throughout the world,” said the report. O’Reilly challenged the host country South Korea, to reconsider recent media laws enacted by the national assembly which restrict circulation of some newspapers. The laws were “incompatible with freedom of the press,” he said. Mahgoub Mohamed Salish, editor-in-chief of Sudan’s oldest newspaper A1-Ayam, received the WAN 2005 press freedom award at the opening ceremony. Salish, 75, has been jailed repeatedly during his more than five decades as journalists. He received his award from world editor’s forum president George brocks. “Sudan is one of the most restrictive media climates on the continent of Africa,” Brock said. “We call on the Sudanese government to repeal all laws that inhibit press freedom.
7 | Page
HISTORY OF THE GROUP
Indian Express was started by an Auyurvedic doctor and congressman, Varadarajulu Naidu in1932 at Chennai (then Madras) published by his “Tamil Nadu”press.but soon under financial difficulties he sold it to S.Sadanand, founder of the free press journal, a national news agency. In 1933 express opened its second office in Madurai and launched the Tamil edition Dinamani. Sadanand after introducing several innovations and reducing the price, later under financial difficulties was forced to sell some stake in form of convertible debenture to Ramnath Goenka (RNG). Later when the free press journal collapsed in 1935 Sadanand lost the ownership of Indian Express after a long controversial court battle with RNG, where blows were exchanged between some of the partisans. Finally a year later RNG managed to buy rest of the 26% stake from Sadanand, and the paper become under RNG control who took the already anti-incumbent tone of the paper to dizzying heights. Also at that time it had to face stiff competition from a well established THE HINDU and the MAIL and several other newspapers by prominent personalities. In late 30’s the circulation was no more than 2000. In 1939 it also bought out Andhra Pradesh, another prominent Telugu daily. Later it gained the name three musketeers for the three dailies. In 1940 the whole premises were gutted by fire. The Hindu, its rival, helped considerably in re-launching the paper, by getting it printed temporarily at one of its Swadesimithran’s press and later offering its recently vacated premises at 2, mount road later to become the landmark Express Estate. This relocation also helped Express gain better high speed printed machines, while some claimed the Goenka had deliberately set fire to escape some financial embarrassments.
8 | Page
In later year Goenka started the Mumbai edition with the landmark Express Towers as his office when the morning standard was brought by him in 1944, two years later to become the Mumbai edition of INDIAN EXPRESS; also later editions were started in several cities like 1957 the Madurai edition, 1965 Bangalore, 1968 Ahmadabad. And also launching Financial Express in 1961 from Mumbai, Kannada Prabha (Kannada Daily) from Bangalore in 1965 and a Bangalore edition of the Telugu Daily Andhra Prabha, and Guajarati dailies Lok Satta and Jan Satta in 1952, from Ahmadabad and Baroda. The Delhi edition was when the Tej group’s Indian news chronicle in 1951, which from 1953 became the Delhi edition of Indian Express, after being. In 1990 it bought the sterling group of magazines; along with it, came the gentleman magazine. Later after Ramnath Goeka’s demise in 1991, two of the family members split the group into Indian Express Mumbai with all the North Indian editions, while the Southern editions were grouped as Express Madurai Ltd With Chennai as head quarters. The Express group has a Mumbai-headquartered division, separate from its Madurai division. The latter bring out a South Indian chain of newspaper, titled The New Indian Express. The Indian Express is considered to be for less focused on consumer preferences than its up market-targeted competitor, The Times of India. Because of its anti-glamour oriented approach to journalism, and unlike its competitors, the newspaper has now established itself as a neutral and unbiased publication, even while standing as a tough anti-establishment organ.
9 | Page
INTRODUCTION TO STUDY
SALES AND PROMOTION Today’s marketing world is broken. We are still too dependent on marketing tactics that are not in touch with today’s consumer. All marketing should be permission marketing. All the marketing should be so appealing that consumers want us in their lives. The traditional marketing model is obsolete. Holistic marketing is driving our business towards managing mass communication i.e. Advertising, Sales, Promotion, Events and Public Relation. Sales promotion consists of a variety of companies. Sponsored promotional activities that supplement both advertising and personal set up. These activities are impersonal and can be directed at industrial buyers, intermediaries or consumers. Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade. Sales promotion tools vary in their specific objectives. Incentive type promotion is used to attract new tiers, to reward loyal customers and to increase the repurchase rates of the occasional users. Sales promotion often attracts the branch switchers, because users of other brands and categories do not always notice or act on a promotion.
10 | P a g e
In using the sales promotion a company must establish its objectives, select the tools develop the program, a pretest the program, implement and control it and evaluate the results. Where advertisement offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion(samples, coupons, cash refund, price off, premiums, prizes, patronage rewards, free trials, warranties, tie-in-offers cross promotion, point of purchase displays and demonstration) ;trade promotion(price off, advertising and display allowances and Free goods); and business and sales force promotion (trade shows and Conventions, contests for sales reps and specialty advertising) Sales promotion expenditure by various marketing companies in India has been growing at a rapid pace over the years. In 2001, there were as many as 2050 promotional schemes of different kinds in the fast moving consumer goods industry in India. What are the different types of promotional schemes adopted by the companies in the consumer product category in India? To obtain an empirical view on this question, a study was carried out through advertisement (648 print and 237 television advertisement) for the period 1996 – 2003.
Advertising versus Promotion:
A decade ago the advertising-to-sale-promotion ratio was about 60:40. Today, in many consumer-packaged-goods companies, sales promotion accounts for 75% of the combined budget (roughly 50% is trade promotion and 25% is the consumer promotion). Sales promotion expenditure increases as a percentage of the budget expenditure annually for almost two decades, although its growth has slowed down in the recent years. In India, the spending on sales promotion is estimated to have grown by 500% - 600% during the last few years. Several factors contributed to this rapid growth, particularly in the consumer markets, Promotion became more accepted by top management as an effective sales tools, the number of bands increased , competitors used promotion frequently many brands were
11 | P a g e
seen as similar consumers became more price oriented the trade demanded more deals from manufactures and advertising efficiently declined. But the rapid growth of the sales promotion created cluster. Incessant prices off, coupons, deals and premium may devalue the product in buyer’s minds. So there is risk in putting a well-known brand on promotion over 30% of the time. Dominant brands offer deals less frequently because most deals subsidize only current users. Loyal brands buyers tend not to change their buying patterns as a result of competitive promotion. Advertising appears to be more effective at deepening brands loyalty, although added-value promotion can be distinguished from price promotion. Certain types of sales promotion may be able to actually enhance brand image. Price promotion may not build permanent total-category volume. One study of more than 1,000 promotions concluded that only 16% paid off. Small-share competitors find it advantageous to use sales promotion, because they cannot afford to match the market leader’s large advertising budgets nor can they obtain shelf space without offering trade allowance or stimulate consumer trial without offering incentives. Price competition is often used by a small brand seeking to enlarge its share, but it is less effective for a category leader whose growth lies in expending the entire category. The upshot is that many consumer-packaged-goods companies feel they are forced to use more sales promotion than they wish. They blame the heavy use sales promotion for decreasing brand loyalty, increasing consumer price sensitivity, brand-quality-image dilution and a focus on short-run marketing planning. One review of promotion effectiveness concluded, “When the strategic disadvantages of promotions are included, that is losing control to the trade and training consumers to buy only on deal, the case is compelling for a reevaluation of current practices and the incentive systems responsible for these trends. Major decisions: In using sales promotion, a company must establish its objectives, select the tools, develop the program, pretest the program, implement and control it and evaluate the result.
12 | P a g e
Establishing objectives: Sales promotion objectives derive from broader promotion objectives, which derive from more basic marketing objectives for the product. For consumers, objectives include encouraging purchase of larger-sized units, building trial among nonusers and attracting switchers away from competitors’ brands. Ideally promotions with consumers would have short-run sales impact as well as long-run brand equity effects. For inventory encouraging off-season buying, encouraging stocking of related items, offering competitive promotions, building brand loyalty and gaining entry into new retail outlets. For the sales force, objectives include encouraging support of a new product or model, encouraging more prospecting and stimulating off-season sales.
Objectives of Sales Promotion: The main objective of sales promotion is to increase the sales. However, there are some other objectives of sales promotion. Following are the objectives of Sales Promotion: (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the
13 | P a g e
customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufacturers and dealers give off-season discount. For example, you can buy air conditioner in winter at a reduced price. Similarly you may get discount on winter clothes during summer. (iv) To meet the challenge of compete Today’s business faces competition all the time. New products frequently come to the market and at the same time improvement also takes place. So sales promotion measures have become essential to retain the market share of the seller or producer in the productmarket. Tools of Sales Promo To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (I) Free sample: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to
14 | P a g e
popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange your black and white television with a colour television’ are various popular examples of exchange scheme. (iii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bourn vita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price.Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal Tea, Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, ‘Show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta’. The reduced price
15 | P a g e
under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. ‘International Trade Fair’ in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well known example of Fairs and Exhibitions as a tool of sales promotion. (vi) Trading Stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (vii) Scratch and win offer: To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (viii) Money Back offer Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence
16 | P a g e
among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market. Importance of Sales Promotion: The business world today is a world of competition. A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling. Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product. Let us discuss the importance of sales promotion from the point of view of manufacturers and consumers. From the point of view of manufacturers Sales promotion is important for manufacturers because (i) It helps to increase sales in a competitive market and thus, increases profits; (ii) It helps to introduce new products in the market by drawing the attention of potential customers; (iii) When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off (iv) It stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.
From the point of view of consumers
17 | P a g e
Sales promotion is important for consumers because: (i) The consumer gets the product at a cheaper rate; (ii) It gives financial benefit to the customers by way of providing prizes and sending them to visit different places; (iii) The consumer gets all information about the quality, features and uses of different products; certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and (iv) It helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.
18 | P a g e
2 MASS MEDIA
Mass media is a term used to denote a section of the media specifically envisioned and designed to reach a very large audience such as the population of a nation state. It was coined in the 1920s with the advent of nationwide radio network, mass-circulation newspaper and magazines; although mass media was present centuries before the term become common.
19 | P a g e
The term public media has a similar meaning; it is the sum of the public mass distributors of news and entertainment across mediums such as newspapers, television, radio, broadcasting, which require union membership in large markets such as newspaper guide and AFTRA, & text publishers. The concept of mass media is complicated in some internet media as now individuals have a means of potential exposure on a scale comparable to what was previously restricted to select group of mass media producers. These internet media can include personal web pages, podcast and blogs.
ELECTRONIC MEDIA AND PRINT MEDIA
Broadcasting, in the narrow sense, for radio and television. Various types of discs or tape. In the 20th century, these were mainly used for music. Video and computers uses followed. Film, most often used for entertainment, but also for documentaries.
20 | P a g e
Internet, which has many uses and present both opportunities and challenges. Blogs and podcast, such as news, music, pre-recorded speech and video. Publishing, in the narrow sense, meaning on paper, mainly via books, magazines, and newspaper.
THE ELECTRONIC MEDIA
Electronic media are media that utilize electronics or electromechanical energy for the end user (audience) to access the content. This is in contrast to static media (mainly print media), which are most often created electronically, but don’t require electronics to be accessed by the end user in the printed form. The primary electronic media source familiar to the general public are better known as video recording, audio recordings, multimedia
21 | P a g e
presentations, slide presentations, CD-ROM and online concept. Most new media are in the form of digital media may be in either analog or digital format. Although the term is usually associated with content recorded on a strong medium, recordings are not required for live broadcasting and online networking. Any equipment used in the electronic communication process (e.g. television, radio, telephone, desktop computer, game console, handheld device) may also be considered electronic media.
THE PRINT MEDIA
A newspaper is a publication containing news and information and advertising, usually printed on low-cost paper called newsprint. It may be general or special interest, most often published daily or weekly. The first printed newspaper was published on 1605, and the form has thrived even in the face of competition from technologies such as radio and television. Paid circulation is declining in most countries, and advertising revenue, which makes up the bulk of a newspaper’s income, is shifting from print online; some commentators, nevertheless, point out that historically new media such as radio and television did not entirely supplant existing media.
22 | P a g e
Publishing is the industry concerned with the production of literature or informationthe activity of making information available for public view. In some cases, authors may be their own publishers. With the advent of digital information systems and the internet, the scope of publishing has expanded to include website, blogs, and the like. As a business, publishing include the development, marketing, production and distribution of newspaper, magazines, books, literary works, musicals works, software, other works deadline with information. Publication is also important as a legal concept; (1) as the process of giving formal notice to the world of a significant intention, for example, to marry or enter bankruptcy, and; (2) as the essential precondition of being able to claim defamation; that is, the alleged libel must have been published. A magazine is a periodical publication containing a variety of articles, generally financed by advertising and/or purchase by reader. Magazines are typically published weekly, biweekly, monthly, bimonthly or quarterly, with a date on the cover that is in advance of the date is actually published. They are often printed in color on coated paper, and are bound with a soft cover. Magazines fall into two broad categories: consumer magazines and business magazine. In practical, magazines are a subset of periodicals, distinct from those periodicals produced by scientific, artistic, academic or special interest publishers which are subscription-only, more expensive, narrowly limited in circulation, and often have little or no advertising.
23 | P a g e
3 COMPANY PROFILE
The Indian Express Group was the unifying voice behind India’s struggle for independence. Today, it is the leading light in the battle against corruption as well as empowering the people of India.
24 | P a g e
The Indian Express began its journey in 1932. Since then, the Group has grown from strength to strength. From a single edition to 35 national editions, 14 publication centers and 7 language dailies that reach over 19 million people across the country. For the millions of readers, the name "Indian Express" evokes a feeling of faith and trust in the belief that ‘their Express’ will provide the true picture of India and the world at large. Published from 21 centers across the country, the newspaper has been identified with credible and fiercely independent journalism in India. One of the most influential newspapers of the Indian subcontinent, The Indian Express has been the watchdog for the Indian people, fiercely treading the terrains of investigative and pro-active journalism.
Some of the most shocking stories in the history of Indian journalism are credited to this newspaper. For instance, it showed how slavery existed in 20th century India when an Express reporter actually bought a woman from the market and wrote the famous story of Kamla. When the Press was muzzled and gagged and democracy kept in prison in 1975 during the Emergency, The Express was one of the few papers to stand up and speak out against the anti-democracy moves of the government, it was the loudest voice and the strictest critic to bring the guilty to account, at the highest levels of power wielding authority, and enable the return of freedom to the people of India. Express, virtually single-handedly, overthrew the then government by forcing it to hold free and fair national elections. Now, adapting to the changing world are the brands of the Group that cover every sector one can conceive of. The aggressively independent The Indian Express, the courageous style of The Sunday Express, the supremely analytical nature of The Financial Express, the indomitable Loksatta, the insightful Lokprabha, the sprightly Screen, the breaking-news-at-breakneck-speed providing Express Online and the comprehensive Business Publications Division throw light on a range of topics such as Indian politics, economy, business, society andculture.
25 | P a g e
As India evolves, you can be sure that the Indian Express Group will evolve too, to keep pace with whatever tomorrow will bring in an unending effort to arm India with the knowledge to deal with an uncertain future and ensure it remains the champion of freedom for the world at large. To turn the above into reality, The Indian Express Group boasts an extensive newsgathering and marketing infrastructure as well as a state-of-the-art communications network that is one of the best in the Indian publishing industry.
THE FINANCIAL EXPRESS
Established in 1961, the Financial Express is one of the most in-depth and incisive national business dailies. It offers comprehensive coverage of economic policy, business developments and market trends. In doing so, it encourages readers to make informed and highly empowered financial decisions. With editions in Delhi, Chandigarh, Mumbai, Kolkata, Kochi, Bangalore, Chennai, Hyderabad and Ahmadabad, The Financial Express is also the only pink vernacular business daily published in Gujarat out of Ahmadabad.
Fe’s columnist lineup includes some of the best-known names in their respective fields. S Narayan, former finance secretary and economic advisor to PM, Jayaprakash Narayan, member of the PM’s Economic Advisory Council, Nirvikar Singh, Professor of Economics, University of California, Robert Shiller, Yale University - Department of Economics, and Joseph Nye, Harvard University, to mention a few.
26 | P a g e
In addition, The Financial Express has pioneered two special awards: ‘The fe Women in Business Awards’ recognizes women achievers in business, management and the knowledge economy. ‘The few Best Bank Awards’ is based on the Best Bank Survey that was incorporated in 1996-97, and is now into its ninth edition. Over time, the survey has come to be acknowledged in banking and financial circles as the definitive word on industry and its performance.
➢ The founder: Ramnath Goenka ➢ Chairman & managing director: Vivek Goenka ➢ C.E.O. (editor- in- chief): Shekhar Gupta ➢ Executive Director: Raj Kamal Jha ➢ Editor: Sandipan Deb (Financial Express) ➢ Chief Editor: Kumar Ketkar (Loksatta) ➢ Editor: Bhawana Somaaya (Screen) ➢ Editor: Om Thanvi (Jansatta)
27 | P a g e
4 PRODUCT PROFILE
28 | P a g e
Established in 1961. National business daily with edition from Mumbai, New Delhi, Chennai, Kolkata, Kochi, Ahmadabad & Chennai. India’s first vernacular business daily in Guajarati India’s first and only business daily with exclusive coverage from the wall street journal. Cover price:
• • •
Weekday : Rs. 4.00 Saturday : Rs. 6.00 Sunday : Rs. 8.00
The Financial Express holds second place in readership as per IRS data. Good edition with a strong focus on investments, banking & financial reporting and policy matters. This vision & mission of the company is to give the intelligent, inclusive & indispensable information to the target customer of business class and decision makers & all the members of the group are working towards attaining the objectives. For the accomplishment of this vision and mission employees of various department work together. These various departments are. i. Circulation ii. Editorial iii. Scheduling
29 | P a g e
iv. Space marketing v. Production vi. It and system. Let us see what are the contribution/ important of each department in attain these objectives.
1. Circulation This department is headed by distribution manager. The distribution of ‘Fe’ is done with the help of Andhra Jyothi circulation of only 3000 to 4000 copies, BS 8000 copies, BL 14000 copies. The distribution starts with the paper coming to depots there are around 40 depots across AP and they are given the margin of 31% on the cover price. The copies are gone to sub Agent who further supplies it to hawker gets 15%. Space Market This department looks after add publishing that is very important. There are four kinds of add like Tenders, Display, Appointments and Financial. Tenders deal with the tenser notice issued by government. Display deals with product showing. Appointments are related to recruitment notice and financial related to publication of financial reports by the company. The target of the ‘Fe’ team is around Rs.5 lakh per month where as Rs. 50 lakh in Business Standards, and Rs. 8 lakh in Business Line. The space is charged at Rs. 50 per sq. cm for Hyderabad edition and Rs.300 for national edition. There are 70 clients in Hyderabad. The customer goes to agency and prepares his advertisement layout. The famous Ad agencies are O & M, Surya, and Ramnath. These agencies prepare the Ad send it to the publication. The person here sends it to Chennai as the paper is designed in south zonal office. The ad should be sent before 6.00 pm to be published next day.
30 | P a g e
2. Schedules This objective of the department is to process the Ad and to give a release order for the ad that is being generated by the space marketing department or ad that have came to them from the agencies. First of all ads are being processed and on to the demand of the customer a release order is given to the press. The rates of printing ad are fixed on the basis of the organization comes under directorate of audio & visual publicity (DAVP), and the cost is determined by this authority only. Similarly for private organization rates are fixed by District of Industrial and Public Relation (DIPR). Apart from this for some other organizations or individuals different rates are fixed by the company as Rs. 40/sq.cm. As the revenue for news paper industry is generated through these ads only various other rates are fixed like according to the clients preference the rates are charged like on front page its is 150% extra and similarly for color ad 100% is charged extra rates also depend on the area where the ad is to be published. Considering the same example given the government office is in Hyderabad and wants the ad to be published in pone edition the rates are charged differently. After setting the rates and date when to publish this ad is processed and release order is very essential unless and until this release order is forwarded and receive by the press the ad is not printed even if the payment is made. For this relaxation for some organization which comes under specified parameters so even if the release order is not there even the ad gets printed in the paper. For our region that is south the editing and formatting is done at Chennai where the scheduling manager is there who process and look for the space availability and then forward it to Andhra Jyothi a third party who prints for The Indian Express.
There are certain limitations for this department like:31 | P a g e
a) The ad which is to be printed should be reached by 6:00 p.m. to the press. b) The ads which of size more than 33 x 50 are not allowed. c) Only one ad is printed on the front page. d) Also if need to be repeated the cost for printing is same as is for the first time. 3. Editorials: Editorial is the content of the newspaper and the most important thing the paper will contain. The task of the editorial department is to comprise the data given by editors in a proper format with the attractive language and text. The editorial department also sends the data to Chennai before every evening so that it can be published in the next day’s paper.
4 Productions: Publication of the paper is also important task carried outwit utmost accuracy and scheduling process. The final format of the paper is prepared in Chennai and then it is send to respective publication canter like I Andhra Pradesh it is send to Hyderabad.
5 IT and System: This is one of the important departments in the newspaper industry. As this department indulge in the activity of servers and networks. This is the main job because news from different region by the reporters is passed to the editorial department through these serves only. Reporters from different region transfer the news through different agencies to the newspaper industry and this go through the server to the editorial department where all the formatting and editing of the newspaper is made and a rough format is prepared that particular news should be in the position. After a format is made again it is forwarded to the printing department through this server only.
32 | P a g e
For The Indian Express group i.e. for The Financial Express south region the server is located at the three centers Hyderabad, Chennai, and Bangalore, which is connected through a different ISDI line. For the region format of paper is made at Chennai and then it is passed to the printing department at all three centers. As mentioned earlier also for Hyderabad region publication is done at Andhra Jyothi. Apart from this, department also look the recording of data at the back end i.e. data warehousing, and also the maintenance of the system in an office. The backup of all the data is mentioned on daily basis. So the employees of the entire departments know their job and responsibilities to attain ultimate objective of the company. Similarly we interns belong to the circulation department, wherein we are creating market for the company, ultimately contributing to attain the company’s objectives. Contents of Financial Express • • • • • • • • • • • • Latest News Corporate and Mark Front Page Stocks Politics Edits & Columns International Economist Fe special Fe 360 Fe centers Fe 500
33 | P a g e
• • •
Fe web specials Sme world Best Bank in India
Fe Supplements: • • • • eFe Brand wagon India inc Fe investor
SUPPLEMENTS OF THE FINANCIAL EXPRESS Some special supplements are published like eFe on Monday, Brand wagon on Tuesday, India Inc on Thursday, Fen Investor on Sunday. eFE On Monday a special technology, media & telecom supplement. It is India’s first enewspaper offering in depth coverage of technology related news. Other articles published here are essence, eGloble, E- Debate. BRAND WAGON
34 | P a g e
The all new Brand Wagon. Going beyond the charts and statistics to focus on real people. Loaded with genuine insights, case studies and articles and from The Economist, New York Times and Bloomberg, Brand Wagon makes sure you will never look at customer as mere numbers again. Every Tuesday with The Financial Express. India INC India incorporation on Saturday deals with track trends and deals into whys and wherefores of business. It also covers articles on management strategies. Fe A special supplement on Sunday that gives all the information about mutual funds, commodities, stock. An ideals information package for the individuals to plan their investment. It is issued in Sunday because a customer had a good time to analyze on Sunday. This makes a difference as its competitors issue it on Monday. Fe is 24 hours early than others.
SWOT ANALYSIS OF FINANCIAL EXPRESS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issue. SWOT stands for strengths, weakness, opportunities and threats are external factors.
Components of SWOT analysis:
35 | P a g e
Strength are within the control of the Entrepreneur and they occur at present strengths should be capitalized to make weakness redundant.
➢ Good network with customers ➢ Distribution system ➢ New improvement of product
➢ Product feature (editorial, quality etc)
➢ Time management
Weaknesses are within the control of the entrepreneur; they occur at present. They are “lack of….”, “missing…”, or weak points. As far as possible, weaknesses should be eliminating. ➢ Weak selling effort ➢ Lack of promotion experience ➢ Lack of Transportation ➢ Comparatively high price ➢ Low levels of stocks in times of peak sales
Opportunities are positive or favorable factors in the environment, which the entrepreneur should make use of or which make his project idea potentially valuable. They are however, mostly beyond the control of the entrepreneur. They are different from strengths in the sense that strengths are positive internal factor of the business. ➢ Rising income of Target market ➢ Growing demand ➢ Similar product making profit
36 | P a g e
➢ Scarcity of product in the locality ➢ Adequate training opportunity
Threats are negative or unfavorable external factors in the environment and normally beyond the control of the entrepreneur. They adversely affect the business, if not eliminated or overcome. Threats differ from weaknesses in as much as they are beyond the control of the entrepreneur. Both have a negative impact on the business. The purpose of analyzing threats is to look for ways of hedging against them, i.e. trying to avoid them or lessening their negative impact by making counterbalancing actions.
Generally speaking, you should cover the following aspects, while making a SWOT analysis for a project idea.
Business Line or The Hindu Business Line is an Indian business newspaper published by Kasturi and Sons, publishers of the The Hindu newspaper. Business Line started publishing in 1994. It is India's youngest business newspaper and also the country's second
37 | P a g e
largest selling, with a circulation of one lakh (= 100,000) copies, next to the Economic Times. Business Line is known for its special focus on commodities, agribusiness and logistics. Out of a total of 20 pages, a total of four pages are dedicated to commodities, agribusiness and logistics. On Mondays, the newspaper contains special sections called 'Commodities Investment', and another page called 'Transport. Business Line is published from 14 locations - Bangalore, Chennai, Coimbatore, Delhi, Hyderabad, Kochi, Kolkata, Madurai, Mangalore, Mumbai, Thiruvananthapuram, Tiruchirapalli, Vijayawada and Visakhapatnam. Most of the newspaper's circulation comes from south India. Some consider it to be a newspaper targeting niche audience since it is priced at Rs 4 compared to the Economic Times’ Rs 2 and Business Standard's Rs 3.
Business Standard is the country's most respected business daily, being the first choice of serious business readers. It is published in colour from seven centers in India Mumbai (formerly Bombay), New Delhi, Kolkata (formerly Calcutta), Bangalore, Chennai (formerly Madras), Ahmadabad and Hyderabad. The newspaper believes in free, fair and independent journalism and strives to inculcate these values in its editorial staff. The journalism practiced by Business Standard lays equal stress on quality, credibility and accuracy. The Financial Times of London has taken an equity stake in BSL. Business Standard has the country's best economic journalists and columnists working for it. It is edited by T.N. Ninan, perhaps India’s best-known business journalist, who had earlier undertaken a complete and highly successful revamp of The Economic Times and was responsible for its phenomenal growth. Among the other senior journalists in the team are A. K.Bhattacharya, former editor of The Pioneer and associate editor of The Economic Times, and Shyamal Majumdar, former resident editor of The Financial Express. Business
38 | P a g e
Standard’s stable of specialist contributors includes some of the sharpest minds in economics and business. Among them: Shankar Acharya, former chief economic advisor, government of India, Subir Gokarn, chief economist, Crisil, Deepak Lal, professor of economics, UCLA, Bibek Debroy, director, Rajiv Gandhi Institute for Contemporary Studies, Suman Bery, Director-general, National Council of Applied Economic Research, Alexander Nicoll, assistant director, International Institute for Strategic Studies, and Arvind Singhal, chairman, KSA Technopak. The newspaper’s columnists include Surjit Bhalla, TCA SrinivasaRaghavan, Sunil Jain and AV Rajwade. Apart from a business newspaper, BSL publishes several periodicals, including BS Motoring, Indian Management, and Routes: the Gateway Magazine (a lifestyle magazine). The company sees content creation, content processing and content management as its core competence. It offers complete outsourcing solutions for organizations which want to bring out in-house or private publications but lack the people and/or resources to do it cost-effectively.
39 | P a g e
40 | P a g e
SIP is a potential program for the PGDM student to make them professionals. This program has been placed for the students for their practical exposure to the corporate world. The general objectives to do the SIP in the Indian express are as follows: ➢ To get the knowledge about media sector and entertainment. ➢ Its performance in the market and its exposure to stock exchange. ➢ To gain the experience about different companies in achieving things in the corporate world. ➢ To gain the knowledge about the company and the competitors. ➢ To gain knowledge about the media sector. ➢ To know the professionalism in the real corporate world in spite of just bookish knowledge. ➢ To know about the methods of market surveys and the segmentation of the market.
41 | P a g e
6 SCOPE OF STUDY
42 | P a g e
SCOPE OF STUDY
This study covers not only industry profile but also company profile and related subjects literature it covers research design and methodology used for research, description of Research, methodological assumption and limitations. It covers the data sources, primary as well as secondary, sampling procedure, detailed analysis and interpretation of data, methods used in data analysis. It covers limitations of study like time, money and sample size taken, sampling technique, eliciting information and limitation in usage of research tool and nature of respondents. After limitations, the findings of analysis and its conclusion, suggestion and recommendation given to the company after the data analysis and findings. In the last it covers appendix and Bibliography.
43 | P a g e
7 RESEARCH METHODOLOGY
44 | P a g e
The objective of the present study can be accomplished by conducting a systematic market research to know the market demand for media. Market Research is the systematic design, collection, and analysis and reporting of data and finding that are relevant to different marketing situation faced by the company. The marketing research process that is adopted in the present study consists of following stages. A) Defining the problem and the research object The research objective states what information is needed to solve the problem? The objective of the research to derive the opinion of the users and opinion of the potential customers:
45 | P a g e
B) Developing the research Once the problem is identified, the next step is to prepare a plan for getting the information needed for the research. The present study will adopt the explanatory approach where in there is a needed to gather large amount of information before making a conclusion C) Collection and source of data: Market research required two kinds of data, i. e. Primary data and secondary data.
The primary data is collected with direct interaction with customers through questionnaire and personal interview. The questionnaire consists of closed ended questions regarding their personal details, awareness about the media.
Secondary data: The secondary data like graphs, company profile and industry profile are collected from journals, newspapers magazines websites and broachers. D) Analyze the collected information This involves converting raw data in to use full information. It involves tabulation of data using statistical measures from them for developing and calculating the average. E) Report research pending This phase will mark the culmination of marketing research efforts. The report with the research findings and personal experience will be used to propose recommendation to develop the product provided by Sundaram finance
STRATEGIES ADOPTED FOR THE STUDY
46 | P a g e
The different strategies adopted for achieving the concerned targets include:
➢ Meeting the businessmen
➢ Meeting the corporate employees ➢ Meeting personal contacts ➢ Targeting educational institutions ➢ Random cold calling ➢ Meeting bank employees
NEED OF THE STUDY
The need of study arises to view the competitive advantage of financial express basing on the four P’s i.e. product, price, place, promotion. I intended to know from the target customer what parameters they looked for in a business newspaper and if they are following some paper what is the reason behind the same. It will help the company to get a competitive advantage over others. It will help me know the market pulse for business newspaper.
Though the present study aims to achieve the objective on full earnest and accuracy, it has certain limitations. Some of the limitations of this study may be summarized as follows:
➢ TIME CONSTRANT: Since the time given for carrying out the survey is only 45
days, extensive work would not be possible.
47 | P a g e
➢ GEOGRAPHICAL BARRIER: The survey is limited to the geographical limit of
Hyderabad city. So more number of respondents could not be met.
➢ RESPONDENT REFUSAL OF BIAS: The responses given by the respondents may
not be relied upon completely.
➢ SHORT PERIOD OF TRAINING: The Company had given very short period of
training of 4 days. So, it’s not quick enough to get well verse with the company’s product.
➢ SAMPLE LIMITATIONS: The numbers of respondents were just hundred couldn’t
represent the entire population as I have done the survey for Financial paper which is having a niche market. Some of the provided by the respondents may not be true to consider.
48 | P a g e
8 DATA ANALYSIS
(i) Are you a regular reader of business newspaper?
49 | P a g e
The above analysis shows that 90% of the respondents read Business Newspaper whereas, 10% respondent does not reads business news paper.
(ii) Which business newspaper do you read? (a) Financial Express ( ) (c) Economic Times ( )
(b) Business line (d) Other
The above graph shows the % of Readers choice of business newspaper. As among all the newspaper the highest readers prefer Economic Times around 46%, 30% Financial express, whereas 24%like Business Line and 10 % like others.
50 | P a g e
(iii)How do you rate the particular newspapers?
CONDITION I II III IV
ATTRIBUTE Excellent Good Satisfactory Poor
MARKS 75-100% 55-74% 40-54% >40%
In the above analysis I found out the customer feedback about the different newspaper on the basis ranks system. Under this the Economic Times have got the more ranks marks around 80%, Financial Express around 65% and reaming have got the others.
(iv)Reasons for the purchase of a particular business newspaper: Price 8% Content 32% Progressive outlook 12% Advertisement Supplement 10% 18% Awareness 20%
51 | P a g e
This analysis gives the overview and the different parameters which any business newspaper considersbefore taking the newspapers .Most of the respondents said that contents is the most important things of newspaper and also other factor are taken into consider like awareness ,Supplements and Advertisement etc.
Only for the readers of Financial Express (v) Which supplements do you like the most? eFe Brand Wagon India inc Fe Investor 35% 25% 18% 22%
52 | P a g e
The above analysis shows the different factorswhich turn the revenues of Financial Express which include 35% eFe ,25%Brand Wagon,25% Fe Investor and around 20%Indian Inc. Moreover it was common found on respondents that they are so much like the Brand wagon supplements.
(vi)Which monthly magazine you like the most?
53 | P a g e
India’s Best Bank SMEWORLD MICRO FINANCE Financial Express 500
35% 15% 25% 25%
As the analysis shows that the customer of Financial Express like the different magazine. Among all 35% like India’s Best Bank, 28% Micro Finance, Fe 28% and around 18% like the magazines of Financial Express.
(vii)How do you rate Financial Express based on
CONDITION I II III IV
ATTRIBUTE Excellent Good Satisfactory Poor
MARKS 75-100% 55-74% 40-54% >40%
54 | P a g e
As all the above parameters give a clear idea about the Financial Express market scenario which makes the customer to buy the newspaper. Among all criteria the contents and distribution are more than 80% which is the main factor which generate more sales. Whereas it’s Supplements gives more revenue.
(viii)Which segment of the newspaper you like the most?
( ( (
) ) )
(b) On The Spot (d) Policy (f) fe 360
) ) )
(c) Focus News (e) Infrastructure
The above analysis shows the choice of customer about the Financial Express .Among all the customer like more than 40% the front pages of the paper.
55 | P a g e
➢ About 90% of the respondents read Business Newspaper whereas, 10% respondent
does not reads business news paper.
➢ As among all the newspaper the highest readers prefer Economic Times around 46%,
30% Financial express, whereas 24%like Business Line and 10 % like others. ➢ Most of the respondents said that contents is the most important things of newspaper and also other factor are taken into consider like awareness, Supplements and Advertisement etc. ➢ Among the entire customers about 40% like the front pages of the paper.
56 | P a g e
To become the top position it is essential to increase the awareness activities and promotional activities. At the same time it has to take care of its target customer tastes and preferences. For that it has to collect the market survey report on customer perception. For collecting the accurate information system it has to make a separate department. Where every marketing activity to be collected from different angles, like SWOT analysis & new strategies of their competitors ➢ Try to improve the distribution channels. ➢ Try to solve the customer problems and solve as early as possible. ➢ Try to attract and retain the target customers. ➢ Try to feedback and suggestions from customers frequently and implement the right things. ➢ Try to improve the customer relations.
57 | P a g e
58 | P a g e
The research on the sales and promotion perception towards The Financial Express helps to evaluate the performance and standing in the Business News paper market services in the eyes of the customers. Finally, I conclude that: During the course of my project work, I have found The Financial Express is the leading Business newspaper in Hyderabad city. The competitors of the Financial Express are proving quality of Newspaper in Hyderabad. It is having more circulation in Hyderabad but it is has some distribution channels problem. If we solve that problem it can become the market leader in business newspaper sectors. At the same time it also has to give more importance to designing, editing and marinating good relationship with the customers.
59 | P a g e
ANNEXURE Questionnaire for Financial Express
Respondent Details Address Age Phone(Res) Phone(off)
Name of Respondent Street/market City Pin
(ix)Are you a regular reader of business newspaper? (b) Yes ( ) (b) No ( ) (x) Which business newspaper do you read? (b) Financial Express ( ) (c) Economic Times ( )
(b) Business line (d) Other
If other than name the business newspaper …………………….
(xi)How do you rate the particular newspapers?
Newspaper Financial Express Business line Economic Times Other
(xii)Reasons for the purchase of a particular business newspaper:
60 | P a g e
Only for the readers of Financial Express (xiii)Which supplements do you like the most? eFe Brand Wagon India inc Fe Investor (xiv)Which monthly magazine you like the most? Best Bank SME Micro finance Financial Express 500
(xv)How do you rate Financial Express based on
Features Price Content Distribution Advertisement Supplement Awareness
(xvi)Which segment of the newspaper you like the most? (b) Front page ( ) (b) On The Spot (c) Focus News (e) Infrastructure ( ( ) ) (d) Policy (f) fe 360
) ) )
Any suggestions or recommendation that can prove beneficial for our newspaper………
61 | P a g e
Kotler, Philip. “Marketing Management”. Prentice Hall of India Pvt Ltd, New Delhi.13 e. 2008-09.
62 | P a g e
The following websites were referred to collect relevant information about the topic chosen for the study: • • • www.financialexpress.com www.indianexpress.com www.wikipedia.com
63 | P a g e