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Industry Analysis 2013

EXECUTIVE SUMMARY

The Indian newspaper industry had gone through many transactions to gain the importance in market which it have today. Due to increment in other communication mediums, newspaper industry had to face certain backs but still remains in the top position when it comes to delivering news and other informations. Around 70-80% of the revenues earned by the industry is through advertisements. The growth of Indian newspaper industry is taking place with an increase in literacy rate. India has become second largest market for newspaper in the world after China. Newspapers have many different categories depending on locations and frequency of printing for readers (daily or weekly). Also, the revenue generated by newspaper industry depends on advertisements and economic situation of the country. The newspaper industry is affected by influence of macro environment on them. Different categories of newspaper exist in the industry because of difference in preference among the readers. The different categories such as sports, business, fashion or general news depending on choice. The porters five force model helped to analyze the buyer, supplier, competition, substitutes and new entry aspect of the industry. Due to changing needs of the reader the newspaper companies have to diverse their presence in the country and also get involve in online media. Foreign newspapers are made available in India due to increasing use of internet by giving license to local firm to print. The existing newspaper companies are expanding their location rapidly to capture more market share in the country. Currently newspaper industry in India is growing at faster rate but the future remains uncertain as it depends on growth of other media communication, literacy rate and economic cycles. China has the largest market for newspaper industry in the world, so comparison of China with India in several aspect will show where Indian industry is lagging and leading with them.

Industry Analysis 2013

Chapter-1

INTRODUCTION

Industry Analysis 2013

1.1

INTRODUCTION:

The industry of newspaper has registered highest growth. Even with high growth of internet and entertainment industries. The number increases as the prevailing brings new editions and new entries entering into the market. A newspaper is published including current affairs, informative content, advertisements and editorial parts. Whereas general interest newspapers publish stories on local and national political events, crime, business, entertainment, society, sports. Most traditional papers also feature an editorial page containing editorials written by an editor and columns that express the personal opinions of writers. The newspaper is typically funded by paid subscriptions and advertising. In newspapers including editorial opinions, criticism, entertainment features such as crosswords, sudoku, horoscopes, weather news, forecasting, advice food & reviews of radio, movies. These contents can be divided as publicity that is easily accessible to local as well about the people. Also, periodically they are published at regular interval can be daily, weekly, monthly or yearly. Currently, the information given is current and recent one.

1.1.1 EVOLUTION:Firstly, a metal carved or stone was posted to public in ancient Rome, in China the government provided a news sheet known as Tipao, is circulated to the courts during late Han dynasty in 2nd and 3rd century AD. Between 713 and 734 the Kaiyuan Za Bao produced a court bulletin of Chinese tang dynasty published government news written on silk and read by the government official. In early modern Europe the increased cross border interaction and created a need for transfer of information which was done by hand written newssheet called Awisi. It was used to deliver the political, military, and economic situation of empire. At first, the term newspaper was named in the early 17th century. But, the publications was seen in Germany in the early 16th century and they were printed dated appeared on regular basis and at frequent intervals having variety of news items. The first newspaper was Strasbourg Relations in the 17th century. Evolution in India: - The first major newspaper in India was The Bengal Gazettes started in 1780 under British Raj by James Augustus Hickey. Whereas lots of papers like The Indian Gazette, The Calcutta Gazette, The Madras Courier (1785), The Bombay Herald (1789) etc followed. The Bombay Samachar was founded in 1822 and printed in Guajarati language is the oldest in Asia and still is printed. The Times of India was founded in 1838 as The Bombay Times and Journal of commerce by Bennett, Coleman and Company. The Times of India group publishes The Economics times (from 1961), Navbharat Times in Hindi, and the Maharashtra time in Marathi, In 1950s, 214 daily newspaper was published in the country were 44 were English daily newspaper and the rest were either Hindi or regional languages.
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Industry Analysis 2013 Regional paper including the Malayalam Manorama, Malayalam language published from Kerala with a daily circulation of 673000, the Hindi Dainik Jagran published in Uttar Pradesh with a daily circulation of 580,000.in 2006, the Ananda Bazar Patrika from Kolkata with daily circulation of 4,35,00 in 2006. The Ananda Patrika group is the oldest surviving Hindi newspaper in India. Others are Time of India group, the Indian express, the Hindustan times, the Hindu group important printing houses. Newspaper sales in India has been increased by 11.2% in 2007, 62 of the best selling papers are been published in china, Japan and India. Indian readers consume about 99 millions newspaper copies as of 2007 making it the 2nd largest market in the world for newspapers.

1.2

CATEGORIES:

Newspaper industry has a broad spectrum of readers usually geographically defined as the readers interest in location. They can be daily and weekly business newspaper and sports newspapers.

1.2.1 FREQUENCY:

Daily:-These are the paper issued on every day basis sometime they are not published on the government holidays and the publications on Sunday and Saturday are tend to be larger and include more specialized sections and advertisement and have more cost. The staff works on Monday to Friday and the rest two days content depend on the advance work done by the workforce that is syndicated. Mostly daily newspapers are published in morning. Afternoon and evening papers are for the commuters and office workers.

Weekly newspaper:- They are published once in a week and tend to be larger than daily newspaper were as some are published twice or thrice a week such papers are called as weekly. Example is fortnightly.

1.2.2 GEOGRAPHICAL SCOPE AND DISTRIBUTION:

Local:- Mostly every city and town has a domain newspaper for their area. large metro towns have large distribution of network and can be found outside the normal area, sometime widely and sometimes from fewer sources.
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Industry Analysis 2013 National:Atleast one newspaper is circulates throughout the whole country: a national newspaper such as The Financial Times and The Wall Street Journal of UK national market. There are international newspapers like The International Herald Tribune is a regular newspaper while the rest are having international editions for the national or large metropolitan newspaper. There are English has become the medium of communication for business and technology. Before many papers used to publish in their regional languages but now they started to print in English language as is international language.

1.2.3 TECHNOLOGY USED: Print:-from the ancient time, there is a trend of printing news on paper and distributing to the readers mostly there is a center made for each paper industry and their printing is done then after they are distributed to the various locations

Online:- As advancement of internet the paper industries publish online editions over internet. But some industries find printed based model sustainable then the online papers. were as some companies such as south port reporter in UK and the Seattle Post Intelligencer, have stopped printing and have started to publish paper online.

Custom:- This a new way of publishing oneself were the papers are personalized and printed according to the demand of customer. it allows the reader to publish there own views and happening in their own words by having individual pages and moreover they get an opportunity to publish in multiple publications. Here the printed based model remerged and provided a new directions to readers to share and discuss and read the new happening all round the world in just a fraction of second these customized newspaper are offered by twitter. Times, Rediff news, igoogle, caryon, kibboko, icurrent, my yahoo, LinkedIn etc.

1.2.4 AUTHORITY: US have the chief executive as their manager and publisher as well, were as in small paper industries the owner is the largest share holder and is the publisher. They never write any articles journal or any reports they are responsible over all publication done in the paper and looking after their newspaper industries recruiting workforce, technology used and the strategy used for the business to prosper. A newspaper industry includes four important streams editorial, printing, circulations and advertisements. Person who select the content of the paper to be published are the editors of paper, top management includes editor in chief, executive editor, senior editor. At small newspaper industry
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Industry Analysis 2013 the editor is responsible for all subject areas were as in larger firms the senior editor is overall incharge of publication house the less senior takes care of sports news and local news. These are various news bureaus (desks) taken by various designated editors. Editors check the copy of news stories but they are cross checked by proofreader and fact checker. The reporters are the most important aspect of a newspaper industry they gather and write the reports and bring the photographs of the happening from different location, they are called as feature writers. The journalist are experts in different area known as beat, like sports religion, science and entertainment etc, columnists write the article for journalist and also include personal comments. The printer and the press operators are responsible for printing the newspaper and also outsource the newspaper of different newspaper industries or journals or books etc. as to decrease the cost of machine and not let the machine are in idle state. If the newspaper offers online options then there is a special web designer and master for uploading of the newspaper in an attractive manner. There are staffs for circulation linked with retailer they sell as well find subscriber for the paper and also supervise the distribution online as well as the newspaper sellers. Sales staff are the advertising department of the newspaper industry they sale the space of the paper to different clients can be local or these are also used for advertising campaign. Designs of the ads are designed by the graphic designers.

1.2.5 CIRCULATION AND READERSHIP: The circulation rate is number of the newspaper distributed every day, every week, month or yearly. Which mainly determine the advertisement rate they make for the space. Sometimes copies of newspaper are sold without any cost. Readership number may always differ from the circulated copies as a single copy circulated is mostly read by more than one reader. Audit bureau of circulation keeps the record of the average circulation of newspaper. Whereas print industry has developed a body called OECD nations, it is for chief developing nations like Brazil, India, Indonesia, China, and South Africa whose paid circulation exceeds developed nations circulation. The Times of India daily circulation is the largest with 3.14 million copies daily. Where as that of Dainik Jagran local newspaper is with 55.7 million readers. The economist has the circulation of 110 million copies a day as coated by Tom Standage. Advertisement: 70%-80% of the revenue comes from the advisement industry and remaining is gathered from sales and subscriptions. Those part that does not include advertisement are the editorial content, editorial matter or simply editorial, and there is some space where anyone can express their view on any topic. Now a days the advertorial has emerged which is opposite of editorial were people pay to include there paper, mainly used to advertise new product or techniques and is also a medium to collect revenue.

Industry Analysis 2013

1.3

ENGLISH DAILY NEWSPAPER IN INDIA:

According to the audit bureau of circulation the largest circulated newspaper in the world in English is The Times of India with a total circulation of 3.14 million certified as the world largest English selling daily newspaper and 3rd largest in any language in the world with a readership of 76.43 lakhs it is owned and published by Bennett, Coleman & co. ltd. which is owned by sahu jain family then after Hindustan times with 1.4 million circulation in the year 2010. It was founded in the year 1924, with 37.67 lakhs of readers its owned by KK Birla branch of Birla family and is managed by shobhana bhartia. Other publication includes mint as a English business daily, Hindustan in Hindi daily and Nandan a monthly magazine for childrens. Then comes the Hindu started in 1878 as a weekly newspaper but later in 1889 it became a daily newspaper. with a circulation of 14, 66,304 copies per day and readership of about 4.06 million, it is printed in 14 centers across the country. In the year 1995 it became the first online edition, editor of the paper is Siddhartha varadarajan and is owned by kasturi and sons ltd. according to audit bureau of circulation the telegraph comes on the 4rth position depending on circulation it has 484,971 copies daily and a readership of 12.75 lakhs it is owned by ABP group and in managed by aveek sarkar. Deccan Chronicle comes at the 5th position according to circulation of 13, 33,668 and with a readership of 10.88 lakhs people it is hold by Deccan chronicle holding limited and editor in chief is A T Jayanti.

Industry Analysis 2013

1.3.1 The Times of India:

The Times of India is an English language daily newspaper. As per the Audit Bureau of Circulations (ABC), it has the largest circulation among all other English language newspapers in the world, in all formats. In 2008, the newspaper report came that circulation was over 3.14 million and also recognized by the Audit Bureau of Circulations as the world's largest selling English language daily, ranked it as 3rd largest selling newspaper in any language in the world. As per the Indian Readership Survey (IRS) 2012, the Times of India (TOI) is the most widely read English newspaper in India with a readership of 76.43 lakhs. This boosted the Times of India as the top English daily in India by readership mapping. It is owned and published by Bennett, Coleman & Co. Ltd. by the Sahu Jain family. Bennett, Coleman & Co. Ltd. publishes The Times of India. The group companies, known as The Times Group, also publish some newspapers such as The Economic Times, Mumbai Mirror, Pune Mirror, Bangalore Mirror, Ahmadabad Mirror, the Navbharat Times, The Maharashtra Times (a Marathi-language daily) and Ei Samay (a Bengali daily). The Times of India has markets in major cities such as Mumbai, Delhi, Chennai, Kolkata, Raipur, Ranchi, Guwahati, Coimbatore, Patna, Pune, Kochi, Lucknow, Bengaluru, Hyderabad, Indore, Jaipur, Ahmadabad, , Nagpur, Nashik, Goa, Mangalore, Bhubaneswar, Visakhapatnam, Chandigarh, Trivandrum ,Aurangabad & Kolhapur.

Industry Analysis 2013

1.3.2 Hindustan Times:

Hindustan Times is an English language daily newspaper founded in 1924. The flagship publication of HT Media Ltd. As per the circulation, Hindustan Times is one of the largest newspapers in India. As per the Audit Bureau of Circulations (ABC), circulation of 1.4 million copies was registered in 2010. The Indian Readership Survey (IRS) 2012 told that Hindustan Times has a readership of 37.67 lakhs, as the second most read English newspaper in India after The Times of India. It has a wide market in northern India, with editions from New Delhi, Mumbai, Kolkata, Patna, Ranchi, Bhopal, Lucknow and Chandigarh. HT as a challenger for TOI launched a youth daily in 2004, HT Next. Other publications of Hindustan Times are Mint (English business daily), Hindustan (Hindi Daily), Nandan (monthly children's magazine) and Kadambani (monthly literary magazine). The Delhi based English daily Hindustan Times is sub-part of the KK Birla group and managed by Mrs. Shobhana Bhartia, daughter of the industrialist KK Birla. It is owned by HT Media Ltd. KK Birla group have 69 percent stake in HT Media, currently valued as Rs 834 crore. When Bhartia joined Hindustan Times in the year 1986, she was the first woman chief executive of an Indian national newspaper. Shobhana has also been nominated as a Rajya Sabha MP from Congress Party.

Industry Analysis 2013 1.3.3 The Hindu:

The Hindu is an English language daily newspaper published from Chennai since 1878. According to the Indian Readership Survey (IRS) in 2012 The Hindu was third most widely read English newspaper in India after TOI & HT with 2.2 million people readership. It has largest of circulation in southern India, focused in the states of Tamil Nadu and Kerala. The headquartered is at Chennai. As per the Audit Bureau of Circulations (ABC), with a circulation of 1.46 million units. Employed over 1,600 workers and annual turnover reached almost $200 million in 2010. Their major income comes from subscription and advertisement. In 1995, The Hindu was the first Indian English newspaper who came with an online edition. It is printed at 17 different locations such as Chennai, Tiruchirapalli, Kolkata, Hubli, Mohali, Coimbatore, Bangalore, Hyderabad, Madurai, Noida, Visakhapatnam, Thiruvananthapuram, Kochi, Vijayawada, Mangalore, Allahabad, and Kozhikode.

The Hindu has many firsts in India which includes: 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 1995: First newspaper to go on Internet

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Industry Analysis 2013

1.3.4 The Telegraph:

The Telegraph is an English daily newspaper founded in 7 July 1982. It is been published by the ABP Group and ties with the Times of India for the widest circulation of newspaper in Eastern India. As per the Audit Bureau of Circulations (ABC), it has a circulation of 484,971units. This newspaper is 4th most widely read English newspaper in India after TOI, HT and The Hindu with a readership of 12.75 lakhs. The Telegraph focuses on eastern India for its extensive coverage. The Telegraph also publishes from Guwahati and Jorhat in the north east, Siliguri, Jamshedpur, Ranchi & Bhubaneswar. It is published by the Ananda Publishers associated with ABP Pvt. Ltd; the group also published Anandabazar Patrika (Bengali Newspaper). Also, Sunday edition includes Graphiti, a 32 page colored magazine which includes content on celebrities, food, art etc.

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Industry Analysis 2013

1.3.5 Deccan Chronicle:

Deccan Chronicle is an English language daily newspaper published from Hyderabad. This newspaper name came from the originating place, the Deccan regions of India. Deccan Chronicle also published from Karnataka Kerala & Tamil Nadu."TV Guide", "Sunday Chronicle", "Hyderabad Chronicle", "Chennai Chronicle", "Bengaluru Chronicle" and "Kerala Chronicle" are some of the supplements. Also, they supply other weekly features like "School Chronicle" and "Teen Chronicle". Deccan Chronicle has total readership of over 10.88 lakhs. Asian Age an English daily newspaper is published by Deccan Group only in Mumbai, Delhi, Kolkata, and London; Financial English Daily.

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Industry Analysis 2013

1.4

OBJECTIVES:
1. To study the market share and the nature of competition which exists in Indian newspaper industry 2. To study the market segmentation in the sector 3. To study the policy framework for Indian Newspaper industry 4. To study the business diversification strategy undertaken by major players in the Indian Newspaper sector. 5. To analyze information regarding recent developments in the sector, mainly in terms of patents, mergers and acquisitions. 6. To study the Global aspects of Indian Newspaper industry in terms of exports and imports. 7. To study the various technological advancement in Indian Newspaper industry. 8. To study the various marketing initiatives undertaken by major players in the Indian Newspaper sector. 9. To study the future prospects of the Indian Newspaper industry. 10. To compare various aspects of Indian Newspaper Industry with the US and China Newspaper industry.

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Industry Analysis 2013

1.5

CONCLUSION:

In this chapter, the focus is given the full overview of the Newspaper industry. This chapter covers information about the top leading players in the Newspaper Industry, and the worldwide Newspaper industry. This shows a clear picture of Indian top Newspaper evolution and, their position in the global market.

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Industry Analysis 2013

Chapter-2

LITERATURE REVIEW

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Industry Analysis 2013

2.1

MARKET LINE INDUSTRY PROFILE: GLOBAL NEWSPAPERS

Newspaper market includes all the profits gained by selling the newspaper which involves circulation, subscription except the profits from advertisements. Newspaper volume refers to average amount of newspaper which circulates per issue. The services provided by newspaper advertisement, articled information, editorials or scheduled publications. The global population and demand for such services determines global newspaper demand. The global newspapers industry had total revenues of $83,090.7 million in 2011, representing a compound annual rate of change (CARC) of -1.4% between 2007 and 2011. In comparison, the European industry declined with a CARC of -2.6%, and the Asia-Pacific industry increased with a compound annual growth rate (CAGR) of 0.3%, over the same period, to reach respective values of $38,840.9 million and $26,759.9 million in 2011.Europe accounts for 46.7% of the global newspapers market value. Asia-Pacific accounts for a further 32.2% of the global market.

2.1.1 The article contents some leading newspaper companies like: Axel Springer AG One of the business divisions is Newspapers national comprises the newspaper and advertising supplements published in Germany, which are subdivided into newsstand newspapers and subscription newspapers, as well as regional and national newspapers. Xinhua News Agency Xinhua owns more than twenty newspapers and about a dozen magazines, printed in eight different languages: Chinese, English, Spanish, French, Russian, Portuguese, Arabic and Japanese. It is headquartered in Beijing, China. News Corporation News Corporation's publishing segment is engaged in newspapers and information services, book publishing and integrated marketing services businesses. Yomiuri Group The Yomiuri Shimbun is a media, property development and sports conglomerate, based in Tokyo, Japan. The firm operates primarily in Japan and is the holding company for the nations biggest newspaper, the Yomiuri Shimbun. The Yomiuri Shimbun is one of the most popular quality newspapers with a daily circulation of 13.8 million copies.
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Industry Analysis 2013

2.2

INDIAN NEWSPAPER INDUSTRY: IMPROVED EDITION AHEAD

As the profit of newspaper industry depends on advertisement, it also is affected by economic cycle as well as newsprint prices. In 2001 the revenue was decreased due to slowing economy and reduction in advertisement. Overall industry was not impacted because of good financial position with low dependency on debt. According to CRISIL Advertising revenues comprise between 55% and 80% of total revenues for the industry with the balance coming from circulation revenues. The cover prices of Hindi newspapers are higher than English dailies because they are more dependent on circulation revenues. CRISIL believes It is estimated that newspaper. Circulation in USA has been declining by almost a percentage point a year, on an average. Since the early 1990s while Canada and UK have recorded higher circulation drops. In the Indian context, however, although television has grown significantly in the 1980s and 1990s, newspaper circulation has not really dipped.Due to increase in competition among newspapers, there have been innovations, aggressive pricing and marketing in the industry. The newspaper industry is losing its advertisement revenues to other medium but is still leadership position because of it low cost and strong presence in local area. Strong customer base and steady readership barrier results into entry barrier for new entrants in this industry. Internet is threat to newspaper industry due to large database and flexibility for advertisements. Many newspaper companies therefore have established their own websites.

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Industry Analysis 2013

2.3 A STUDY OF THE IMPACT OF VALUES AND LIFESTYLES (VALS) ON BRAND LOYALTY WITH SPECIAL REFERENCE TO ENGLISH NEWSPAPERS
India newspaper is the witness of rising growth. In the earlier time newspaper owner thought for the growth was only in the geographical area. Nowadays, people are more interested in a newspaper which shows their beliefs & thoughts. Newspaper has always been a provider of news, entertainment and sharing thoughts. People have different view on norms, value & beliefs. Internet has become a source of information other than newspaper. So, it is very much important for the newspaper to deliver something that is value for the customer and their thoughts. Demographic factors helps in forecasting marketing strategy in a better aspect. VALS (Values and Lifestyles) is the way of perception for the peoples basic attitude, needs, wants and beliefs. VALS system links between personality traits and purchase behavior of the customer. Brand loyalty is a major challenge for any management. Success of a brand depends on customer retaining ability. Brand loyalty tends to long term competitive advantage, also helps in minimizing the cost. There are four types of market strategy market leader, market challenger, market follower, market nicher. Market leader dominates the market with strong customer base. Market challenger is strong in their industry, but not dominant and trying to gain market share. Whereas market follower stays in the same position. And, the market nicher targets only few and selected market to gain profit. Preference of the readers is an important point to be considered by newspaper company owners to expand their business to many different areas. Understanding beliefs of the consumers will help them to design their marketing strategies. The VALS program was created by the SRI International in 1978 in an attempt to understand peoples personality through their behaviors amid the changing values and lifestyles in 1970s. (C.Anandan, M. Prasanna Mohanraj & S.Madhu). Strong brand loyalty leads to retention of customers and increase in mart. According to a Price water house Coopers (PwC) survey for the year 2003, (Business World, 2005), it is estimated that the news paper industry in India is around US$1.7 billion in 2003, and is expected to grow to around US$ 2.4 billion in 2008.

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Industry Analysis 2013

2.4 MOVING INTO MULTIPLE BUSINESS MODEL: AN OUTLOOK FOR NEWSPAPER PUBLISHING IN DIGITAL AGE
The newspaper industry is going through a bad days. The news media penetration, internet penetration, the broadband and delivering digital content have given a breakthrough challenge to a newspaper industry. A survey has been carried out by princewaterhousecoopers in the world association of newspaper. This survey had examined the outlook for the newspaper publisher, advertiser and media buyers, as the adaptation to the digital revolution and the deal with global economic slowdown has been achieved by them. This research focuses on the change of customer behavior with respect to their consumption of news content and how do the customer respond to the newspaper publications. The challenge in newspaper industry is the declination over a long term circulation volume while a great movement of advertisers is there to the online channels and into new format. Research shows that despite of such huge potential for growth online, print remains the largest source of revenue generation and will continue to be so for some time. Newspaper has long term future and will coexist with the other media. The consumers place high value this was the analysis provided by journalist. The research shows that the consumer is ready to pay more for newspaper but industry needs to develop some more strategies for monetizing their content. There must be ability for the newspaper to earn their readers trust and loyalty providing the opportunity to both lead and follow consumer as the switch to online media. The response of newspaper industry to the economic downturn by increasing their focus on cost reduction. Multiple platforms and new technologies as a channel for content distribution have also been used by some publishers. Newspaper publisher and the readers both have increased the sustainability who attaches high value to the publishing company using sustainable production methods.

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Industry Analysis 2013

2.5

FUTURE RESEARCH PERSPECTIVE: NEWSPAPER INDUSTRY

It was a project which was started in year 2006 which will lead in understanding the use of media by the people and where they will get the news from now and how the people will be using it. In order to make this research successful many participants were required. The future of media is dependent on the market, technology and the society. By understanding the range of future of newspaper industry the publisher can make the decision to position them. This project will lead to the understanding for the newspaper managers how to adapt themselves in this industry. The news paper industry is not going through a good phase. The newspaper industry market is either mature or in the declining stage in many parts of the world. Soon after the emergence of the news media the competition has been raised gradually. This increased competition has forced the newspaper publisher to redefine the business model. The major challenges faced by the publishers are to identify the predictability of market development, decreasing return on investment and increasing cost of technology. Despite of all this challenges the major part of the revenue still comes from the newspaper industry by the help of advertisements. Most respondents believe that the editorial and the advertising part of the newspaper are most important for their industry. They also believe that content generation, distribution and advertisement is the most crucial areas. Publishers focus on the customer value and giving importance to the innovation. Publishers believe that the mobile broadband, editorial management and customer relationship is most important in their business. In studies it has been found that the newspaper industries main revenue is generated from traditional printing. In order to establish their business at greater extent the publisher has to develop a parallel business model using the new technologies and have to find the ways to develop the customer relationship at most.

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Industry Analysis 2013

Chapter-3

INDUSTRIAL ANALYSIS

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Industry Analysis 2013

3.1 To study the market share and the nature of competition which exists in Indian Newspaper Industry.
The Times of India (TOI) is an Indian English daily newspaper. As per the Audit Bureau of Circulations (ABC), it is the largest circulation among all English language newspapers in the world. In 2008, the newspaper reported that it was over 3.14 million, world's largest selling English language daily, ranking 3rd largest selling newspaper in any language in the world. According to the Indian Readership Survey (IRS) 2012, the Times of India is the most widely read English newspaper in India with a readership of 76.43 lakhs. It is owned and published by Bennett, Coleman & Co. Ltd. and which is owned by the Sahu Jain family. The newspaper main competitor in India of Times of India are Hindustan Times and The Hindu, which holds second and third position by circulation. The Hindu is leading English newspaper with a circulation of 1.45 million and second largest English newspaper after TOI and ahead of The Economic Times. 65% of TOI online readers come from outside India; this truly says TOI as a global brand. As per the readership of Daily English Newspaper in India: 1. 2. 3. 4. 5. The Times of India Hindustan Times The Hindu Telegraph Deccan Chronicle

9.22 9.42 44.03 16.83 1 2 3 4 5

20.48

Fig 1.1: Readership of daily English newspapers in India Ref: http://rni.nic.in/pii.asp

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Industry Analysis 2013 We can see in the above chart that The Times of India is the market leader capturing 44.03% of market share, which is strong through their content and readership. They perceive customers thought and beliefs better than other newspaper. Coming to Hindustan Times is market challenger, which is approx half in numbers from TOI with 30.48%, but a good competitor. Other newspapers are either followers or trying to grasp the market by some other marketing strategy.

As per the circulation of Daily English Newspaper in India per day: 1. 2. 3. 4. 5. The Times of India Hindustan Times The Hindu Deccan Chronicle Telegraph

4.66 19.83 28.42 1 2 3 4 21.8 25.28 5

Fig 1.2: Circulation of daily English newspapers in India Ref: http://rni.nic.in/pii.asp

As per the circulation in daily English newspaper the market leader is The Times of India, which is around 19, 10,440 units per day all across the India. After that Hindustan Times circulation is 17, 00,000 units per day followed by The Hindu, Deccan Chronicle and Telegraph with 14,66,304 and 13,33,668 and 3,14,000.
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Industry Analysis 2013

3.2

To study the market segmentation in the sector.

Demographics plays an important role in levels of demand within different segments ranging from age, status, education, gender, sexual orientation, ethnic origin and many others. Demographics of Newspaper in India:According to the constitution People of India has the right of freedom of information can be within the country or can be a global news .the print media has always shared all the informations with the people. Though there is a growth in the technology advancement of internet, inspires that the newspaper industry has show growth. It has well responded to the new challenges and changes in the globalization field, advancement of technology better coverage and speed delivery of news. The population is still reading the newspaper. the statics shows that the people prefer to read the regional language paper. So, the companies now target to distribute the paper where there is maximum population and easily sizeable people. According to section 19D of press and Registration of book act 1867. Every newspaper industry has to submit annually the statement to The Registrar of Newspaper for India. During 2005-06, 2074 new newspaper were registered with the up come of 4 new publications. In the year 2006, 62485 newspapers were registered. And, the circulation of 15, 67, 19,209 copies in 2004-05 to 18, 07, 38,611 copies in 2005-06. The number of registration was increased from 8512 to 7225 during the period.

Analysis of Daily Newspaper:As per the annual statement 2005-06, the dailies newspaper was 2130.with a daily circulation of 8, 88, 63,048 copies, 12.93% increase then the previous reading. The Hindi daily was 942 with circulation of 7, 66, 98,490 copies while English dailies registered were 3, 41, 06,816 copies. There were 39 tri or bi weeklies with a circulation of 5, 66,198 copies, which is when compared with 40 having circulation 5, 53,873 in 2004-05. 900 daily newspapers provide the news about the working and the firms.

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Industry Analysis 2013

bi tri week 0%

daily newspaper

english 31% hindi 69%

Fig 1.3: Analysis of daily newspapers in India Ref: http://rni.nic.in/pii.asp

Analysis of periodicals:The major Indian newspapers are periodical with a circulation of 6343 periodicals total of copies 9, 13, 09,365 copies. Out of this 3428 are weekly paper, 955 are fortnight, 1471 are monthly paper, 219 are quarterly, 49 are annual and 221 are other periodicities. In 2006-06 circulation increased to 7, 74, 76,070 copies during 2004-05 to 9, 13, 09,363. Weelies are with 5,05,80,648 copies, followed by 2,11,36,710 copies, fortnight 1,23,09,948, quarterlies of 15,52,138 and annual 29,81,256.
quaterly, 219 others, 221 annual , 49

monthly, 1471 weekly, 3428 fortnight, 955

Fig 1.4: Analysis of periodical newspapers in India Ref: http://rni.nic.in/pii.asp

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Industry Analysis 2013 Language wise analysis:The newspapers are registered mostly in English and local language count to be 22 in 8 schedule constitution. The newspapers are registered in 100 other different languages. The number of Hindi newspaper are 4131, then English with 846, Gujarati in 775 Urdu in 463,Benagli in 445, Marathi in 328. The circulation of English paper was 3, 41, 06,816 copies leaded by 7, 66, 98,490 Hindi newspaper. Gujarati press follows the English newspaper by 98, 44,710 Urdu and Malayalam with 92, 17,892 and 82, 06,277 copy. Among the daily newspaper, Hindi newspaper has 942 newspapers then comes the English newspaper with 201. The newspaper published daily with a overall count more than 100 are Urdu with 191, Telugu with 147, Marathi with 130, and Gujarat with 100 copies .according to circulation Hindi dailies leads by 3,76,42,520 copies then English dailies with 1,29,14,581 copies.
Gujarati, 100 Marathi, 130

telegu, 147 Urdu, 191 Hindi, 942

English, 201

Fig 1.5: Language by analysis of newspapers in India Ref: http://rni.nic.in/pii.asp

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Industry Analysis 2013 State wise analysis:In the year 2005-06, Uttar Pradesh has 1913 then Delhi with 1133, Gujarat with 817, Maharashtra with 642 and west Bengal with 505. Uttar Pradesh has a circulation of 3, 32, 91,882 in 2005-06, Delhi with 3, 06, 03,048 copies. Maharashtra at 3rd position with 2,04,72,82 with a total public of 81, 59, 59,124 copies Uttar Pradesh has daily newspapers 384 followed by Maharashtra 206. Daily newspapers are produce in all states except Lakshadweep a union territory. Dailies newspapers has a total circulation of 1, 34, 92,557 copies. Maharashtra with 1, 0537,174 and Delhi with 88, 08,045 copies.
West Bengal, 505

Maharastra , 642 Gujarat , 817

Uttar pardesh , 1913

Delhi, 1133

Fig 1.6: State wise analysis of newspapers in India Ref: http://rni.nic.in/pii.asp

Circulation Patterns:Out of 8512 newspaper submitted there are 350 big, medium 1555, small 6607 paper big are circulated in 6, 76, 98,371 copies. The big newspaper circulated in 6,76,98,371 copies ,the medium with 6,41,55,462 copies, and the small 4,88,84,778 copies .In big newspaper are 214 dailies newspaper and tri/bi weekly newspaper. In medium, 906 newspapers are there where as in small newspaper we have 1049 dailies newspaper. with the circulation of 3,82,50,890 copies for big 3,84,76,981 as for medium and 1,27,01,375 for small.

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Industry Analysis 2013

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Big Medium Small readers number of dailies newspaper circulations number of newspapers

Fig 1.7: Analysis of circulation pattern of newspapers in India Ref: http://rni.nic.in/pii.asp

Circulation levels:The Times of India leads in circulation by 4,090 thousand, then comes Dainik Jagran with 2,662 thousands, then is Malayalam Manorama with 2,048 thousands, the Hindustan Danik with 1,868 thousand. Then Eenadu with 1,717, then The Hindu with 1,500 followed by Lokmat 1,499 thousand, then Deccan Chronicle with 1,458 thousand.

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Industry Analysis 2013

deccan chronicle, 1,034 the telegraph, 1,273

1,500

The Hindu, 2,240

Times of India , 7,616

hindustan times, 3,791

Fig 1.8: Circulation level of newspapers in India Ref: http://rni.nic.in/pii.asp

Ownership:6686 newspaper are owned by a single person from over all of 8512, from which 1122 are joint ventures, 260 associations, 222 by trusts, 150 by firms and partnerships and 41 by central as well as state government. And remaining 31 is owned by cooperative societies. When we see over the stock share of the owners we know that in joint stock companies shares 39.04%, common ownership units are 427 and the units circulates 5,72,55,780 copies with 64.43% circulations daily.

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Industry Analysis 2013

Central, 41 Firms, 150

trusts, 222

Association, 260

Joint venture, 1122

Fig 1.9: Ownership analysis Ref: http://rni.nic.in/pii.asp

Newspaper Content: In India there are 6343 Periodicals which deals with 4238 news and current affairs while 421 with social welfare and also on various aspects like health care entertainment philosophy law and publications etc. Government publications: There are 41 government publications, 37 central and 4 state with the overall 5, 06,209 copies. Registered newspaper: There are 8512 registered newspaper with 24924 Hindi newspapers and Uttar Pradesh topped in highest number of registered newspaper. Miscellaneous newspaper: Further there are 3850 newspaper which are either local or is not registered these are the public views paper where the people have given their views and these are registered as people welfare newspaper. The furnished data 126 according to circulation.

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Industry Analysis 2013

3.3

To study the policy framework for Indian Newspaper industry.

PESTEL Model: India in few years has become global. The trend of newspaper increases the foreign investment, import and export and increased the business. Its an analysis done to measure the influence of the macro environment on the newspaper industry.

Political Factors:The political factors that influence the paper industry can be the government regulations, the copyrights, the government interventions etc, the political bodies are one who is responsible for the recognition and copyright permissions. Without the copyright permission from the government it might be crucial for the industry to make profit and survive in the market. Slogan of the newspaper industry freedom of press indicates the relationship between the political faces and the industry.

Economic Factor:Newspaper is a medium that are useful for any section of the society, it has the ability to create interest within any age group, even though major section of society are newspaper readers but still there are a gap who are not interested in investing a penny on it. Advertiser prefer to invest on those newspaper which reaches the maximum population whereas the readers prefer to use that paper which has a lot of advertisements and which has larger number of pages, thus the paper which fulfills both the section requirements are the winner and becomes standalone market leader. Considering both matter of interest the price of paper is decided. Thus both the section divides and contributes to the paper industry. And share the profit and manage economy

Social Factor:The newspapers are sometimes seen influencing the religious beliefs and principles and traditions of the society. They try to spread the awareness of the religious belief, changing the understanding are impossible.

Technological Factor:The advancement of the technology led to increase the completion in the market. The newspaper industries have started to customize the paper as well as provide online subscriptions as well moreover the spaces are also sold online. So those newspaper industries who could not maintain the changes they slowly diminish.
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Industry Analysis 2013 Environmental analysis:In the year 2008 there was a slowdown in the advertising revenue, thus a decrease in the advertising revenue occurred, thus in this fast growing competitive world the competitors have to develop new strategies to competes and withstand in the world.

Legal Factor:As the entrance of foreign newspaper and magazines in India, the small and medium scale industries gets an opportunity to increase the revenue on ads and collect the expense as increased by the entrance of foreign magazine and newspaper. About 70% -80% of the total production cost is collected from the advertiser. The whole cost thus depend on the advertisements made in the paper.

PORTERS FIVE FORCE MODEL: Porters model is used to find the completion that is in the particular sector of the industry. The various aspects are: Threats to new entrance to the market Bargaining the power of suppliers Bargaining power of customers Threats of Substitute product Degree of competitive Rivalry

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Industry Analysis 2013

BARGAINING POWER OF CUSTOMER

THREATS OF SUBSITUTE PRODUCT

THREATS TO NEW ENTRANCE COMPETITIVE RIVALRY

BARGAINING POWER OF SUPPLIERS

Fig 1.10: Porters five force model Ref: http://www.nieman.harvard.edu/reportsitem.aspx?id=100464

When a new newspaper industry enter into the market first of all they have to compete with the existing players who have capture the market from a long time this is not a easy task as once a customer is addicted to read a newspaper they become loyal to it and denies to change to other one to create customer is an important task for the new entrance newspaper industries. Even if the there are lot of player so some section of society such as lower and the lower middle class people prefer to buy the low price newspaper because its a day play for them, they prefer cheap and informative newspaper. Thus, a paper industry has to maintain the price keeping low as well the content should be also competing with the others players. There are many players so if in any case the readers are not satisfied either by the price or the content or the ads given then soon the other players get turn to enter and the newspaper loses its customer. The supplier are there who supplies the newspaper to the customer, customer prefer to get the newspaper at their door steps if not available they switch to that which are easily available to them. So, we can say that the competing and establishing and maintain the customer values and the loyalty is very important for the business keeping in mind the various aspect and providing value to the customers.

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Industry Analysis 2013

3.4 To study the business diversification strategy undertaken by major players in the Indian Newspaper sector.
BUSINESS DIVERSIFICATION:Diversification is defined as a process of entering into a new and unrelated business which is entirely different from the companys present business. Standalone firm is a company which is specialized into a particular business in a particular sector and they dont want to diversify their business. Conglomerate firm is a company which has one or more businesses in different sectors under one roof.

TIMES OF INDIA:The largest media group in India is the Bennett, Coleman & co. and has many diverse channels. In 1938, the Bombay times and journal of commerce, became the Times of India. Even if there is decline in the sales of the paper industry times of India is a single paper which has registered itself as the growing newspaper industry by 17% from the past 5 years and has became the world largest selling paper industry. The other companies known in the times group are The Economics Times, Mumbai Mirror, Pune Mirror, Bangalore Mirror, Ahmadabad Mirror, the Navbharat Times in Hindi, The Maharashtra Times in Marathi and Ei Samay in Bengali daily. In 2006, they started publishing Kannada newspaper known as Vijay Karnataka, and Vijay Times in English. Sandhya Times an evening newspaper in Hindi are published in Delhi. Hindustan Times and The Hindu are the paper which is published by the Times group and are among the top most paper in India. Zig wheel is the Indias largest selling automobile magazine published by the group. The times group also concentrate in the diversification of business. They have a Times innovation media ltd & Entertainment network India Limited which take care of Radio Mirchi a FM radio station, 360 degree event, Times outdoors and Mirchi Movies limited Filmed entertainment producers are Being Cyrus, Vellithirai, Manjadikuru. Time group also provide financial remittance services to bring the money back to India. The Remit2India is a standalone product that provides the remittance to the banks of India. They have the Times Internet Limited one of the largest internet companies in India. They include Indiatimes Shopping largest e-commerce portal in India, India Times, Timescity.com, Economictimes.com, Navbharattimes.com, Maharashtra Times, Gaana.com, BoxTV.com and TimesDeal. Times global broadcasting limited contribute the times television services like Times Now, Smart Hire, ET Now, Zoom and Movies Now.

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Industry Analysis 2013 Times business solution deals with the TBSL corporate website, Times jobs- for job search, Techgig for technical people, Simply Marry matrimonial site, Magic Bricks a restate Site, Yolist Free classified site, Ads2book-online booking classified site, Peer Power a senior Level Professional networking. Segments in World Wide Media are Film fare , Film fare awards, Femina, Femina Miss India A Beauty Pageant, Top Gear Magazine India, BBC Good Homes, Femina Hindi, Grazia, What to wear. Many of the business are in the area of Radio stations, Times syndication services and Brand capital. Thus we can conclude that the business of the Times Group is a conglomerate business.

The Telegraph:The newspaper is a product of ABP group; it comes at 4rth position according to circulations. Published in Kolkata since 7th July 1982.it is also published at Guwahati and Jorhat in northeast, Siliguri for West Bengal, Jamshedpur and Ranchi in Jharkhand, Bhubaneswar in Odisha. They publish Anandamela, Unish-Kuri, Sananda, Anandalok, Desh Magazine, business world, the Telegraph in Schools and Career. The paper consist of Graphiti which is a collection of atleast 32 pages full of celebrities, art, knowledge an outside the world. A special section for children i.e. Telekids to attract the child section of the society. Other diversifications are: Boiyer Desh and career is a periodical paper and business world a business magazine with largest selling. Fortune is a global magazine published periodically. They also have television channels like ABP news in Hindi formerly Star news, ABP ananda in Bengali i.e. star ananda, ABP majha in Marathi language was called star majha, Sananda TV in Bengali language for general entertainment and was closed on 7th Nov, 2012. The ABP house has publishing houses as well like Ananda publishers and the penguin India as there publishing body. They also have a Mobile phone called as Mjoy or 56569 which is a niche industry. Mjoy is accessible to all the major cellular service provider and information like entertainment and services through SMS and GPRS. Thus we can say the business of Telegraph is a conglomerate.

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Industry Analysis 2013 Deccan Chronicle: - One of the newspapers published in Hyderabad is Deccan Holding Ltd. It s a daily newspaper, other centers are Tamil Nadu, Karnataka and Kerala this newspaper is mainly for the people of Deccan region containing the happening of the region. They also provide supplement specially like TV Guide, Sunday Chronicle, Kerala Chronicle, Hyderabad Chronicle, Chennai Chronicle, Bengaluru Chronicle, moreover there are school chronicle and teen chronicle. The total readership is 10.88 lakhs. The Deccan Charges is the team owned by Deccan chronicle that represent the city of Hyderabad. The franchise has expired as there are lacks of capital and went to the Sun TV Group. This firm has only one sector in which it plays so we can say that its a standalone firm.

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Industry Analysis 2013

3.5 To analyze information regarding recent developments in the sector, mainly in terms of patents, mergers and acquisitions.
In 2006, Vijayanand printers Limited (VPL) was overtaken by times group which used to publish two Kannada newspapers, Vijay Karnataka and Usha Kiran as well as Vijay Times, English daily. In Karnataka, Vijay Karnataka was market leader among the Kannada newspaper with almost circulation of 5.5 lakhs. While Vijay Times was in the top position for English language segment outside Bangalore and in all other districts of Karnataka. This decision was taken by times in order to increase their local presence and to make themselves identifiable in the market. After acquiring the VPL, times group made some changes to strengthen its leadership position. In May 2010, times VPL group launched Vijaya Next which was first Kannada newsmagazine. The magazine focused on knowledgeable Kannada readers with mix of culture, fashion, lifestyle, entertainment and sports content on it. In 1859, the Bombay standard and chronicle of western India merged into Bombay times and Journal of commerce in order to form Bombay times and Standard. Dainik Bhaskar and Zee TV formed a joint venture Diligent Media Corporation, to launch a national English daily, daily news and analysis (DNA) which was a hit in mid 2005. Deccan Chronicle has acquired 67 % of holdings in Asian age. Dainik Bhaskar is one of the largest newspaper which is circulated daily in Gujarat according to ABC( Audit Bureau of Circulation) .It is circulated in Ahmadabad, Baroda, Surat, Rajkot, Jamnagar, Bhuj, Mehsana, and Bhavnagar. The groups printing arm is DB Corporation. Dainik Bhaskar has 36 centres with 40 editions and 4 million copies printing daily. Zees TV have 30 channels with 250 million users over 120 countries. Due to growth of DNA in country, Diligent Media Corporation is looking for launch in major metros with main focus on Gujarat. Essel Group acquired 50% stake in DB Group in May 2012. Diligent Media Corporation (DB Group) was launched on 2002 as DNA which was published in English language in Mumbai, Pune, Jaipur, Bangalore and Indore. This joint venture will increase the presence of Essel group in print media, as it is not popular. In July 2011, DB Corporation bought 60 % stake in Divya Prabhat Publication which runs Prabhat Kiran, an afternoon newspaper in Madhya Pradesh. DB corp. which is a part of Dainik Bhaskar group publishes 7 newspapers with 64 editions. Mauritius-based fund, Cliffrose Investment, is set to acquire 7.14 per cent stake in Writers & Publishers Ltd (Bhaskar Group) for Rs 150 crore (USD 33.3 mn). The investment proposal has been approved by the federal government's Foreign Investment Promotion Board (FIPB). According to present policy, FDI upto 26% in news and current affair publication is allowable.

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Industry Analysis 2013

S/N

COMPANY

BUYER

SELLER

4 5

Dainik Bhaskar Group's Essel DB Corp 50% stake in Diligent Group Media Corp Suvi Info Manage Dainik Nai Dunia April 2012 ment (Indore) Private Jagran Ltd- Naidunia Media Limited is its subsidiary BBC WorldwideBennett, BBC August 2011 Worldwide Media Coleman & Co. Ltd (BCCL) Divya D B Corp Divya Prabhat July 2011 Prabhat Publication Publication Jagran Prakashan Blackstone Jagran April 2011 Limited(JPL) Group Prakashan Limited (JPL)

MONTH & PERCENTINVESTED YEAR OF AGE OF AMOUNT M&A STAKE IN INR (CRORES) BOUGHT (IN %) May 2012 50 NA

100

300 (Estimated)

50

46.7

60 12

1.2 225

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Industry Analysis 2013

3.6 To study the Global aspects of Indian Newspaper industry in terms of exports and imports.
INTERNATIONAL EXPOSURE:International markets of newspaper have many questions regarding which country they are exporting and importing from. The supply and demand of newspaper depends on how important the country is in this industry. With the globalization of newspaper industry, companies cannot be limited to local news and cannot give data which was taken several years before. In 1955, the central cabinet prohibited foreign companies from investing in Indian print companies. Finally in 2005, cabinet passed a resolution by allowing 26% FDI in print. India Export of Printed Books, Newspapers, Pictures and Other Products of the Printing Industry; Manuscripts, Typescripts and Plans during April 2010 was 112,276.47 lakhs which increased to 246.64 US $ in March 2011. Similarly India Export of Printed Books, Newspapers, Pictures And Other Products Of The Printing Industry; Manuscripts, Typescripts And Plans during April 2011 was 161,231.40 lakhs which again increased to 337.22 US$ in march 2012.The year over year growth (YOY) of this sector is around 43.6% .Basically YOY is a way to evaluate two or more measured events in order to compare the results of one time period with that of another time period Getting Foreign based newspaper in India has become easy because of evolution of internet based facilities .Some foreign based companies like Canadas Newspaperdirect.com and US Satellitenewspaper.com gives license to other firms to print newspaper . Some Indian newspapers are published abroad like:1. India Tribune: - It is a Weekly newspaper for Asian Americans, covering the Indian community locally and nationally, & news from India. News India Times: - It is a print and online newspaper for Asian Americans. India West: - It gives news and information of India to entire Indian community in US. Asian Age: - India's global newspaper published in Delhi, Kolkata, Mumbai, and London, UK.

2. 3. 4.

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Industry Analysis 2013

3.7 To study the various technological advancement in Indian Newspaper industry.


The newspaper industry has received much attention after the invention of internet. There is a great competition among the growing online media and the newspaper industry. Newspaper industry has learned to coexist with the new technology. The emergence of radio in 1920s and TV in 1950s had shaken the newspaper industry. The adverse growth in the internet has threatened the newspaper industry. Now a days the news are available online which attracted the readers on more effective way. The advertisement also coming in such sites has also emerging a lot. In order to compete this penetration of internet Medias the newspaper industry has to bring lots of classified-ad to their systems. The online content allows newspaper to retain their readers and helps in generating more revenues by selling of ads online. The newspaper industry is facing new challenges due to emergence of new technologies in media which resulted in the large shift of newspaper readers to the online media. This trend has suppressed the growth of newspaper industry not only in terms of revenue generated from this but also affected the total circulation. The recession and economic instability has also effected directly to the industry. The newspaper publishers are now focusing on reducing the cost to offset the loss of classified advertising share. The introduction of new titles in the present market scenario and the restriction of foreign ownership have established the industry. The newspaper industry is changing. One great way to change is focus more on local news and leave the international and national news to the 24/7 news channels and websites. There is still room for a print product. The print edition can send readers to the paper's website for more details or to watch video highlights from the news event. Although many tablets have been sold, there is no large numbers of people packing one around. The papers can easily be picked up, read and laid aside. With each new form of communications technology people have been quick to forecast the demise of the existing media. While the existing media has changed in response to the new media, they have survived and in many ways thrived. The same will hold true for newspapers, radio and TV as tablets become more common. Overlooked is the area that prints media still shines in and that is long form investigative pieces. That is what we used to refer to as "journalism" and as an avid reader of both print and electronic media I still do not see this kind of thoughtful and thorough work done in the electronic media as a standard. Not to say this kind of media mess could not have happened in the print media but the recent Apple/Foxconn imbroglio is a good example of where electronic media failed to investigate the veracity of NPR's story. The typical print media standards for checking and getting at least two sources to concur before publication of such a major investigation just don't happen in the electronic media as there is too much of a rush to tweet or feed the online reader without having the staff or the time to do an accurate and complete job.

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Industry Analysis 2013

3.8 To study the various marketing initiatives undertaken by major players in the Indian Newspaper sector.
The newspaper has become the daily product of the consumer like any other service products. The newspaper industry is facing tremendous challenges within and from outside like internet media. This has impacted the circulation and advertisement revenues. The industry is now responding in a proactive way to these challenges. Now, the industry is focusing on marketing and innovations in marketing strategies. Also, the industry is basically focusing on the product, price, promotion and distribution related issues. Various surveys have been conducted on the innovation in marketing strategy of trimming and slimming the size of newspaper industry. These innovation changes not only affected the readers but also increases the circulation value of the newspaper industry. Such type of understanding of the readers is very much essential for the success of marketing strategy. The Times of India is second largest English newspaper in the world. Around 8 million readers who read TOI everyday in India. This shows a growth of around 30% with the previous year. In 1990s, Hindustan Times was facing a big competition in Delhi from The Times of India, as per the circulation, readership and revenues. HT earned more than half of Delhi's ad revenue, but TOI was getting close to 40% by 1999-2000. Pricing Strategies: Amount paid by readers of newspaper was insignificant in Indian conditions until TOI lowered the prices. This brought a new era in the marketing strategies of Indian Newspapers. Times of India lowered price from Rs 1.50 to Rs 1 in important locations of India like New Delhi and Bangalore. This strategy harmed the rivals surprisingly and forced them to follow them. Circulation of TOI not only increased but also surpassed that of the main rivals Hindustan Times in New Delhi.

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Industry Analysis 2013

3.9

To study the future prospects of the Indian Newspaper industry.

Newspaper Industry is one of the everlasting industries in the world. But, however the Newspaper industry is facing critical problems with the improvement of Technology in this digital era like Internet. This impact of digital media is much higher than the print media. Consumers are more likely to switch with the digital media than the traditional print media. This is because of the improvement of technology. Moreover, in this digital media, they can able to search for their desired news content all over the world. They can easily access to the various sites which contains the desired news content. The main reason for the consumers sticking to the digital media is that they can able to get the news content very fastly with one click away. The challenge for the Newspaper industry is to retain their customers back towards the Newspaper or Print media from the digital media. In order to overcome this challenge, initially they have to understand the behavior of the customers and choices of the customers. Another main problem for the Newspaper industry is that the advertisers who are responsible for major part of revenue are also moving towards the digital media. This mainly effects the growth of the newspaper industry. As a result there will be a decline in the circulation also. Finally, it may leads to the extinction of the Newspaper industry. The advertisers are more concerned about their advertisements and perspectives of people about their advertisements. So, they are choosing digital media in order to use the technology in a well manner. Eye tracking is one of the sophisticated technologies which dragged the Attention of the advertisers towards the Digital media. According to this Eye tracking technology, it is a kind of software which can track the vision of the customers while they are looking to particular advertisements. The advertisers are much focused on this new technology in order to know the preferences or the choices that the customers looking. The Newspaper industry has to change their strategies in order to retain their customers back to the print media. They can also use the technology to improve growth by publishing Epapers through electronic devices. By this, they can able to meet their customers effectively. The newspaper publishers must continue to develop innovative advertising packages to attract the advertisers by which they can get more revenue only from these advertisements.

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Industry Analysis 2013

3.10 To compare various aspects of Indian Newspaper Industry with the US and China Newspaper industry.
China represents the biggest newspaper industry in the world. They have high growth of circulation when compared to many developed countries. China has a circulation of 93.5 million copies daily. Cankaoxiaoxi is leading daily newspaper which has a circulation of 3million copies daily. Xinhua news agency publishes this newspaper which is the official news agency of Chinese government. The articles will be selected from the world major news agencies and it translates those articles which are in English language to Chinese. Coming to US, the total circulation of newspapers is 48.3 million copies daily. The total numbers of registered daily newspapers in US are 1,476. The Wall street journal is leading daily newspaper which has a circulation of 2.3million copies daily. The wall street journal with the use of technology digitalized its news contents through internet and mobile devices. By this, they can able to drag the attention of the customers towards the wall street journal. This results in the growth of their revenues as well as circulation. While comparing the two countries of US and China to India, India stands as the second largest producer of newspaper in the world. India is also stands second in terms of total newspaper circulation with 78.8 million copies daily. The total numbers of registered newspapers in India are 73,146.In India, The leading English newspaper is Times of India. It has a circulation of 2.4 million copies daily. The main competitors for the US leading newspaper Wall street journal are the USA Today and New York Times. There is a huge rate of competition among these newspapers. Coming to China, The main competitors for the China leading newspaper Cankao Xiaoxi are Sichuan Ribao, Gongren Ribao and Renmin Ribao. All these newspapers are in Chinese language only. The China Daily is the only English newspaper existed in china. This newspaper acts as a government mouthpiece to the rest of the world. When comparing these two countries of US and China to India, In India, the main competitors for the leading English newspaper Times of India are The Hindu, Indian Express, and Deccan Chronicle. Economic Times is the leading business newspaper in India which comprises of business news, articles, reviews and business analysis. There are many other regional newspapers in India when compared to US and China. The regional newspapers dominate the market with huge market share than English newspapers. Among these regional newspapers, Hindi newspapers dominate the market with 40% market stake. The English newspapers are able to make only 15% of the total market share. The major part of revenue flows through advertisements to the newspaper industry. The US newspaper industry obtains 33.10% of revenue through advertisements. Whereas the China
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Industry Analysis 2013 newspaper industry attains 32.50% of revenue through advertisements. When comparing these two countries of US and China with India, India is leading ahead in this aspect. The Indian newspaper industry obtains 55% to 60% of revenue through advertisements. Coming to the technological aspects, US newspaper industry changed their phase from traditional print to digital model. They implemented the Tabloid edition of newspapers in order to attract the readers. By using the technology, they digitalized the news content through internet and mobile devices. But, this idea did not work in many parts of US. Moreover, there is decline in the print media by this digitalization. When comparing US newspaper industry with India in the aspect of technology, there is no significant improvement. However there is some growth by implementing technology as developing newspaper websites, but it does not go much extent. The readers are more habituated with the traditional print media. This is one of the main reasons for no declination of print media in India. Moreover, the Indian newspaper industry is still booming to greater extent. China is very poor in these technological aspects. There is no any sort of digitalization in their news content. The quality of news is much higher in US newspaper industry. We can find many newspapers in other countries reports in favor of certain political parties, but it is not the case with the US newspapers. They are very independent and work in favor of developing the society. When compared to India, it is slightly lower in this aspect when compared to US. In China, they are very poor in terms of quality news content. Many newspapers are officially published through government agencies. The Freedom of Press is one of the important aspect in which US stands high.US has amendment of law for this freedom of press. By this they can able to maintain the transparency in the news contents. On comparing it with India, as India is a democratic country, there is a law of amendment for this freedom of press. All the newspapers in India can able to express their views on any issues of political, economical, legal, ethical etc. As China is not a democratic country like India, they dont have freedom of press. They cannot able to print their views on any political or legal issues.

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Industry Analysis 2013

Chapter-4

CONCLUSION

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Industry Analysis 2013

4.1

CONCLUSION:

The newspaper industry is a small industry. It does not contribute much in the GDP but the impact of the newspaper in the readers mind is immense. Newspaper consist information related to sports, advertisement, states, national and international affairs etc. This is the only tax free industry; investor prefers to invest in newspaper industry due to high return on investment. Nowadays people use internet to gather information and news. These substitutes like TV, internet, radio etc. Are focusing on providing information in a more precise and simple way. Due to this reason the readers are losing interest from newspaper. The future of newspaper industry is quite competitive. The technological advancement in the news media has given a breakthrough competition to the newspaper industry. Now people prefer to read news online then through newspaper. Despite of all this challenges the newspaper industry has attained stability in the market. The major part of revenue for these industries comes from the advertisements it makes. Since the internet and media has not penetrated to most of the part in the country so still there newspaper is the major part of customers life in order to gather information regarding local, national and international affairs.

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Industry Analysis 2013

REFERENCES:

1. http://www.bbc.co.uk/news/business-14362723 2. CRISIL- Indian Newspaper Industry: Improved Edition Ahead 3. http://www.epw.in/special-articles/growth-and-structural-transformation-newspaperindustry-india.html 4. Grimes W.B.- Newspapers, Mergers & Acquisition 5. Hooke Paolo- Why newspaper markets are growing in China and India, while they decline in the US and UK 6. http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/Hindustan%20Ti mes%20vs%20The%20Times%20of%20India.htm 7. http://www.indianjournals.com/ijor.aspx?target=ijor:mcomm&volume=4&issue=1&artic le=004 8. MarketLine- Global Newspaper (February-2013) 9. Mohanraj M.Prasanna, Madhu.S, Anandan.C- Study of the Impact of Values and Lifestyles (VALS) on Brand Loyalty with Special Reference to English Newspapers (2006) 10. Murdoch Rupert- Indian Newspaper Industry (Chapter-3) 11. Niku, Komulainen, Ahveninen- Competitiveness of the Indian Paper Industry (2002) 12. http://www.slideshare.net/guestacd5bd/industry-analysis-of-print-media 13. http://theviewspaper.net/is-indian-newspaper-industry-flourishing-or-floundering/ 14. http://rni.nic.in/pii.asp

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