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DIV ‘A’
2
INDEX
16
6. INTRODUCTION ON HINDUSTAN TIMES 18
7. MARKET SHARE OF TIMES OF INDIA 21
8. 4 P’S OF TIMES OF INDIA 22
9. MARKETING STRATEGY 23
10. SURVEY 27
11. SWOT ANALYSIS 41
12. FUTURE OF NEWSPAPER 44
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4
INTRODUCTION TO THE NEWS PAPER INDUSTRY
MARKET RESEARCH
NEWSPAPER
5
Besides India's vast illiterate adult population (252.5 million),
there are 248 million literate adults who are unexposed to
newspapers and to the 180 million who do read publications.
Readers from nearly six lakh villages make magazines, in
comparison up only 48 per cent of the readership base,
although rural India is home to 62,6 per cent of the country's
literate population. This could be due to the urban-centric
nature of most publications, which may not cater to the
interests of rural residents.
6
Any Daily 22.0 22.6 2.7
Any
16.0 15.8 (1.25)
publication
7
Slice 4
0%
2003
2005 31%
35%
2004
34%
Hindustan
2325 2316
Times 2250
Deccan
790 962 1165
Chronicle
8
According to a PricewaterhouseCoopers' study, Global
Entertainment & Media Outlook 2004-2008, the Indian
newspaper market will grow from $1,869 million in 2004 to
$2,404 million in 2008 at a CAGR of 6.9 per cent.
9
TOI was founded on November 3, 1838 as The Bombay
Times and Journal of Commerce, and served the British
residents of western India. It adopted its present name in
1861. Published on every Saturdays and Wednesdays
"Bombay Times and Journal of Commerce" was launched as
a bi weekly editions. It contained news of Europe, America
and the sub-continent and was conveyed between India and
Europe via regular steam ships. The daily editions of the
paper were started from 1850 and by 1861 Bombay Times
was renamed as "The Times of India". By 19th century this
news paper company employed more than 800 people and
had good circulation in India and Europe. Originally British
owned and controlled, its last British editor was Ivor S. Jehu,
who resigned the editorship in 1950.
CRITICISMS OF TOI
10
The modelling of sections of the newspaper upon fashion
tabloids is a case in point. The group has also been attacked
by other media houses in India for its management
interference in editorial policy and the policy of selling paid
news. The Time Group has drawn some amount of flak for a
scheme called "medianet", which other firms can use to
purchase editorial coverage in the daily. The ethical
problems for the group have been further compounded by
allegations of extortion by a journalist employed by the
group.
11
Though the Times has traditionally tried to portray an image
of political neutrality, it has been by and large viewed as a
pro-Establishment paper. It tends to vary in its support
between the BJP and Congress Party, depending on who
holds the reins of the Central Government. Its whole-hearted
approval of Indira Gandhi's excessive repression measures
during the internal Emergency in the 1970s is not lost on
political observers. Since the 80's and early 90's, the Times
of India has consistently produced some of the country's
finest journalists.
12
DNA, the second major newspaper launched in the Indian
city of Mumbai in 2005, is an initiative of the Bhaskar Group
of Publications, better known for the Dainik Bhaskar - a Hindi
language newspaper popular in the central and northern
states of India. It is also counted as one of the top five most-
read newspapers in the country.
Daily News and Analysis was launched on July 30, 2005, after
a much-talked about advertising campaign that continued
for four months. It is notable that it was launched when the
city was in the aftermath of the July 26 deluge, which
submerged almost all of Mumbai which received 94.4 cm of
rain on just one day.
13
Noted film critic and Hindi film director Khalid Mohamed is
the Roving Editor, and handles DNA Glory (the glazed
entertainment supplement on Fridays) and Lime Lite (the
two pages of movie stories and reviews on Sunday.
14
an integrated media conglomerate with operations spanning
the entire media spectrum.
The Dainik Bhaskar Group has soared to the top of the print
media industry in India with its flagship Hindi daily, Dainik
Bhaskar (India’s No. 1 Daily Hindi Newspaper), and the
Gujarati frontrunner, Divya Bhaskar. While Dainik Bhaskar
has a big presence in Madhya Pradesh, Rajasthan, Punjab,
Haryana, Himachal Pradesh, Chhatisgarh and Uttar Pradesh,
Divya Bhaskar is the largest circulated regional daily in
Gujarat.
15
The battle has been joined; the assault on Bennett,
Coleman's citadel has begun. Last week, the Dainik Bhaskar
group (which is partnering Zee) kicked off a Rs 60 crore (Rs
600 million) outdoor campaign ("Speak up, it's in your DNA")
in Mumbai for its yet-to-be launched English daily, unusually
called "DNA." It plastered Mumbai with 150 hoardings and
500 kiosks with advertisements, and mounted a campaign
on FM radio stations too.
16
news in Canada and UK (if I remember correctly) related to
India, and a few short items of hardly any importance.
The fact that news from abroad are always related to India is
something common to many papers here, or at least that is
what I feel. A couple, at most three, news items about some
Indian achieving something, or some government abroad
that has taken a decision related to India, and that’s all you
need to know from what happens in the world (according to
the papers editors). You can’t find anything about what
happens in, for example, Venezuela, or the corruption in
Brazil, or …. it just does not exist.
17
The Hindustan Times is a leading newspaper in India. It has
its roots in the independence movement of the first half of
the twentieth century. It was edited at times by many
important people in India, including Devdas Gandhi (the son
of Mahatma Gandhi) and Khushwant Singh.
18
ever-increasing scope of operations and a consumer focused
approach.
19
The group's news portal HindustanTimes.com, with over four
million unique visitors and 90 million page views per month,
is one of the largest news portals in the country. It has
consistently been ranked amongst the top 10 news sites in
the world by Forbes and offers in-depth coverage and
analyses to its users.
20
MARKET SHARE OF TIMES OF INDIA
According to the survey of year 2005, Times of India holds
the highest market share i.e. (35%) amongst the newspaper
industry. Both DNA and Hindustan Times are essentially
competing for the No. 2 slot in the market. The Times of
India is too old and established to be overthrown in the short
term. With a six lakh circulation, it was far ahead of earlier
competitors like Indian Express (58,000). In fact, it was The
Economic Times (1.47 lakhs) and Mid-Day (1.40 lakhs) that
trailed in second place after The Times of India in Mumbai.
While there are varying estimates on how the new
newspapers are doing, market sources estimate that DNA
sells around two lakhs and Hindustan Times 1.40 lakhs.
However, DNA claims that it is printing 2.90 lakh copies and
Hindustan Times says it sells 2 lakh copies.
Though The Times of India claims that its circulation remains
the same, a newspaper agent says that its counter sales
have reduced by 40,000 to 50,000 copies from last 2 years.”
It’s probably because other newspapers are half the price,
while the content is not very different.
"In the next few years, Mumbai's market will expand by up
to 75 per cent, with even The Times of India growing," says
Meenakshi Madhvani, Managing Partner of Spatial Access
media solutions. "Delhi has a slightly lower population than
Mumbai, but there are 12 lakh [copies of] English
newspapers sold there as compared to only 7.5 lakhs
[copies] in Mumbai. There will be dramatic market expansion
in Mumbai in the upcoming years.
21
4 Ps of TIMES OF INDIA
4 Ps:
Product :
Price:
Place:
10 cities mainly……
Promotion :
22
MARKETING STRATEGY.
Why has Mumbai's lethargic newspaper industry suddenly
become a `hot market' for new competitors? First, because it
has the country's largest advertisement revenue of Rs.1,000
crores, of which only one player - The Times of India - has
the lion's share. The new entrants are vying for a piece of
the pie. The Times of India's advertising rates are the
highest in the country. For long, advertisers have felt that
they have been held to ransom as they have no choice but
to pay exorbitant rates to The Times of India in order to
reach Mumbai's upmarket consumers. Now, there are other
platforms, but they will have to prove themselves before
advertisers start considering them an option.
23
people want to scan news without going into too much
depth.
is essentially a `blockading' strategy - you flood the reader
with so much that he/she does not feel the need for another
newspaper. "A normal reader spends 20-25 minutes on
newspapers. Do you think he/she will spend more time
reading just because there are new newspapers?" asks Das.
24
THE new newspapers are priced much lower - Hindustan
Times at Rs.2.50 and DNA at Rs.2 - which have boosted
initial sales. "Generally, the price of an English newspaper in
every city is around Rs.2, only Mumbai was an aberration
where The Times of India was priced at Rs.4. However, now
they have tried to increase their value proposition by adding
a second free newspaper to The Times of India," says Sandip
Ghose, Vice-President, Marketing, Hindustan Times. DNA's
vice president, Sales, N.B. Verma, says: "We want as many
people as possible to sample our product, so we have kept
the price low."
25
page called `Speak Out' where readers can write in," says
Gautam Adhikari, editor of DNA.
26
THE SURVEY DONE BY US:
TOI - 35
ET - 20
MDY - 18
M M 20
DNA - 4
OTHERS - 3
27
2. In which language do you prefer the newspaper?
ENG - 42
HND - 6
RGNL - 5
Slice 4
28
3. Do you read Times of India?
Yes- 43
NO- 8
Slice 3
Slice 4
29
4. Are you satisfied with the news content of Times of India?
YES- 29
NO- 5
NOT MUCH- 18
Slice 4
30
5. On what topic should Times of India emphasize more?
POLITICS21
ENTERTAINME
NT- 23
SPORTS- 10
BIZ- 19
HEALTH-10
LIFESTYLE- 12
31
6. Do you want Times of India in tabloid form or the way
it comes?
Tabloid- 17
normai- 27
unique- 8
Slice 4
32
7 Your take on advertisements in Times of India?
MORE- 9
LESS- 9
APPROPRIATE-
35
Slice 4
33
8. Do you want prefer b/w or colourful newspaper?
B/W- 9
COLOURFUL- 43
Slice 3
Slice 4
34
9. Do you want news with more pictures?
yes- 39
no-12
Slice 3
Slice 4
35
10. Do you like supplements or everything in one main
paper?
supplements-
25
no
supplements-
26
Slice 3
Slice 4
36
11. Do you think Times of India provides accurate facts and
figures compared to others?
YES- 24
NO- 9
Can't say- 19
Slice 4
37
12. How many people in the family reads Times of India?
1
2
3
ALL
38
13. Is the price of Times of India reasonable?
YES 36
NO- 16
Slice 3
Slice 4
39
14. Rate Times of India on a scale of 10?
5
6
6 to 7
7 to 8
8
9
10
40
Strength Weakness Opportunities
and Threats
Distribution Strategy
sells at Rs 4 in Mumbai
Because of the above two reasons DNA and HT have to follow the
same strategy
Pricing Strategy
TOI charges Rs.5 but gives many supplements with the main
paper for free
41
DNA and HT false short here as nobody will be ready to pay the
extra supplements along with the main paper which is for
Rs.5
The other papers can’t even lower their price tags as the
publishers pockets will be cut
ADVERTISING REVENUES
TOI has a very good customer loyalty. TOI spends a lot in advertising
space but it delivers results too
DNA and HT will have to try hard to get this kind of customer loyalty
Rs crore
Total revenues 815
English 568.50 (70%)
Vernacular 246.50 (30%)
Newspapers 717.20 (88%)
42
Strength Of Times Of India In Comparison To MID DAY
The Mumbai Mirror was launched by The Times Group after Hindustan
Times and DNA announced plans to enter the Mumbai market
TOI offers Mumbai Mirror free of cost. So Midday has a big dilemma
here
Mumbai Mirror was a total flop but TOI with its good marketing strategy
is taking over Midday’s market share
43
The future of newspapers:
Now there’s a question that effortlessly divides people into
one-and-a-half groups with the first group – the
overwhelming majority till now – refusing to let go of the
‘feel’ and ‘texture’ and ‘crinkleness’ and whatever the hell
else there is that contributes to the overall tactile fluency
with which news emerges out of newsprint. Of course there’s
no doubt that the reading of papered information is a deeply
associated emotional experience that cannot easily be
replaced by some digital gimmick, no matter how portable,
handy or higher-than-tech.
44
throne, feel and crinkle with familiarity yet are actually large
wafer thin monitors that are permanently online and
therefore continuously updated, will you accept it with grace.
Especially since this will not spell the end of the newspaper
industry at all because people from reporters to rewriters will
still have to be around to process the feed being sent to your
output device. It will, however, spell the end to cutting down
trees to make paper.
45