Professional Documents
Culture Documents
A Project Report On: "Customer Satisfaction Towards Daily News Paper of Dainik Jagran"
A Project Report On: "Customer Satisfaction Towards Daily News Paper of Dainik Jagran"
Project Report
on
“Customer satisfaction towards daily news paper
of Dainik Jagran”
Year 2017-2019
1
PREFACE
Only academic knowledge is not enough for the students, it is also necessary
for them to have a slice of the practical corporate world wherein they can
apply their knowledge and put their skills to a test. This is a first step
towards corporate world.
2
ACKNOWLEDGEMENTS
At the onset I would like to thank Mr. Ajay Nath Dubey for providing
me a wonderful opportunity to work on this project. Their valuable time and
guidance went a long way in helping to make a quality work out of this
project. I also owe my regards to my Faculty Members, who has helped me
in every possible way to make this project a success.
Last but not the least, I would like to thank all the Faculty members
and Staff members who all helped me in completing my Project successfully.
3
INDEX
1. Introduction
2. Objective
3. Research Methodology
4. Product lines and consumer behavior
5. Growth of the industry
6. Technology of production and distribution
7. Marketing
8. Innovation
9. Strategies and competition in the industry
10. QUESTIONNAIRE
Bibliography
4
CHAPTER 1
Introduction of Study
Newspapers carry the news of the world. By reading it, you will become updated
with current events not only in your nation but news about other countries as well.
Newspapers provide information and general knowledge. Reading it daily will widen
the scope of your knowledge which is an integral part of education and very useful
especially for student. Newspapers can provide interesting things and ideas which
can assist students in their learning process at school. Not only are the news itself that
are beneficial for students, but it also develop their language skills and increases their
word vocabulary.
Newspapers provide news about a country’s economic situation, sports, games,
entertainment, trade and commerce. People are made aware of the existing condition
of politics, culture and economy by reading the news. Those who hunger for news will
surely find satisfaction by reading the newspapers as it carries information of various
topics.
Reading newspaper makes a good habit and it is already part of the modern life. This
habit will widen your outlook and will enrich your knowledge. It will likewise
improve your English as reading English news is a good practice.
Reading newspaper makes you well informed. It enables you to take part in every
discussion pertaining to the world’s current events. By taking an active participation
in group discussions, it will make you feel that you belong in an enlightened society.
The only thing that can stop you from joining talks and discussion is if you are
ignorant of what is happening around you.
5
Reading newspapers will improve your knowledge in general and it will be easy
for you to relate to other people who often talks about current events and politics.
Of course, there are televisions and radios that also bring current news but it do not
provide detailed information as newspaper does.
Through newspapers, you will have a clear idea and understanding of what is happening
in your country and the whole world. It also carries contents about policies and plans of
government and corporations. It has also plenty of advertisements that will keep you
updated about what is going on in the world of business and industry.
6
COMPANY PROFILE
Dainik Jagran
Dainik Jagran
A February 2010 front page of the New Delhi edition
Format Broadsheet
Owner Jagaran Prakashan Ltd.
Founded 1942
Political Independent
alignment
Language Hindi
Headquarters Jagran Building, 2, Sarvodya Nagar, Kanpur-208
005, India
Circulation 2,795,965 Daily
Official website jagran.com
7
Overview
Dainik Jagran was jointly founded by Shri Puranchandra Gupta & Shri
Gurudev Gupta in Jhansi in 1942. In 1947 Dainik Jagran shifted its
headquarters to Kanpur, where it launched its second edition on 21
September 1947. The Rewa and Bhopal editions were added in 1953 and
1956.
In 1975, publication of Gorakhpur edition started, followed by Varanasi,
Allahabad and Lucknow in 1979. In 1984, Meerut edition was launched,
followed by Agra in 1986, Bareilly in 1989 and Delhi in 1990. Between
1997 and 2006, eighteen new editions were added, and through 2007-
08, six new editions were launched.
More than 55.7 million people read Dainik Jagran making it the largest
read daily in India. Currently, Dainik Jagran’s 36 editions are published
across eleven states of India. Its editions are published from the following
places:
8
Educational initiatives (Dainik Jagran Group)
9
Key persons
10
With the launch of the
coffee table book ‘Jagran
Gems’, Jagran Prakashan
Limited (JPL) crossed yet
another milestone. It was
indeed a proud moment as
the backdrop revolved at
the appointed hour in an
exact replica of the book
cover, in New Delhi. AK Singh from Agra gets his personalised
Eminent people from a CTB
large cross section of
society, including media, marketing, the government and prominent
business locations graced the event.
While the chief guest, Jitin Prasada, minister of state for Petroleum
and Natural Gas, Govt of India lauded the JPL endeavour for
recognising these entrepreneurs of Uttar Pradesh, Mahendra Mohan
Gupta, chairman and managing director of JPL spoke about the grit
and determination of these hand-picked few, who with their
achievements, had made a difference to the lives of numerous in the
various remote districts of UP. Gupta said that it has always been the
endeavour of Jagran to encourage and promote entrepreneurs who
have contributed in nation building and provide them the platform
they rightfully deserve.
11
Sanjay Gupta, CEO and chief editor, JPL thanked the dignitaries
present. Sharmishtha Sharma, author of the book, spoke about the
partnership of BMW Deutsche Motoren that took the project forward
and the contributions of Jagran Solutions in presenting the event in
its stylish avatar. Other presenters included Sunil Gupta, Sandeep
Gupta, Shailesh Gupta and Bharat Gupta.
Besides, they are also operational in forms of: Jagran Engage, the out-
of-home advertising division of the company; J9 Ventures, a business
division of JPL in the business of web, WAP & text based value added
services, products, platforms and solutions for consumers and
corporate customers; Yatra’, the popular travel guide series; Jagran
Solutions, providing below the line activities like promotional
marketing, event management and on ground activities having pan
India presence; Jagran Pehel, the CSR cell of JPL; Radio Mantra, FM
channel with eight broadcasting centers; MMI online; and now Jagran
Gems, an initiative of JPL which honors the extraordinary
entrepreneurs from various fields in the form of a coffee table book
(CTB).
12
About group profile / history / directors / board of directors Jagran
Prakashan Ltd (JPL) is India’s leading media and communications group,
with its main interests across Newspapers, Outdoor, Internet, Magazines,
Below the Line marketing solutions, and Mobile Value Added Services.
The genesis for Dainik Jagran was in the year 1942. The year when the
freedom struggle of India reached its crescendo and found expression in
the “Quit India movement”. Dainik Jagran was launched during this time
with the vision of our founder Shri Puran Chandra Gupta, to “Create a
newspaper that would reflect the free voice of the people” . This vision
was as much a reflection of the time when it was propounded as much
as it is relevant to us today. Even as on today, when Dainik Jagran
markets control the political destiny of the largest democracy in the
world, the vision continues to guide us.
http://www.inext.co.in
13
changing India of today. It now covers 12 prominent cities in 4 states of
India through its various editions and infrastructure. The readership of I
Next is an impressive 22 Lakhs as per Latest IRS. It distinctly stands
apart from its competitors due to its beautiful packaging of news,
attractive layout design and the versatility of news & features. These
accomplishments have made I next the pulse of today’s Youthful India
wherever it’s present.
http://www.jagrancityplus.com
City Plus is the Weekly English Tabloid from the group. It is an English
News-Information-Entertainment paper with 31 editions from Delhi,
NCR, Bangalore, Pune, Mumbai and Hyderabad ,targeting premium
geographic localities. An aesthetically designed all colour newspaper
editorially cover a variety of topics from Food, Fashion, Lifestyle, etc.
Apart from this, it also has reader interactivity through Contests,
Coupons, Puzzles, Quiz, Crossword, Games, Polls, Suggestions.
14
ensure that the YUMPI has access to the MiD DAY experience at anytime
during the day and at anyplace as well.
To add to the dynamic product delivery through content, MiD DAY has
also been creating a unique experience for its readers and clients
through globally awarded marketing initiatives. The print innovations
like 3D Impact Jacket, Format innovations and promotional activities
like the MiD DAY Bollywood Lunch Contest, MiD DAY Happy Hours @
Work & @ Home, MiD DAY Media Nights, MiD DAY Corporate Cricket
League & many others have won top honours across International Award
functions such as INMA, IFRA Cross Media Awards & Asia Multimedia
Publishing Awards.
15
Mr. Abdul Hamid Ansari, a freedom fighter, wanted to use the medium of
Urdu to educate the Muslims and fight against British rule
http://www.jagranengage.com
16
Jagran Engage is the OOH division of JPL which specializes in Out of
Home media solutions across India. Jagran Engage covers 900 + towns
spread across 370 districts in 27 states. Engage offers comprehensive
Out-Of-Home (OOH) solutions to prospects & customers through its
bouquet of offerings of Hoardings &Billboards, Unique Street Furniture,
Transit & Mobile Media besides innovative & ambient to suit specific
client requirements.
http://www.jagransolutions.com
Jagran Solutions is the division that leads work in the Below the Line
Marketing Solutions or Experiential Marketing area . Jagran Solutions
has been at the forefront of transformation; transforming imagination
into realities & ideas into beliefs. Awarded with numerous awards at
various national and international platform like PMAA & AIPA, Jagran
Solutions specializes in providing versatile, complete and measurable
solutions in ensuring an immersive, interactive and experiential
integrated marketing plan applicable to activations, corporate events,
conventions, product launches, meetings, conferences, exhibitions and
contests.
http://www.j9mobile.com
http://www.jagranpehel.com
17
As a responsible corporate citizen, JPL supports a specifically dedicated
organization, Pehel to discharge its social responsibilities and provide
social services such as organizing workshops/seminars to voice different
social issues, health camps/roadshows for creating awareness on the
social concerns and helping underprivileged masses. Pehel is working
with various national and international organizations such as World
Bank on various projects to effectively discharge the responsibilities
entrusted by the company. The company has also been assisting trusts
and societies dedicated to the cause of promoting education, culture,
healthcare, etc.
The group foray into the internet space has been through “jagran.com”
which is the largest Hindi portal its category. We have entered into a
strategic alliance with Yahoo India to launch a co-branded site. This we
believe will reshape the online Hindi news and current affairs landscape -
- in terms of compelling customer experience and user engagement.
Jagran.com is the largest language site in India with over 60 mn page
views/month with 37 pages per visitor and a unique user base of 1.6 mn
per month.
18
Challenges of Consensus Building”. All were attended by dignitaries from
across India and the World including the Prime Minster and Vice
President of India.
The Punjabi language is very widely used in Punjab - and this runs
across all the Pop Strata of Punjab. The language has great acceptance in
the region, and it therefore makes an automatic choice for us to complete
our bouquet for Punjab. With the launch of Punjabi Jagran, we hope to
add newer readers, newer markets and strengthen the Jagran presence
in complete Punjab.
JPL has grown consistently over the last 15 years though expansion and
launch of newspaper brands across various states and languages and at
the same time also made successful forays into other media like
Magazines, Outdoor, Below the Line Marketing Solutions, Internet and
Mobile Value Added Services. Apart from having the scale and size across
every media platform, JPL has the objective of being the most
professional communications solutions provider across every platform.
19
Introduction Print Media
Print Media, as anyone can understand is one of the most important factors coming
through in the way a nation works. Newspapers, magazines, books etc. are ready by a lot
of people and are certainly one of the most trusted mediums of National and International
News.
India has a vast array of Print Media with Thousands of Magazines and Newspapers in
circulation. Top Notch Journalism, great reporting, press unity and a very strong network
is what makes Print Media so much of a success even today in the age of Television and
the Internet. It is also said that Print Media also helped literacy and undoubtedly the
General Knowledge of the average person in India.
The good thing about Indian Print media is that any Bias of any sort is quickly subsided;
therefore, impartial reporting is a major feature of the Indian Print Media. The news you
get through these outlets cannot be any truer.
The newspaper with the largest Circulation in India is Dainik Jagran, having near about
Two million readers. Next comes Times of India, an English newspaper, followed by
Dainik Bhaskar, another Hindi Newspaper.
India has a lot of regional newspapers and magazines as well in a lot of languages.
Therefore, there is something out there for everyone to read! This section is dedicated to
the Indian Print media with articles on Newspapers, Magazines, Controversies, and
opinions related to them etc.
20
Overview of the Industry
Printing is a process for reproducing text and image, typically with ink on Paper using a
printing press. It is often carried out as a large-scale industrial process, and is an essential
part of publishing and transaction printing. Indian print media is one of the largest print
media in the world. The history of it started in 1780, with the publication of the Bengal
Gazette from Calcutta. James Augustus Hickey is considered as the "father of Indian
press" as he started the first Indian newspaper from Calcutta, the Calcutta General
Advertise or the Bengal Gazette in January, 1780. In 1789, the first newspaper from
Bombay, the Bombay Herald appeared, followed by the Bombay Courier next year (this
newspaper was later amalgamated with the Times of India in 1861).
The first newspaper in an Indian language was the Samachar Darpan in Bengali. The first
issue of this daily was published from the Serampore Mission Press on May 23, 1818. In
the same year, Ganga Kishore Bhattacharya started publishing another newspaper in
Bengali, the Bengal Gazetti. On July 1, 1822, the first Gujarati newspaper the Bombay
Samachar was published from Bombay, which is still extant. The first Hindi newspaper,
the Samachar Sudha Varshan began in 1854. Since then, the prominent Indian languages
in which papers have grown over the years are Hindi, Marathi, Malayalam, Kannada,
Tamil, Telugu, Urdu and Bengali.
The Indian language papers have taken over the English press as per the latest NRS
survey of newspapers. The main reason is the marketing strategy followed by the regional
papers, beginning with Eenadu, a Telugu daily started by Ramoji Rao. The second reason
is the growing literacy rate. Increase in the literacy rate has direct positive effect on the
rise of circulation of the regional papers.
The people are first educated in their mother tongue as per their state in which they live
for e.g. students in Maharashtra are compulsory taught Marathi language and hence they
are educated in their state language and the first thing a literate person does is read
papers and gain knowledge and hence higher the literacy rate in a state the sales of the
21
dominating regional paper in that state rises. The next reason is localization of news.
Indian regional papers have several editions for a particular State for complete
localization of news for the reader to connect with the paper. Malayala Manorama has
about 10 editions in Kerala itself and six others outside Kerala. Thus regional papers
aim at providing localised news for their readers. Even Advertisers saw the huge
potential of the regional paper market, partly due to their own research and more due to
the efforts of the regional papers to make the advertisers aware of the huge market.
The Indian Newspaper industry is one of the largest in the world. It publishes the largest
number of paid-for titles in the world. In 1997, the total number of newspapers and
periodicals published was 41705, which include 4720 dailies and 14743 weeklies. The
highest numbers of newspapers was published in Hindi, 16864. Newspapers in India are
measured on two parameters, circulation and readership. Circulation is certified by the
Audit Bureau of Circulations which is an industry body. It audits the paid-for circulation
of the member newspaper companies. Readership is estimated by two different surveys,
The Indian Readership Survey (IRS) and the National Readership Survey (NRS).
22
List of players in the industry
23
Categorization of players in the industry
Category Players
Dailies Deccan Chronicle, The Times of India, The Hindu, Aaj Tak, India
Abroad, Deepika Global, Asian Age
Business The Economic Times, The Financial Express, Business Line, Business
dailies Standard
Weeklies and The Week, Outlook, India Today, Asha kiran, Panchjanya weekly
Monthlies
Regional Andhra Pradesh: Deccan Chronicle, Andhra Bhoomi, Hindi Milap
Delhi: Hindustan Times, Pioneer
Maharashtra: Bombay Mid-day, Lokmat Times, Sakaal , Loksatta
West Bengal: The Telegraph, The Statesman
Film related Filmfare, Screen, Planet Bollywood, Indian Express Bollywood Scoop,
Apun Ka Choice, Indian Television, RedifIndia, Film Trip, Star Dust
Computer PC Quest, Cyber India, Data Quest, Voice & Data, Computers Today,
related Express Computer, Silicon India
Others The Onion, India Today Plus, Des Pardes, India Together, Teens Today,
Andhra Jyothi in telugu, Wow Hyderabad, Zee Premiere, Showtime,
Arcade, JAM, India Talkies
24
Brief profile of players in the industry
25
TOI press are in Sahibabad, Ahmedabad, Bhubaneswar, Bengaluru, Bhopal,
Chandigarh, Chennai, Delhi, Goa, Guwahati, Hyderabad, Indore, Jaipur, Kanpur,
Kolkata, Lucknow, Mangalore, Mumbai, Mysore, Nagpur, Patna, Pune, Ranchi,
Surat.
Total Average Circulation for 2008: 3,433,000 copies Supplements
The Times of India comes with several city-specific supplements, such as Delhi
Times, Calcutta Times, Bombay Times, Hyderabad Times, Kanpur Times,
Lucknow Times, Indore Times, Nagpur Times, Bangalore Times, Pune Times,
Ahmedabad Times and Chennai Times, The Times of South Mumbai, The
Times of Doon, Meerut Plus, Haridwar Plus , Bhopal Plus .
Other regular supplements include:
Times Wellness (Saturdays) – Times Wellness focuses on solutions to health
issues and guidance to better living
Education Times (Mondays) – Education Times caters to the ever-expanding
student community and learning experience, as a career guidance, counselor and
adviser.
Times Ascent (Wednesdays) – Editorial of Times Ascent, Centers on human
resource development and the impact and implications on business and society.
ZIG WHEELS – ZigWheels.com is an automotive website reviewing,
discussing, features and interviews on Indian vehicles.
Times Life (Sundays) – Times Life is the supplement which is feature driven
What's Hot (Fridays) – Focus on latest happenings/events. Special pages created
for channels and details of programmes
Rouge (Saturdays) – Concentrates on women's interest areas.
26
Dainik Jagran
Dainik Jagran is the World’s Largest Read Newspaper and the Number One Hindi
Newspaper in India. It is the world’s largest read news paper and is one the largest
newspapers in the world. It was the brainchild of the aggressive freedom fighter
Mr. Puranchandra Gupta. The first edition was launched in Jhansi in 1942 and in
1947 Dainik Jagran shifted its headquarters to Kanpur and thus launched its
second edition.
In this new, dynamic world of Indian media Dainik Jagran is an iconic brand.
More than 55.7 million people reach out for Dainik Jagran making it the
largest read daily of India.
Dainik Jagran’s 37 editions carve a huge swathe across eleven states – Madhya
Pradesh (Bhopal, Indore, Gwalior, Jabalpur, Ratlam, Satna & Saugor) along
with the states of Uttar Pradesh, Uttarakhand, Punjab, Haryana, Bihar,
Jharkhand, Himachal Pradesh, Delhi, West Bengal and Jammu & Kashmir .
Some supplements offered by the Dainik Jagaran are: Jhankaar, Yatra,
Sangini, Josh, Nai Rahein, E - PAPER
Jagran.com has various channels on its website focusing on different information
needs of its users. On the website the latest news in Hindi more than 30 times a
day. In addition to news, they also have more than 30 other channels on their
website including:
Junior Jagran - A colored, bilingual, weekly tabloid catering to the taste of the
youngsters and teenagers of 13–19 years age group.
Khana Khazana - A cookery channel targeted at household women who cherish
cooking. Jagran Yahoo! Khana Khazana is a complete resource of multi
cuisine recipes and quick cooking tips.
27
Channel Sakhi - The Sakhi is a premium women’s channel targeted at upwardly
mobile and outgoing women in the upper socio-economic class. The channel
highlights the role of women in modern times and helps them in coping with
the outside world.
Josh - A monthly supplement of jagran.com which is concentrating on educational
content, career related queries, personality development, and updates on science
and technology.
Cine Maza- A popular Bollywood news and reviews channel of Jagran.com
giving information on Bollywood, top 5 releases, Box office hits, fact files of
actors and actresses with biographies and latest releases.
The Hindu
28
1940 - First to introduce colour
1963 - First to own fleet of aircraft for distribution
1969 - First to adopt facsimile system of page transmission
1980 - First to use computer aided photo composing
1986 - First to use satellite for facsimile transmission
1994 - First to adopt wholly computerized integration of text and graphics in
page make-up and remote imaging
1995 - First newspaper to go on Internet
1999 - Becomes India national news paper
Supplements and features
Mondays - Metro Plus, Business Review, Tuesday - Young World, Education,
Book Review, Improve Your English, Wednesdays - Job Opportunities,
Thursdays - Metro Plus, Science, Engineering, Technology & Agriculture, Friday
- Friday Features, Saturday - Metro Plus Weekend, Sunday - Weekly Magazine,
Open Page, Literary Review
Daily features - This day that age, Religion, The Hindu Crossword, Sudoku
Online presence. The Hindu was the first newspaper in India to have a website,
launched in 1995.
29
Deccan Chronicle
Type :Daily newspaper
Format :Broadsheet
Editor :A T Jayanti
Founded :1938
Language :English
Website :www.deccanchronicle.com
30
Eenadu
31
Dainik Bhaskar
32
A few news-oriented websites
All electronic newspapers have launched the irrespective websites for the access to varied
contents of news through Internet. A Google search retrieved many news oriented websites.
Some of them are listed in Table 1.
Source: http://www.epapercatalog.com/india-epapers.php
33
E-newspapers from India
The demand for online newspapers has been increasing for the past few years with the growing
reach of Internet by offering the latest breaking news with a minute update. The websites of
some of the leading Indian e-papers are given in Table 2.
2 Deccan www.dc-epaper.com/
Chronicle
3 Financial e.mydigitalfc.com/
Chronicle
5 Global www.freepressjournal.in/
Education
8 DainikBhaskar digital.bhaskar.com/
9 DainikJagaran in.jagran.yahoo.com/epaper/
10 Business www.bsepaper.com/
Standard
Source: http://www.epapercatalog.com/india-epapers.php
35
CHAPTER 2
Objective :-
To find out the importance of print media with the reference of Dainik
To find out the marketing strategies of Dainik Jagran daily news paper.
To find out the brand perception analysis of daily news paper with special
To find out the customer preference of daily news paper with special reference
36
CHAPTER 3
Research Methodology
The method adopted for carrying out any project is called as Research
methodology. For this project the study is conducted among the customers of Daily
Sources of data – Primary (questionnaire) and secondary data (information
regarding both organizations through internet & booklets).
Data collection method & techniques – Questionnaire and interviews.
Sampling plan –
37
RESEARCH DESIGN
and analysis of the data in a manner that aims to combine relevance to the research
three types as
38
Descriptive Research Design:-
In this research design the objective of study is clearly defined and has
be studied.
steps necessary to effectively carry out research and the desired sequencing of
39
CHAPTER 4
Substitutes for print media are radio, television, e-papers, online newspaper, door to door
campaigns, exhibition, and pamphlet distribution.
Newspapers uses column of varying width. Some have six columns per page,
while others have eight or nine, which affects the size, shape, and costs of an ad.
Newspaper space rates vary with an advertiser’s special requests, such as preferred
position or color.
40
CHAPTER 5
The Indian Media and entertainment industry stood at Rs584 bn in 2008, a growth of
12.4% over the previous year. Over the next five years, the industry is projected to grow
at a CAGR (compound annual growth rate) of 12.5% to reach the size of Rs1052 bn by
2013, says a FICCI & KPMG report on the sector release. The report however, highlights
that the market environment has become increasingly challenging for the sector, on the
back of economic slowdown and the consequent slowdown in advertising revenues,
especially in the last quarter of 2008. Sectors like TV, Print, Radio and Outdoor which
depend on advertising revenues were largely affected and this is estimated to continue
into the current year too.
Advertising spends grew at CAGR of 17.1% in the past three years. Going forward, it
is expected to exhibit a robust growth rate at CAGR of 12.4% over the next five years.
Potential upsides could take this higher. Growing acceptance of the digital TV
distribution technology, entry of DTH players the success of many small budget movies,
and the rising competition in the regional market were some of the key highlights of the
previous year.
Rajesh Jain, Head Information, Communication & Entertainment, KPMG India said,
“Media companies are under pressure to change, innovate and re-examine their
existing business models. Players need to draw upon new capabilities to survive in this
environment. In the immediate future, media corporate is likely to focus more on
operating margins, and assess opportunities for consolidation, while building on core
strengths.” The projected 12.5% growth for the sector will be driven on the back of
41
factors like favorable demographics, strong long term fundamentals of the Indian
economy, expected rise in advertising to GDP ratio compared to developed economies
and increasing media penetration. The focus of industry players too is changing; with a
strong emphasis on profitable growth in the current scenario. Hence, media companies
are increasingly concentrating on strengthening existing operations and assessing options
for growth through consolidation, while continuing to innovate. Factors like
Narrowcasting, Regionalization, Internationalization, Organized Funding, Digitization
and Deregulation have become the ‘buzzwords’ in the industry. The Indian Print Media
industry is estimated to have grown by 7.6% in 2008 and reaching around INR 172.6
billion in size. The industry is projected to grow at a CAGR of 9% over the next five
years and reach around INR 266 billion in size by 2013. Growth in the Print media
industry is achievable through sustained growth in advertisement revenues due to
increased advertising spends from emerging sectors such as Education, Organized Retail
and Telecom, improving literacy levels in the country, optimization of cover prices
leading to improved penetration and growth in sales volume, more launches in the niche
segment, like newspaper supplements and specialty magazines, by players. The industry
needs to invest in quality improvements, especially in regional media to attract
advertisers; collective negotiations and bulk purchase of newsprint, constitute forums to
encourage and promote regular reading habits among youth, adopting innovative
practices like trading media space in publication platforms in return for equity and
improve organizational ability to attract and retain talent.
The structure of the Indian print media industry is highly fragmented with importance to
regional dominance. The Indian print media segment primarily comprises newspaper
and magazine publishing.
42
As per PwC report, the print industry is expected to grow from Rs 128 bn in 2006 to
Rs 232 bn by 2011, at 12.6% CAGR. While the newspaper industry is estimated at Rs
112 bn, the magazine segment is valued at Rs 16 bn.
Growth drivers
Higher literacy levels: In 2006, the literacy levels increased to 71.1% as compared to
69.9% in 2005. While rural literacy is at 64.8%, urban literacy touched 85.3%. Currently
Indian print media is estimated to reach over 220 m people, and has immense growth
potential since close to 370 m literate Indians are believed to not be served by any
publication. Also, the reach of newspapers is only 27%, as compared to the global
average of 50%.
Lower cover prices: Earlier, due to strong hold over a region, the newspaper had
higher cover charges. However, with increasing competition and venture into newer
regions the companies have reduced the cover prices to augment more sales. Many
English dailies are sold for as low as Re 1 or Rs 2. The initial subscription offers of
‘DNA’ and ‘Hindustan Times’ (HT) in Mumbai, during their launch period, further
reduced the cost of the newspaper to around 50 paise for an average issue
Higher ad spends: Print media accounts for 48% of the total Rs 137.5 bn advertising
spend in the country. However, the ad spend in India is just 0.4% of GDP as against 0.5%
43
in China, 1.3% in the US and a world average of nearly 1.0%. With rising consumerism
and growing interest from domestic and global brands in Indian market, the growth in ad
segment is expected to be strong.
As per the registrar of newspapers, there were approximately 6,529 daily newspapers as
of March 2005. No single newspaper had a national circulation. In 2006, India had the
second largest circulation of newspapers with 88.9 m copies per day; second only to
China with 98.7 m copies a day.
44
Newspaper Place of strong hold
Fragmented industry
The regionalism aspect is clearly visible in the newspaper sector. The print media is
further divided on the basis of the languages. Of the daily newspapers, about 46% are
vernacular, 44% are in Hindi and 10% are English. Hindi and vernacular language
newspapers offer a local and regional flavor to their readers.
The content and circulation of English-language newspapers, on the other hand, are
largely focused on the primary urban centers. Approximately 7% of the population in
urban areas read English-language newspapers, compared to a readership of only 0.3% of
the population in the rural areas. (Source: IRS 2005) In contrast to this, Hindi-language
newspapers have a proportionately larger readership in rural areas, in addition to their
strong presence in urban areas, with a readership of approximately 15% and 5% of
persons in urban and rural areas, respectively.
45
The newspaper industry is regionally divided, with existing players enjoying strong
brand loyalty. For e.g. Times of India follows strong brand loyalty in Mumbai and it was
difficult for Hindustan Times to enter Mumbai.
The newspaper industry has relatively high entry barriers due to the strong brand equity
of existing players. Also, existing players have strong control over the distribution
network, making it difficult for new players to enter.
Most Indian print players continued to dominate the local regions and did not enter
new territories, mainly due to lack of funds. However, foreign investment regulations
were relaxed in 2002. Currently, up to 26% foreign direct investment (FDI) is
permitted in newspapers and periodicals dealing with news and current affairs. In non-
news publications, 100% foreign investment is permitted. Since the changes in the
regulation many foreign investors have taken strategic stakes in the domestic print
media companies.
Going forward
46
CHAPTER 6
Cost structure
The nature of the newspaper industry's cost structure is causing the field's current woes and
will require transformation in order to reduce fixed costs by outsourcing printing. The
current cost structure leaves revenue generation sectors well under funded with content
creation and advertising sales receiving just 14 percent and 16 percent of the cash operating
costs respectively. On the other hand, 70 percent of costs are devoted to print distribution
and corporate expenditure. As revenue from advertising continues to decline the large cost of
outsourcing printing is causing huge cash flow problems for newspapers.
More recapitalization and closures are imminent unless newspapers can begin to better
monetize digital content and cut structural costs to rival increased competition in the
news industry.
Print media industry desperately needs to increase their cover price, but the only reason for
pegging the cost at ~10% of the cost of production is due to the fear that no one will buy
them because rival papers may become cheaper. Hence, they are heavily dependent on
advertising to take care of costs and generate revenue. Recently, many newspapers revised
cover prices. Hindustan, Dainik Jagran and Amar Ujala raised their cover price in Meerut
and Dehradun to Rs 3 from Rs 2.50. Similarly, in Bihar and Jharkhand, Dainik Jagran,
Prabhat Khabar and Hindustan raised their cover price by 50 paise to Rs 4. The cover price
of Hindi dailies in UP and Uttarakhand are expected to go up to Rs 3.50 and those in
Rajasthan to Rs 3. English dailies, too, have raised their cover price in many
47
markets, though Delhi seems to be unaffected as of now but for The Hindu which
raised the price from Rs 2.50 to Rs 3.
The economic downturn appears to have taken a severe toll on the Indian print media
industry. It's bleeding, given the conditions across all platforms. With dipping Ad
revenues due to the slowdown and high cost structure, the print media industry will
continue to face pressure for the next two to three quarters. Layoffs and salary cuts
may become a necessity for many businesses to survive as they have added
substantially to their capacities.
1. Advertising.
2. Circulation.
The circulation revenue recovers only a part of the cost of producing a newspaper. The
bonus of making a profit after all costs is on the advertising revenue. If circulation falls,
advertisers shy away from using the medium. On the other hand increases in circulation
to take reflect on ad revenue takes time. Newsprint account for about 70% of the cost of
production, but any increase in circulation does not decrease per unit cost. Also any
marginal increase in advertisement revenue due to increase in circulation is not apparent
in the short run.
The print media industry will continue to face pressure for the next two to three quarters,
as per the analysts. Layoffs and salary cuts may become a necessity for many businesses
to survive as they have added substantially to their capacities.
Relief on newsprint cost Due to the current economic slowdown impacting the print media
industry, the Government has announced special customs duty exemptions for the
48
newspaper & magazine publishing industry. Till now, a custom duty of 3% was
applicable on newsprint and 5% on lightweight-coated paper. A special additional duty of
4 per cent was also levied, which has now been waived.
Newsprint prices, which constitute more than 70% of the cost of producing a newspaper,
shot up last year by around 60-65%. The concessions announced by the Finance
Ministry include:
• Full exemption in customs duty on newsprint and glazed newsprint used for
printing newspapers
• Information and Broadcasting ministry came to the rescue of small and medium
newspapers by announcing a revised policy of releasing Government advertisements.
• Under the new policy, all ministries, departments, and subordinate offices of the
Government of India can issue tender notices directly to empanelled newspapers
at DAVP rates.
49
Economies of scale and economies of scope
A survivor analysis for daily newspapers from 1964 to 1981 indicates that papers with
5,000 or less circulation are withering away, while papers in the 100,000-500,000
circulation size range are less likely to have gained local or national market share, once
intercity shifts in demographic variables are considered; no statistically significant
increase in the distribution of firms in these ranges is evident. On the other hand, the
10,000-100,000 circulation size classes have experienced substantial increases in the
number of firms and in market share. The increased number of firms in these classes
represents a statistically significant shift in the size distribution of firms, and the log-odds
ratio of increased national or local market share for existing papers in this size range
substantially exceeds that for papers in the 100,001-500,000 size classes. Finally, the
500,000 plus circulation size class has experienced an increase in market share and an
increase in the number of firms. While the shift in the size distribution of firms is not
significant, the log odds ratio of increased national and local market share is greatest for
this size class. Except for the very largest class, these results are consistent with the
conjecture that the new technology of daily newspapers has reduced first copy costs and
lowered the minimum efficient scale. This conclusion is buttressed by the performance of
firms in the 10,000- 100,000-circulation size range in both national and local markets,
and taking intercity shifts in demographic factors into account. Moreover, the second
smallest size category, 5,001 - 10,000, while not experiencing a statistically significant
increase in the number of firms, did demonstrate a high log odds ratio of increased
market share when demographic variables are included in the analysis. The performance
of the 500,000 plus circulation size class is difficult to interpret.
The economies of scope increases with increase in number of advertisers where they get
high return and in turn help in reduction in cost of the newspaper as the processes utilize
the same resources.
50
Value added, logistics and labor
The value added for newspapers and magazines are advertisers and readers who are
capable of attracting higher revenues or adding to its differentiation. The value added
advertisements are commercial ads, festival wishes, birthday wishes and anniversaries.
• Paper Procurement: Optimize planning, supplier short list, and price negotiation, with
on-demand information about past performance, costs, and the current state of available
paper and demand.
• Paper Quality and Faults: Alert and informed about faults such as tearing and miss-
prints during set-up and production. Match faults to paper type, grade, roll and supplier.
Today the distribution in print media industry is viewed as a value added or ancillary
service. Ancillary services have been identified a challenge in printing industry for
growth opportunity. Distribution is a customer service offering that starts when the job is
scheduled. Efficient distribution involves the use of market expertise to negotiate freight
rate and logistics services, routing, and overall compilation or management and
51
organization of products and distribution. Other aspects of distribution include
warehousing, shipping, inventory management, fulfillment and kit packing.
Newspapers require unique definition of their product, information, and financial flows to
be adapted to supply chain and other quantifiable management programs. The primary
supply chain flow for newspapers is the outbound product flow and its associated
information flow. Newspapers have successfully separated subscriber and advertiser cash
flow timing from product delivery. As such, all financial flows within the newspaper
supply chain are either discretionary (how much newsprint and ink inventory is carried),
or direct costs resulting from the supply chain in place.
The primary components affecting the total supply chain cost for a newspaper are:
52
Balancing time and workflow across the supply chain will yield the largest results. A
dynamic cost and process flow model of the newspaper supply chain will be essential in
keeping pace with changing needs and demands within the newspaper industry.
In print media industry the labor market is highly skilled. Number of employees is the sole
basis of the industry. Skilled labors required are press operator, information system analyst,
HR, reporter, journalist, editor, librarian, sales supervisor, promotion manager, publisher,
general manager, web manager.
53
CHAPTER 7
Marketing
Market segmentation,
Marketing strategies
Marketing practices
The print media industry has low entry and exit barriers. However, there is intense
competition for market share in the industry. Many players are well established in their
respective regions and it is difficult for new players to penetrate the market. The
market for print media can be segmented based on geography, demographics and
psychographics. Many players used technology and marketing strategies to emerge as
global giants. In India, the print media industry is in the growth phase.
There are a few well-established players in the industry, with each player constantly
trying to increase its market dominance. The decision of the Indian government to allow
26% FDI in Indian print media has received mixed response from media houses. Some
players strongly opposed the move while others welcomed it. Promoting, advertising,
and marketing products or services are the most basic ways to drum up new business.
But it should come as no surprise that the vast proliferation of media seen since circa.
2000 has been wreaking havoc with traditional approaches to marketing and promotion.
54
A partial list of the media available to marketers includes, but is not limited to:
55
Part of the marketing problem is that, thanks to inexpensive electronics and display
technologies, almost any surface can be a marketing vehicle. After all, consumers are
awash in advertising and marketing messages, which all intermingles to create a dense
wall of background noise. The Industry Measure has conducted extensive research into
media channels and the ways in which those channels are changing. In a recent survey
of ad agencies, for example, it was found that:
70% of ad agencies currently use print direct mail (not variable) to market
and promote their and their clients’ services or products;
52% currently use Web advertising (banners, rich media, etc.);
45% currently use outdoor/display advertising (signs, posters, fleet graphics); and
45% also currently use broadcast radio.
There are certain guidelines marketers can take to ensure that their media rupees are not
spent in vain.
First, identify the target audience and think carefully about the best medium/media to
reach them. Different demographic groups (age, gender, income, even geographical
location) have different media habits. Print may not be the best way to reach certain
groups, while the Internet may not be the best way to reach certain other groups.
56
Second, combine media. Relying on just a print direct mail campaign may garner
some new business, but combining that with a direct e-mail blast, an outdoor
advertising campaign, radio spots, or some other combination of media will help build
brand awareness.
Third, to keep the advertising message and design elements consistent across media.
Using the same logo and logo colors, the same fonts, the same tagline phrasing, the
same or similar text, etc., in all your media permutations. This helps with branding and
reinforcing the message. At the same time, the adoption of “design-once-reuse-many”
strategy helps save costs on design and lets you get more “bang for your buck.
In print media industry, newspapers and magazines are difficult to use for direct marketing
because the ads have to compete with the clutter of other ads and because the space is
relatively expensive, response rates and profits may be lower than in other media
57
CHAPTER 8
Innovation
Types of innovation
The newspaper industry is going through a "disruptive" change, a phenomenon that has
transformed industries such as retailing, computing, airlines and automobiles. The bad
news is that when the dust of disruptive change settles, historically even the best-run
companies typically end up in the loser's column. Disruptive innovations typically offer
lower performance along dimensions that firms consider critical. In exchange, new
benefits are introduced along dimensions such as simplicity, convenience, ease of use, or
58
low price. In the media industry, blogs, Google, eBay, Monster.com, and freely
distributed commuter papers each fit the pattern of disruptive innovation. Each emerging
competitor lacks something that is core to most newspaper companies' value proposition.
Some can't match a newspaper's broad distribution network. Others can't compete with
the newspaper's detailed reporting capability or local reach. All, however, compete along
dimensions of performance that are different than the traditional metrics emphasized in
the print newspaper business. Three barriers typically make it difficult for market-leading
incumbents to get disruption right:
1. Fail to spot the disruptive change early enough: Disruptive change tends to start
innocently at a market's fringes. Market leaders tend to dismiss early disruptive
developments because they just don't affect their core business.
2. Fail to allocate sufficient resources towards disruptive offerings:
Disruptive innovations often have lower performance and lower prices than
established offerings. Companies find it hard to prioritize spending time and
money on disruption when they have seemingly attractive opportunities in their
core business.
3. Force the disruptive initiative into the existing business model and product
concept: Most newspaper companies still focus a disproportionate share of time
and attention on their print product. While not ignoring that product, allocating
more resources towards new disruptive products makes sense. It seems clear that
newspaper companies must re-imagine their content and business models if they
hope to succeed. Despite the sense of doom and gloom that pervades the industry
today, there are signs of hope. While newspaper readership is declining,
information consumption is increasing. Almost every newspaper company has
made the transition to the Web, with their properties attracting new audiences and
new advertisers. In fact, the interactive nature of the Web allows forward-thinking
companies to completely change the way they interact with readers and
advertisers. Readers can become content creators and community builders.
59
4. Web sites can serve advertisers that would eschew the static nature of print.
Additionally, companies are experimenting with new approaches. Dozens of
companies have launched free papers targeted at young readers or recent
immigrants. Newspaper companies should look at their local market to identify
jobs that people can't get done well today. They should think of the great assets
they have at their disposal — top-flight journalists, strong brands, in-depth local
knowledge, healthy balance sheets — and think how they could reconstitute those
assets to address important, unsatisfied jobs.
The Cost dimension in media product innovation requires a media organization to obtain
a cost advantage through product innovation, thus enhancing the probability a media
product is chosen. The Value Analysis Model sees “cost” as the “fee incurred in a
product’s life circle”. The cost advantage the media product innovation want to realize
include low media consumer cost and low media product cost. However, under the usual
circumstances, the above-mentioned two costs are in a zero-sum relation -- A decrease of
one of them will inevitably cause an increase in the other. Given that, before media cost
innovation can be realized, two questions need to be tackled: How to cut media
consumer cost, and how to cut media product cost thus caused. Media Product Cost is
closely related to the learning curve, experience curve; scale economy, economy of
scope and innovation method. This is because: Firstly, as a media organization gains
experience in its targeted market, its pinpointing skills will increase and thus can better
satisfy the media users’ needs. Increased targeting skills will consequently reduce the
redundancy in the content it produces and increase the efficiency as a media user fulfills
its needs while using the content in a given time span. As the content redundancy is cut,
the media can offer more space for advertisements, and the media’s attraction to ads
increases accordingly. Meanwhile, increased accuracy in information collection and
processing will greatly cut resources consumed by the reporting and editing team.
60
CHAPTER 9
Strategies used in the industry, Porter’s generic strategies model, porter’s five forces
model and analysis using it, element of industry structure, porter’s value chain model
analysis, swot analysis, concept of generic value chain, concept of growth share
market matrix, company position .
The pricing of ad space in newspapers has always been tricky. In India, the English
dailies are seen as premium and the ad space in these is sold to clients, that are into high
end products and hence the ad spaces in English dailies always sells at a premium. To
understand these factors which affect the pricing strategies of dailies and bundles of
dailies models were created during the course of the study based on rate cards of Indian
newspapers. The model developed to identify pricing strategy of dailies used circulation,
size of the ad and the location of the ad on the newspaper as some of the key factors of
determination. The model was developed by regressing ad rates with the above
mentioned factors.
Brand image, duplication of readership and area of circulation were some of the
additional factors that were considered while developing a model for the pricing of
bundled services. Since these variables were qualitative, dummy variables were assigned
and regression of these multi variables was done using SPSS. The models developed
helped in identifying the intensity of impact of each factor on ad rates and the discounts
offered. But on a practical case, the impact deduced was on a smaller scale. It was
found, through interviews, that client relationship actually plays a key role than the
above mentioned factors. Thus the empirical model developed helped identify the
correlation between the factors mentioned and the ad rates and the base rate on which all
these factors are applied depends in personal relationship between the publisher and the
advertiser.
61
SWOT Analysis
STRENGHT:
WEAKNESS
Skilled labor
Short life span of the product.
Circulation.
OPPORTUNITY
62
THREAT
Economic downturn.
Consumer migration to TV media.
Radio
Porter’s generic strategies model
Generic strategies were used initially in the early 1980s, and seem to be even more
popular today. They outline the three main strategic options open to organization
that wish to achieve a sustainable competitive advantage.
63
1. Cost leadership
In the case of media products, means they should be offered at a price lower than their
competitors’ but with as good benefits, or, the unique benefits the media products offer
can over-offset the premium.
2. Differentiation
3. Focus
Focus strategy is also known as a 'niche' strategy. The clutter of ads has now spilled out
on the number of channel availability due to which people are spoilt for choice. Thus
Niche channels are the only way to maintain viewer loyalty. Some premium-branded
newspapers, a bit like The Sunday Times is more niche-orientated.
64
Porter’s five-force model
The five forces which one must consider to analyze any industry are the rivalry between
the firms within the industry being analyzed, the bargaining power of buyers, the
bargaining power of suppliers, the threat of substitute products or services, and the threat
of new entrants (also known as barriers to entry). They are also shown in the diagram
below. Initially propounded by Harvard Business School Professor Michael Porter, the
Five Forces framework has been accepted as a strategic framework, which one can apply
to analyze any industry.
65
DATA TABULATION, ANALYSIS AND RESULT
Respondent Profile:-
1. Gender profile :
Table 1: Indicating gender profile of the respondents
Percent
Male 61
Female 39
Total 100
Gender Profile
Female
39%
Male
61%
Interpretation:
61% of the respondents were male and
39% of the respondent s were female.
66
2. Age profile:
30%
15-25
70%
Interpretation:
67
3. Occupation of the respondents:
Table 3: Indicating Occupation of the respondents
Occupation Percent
Students 50
Employed 29
Self employed 21
Retired person 0
House wife 0
Other 0
Self employed
21%
Students
50%
Employed
29%
Interpretation:
50% of the respondents were Students,
29 % of the respondents were employed,
21 % of the respondents were Self Employed,
68
Analysis:-
Reading Times
Daily
7%
Once a week
23%
4 or 5 times in a
week
31%
2 or 3 times in a
week
39%
Interpretation:
39% respondents reading e-news 2 or 3 times in a week,
31% respondents reading e-news 4 or 5 times in a week.
23% respondents reading e-news once a week.
69
2. Why don’t you prefer online newspapers over traditional newspaper?
Reason Percent
Too much online ads 3
Too much page loading time 33
Online net availability 64
Convenience 0
Total 100
Convenience Too much
0% online ads
3%
Internet
availability
64%
Interpretation:
64% of the respondents are not reading e-newspaper because
lack of internet facilities,
33% of the respondents irritate to read e-news because it takes
too much page loading time,
3% of the respondents irritate to read e-news because there are
so many online ads,
70
3. Compared with the traditional newspapers, what aspects do you think
are the advantages of online newspaper?
others
0%
Environment
Convenience
21% friendly
21%
Timeliness
58%
Interpretation:
58% of the respondents read online news for time saving.
71
4.Update information about news
Satisfy
12%
Dissatisfy
40%
Average
48%
Interpretation:
72
5. Loading image or any picture related to news
Average Dissatisfy
47%
50%
Interpretation:
73
6. If you received updated news or information via SMS or E-Mail it
would be?
Helpful
38%
Quite Helpful
58%
Interpretation:
74
FINDING OF STUDY
Finding of Study:
1. The study shows that 40% respondent are using internet and they prefer e-newspaper
2. The study shows that 64% respondent are unable to read e-newspaper continual
3. The study shows that 58% of the respondents prefer e-newspaper because it saves time
Very often responded do not express their true feelings. In such case their habit,
preference, practice cannot be assessed correctly.
Some of the respondents refuse to give the important information best known to them.
Lack of experience.
However in spite of these limitations all efforts have been put to make the report
correct, genuine, and fulfilling the objectives of the reports.
75
QUESTIONNAIRE
The questionnaire will take around 10 minutes. Your responses will be kept confidential and
only for the purpose of this study.
e) Very Helpful
f) Quite Helpful
g) Helpful
h) Not Helpful
76
Personal Information
1. Name
2. Gender
a. Male
b. Female
3. Profession
a. Student
b. Employed
c. Self employed
d. Retired persons
e. House wife
f. Others
4. Age Group
77
Bibliography
Reference:
www.indiastat.com
www.allindianewspapers.com
www.economywatch.com
www.docshoc.com
www.pluggd.in
www.scribd.com
www.quickmba.com
78