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INNOVATIONS IN MARKETING STRATEGIES OF NEWS PAPER INDUSTRY IN - A CASE STUDY OF TIMES OF INDIA GROUP

Dr M. K. Sridhar t A. R. Sainath t

Newspapers have become products like any other consumer, industrial or service products. They have unique features which other products do not have. The industry in witnessing intense competition from within and from outside like electronic and internet media. This has tremendous bearing on circulation and advertisement revenues. The industry has responded proactively to these challenges. There is more and more focus on marketing and innovations in marketing strategies. Reviews of some of these strategies are focused in the paper. The authors have presented a case study of TIMES OF INDIA GROUP for innovations in marketing strategies, which are product, price, promotion and distribution related. A survey has been conducted by the authors on a recent innovation in marketing strategy of TRIMMING and SLIMMING the size of the newspaper. The data collected from 357 readers of are analysed. The readers in are not only positive to these changes but also have observed them keenly. Such understanding of sensitivity of readers is crucial for the success of marketing strategies.

Newspapers play a critical role in informing the positive developments, achievements and general public about news and events. Their experiments. Journalism has been the core of views on these would mould the opinions and newspaper in India. Of late, they are emerging attitudes of the people. The print media, in more as product rather than instruments of particular the newspapers have not only exposed journalism. They have emerged like any other the evils of the society but also have highlighted consumer, industrial or service products.

NEWSPAPERS AS PRODUCTS t Dr M. K. Sridhar is a Reader at Canara Bank School Of Management P.G. Department Of Newspaper as a product enjoys unique features, Management, Bangalore University, Bangalore. which no other Droduct has. It is Durchased and

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Downloaded from mls.sagepub.com at University of Birmingham on June 2, 2015 Innovations in Marketing Strategies of News Paper Industry in India consumers of the product. Only literate sections various trends over the years. It has become of the society can consume this product. As it capital intensive requiring crores of rupees of constitutes the habit of the reader’s it exercises investment on materials and machines. The immense influence on them. It even moulds advertisement revenue has increased to more their attitudes, thinking and actions. Because of than 60% of the total revenue. Feature articles, huge advertisement revenue, it is low priced fortnightly features, continuation stories have even though the actual cost is number of times become a common feature. Layout is playing a more. It enjoys high degree of brand loyalty and very important role in appearance and frequency and the extent of shift of readers from presentation. Modular layout is now being one newspaper to another is very limited. They adopted which is based on building block need to be highly dynamic, as they have to cater concept. Technological upgradation has become to the changing needs and expectations of their the order of the day. Satellite transmission is readers. used for sending texts and photographs. Satellite editions are becoming popular. The NEWSPAPER INDUSTRY IN INDIA industry is becoming more and more reader’s Indian press has completed more than two oriented which is in tune with the modern centuries of fruitful existence. It was James marketing concept. Augustus Hicky who started the first newspaper These trends have brought about paradigm shift ‘ Gazette’ in 1780. Later on, John Burton in the philosophy and practice of the and James Mackenzie started Guardian in 1818. contemporary newspaper industry in India. Girish Chandra Ghosh established ‘The Bengalee’ in 1868. Some of the leading newspapers during early 19th century were the CHANGES IN ENVIRONMENT ‘Bengal Harkaru’, ‘Morning post’, ‘Telegraph’, The macro and micro environment of the ‘Calcutta Courier’, ‘Oriental Star’, ‘India Gazatte’ newspaper industry in India has undergone and ‘Asiantic Mirror’. significant changes in the last decade. The The newspapers have played an effective and mass media is witnessing tremendous constructive role in Indian struggle for transformation towards electronic and Internet independence. , media. The number of viewers and surfers is Balagangadhar Tilak, Gopal Krishna Gokhale, increasing day by day. The reading habits of Bipin Chandrapal, Dadabai Navroji, started people are‘also undergoing revolutionary newspapers in order to spread and disseminate changes. They have become more of viewers the message of freedom struggle. Many and seers rather than readers. The average revolutionaries extensively used this media for time devoted for reading has significantly come creating awareness among people. Even after down. independence, the role of newspapers continued. The competition within the industry and outside is becoming more and more intense. The total TRENDS IN NEWSPAPER INDUSTRY time available for a person to read, write, etc., has not increased but the mediums have Newspaper industry in India has witnessed increased. This is resulting in more media

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Downloaded from mls.sagepub.com at University of Birmingham on June 2, 2015 Innovations in Marketing Strategies of News Paper lndustly in India competition for the share in the mind and heart Product mix : There is creative mix of of the readers. The number of newspapers in hard and soft news in addition to providing English and other vernacular languages has global perspective with a local flavour. increased over the years. Their circulation, Aspects of packaging like colour, layout, readership and editions have also increased. etc. have become more relevant. Hence, the competition within the industry has Supplements have increased role to play become very intense for increasing the slice of in the designing of the product features. the cake. Reader interest innovations are also playing important role. On the other hand, the competition from electronic and other media has also increased. Price mix: Affordability has become a Such competition from within and outside is not motivating factor for purchasing the only in terms of circulation but also in case of newspapers. The reduction in price and advertisement revenue. The advertisers of the differential pricing, have become very present day have alternative medias for common in the industry. The price wars promoting their goods and services. These have become order of the day. changes have created serious constraints on the Promotion mix: High visibility has survival and growth of newspaper industry in become the order of the game. Need for India because of the pressure on their circulation Brand awareness and recall have and profitability. This scenario has thrown up compelled the newspapers to resort to many opportunities and threats to the industry. massive promotion through different medias. Innovative promotions have RESPONSE OF THE INDUSTRY increased the curiosity of the readers. The newspaper industry in India has responded Distribution mix: Effective distribution at proactively to these opportunities and threats. the right time' and at the right place, has The newspapers, individually and collectively, become important. The selection, are designing short, medium and long term appointment and terms and conditions of plans and strategies for their survival and the agents are very crucial. The role of growth. These are in terms of product, price, hawkers is increasing . promotion and distribution. Segmentation, targeting and FOCUS ON MARKETING positioning : The basis for segmentation of markets of newspapers has undergone The response of the newspaper industry in India sea change. New segments like youth, has been one of focusing more and more on women, sports lovers, business minded marketing, which was not only neglected but ones have been identified and targeted by also ignored all these years. Such a focus on many newspapers. Further, the marketing is resulting in the designing of a positioning of newspapers is given different kind of marketing programme. importance by projecting the distinct features.

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INNOVATIONS IN MARKETING STRATEGIES since some of the main commodity markets were in that region. Keeping in With the intensification of competition within and mind the Mumbaits passion for doing outside the industry, the newspapers have crosswords, it introduced three started designing and implementing various crosswords on sports and films. marketing strategies with regard to product, price, distribution, segments and positioning. As 0 , Malayala , Dinatanthi marketing itself was of recent origin with and Navabharath splashed their pages newspaper industry in India, most of the with colour as early as 1991. In fact marketing strategies were either pioneers or English dailies like Times of India, Deccan innovations. Herald and Indian Express introduced this strategy much later. Times, The 0 ‘Rajastan Patrika’ had a virtual monopoly Telegraph, , and Business in which was broken by Madhya Standard also introduced colour printing in Pradesh based ‘’ with the order to improve the appearance and also help of innovative marketing strategies. to attract the readers. innovative direct mailers, introduction of colour pages, advertisements on Zee TV 0 Marathiya Murusu in Tamil and and sponsorship of awards and Malla in and Kala Kaumudi in programmes helped ‘Dainik Bhaskar’ in Malyalam were started in this regard. exclusively to cater to the readers of these languages as it took few days for the 0 ’Dainik Bhaskar’ also overtook ‘Nayi established papers to reach Mumbai. This Duniya’ by starting more editions, colour innovative strategy of some of these printing on glazed paper, prominent newspapers gave them a good beginning advertising in the main line english dailies for a resonable circulation which would and magazines. In , it have been difficult in the normal course. adopted the strategy of selling the state first and then selling the newspaper. Even 0 Some newspapers increased their during the days of tension and curfew, a circulation by reporting extensively on team of boys cycled down to remote areas certain natural calamities. Karnataka and dropped ‘Dainik Bhaskar’. Malla and Kala Kaumudi gave wide Suppliments like Madhurima, Navrang, coverage to earthquake and Gulf Rasrang and Swad were published for war respectively . This brings out an readers of different age groups. innovation that more people would start reading a newspaper if they cover 0 ‘Navabharath’ started its edition in extensively an event in which they are Navimumbai rather than in Mumbai with interested. the objective of providing a complete newspaper, which was not available in that 0 In order to cater to the increasing need for part. In its business section, a particular business news, few newspapers ventured focus was given to commodity prices into starting either financial dailies or

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supplements or few pages of business objective of publishing newspapers, journals, news. Noteworthy among them are magazines and books. Today, Times of India Karobar started by , Group is India’s largest media house. It is a Vanigamani by , Arthamanthan multi edition, multi product, multi media by papers and Vyapar by organization and has to its credit several leading Janmabhoomi. Their success depended publications. Among them are of more on focussing upon small traders, India, , Navabharath industry, farmers and investors. Their Times, Maharastra Times, and . apprcpriate positioning also contributed in this regard. is the flagship brand of the group. It is India’s premier English daily and 0 The emergence of as worlds largest circulated English broadsheeet No. 1 Kannada daily is a case study for daily. It is published from 10 cities across India, aggressive marketing of a newspaper with has a circulation of over 21’44,842 copies and extensive distribution network and is read by over 4.42 million people every day . appropriate pricing strategy. In a matter of The Economic Times is India’s largest and two years, this newspaper overtook among the world’s top three business dailies. It which was an established is published simultaniously from seven cities leader. across India and is read by over one million people every day. The above marketing strategies are innovations in real sense because they were designed and Times of India group is a case study for implemented either for the first time or with a innovations in marketing strategies in all new orientation and dimension. All these and respects. This is evident from the review of many others have brought marketing to the various strategies innovated from time to time. centrestage of newspaper industry in India. a. Product Related Strategies: The group This discussion on innovations in marketing introduced and successfully implemented strategies would not be complete without various marketing strategies with regard to referring to the efforts of Times of India group. the contents, layout and packaging of the In fact, it emerges as a good case study of print newspaper. Recruitment advertisements media in India with regard to innovative in colour, tender advertisements under marketing strategies. different segments like catering, power, stationery, etc. times classifides dot com CASE STUDY TIMES OF INDIA GROUP OF in 23 categories, introduction of colour The first edition of the Times and printing in the Bangalore edition are some Journal of Commerce later to be called the of these strategies. In addition, innovative Times of India, was launched in Bombay in supplements is also another attraction. 1838. After several years of change, evolution Total of eleven supplements are brought and growth, Bennett, Coleman and Company out per week in case of Bangalore edition. Limited was established with the principle They include Bangalore Times,

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Classifides, Men and Women, Education prices. This opened a new era in the Times, Ascent and . It marketing strategies of newspapers in brought out a special supplement called IT India. Times of India resorted to an Ascent in order to cope up with the IT invitation price of Rs 1.50 and Rs 1 in boom. Many booklet presentations were important locations of India like New brought out from time to time keeping and Bangalore. This strategy took the pace with certain events and rivals by surprise and compelled them to developments. follow the suit. The circulation of Times of India not only increased but also Giving importance to local news and surpassed that of the main rivals like events is another strategy followed by this Times in and group. Hapennings in the respective in Bangalore. cities, weather conditions, entertainment, grievances, sports and other events are The Economic Times also followed a covered prominently. A supplement similar strategy. Few years back, it exclusively catering to local hapennings is substantially increased the size of the also brought out. For example Bangalore market category through its promotion Times is brought on six days of the week price of one-rupee-per -copy edition in and this supplement caters only to Mumbai. This made a large number of hapennings in Bangalore. readers ordering their own copies. An invitation price of two rupees on weekdays The product strategies of Economic Times was also introduced in many cities. The are also similar to but with variance and price of the paper during weekends like distinction. Layout and appearance are Saturday and Sunday has been increased given primary importance. Lot of visuals to seven rupees. This prompted many and caricatures are used to make the readers to buy the newspapers only for presentation more effective. Three five days in a week. This strategy also supplements namely Investors Guide, brought into its fold many readers who Brand Equity and Corporate Dossier are would not have purchased the paper in brought out every week to cater to the the normal course . needs of the target segments of readers. Occassionally, Economic Times also c. Promotion Related Strategies: The brings out, booklet presentations like group resorted to various promotion Brand Equity Quiz book and Strategic strategies, which are innovative in nature. Marketing which has now become a In fact, these strategies were eye openers periodic priced publication. to many as people thought that newspapers are to promote others b. Price Related Strategies: Price paid by products but not their own. Times of India the readers of newspaper was considered group distributed free samples in select insignificant in Indian conditions until areas, offered special discounts for the Times of India group brought down the tickets of select programmes, organized

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various contests and events like public TRIMMED AND SLIMMED PAPER - AN speaking etc.,and started ‘Newspaper in EMPIRICAL STUDY Education’ programme in various schools. Times of India Group introduced a slimmer but Regular advertisements are given on not lighter, livelier but not frivolous newspaper in hoardings. It launched a massive the recent months. This slimmer, easy to campaign to build its brand image which handle, sleeker and contemporary newspaper they want to be synonymous with the term started a new trend in newspaper industry of ‘India’. India. Some newspapers introduced this As far as Economic Times is concerned, strategy little earlier or later in order to match some innovative strategies introduced with the strategy of Times of India Group. As this include ET Club, ET awards for corporate is a new precedent in India, the authors excellence and special pull outs on various undertook a survey of 357 readers of Times of occasions. ET Club is mainly meant for India and Economic Times in Bangalore. The students who will get the paper in bulk at objective was to ascertain the immediate their institutions. Panel discussions, response and reaction of the readers towards workshops and seminars are organized for this latest strategy of a newspaper in general members at frequent intervals. As part of and Times of India Group in particular. This was carried out during June, 2002. ET Club activities, the senior executives of the paper visit the institutions and deliver lectures on corporate matters and also The Methodology: conduct ET awareness tests. This A structured questionnaire was distributed to 400 strategy introduces the Economic Times to readers selected on random basis. The MBA the students who would make it a habit as students of Canara Bank School of Management and when they grow up in the corporate Studies, Bangalore University collected the ladder. primary data from the readers. The questionnaire consisted of certain background details of the All these strategies of Times of India readers like age, gender, occupation, annual group over a period of time have made household income and the length of the habit of marketing very important in increasing not reading Times of India Group newspapers. It only the circulation but also the ad also found out the observations of the readers revenue. They became innovators in the towards the recent changes in size, layout, sense that they are the pioneers of these content and supplements. Their response to strategies, which other picked up later on. these changes was also ascertained by giving One such recent innovative strategy of five scales of agreement or disagreement this group is the slimmer and livelier paper regarding the positive and negative dimensions by pruning the size. This is introduced with of the recent changes. The data collected were effect from 16th of May 2002 for Times of analysed with the help of percentages, frequency India and Ecnomic Tmes. tables and mean scores.

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Data Analysis: were having annual household income of less than two lakhs. 60% of the readers of Times of The profile of respondents was that 73% were India and 50% of Economic Times have been lessthan 4o years Of 59y0were 37y0 reading the respective newspaper for not more were employed, 38% were students and 64% than years.

TABLE 1 DISTRIBUTION OF RESPONDENTS BASED ON THEIR EXTENT OF OBSERVATION OF CHANGES

NOTE : Figures in brackets are percentages

The above table reveals that 60.47% of readers The above table was further analysed to arrive of Times of India have treated the recent at meanscores. These scores were ascertained changes as major ones whereas 53.24% of after giving weightage of 1,2 and 3 to answers readers have treated as major changes in case like no change, minor changes and major of size. Another important finding is that more changes. The summary is given below. than 50% of readers of both the newspapers have observed minor changes in case of layout, content and supplements.

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TABLE 2 MEAN SCORES OF THE EXTENT OF CHANGES OBSERVED BY READERS OF TIMES OF INDIA

Extent of change Nature of change No change I Minor change I Major change I Mean Score ~ Size 14 244 624 2.56

layout 40 384 336 2.20

Content 129 344 132 1.76

Supplements 112 348 174 1.84

Mean Score I I 2.09 I

TABLE 3 MEAN SCORES OF THE EXTENT OF CHANGES OBSERVED BY READERS OF ECONOMIC TIMES

Extent of change

Nature of change No change Minor change Major change Mean Score

Size 22 100 246 2.39

layout 28 186 99 2.03

Content 63 150 48 1.69

Supplements 53 156 69 1.81

Mean Score 1.98

From the above tables, it can be inferred that than that of 1.98 of Economic Times. This the mean scores of the readers of Times of analysis brings out the fact that the recent India are more than that of Economic Tmes in changes in the newspapers were more visible to case of all the dimentions like size, layout, readers of Times of India than that of Economic content and supplements. Even the average Times. mean score of 2.09 of Times of India is more

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TABLE 4 DISTRIBUTION OF READERS OF TIMES OF INDIA BASED ON RESPONSE TO CHANGES

Strongly disagree

33(9.59) 17(4.94)

1O( 2.91) 29(8.43)

22(6.39)

b. Not improved 56( 16.28) 97( 28.20) 71(20.64) 94(27.32) 26(7.56)

4. Change in supplements is

a. contemporary 4413.951 182(52.91) 74(21.51) 27(7.85) 13(3.78)

b. Irrelevant 35(10.17) 79(22.97) SS(25.58) 129(37.50) 13(3.78)

The above table reveals that more than 75% of disagree or strongly disagree that it is easy to the readers agree or strongly agree that the handle and 17Y0 disagree or strongly disagree to change in size is easy to handle whereas 64% the means to cut cost. More percentage of agree or strongly agree that it is a means to cut readers agree or strongly agree to the change in cost. It can also be observed that more layout, content and supplement than the percentage of readers (19.19%) are undecided percentage of readers who disagree or strongly in case of means to cut cost than 3.78% in case disagree of easy to handle. Nearly 20% of the readers

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TABLE 5 DISTRIBUTION OF READERS OF ECONOMIC TIMES BASEDONRESPONSETOCHANGES

~~ Nature of change Strongly Agree Undecided Disagree Strongly agree disagree

1. Change in size is

a. Easy to handle 46(29.87) 69(44.81) 1 O(6.49) 19( 12.34) 1 O(6.49)

b. Means to cut cost 30(19.48) 56(36.36) 31 (20.1 3) 27(17.53) 1 O(6.50)

2. Change in layout is

a. Impressive 33( 21.43) 69(44.81) I 16(10.39) I 25(16.23) I ll(7.14) b. Difficult to read 16( 10.39) 32(20.78) I 24(15.58) I 54(35.06) I ZE(18.19)

3. Content has a. Improved 23( 14.94) 78(50.65) 1 26(16.88) 1 13(8.44) 1 14(9.09) b. Not improved 19( 12.34) 28( 18.1 8) 40(25.97) 51(33.12) 16( 10.39)

4. Change in supplements is

a. Contemporary lE(11.69) 81(52.60) 27( 17.53) lO(6.49) lE(11.69)

b. Irrelevant 18(11.69) 21 (1 3.64) 45(29.22) 55(35.71) 15(9.74)

NOTE : Figures in brackets ore percentages.

The above table brings out that 74% of readers cut cost. With regard to change in layout, 66% agree or strongly agree that the change in size agree or strongly agree that it is impressive but is easy to handle whereas 56% agree or strongly 31% feel that it is difficult to read. 53% of agree that it is a means to cut cost. The readers disagree or strongly disagree that it is percentage of readers (20.13%) who are difficult to read. In case of improvement of undecided in case of means to cut cost is more content, 65% agree or strongly agree whereas than that of readers who opine that it is easy to 30% agree that there is no improvement. A handle. 19% of readers either disagree or similar trend is observable in case of change in strongly disagree that it is easy to handle and supplements also. 24% disagree or strongly disagree for means to

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TABLE 6 With regard to Economic Times also, similar trend is evident. The mean scores .in case of MEAN SCORES OF READERS RESPONSE change of size, easy to handle is 3.60 and TO CHANGES means to cut cost is 2.55. The mean scores of Nature of change impressive change of layout, improved content and contemporariness of supplements are more 1. Change in sire is than that of difficult to read, no improvement in Illcontent and irrelevant supplements. a. Easy to handle

b. Means to cut cost On the whole, mean scores of all positive

~ statements in case of Times of India are more 2. Change in layout is than that of all negative statements. Same is a. impressive I 3.65 3.51 the case with the readers of Economic Times also. On comparison between Times of India and b. Difficult to read 3.03 3.30 Economic Times, it is evident that the mean 3. Content has scores of Times of India are more than that of a. Improved 3.49 3.53 Economic Times in case of positive statements. I I 1 This is not so with negative statements. b. Not improved 2.02

4. Change in rupplemenfs is DISCUSSION ON FINDINGS a. Contemporary 3.6 The entire analysis of the primary data furnished b. irrelevant 3.01 above brings out one important issue to the fore. That is the perception of the readers to the Average mean score of 3.63 recent marketing strategy of pruning the size of positive statements the newspaper. No doubt, the reader is getting Average meon score of 2.79 less quantity of newspaper but still they have negative statements welcomed the same in a positive way. This must be due to not only to the innovation but The above table brings out that the mean score also proper packaging and communication of the of easy to handle is more than that of means to change. This is evident from the way the cut cost in case of Times of India. Same is the publishers of Times of India group case with impressiveness of change of layout, communicated that the pruning is in confirmity improvement of content and contemporariness of with the international practice. If this is the extent changes in supplements. In other words, the of welcome in the initial stages, it will improve readers of Times of India have welcomed the and increase in the days to come and the changes more positively. readers would be habituated to these changes.

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CONCLUSION would be more positive. The case study of Times of India Group has established without Thus the marketing strategies by any doubt that the readers of Indian newspapers newspapers in India have certainly have very positively responded to the Various benefited them by increasing their circulation and innovations in marketingstrategies, This augurs profitability. These strategies have also become well for marketing in general and newspaper very convenient to handle competitors. If these industry in in particular. strategies were more innovative, the results

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