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Indian Express – The Brand

A Presentation by Anant Gupta (115) Srikanth Jha (123) Ritesh Joshi (125) Ramkumar K (142) Ayan Sengupta (144) Priyanka Gupta (163)

Agenda
1 3 2 3 4 3 5 6 Market Analysis Competitor Analysis Consumer Analysis Company Analysis Brand Equity Insights

Market Analysis
Print Media Segment consists of Newspaper and Magazine Publishing 60,000 registered newspapers in India 6.8 % growth in reach of English dailies from 191 mn in 2005 to 204 mn in 2006 Reach of 45% in urban and 19% in rural areas Indian Newspaper Market at $2.68 bn in 2006 and expected to grow @ 13% CAGR through FY 2011 Infrastructural issues in rural areas during harsh seasons lead to seasonal fluctuations in rural/semi urban areas Surrogates : Literacy Rate, Demographic Distribution

Newspaper Readership

Print Media
Total Print Media Industry - Revenues
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

US$ million

238 2,369

254

269

285

300

315

2,524

2,680

2,840

3,005

3,171

2004E

2005F

2006F Newspaper

2007F Magazine

2008F

2009F

Source: Industry Estimates & PwC Analysis

F- Forecast

Newspaper Industry

Source: Industry Estimates & PwC Analysis

F- Forecast

Competitors of The Indian Express
 Major Players
       The Hindu The Hindustan Times Times of India Deccan Chronicle Economic Times The Telegraph Vernacular Dailies
• Dainik Bhaskar • Dainik Jagran • Daily Thanthi,etc

 Niche Players
      Mumbai Mirror DNA Midday Deccan Herald Statesman Vernacular Magazines

 Future Players
 Deccan Chronicle  News Websites  News Channels

   

Internet News Websites Blogs Magazines News Channels

Competitor Analysis
 HT leads the way in
Delhi…..
Subscription(in Millions)

Readership Numbers in Delhi(2007)
2.2 2.1 2 1.9 1.8 1.7 1.6 HT TOI Newspaper Navbharat Times 1.9 1.8 2.13

 ….but trails way
Subscription(in millions)

behind in Mumbai

Readership Numbers in Mumbai (2007)
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1.55

0.76

0.63

0.5

0.35 0.12

TOI

Mumbai Mirror

DNA

Midday

HT

Indian Express

Newspaper

Competitor Analysis (Contd)
 Times leads again in
Bangalore…..
Subscription(in millions)

Newspaper Readership in Bangalore(2007)
0.6 0.5 0.4 0.3 0.2 0.1 0 TOI Deccan Herald Newspaper The Hindu 0.057 0.5

0.3

Subscription(in millions)

 ….While Hindu is
right on top in Chennai

Newspaper Readership Numbers in Chennai
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 The Hindu Deccan Chronicle New Indian Express Newspaper 0.064 0.002 TOI 0.26 0.66

Competitor Analysis (Contd)
 An unlikely “Telegraph” is
Subscription(in millions)

the leader in Kolkata

Newspaper Readership in Kolkata
0.6 0.5 0.4 0.3 0.2 0.1 0 Telegraph TOI Statesman Newspaper HT 0.5

0.3 0.18 0.07

Readership of Indian English dailies
8000 7000 6000 5000 4000 3000 2000 1000 0 Readership(in '000s) 6781

3331 2209 1311 919 774 735 Mumbai Mirror 565 Indian Express 539 DNA 539 Tribune 509 Midday 498 Deccan Herald

Times of Hindustan India Times

Hindu

Deccan Telegraph The Chronicle Economic Times

New spaper

Competitor Analysis (Contd)
 English Dailies are no
match for Hindi dailies which occupy the top two readership positions overall
Subscription(in million) 25 20 15 10 5 0 Dainik Jagran Dainik Bhaskar TOI Dailies The Hindu Hindustan Times 7.4 4.5 3.85 21.2

Readership of Top dailies
21

 ET is a clear winner in
Subscription(in million)

Readership of Business Dailies
1 0.8 0.6 0.4 0.2 0 ET Hindu Business Line Year Financial Express 0.17 0.09 0.86

the business section

Competitor Analysis (Contd)
 Jagran Prakashan
 Brings out Dainik Jagran  Strong in the Hindi belt (UP, MP, Bihar) with a readership of 21.2 million  High consumer with 30 editions and 210 subeditions  Now entering out-of-home and Event management

 Deccan Chronicle
 Building dominance in the south with a readership of around 1 million  Strategic investment in Odyssey (Retail) and using the internet  Leader in AP and presence in key metros through its acquisition in Asian Age

Competitor Analysis (Contd)
 HT Media Limited
 Offers a mix of metrofocussed and northern Hindi belt (Hindi and English dailies)  Synergistic presence in Radio (Fever 104) across 4 cities  Recent foray into business (Mint), radio and internet  Strong distribution setup  Recent expansion in Mumbai,Jharkhand, Delhi and Uttar Pradesh (Agra, Kanpur, Meerut)  Wants to position itself in the Hindi market segment, garner advertising revenues and position Mint as a business newspaper

 The Hindu
 Diversified portfolio of Newspapers, magazines and publications  Good Editorials  Revamped Sportstar a year back  Status symbol in most of the south-indian houses

Competitor Analysis (Contd)
 Times of India Group
 ET, Navvbharat Times, Mumbai mirror, Radio Mirchi, Planet M, Zoom, Femina, Filmfare,etc  Has country’s largest advertising revenues  Adopted “Blockading” strategy in Mumbai by launching Mumbai Mirror  Considering entering the Public Relations (PR) Business

Competitor Analysis (Contd)
 Complements
 News websites of the respective newspapers

 Substitutes
 Vernacular newspapers  Magazines  TV News Channels
• Satellite TV has grown in reach from 207 million individuals in 2005 to 230 million individuals in 2006

 Blogs  Radio
• Reach has increased from 23% to 27% of population • Radio FM increased its reach from 76 million individuals in 2005 to 119 million individuals in 2006

Competitor Analysis (Contd)
 Other news Websites  Mobile Phones
 Proportion of population adding Value-added Services (VAS) at least once a week has grown from 1.1% in 2005 to 2.7% translating to nearly 22 million individuals

 Hence, competition for the newspaper industry is
there to stay and companies need to be focussed on their area of operations

Company Analysis
 Journalism with Courage  Product Portfolio
       Indian Express Financial Express Loksatta LokPrabha Jansatta Screen ExpressIndia.com

 Also has a NorthAmerican edition  Promotional Programs
    Indian Express Innovation Awards Had a tie-up with Al-Jazeera Annual Journalism Award Annual World Press Event

Presence across population
SEC Print Media Reach in millions A1 A2 B1,B2 C D E1,E2 7 14 32 34 29 21 Reach in %age 95% 90% 81% 70% 53% 30%
Source : IRS Data

Primary Analysis Results
1. Our sample has 88% regular newspaper readers 2. With importance level of 1.72, newspapers stand good against their rivals 3. Indian Express is lacking in the area of Business and Entertainment news, and Supplementary that comes with it. 4. Indian Express badly in Paper quality, presentation and availability while it fares well in Moral Uprightness (Unbiased news) 5. Home is the preferred place for reading newspapers 6. It has a very low Brand recall value 7. Main competitors - TOI,HINDU, DNA 8. Good Brand Recognition among the regular newspaper readers 9. Positive Indicators: a. Consumption of more than 2 newspapers in middle and higher class families b. Growing importance of kids and women in making family purchasing decisions

Primary Interview Results
 1- Excellent
4 3.5 3 2.5 2 1.5 1 0.5 0

6- Poor
Comparison in News Categories

3.4 3.08 3.34 3 3.04 2.88 2.84 2.64 2.28 1.6 2.08 1.48

General Average Indian Express

En te rta in m en t

Ed ito ria Su l pp lim en ts

Po l it ic s

Bu si ne ss

Sp or ts

Primary Interview Results
 1- Excellent
4 3.5 3 2.5 2 1.5 1 0.5 0

6-Poor
Comparison of News Parameters
3.6 3.48 3.12 3.48 3 General Average Indian Express

2.56 1.68 2.04 1.12

2.92 2 1.64

Co nt en t La ng M ua or ge al up rig ht ne ss Pr es en ta tio n

Av ai la bi lity

Pr ice

Primary Interview Results

Brand Recall Performance
4% TOI Hindu 32% 56% Indian Express DNA

8%

Brand Equity Pyramid
Loyalty RESONANCE Engagement
Honesty Warmth Excitement History impressive, Political readers

JUDGEMENT Credibility
Quality Consideratio n
PERFORMANC E

FEELINGS

Lack of attraction

IMAGERY

Unbiased Coverage Brand recognition limited to English

Lost connection with GenX.

newspaper readers

SALIENCE

Insights
 Increase in literacy rates  However growth rate is greater in the rural
market (63.6% to 64.8%) than in urban market (84.4% to 85.3%)

Insights (Contd)
 Significant scope for growth as 359 million who
can read and understand any language do not read any publication. 20 million of these literate non-readers belong to upscale Sec-A and SecB segments  Improve quality of paper and presentation of news to make it more in tune with the changing times  Improve the quality of supplements, sports and the business sections and increase the news content. As one interviewee put it, “I can finish off Indian Express in 20 minutes flat”

Insights (Contd)
 Better marketing is required as brand recall is
very poor among the people  Try to aggressively target other readers through Word-of-mouth marketing. Provide attractive discounts to capture new markets
 Eg. Deccan Chronicle challenged Hindu’s dominance in Tamilnadu in a single year by coming out with a newspaper that sold for Re.1 and captured a huge market share

Business dailies…a huge untapped market
Penetration of business dailies Total households in Delhi & Mumbai SecA households in Delhi & Mumbai Circulation Penetration(%) Popularity of business news among college students and sec B households on a rise. Hence, try to revitalize the Financial Times
Source: NRS 2006 figures

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