Case Study Titli (Childrens Magazine)

Section C Group 11

Titli Case Analysis Section - C Group 11

Name Aman Srivastava Deepak Sudhakar Krishna Bajaj Prasanna Patange Richa Singh Saikiran Pollamarasetty Vivek Gupta Roll Number PGP2011532 PGP2011617 PGP2011696 PGP2011770 PGP2011823 PGP2011843 PGP2011944

PGP 2011-13

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Case Study Titli (Childrens Magazine) Introduction The Company

Section C Group 11

National Publishing Company is the leading publishing company and has several years of experience in the printing and publishing industry. Their publications include daily newspapers as well as weekly, fortnightly, monthly and yearly journals. Some of the publications are market leaders in their product category. Around 3000 agents and sub agents form the distribution chain and distribute the publications of National Publishing Company across all parts of the state. Door delivery at the subscribers premise accounts for the higher share of sales volume of most of the periodicals. Shops are the main source for occasional readers to avail publications. Titli is one of the National Publishing Company products. The Product Titli is a childrens fortnightly vernacular magazine published by the company and is the market leader in childrens periodicals segment. Titli is mainly targeted to the children of age group between 5 to 12 years. It carries various features like two-three short two-page stories, three or four longer stories, one or at the most two serialized stories, two or three short poems, seven-eight regular cartoon features, titbits, fun and games. The magazine carries one story written in simple language with bolder letters for the children who are beginning to read. It also carries a read aloud short story in rhyming language for the children who are yet to begin read properly. Titli is priced at Rs.2 per copy. After attaining peak sales in 1987, Titlis circulation declined about 40% during 1989. The withdrawal of Childrens Delight magazine from childrens periodical segment did not result in a substantial increase in the circulation of Titli. Promotional schemes increased sales of the particular issue by 10% but subsequent issues didnt attract the additional buyers.

Market Overview Looking at the consumer market demographics, the state where Titli was printed consisted of approximately 52.35 lakh households in 1990 out of which 68% households consisted of 3-5 members. Nearly 81% of these household had annual income of Rs 12,500 and proportion of such households was more in rural (about 85%) as compared to urban areas (about 67%). Although Titli was mainly targeted at younger children but it was observed that children up to the age of 14 years enjoy reading Titli. In 1986-87, it was found that approximate 60 lakh children were studying in class I to X classes corresponding to the age of target market out of which 40% were in primary classes and other 60% were divided equally between middle ( standard V to VII) and high school( standard VIII to X). Between 1984-87 average increases in the enrolment was found to be about one percent per annum so there was no significant increase in size of the target market. The Childrens magazine section consists of either fortnightly or monthly publication and underwent many ups and downs in terms of total number of publications. In 1985 there were 20 periodicals/magazines published in vernacular language, in 1986 this number rose to 31, but in 1989 PGP 2011-13 Page 2

Case Study Titli (Childrens Magazine)

Section C Group 11

there were only 9 publications. Total monthly circulation was estimated to be about 16 lakh copies. In 1986, total circulation saw an increase of about 25 % which declined by about 56% in 1989 as compared to 1986 level. Titli was the market leader in the childrens periodicals segment, Childrens Delight was its close competitor. In 1985 both had 30% market share while in 1986 Titlis market share was 26% whereas Childrens delight had share of 23%. 1989, Titlis share rose to 47% as Children Delight discontinued publishing. So now the closest follower had a share of about 14% and rest of the publications shared remaining 39% of the market. All childrens publications had almost same format and were targeted at children in the age group of 14 or 15 years and less. In addition there were other magazines such as family magazines, womens magazines and political magazines.

Assessing factors responsible for sales decrease The total circulation of childrens magazines fell from 20 lakhs in 1986 to 7.04 lakhs in the year 1989, a drop of 64.8%. For Titli the market circulation fell from 5.2 lakhs in 1986 to 3.3 lakhs in 1989, a drop of 36.5%. Also the number of magazines reduced from 31 in 1986 to 9 in 1989, a drop of 71%. A competitive magazine in 1986 with 23% market share, Childrens Delight stopped production in 1989. The various factors responsible for such declining trend in the market are:-

1) Decision Makers The ultimate purchase decision makers are parents and they ensure that their children are exposed to more informative reading material and also devote proper time to their studies. 50% of the lapse readers of Titli have not preferred or subscribed to any other magazine. This implies that parents prefer their children to be more academically involved and take up other activities in their leisure. 2) Consumer Perception The perception of Titli is a disadvantage in the current situation of the year 1990. The perception is at two levels. First level addresses readership level, i.e. children in this case. Second, at the purchasers level i.e. parents/guardians. Many children consider reading Titli as childish and thus dont want to be seen as the readers of a childish magazine. In addition, parents consider Titli to be a light reading material. Thus it is not appealing for parents looking for more informative magazines for their children. 3) Features and Target The features of Titli are of a typical children magazine consisting of short stories, fun and entertainment related stuff. The market research reports division makes Titli appealing for the children of class III-V or at the stage of Active Promotion. The appeal for the magazine
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Case Study Titli (Childrens Magazine)

Section C Group 11

is influenced by offers of gifts, prizes, posters etc. This is the reason sales increased by 10% when such incentives are given. Brand loyalty is also low amongst children The main leisure activities of children show that reading books and magazines is prominent in the age group of 10-12 years and 13-14 years, 54% and 59% respectively. But the features of Titli or not in compliance of the parents demands for their children in these age groups. Thus it is being substituted by other more realistic content magazines which are hurting its sales.
Strategy Though Titli is the market leader in the childrens magazine segment, the declining sales of Titli is a major cause of worry. Even after acquiring the popular cartoon strips of the now withdrawn nearest market challenger and giving away additional freebies, the circulation of Titli has only increased by 10 percent. Hence, a new strategy needs to be employed to tackle this problem. Analysis of the market research and the focus group brings forth two major concerns. First deals with customer perception of Titli. Second concern is about the varied characteristics and factors affecting the target market for Titli. To tackle the first concern, Titli needs to reposition its image in the minds of the customers (the children and the parents). To tackle the second concern, Titli needs to segment its target audience on the basis of their interest levels and their expectations, and focus on each target separately. Moreover, there is an increasing trend of customers who prefer reading English magazines. So these changing trends must be looked upon as an opportunity to increase the market share. Splitting the magazine into 3 different issues Looking at the percentage of readers of Titli about 24% readers are 3-7 years old, 57% are 8-12 years old and 20% are 13-14 years old. Also, the interest levels, the loyalty and the expectations from this particular magazine are different for these 3 groups. Hence, 3 separate periodicals should be launched for these 3 segments. Titli for 3-7year olds: This periodical should only be published as a monthly issue. Since, during this age childrens interest in reading is only secondary, and its the parents who encourage children to study, this periodical should contain picture stories, short stories, read out loud article, colouring etc to attract parents and children together. Window dressing is a must for this edition and the sale should be accompanied with incentives like prizes, posters etc Titli for 8-12 year olds: Since, this segment forms the major share of the customers; this periodical should be published fortnightly. Reading is the main activity for this age group so the magazine should contain short stories, science articles, cartoon stories like Friendly Ghost, Magic Monkey etc to attract customers. To convert the passive nature of parents, the magazine may focus on publishing more articles on moral values, ethics and general knowledge. PGP 2011-13 Page 4

Case Study Titli (Childrens Magazine) Titli for 13-14 year olds:

Section C Group 11

This periodical should be a monthly issue. This is the stage where parents strictly monitor what their children read. Hence, by including more mature articles on stories that provoke thinking, emphasize on general and social issues, inculcate values and responsibilities in young children, parents can be attracted to buy the issue. Furthermore, there should be a few English articles in the issue to increase and attract the readers of English magazines to Titli. Some of the famous cartoon stories can be also published in English. Psychological Repositioning For each of the 3 variants of the magazine, the customer perception needs to be readdressed. For the 37 year old issue, the main decision makers are the parents. Hence, by active promotion it must be communicated that the issue is meant for inculcating the habit of reading for children. Similarly, for 8-12 year olds and 13-14 year olds, promotion needs to be done in such a way so as to emphasize the knowledge and values diffused by the more mature articles keeping in mind the mature age groups for which these magazines are targeted.

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