“A study on sales & distribution of The Hindu ‘Business Line’ newspaper for achieving competitive advantage in Hyederabad” Submitted in partial fulfillment of PGDM PGDM ( 2011-13) Batch Submitted to- Submitted by- Prof-B.Jayakar Pankaj Sharma 1 “A study on sales & distribution of The Hindu ‘Business Line’ newspaper for achieving competitive advantage in Hyederabad” Submitted in partial fulfillment of PGDM PGDM ( 2011-13) Batch Submitted By Pankaj Sharma Faculty Guide- Director Academics- Prof-B.Jayakar Prof- Mir Irfan Ul Haque 2 Declaration I Pankaj Sharma , herby declare that the project titled “A study on sales & distribution of The Hindu ‘Business Line’ newspaper for achieving competitive advantage in Hyederabad” is an original work carried out under the guidance of Associate Prof. B.Jayakar.The report submitted is a bonafide work of my own efforts and has not been submitted to any institute or published before. Signature of the student Pankaj Sharma Date: Place: 3 Certificate of the organization 4 Faculty Guide Certificate I Associate Prof. B. Jayakar certify Mr. Pankaj Sharma, that thework done and the Training undertaken by him is genuine to the best of myknowledge and acceptable. Signature DatePlace- 5 Acknowledgement I deeply acknowledge the guidance of my faculty guide Associate Prof. B.Jayakar ( Vishwa Vishwani institute of systems & management Hyderabad) who has firmly inculcated the everlasting and invaluable teachings in me and made me get the deeper insight of knowledge and inspiration to realize this unprecedented project work. Ineffable are my feelings desperately indebted to him, a vivacious and enviable personality whose contribution is praiseworthy. I believe that anyone can take a leaf from his book. I cannot express my gratitude in words to Mr.C.G.Vijaya rama raju ( sales executive, The Hindu Group, Hyderabad) my company guide for the rigorous proofreading and sharing his precious time. He is the person who has given me timely feedback, suggestion and motivated me to embark on this strenuous project. I am very greateful to my institution who has invariably been the beacon of my advancement through their timely appreciation. (SIGNATURE) Pankaj Sharma Regd. No. 7026 PGDM 2011-13 VVISM DatePlace- Hyderabad 6 INDEX Chapter. No. Content Page No. Chapter 1 Introduction 8-14 Chapter 2 Company Profile 15- 41 Industry Profile Literature Review Chapter 3 Research methodology 42- 44 Chapter 4 Data collection 45- 56 Chapter 5 Analysis&Interpretation Findings 57- 61 Recommendations Conclusions Bibliography Books/ Articlesreferred Websites referred 7 62 Chapter-1 Introduction 8 Introduction This project work titled “A study on sales & distribution of The Hindu ‘Business Line’ newspaper for achieving competitive advantage in Hyederabad” was carried out by me in The Hindu , Hyderabad; mainly focusing on sales. The Hindu : The Hindu is an Indian English-language daily newspaper founded and continuously published in Chennai since 1878. According to the Audit Bureau of Circulations, it has a circulation of 1.46 million copies as of December 2009. The enterprise employed over 1,600 workers and gross income reached $40 million in 2010. According to the Indian Readership Survey 2011 The Hindu is the third most widely read English newspaper in India with a readership of 2.0 million people. It has its largest base of circulation in Southern India, especially in Kerala and Tamil Nadu. It is the most widely read English daily in Kerala. Headquartered at Chennai . The Hindu was published weekly when it was launched in 1878, and started publishing daily in 1889. The Hindu became, in 1995, the first Indian newspaper to offer an online edition. The Hindu is printed at 17 locations Chennai, Coimbatore, Bangalore, Hyderabad, Madurai, Noida, Visakhapatnm, Thiruvananthapuram, Kochi, Vijayawada, Mangalore, Tiruchirapalli, Kolkata, Hubli, Mohali, Allahabad, and Kozhikode. 9 Objectives of the study: To study the understanding of consumer behaviour. To create visibility in the market and to find the impact of it. To Increase the new customer of daily business newspaper. To study the increasing sales through promotion. To understand the strength of Business line compared to the competitors. To know the compititive status of Business line in the market. Need of the study: To maximizing sales of daily business news paper To increasing brand awareness in the market To Know the customer perception about Business line newspaper Scope of the study: To increase the circulation of Business line To analyze the complete distribution channel in the whole Hyderabad region. To amass enough data to make meaningful comparisons between the company and its competitors. Limitations: Time consuming process. Limitation to lack of intrest of consumer . Lack of communication between sales person and consumer. Our Respondents: Sales Person Distributers 10 Sales: A sales is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity. In the broadest sense, sales is any practice which contributes to the sale of products to consumer. It means when the consumer intrested to buy product than sales person can easily handel of consumers. The salesperson is the provider of the goods or services completes a sale in response to an acquisition or to an appropriation or to a request. Sale can have different meanings but what is the most important thing in it, is to understand the importance of it. Without sale no revenue can be generated but just earning revenue is not to sale, it is the right type selling to the right customer with the right attitude. Customer relationship is most important, maintaining the brand image is also important. Delivering on the brand promises becomes a moment of truth in any customer relationship. This moment of truth can be either positive or with negative impact on the customer’s perception about your brand. There might be great marketing communication and a highly superior product, but the buying experience always stands between the seller and the customer. If the customer has a negative impact about the product then it is a direct deterioration of the brand equity. Hence, sales and distribution is a vital activity. Sales hence comprises of the outcome of what all which was done to manufacture that product. Success of selling department is the success of the company. Business line is the product where the maximum demand would be in the early morning. It is highly perishable product. The product should reach the customer in due time otherwise the importance is lost. Hence time management is something very vital for the sales and distribution people. 11 Subscription Sale : A one year or two year by subscription by paying fixed amount is sale by subscription Cash Sales Customers when paying the amount to purchase a newspaper directly to the book stall in cash then the sale is said to be a cash sales. Line Sales Line sale is the in which it is post paid billing. When the customer gets the Business line copy through the vendor and pays in the end of month, it is line sale. Institutional Sales Few corporate, hotels and colleges take copy in bulk, which is said to be as institutional sale. The Hindu has the responsibility till the delivery at their doorstep and further distribution is on the company or the institution concerned. Corporate Sales In corporate sales, executives have to do cold calling or they have to take appointment from the concerned person and then after meet, executive must convince the client. If it is big corporate and staff are such that, they read financial daily at their home, then for bulk subscription they have to try. Distribution: Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. Distribution is exactly for maintaining the brand equity in the market. The promises which were made to the customers can be fulfilled by the proper channel and the right time delivery of the newspaper. 12 Distribution Types Intensive distribution- It means the producer's products are stocked in the majority of outlets. This strategy is common for basic supplies, snack foods, magazines and soft drink beverages. Selective distribution- It means that the producer relies on a few intermediaries to carry their product. This strategy is commonly observed for more specialised goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances. Exclusive distribution- It means that the producer selects only very few intermediaries. Exclusive distribution is often characterised by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others. This strategy is typical of luxury goods retailers such as Gucci. 13 Distribution channel of Business line newspaper Raw Material Printing Press City-1 City-2 City-3 City-4 Agents in each city Bookstalls Vendors Hawkers Hawkers Reader’s 14 City-5 Chapter-2 Company Profile 15 Company Profile The Hindu was founded in Madras on 20 September 1878 as a weekly by four law students (T. T. Rangachariar, P. V. Rangachariar, D. Kesava Rao Pantulu and N. Subba Rao Pantulu) led by G. Subramania Iyer, a school teacher from Tanjore district and M. Veeraraghavachariar, a lecturer at Pachaiyappa's College. The Hindu was started to support the campaign of Sir T. Muthuswamy Iyer for a judgeship at the Madras High Court and to counterbalance the propaganda against him carried out by the AngloIndian press. The Hinduwas one of the many newspapers of the period established to protest against the discriminatory policies of the British government in India. About 80 copies of the inaugural issue were printed at Srinidhi Press, Georgetown on one rupee and twelves annas of borrowed money. Subramania Iyer became the first editor and Veeraraghavachariar, the first Managing Director of the newspaper. The paper was initially liberal in its outlook and supported the continuation of British rule in India. The paper initially printed from Srinidhi Press but later moved on Scottish Press, then, The Hindu Press, Mylapore, and finally to the National Press on Mount Road. Started as a weekly newspaper, the paper became a tri-weekly in 1883 and an evening daily in 1889. A single copy of the newspaper was priced at four annas. The offices moved to rented premises at 100 Mount Road on 3 December 1883. The newspaper started printing at its own press there, named "The National Press," which was established on borrowed capital as public subscriptions were not forthcoming. The building itself became The Hindu's in 1892, after the Maharaja of Vizianagaram, Pusapati Ananda Gajapati Raju, gave The National Press a loan both for the building and to carry out needed expansion. Its editorial stances have earned The Hindu the nickname, the Maha Vishnu of Mount Road. "From the new address, 100 Mount Road, which to 16 remain The Hindu's home till 1939, there issued a quarto-size paper with a front-page full of advertisements—a practice that came to an end only in 1958 when it followed the lead of its idol, the pre-Thomson Times—and three back pages also at the service of the advertiser. In between, there were more views than news."After 1887, when the annual session of Indian National Congress was held in Madras, the paper's coverage of national news increased significantly, and led to the paper becoming an evening daily starting 1 April 1889. The partnership between Veeraraghavachariar and Subramania Aiyer was dissolved in October 1898. Aiyer quit the paper and Veeraraghavachariar became the sole owner and appointed C. Karunakara Menon as editor. However, The Hindu's adventurousness began to decline in the 1900s and so did its circulation, which was down to 800 copies when the sole proprietor decided to sell out. The purchaser was The Hindu's Legal Adviser from 1895, S. Kasturi Ranga Iyengar, a politically ambitious lawyer who had migrated from a Kumbakonam village to practise in Coimbatore and from thence to Madras. Kasturi Ranga Iyengar's ancestors had served the courts of Vijayanagar and Mahratta Tanjore. He traded law, in which his success was middling but his interest minimal, for journalism, pursuing his penchant for politics honed in Coimbatore and by his association with the `Egmore Group' led by C. Sankaran Nair and Dr T.M. Nair. Managemant The Hindu is family-run. It was headed by G. Kasturi from 1965 to 1991, N. Ravi from 1991 to 2003, and by his brother, N. Ram, from 27 June 2003 to 18 January 2012. Other family members, including Nirmala Lakshman, Malini Parthasarathy, Nalini Krishnan, N Murali, K Balaji, K Venugopal and Ramesh Rangarajan are directors of The Hindu and its parent company, Kasturi and Sons. S Rangarajan, former managing director and chairman since April 2006, died on 8 February 2007. Ananth Krishnan, who is the first member of the youngest generation of the family to join the business has been working 17 as a special correspondent in Chennai and Mumbai since 2007. It now conducts very popular "The Hindu Young World Quiz', hosted by noted quizmaster V.V. Ramanan, that has now completed 12 years and is arguably the largest live, middle-school quiz competition. Managing Directors- (The head office of The Hindu) M. Veeraraghavachariar (1878–1904) S. Kasturi Ranga Iyengar (1904–1923) K. Srinivasan (1923–1959) G. Narasimhan (1959–1977) N. Ram (1977–2011) K. Balaji (2011 – present) Editors G. Subramania Iyer (1878–1898) C. Karunakara Menon (1898–1905) Kasturi Ranga Iyengar (1905–1923) S. Rangaswami Iyengar (1923–1926) K. Srinivasan (1926–1928) Rangaswami Iyengar (1928–1934) K. Srinivasan (1934–1959) S. Parthasarathy (1959–1965) G. Kasturi (1965–1991) N. Ravi (1991–2003) N. Ram (2003–2012) Siddharth Varadarajan (2012) 18 Board of Directors The Hindu Group is managed by the descendants of Kasturi Ranga Iyengar. As of 2010, there are 12 directors in the board of Kasturi & Sons N. Ram, N. Ravi N. Murali Malini Parthasarathy Nirmala Lakshman Nalini Krishnan Ramesh Rangarajan Vijaya Arun Akila Iyengar K. Balaji K. Venugopal Lakshmi Srinath Achievement The Hindu has many firsts in India to its credit, which include the following 1940: First to introduce colour 1963: First to own fleet of aircraft for distribution 1969: First to adopt facsimile system of page transmission 1980: First to use computer aided photo composing 1986: First to use satellite for facsimile transmission 1994: First to adopt wholly computerised integration of text and graphics in page make-up and remote imaging 1995: First newspaper to go on Internet 19 The Times London listed The Hindu as one of the world's ten best newspapers in 1965. Discussing each of its choices in separate articles, The Times wrote: “The Hindu takes the general seriousness to lengths of severity... The Hindu which is published in Madras, is the only newspaper which in spite of being published only in a provincial capital is regularly and attentively read in Delhi. It is read not only as a distant and authoritative voice on national affairs but as an expression of the most liberal and least provincial southern attitudes... Its Delhi Bureau gives it outstanding political and economic dispatches and it carries regular and frequent reports from all state capitals, so giving more news from states, other than its own, than most newspapers in India. It might fairly be described as a national voice with a southern accent. The Hindu can claim to be the most respected paper in India.” In 1968, the American Newspaper Publishers' Association awarded The Hindu its World Press Achievement Award. An extract from the citation reads: “Throughout nearly a century of its publication The Hindu has exerted wide influence not only in Madras but throughout India. Conservative in both tone and appearance, it has wide appeal to the English-speaking segment of the population and wide readership among government officials and business leaders... The Hindu has provided its readers a broad and balanced news coverage, enterprising reporting and a sober and thoughtful comment. It has provided its country a model of journalistic excellence. It has fought for a greater measure of humanity for India and its people and has not confined itself to a narrow chauvinism. Its Correspondents stationed in the major capitals of the world furnish The Hindu with world-wide news coverage... For its championing of reason over emotion, for its dedication to principle even in the face of criticism and popular disapproval, for its confidence in the future’’, 20 Online Presence The Hindu was the first newspaper in India to have a website, launched in 1995. On 15 August 2009, the 130-year-old newspaper, launched the beta version of its redesigned website at beta.thehindu.com. This was the first redesign of its website since its launch. On 24 June 2010 the beta version of the website went fully live at www.thehindu.com. The new website retains its core values of independence, authenticity, and credibility while adopting contemporary web design principles, tools, and features. The design is by Mario Garcia Jr., of Garcia Media, Tampa, Florida, USA. The workflow solution is by CCI Europe A/S, Denmark. The web publishing system is from Escenic A/S, Norway. The implementation was done in-house. Product & Subscription ratesSubscription rates (in Rs.) Half yeary (180 issues) The Hindu Through news Annual (361 issues) (All days) 478 955 Agent By Post 658 1316 The HINDU( Saturday/ Sunday edition only) Through news 78 156 Agent By Post 91 182 Business line (All days) Through news 746 1496 Agent 21 By Post 926 1875 Business line (All weekday issue) Through news 104 208 130 260 Agent By Post Business line (Sunday issue only ) Through news 130 260 156 312 Agent By Post Sport star Through news 312 624 1248 1872 650 900 1040 1560 Agent By Post 200 350 Frontline Through news 260 520 Agent By Post 200 350 Our Other Publications: Survey of Indian Industry Survey of Indian Agriculture Survey of the Environment The Hindu Speaks on Libraries The Hindu Speaks on Management Vol. I & II The Hindu Speaks on Education The Hindu Speaks on Religious Values The Hindu Speaks on Music 22 650 925 The Hindu Speaks on Scientific Facts Vol. I & II From the pages of T Hindu - Mahatma Gandhi: The Last 200 Days About Business line The Hindu Business Line is published by Kasturi & Sons. It is the only white business newspaper published in the market. It started publishing from the year 1994 and it entered the market in the year 2006 and started publishing from here. Presently it is publishing from 14 locations in India. It is the highest selling newspaper among all the business newspaper in India after The Economic Times owned by Bennett, coleman and co. ltd with a per day circulation figure of 0.163 millions. And it is in 29th position as compared to all the newspaper all over India as per the number of circulation. The Economic Times is the market leader with a per day circulation of .651 among the business newspaper and is in 21st position among all the newspaper in India. Its editor-in-chief is Mr. N.Ram and the joint Editor is Mr. K.Venugopal. Mohan Padmanabhan writes many of the articles. It staffs consist of reporters and researchers. It is the only newspaper having a research bureau. The content of Business Line newspaper is as follows : Main section of Business Line On Mondays, Business Line's main section has 16 pages. Page headings include Market Mood, economy, Information technology, AgriBusiness, Transport, Commodities Investment The New Manager-Keep your date with leaders from the world of business, Mentor-A comprehensive resource on taxation, financial systems and books, Money & Banking, Editorial & Opinion, states and Variety. 23 On Sundays, Business Line's main section has 18 pages. Page headings include Economy, Commodities, Corporate, International, Variety, Young Investor and Investment World-from page 8 to page 17, Incisive advice on stocks, mutual funds and deposits. From Tuesday to Saturday, Business Line's main section has 20 to 24 pages. Page headings include Corporate, Information Technology, Marketing, Editorial & Opinion (2 pages), Commodities & Agribusiness, Economy, International Business, Stock Market news, Stocks and Mutual Fund quotes (5 pages), States Variety, Logistics and Market Watch. Supplement of Business- Monday :- The New Manager, Mentor, eWorld. Wednesday :- Smartbuy. Thursday:- BrandLine. Friday :- Life. Sunday :- Investment World. Pricing of Business Line For non-subscription part On week days it is Rs. 4 (i.e. from Monday to Friday). On weekends it is Rs.3 (i.e. on Saturday and Sunday). For subscription part Half-yearly subscription ------ Rs.300/ Annual subscription ------------ Rs.600/- 24 Competitors in the market The Economic Times The Economic Times is published by the Bennett, coleman & Co. Ltd. The Economic Times, started in 1961, is India's largest and among the world's top 3 English Business dailies with a daily circulation of over 620,000 copies. The Economic Times is published simultaneously from 10 Metropoliton CitiesMumbai, Delhi, Bangalore, Chennai, Kolkata, Lucknow, Hyderabad, Ahmadabad, Chandigarh & Pune. Editors 1960s and 1970s: PS Hariharan (1961-1964), 1964-1979: DK Rangnekar, 1980s: Hannan Ezekiel, Manu Shroff (1985-1990) 1990s: T.N. Ninan, Swaminathan Anklesaria Aiyar 2004: Rajrishi Singhal and Rahul Joshi As of 24 April 2004 till now: Rahul Joshi Business Standerd Business Standard is a financial daily from Business Standard Ltd (BSL). It is published in two languages (English and Hindi) from 14 centres in India. The main English edition comes out from 12 centres - Mumbai,New Delhi,Kolkata,Banglore,Chennai,Ahmedabad,Hyderabad,Chandigarh,Pune,Lu cknow, Bhubaneswar, and Kochi - and reaches readers in over 1,000 towns and cities across the country. Started in 1975 by the Ananda Bazar group. It was bought by Mumbai-based financial investors led by the Kotak Mahindra Bank, after which it began a phase of rapid expansion with the launch of new editions. Business Standard sells 144,000 copies daily in English. Its Hindi edition sells 53,000 copies. 25 Financial express The Financial Express is a daily newspaper published by the Indian Express group since 1961. The newspaper publishes eleven editions in English from leading cities -Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai and Pune. It also has an edition in Gujarati, published from Ahmedabad. The newspaper has offices across the country and is headquartered in Delhi. Newspaper content Latest News Corporate and Mark Front Page Stocks Politics Edits & Columns International Economist Fe special Fe 360 Fe centers Fe web specials Sme world Supplements EFe Brand wagon India inc Fe investor The Mint The ‘mint’ brand and logo were unveiled in Delhi by HT Media Vice Chairperson, Shobhana Bhartia, and Christine Brendle, Asian Managing Director of The Wall Street Journal on January 30. Also on stage was the paper’s designer Mario Garcia, the world-renowned newspaper designer. The Wall Street Journal is ‘mint’s exclusive partner. The business daily will be available six days a week, though the possibility of coming out with an edition on Sunday isn’t ruled out depending on the reader response. The paper has been priced at Rs 2. ‘mint’ is being launched in a unique Berliner size that will bring, for the first time to discerning readers in India, a globally proven, convenient format. HT Media has entered into a content sharing agreement with The Wall Street Journal, whereby 20 per cent of the content will be sourced from WSJ. 26 Garcia, who has designed over 500 newspapers worldwide, including WSJ, said, “With the introduction of ‘mint’ we not only celebrate the birth of a newspaper, but also the concept of newspapers as a viable and necessary medium. At a time when some prematurely announce the impending demise of the print medium, citing the importance and fast rise of the electronic media, the birth of ‘mint’ reminds us of the value of the printed word. Readers continue to read, but they are, indeed, more selective about what they read.” “It is a clear recognition that our readers are Comparison of Business Line with its Competitors SR. PARAMETER NO. 1 Price BUSINESS THE ECONOMIC BUSINESS STANDARD TIMES Weekdays-3 Weekdays- Rs. Rs LINE 3&3.50 Weekdays-4 Rs. FINANCIAL EXPRESS Mon to Fri – 4 Rs. Sat- 6 Rs. Weekend -6 Weekend- 10 Rs. Rs. 2 Collaboration Kotak Benett & collman Weekend Rs Rs. The Hindu Indian Mahindra 3 Stock Express market BS 200, 6 full Less pages analysis -4 Sunday – 8 page of share Less Less information details 4 News Only Business Business + General Business + Business General 5 Publication Own house 6 Pages (Avg) 22-26 7 Color of pages Pink Bennett, Collaman & The Hindu Indian Co. ltd. express 12-22 18-20 14-20 Pink White Pink 27 8 Updates No Week update on No No Sunday 9 Language Easy 10 No. of location 12 cities Easy Hard Moderate 11 cities 17 cities 11 cities 1st 4th 3rd of Publication 11 Position in the 2nd Market 28 Chapter-1(B) Industry Profile 29 History of Print mediaHistory of print media and written communication follows the progress of civilization which, in turn, moves in response to changing cultural technologies. The transfer of complex information, ideas and concepts from one individual to another, or to a group, underwent extreme evolution since prehistoric times. It has been 30,000 years later since the first recorded evidence of written communication and it is still dramatically changing. Nowadays perhaps faster than ever before due to amazing advances in technology in recent years. Technical breakthroughs alter the way we perceive the universe and manner in which we communicate with one another. As long ago as 25,000-30,000 years B.C. first humans’ painted descriptive pictures on cave walls. The narrative compositions left on the walls of Lascaux represented their own way of communicating with the spiritual world and another. The well-preserved drawing depicted their deep religious beliefs, fears, and everyday life. The pictorial type found in caves of Southern France and Spain is the beginning of written communication for the human kind. In early 19th century the industrial revolution brought major innovations in printing technology. In 1810, Friedrich Koenig applied steam power to printing press. Rotary steam presses replaced hand operated machines, doing the same job in a small fraction of the time. Typesetting was transformed by the introduction of line-casting machines; first Ottmar Mergenthaler’s Linotype (1889), and then the Monotype machine. Line casting allowed type be chosen, used, and then re circulated back into the machine automatically. The age of industrial revolution made transfer and interchange of written information between cities as well as continents readily available. In 1831 Joseph Henry invented the first electric telegraph, four years later in 1835 Samuel Morse Formulated Morse code, and then in 1843 he also produced the first long distance electric telegraph line. At the same time, Alexander Bain patented the first fax machine. In 1867 Thomas Edison patented his 30 mimeograph, which was the first office-copying machine, which might inspire Chester Carlson, almost a century later; to invent the photocopier machine. Business life was irreversibly changed with in the introduction to the market of Remington typewriter (1874). Journalism also became more accessible when in 1914 Howard Krum introduced Teletype. Knowledge of Morse code was no longer needed to distribute information. Nowadays, the print industry goes through a dry spell. Printing becomes increasingly more expansive. To combat with this problem the industry increased use of digital printers that can efficiently produce high quality paper books on demand. CAP Ventures predicted that within five years, 80% of all print will be ordered via www. This created new model of publishing- so called e-publishing (on demand). The printed book is currently under attack by ebook. Present e-books are handheld devices in which books can be downloaded in a file form and read on a backlit screen using buttons to maneuver through text. There have been also experiments with on-line book distribution by Stephan King, David Saperstein, Mary Higgins and others authors. The Indian entertainment and media industry is expected to grow at 18% compound annual growth rate (CAGR) and reach a projected size of Rs 1,00,000 crore by 2011 from its present size of Rs 43,700 crore (for CY06), according to the 2007 edition of FICCI Price water house Cooper’s (PWC) annual report on the Indian entertainment and media Industry. The report states that the industry grew at 20% over the 2005 figure which was Rs 36,400 crore. For 2004, the figure was Rs 31,100 crore. The key reasons behind the growth are technological advances, positive government initiatives in terms of policy and foreign investment, and 31 energized initiatives by private media companies coupled with rising income levels and India’s robust economic growth-led consumerism. Information and broadcasting Minister PR Dasmunshi will release the report at the opening of the FICCI-FRAMES event on March 26 in Mumbai. Sectorally, the Internet advertising industry is set to post the highest CAGR of 43%, rising from its current size of Rs 160 crores to Rs 950 crores in 2010. The Television industry is projected to grow 22% CAGR from Rs 19,100 crore to Rs 51,900 crore by 2011. The move towards CAS/DTH is considered the major driver for this growth with subscription revenues set to take the segment to the projected heights. “The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe for the pay services,” the report said. The film and entertainment sector is expected to grow by 16% CAGR from Rs 8,500 crore to Rs 17,500 crore. The major reason for this high growth rate is that the industry is increasingly getting more corporative, highlighted by public issues of several film production, distribution and exhibition companies, long term contracts between film production companies and directors/ actors and the fact that more than half of 2006’s releases were by corporate rather than individual banners. The print media is expected to grow by 13% CAGR from Rs 12,800 crore to Rs 23,200 crore by 2011. “Current estimates reveal that print media’s reach in India has increased to 22 crore people. Print media is also the favorite segment for global investors with maximum foreign investment in this segment. The print media industry has much potential as 36.9 crore literate people in India are still not tapped by any publication,” the report said. Newspaper –A Brief History The newspaper as we know it today is a product born of necessity, invention, the middle class, democracy, free enterprise, and professional standards. Pre-history "newspapers" were one-to-one in nature. The earliest variation on a newspaper was a daily sheet published in 59 BC in Rome called Acta 32 Diurna (Daily Events), which Julius Caesar ordered posted throughout the city. The earliest known printed newspaper was in Beijing in 748. In 1451, Johannes Gütenberg uses a press to print an old German poem, and two years later prints a 42-line Bible -- the significance being the mass production of print products, ushering in an era of newspapers, magazines, and books. By 1500, the genesis of a postal system can be seen in France, while book publishing becomes popular throughout Europe and the first paper mill can be found (England). Zeitung (newspaper) is a news report published in Germany in 1502, while Trewe Encountre becomes the earliest known English-language news sheet in 1513. Germany's Avisa Relation oder Zeitung, in 1609, is the first regularly published newspaper in Europe. Forty-four years after the first newspaper in England, the Oxford Gazette is published, utilizing double columns for the first time; the Oxford/London Gazette are considered the first true newspaper. The first North American newspaper, Public Occurrences Both Foreign and Domestic, was published in 1690 in Boston. The 1700s was a century in which market elements were created that encouraged the development of daily newspapers: rising literacy, the formation of nation-states, a developing postal system, and the proliferation of urban centers, a rising literary and philosophical tradition emphasizing democratic involvement in government, and technologies that supported newspaper production. In short, it was a great news century. The first daily newspaper was The Daily Courant in London, 1702. In 1754, The Daily Advertiser in London uses the first four-column format. France's first daily newspaper appears in 1777, Journal de Paris, while the first United States daily was the Pennsylvania Packet in 1784. The rise of the middle class transformed newspapers in the 1800s. A penny (US$0.01) buys a New York newspaper in 1833, opening up the first mass market for newspapers. In 1847, the telegraph is used as a business tool, transforming far-away stories. In 1873, an illustrated daily newspaper can be seen in New York. In 1878 the first full-page newspaper advertisements 33 appear, and in 1880 the first photographs are seen in newspapers, using halftones. With the basic technical groundwork for the modern newspaper in place by the late 19th century, the story of newspapers in the 20th century was about professional development and adaptation to changing consumer and media markets. The story also involved an evolving business model that rode an ever-growing wave of mass-market advertising. Increased profitability and higher revenues attracted publicly owned corporations interested in buying newspapers from descendants of company founders, while simultaneously exposing newspapers to the whims of cash- and profit-hungry stock markets. By 2000, newspapers were juggling priorities: fragmentation of news consumption, fragmentation of advertising investments, the advantages and disadvantages of being a mass medium, balancing the wants of the marketplace with the company's duty to provide the needs of the marketplace, a journalistic backlash against industry changes, the sheer physicality of inkon-paper production and distribution versus digital distribution, increasing profit pressure surrounding the core print product, and extension of the company's core brand into other profit centers. All indiia media penetration as of 2010 Here we can say that in the present scenario media has been spread widely. The share of Media is as below : Print Media 20%, TV Media 41% Cable and Satellite 16% Radio 17% Film 5% Internet 1% 34 Porter’s five force model analysis Porter's 5 forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive 5 forces that determine the competitive intensity and therefore attractiveness of a market. The threat of substitute products: T.V. Media Magazines Internet Seminars and lectures of experts o What can the factor of substitute product? o buyer propensity to substitute o relative price performance of substitutes o Perceived level of product differentiation The threat of the entry of new competitors Profitable markets that yield high returns will draw firms. The results are many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level . economies of product differences brand equity capital requirements access to distribution learning curve advantages expected retaliation by incumbents 35 The intensity of competitive rivalry Total NO. Of competitors of Business Line are The Economic Time Business Standerd Financial Express Mint number of competitors rate of industry growth exit barriers diversity of competitors informational complexity and asymmetry level of advertising expense Economies of scale Sustainable competitive advantage through improvisation 36 Chapter-1 (C) Litrature Review 37 Sales management Sales planning It is the first step in the sales management process Sales planning guides the organization in achieving its objectives in a systematic manner leading to profitability and success. In case of newspaper industry plans are formulated keeping in view the overall sales strategy and objectives of individual organizations. Since circulation is the main thing in the newspaper industry, all the planning is intended to increase the circulation base of newspaper .The main source of revenue for a newspaper company is the advertisements and they can charge more for advertisements only if their circulation base is higher. This circulation base is increased by eating into the competitor's circulation. The head office decides the targets for all branches in the country and this is communicated to marketing manager of branches across the country. The marketing manager of the branch then allocates targets for every sales executive in the branch. The marketing manager asks each sales executive to target a particular segment. Segment can be hotels, educational institutes, corporate offices, IT companies, MBA students as well as students preparing for competitive examination like CAT, XAT, etc. Organizing and directing sales efforts Most of the newspaper companies hire graduates who are well versed in local languages as selling newspaper require interacting with vendors and intermediate agencies. They generally do not hire MBAs or Post Graduates as they are more prone to attrition. The attrition rate is very high in this industry especially in the second rung companies. Time Management: Time management is very important as the executives have to visit morning centers at around 5 to 5.30 a.m. in the morning to meet the vendors to ensure the timely delivery of newspapers. Morning centers are places where all the newspapers are dropped and vendors come here to collect newspapers for 38 their locality. Most of the activities happen between 3.30 a.m to 5.30 a.m. Within this short span they have to meet the vendors and ensure that they are regularly supplying the newspapers. On the job traning : The sales force is briefed about the newspaper and supplements and then they are sent to the field for training. In this industry the training is mostly on the job where executives have to go and sell the subscription to the customers. Compansation plan : Generally combination salary plans are followed in newspaper industry. This type of plan includes a combination of salary, commission and other type of incentive plans. As sales people get regular income in the form of monetary incentives, they are continuously motivated and it also provides sales person with the advantage of both a fixed salary and variable income. Every executive is given a minimum target to achieve and on exceeding this target they are given an incentive. Evaluating sales force performance: The performance of sales force is measured in terms of the number of subscriptions generated by each sales person. At the end of the month they collate how many subscriptions have been generated by executives and on the basis of subscriptions generated salary is computed. Review of Business line newspaper ‘’I would like to write about the Brand Quest contests which gets issued on Business Line every Thursday. I hope, people are aware of that. Its a wonderful quiz testing one’s Brand awareness, and general Business Happenings across the globe. There are about 10 questions to be answered, and it has a seperate question on identifying the logo and the personality associated with any businersses. I participate almost regularly and there are fabulous prizes to be won . Its been sponsored by Tibre Trousers, and if you win , you get Rs 1000 /- voucher, which could be exchanged for getting Tibre 39 fromals or casuals. In fact, a mail is being sent if you are amongst the three winners, and after getting a confirmation from you regarding the size, they even send by courier, the prize to your respective residence’’. A good contest , if in case yoiu are interested in Brand equity and Awareness. ‘’Business Line is an unique business daily in India. Unlike the Economic Times, which is more of a Business paper, the Business Line is a paper about economics. Those interested in the serious views and analysis on the economy and markets will find Business line delightful.The paper models itself on The Wall street Journal, by being a ’’white’’ business journal. Its news are less sensational as compared to the other business dailies in India. It gives equal importance to the new and old economy. I always believe that money can be made in those sectors where less noise is made. Thats what the Business Line follows, it focuses on those sectors that offer great potential. The quality of journalism is as good as any publication from The Hindu group. The paper does suffer from the lack of good supplements. It does not offer a good read during the weekends. It can be boring for some who have just started to show interest in markets and economics. I would recommend the FE or ET for them. Business Line is also a great value for money. It does not fill its pages with advertisements as is the case with most business journals. Another suprising factor is that it is less left leaning than its parent publication The Hindu.’’ ‘’This is not a NP for the light hearted -- nothing of the usual market gossip and advertisements which every other business newspaper is filled. I do not have anything against those but if you are looking for real core economic analysis and unbiased stuff, I strongly recommend Business Line. The newspaper does one of the best articles at the maacro/micro levels (P R Brahmananda’s economic and other topics on Sat. are at times too core for a lay man to get a hold). The paper has a wide coverage of the major coverage of the entire markets -- equities, debt, commodities. Especially, the commodity futures coverage is pretty useful for the traders. The Sunday edition (with 40 Investment World) analyses the capital market trends in full -- fundamental calls, technical analysis, debt market coverage, project studies. MS Narsimham, though I tend to differ from his technical calls at times, yet I admire his philosphy. There are also articles for the lay man here -- persons in the learning stagewould benefit especially.The weekday magazines include one each on Itmarketing and general life. Certainly worthwhile to read. One problem however is that the newspaper is not published from Mumbai -so the Sunday edition, the one with the Investment World is available only on Monday. The other, as i mentioned is the standard of articles which sometimes only the people with a background in that subject can get the zist of.I would recommend everyone to try out BL over a period of one month -- it is difficult to shift loyalties on newspapers and toothpastes. But give it a try -there is real business out there.’’ 41 Chapter-3 Research Methodology & Data Collection 42 Research methodology: A market research process is considered as a sequence of some highly interrelated steps. Formulate the problem: The first valuable function of marketing research is to define the problem that need to be solved. Only problem can be defined carefully and precisely can research be designed to provide pertinent information? Determine the research design: The source of information For a study and research design go hand-in hand. They both depend on how much is known about the problem. According to this research work, this is a descriptive research and a crosssectional design. Because this research design is used "to describe systematically the facts and characteristics of a given population or area of interest, factually and accurately". And cross-sectional design, because the sample is typically selected to be the representative of some known universe. Data collection method and forms: My research study was based on primary data as well as secondary data sources. Primary data: Primary data are originated by the researcher for the purpose of immediate investigation at hand. In the dynamic nature of the business and customers, often information needed is not found in the firm’s data. The primary data is collected through personal interviews using structured Questionnaire, surveys and observations. 43 Secondary data Secondary data are the information that already exist, they were gathered for a previous purpose not for a particular study. The Secondary is collected from management of the makaan.com, various books, journals and Internet. Sample: Designing a sample consists of three steps: Sampling frame: The sampling frame is the list a population elements from which the sample will be done. As per my research work my target population was common people. Sample selection: Sample selection process requires specification about such things as whether it will be a probability or non-probability sample. As per my project research It is a probability and simple random sample, because each population element has a known, nonzero chance of being included in the sample and it is not necessary that the probabilities of selection be equal. Only that we can specify the probability with which each element of the population will be included in the sample. Simple random sample because, the identity of each member of target population is known that they are common people. Sample size: Sample size involves determining how many people, business organization or other entity must be studied to get sufficiently accurate and reliable information. I have taken 100 sample sizes for my research work. 44 Chapter-4 Data analysis &Interpretation 45 Data analysis & intrepretation Research is very essential part in every organization, because until knowing the preferences of customers it is difficult to provide a satisfactory service the preferences of various customers like individuals, agents and builders are different. The best way to know their preference is to conduct a personal interview. This interview helps us to know the need and wants of our customers as well as some relevant information, which will help us to maintain customer relationship as well as creating new potential customers. The research is carried out at various individuals top get feedbacks regarding relevance of selling part of Business line portal with The Hindu Hyderabad. For the data analysis I have selected 10 questions and these are as follows: Q.1] Which business newspaper do you buy? Q.2] What are your criteria for choosing a business newspaper? Q.3] How frequent you read Business newspaper? Q.4] Why do you refer a particular newspaper? Q.5] Are you satisfied with your purchase decision of a particular Business line newspaper? Q. 6] since how long have you been reading a financial daily? Q.7] which is the factors you take in to consideration before purchasing financial newspaper? Q.8] if you are given any discount on the yearly subscription of financial newspaper then which newspaper you will subscribe? Q.9] How do you rate the content of the business newspaper you are using? Q-10] How do you rate the service provided by the newspaper you are using? 46 Q.1] Which business newspaper do you buy? Newspaper Percentage Economic times 33 Business line 29 Business standerd 18 Financial express 14 Mint 6 Total 100 Series 1 35 30 25 20 15 10 5 0 Series 1 The Economic times Business line Business standerd Financial express Mint The Economic Times enjoy the lion‟s share in the business newspaper market. Interpretation- Economic Times is the number 1 name when business news is taken into consideration. Economic times has captured the market & is a brand name in the mind of the people, as it gives all the information about the business, shares, investment etc. and is present in the market for last 50 years. Other newspaper like Business Line, Mint & Business Standard are also brand names but their market share is low as compared to Economic Times. Business standard is second best selling newspaper in Hyderabad as it is also there in the market since last 35 years. Business Line as entered into market in the year 2006 and is growing rapidly. Financial express and Mint are having a very low market share. 47 Q.2] What are your criteria for choosing a business newspaper? Criteria of choosing a business percentage newspaper Price 26 Editorial advocacy 34 Progeressive outlook 40 Sales Price Editorial advocacy Progeressive outlook Interpretation A criterion was prepared so as to find what the bases on which people buy newspaper are. From the research we came to know that progressive outlook has much more importance. Then comes editorial advocacy followed by price. According to the research , it was found out that Business Line has a good perception in the mind of customer for being a very good newspaper on the basis of editorial advocacy. The only reason is that it is backed by The Hindu which is a brand and is famous for its editorial section. Mint could be a big threat to any other newspaper as it has placed itself in the market with quality in term of progressive outlook and pricing itself very low. 48 Q.3] How frequent you read business newspaper? Factor Percentage Regularly 69 Occasionally 31 Total 100 Series 1 35 30 25 20 Series 1 15 10 5 0 Regularly Occasionally Interpretation From the above graph we come to know that around 69% of consumer Read buusiness newspaper regularly. While 31% of consumer read newspaper Occasionally. 49 Q.4] Why do you refer a particular business newspaper? Factor Percentage Simple language 4 Financial News 22 Quality 26 Authentic news 21 Authentic news & quality 11 Financial news & quality 16 Total 100 Series 1 30 25 20 15 Series 1 10 5 0 Simple news Financial news Quality Authentic news Authentic news & quality Financial news & quality Interpretation From the above graph it can be clearly stated that 26% of people refer a particular business newspaper due to the quality. Around 22% of consumer refers a particular business newspaper due to financial news. 11%, 16.%, 4 & 21% of consumer refers a particular newspaper due to authentic news & quality, financial news & quality & simple language & only authentic news respectively. 50 Q.5] Are you satisfied with your purchase decision of a particular business line newspaper ? Factor Percetage Very satisfied 64 Somewhat satisfied 26 Moderate 10 Somewhat Dissatisfied 00 Very Dissatisfied 00 Total 100 Sales Very satisfied Somewhat satisfied Moderate Somewhat dissatisfied Very dissatisfied Interpretation Around 64% are highly satisfied with the purchase decision they have made. 26% of the readers are somewhat satisfied While 10% of consumer feel they are moderate. Not a single consumer are Dissatisfied by the purchase decision. 51 Q. 6] since how long have you been reading a Business daily newspaper? Year Percentage Below 1 year 18 1 to 4 year 20 5 to 10 year 22 10 to 15 year 26 Above 15 year 14 Series 1 30 25 20 15 Series 1 10 5 0 Below 1 year 1 to 4 year 5 to 10 year 10 to 15 year above 15 year Intrepretation- 26% of the reader is since 10 to 15 years to read financial daily and minimum 14 % of the readers above 15 year. 52 Q.7] which is the factors you take in to consideration before purchasing Business line newspaper ? Factors Percentage Stock information 35 News coverage 30 Price 6 News coverage Stock information & 20 Discount 9 Total 100 Sales Stock information News coverage Price News ccoverage & stock informationoverage Interpretation: Around 35% of the consumer says stock information is the factor that will be given important before purchasing financial dailies. While 30% of consumer said they will be giving importance to News coverage. Around 9% of consumer told they will be taking the factor of discount before purchase decisiont and also 6% of price factor. Around 20 % of consumer told they will be giving importance to both News coverage & stock information. Here we can clearly see that price & discount is not a big factor for the consumer . 53 Q.8] if you are given any discount on the yearly subscription of business newspaper then which newspaper you will subscribe? Newspaper Percentage Economic times 52 Business standerd 20 Financial express 16 Business line 12 Total 100 Series 1 60 50 40 30 Series 1 20 10 0 Economic times Business standerd Finacial express Business line Interpretation: Around 52% of people told that they will be purchasing Economics Times if they are given discount on the yearly subscription. 20% & 16% is in the case of BS & FE respectively. Around 12% of consumer told that they will purchase Business Line if they are given any yearly discount. 54 Q-9] How do you rate the content of the business newspaper you are using? Outlook 1st 2nd 3rd 4th The Economic times 25 33 37 5 Business standerd 18 48 28 6 Business line 8 55 35 2 Financial express 4 48 39 9 The Mint 1 39 48 12 Interpretation- Economic Times being the market leader, is now being thought by the customer as a paper with degrading standard of news items. Business standard with T.N. Ninan being its chief-editor is maintaining its standard on the content of the newspaper. Business Line is rated highly by the customer when it comes to the coverage of the news item but it lacks in providing catchy headlines and colourful pictures and advertisement. Frontpage needs to be re-designed as suggested by some of the customer. 55 Q-10] How do you rate the service provided by the newspaper you are using? Outlook 1st 2nd 3rd 4th The Economic times -- 55 40 5 Business standerd -- 45 50 5 Business line -- 40 52 8 Financial express -- 30 60 10 The Mint -- 22 70 8 Interpretation it is the complete industry and not only 1 or 2 players in the market who lacks in providing The above survey shows that proper service to the customer. Hence, any company who will give good service and will keep very good customer relation with the customer will find a competitive edge over its competitors in the market. 56 Chapter-5 Finding , Recommendations & Conclusions 57 Findings The Economic times leaders in all business newspapaers in Hyderabad. Business Line is 2nd position in Hyderabad market. Mostly People frequently reading a business nnewspaper. People are very satisfied for purchase decision of Business line newspaper. People main factor of buying Businee line news paper because that 35% given the information of related to stock. From the analysis of the 9th question we come to know that out of a sample of 100 customer 50 are satisfied with the newspaper and the rest 50 customers feels that it is a good newspaper content wise but needs to be improved. From the analysis of the 10th question it is clear that the complete industry lack in providing proper service to the customer. Hence, which ever company improves its service will achieve competitive advantage over its competitors in the market. News covered by the newspaper i.e. the coverage plays an important role. Readers feel that the lack of news coverage may lead them to change the newspaper they read. Some of readers have switched to English daily only because of their need to improve their English but the percentage is negligible. News channels and Internet media has affected the reading pattern of the readers up to a considerable extent. The basic idea of reading a newspaper is to gain information and knowledge; hence the news coverage is a dominating factor in newspaper purchase as well as reading. 58 Due to increase in the usage of Internet, people prefer to do surfing on the net and thereby collect more information on the different aspects simultaneously. Service problem is the main problem with Business line, because in our survey I met so many people who did not get news paper on daily basis. 59 Recommendations Build proper positioning in the minds of the readers. Give certain small vouchers package at the time of any other festivals. Service check calls at regular intervals. Publishing their Club and giving membership to regular customers. Make some events with corporate to spread awareness of Business line. Collaborate with B-schools to provide copy of Business line newspaper at their home. Increase the number of centers from where the news paper is available. Give the more job related advertisements. Improve the delivery syetem of the newspaper and also improve distribution channel of the newspaper. Its need for more advertisement of Business line newspaper. Deployment technology in the value chain.of information 60 Conclusion The Newspaper industry revolves around 2 aspects i.e. Content and Service. If the company is good in content and poor in service or vice versa than it is very difficult to survive in the market and hence company needs to improve in both the frants. ntenCompany needs to re-think in the promotional aspect the organization and help Business Line to successfully achieving more circulation with that of The Hindu. The company seeking for an effective strategy to improve morning newspaper by pertaining its internal resource with external resource (the market), the competitive advantage can be achieved by concentrating all the available resource on one basic strategy which is short delivery time. The shot delivery time if administered efficiently and effectively could also result in less distribution cost. Hence, it has been clear that company needs to promote its newspaper more as the awareness among the potential customer is low and should also improve his service and be innovative and customer oriented while putting up the content in the newspaper. I conducted the survey with the objective of penetrating Business Line which is a Business Newspaper and we focused on finding out, what can be the competitive Advantage for the company. We found out how innovation takes place in Newspapers as per the customers expectations. According to the research conducted by us it is estimated that The Economic Times is the giant leader among all the business newspapers available in India. Then it comes Business standard, Business Line, Financial express and Mint respectively. This survey reveals that there is an open market available for Business Line, only thing it needs to do is focus on the service and content of the newspaper and with the competitive price margin it has and with the backing of the brand like The Hindu will definitely improve its circulation figure. 61 Bibiliography Books FolowedMarketing management--- Kotler & Keller (13th edition) Kotler & Armstrong 13th (editiobn) Ramaswamy & Namakumari Prof. SA.Sherlekar 13th(edition) SHH.Kazmi Sales&distribution management – Tapank panda,Sunil sahadev illustrate Research Methodology--- Churchill , Lacobucci and iisrael Mgzines-- Business world Web resourceshttp://www.google.co.in/url?sa=t&rct=j&q=ranking+of+business+newspapers+in+hyd eraba ranking of business newspapers in hyderabad - Google Search Business Line : Home Page News & Features http://www.google.co.in/url?sa=t&rct=j&q=www.thehindubusinessline.com&source=w eb& www.thehindubusinessline.com - Google Search http://www.google.co.in/url?sa=t&rct=j&q=ranking+of+the+hindu+business+line+in+h ydera http://www.google.co.in/url?sa=t&rct=j&q=organizational+structure+of+the+hindu+gr oup The Hindu : NATIONAL / ANDHRA PRADESH : Man with a mission for vision The Hindu - Wikipedia, the free encyclopedia BUSINESS LINE Review, Subscription, Price, Cost, BUSINESS LINE Online, Free, Famous, Pop http://www.google.co.in/url?sa=t&rct=j&q=review%20of%20literature%20the%20hind 62