March 30, 2018 | Author: Alpesh | Category: Newspapers, Marketing, Strategic Management, News, Advertising



INDEXSr. No. Particulars Pg. No. SECTION - 1 1. Marketing Today 2. Objective of the Study SECTION – 2 1. Introduction to Industry - Industry Analysis - Brief history of Newspaper Industry - Introduction to Evening Newspaper Industry 2. Problem of the Industry SECTION – 3 1. About Desh Pardeshni Aajkaal - Company Information - The Success Story - The Management Team - Organization Chart - About the Product SECTION – 4 1. Marketing in Competitive Environment 2. Marketing in Aajkaal Group 3. Major Competitors - Local Competitors - Other Competitors SECTION – 5 1. Strategic Approach of the Aajkaal Group - Competitive Product - Pricing Strategy - Promotion and Communication Mix Strategy - Distribution Strategy SECTION – 6 1. Introduction - Market Share as Main Goal - Concept of Optimal Market Share 2. Marketing Share Analysis SECTION – 7 1. Details About Survey SECTION – 8 1. Future Plans 2. SWOT Analysis 3. Recommendations 4. Conclusion 5. Bibliography MARKETING TODAY Companies can not survive today by simply doing a job. They must do an excellent job if they are to succeed in markets characterized by fierce competition at home and abroad. In the era of globalization and liberalization consumers look for excellence in quality, value or cost while choosing their suppliers. Recent studies have demonstrated that the key to profitable company performance is knowing and satisfying target customers with competitively superior efforts and marketing is the managerial function charged with defining customer targets and the best way to satisfy their needs and wants competitively and profitability. Interest in marketing is intensifying as more organizations in the business sector, the non profit sector, and the international sector recognize how marketing contributes to improved performance in market place. “INNOVATIVE OR PERSIH” is the theme of today’s marketing. Today marketing is used to tune the whole system of management. Today marketing has become a crucial tool in the hands of management for becoming the market leader. Marketing along with other tool like advertising market research, sales promotion, after sales service, contribution to creating brand image in mind map of consumers. So at last. Marketing has become an indispensable part of any business today. marketing is of prime importance to survive in that very market. . and then have a tea along with that the evening newspaper. have a habit of go for rest during 2:00 to 4:00 pm noon. they got to know what has happened in their surroundings. I was curious to understand:  The marketing management of such low priced item  Nature of competiton . Newspapers have become a part of our life. OBJECTIVE OF THE STUDY It is inherent in human life to have some aim behind any activity. Even every life has got its own goal. People of Saurastra. Almost every Indian and why only Indian? All human beings. A day without a newspaper creates the feeling of vacuum in our day to day life. irrespective of any country have become habituated to read a newspaper. There was a curiosity to understand the newspaper industry. And talking about the habit of evening newspaper especially found in people of Saurastra. To study the Aajkaal Group or to get training at Aajkaal Group was not only the requirements of the academic study. V. Aim with which newspaper industry is working  Different strategies to increase market share  Competition between two newspapers as well as with T. channels . be it about health. latest and authentic news only. but the content. Newspaper industry is mainly a service-oriented industry. films and so on. depth. segmentation choices. Thus newspapers can be better named today as “complete information provides”. What newspaper companies are learning is that the value of what they produce is not the ink on paper. Introduction: - What is a newspaper? A newspaper is a regularly published print product containing information vital to the function of the market it serves. credibility and emotional attributes that are delivered in any distribution channel they choose. . INTRODUCTION TO INDUSTRY A: INDUSTRY ANALYSIS 1. The newspaper companies it is their prime social responsibility to provide timely. However now a day’s newspapers scope is not limited to news. science. astrology. But it includes in its preview all those information which may be useful to readers. On the other hand for the reader also the importance of newspaper in their daily routine has become much more vital. Some major national plays of the newspaper industry are: THE HINDU Kashmir Times THE STATESMAN Satyam Times The Tribune THE TIMES OF INDIA Economic Times DECCAN Chronicle Hindustan Times Asian Age Business Standard The Telegraph Mid-day Express India Daily Excelsior Afternoon Central Chronicle newindpress.com News Times Financial Express India Daily The Pioneer Assam Tribune Gomantak Times News Today The Senitel Star of Mysore Novhind Times Kashmir observer O Herald . For millions of people newspaper has today become an addiction.  Add to that new products entering the market. 3.  Print and electronic media begin to converge but don’t substitute for each other: enhancement potential and synergies are sought after and developed.  The status today: The newspaper is firmly anchored in the market alongside all other media. Introduction to Evening Newspaper industry: - .  But after the initial shock the challenge was taken up. the boom in electronic media. more and more newspapers boasted four colors. Brief History of The Newspaper Industry: -  At the beginning of the ‘90s.2. like supplements. first triggered fear and apprehension that increasingly became a reluctance to invest. The service sections of newspapers are expanded. all to enhance product appearance. including the Internet. or inserts in headset quality. the overall design and layout were revamped and modernized. such as magazine. while morning newspapers stay alive for the whole day. The time is 1 pm in Saurastra. All shops are shut down. And that’s where a wide scope for evening daily newspapers in Gujarat lies. While on one hand evenings can have the advantage of being able to include the latest news that have happened in previous as well as those of the same day. They wake up and they wish to read a fresh newspaper as if a new day has just started. However evenings have a smaller life than morning newspapers as they become stale as soon as next morning arrives. Everyone goes home. the morning dailies. It’s almost as if there are 2 mornings everyday in the Saurastra region. Evening newspapers have their own advantages and limitations as compared to morning editions. have lunch and have an afternoon nap. . can represent only previous day’s news. like other media sectors have been severely affected during the past year by an overall fall in advertising expenditure.  Enormous increase in salaries and allowances have made it difficult for many newspapers to run viably. have been far from buoyant in recent times because of sluggishness in the economy. But to boost the creativity and performance of the editorial staff the companies have to give in to the rising salaries. The native newspaper sector has been more severely affected than by local and regional newspaper group.B: PROBLEM OF THE INDUSTRY Some of the problems of the newspaper industry can be summed up as follows: -  Advertising revenues a major source of sustenance. liquidity in the market and diversion to the ever-expanding electronic media.  The erosion in the value of rupee vis-à-vis the dollar had further affected the price of imported newsprint and increased the burden on the newspaper.  The newspaper industry. . There was pressure from the commercial sector on the newspaper. In recent years. The need to make economies of scale has also led to title – swapping between companies – clustering titles within the same geographical area – which some commentators feel will be even more important in the future. availability and quality has remained a matter of concern for the industry. The free expression of views had been challenged by the business running a newspaper.  The print media is facing two types of challenges.  Newsprint is the major component of costs in publishing a newspaper and its price.  A high proportion of respondents remain loyal to the same newspaper that they were readily a year ago. and cable and satellite television has put pressure on circulations. one from within and the other from the multimedia – television and internet. There was a phenomenal increase in the price of newsprint in the last two decades. The . competition from the other news sources – including the internet. and very few say that they would consider switching because of a small increase in cover price. Evening newspapers can work well only in few places where people have in their daily routines to read newspaper in evening. people are too busy to read news twice a day and hence evenings lose their face there. .  The newspaper industry has spent billions on the internet to create online editions that are read by fewer people. These online editions haven’t helped newspapers attract younger readers.  The urge of readers for more and more instant news is also having its toll on the industry. “The equation can almost be written as follows: Instant news raw news” = lack of analysis = need for more from the public = more instant news = more raw news = more lack of analysis and so on”. In most of the large markets like metropolitan cities. less frequently and less fully than print editions.  The problem specifically for the evening newspapers is the limited market scope. and most of them are financial drain on the newspaper that support them. economies of newspaper will be a matter of concern in the years to come. But the presence provides signals. some revealing. Not any more. Ink had said once that anyone who tries seriously to predict the future of newspaper will one day look foolish. Today the dailies all over the western world are struggling to make its voice heard . Only prophets know what the future holds. FUTURE SCENARIO OF THE INDUSTRY The Poynter Institute’s columnist Dr. especially if he or she is lucky enough to live beyond the prediction. The leading papers in the western world could boast that whatever they had not published ‘had not happened’. We can only speculate or try to predict it. it is clear that: they’ve reached a point at which change or reorientation are a question of survival. depth. Reading these signals. scope and truthfulness. The print word was the only guarantee of seriousness. Less than twenty years ago the print media were king. some weak. and cable and satellite television – has put pressure on circulations. However this doesn’t excuse the newspaper companies from improving their . What these figures prove is that how much ever other medium grow and expand newspapers will still have its own charm. Newspaper industry in India has continued to thrive because of its “inherent strengths” although the growth of electronic media and internet in recent years has been remarkable. In recent years competition from other news sources – including internet and cable and satellite television – has put pressure on circulations. but dead slow in delivering the goods. It’s become an addiction just like the morning tea for millions of people. They have become an important part of the routines of many. whereas only 12% had given up reading newspapers. A study had shown that 75% internet users had given up viewing television. Most of us are still sound and reliable. the record is one instantly and with a lot more of time and room dedicated to it by the electronic media.amidst a pandemonium of sounds. and the world wide news television gets there earlier and with much more dramatic effect than any paper can hope to convey. bites. audiovisuals. and all manner of internet related messages. In recent years competition from other news sources – including the internet. expanding distribution and serving readers and advertisers. and mobility: are the catchwords today. that’s why more and more newspapers are opting for it and further more will in near future. these look and feel just like the newspaper – except on screen instead on paper – and they provide the advantage of audited circulation. But it’s another relatively low-cost tool for increasing circulation. look and feel of the appear. Convergence will be the watchword for the future with newspapers continuing to play a “major role in the scenario that unfolds”. websites. miscellaneous columns. . The latest flavor for the newspaper industry is: digital editions. Unlike newspapers. subscription schemes and so on. Convergence. contests. It’s an era of changes. Only those survive who indulge in constant improvements and innovations. layout. be it news presentation style. articles.product and services. So the question is: “Is it a “must” to publish a digital edition? Not yet. Benefits of Digital Edition: There are many benefits to digital editions. multi-channel. easier to use. these electronic editions are always distributed. blizzards.  Newspapers will prosper.  In spite of new technologies.. but will be smaller in size and weight. ink and distribution costs.  They’re fully searchable. so you can increase back-copy sales and text archive sales. front-page “belly band” and “stick-on” ads that disappear when the issue is opened.  They can build circulation among readers who want the paper in a timely fashion. hurricanes or distance. we will be drowning in a sea of paper. and they can provide advertising “extras” such as video and audio files. . whether they’re local or halfway around the world. They’re achievable. response cards. and not require the destruction of so many trees. Some predictions about the future of the industry…. whether it’s editorial or advertising content.  Digital editions include every ad that your print edition does. They reduce paper. so readers can look for what they want immediately. traceable hyperlinks and other enhanced tools. Regardless of distributor strikes. but all of them with a unique personality that will appeal particularly to a given segment of the market.  In spite of new technology used to assemble and communicate the news. inform and help to live a better life to its readers. will have to be each one unlike the others. will have to entertain. The paper of tomorrow. . differently. interview and research to develop strong and accurate news stories. consult sources. the news gathering process will remain the same: reporters will still follow leads. will have to cater for individual needs to its readers. “The narrative story was with us long after”. 4th floor.com  Branch Offices Jamnagar Office: . Rajkot – 360 001. 405-6. Ansion Building. Jyot Tower. Company Information: -  Name of the company Dhanraj News & Media Pvt. Ph: 0281 – 2481556/571/58 E-mail: [email protected]  Form of Organization 9th floor. Near State Bank of Saurastra. Ahmedabad Office: . . ABOUT DESH VIDESHNI AAJKAAL A. Town Hall. Dhanrajni Complex. Opp. Yagnik Road. Jamnagar. Ltd. Dr. Near Vinesh School.  1998: There was a big void for an evening publication in the commercial capital of Gujarat – Ahmedabad. . Ahmedabad – 380 009. S. B. Navrangpura. Porbandar Office: . VCO Bank Road. Porbandar. M.G. Rajubhai Shah. Om Building. In short span of time it gained acceptance amongst readers of Rajkot. Stadium Six Roads. Brief History: The Success Story: -  1996: Aajkaal was launched in city of Rajkot to establish its credentials among other existing evening newspapers. Off. Road. Popat Building. Aajkaal grabbed the opportunity to be the 1 st successful evening newspaper and proved its worth with again in very short period with a great surprise to the tycoons of media industry. Bhavnagar – 364 001. It was promoted by the previous management team headed by Mr. Bhavnagar Office: .P. Khar Gate Chowk. It was taken over by the Dhanraj Group of Companies. AAJKAAL became the only evening newspaper of the country published simultaneously from four major centers of Gujarat covering 80% geographical area with largest circulations. AAJKAAL achieved leadership status in the state of Gujarat.  2004: AAJKAAL added one more feather in its cap by commencing its fifth edition from the city of Porbandar on the 2nd April 2004. The take over was formalized on 22 nd June 2000 and ever since AAJKAAL has never had to look back. .  2000: A turn around came in the history of AAJKAAL. hence now it has become even stronger as it is published from 5 cities simultaneously and the future will witness yet more editions of Aajkaal. which is a known name in the constructions industry. People of Jamnagar were waiting for a quality newspaper and within no time AAJKAAL ranked as No. 1999: One more landmark – one more center of publication – one more achievement – start-up of the Jamnagar Edition. 1 evenings in the city of Jamanagar.  2001: Later creating history with one more center – Bhavnagar. Anil Jethani  DIRECTOR Mrs. Chandresh Jethani  DIRECTOR Mr. LTD. is the driving force behind the country’s largest circulating evening newspaper – AAJKAAL. Rajni Dhanraj Jethani  EDITOR Mr. Dhanraj Jethani  MANAGING DIRECTOR Mr.  CHAIRMAN AND MANAGING EDITOR Mr. THE MANAGEMENT TEAM – THE PEOPLE AT HELM DHANRAJ NEWS & MEDIA PVT. Deepak Rajni . (i) Typing: This involves punching all the news into the computers.E. advertisements. (iii) Page Setting: This refers to the activity of taking the print out of the edited page of news on the butter . About the Product: -  Manufacturing Process: 1. The reporters are on a continuous vigilance and collect all important news from the areas that are allocated to them. sub headlines. Placement of headlines. Composing of news: After collection. (ii) Page Editing: This involves formatting the news. Collection of News: The collection of news is one activity which is done on a 24 hour basis. etc. 2. photographs. is decided and the newspaper is ready n the computer screen. composing is done in following steps. The newspaper of the up country [Dak] edition are sent to their S. Plate Exposing: Once the editor does the proof- reading of the butter print paper. it is sent to the machine room (press). The prints are taken on 2 butter papers. So by now a prototype of the newspaper is ready. Printing: This plate is then fit on the roll of the off- set machine. Distributing: The bundles are then ready for dispatch. 5. they are set together and glued with the help of cello tapes to form the size of a newspaper.  Raw-Materials: . 6. paper. 3. 4.T. There it is out into the plate exposing unit through which the entire print on the butter paper is imposed on the aluminum plates. plate and ink the newspaper is actually printed. Counting: The off-set machine has an in-built folder so the paper is automatically folded 2 help count these folded newspapers and malice bundles of appropriate size. Bus station while the city edition is sent to the city depots for distribution. The paper rolls are also fit into this machine. By the coincidence of paper.  Installed and Utilized Capacity: The offset printer that is used by AAJKAAL has the installed capacity of 16000 copies per hour. Toner The circulation agents commission forms 60 paise per copy and other expenses like electricity etc. The main raw-materials required for printing a newspaper are: a. However as per the demand the utilized capacity is only about 22000 copies per day. Plate: these are aluminum plates on which the news are imposed from the butter paper.  Initial and Current Investment: . b. Chemicals 2. Newsprint: it forms approximately 70% of the total production cost. Ink: Ink and plates together cost 15 paise per copy. c. Butter paper 3. cost approximately 15 paise per copy. Besides these other direct material required are: - 1. From these plates the writings are embossed on the newspaper. Bhavnagar. . 18 lakh. 25 lakh and Rs. 2 crores.  Edition & Pages: Rajkot edition – 12 pages. 2. Jamnagar and Porbandar: 8 pages.5 crores. Initially when Dhanraj Group took over AAJKAAL. Currently the investments have reached upto Rs. 1. 10 lakh was spent on developing the Ahmedabad office. Ahmedabad. on account of further sales promotional expenses. new machines and 5th edition from Porbandar. sales promotion took up about Rs. After that there were further fixed investments like news machinery of Rs.5 cms [8 columns]  Periodicity: 6 daily evening except Sunday and Government Holidays.5 crore.5 cms Column width = 4. they paid approximately Rs.  Mechanical Data:  Print Area: 51 cms x 37. In all the initial investment reached about Rs. newspaper has not lost its importance. Thus. today newspaper industry does not only complete with other newspaper companies but also with other channels. newspaper reports the news in details.V. it reports the news T. now. Marketing in Competitive Environment: Today newspaper has become a part of everybody’s life. In this era of different satellite channels also. Various publications in dailies and . Now it does not give new news to the people. MARKETING IN THE NEWSPAPER INDUSTRY A. make people aware of the news. Day starts with the newspaper. However the job of newspaper has changed. channels. Dhanraj Jethani and the Managing Director Mr. easy availability and at quite affordable price – is the main effort of all leading groups in India. marketing has become essential for any newspaper industry. Chandresh Jethani. Attaining. But today the scenario is very much different. That’s the reason why it is under direct supervision of the Chairman Mr. To obtain this higher circulation and to understand consumer needs and wants so that value added publication can be provided. At AAJKAAL marketing is given prime importance. Today the approach towards marketing is customer-oriented.  Marketing in the Aajkaal Group: “Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users. for higher readership. They are the ones who decide on each and every competitive strategy. .” This is how America Marketing Association has defined marketing in yester years. satisfying and maintaining customers is the essence of marketing today.magazines fight for higher market share. Better features in newspaper and magazines. In AAJKAAL marketing function has dual functions. Print media has got its own distinctive advantages for the businessmen. On one side it includes in its scope the management of the advertising department and on the other is the efforts done to promote sales of AAJKAAL itself through various sales promotional tools. AAJKAAL Group is supposed to give the due attention to the marketing field as it is surrounded by a very tough competition. It is the most responsive department collecting the revenue for the enterprise.  SPACE MARKETING: It is very well known that newspaper and magazine serve as print media for the other business units. Marketing department can be subdivided in the following ways: Marketing Department Circulation Space Marketing Let us see the functioning of each section in detail. Therefore almost all the business units get their .  SIGNIFICANCE: Space marketing becomes important task for the group because: - Newspaper is such a low priced item hardly Rs. 2 whereas cost of manufacturing or publishing that newspaper is much more than this price. From the viewpoint of newspaper industry it is the task of space selling to the businessmen for their ads. 1 to Rs. space marketing becomes a crucial task for the Aajkaal Group as it generates a larger flow of revenue as compared to revenue coming from the circulation. Newspaper industry collects maximum revenue for the unit through space selling only. The rates chargeable for publishing ads of different business houses and agencies are fixed as per the utilization of columns and centimeters.advertisements published in leading newspapers and magazines. Thus. the whole . So it is must for the industry to compensate this cost as well as to earn desired or reasonable profit which is required for growth and for this purpose some other source of revenue other than circulation is to be found out. Space marketing brings here the other flow of revenue. As everyone knows. The charges are different for publishing ads on front page. For attracting more and more ads AAJKAAL has various canvassers or marketing executives whose main duty is to attract more and more ads to be published in AAJKAAL. middle page or last page. and convince them to give ads in AAJKAAL by explaining them the benefits and the economies. These are 4 categories of ads based on the source from which they get it. a) Direct ads [from the advertiser without any ad agency]. The staff members of this department directly approaches to the advertisement agencies and also to the business houses for getting ads in their publications strategic approach is adopted in order to obtain maximum advertisement.page is divided into 8 columns and rates are charged accordingly. has got a separate department performing the function of space marketing as shown earlier in the organization. These canvassers go through the advertisements that appear in the competitor’s newspaper and check if it has appeared in AAJKAAL also. The Aajkaal Group. If it has not then they either contact the advertiser or his ad agency. b) Ads through local ad agency c) Ads through outside agencies [out of Gujarat] d) Government ads [State and Central Government] . as news re printed only after verification. various promotional activities which will be discussed later are carried under direct supervision and guidance of CHAIRMAN and M. Circulation department attends all the functioning related to providing newspapers in the hands of the readers with better services competitively and economically.  CIRCULATION: Circulation sector is basically concerned with the marketing of publications of the Aajkaal Group.  PRODUCT: The product over here is concerned with news quality. Good relations with business houses and agencies as well as favorable rates and terms and conditions are the key of space marketing. However. The worthiness of news is high. Let us see the rate details of AAJKAAL publications in this rate card.D. It aims at maximum promotion of the newspaper. .  PROMOTION: There is a separate section which functions under the circulation department especially carrying out the promotion of newspaper. the quality of paper and ink which are quiet much more superior than those of the competitors. 2. IN RAJKOT: - The major competitor of Aajkaal in Rajkot are: a) Akila b) Sanj Samachar a) Akila This media company is sound and puts straight forward challenge for Aajkaal. It tries to make newspapers available to the readers at their convenient places.  PRICE: Prices are different for city publication and Dak publication. But the prices are determined by the head office at Rajkot. 2 and price of Dak publications is Rs. The price of city publication is Rs. Since company is publishing newspaper from 25 years. DISTRIBUTION: This section watches the timely dispatch of newspaper everyday. It aims at arranging for physical distribution as well as channels of distribution. C. it has set an image in minds of . Thus both the sections of marketing department – space marketing and circulation are of great importance. MAJOR COMPETITORS: 1. It can be also said in favor of Akila that it was the 1 st evening newspaper of Rajkot city and it was the one to set a trend or habit amongst the Rajkot people to habituate themselves for reading local evening newspaper. class fields are published on separate paper along with evening daily the price of which is included in evening daily. which has helped it to maintain its Market Share: o A evening daily o On every Saturday. Akila made a positive step of increasing number of papers from 12 pages to 16 pages in .Rajkot people and it enjoys certain market share since long. there is an emotional feeling attached to it. Now let us discuss the features of Akila. than any other newspaper in this industry. Akila is also facing competition from Aajkaal and in order to stand in competition. through its spicy news and more experience in this field. One of the advantages that Akila enjoys is that the circulation goes high by 5-10% on every Saturdays due to its additional feature of class fields. Akila also has been successful in grasping and maintaining the interest and prejudice for itself. Thus for people of Rajkot district and other cities. The maximum retail price of Akila for both city and Dak edition was initially Rs. Bhavnagar and Jamnagar. The approximate sales figures of circulation figures of Akila is whole Saurashtra is copies/day and in Rajkot is copies/day. 2. and other rural and industrial areas. after so many years of establishment it has been able to make its brand image. 1. Sanj Samachar is also having only one edition.00 after increase in paper. b) Sanj-Samachar One another competitor of Aajkaal is Sanj Samachar.city edition and from 10 pages to 12 pages in Dak edition like Aajkaal. but Aajkaal only since 4 years of inception has gained a good market share and a well set image in minds of reader. talukas.50 but is increased to Rs. Porbandar. . Rajkot. while Aajkaal is having its full-fledged 5 editions in Ahmedabad. But one of the limiting factor of Akila is that. Sanj Samachar has been publishing evening newspaper since 17 years. Akila is compared to Aajkaal is one step ahead in area of circulation of Dak edition merely due to major circulation of taxis owned by itself and not hired ones and usage of 6-7 routes covering various villages. But like Akila. So one positive move taken by Akila after tough competition from Aajkaal is to first increase newspaper pages and then to increase maximum retail price. JAMNAGAR: . commission to distributors channel. otherwise there is no tough competition between them. Sanj Samachar does not have additional features of classfields and other columns like Aajkaal but only plus point is its years of experience in this media field. 2. . Aajkaal is equally doing well in case of availability time of newspaper. Sanj Samachar is evening newspaper published by Jai Hind Publication – publisher of morning newspaper. Sanj Samachar in order to stand in this competitive world has undertaken various marketing efforts at trade fairs. annual subscription offer. but never to under estimate any competitor. Thus Sanj Samachar is a cold competitor. in different rural and urban areas. The prices of each newspaper of city edition is Rs. Sanj Samachar is competitor for Aajkaal only in case of market grabbed by it. Sanj Samachar is also one of the leader by its print quality and paper quality. Both newspaper might be reaching at similar timing to different residential and business places in Saurashtra. The per day circulation or sales figure of Sanj Samachar would be approximately copies/day for Saurashtra and approximately copies/day for Rajkot city. And of Dak edition is Rs. The only positive feature carried on by Nobat is its long experience of 45 years. The total potential readers of Jamnagar district are 1. The additional feature contributing to the success of Nobat are good quality of paper and printing quality. The retail price of both Dak and city edition are Rs.52. But unlikely Aajkaal. But in case Aajkaal for Jamnagar city. According ABC book the per day circulation of Nobat is approximately about 24. Dhanraj News and Media Pvt. there is only one competitor of Aajkaal in Jamnagar and that is ‘NOBAT’. Nobat publishes both Dak edition and City edition and coves rural area around the city along with the city itself.00 only.598. the number of pages for city edition are 10 pages and that for Dak edition are 8 pages. Nobat is the only leading evening newspaper of Jamnagar. 2. started its new edition in Jamnagar in the year 1999. There are no additional features like class fields or columns additionally published along with regular newsprint or included in the newspaper itself by Nobat which provides a competition to Aajkaal in Dak and city edition for its columns and various other features. Ltd. . So it has created a separate place in the hearts and minds of readers of Jamnagar.400 copies. the number of pages of Nobat are 8 both for Dak and city edition. and looking to its powerful feature even Aajkaal did not miss the chance and launched one of its edition in Ahmedabad in the year 1998.357. Aajkaal reduced its prices to Re. But as discussed above. As such there is no competition from national evening newspaper. where there is no competition. As such in case of competition. Aajkaal in comparison to its competitor has been very speedily gaining its space in Jamnagar because of its active teams and latest news. AHMEDABAD Ahmedabad is the commercial capital of Gujarat. there is no such harsh competition faced by Aajkaal amongst evenings. So to have competitive advantage. 3. 1 and reduced to 6 pages from 8 pages. In the Ahmedabad district there are 92468 potential evening newspaper readers. there is no thing left. Aajkaal has successfully gained a readership of about 17. And because of this measure. so Western Times is the competitor of Aajkaal. the sales of Aajkaal increased by 20%. But indirect competition from morning . Bhavnagar edition was launched. In Bhavnagar district there are 1. one more step towards maximizing reading of Gujarat. following Gandhi’s principle. 4.758 potential readers of evening newspapers.newspaper Divya Bhaskar. . PORBANDAR In the year 2004. “Saurashtra Aaspas” has been started. There is no hardcore standing competition for Aajkaal in Bhavnagar. 5. But recently before 1 or 2 months in November 2004.09. truth through authentic news in his birth place – Porbandar Aajkaal started its 5th edition in Porbandar. Divya Bhaskar has been launched since June 2003 and certain % of decline in sales figure of Aajkaal has been experienced during recent days. Aajkaal is constantly striving hard to maintain its market share in Ahmedabad district. BHAVNAGAR In the year 2001. a new eveninger called. because all the latest news are published by them. one more leap towards success. while local newspaper are carrying spicy masala with them. OTHER COMPETITORS Apart from the local competition from the above district. There is a feeling in minds of people that there are more authentic news in national newspaper. Aajkaal is the only leading evenings newspaper in Porbandar. natural calamities. But one advantage for evening newspaper is that it can launch special edition due to breaking news. There is considerable less competition from the side of national newspaper because they are broadly based on news related to whole nation and no direct competition with local news publishers. the marketing information system of national newspaper is very strong enough. The area covered by national newspaper is mass and area covered by local newspaper is micro. to publish all the breaking and latest news. there is also competition from national evening and morning newspaper and local morning newspaper. but soon will enter into that area also. In Porbandar there are no rivals for Aajkaal. etc. by Aajkaal on city edition is published and on Dat edition. In Porbandar district there are 59136 potential leaders. In Porbandar. But yes. Aajkaal was able to take an advantage of this opportunity very successfully when the disastrous . image of each other. If there are any breaking news in mid of the day. we shall discuss the impact of morning newspaper on the sales of evening newspaper. But on the other hand the life space of evening newspaper is very short as next morning the ones with morning newspaper will publish the news with some extra knowledge and depth in that particular happening. . The special edition published during everyday has increased the goodwill of Aajkaal. more or less effect on working.earthquake destroyed Kutch and other different cities of Gujarat. and even the reverse is applicable. Aajkaal at that time was able to beat Akila. Now. then evenings can publish the news first. and morning newspapers have to republish the news next morning. Thus both evening and morning newspaper whether local or national has some or the other. the local leading evening newspaper because of its latest news and hardworking team. Morning newspapers are in indirect competition for evenings. INTRODUCTION A. . INTRODUCTION Aajkaal group is a well established group in localized newspaper industry. The group is professionally organized group and very aware about its strategic orientation. again when there is such a tough competition it has become an essential task to formulate any strategy very successfully. Marketing strategies refers to company’s policies decided after due considerations given to environment as well as competitors policy strategy formulation is always a difficult task for the unit. It is successfully in meeting reader’s demand. a proper attention should be given to these marketing mix variables and their impact on the market share. . In case of Aajkaal. it’s all the four marketing tools are very sound. price. Sometimes the mix of these variables may bring higher market share but may not generate the desired profits. Some light on the impact of different marketing mix variables on market share as shed by Bazzell and Wiersema drawing on the PIMS [Profit Impact on Marketing Strategies] database. Aajkaal group has adopted crucial strategies to survive in this competitive world. promotion and distribution have greater impact on the company’s market share. The impact of different Marketing Mix variable on Market Share All the four pillars of marketing. Therefore to have desired market share. products. i.e. relative product quality and marketing expenditures specifically. Share gaining companies typically developed and added more new products to their lines. They found that in companies showing market share gains typically outperformed their competitor in three area new product activity. The reported study did not investigate whether the market share gains were worth the cost of achieving them. contrary to expectations. price. Companies that increased their marketing expenditure faster than the rate of market growth typically achieved share gains. Increased sales promotion expenditures were effective in producing share gains for all types of companies. Evidently companies are able to “buy” higher market share. promotion and distribution to increase the market share. more deeply than competitors did not achieve significant market share gains. Companies that increased their product quality relative to competition enjoyed greater share gains than those whose quality rating remained constant or declined. Presumably enough rivals met the price cuts partly and others offered values to the buyers so that they did not switch as much to the price cutter. Companies that cut their price. . Let us now examine the strategies of the Indian Express Group in terms of product. but the real issue is whether it will lead to higher profits sooner or later. Increase in sales force expenditures were effective in producing share gains for both industrial and consumer markets increased advertising expenditures produced share gains mainly for consumer goods companies. Customers want that product. The Aajkaal group performs the role of market challenger so it is supposed to choose the attack strategies. Competitive Product Product is the base point for any company. which can give them expected value against the valued price given for it. STRATEGIC APPROACH OF THE AAJKAAL GROUP We hereby mainly examine the strategies of group particularly adopted for Aajkaal. Product. Let us discuss the strategies in terms of product. Because it is ultimately the product which brings failure or . price.B. Customers are ready to pay for the quality. product has gained highest attention. is the competitive tool for differentiation and positioning in the mind map of consumer. In this competitive era. It is the main theme or idea that any company has to offer to its customers. Product after capital is the life line of any company. Company can win the market with the help of product quality. promotion and distribution. Those products are successful which give functional and esthetic value to the product. . Most products can be offered with varying features. higher the market share can be achieved. on every Wednesday and Saturday class fields are published and sales increases by certain % on these days.success to the business. The more innovative approach is adopted. Features are a competitive tool for differentiating company’s product from competitor’s product. Let us see the features of Aajkaal AAJKAAL was the 1st and the only evening newspaper which started different columns like: o Lifestyles o Wah kya scene hai o Sakhad-dakhad o Askha mandal o Kutuhal In addition to this. Features: Features are the characteristics that supplement the product’s basic functioning. It helps the readers to understand the news format and one can directly switch over to the news of his own interest. Even there is a special benefit to yearly subscribers as they can participate in regular quiz and contests which are introduced by Aajkaal. and special gifts are given to the winners of the quiz and contests. etc. Presentation: Aajkaal group has adopted a specific format for presenting news. Thus the features of Aajkaal have a complete family package. It differs from all its competitors. Changes. It has got everything from films to firm. from sports to horoscope. and ads. Modification . Improvement. The unique presentation also gives fancy and sophisticated look to the newspaper. This has made a remarkable contribution in strengthening the product image of Aajkaal. Specific standards of quality are fixed for each and every product but when we think of quality in newspaper industry. The Aajkaal group has tried to understand the requirements of their readers and accordingly they have presented modifications in presentations as well as features of the newspaper. Quality has become precondition for any business unit. Any firm that does not provide value addition to their customers soon gets isolated and out of date. the product quality means the level and trust worthiness of the news. Product Quality Product quality in today’s world has gained utmost importance. making the readers more mature may be called Qualitative news. . the truth of news generating positive behavior. question arises in terms of what? Here. Aajkaal group keeps a constant eye on competitors modification or price improvement of any newspaper immediately results in increase or decrease readership ratio. Newspaper industry has got the highest responsibility. The publicity that they give to a person, a public trend to think him as the image given by the newspaper. Newspaper is the mirror of the society, it reflects what is happening in the society on day to day basis. It writes history of events. It reveals the true facts of the event. News: News means actual facts of what happens without adding or suppressing facts. News should not be everyday routine things for e.g. not old usual “Dog bites man” is news, but “Man bites Dog” is news. News can be political, sports, business, national, international regional or of human interest. Previews: It is not reporting of facts but prediction of things to happen or take shape in the future. It can be political, economical or any thing. Review: It is detailed analysis of major things/events which have happened, why it happened what will be its effect? Good or bad? It’s diagnosis. It goes beyond the actual facts to find reasons or logic of happening. In today’s era there is allegation on the newspaper industries that they are giving unnecessary importance to the politicians and terrorists. They give them so much publicity that they give them the image of celebrity. As far as the news of Aajkaal is concerned, they are authentic news having high level of support of truth. As they have got courageous and investigative journalists spread all over Saurashtra, so news are published only after verification. They confirm the sources and trust worthiness of the news and then publish it. The Aajkaal group also considers the ethics and does not encourage anti-social ads or speculative activities. PRICING STRATEGY Through most of the history, price has operated as the major determinant of buyer’s choice. Price is the only element that produces revenue. It is the most important element determining company’s market share and profitability. Further more pricing and price competition was rated as the number one problem faced by marketing executives and it should be given due importance. Price is the value of the product in terms of the money. It is the rate given to avail the benefits of the product. Price must be fixed considering the value of the product. Pricing strategy is of crucial importance for the management. Proper pricing can win the market and improper pricing may result in to a great defeat. Pricing has very high impact on the revenue, profit and the market share. Through this tool company can differentiate itself from the competitors and can gained the competitive advantage. Price and Revenue: Higher price does not necessarily result in higher sales revenue; it depends upon the demand of the product. If there is very high price and no demand it cannot generate the revenue for the business. Price and Profits: With increase in price rate, profits also increases but only up to some extent and then due to increased price, demand will decrease and ultimate profit will decline. Price and Market Share: Price and market share has inverse relationship. To attain the highest market share, it is necessary to fix up the lowest price. publishing the newspaper is not generally so much low.e. But newspaper is very low priced item. PRICING OBJECTIVES: Pricing objectives are the benchmarks against which management attempts to fix the prices and formulate policies and strategies. . In price setting of any of goods.Pricing in the newspaper industry: Pricing in the newspaper industry differs from the pricing of the other goods. So it is very necessary for any group to fix up the newspaper price considering so many different factors. 2 or Rs. management attempts to maximize profits through the instrument of price. the cost factor is considered and price is set up adding the profit margin in the cost of the product. It’s value or price generally stands at Rs. The following are the main objectives of the pricing:  Profit Maximization: Under this objective. 4. But the cost of production i. Here company believes in long run profit maximization and sets relatively low price.  Market Share: A company may aim to secure a targeted market share by employing price as an input. Marginal cost pricing . It also throws a positive impact on the consumer psychology. Cost plus pricing 2.  Price Stabilization: This objective aims at avoiding the frequent fluctuations in the prices and preventing the price wars thereby. Target market share means that share of industry sets which company aspires to attain. Here price is set keeping in mind the penetration strategy. In order to prevent competition. PRICE DETERMINATION There are different methods of price determination like: 1.  Meet or prevent competition: Price is also an instrument in the hands of a company to meet or prevent competition.  Targeted Rate of Return: Here company aims at getting a desired rate of return on the investment and accordingly fixes the prices. company sets a very low price or to meet competition it follows the competitors pricing policy. Factors affecting price determination: 1. 2 Rs. Bhavnagar 2 Rs. Perceived value of pricing For determining the prices the Indian Express Group considers mainly the following factors. 2 Rs. Pricing Objective 4. Cost Factor 2. . Porbandar 2 Rs. Competition 3. Jamnagar 2 Rs. Ahmedabad 2 Rs. 2 Rs. 2 Rs. Market Behavior or Psychology There is no as such pricing strategy adopted by Aajkaal. Follow up pricing 4. 3. 2 Rs. The price of its newspapers for city edition and Dak edition in different cities are as follows: City Dak Rajkot 2 Rs. pricing it attractively and making it accessible to target customer. to whom and how often. . than developing other product. sales-promotion specialists design sales incentive programme and public – relation firms to develop the corporate image. they train their sales people to be friendly and knowledgeable for most companies ask not whether to communicate but rather what to say. The marketing communication mix consists of four major tools. PROMOTION AND COMMUNICATION MIX STRATEGY Modern marketing calls for more. Every company is inevitably cast in the role of communicator and promoter. What is communicated however there should not be any chance left for enhancing communication effectively. companies hire advertising agencies to develop effective ad. Companies must also communicate with their present and potential customers. 4. the packaging. 3. Sales Promotion: Short form incentive to encourage purchase or sale of a product or service. maintain or protect a company or product image. 1. Communication goes beyond these specific communication. . color and sales person manner and address all communicate something to the buyers. 2. The whole marketing mix. promotion tools. shape. Personal Selling: Oral presentation in a conversation with one or more prospective purchaser for the purpose of making sale. its price. goods and services to be identified. must be orchestrated for maximum communication impact. The product styling. not just the promotional mix. Public Relations: A variety of program designed to improve. Advertising: Any paid form of non-personal presentation and promotion sponsor of ideas. PROMOTIONAL STRATEGIES ADOPTED BY AAJKAAL 1. He could achieve this with the help of following marketing activities: a. When he had taken over AAJKAAL. The new management came up with very attractive subscription schemes offering gifts . 2. He especially never thinks twice before spending money like water to increase the circulation of the paper.000 and within a span of 3 years he raised it to 80. Subscription Schemes and Draws: earlier in the evening newspaper industry subscription schemes were not famous. Dhanraj Jethani believes in the philosophy that money spent on marketing is not expenditure but is an investment which will give good returns in long run. the circulation was around 40. As said earlier marketing is considered very important in AAJKAAL. Higher circulation will ensure wider coverage and hence more ad revenues.000 copies. The chairman Mr. Putting stalls on crowded places: many times stalls are arranged in very crowded and busy commercial and shopping areas so as to lure customers to subscribe to AAJKAAL easily. etc: When Dhanraj Group had taken over AAJKAAL. Till date many schemes are announced throughout the city by rickshaws as they are a cheap medium to reach the local masses. car. . attractive prices. jokes contest and so on. they had put a lot of stress on communicating this and also the introductory subscription offers through the use of Elephants as they attract attention. Along with the schemes they also have been arranging regular lucky draws which result in distribution of big expensive prizes like home. b. etc. They also make them play games like Tambola through the newspaper with the incentive of large. Contests: Besides the above schemes. gold items. like Dhanpati Dhamaka offer. Campaigning on Elephants. d. model contest. c. they provide interesting contests and quizzes from time to time. auto rickshaws. These schemes succeeded a lot and have had a major role in increasing the circulation of AAJKAAL dramatically. two wheeler. worth almost the same price as the subscription amount. This again is an inexpensive way to get a good exposure and attention. Ads are designed and produced and released on the local cable network as that is where the main target audience is available. Arranging events: AAJKAAL has strengthened its social existence by arranging various events like sponsoring cake on Krishna Janmotsav or arranging the ‘Best of the Best’ contest for all prince and princesses of Saurashtra during Navratri. g. AAJKAAL uses these two main sources for advertising.e. Pricing: the newspaper price and even the rates for the ads are fixed after considering the market conditions and the rates of the competitors. Giving advertisements on cable and hoardings: Apart from announcing all the schemes in their newspaper. Free copies to public places: a free copy of AAJKAAL is sent to all those places where there are chances of people being interested in reading. Such places are clinics. hospitals. airport. whether for knowledge or just to spend time while waiting for doctor. f. Hoardings are the 2nd main medium used for advertising various schemes. h. libraries. Hence the method of pricing generally used is competitive party method [refer rate card on next page] . etc. contests or new attractions of AAJKAAL. Besides this they also invite the problems of public be it with any govt. Besides these there are many more efforts that AAJKAAL has made to communicate and strengthen its strong position in the evening newspaper market. dept. In earlier researches done by the company it was found that majority of the readers feel that AAJKAAL is not politically biased and that it flashes news without modifying it or sugar-coating it. . i.. or their housing society problems etc. This in itself is a major service to the society. Social responsibility: AAJKAAL fulfills its social obligation mainly by giving authentic news. Hence they are the representative of the public in the true sense.. and then publish them in the newspaper. officials. . research. It represents a significant corporate commitment to large no. producer delegates some of the selling job to intermediates. as well. Therefore management must choose channels with an eye on tomorrow’s likely selling environment as well as today’s. By holding intermediates in the channel. a commitment to set of policies and practices that constitute the basic fabric on which is woven an extensive set of long term relationships. of independent companies whose business is distribution and to the particular market they serve. The delegation here means relinquishing some control over how and to whom the products are sold. COREY Thus there is a powerful inertial tendency in channel arrangements. It represents. DISTRIBUTION STRATEGY A distribution system is a key external resource. engineering and field sales personnel. It ranks in importance with key internal resources such as manufacturing. Normally it takes years to build and it is not easily changed. The producer appears to be placing the firm’s destiny in the hands of intermediates. timely availability to the dealers. DISTRIBUTION IN THE NEWSPAPER INDUSTRY: Distribution system in newspaper industry is of great importance as newspaper need to be made available at the nearby places of the people. The newspaper sent outside the Rajkot. Thus. Physical distribution and also deciding the commission as well as incentives payable to the dealers. According to Stern & Elatnsary. In morning it should reach in time and as well as it should be available at the places which are convenient. DISTRIBUTION STRATEGY ADOPTEDBY AAJKAAL: As Aajkaal is simultaneously published from 5 different cities of Saurashtra. the Indian Express Group is indulged in functions of selection of dealers.e. in nearby villages and cities of Saurashtra. so as to reaching time to its destiny. all the shop keepers keep it with them. in Rajkot regular readers get their newspaper with the help of line boys and hawkers and for other people. it has to maintain a good distribution network . Local i. “intermediaries smoothen the flow of goods and services… This procedure is necessary in order to bridge the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer. are generally dispatched in early morning through taxi vehicles. Dealer’s selection and management: Some aspects that are involved in channel management are selection of appropriate dealers. Aajkaal is the 1st to reach at places of different hawkers or distributors agonists Akila and Sanj Samachar in Rajkot District. City agents are given 325 commission. 2. The different incentive given to the dealers are: 1. Targets of sale is given for attaining the desired sales. so we can say that they are sole selling agents no other distributor are appointed. commission rate payable to them and incentive allowed to them. In 2 cities fixed upto distribution is done. Town agents-cum- reporters are given 30% commission and village agents- cum-reporters are given 25% commission. After the printing of newspaper gets over. Aajkaal hires taxis. separate piles for different areas are prepared. For Dak edition for its circulation. they are counted and each lot is sent to parcel contractor for distribution in interior places. . State Transport Buses.to reach on time before competitor’s newspaper arrives in hands of the readers. Pvt. The Aajkaal group is very particular in all these aspects. Buses/Travels or Auto Rickshaws for wide spread distribution of newspaper. Bhuj – Border city of Gujarat 3. In particular they shall attempt to achieve at least following in the near future. In future they are planning to start three more editions: a. by increasing the number of editions being published. They aim to achieve INS[Indian Newspaper Society] membership. FUTURE PLANS In future AAJKAAL wishes to accomplish even greater heights of success. . 2. and wants to come up with a new concept of English version of local news in short period of time. In future to come Aajkaal wants to go beyond the tradition. Mumbai – Business capital of India b. Reporters are selected on basis of experience in this field and sources of information. 1. 3. Surat – Diamond city of Gujarat c. They wish to strengthen their hold in Gujarat and outside. However the management could at least use better newsprint for the first and last page to create a good first impression. 3. . The high prices of newsprint may render the decision of improving paper quality as economically weak. Better paper quality also gives an image of a premium brand and hence may in the long run contribute towards attracting new readers besides satisfying the existing ones. The “Desh Pardesh Ni…” written above “AAJKAAL” on the header. Improve print quality: Although most of the readers are satisfied however the management should not ignore the dissatisfied ones. Adding color to at least the front and last page would help a lot. 2. RECOMMENDATIONS 1. Improve paper quality: I emphasize with the management as the newsprint’s prices keep fluctuating and it forms more than 70% of cost of production. should be in a somewhat bigger font so as to be recognized and retained in reader’s memory. The name of columns should be emphasized more so as to get selective attention and retention. The column’s name generally becomes the part of identity of the newspaper and also basis for differentiation. 5. As the editor and managing editor seem to be very popular amongst the readers the company could take advantage of it. From time to time they should further emphasize and publish the achievements and activities of these people so as to build the image of the brand on the basis of quality service- providers. .4. Such an important aspect should not be ignored. SWOT ANALYSIS STRENGTH: 1. Management is much more complex due to multiple editions OPPORTUNITIES: . Latest and authentic news 5. Good paper and print quality 7. Aggressive marketing through strong promotional tools 6. 2. Greater local news focus 4. those ads given in 1 edition only don’t reach to surrounding areas 4. Negative image created by previous management team 2. Lack of INS membership 5. Difficulty in convincing the advertisers about economies of advertising in multi-editions 3. Strong enthusiasm to progress even further WEAKNESS: 1. So better and faster distribution 3. Unlike other single edition newspapers. Multiple editions from major cities give wider coverage. 1. giving better subscription schemes. . Due to liberalization in foreign investment big giants are coming in Gujarat with better quality and lower prices hence posing threats for small newspapers 3. THREATS: 1. etc. Competitor’s strategies like price-cutting.’s recent decision of allowing foreign investment in this industry will lead to progress for the whole industry. and Porbandar editions. Attaining information dept’s and DAVP’s approval for getting state and central govt. Increase in prices of Newsprints 2. Getting membership of INS will attract deep pocket advertisers 2. Jamnagar. ads for Bhavnagar. 3. Govt. The Aajkaal Group can capture higher and higher market share with providing varied product features different from its competitors. It has got quite satisfactory progress rate and the future potentialities exists in the market. CONCLUSION After going through the whole report i. Thus wishing a good luck from bottom of my heart for the future of “Desh Pardeshni Aajkaal” . It is fulfilling the business ethics.e. after analyzing the market share of the group as well as after reviewing all the strategies of the group. In summary we can say that Aajkaal Group is discharging its responsibility towards the society very well. we can conclude that Indian Express Group is enjoying its growth rate. Company broachers 4. BIBLIOGRAPHY 1. Various Websites like: newspaper-industry. MARKETING MANAGEMENT – PHILIP KOTLER 3.org. expressindia. ABC BOOK 2.com .
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