Internship

INTERNSHIP REPORT (DRAFT

COPY)

Attention To:
Mr. Badiuzzman (Program Co-Ordinator)
& Internship Guide.

MARKETING STRATEGY OF
NEWSPAPER INDUSTRY IN
BANGLADESH: A STUDY ON DAILY
PROTHOM ALO
Internship Report

PREPARED BY
Md. Atiqur Rahman
BBA (Major in Marketing)
Registration No-00551
Roll-011
Session-2003-2004
E-mail: arahman1984@gmail.com
Patuakhali Science and Technology University
Bangladesh (www.pstu.ac.bd)

Marketing Strategy of Newspaper Industry in Bangladesh: A Study on The Daily Prothom Alo Page - 1-
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1.1 Executive Summary
A newspaper is one of the most important reading materials in the life of a literate
people. In the modern age, without a newspaper a person cannot think of his/her daily
routine life. The need for a proper marketing of the newspaper marketing has arisen
because of the rapid change in the communication process. An effective marketing
strategy is required to retain the current customers as well as to attract potential ones.
A newspaper as a product can satisfy the need for getting the information that helps in
decision-making process of the social and family life.
In Bangladesh, Bengali is widely used in every class of families. People read Bengali
newspapers to obtain information about national and international affairs. As people
of Bangladesh are getting conscious about the need information, the number of
readers of the national dailies is rising. At present, many national and international
organizations are operating their offices in Bangladesh. Foreigners working in these
organizations also read both Bengali and English newspapers by using the help of

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interpreters. The number of readers of Bengali newspapers is increasing day by day.
Currently, the largest circulated Bengali daily newspaper in the country is "The Daily
Prothom-Alo" with having an average circulation of 400,000 copies per day.
Marketing information system can help formulation of the marketing strategy of a
newspaper. This study aims to overview how "The Daily Prothom Alo" authority can
improve their marketing strategy and fulfill the need of the readers when not only
print media but also electronic media is contesting very aggressively to attract current
as well as potential customers. Market segmentation can provide information about
the characteristics shared by the readers of the daily. Long-term vision is required to
sustain the upcoming challenging environment with the rapid changes in the world.
Competition is a never-ending process. Before the publication of "The Daily Prothom
Alo", "The Daily Jugantor" was the highest circulated Bengali daily. However, it
could not retain the position of the highest circulated Bengali daily. "The Daily
Prothom Alo” authority may use constant marketing intelligence force to remain
number one Bengali daily in Bangladesh.

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1.2 Objectives of the study

The main objective of the study is to make an overview of the marketing strategies of
"The Daily Prothom Alo". However the specific objectives are as follows:

• To conceptualize 'what marketing strategy means' through a literature survey.

• To define effective marketing strategy for motivating potential readers of "The

Daily Prothom Alo".

• To ascertain the fulfillment of the readers' need through reading only one
Bengali Daily.

• To provide recommendations for increasing circulation of the paper.

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• To suggest how "The Daily Prothom Alo" can remain in a position of
competitive advantage among other Bengali newspapers in Bangladesh.

• To accomplish the internship program for attaining the Bachelor of Business

Administration (BBA) degree.

• To get a overview of the marketing strategy of the entire media industry of

Bangladesh.

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1.3 Methodology of the study
The study is based on primary data. For the purpose of collecting primary data, an
unstructured questionnaire is used. Under the preview of the interviewed- the
officials of Daily Prothom Alo, students of some private Universities, doctors,
lawyers and housewives, are covered to analyze the competitiveness of "The Daily
Prothom Alo "and then provide recommendations for designing effective marketing
strategy. The study used random sampling in designing the sample.

Total number of respondents was 100. Out of them total number of students of one
public Universities and two private universities, i.e., East West University (EWU),
and Stamford University were 60. Other respondents were - number of Doctors: 10,
Number of Lawyers: 10; Number of Housewives: 10, and Number of Bankers were:
10, the study determines weighted average of the readers of "The Daily Prothom
Alo". The study tried to collect the opinion of the readers as well as target customers

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regarding their expectation from the daily.

The study also interviewed circulation manager of Hawkers Union of Dhaka city to
know the present circulation of different Bengali newspapers in Barisal The study
also analyzes strength, weakness, opportunity and threat. Time period of the study is
April 2009 to July 2009. .

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1.4 Limitations of the study

Some of the Limitations of the study can be mentioned below:

• The study was done only in the Dhaka city.

• The study did not include the govt. officials.

• The study did not consider the different groups of people such as politicians,
teachers, police, member of armed forces, social workers etc.

• As competitors of "The Daily Prothom Alo" the survey considered only "The
Daily Jugantor" and "The Daily Shamokal". It did not consider other English
and Bengali dailies like "The Daily Ittefaq", "The Daliy Nayadiganto", "The

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Daily Amadershomoy", etc.

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1.5 Literature Review

Evans and Berman (1982) comment that a strategy outlines the manners in which
marketing is used to accomplish a firm's objectives. They argue that often a firm
selects a strategy from among two or more possible alternatives.

Neill (1986) describes that busy potential clients are often unable to attend seminars,
as many financial planners have found it rather hard ways. Teaching them and
making the newspaper available and the newspaper firm is reachable through if their
publication can ensure, then they are most likely to read-the local newspaper.

Dertouzos and Trautman (1990) by specifying and estimating a five-equation model

of newspaper operations, provide evidence useful for addressing several issues
concerning media concentration. On the cost side, the results indicate that there exist
significant scale economies in the production of circulation and space. On the other

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hand, the evidence suggests that chain newspapers cannot produce output more
efficiently than independent ones. On the demand side, rival newspapers located in
contiguous geographic markets appear to have an important competitive effect on the
demand for circulation. Dillon et al. (1993) observe that marketing research helps
marketing obtained the data.

Schultz (1993) describes a strategic approach which is one of the must pressing issues
of our business. He describes a method for making decisions to ensure the long-term
health all profitability of newspapers of all sizes.

Trivets (1996) observed that the segmenting of business markets is a process of

refining the business markets into usable components. He further commented that the
marketing personnel should know the sales and profitability of the broad product
markets of the target: markets, and of the individual businesses.

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Imam and Ali (2000) comment that database marketing involves the creation of
updating, maintenance of a database and telemarketing operation, filed sales support
system, customer services and credit collection.

Freil: Owriz Equal. (2000) observe that the placement of products in many media
alternatives available today is becoming an important part of marketing and
profanation. Applications of the technique demonstrate the importance of creating m
communicating with potential customers. In addition, to ensure delivery of a
consistent message through product placement and for all sort of promotional
activities, an integrated marketing communication system is necessary.

Gross (2000) argues that competition in the organizational marketplace is generally

keen, whether the rivalry is across the streets or across the oceans. Judging the nature
of competition by looking at structure conduct, and performance is a useful initial step
However, marketing managers must go further and consider the intensity of rivalry

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among existing firm’s possible entry into the market by new firms, substitutes and
forward or backward integration.

Scott (2000) observes that building positive and constructive day-to-day working
relationships with the people can impact the last theft. of the marketing process. Too
often, customer service managers and employees who are responsible for creating and
maintaining customer relationships are isolated from advertisement, sales,
circulations. Without knowledge of the day-to-day challenges and opportunities,
marketers are handicapped in their ability to create the plans and budgets required to
achieve business goals.

Walker et al. (2000) argue that the development of marketing information system
raises legal and ethical questions because offbeat potential to harm individual.

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Agarwal (2002) describes that the guiding philosophy that all firms especially those
wit high customer turnover must get a Customer Relationship Management (CRM)
project. There is n r doubt that customer information is the lifeblood of any business
and hence, CRM initiatives. 1-luwever, CRM needs a better implementation if it is to
contribute to the corporate renaissance.

Hill (2002) argues that a critical element of a firm's marketing mix is its distribution
strategy, the means it chooses for delivering the product to the consumer. The way the
product is delivered is determined by the firm's entry strategy.

Waldfogel and George (2003) argue that when consumers share similar preferences,
additional consumers will bring forth products that confer positive "preference
externalities" on others. However, if distinct groups of consumers have substantially
different preferences, the groups bring forth products with more appeal to themselves
and less appeal to others.

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According to SFN Home Published Reports (2003) the newspaper industry is highly
competitive, and threats are changing all the time. They are uniquely dependent on
inter-related revenue steams provided by sales and advertising.

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2.1 Marketing Highlights: The competitors

Through effective planning among competitive marketing strategies, the organization

needs to have knowledge about the products of their competitors. At first, it has to
identify its actual and potential competitors. Presently, "The Daily Prothom Alo" is
the highest circulated Bengali newspaper of Bangladesh. But in order to maintain its
leading position in thee market, it has to focus on the competitors. Competitors of
"The Daily Prothom Alo "are "The Daily Jugantor" and "The Daily Shamokal".”The
Daily Prothom Alo" is now at the leading position, "The Daily Jugantor "is at the
second place, while "The Daily Shamokal" is at the third position.

2.2 Product Overview of Three Dailies:

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Regular Pages (Published in The Daily Prothom Alo) Sara Desh, Bishal Bangla,
Babsha O Banijo, International, Sports, Share Market, Porasuna, Editorial and Sub-
Editorial, Computer Protidin, and Cultural etc.

Regular Pages (Published in The Daily Jugantor): Khobor, Banglar Mukh, Khela.
Dosh Diganto, Editorial and Sub-Editorial, IT Bisha and Cultural news etc.

Regular Pages (Published in The Daily Shamokal) : National News, Local News,
Editorial and Sub-Editorial, Entertainment, Business, and Sports etc.

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Now a comparative study among three dailies is given below:

Day Contents of The Daily Prothom Contents of The Daily Contents of The
Jugantor Daily Shamokal
Alo
Alokito (East, West), Ain O odhikar, Shikhagon, Business Grehoner kal,
Sunday Stadium, Bighan Projonmo, Shasto Special Bighan o projkti
kushul

Monday Rosh+Alo Bsichu Kaler kehya

Tuesday Nokhsha - -

Wednesday Narimonj, Bondhushava, Shasto Sojon Somabesh Surid Shomabesh

Kushul

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Thursday Anando (shonoskriti) Shonskriti -

Friday Chutir Dinae - Projokti Protidin

Shahitto Shamoykee, Projonmo Dot Ajker Computer

Saturday -
com

Source: On the basis of publication of three dailies other special materials are published on
different occasions by each daily.

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Comparative Pricing
The marketing strategy, price is one of the important factors. We have shown below
the comparative position of price of three newspapers:

Days Daily Prothom Alo Daily Jugantor Daily Shamokal

Saturday-Thursday Tk. 8 Tk. 8 Tk. 8
Friday Tk. 10 Tk. 8 Tk. 8

Source: Compiled on the basis of the collected data

Comparative Sales

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Current sale of newspaper in Dhaka City among three dailies

Table-3: Current sales in Dhaka (July, 2009)

Newspaper Sales (daily)

Daily Prothom Alo 150,000
Daily Jugantor 80000
Daily Shamokal 70000

Source: Compiled on the basis of the collected of data

From the aforesaid table, the study observes that" The Daily Prothom Alo" has the
highest circulation among the Bengali newspapers in Dhaka city.

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3.1.1 Analysis of some Readers Psychology
Readers arc the main focus of the newspaper industry in the today's competitive
market. Sound marketing requires careful analysis of the readers. In case of "The
Daily Prothom Alo", we have known from the Hawkers Union that about 60% of the
total Bengali newspaper readers in Barisal City read "The Daily Prothom Alo". Before
developing appropriate marketing strategies for a newspaper, the management of the
paper has to know the percentage of the actual readers as well as prospective readers.
To sustain in the competitive advantage position the management of the newspaper
has to research and develop strategic marketing on the basis of the both categories of
the readers' opinion.

3.1.2 Students of Public and Private Universities

Besides public Universities, there are several private Universities in Bangladesh. The
well known private Universities are as follows: North South University, East West

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University, Independent University of Bangladesh, American International University
of Bangladesh, The People's University of Bangladesh, and Asian University of
Bangladesh, Stamford University, BRAC University, Southeast University,
Ahsanullah University of Science and Technology. Students of Private Universities
are target readers of English newspapers. The study conducted survey among students
of three reputed Private Universities. Findings are presented in Table : 4 and Fig -1:

Table-4: Survey among the students of Different Private Universities

Percentage
Number of the Percentage of Reader of Reader Reader
S1. Name of the Students of Bengali English The Daily of of the
No. University Interviewed Newspaper Newspaper Prothom Daily Daily
Reader Reader Alo Jugantor Shamokal

1 DU 20 70% 24% 55.56% 34.72% 9.72%

2 EWU 20 60% 40% 62% 28% 10%
3 SF.U 20 50% 50% 52% 39% 9%

Source: Compiled on the basis of the collected of data

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The study has found that most of the students are readers of Bengali dailies. Out of
them, the majority read of "The Daily Prothom Alo" .Readers of "The Daily Prothom
Alo" range from 52 to 62 percent. However, following are the common comments of
the students about "The Daily Prothom Alo":

• Cultural activities of the students should be published.

• Information about higher education should be provided in this

newspaper.

• Information about job vacancies should be published for potential

graduates.

3.1.2 Survey among doctors

Percentage of English newspaper readers = (215/300)/100 = 71.67% Percentage of

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Bangla newspaper readers = (85/300)/100 = 78.33% Findings are mentioned below in
Table: 5 and also shown in Fig: 2:

Table-5: Percentage of different Bengali Newspaper readers among Doctors

Newspaper Percentage of readers

The Daily Prothom-Alo 17.22%

The Daily Jugantor 9.23%

The Daily Shamokal 7.25%

Source: Compiled on the basis of the collected of data

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3.1.3 Survey among the lawyers
Percentage of English newspaper readers = (157/300)/100 = 52.33% Percentage of
Bangla newspaper readers = (143/300)/100 = 47.67% Findings are mentioned below
in Table: 6 and also described in Fig:3:

Table-6: Percentage of different English Newspaper readers among Lawyers

Newspaper Percentage of readers

The Daily Prothom-Alo 26.22%

The Daily Jugantor 19.23%

The Daily Shamokal 13.86%

Source: Survey report of marketing dept. of Daily Prothom Alo

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3.1.4 Survey among the housewives
Percentage of English newspaper readers = (18/100)/100=18% Percentage of Bangla
newspaper readers (82/100)/100 = 82% Findings are mentioned below in Table: 7 and
also shown in Figure-4.

Table-7: Percentage of different English-newspaper readers among

Housewives

Newspaper Percentage of
The Daily Prothom-Alo 27.85%
readers
The Daily Jugantor 19.25%
The Daily Shamokal 14.86%
Source: Survey report of marketing dept. of Daily Prothom Alo

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3.1.5 Survey among the Bankers

Percentage of English newspaper readers = (42/100)/100 = 42% Percentage of Bangla

newspaper readers= (58/100)/100 = 58% Findings are shown below in Table: 8 and
also given in Fig: 5:

Table-8: Percentage of different Bengali Newspaper readers among the Bankers

Newspaper Percentage of readers

The Daily Prothom-Alo 31.85%

The Daily Jugantor 25.25%
The Daily Shamokal 26.86%
Source: Survey report of marketing dept. of Daily Prothom Alo

4.1. Major Promotional programs of The Daily

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Prothom Alo
All the target customers are not similar in their preferences. Consumers have different
types of needs and to satisfy these various types of promotional activities have to be
planned and implemented properly. Promotional tools include advertising, sales
promotion (such as sampling, discount coupons, contests and others), and public
relation activities (such as: organizing programs, news conferences, donating money
and others). Some of the promotional activities are discussed below:

4.1.1 Maril Prothom Alo Taroka Proshuskar:

Since 2001, "The Daily Prothom Alo" has been sponsoring this program for awarding
the best Stars and Models is the showbiz of Bangladesh for their outstanding
performance. Meril organizes this program on behalf of "The Daily Prothom Alo".
This program is held between March and April.

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4.1.2 Debate Competition
"The Daily Prothom Alo "has been sponsoring Inter College and University English
Debate Competition since 2001. The Debating Committee of Viqarunnisa Noon
College organizes this competition on behalf of "The Daily Prothom Alo".

4.1.3 Award Presentation program GPA 5 obtained SSC and HSC

students
Since 2003, "The Daily Prothom Alo" has been awarding the outstanding students of
SSC and HSC level examinations. "The Daily Prothom Alo" Award Presentation
Program were held 64 districts in Bangladesh jointly with Grameen Phone, AKTEL
and also Banglalink.

4.1.4 Prothom Alo-HSBC Language Competition.

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"The Daily Prothom Alo" in every year arranges a Language competition for the
school and college going students with the Honkong Sanghai Banking Corporation
(HSBC).

4.1.5 Round table discussion

"The Daily Prothom Alo" organizes different types of round-table discussions. For
example, in 2003, it organized round table discussion with Center for Policy Dialogue
(CPD).

4.1.6 News in Grameen Phone

"The Daily Prothom Alo "provides Grameen Phone with daily news. They can also
accommodate other mobile phone companies. Other programs arc also organized on
different occasions.

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5. Strength, Weakness, Opportunity and Threat (SWOT)
analysis of "The Daily Prothom Alo"
As a market leader Prothom Alo also have some weakness and threats. Besides that
the strength level is high also having several opportunities. On the SWOT analysis we
try to find out the strength, Weakness, Opportunity and threats of Daily Prothom Alo.

Strengths Weaknesses

• Highly talented Editor • Promotional campaigns are not

• A dedicated team of employees attractive

Authenticated published news
•
• Advertisement is relatively high
Cater to the demand of the
• • Lack of attraction among housewives and
widest
spectrum of readers
Different sorts of marketing
•
campaigns
including provision for awards
Absence of real competition
•
• Silence to attact poor people who don't
have
purchasing power
• Buying clientele is a particular section of
the society
doctors
As advertisement is high, space for news
and other
features arc gradually decreasing
• Numbers of readers of Bengali Newspapers
of the
country are generally very low

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• Literature page is not attractive
• Distribution channel for overseas readers
is noteffective
very

Opportunitie Threats
s
• Diversification in the other areas • Effective campaigning of other dailies
of
the media • Absence of strong promotional campaign
• Possibility of creating new • Future possibility of competition with the
dimension among the current electronic media
and
prospective readers • Chance of losing competitive advantage
• Still number one among all the and position of number one among the
Bengali dailies of the country Bengali dailies in the country

Source: On the basis of collected Data.

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6.1. Recommendations

6.1.1 Students of Public and Private Universities

"The Daily Prothom Alo" can introduce a new page for students of Universities in
Lifestyle tabloid, which is published every Tuesday. This page may include the
following. To increase circulation of the newspaper among the students of public and
private Universities.

6.1.2 Doctors, Nurses, Patients of Reputed Hospitals/Clinics Strategy

The Marketing Executives of "The Daily Prothom Alo" can visit doctors of the
following hospitals with complimentary copies of The Daily Prothom Alo " on every
Sunday to promote Health-page. Some selected hospitals/clinics are given below: 1.
IPGMR, 2. Dhaka Medical College Hospital, 3. Gana Shasthya Hospital, 4.
Suhrawardy Hospital, 5. Shishu Hospital, 6. CMH, 7. Bangladesh Medical College &

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Hospital, 8. Central Hospital, 9. Ibna Sina Clinic, 10. Lab Aid Ltd., 11. Medinova
Medical Services Ltd.,12. Modern Diagnostic Center, 13. Popular Diagnostic Center-
Ltd., 14. Compath Clinic, 15. Holy Family Hospital, 16. Islamic Eye Hospital, 17. Al-
Razi Hospital, 18. Comfort Nursing Home Ltd., 19. Rashmono Hospital, 20.
ICDDRB, 21. Salinnillah Medical College Hospital, 22. Monowara Hospital, 23.
Paugu Hospital 4. Utrara Medical Hospital,

6.1.3 Lawyers Strategy

"The Daily Prothom Alo" can organize an open discussion about Human Rights on
World Human Rights Day in association with Supreme Court Bar Association in the
auditorium of Supreme Court in Dhaka. The Editor of "The Daily Prothom Alo "can
participate in this open discussion with lawyers.

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6.1.4 Housewives
To attract housewives, a quiz competition may be arranged. Moreover, effective
campaign among the housewives for reading "The Daily Prothom Alo "can be done.

6.1.5 Bankers
To attract bankers, more news on financial system of the country and also global trend
of change in financial system may be published. Besides, publishing the news on
exchange rate and share market regulates, more importance should be given on
providing latest news on global and domestic financial markets so that bankers can
gather up-to-date knowledge. As such business page should be redesigned, and made
attractive in accordance with the bankers need.

6.1.6 Other Programs

Special programs can be launched by "The Daily Prothom Alo " observing various
International days.

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Table-12: Proposal for Organizing Programs

Date Special Occasion Proposal

3rd May World Press Freedom Day Organizing round table conference at Press
club with the Journalists
26th June International Day Against Organizing seminars in association with
Drug Abuse and anti Center for Rehabilitation of Drug Addiction
Trafficking Distributing Stickers, Organizing rallies

20th November Universal Children's Day Organizing Cultural Program in association

with Bangladesh Shishu Academy

21st November World Television Day
International Day for the
25th November
Elimination of Violence
Against Women
Organizing dinner-party for different T.V.
performers in association with different TV
Channels
Organizing Seminars in association with
Bangladesh Mohila Parishad

1st December World AIDS Day Organizing Round Table Discussion on

AIDS/51'D Program

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6.1.7 Promotional Campaign through TV Channel Strategy
"The Daily Prothom Alo" can organize Talk Shows in NTV or in any other private TV
Channel. The daily can associate its name with a part of news. It can associate its
name as "'The Daily Prothom Alo " Antarzatik khobor' through broadcasting as a
portion of the news of 11ty or any other private TV channel.

6.1.8 Promotional campaign through Print Media Strategy

"The Daily Prothom Alo” can promote its different types of new pages and also
special features by giving advertisement in Daily Star, Bangladesh Observer. The
advertisement can be given from the month of January 2009.

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7.0 Concluding Remarks
Quality improvement is a never-ending process. Although "The Daily Ittefaq" is one
of the reputed newspapers, currently "The Daily Prothom Alo" is enjoying a
competitive advantage. However, in case of a newspaper, a good marketing strategy is
required. And this is necessary for a Bengali newspaper in Bangladesh to make a good
headway business in Bangladesh. In the competitive world of the Journalism, a daily
that can only adjust with the changing demand of the newspaper readers and can
attain comparative advantage will be able to thrive. For successful marketing strategy
is not alone sufficient. It would be in effective unless market plan can be properly
implemented. Market research can create benchmarks and helps to ascertain increase
of circulation of the daily. This can also help to evaluate the success / failure of the
newspaper. It is important on the part of "The Daily Prothom Alo" authority to
evaluate the materials for the readers with a view to attract them and to adopt the
marketing strategy for better circulation.

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8.0 References
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Concentration: Estimates front a Model of the Newspaper Firm.

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Markers.

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Mcgraw Hill Publishing Company Ltd., New Delhi, 3rd edition.

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12. Trivets, Jonathan : One stop Marketing, John Wiley & Sons, Inc., Singapore

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