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A PRESENTATION ON

sales and Distribution management of


Newspapers
{A case study Of Hindustan Times Ltd.}
presented by (GROUP-H)

vaibhav jain
sonu agarwal
2008 - 2010
Industry outlook
Newspaper publishing
• With growing circulation and readership
expected to translate into strong growth in
advertising revenues
• Newsprint prices likely to remain soft
• Advertisers attempt to be the beneficiaries
of higher disposable incomes and
increasing aspirations of the readers
Publication and Region of
dominance
PUBLICATION REGION OF DOMINANCE

Hindustan Times Delhi, Bihar


Rajasthan patrika Rajasthan
Dainik jagran Central and north India
Dainik Bhaskar Rajasthan and MP
Hindustan North India

The Hindu chennai


Media and entertainment industry-
Revenue( in Rs billion )
2006 2007 2008 2009 2010 2011 2012
T.V 197 227 260 298 346 405 471
NEWS 115 126 137 149 165 183 205
PAPER
FILM 85 101 118 141 161 189 217
RADIO 3 4 5 7 9 11 25
OTHERS 23 29 36 44 54 67 84
MUSIC 6 7 8 9 10 11 12
Newspaper industry revenue
160
In Rs. billion
140
120
100
A d v e rtise m e n t r e v e n u e
80
c ir c u la tio n r e v e n u e
60
40
20
0
2 0 0 42 0 0 52 0 0 62 0 0 72 0 0 82 0 0 92 0 1 02 0 1 12 0 1 2
Newspaper circulation and
readership (per day)
350

300 294
278
262
250 247
232
217
200 204
191
circualation
168 Readership
150

100 80 85
70 75
60 65
50 55
45
50

0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Advertising spends (in Rs billion)

6 163 billion 414 billion


3 1 5
1 6 7
35
41 1

41
39 9
7

newspaper magazine newspaper magazine


t.v film t.v film
radio outdoor radio outdoor
internet internet

Year-2006 Year- 2009


Share of language in advertising
4% 3%
6%
english
12% hindi
others
50%
marathi
tamil
malayalam
25%

Year - 2009
HINDUSTAN TIMES
Company Profile

• HT Media Ltd, founded in 1924 under the flagship


of Hindustan Times.
• Combined Daily circulation:2.25 million copies.
(HT&HH)
• Combined Readership base:14.49 million readers.
( HT&HH)
• Installed capacity:17 printing facilities with an
installed capacity of 1.5 million copies per hour.
The Delhi-based English newspaper,
Hindustan Times, is part of the KK Birla
group and managed by Shobhana Bhartia,
granddaughter of GD Birla. It is owned by HT
Media Ltd. The KK Birla group at present
owns 69 per cent stake in HT Media,
currently valued at Rs 834 crore.
Contd….
Brands Working under HT Media ltd.

HT Media ltd.

Hindustan times

Hindustan

HT NEXT

KADAMBINI

NANDAN

MINT

SHINE.COM
Major Players
• Newspapers
– Times of india
– Hindustan Times
– The Hindu
– Indian Express
– Malyalam Manorama
– Rajasthan Patrika
– Dainik Bhaskar

• 65% of the market is controlled by these 7


publishers
• Single edition circulations
– Hindu 937K
– Hindustan Times 909K
– Anand Bazar Patrika 877K
– Times of India 844K
– Rajasthan patrika 998k
– Dainik Bhaskar 1003k
– (Three of these are in English)
Business standard

• Business standard is a business newspaper from HT Media Ltd

• Launched in collaboration with The Wall Street Journal on 1


February 2007.

• The design of the bs newspaper is geared towards presenting


business and financial information in a compact format.

• Along with the business newspaper publication, an online version


named “Business standard ol" was also developed

• The “business standard" section covers books, travel, personal


technology, parenting, and health. Monday printings also feature
“BS campaign"
Circulation of business
standard

• Business standard has dedicated 5


editions in Delhi, Mumbai, Bangalore,
Chandigarh and Pune with total circulation
of 30,02,900 copies as of June 2008
• Average reader belonging to the age
group of 35 to 44.
Fever 104- "It's All About The Music".
• It is a product of HT music and
entertainment Co Ltd.
• It broadcasts at 104.0 Megahertz in Delhi,
Mumbai, Bangalore and Kolkata.
• The format is a mix of Hindi Bollywood
hits, Indipop and English music.
• joint venture between HT media ltd. and
Virgin Radio.
Joint venture with Hubert Burda

• The JV leverages HT Media's world class


expertise in printing and publishing, and Burda's
large and global multimedia operation,
combining it with India's unique competitive
advantage in several current and new business
platforms.
Joint venture with Hubert Burda
• printing expertise global.

• captures opportunities in the booming, high-end magazine and catalogue


printing space in India and the Asia-Pacific region

• Burda will outsource some of its global printing requirements to the joint
venture.

DSCA
HT’s world class
expertise in
printing and
publishing
CAPABILITIES UNIQUE
ADVANTAGE
VCS

Burda's large and


global multimedia
AAR
operation
Why the Six Sigma Way

• The primary objective being cost savings.


• Intense competition from TOI which challenged the
“market-leader” status of Hindustan Times in the capital
city of Delhi.
• listen to the customer and measure self against what they
want and when they want it
• Benchmark against the best in the class to sustain the
competitive advantage.
• more organizations were adopting it to improve their
business results
BENEFITS - SIX SIGMA
By adopting this strategy, immediate benefits
were realize in the areas of:
• Reduction in Newsprint- waste across
locations.
• Using Six Sigma projects to develop a new
wage agreement.
• Overall reduction in consumables in the
printing process.
SWOT Analysis
• Strengths
• Broad market coverage
• Geographic selectivity by market
• Editorial selectivity
• Retail Environment
• Wide variety of sizes
• Copy detail available
• Strong one day reach
• Weakness
• Limited positioning guarantees
• Low production quality
• High clutter
• Multiple markets buys can be expensive
• Minimal pass along
• Opportunities:
• Creative adaptable to Yellow
• Pages?
• Demonstrated commitment to local market
coverage
• Geographic selectivity by market
• Co-op Money and employment generation
• Threats
• Fast closes; advertisers can get in quickly
• Can be a daily or weekly commitment
unlike Yellow Pages yearly commitment
• Technological change
• Internet and broadcast media dominance
Distribution Of News Paper
DEFINITION
THE AMERICAN MARKETING ASSOCIATION
DEFINES:--
CHANNEL OF DISTRIBUTION AS—
“An organized network of agencies and institutions
which in combination perform all the activities
required to link producers with users to accomplish
the marketing task.”
DISTRIBUTION:-
Is the physical flow of goods through channels and
CHANNELS:-
Is coordinated groups of individuals or firms that
perform functions adding utility to a product or
services.
Future growth of Newspapers

• Revenues to cross Rs 200 billion by 2012


• Despite the threat from the Internet and
television, newspapers will not go out of fashion
in India
• From an estimated Rs 126 billion in 2007,
• Expected revenues of newspaper publishers to
grow at 10.2 per cent over the next 5 years to
touch Rs 205 billion by 2012.
Distribution
Distribution Channel
Channel
Functions
Functions
Information
Information
Transfer
Transfer Communication
Communication

Payments
Payments Negotiation
Negotiation
Physical
Physical
Distribution
Distribution Ordering
Ordering
Risk
Risk Taking
Taking Financing
Financing
Zero-level channel

One-level channel
Retailers
Manufactures

Consumers
Two-level channel

Wholesalers Retailers

Three-level channel

Wholesalers Agents Retailers


M M M M M M

Agents/
Brokers MSF MSF MSF
Manufacturer-Owned Stores

W W
Door-to-Door

W
Mail order

– Time Salesperson
Consignment to Part
House Party

R
R R R R

Customers
M = Manufacturer MSF = Manufacturer’s Sales Force
W = Wholesaler R = Retailer (including online e-commerce
Figure :- Marketing Channel Alternatives – Consumer Product
• Major news papers…..
• Rajasthan patrika
• Dainik bhaskar
• Times of india
• Hindustan times
• Business standard
• Economic times
• Dainik navjyoti
List of Agents
• Major whole sellers………
• Chaman news agency(18000)
• Sunil news agency(14000)

• Retailers……
• Oswal news agency(6000)
• H wheeler(4000)
• Mahendra news agency(7000)
• Goyal news agency(5000)
The growth drivers are…..

• Continuing growth in ad spends


• Growing newspaper circulation and
readership
• Increasing literacy levels
THANK YOU