Newspaper Distribution Final Report
Newspaper Distribution Final Report
Newspaper Distribution Final Report
Introduction :
The printing press, invented by Johann Gutenberg in 1447, ushered in the era of the
modern newspaper. Gutenberg’s machine enabled the free exchange of ideas and the
spread of knowledge -- themes that would define Renaissance Europe. During this
era, newsletters supplied a growing merchant class with news relevant to trade and
commerce. Manuscript newssheets were being circulated in German cities by the late
15th century. These pamphlets were often highly sensationalized; one reported on the
abuse that Germans in Transylvania were suffering at the hands of Vlad Tsepes
Drakul, also known as Count Dracula. In 1556, the Venetian government published
Notizie Scritte, for which readers paid a small coin, or “gazetta”.
In the first half of the 17th century, newspapers began to appear as regular and
frequent publications. The first modern newspapers were products of Western
European countries like Germany (publishing Relation in 1605), France (Gazette in
1631), Belgium (Nieuwe Tijdingen in 1616) and England (the London Gazette,
founded in 1665, is still published as a court journal). These periodicals consisted
mainly of news items from Europe, and occasionally included information from
America or Asia. They rarely covered domestic issues; instead English papers
reported on French military blunders while French papers covered the latest British
royal scandal.
Newspaper content began to shift toward more local issues in the latter half of the
17th century. Still, censorship was widespread and newspapers were rarely permitted
to discuss events that might incite citizens to opposition. Newspaper headlines did
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announce the beheading of Charles I at the end of the English Civil War, although
Oliver Cromwell tried to suppress all news-books on the eve of the execution. In
1766, Sweden was the first country to pass a law protecting press freedom.
The invention of the telegraph in 1844 transformed print media. Now information
could be transferred within a matter of minutes, allowing for more “in time” and
relevant reporting.
By the middle of the 19th century, newspapers became the primary means of
disseminating and receiving information. Between 1890 and 1920, the period known
as the “golden age” of print media, media barons such as William Randolph Hearst,
Joseph Pulitzer, and Lord Northcliffe built huge publishing empires. These men had
enormous influence within the media industry, and gained notoriety for the ways in
which they wielded their power.
Broadcast radio exploded onto the media scene in the 1920’s. Newspapers were
forced to re-evaluate their role as society’s primary information provider. Like the
new media technologies of today, the development of a low cost, alternative media
source produced rumblings that radio would topple the newspaper industry. To
respond to this new competition, editors revamped the paper’s format and content in
order to broaden their appeal, and stories were expanded to provide more in depth
coverage.
Soon after newspapers adapted to radio, they were forced to re-evaluate themselves in
light of a new and more powerful medium: television (TV). But TV’s omnipresence
did not render the newspaper obsolete. Even some newspapers, like USA Today,
responded to the technological advancements by using colour and by utilizing the
“short, quick and to the point” stories that are usually featured on television.
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The technological revolution of today is creating new challenges and opportunities for
traditional media. Never before has so much information been so accessible to so
many.
The amount and immediacy of information on the Internet is unparalleled, but it has
not signaled the end of the newspaper’s relevance. Newspapers in print remain a
popular and powerful medium for the reporting and analysis of events that shape our
lives. According the estimation of World Association of Newspapers, one billion
people in the world read a newspaper every day.
Newspapers in India
Newspapers in India started with William Bolts, an ex-employee of the British East
India Company who attempted to start the first newspaper in India in 1776. Bolts had
to beat a retreat under the disapproving gaze of the Court of Directors of the
Company.
Then, in 1789, James Augustus Hicky started Bengal Gazette, a two-sheet newspaper
that publicized the private lives of the “sahibs” of the Company. In the newspaper,
Hicky even dared to mount scurrillious attacks on the Governor-General and Chief
Justice, for which he was sentenced to one year in prison and fined Rs.5, 000, which
finally drove him to penury. These were the first tentative steps of journalism in
India.
B. Messink and Peter Reed were pliant publishers of the India Gazette, unlike their
infamous predecessors. The colonial establishment started the Calcutta Gazette. It was
followed by another private initiative, the Bengal Journal.
The Madras Courier was started in 1785 in the southern stronghold of Madras.
Richard Johnson, its founder, was a government printer. Madras got its second
newspaper when, in 1791, Hugh Boyd, who was the editor of the Courier quit and
founded the Hurkaru. Tragically for the paper, it ceased publication when Boyd
passed away within a year of its founding.
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It was only in 1795 that competitors to the Courier emerged with the founding of the
Madras Gazette followed by the India Herald. The latter was an “unauthorized”
publication, which led to the deportation of its founder Humphreys. The Madras
Courier was designated the purveyor of official information in the Presidency.
In 1878, The Hindu was founded, and played a vital role in promoting the cause of
Indian independence from the colonial yoke. It’s founder, Kasturi Ranga Iyengar, was
a lawyer, and his son, K. Srinivasan assumed editorship of this pioneering newspaper
during the first half of the 20th century.
Bombay, surprisingly was a late starter. The Bombay Herald came into existence in
1789. Significantly, a year later a paper called The Courier started carrying
advertisements in Gujarati.
The first media merger of sorts happened with The Bombay Gazette, which was
started in 1791, merging with The Bombay Herald the following year. Like, The
Madras Courier, this new entity was recognized as the publication to carry “official
notifications and advertisements”.
Compared with many other developing countries, the Indian press has flourished since
independence and exercises a large degree of independence. In 2001, India had
45,974 newspapers, including 5364 daily newspapers published in over 100
languages. The largest number of newspapers were published in Hindi (20,589),
followed by English (7,596), Marathi (2,943), Urdu (2,906), Bengali (2,741), Gujarati
(2,215), Tamil (2,119), Kannada (1,816), Malayalam (1,505) and Telugu (1,289). The
Hindi daily press has a circulation of over 23 million copies, followed by English with
over 8 million copies.
1447: Johann Gutenberg invents letterpress printing, a process that enabled the mass
production of the printed word.
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1501: Pope Alexander VI decreed that printed material must be submitted to clerical
authority prior to publication in order to prevent heresay. Failure to do so could result
in fines or excommunication.
1605: Johann Carolus publishes the first printed newspaper, Relation, in Strasbourg,
now in France, but at the time a part of the so-called
Deutsches Reich :
1704: Daniel Defoe, the author of Robinson Crusoe and often recognized as the
world’s first journalist, begins to publish the Review, a periodical covering European
affairs.
1903: Alfred Harmsworth (later Lord Northcliffe) develops the first tabloid
newspaper, the Daily Mirror, in London. The Daily Mirror introduced the concept of
the “exclusive” interview. The first was with Lord Minto, the new Viceroy of India, in
1905.
1966: Behram “Busybee” Contractor begins publishing his column “Round and
About” in the Evening News of India. Running until 2001, the satirical column
became the longest running column in the history of newspaper journalism.
1994: First independent on-line daily appears on the World Wide Web.
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These three areas involve a number of sub-questions, which were uncovered and
answered during the course of the project. However, the third interest needed a focus.
Therefore, two fields within the newspaper distribution chain were chosen for further
studies; the information flow and the connection between the production and the
distribution.
The aims of this research work have been divided into three phases. The aim of phase
one was to find the characteristics of morning newspaper distribution and to create a
model of the distribution process. The aim of phase two was to find out how morning
newspaper distribution could be improved. And the aim of phase third was to find out
consumer buying behaviour of the particular brand of news paper. The objective of
the third phase is to find the brand preference for newspaper among consumers. In
this study the aims at analyzing the following aspects:
1) To find out the brand preference for newspaper.
2) To study the relationship between the various personal factors, such as Price,
In-depth Intelligent articles, More number or spicy bites, Prediction of
economic trends / business houses, widest game out of news coverage,
professional approach of news description.
3) To find out the different factors for preferring the particular brand.
7) To find out the awareness of the consumers about the newspaper brand
Research:
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The Indian Media market has been on an upswing in the last 5 years. New media have
grown at high rates in line with their expected potential. However, traditional media
have not been disadvantaged by this, and they have continued to show strong growth,
though their share of the total media pie has expectedly shown a slight dip. The main
reasons for this are: Willingness of emerging advertisers to pay for impact
• Expansion of traditional media into new markets and formats, which is helping
them demand value
• A strong business environment that supports this growth
• Increase in advertisers’ spends on traditional media to maintain status quo and
their willingness to look at new media (which also tend to be cheaper options)
to create differentiation and grab attention
• Shift in focus from conventional target consumers (Housewife, aged 25-45
years), to include the Male and the Youth, who are the primarily being
targeted through new mediums like Mobile and Internet, and Radio and Niche
Publications. What remains to be seen is whether recent downtrends at the
stock market will moderate media growth.
against the 17% predicted by us in last year’s report. Print, despite being the
biggest incumbent medium, continued to attract the largest share of
advertising spends. The India Print story is in stark contrast to the threat being
faced by the medium globally. The major reason for the revenue growth has
been the consistent hike in Card Rates of major players, in spite of increased
competition in the top 8 Metros and stagnant Average Issue Readership (AIR)
numbers. While this has been made possible due to the continued dominance
of publications in their home markets, rate hikes in some part have also been
imposed to offset their entry into new markets. Rate hikes have taken place at
both the premium and the popular ends of the product spectrum. Expensive
English print became even more expensive with leading brands making forays
into new markets or improving relative readership contribution from smaller
markets. On the other hand the local retail market continued to strengthen its
media investment in regional publications. Here increased colour options
helped publications improve their yield from advertisers. 60% of total volume
consumption in 2007 was in colour as against 52% the year before.
Publications are also actively looking at ways to tap into the local advertising
market with “Go Local” drives by way of new Supplements. With restrictions
on OOH medium usage in some cities, publications are increasingly targeting
retailers and cashing in on their diverted OOH spends. Leading publications
are also creating new avenues for growth through forays into other languages
and formats. Publications are using e-paper versions by targeting NRI
population, which gives them over 75% of the total hits. However, it would
take some time before this avenue begins to generate real value. Publications
which promoted their Classifieds portals as separate entities have succeeded in
penetrating segments like Matrimonial, Real Estate and Jobs. The Players:
Within each language there are one or two players that have seen over 25%
growth and others which are closer to 10% levels. Typically the big players
have got bigger. While some players have grown on the back of increased
offerings and entry into new markets, others have done so on the back of Rate
Hikes and improved Colour to B/W ratios
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• The Players : Within each language there are one or two players that have
been over 25% and other which are closer to 10% levels. Typically the big
players have got bigger. While some players have grown on the back of
increased offering and entry into new markets, other have done so on the back
of rate hicks and improved colour to B/W ratio.
• The Future: 2008 will continue to be an exciting year for print. We do not
expect the digital wave to dampen our attachment to the morning daily. Rising
literacy levels and limited access to Internet will be the key reasons why print
will continue to grow. Just as in 2007, this year will see a host of new
launches. While existing print players will diversify in related genres and enter
new geographies, non-print players will enter print to diversify. Newsprint
prices are on the rise and the next few quarters will continue to see increasing
prices and shortages. This will put pressure on margins, forcing publishers to
look at new formats and revenue streams. Private Equity players and bankers
will also continue to explore investment opportunities in Indian media houses.
Growth in transport infrastructure will result in the launch of commuter
newspapers across cities. For instance, Delhi's underground, which did not
exist before 2002, will have 100 stations in three years' time and is expected to
carry 3 million commuters, mostly in the age group of 15-45, daily. This is the
TG most coveted by advertisers and media houses are already launching
publications to tap in to this bunch, with Metro Now being the pioneer.
• The Reader: The Indian reader has never had it better. While 2 years back
everything appeared plain vanilla, today, he or she has a choice of multiple
flavors and publishing houses are more than willing to cater to his or her
tastes.
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The selling process of newspaper in India involves various steps like: Promotion of
New product i.e. Newspaper in the market.
1) Prospecting & Evaluating : In this stage i.e. before launching the newspaper
in the market company first decides which class of people they are targeting,
Because as the different class of the people there are different class of the
newspaper are available, the style of language, way of writing news are differ
as per the class of the readers. This is the stage where potential customers are
found and evaluated. It is first necessary to identify that the potential customer
has the willingness, ability to buy the product. This would involve first
generating sales leads. In the case of newspapers customers could be
Financial Institutions, IT employees, students preparing MBA students and
other institutions like Hotels, Air lines or weather it’s designed for ordinary
lay man etc.
2) Pre Approach: In this stage the process of approaching the client is decided.
This involves deciding on the approach establishing objectives of the sales call
and preparing for a presentation. In this stage need to analyze what are the
product features in which the customer will be interested and focus on those
during the presentation. This stage involves deciding whether it will be enough
to do a simple cold call or to set up an appointment which is needed in case we
want to set up a stall. Like in the case of setting up stalls in IT companies
where a larger section of our targeted population can be met it becomes
essential that we first fix up an appointment with the facilities manager asking
his permission to set up the stall.
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3) Approach: This stage involves getting in initial contact with the customer by
meeting him and generating interest in the product. Once the salesmen we are
with the customer they would make a presentation making him aware of the
characteristics of the paper, the discount and the magazines that are on offer.
While selling to Financial Institutions sales representatives focus on
presenting the various Business magazines that the customer will get if he
subscribes. While pitching to younger customer salesmen focuses on the
monthly magazines which are more enticing to them. While making
presentations to corporate the focus is on the operational efficiency and
convince the Facilities Manager that the implementation will be starting in 2
weeks time from when the employees start signing up for the subscription.
standard by interacting with their vendors and start the delivery of their
newspaper to their home in 2 weeks.
5) Closing: At this stage the customer is more or less aware of the product and
has made up his mind to either go ahead with the sale or not. If the
subscription are attractively priced most customers prefer to go for the plan
offered and want to first get a look at the service being provided. Thus most
people will either back out at the middle of the presentation, while others stick
around to try and see what they are getting for their money.
6) Find Out The First Readers & Brand Visibility: At initial stage when your
brand of paper is new in the market that time the numbers of customer are not
knowing to any one so at this stage to get the idea of 1st reader, and determine
the exact amount of production of newspaper for the future and to avoid the
wastages, company can distribute maximum amount of newspaper as per the
competitor’s circulation in the market e.g. They produce 10000 copies as per
the competitor’s quality & circulate in the market for one month and observe
the no. of copies is return. I.e. if no. return copies are 7200 then 2800 are the
your first readers.
7) Branding: At initial stage the branding are done through some social
campaign and also some advertisement campaign are adopted through media
& other players in the market. Then various scheme provided to vendors so
that they can keep their copies in their stall give them proper visibility, also
some incentives, gifts material are provided to them to increase the sales. Also
various campaign and program are adopted to reach the target audience which
includes Schools, Social campaign, TV commercials, Radio adds, Media
partners etc.
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Sales management:
1) Sales Planning: It is the first step in the sales management process Sales
planning guides the organization in achieving its objectives in a systematic
manner leading to profitability and success. In case of newspaper industry
plans are formulated keeping in view the overall sales strategy and objectives
of individual organizations. Since circulation is the main thing in the news
paper industry, all the planning is intended to increase the circulation base of
newspaper .The main source of revenue for a newspaper company is the
advertisements and they can charge more for advertisements only if their
circulation base is higher. This circulation base is increased by eating into the
competitor's circulation. The head office decides the targets for all branches in
the country and this is communicated to marketing manager of branches
across the country. The marketing manager of the branch then allocates targets
for every sales executive in the branch. The marketing manager asks each
sales executive to target a particular segment. Segment can be hotels,
educational institutes, corporate offices; IT companies students preparing for
competitive examinations like CAT, XAT etc.
3) On The Job Training: The sales force is briefed about the newspaper and
supplements and then they are sent to the field for training. In this
industry the training is mostly on the job where executives have to go and
sell the subscriptions to the customer.
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the vendors and ensure they are regularly supplying the newspaper. The
whole process of printing & circulation of newspaper is difficult part of
distribution process normally the printing of newspaper are started around
12:30 and it gets over at 3:30 and after that delivery van gets ready for the
delivery.
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2) Printing Efficiency: Once the design of news gets over immediately it passes
to the printing department. In this process first news is type and set as per the
requirement then the positive copy of that news are get after that it get’s
transfer to the alliumenium plate then this plate goes through various process
and then final print gets ready. One machine can produce 45000 newspaper
gets printed. Once the final print gets ready as per the requirement the bundles
are getting packed and first it transfer to the long distance and then short
distance paper prints gets transferred. So that paper gets available to the
various places at same time. This process gets continue till the 3:30.
3) Delivery model : Once the news paper gets ready it gets delivered at various
depot through the company van. In Mumbai such depot are located at junction
places such as Dadar, Thane, etc. Only the delivery till the depot is done by
manufacturer after it gets handed over to the agencies and remaining
circulation are done by this people. In Mumbai Dhanjat Newspaper Agency,
Ambika Newspaper Agency are the big players in the markets. After that such
agencies can transfer the newspaper to the vendors such vendors can provides
copies to the sub vendors, door to door providers, news stall etc.
4) Transportation : Normally the transportation till the depot are take place
through the personal vehicle and after that it takes place through the agency
distribution network & finally the vendors and agency forecast the circulation.
Normally the long distance transportation is take place through the public
mode of transport e.g. railway, Public bus i.e. ST etc. International
distributions are carried out through Airways but, now day’s because of e
paper concept international supply gets over. Only some magazines and
Outlook are exported. So finally the responsiveness and efficiency play an
important role in newspaper distribution channel. Responsiveness includes
supply chain's ability to respond to wide a range of quantity demanded (due to
demand fluctuations) and meet short lead times. On the other hand efficiency
is the cost of making and delivering the newspaper to the readers.
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Production Unit
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Various
Depots
Use agencies
Network
Newspaper
Vendors
Stall
Final
Customer
In India as such no any newspaper company has its own raw material producing unit
i.e. Paper production, Ink manufacturing, Plate required for printing etc. so normally
they out source such material from outsiders e.g. For paper Rama Newsprint and
Papers limited, For printing plate the suppliers are Techno\, Nirag are the biggest
player
In newspaper industry the first news is always the last news so the first news
decisions are very important for newspaper sale. Though the main news of the paper
is same for all over the India but the some news are changes according to the area it
means that are design to attract the regional crowed of that area. So the newspaper
information is needed to change region wise.
3) Spot Selling: This is the last stage of distributing the newspaper at this point
normally the rate of marine is high. Because its end of distribution channel.
Normally 13 percentages of people gets product through this stage.
Reverse Logistic:
In newspaper industry unsold newspaper i.e. excess paper are scrap so it send it to the
recycling which is completely outsource. So they need to take the proper decision
regarding the quantities of prints such extra newspaper can pick up next day by
company.
At 3am a newspaper distribution van of printing press of sets out in the dark with
bundles of paper. It makes its way around 40 km. away, every day.
By 4am, when nondescript roadside tea stalls in villages are wakes up to business, the
van has already dropped copies of the newspaper at specified place. The copies of the
newspaper wrapped in neat bundles, they make curiously small package for delivering
to readers in neighboring district. at least 3 hours after the bundles have been
delivered in various places through the various modes of transport.
Rural India is a key market for the newspaper and part of its aggressive plan to access
places in difficult terrain, It has been more about accessibility then volumes.
For the newspaper’s sales strategies, penetration of rural markets involves a two
pronged approach : 1) build varied network of information providers from throw
regions, such as the postman, milkman bus conductors and drivers in small places like
Raghopur in Bihar where boats are the only means of transport when floods engulf
each year. 2) To encourage local vendors to sell the newspaper.
“Earlier, the information providers were paid a fixed monthly remuneration but after
the growth of market, various vendors are appointed on a commission basis”
One strong USP or unique selling proposition is the news paper’s emphasis on
localized content and regional dialects that its readers can connect with. In rural area
local dialects changes every 40 km. Local news network in districts, blocks and
villages, the three levels at which local administrative bodies in India function, to tap
local news and issues that have a bearing on people’s lives, which in turn, has
improved its reach. Some special reporters concentrate on crime and development
issues in the region and believes that while newspaper in the world over are dying,
rural markets in India would to read them for decades ahead.
The newspaper’s advertisement spaces also reflect a rural shift : In excess of 905 of
advertisements come from either local sources or government departments. Weather it
is advertisements for locally made tobacco products, Jewellary stores or motorcycles,
advertisements in newspaper reflect the testes and aspirations of its readers. It has also
served as an information provider on job vacancies, Kisan Credit Card camps in
villages and newer, Fuel-efficient motorcycles.
Paper at 2 : 30 am, Bundles of paper are loaded in vans for distribution across
bazaar
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SWOT ANALYSIS
The more you think about it, the more you need to understand one of the largest and
fastest growing markets of the world .Through understanding of the market is
necessary before it can be served
STRENGTHS:
742million people
Marketers can make effective use of the large available infrastructure
1. Post offices 1,38,000
2. Entry of IFRA worldwide research services industry for newspaper
3. 2.1 million rural readers
4. Large number of Public distribution shops
5. 2000 daily newspaper in 100 languages
6. Helps to educate the people
Abundance of circulation in rural area also.
WEAKNESSES:
Brand loyal
OPPURTUNITIES:
Infrastructure is improving
In 50 years only 40% villages were connected by road, in the next 10 years
another 30% would be linked.
More than 90 % of the villages are electrified, though only 44% rural homes
have electric connections.
Social Indicators have improved a lot between 1981 and 2001
Rural literacy level improved from 36% to 59%
Penetration rate in rural market is low so there are many marketing
opportunities.
Develop number of employment opportunities
THREATS:
Affordability:
The second major challenge is to ensure affordability of the product or service. With
low disposable incomes, products need to be affordable to the consumer, most of who
are the daily readers. A solution to this has been introduction of advertisement in
newspaper. Large amount of revenue is generated through this adds in newspaper ,
and so it is possible to reduce the cost of paper. Even though the production cost of
paper is huge i.e. approximately Rs. 9 to 10 its available in the range of Rs. 2 to 5
Acceptability:
The next challenge is to gain acceptability for the product in market. Therefore, there
is a need to offer products that suit the market. We need to develop a customized
paper for various regions. To accept the paper in the market we need to identify the
tendency, capacity, likes and dislikes of the target audience.
Awareness:
The fourth important things in newspaper marketing are creating the awareness of the
product in the market. And for that various promotion tools are need to use such as
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Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing
objectives. Marketing mix has a classification for these marketing tools. These
marketing are classified and called as the Four Ps i.e. Product, Price, Place and
Promotion.
The most basic marketing tool is product which includes product design, quality,
features, branding, and packaging.
A critical marketing tool is price i.e. the amount of money that customers pay for the
product. It also includes discounts, allowances, credit terms and payment period.
Place is another key marketing mix tool. And it includes various activities the
company undertakes to make the product accessible and available to the customer.
Some factors that decide the place are transport facilities, channels of distribution,
coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities that the
company undertakes to communicate and promote its product to target market.
Promotion includes sales promotion, advertising, sales force, public relations, direct
marketing, etc.
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Product:
In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. It is of two types: Tangible (physical) and Intangible (non-physical).
Since services have been at the forefront of all modern marketing strategies, some
intangibility has become essential part of marketing offers. It is therefore the complete
bundle of benefits or satisfactions that buyers perceive they will obtain if they
purchase the product. It is the sum of all physical, psychological, symbolic, and
service attributes, not just the physical merchandise. All products offered in a market
can be placed between Tangible (Pure Product) and Intangible (Pure Service)
spectrum.
Pricing:
A customer is price sensitive and shops for value. This is mainly because of his
income levels than his perception. Hence the marketer has to find ways of making the
product affordable to the consumer. The product packaging and presentation offers
scope for keeping the price low. Reusable paper are also preferred and are seen as
value addition. In many paper manufacturing company, the price is the assigned
numerical monetary value of a goods, service or asset. Price is also central to
marketing where it is one of the four variables in the marketing mix that business
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people use to develop a marketing plan. Pricing is a big part of the marketing mix.
Choosing the right price and the right pricing strategy is crucial to the marketing
process.
The price of the product is not something that is fixed. On the other hand the price of
the product depends on many other factors. Some times the price of the product has
got nothing to do with the actual product itself. The price may act as a way to attract
target customers.
The price of the product is decided keeping many things in mind. These things
include factors like cost incurred on the product, target market, competitors, consumer
buying capacity etc.
Placement or Distribution:
Place is a term that has a variety of meanings in a dictionary sense, but which is
principally used in a geographic sense as a noun to denote location, though in a sense
of a location identified with that which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market place". It can
mean a geographic location, an industry, a group of people (a segment) to whom a
company wants to sell its products, such as young , professional or middle-aged
family men etc.
• Multiple tiers push up the costs and channel management is a major problem
for marketers due to lot of middlemen in the process.
Promotion:
Advertising
Personal selling
Sales promotion
Publicity and public relations
The specification of these four variables creates a promotional mix or promotional
plan. A promotional mix specifies how much attention to pay to each of the four
subcategories, and how much money to budget for each. A promotional plan can have
a wide range of objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or creation of a
corporate image
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The print medium in Mumbai has been rapidly expanding, with the introduction of
three major newspapers in 2005. Mumbai Mirror, a product hastily put forth by The
Times of India in anticipation of DNA and Hindustan Times, was the first off the
block. Next came Hindustan Times, which was launched on July 14. DNA was
launched on July 30. With the introduction of these newspapers, Mumbai is now a
major print medium publishing centre. The almost-170-years-old Times of India leads
the pack, followed by DNA, Mid Day, Hindustan Times, The Indian Express, the
Asian Age, etc. There are other small newspapers like the Afternoon Despatch and
Courier and the Free Press Journal. Surprisingly, DNA's counter sales are giving the
afternoon tabloid Mid-Day a run for its money. But, as a newspaper agent points out,
a vendor stands to earn 45 paise more per copy if he sells DNA in the raddi (recycled
paper) market, rather than selling it at the counter at Rs. 2. As Charudatt Dangat,
Mumbai's largest newspaper agent, put it, "What choice does the reader really have?
It's more in terms of price. Most of the stories in all of the newspapers are the same.
The journalists keep shifting, from The Times of India to DNA and back again."
Another industry insider added, "Even though the readers want better content,
unfortunately, the competition is taking place on the marketing and sales front, rather
than the editorial." With a six lakh circulation, The Times Of India was far ahead of
earlier competitors like Indian Express (58,000). In fact, it was The Economic Times
(1.47 lakhs) and Mid-Day (1.40 lakhs) that trailed in second place after The Times of
India in Mumbai. While there are varying estimates on how the new newspapers are
doing, market sources estimate that DNA sells around two lakhs and Hindustan Times
1.40 lakhs. However, DNA claims that it is printing 2.90 lakh copies and Hindustan
Times says it sells 2 lakh copies. Traditional market leader ToI continues to rule the
market with a readership of 1,719,000. Given the readership of 1,745,000 that it had
in the last round, this is hardly a bothering dip. Months before DNA and Hindustan
Times launched in Mumbai, The Times of India went on the defensive and started a
new `compact' newspaper, somewhat like a tabloid, called Mumbai Mirror. But it did
not sell much, so The Times of India started distributing it free with the main
newspaper. Now, for Rs.4, The Times of India reader gets more than 100 pages. "We
34
always knew that there was space for a second newspaper in Mumbai, and so we
started an alternative to broadsheets - a compact. By including Mumbai Mirror with
The Times of India. "The Mirror is a newspaper for the new generation who want
news-on-the-go like McDonalds. It's for the supersonic age where people want to scan
news without going into too much depth." It is essentially a `blockading' strategy -
you flood the reader with so much that he/she does not feel the need for another
newspaper. "A normal reader spends 20-25 minutes on newspapers. Do you think
he/she will spend more time reading just because there are new newspapers?" asks
Das. The half period figures released by MRUC (Media Research Users Council) in
the IRS 2006, Round 1 don’t show that these papers made a noticeable dent in the
Times of India’s popularity. The results show that although Hindustan Times has
managed 2.85 lakh readers, DNA has a readership of 4.02 lakh. In comparison,
Mumbai Mirror, the tabloid launched by the TOI group has managed a 7.65 lakh
readership figure. Nothing definitive coming from there right now but DNA is elated.
"In the next few years, Mumbai's market will expand by up to 75 per cent, with even
The Times of India growing,"
Why has Mumbai's lethargic newspaper industry suddenly become a `hot market' for
new competitors? First, because it has the country's largest advertisement revenue of
Rs.1, 000 crores, of which only one player - The Times of India - has the lion's share.
The new entrants are vying for a piece of the pie. The Times of India's advertising
rates are the highest in the country. For long, advertisers have felt that they have been
held to ransom as they have no choice but to pay exorbitant rates to The Times of
India in order to reach Mumbai's up market consumers. Now, there are other
platforms, but they will have to prove themselves before advertisers start considering
them an option. "Advertisers are happy that there will be competitors. But, there won't
be a dramatic shift in ad spends in the short term.
35
The invitation was issued at the Annual General Meeting of WAN, being held at this
year’s World Newspaper Congress, World Editors Forum and Info Services Expo
2008 in Göteborg, Sweden. More than 1,800 newspaper publishers, chief editors and
other senior newspaper executives attended the Göteborg meetings.
India has than 2000 daily newspapers in 100 languages with a combined circulation of
90 million.
Hyderabad, the capital of Andhra Pradesh and India’s fifth largest city, is a
cosmopolitan city now vying to become India’s Silicon Valley. It has a blend of rich
cultures and a renowned cuisine. It is a centre for the pearl trade.
The Paris-based WAN, the global organization for the newspaper industry, defends
and promotes press freedom and the professional and business interests of newspapers
world-wide. Representing 18,000 newspapers, its membership includes 77 national
newspaper associations, newspaper companies and individual newspaper executives
in 102 countries, 12 news agencies and 11 regional and world-wide press groups.
36
Darmstadt, Germany / Chennai, India, 30 January 2007 – Ifra India and the Research
Institute for Newspaper Development (RIND) have joined forces to start the Ifra-
RIND Material Testing & Research Centre, which was inaugurated on 22 January by
Reiner Mittelbach, Ifra’s CEO.
The facility, located on RIND premises in Taramani, Chennai, is the first of its kind
and offers testing of newspaper printing materials and research services.“The industry
has long called for an independent and professional laboratory where all newspapers
can test their printing materials and this Ifra-RIND centre will answer this need. It
will be a one-stop centre for newsprint and newsink testing needs,” said R.Mittelbach.
Initially, the following testing services are being offered by the centre:
– Paper grammage; colour of paper substrate; fineness of ink grind;
– Printability tests: ink mileage and consumption, print through, set-off, picking,
linting, printing penetration, mottle;
– Optical characteristics: density, tone value increase (dot gain), mid-tone spread,
colours, printable colour gamut; screening: screen ruling, screen angles, dot shape.
These tests play a vital role in the quality of the printed paper and if properly
controlled, they can result in savings for newspapers. The centre has the following
testing equipment: Precision Balance from Switzerland, Printability Tester from The
Netherlands, Spectrophotometer from the USA and Grindometer from Germany.
Other equipment that is planned to be added later will include: a special spectrometer
for paper, tensile tester, digital micrometer, roughness tester, tear tester, rheometer,
tackmeter, abrasion tester and ash content meter for testing Newsshade, tensile
strength, sheet thickness, surface roughness, tearing strength, viscosity, ink tack, rub-
off and ash content. The centre is also supported by major Indian newspaper
publishers such as ABP, Deccan Herald, Dinamalar, Malayala Manorama, Manipal
Media Network, Mathrubhumi and The Hindu. Two inks suppliers – DIC Inks and
Micro Inks – complete the list of the centre’s initial supporters.
37
An initiative of Ifra:
The Ifra-RIND Material Testing & Research Centre is an initiative of Ifra, the world’s
leading association for newspaper and media publishing. Based in Darmstadt,
Germany, Ifra acts as a platform for decision makers from the newspaper industry. Its
main task is to help its members keep pace with the rapid changes in technology.
The Indian office, Ifra India (www.ifra.com/india), is based in Chennai and helps
bring Ifra services closer to companies in India. Currently, there are more than 35 Ifra
members in India, including most of the leading publications. Ifra India organizes an
annual conference, seminars and workshops dedicated to the publishing industry and
also offers consulting and training programmers’.
Ifra has long followed the growth of the newspaper industry in India and gears its
services to reflect the needs of Indian publishers. The ICONS initiative, the
standardization project for Indian newspapers, is one such effort. Also, Ifra is
launching a full-scale exposition in India, Ifra Expo India 2007. The event, the first of
its kind for Ifra outside of Europe, will take place from 4 to 6 September at the
Chennai Trade Centre.
38
1. Which newspaper do you think comes out with the most number of in-
depth/intelligent articles?
Winner: Mint
Ever since its launch, Mint has always positioned itself as a newspaper that analyzes
developments in the financial worlds and presents them in a way that is easy to
understand to the reader. It has also put focus on coming up with more in-depth
feature stories than providing short news bytes.
39
2. Which newspaper do you think comes out with the most number of inside stories/or
spicy bits of companies?
The Economic Times, as we know, has come out with stories that have created many
crisis like situations for many of our clients. Exclusives, inside stuffs - the kind of
things the journalists out there always seem to be after.
40
3. Which newspaper do you think comes out with the best predictions of economic
trends/ business houses?
It is interesting to note how The Economic Times has swallowed up a majority of the
pie on this question and the above. No wonder this is India’s largest circulated
financial daily.
41
4.Which newspaper do you think provides you with the widest gamut of news
coverage?
Some people have questioned that why include the dailies like The Times of India
among the financial dailies. Our take was that these dailies today come up with
sections of 8-10 pages of business news that have become financial newspapers in
themselves. But perhaps the widest gamut of news coverage might not be limited to
only business news here.
42
5. Which newspaper do you think has the maximum number of journalists who are
very professional in their approach?
The Hindu Business Line, as we know, is one of those newspapers that puts
journalism ethics above anything else. The staff there are also superb, based on
personal experiences- knowledgeable, intelligent, helpful, modest.
Disclaimer: The results above are based on an online survey taken at India PR Blog
among readers of this blog who chose to participate. The survey is educational and for
research purposes and it does not imply the actual standings of these newspapers
among its readers, stakeholders, or others sections of the market. The voting is done
and the results of the recent ‘Let’s rate the media’ survey on India PR Blog. There
were around 382 responses out of which around 300 valid and completed responses
were chosen. The results are interesting, though not very different to what many of us
already know but might help in putting a number and validating what we think,
especially as the votes were from PR professionals who deal with these newspapers
day in and out
43
Literature Review
In India, newspapers are published in about 100 regional languages and dialects other
than Hindi and English. Over the years, the number of dailies has steadily increased.
Their number increased to 5638 in 2001 from 5364 in the previous year, i.e. by 5.11
per cent. The total circulation of daily newspapers was 5,78,44,236 in 2001.
In 2001, The Hindu, an English daily, published from Chennai was the largest
circulated single edition daily with claimed circulation of 9,37,222 followed by
Hindustan Times, English Daily, published from Delhi with a circulation of 9,09,278.
Anand Bazar Patrika, Bengali Daily, came third, whereas The Times of India, English
Daily, was fourth.
With such huge number of newspapers and such enormous circulation, the supply
chain model for the newspaper industry is a challenge in itself. Moreover, due to the
perishable nature of the product, its distribution needs all the more importance.
A newspaper industry consists of five major functional areas. These include editorial,
advertising, production, administration and circulation. If the same is compared to a
manufacturing industry, one can easily realize the commonalities in the functions.
Editorial supplies the raw material, which is transformed to the finished product
through printing. The marketing function is performed by advertising and
management is done by administration. The key area of sales of the product is dealt
by circulation, hence the importance of distribution channel in the newspaper
industry.
There are three main categories of perishable goods: Goods that are perishable only
when considered by the customer; Goods that are perishable only to the manufacturer;
and Goods that are perishable to both the manufacturer and the customer. Newspapers
44
fall into this later category. Newspaper companies cannot print the news sections of
the newspaper in advance because of the requirement that news be timely.
Additionally, with the increase in commuting times, especially in the large,
metropolitan markets, late delivery is also not entertained. Therefore, newspaper
production/distribution is the problem of distributing highly perishable products under
severe time constraints.
Raw material for the newspaper industry, news, is supplied by the editorial, which is a
functional area in the newspaper office itself. The editorial is fed with news from
various places by reporters, correspondents and news agencies. The final news is sent
to the printing facility where the newspaper is printed.
The printed newspaper is dispatched to various distributors across the country through
transportation. Transportation is normally through private contract carriers within
local area, public transport in case of longer distances and through couriers in other
cases.
The newspaper distributor has sole rights to distribute the newspaper in his area. His
revenue is based on a commission on the sale of every newspaper. He achieves
circulation through salesmen appointed and salaried by him, who in turn pass it on to
hawkers.
Hawkers, vendors and book stall owners are the last link of the supply chain before
newspaper reaches readers. The hawkers’ remuneration is based on a commission
system and is the highest in the entire supply chain.
The most important issue to deal with in distribution of newspapers is the distribution
of newspapers to subscribers at minimum costs all the while presenting the correct
edition of the paper to each subscriber on time. For a major metropolitan morning
newspaper, it is a daily task of producing a total of several hundred thousand
newspapers in many editions and delivering them to home delivery customers in
45
approximately six hours. The key timing parameters are the start of the press run, say
at midnight, and the requirement that each customer receives her/his paper before,
say, 6 a.m. In order to better serve their advertisers and subscribers, newspapers
produce many editions of the newspaper for different demographic/ geographic
regions. The products may differ in editorial content, in run of paper advertisements,
and in advertising inserts. The design of the distribution system involves solving
several location-allocation routing and clustering problems.
The newspaper industry is becoming very competitive with the national players
competing with the regional players. As stated earlier, newspaper is a perishable
commodity and in order to cater to needs of the customer in various geographical
locations, a newspaper has to be published from various locations. This helps in
achieving a strategic fit between the supply chain and the customer needs.
The consumers are primarily looking for a national newspaper giving regional news
as well. Consumers also demand faster response time because of the perishable nature
of the product. In order to economize on the costs of the supply chain, the newspaper
needs to have regional publication units with both national and regional news varieties
in the same newspaper.
As has been shown by various studies, newspaper readers do not want to spend more
on reading a newspaper. Thus an economy of scale is very important factor for a
newspaper. It is also known that revenue earned through sales of a newspaper is many
times low compared to its production cost; the industry gets most of its revenue
through print advertisements. All these imply that newspaper should achieve a critical
mass of customers to achieve economies of scale.
The printed newspaper is dispatched to various distributors across the country through
transportation. Transportation is normally through private contract carriers within
local area, public transport in case of longer distances and through couriers in other
cases.
The newspaper distributor has sole rights to distribute the newspaper in his area. His
revenue is based on a commission on the sale of every newspaper. He achieves
circulation through salesmen appointed and salaried by him, who in turn pass it on to
hawkers.
Hawkers, vendors and book stall owners are the last link of the supply chain before
newspaper reaches readers. The hawkers’ remuneration is based on a commission
system and is the highest in the entire supply chain.
The most important issue to deal with in distribution of newspapers is the distribution
of newspapers to subscribers at minimum costs all the while presenting the correct
edition of the paper to each subscriber on time. For a major metropolitan morning
newspaper, it is a daily task of producing a total of several hundred thousand
newspapers in many editions and delivering them to home delivery customers in
approximately six hours. The key timing parameters are the start of the press run, say
at midnight, and the requirement that each customer receives her/his paper before,
say, 6 a.m. In order to better serve their advertisers and subscribers, newspapers
produce many editions of the newspaper for different demographic/ geographic
regions. The products may differ in editorial content, in run of paper advertisements,
and in advertising inserts. The design of the distribution system involves solving
several location-allocation routing and clustering problems.
The newspaper industry is becoming very competitive with the national players
competing with the regional players. As stated earlier, newspaper is a perishable
commodity and in order to cater to needs of the customer in various geographical
locations, a newspaper has to be published from various locations. This helps in
achieving a strategic fit between the supply chain and the customer needs.
47
The consumers are primarily looking for a national newspaper giving regional news
as well. Consumers also demand faster response time because of the perishable nature
of the product. In order to economize on the costs of the supply chain, the newspaper
needs to have regional publication units with both national and regional news varieties
in the same newspaper.
As has been shown by various studies, newspaper readers do not want to spend more
on reading a newspaper. Thus an economy of scale is very important factor for a
newspaper. It is also known that revenue earned through sales of a newspaper is many
times low compared to its production cost; the industry gets most of its revenue
through print advertisements. All these imply that newspaper should achieve a critical
mass of customers to achieve economies of scale.
The printed newspaper is dispatched to various distributors across the country through
transportation. Transportation is normally through private contract carriers within
local area, public transport in case of longer distances and through couriers in other
cases.
The newspaper distributor has sole rights to distribute the newspaper in his area. His
revenue is based on a commission on the sale of every newspaper. He achieves
circulation through salesmen appointed and salaried by him, who in turn pass it on to
hawkers.
Hawkers, vendors and book stall owners are the last link of the supply chain before
newspaper reaches readers. The hawkers’ remuneration is based on a commission
system and is the highest in the entire supply chain.
48
The most important issue to deal with in distribution of newspapers is the distribution
of newspapers to subscribers at minimum costs all the while presenting the correct
edition of the paper to each subscriber on time. For a major metropolitan morning
newspaper, it is a daily task of producing a total of several hundred thousand
newspapers in many editions and delivering them to home delivery customers in
approximately six hours. The key timing parameters are the start of the press run, say
at midnight, and the requirement that each customer receives her/his paper before,
say, 6 a.m. In order to better serve their advertisers and subscribers, newspapers
produce many editions of the newspaper for different demographic/ geographic
regions. The products may differ in editorial content, in run of paper advertisements,
and in advertising inserts. The design of the distribution system involves solving
several location-allocation routing and clustering problems.
The newspaper industry is becoming very competitive with the national players
competing with the regional players. As stated earlier, newspaper is a perishable
commodity and in order to cater to needs of the customer in various geographical
locations, a newspaper has to be published from various locations. This helps in
achieving a strategic fit between the supply chain and the customer needs.
The consumers are primarily looking for a national newspaper giving regional news
as well. Consumers also demand faster response time because of the perishable nature
of the product. In order to economize on the costs of the supply chain, the newspaper
needs to have regional publication units with both national and regional news varieties
in the same newspaper.
As has been shown by various studies, newspaper readers do not want to spend more
on reading a newspaper. Thus an economy of scale is very important factor for a
newspaper. It is also known that revenue earned through sales of a newspaper is many
times low compared to its production cost; the industry gets most of its revenue
through print advertisements. All these imply that newspaper should achieve a critical
mass of customers to achieve economies of scale.
quantity demanded (due to demand fluctuations) and meet short lead times. On the
other hand efficiency is the cost of making and delivering the newspaper to its reader.
Thus on the basis of the analysis so far, one can say that newspaper supply chain
should have high responsiveness than efficiency. This is depicted graphically in the
following figure:
As can be seen, the cost in such a case is high, which is what is happening in the
newspaper industry. However, the reader is not burdened to recover these costs. In
fact these are recovered through the advertisements that newspapers publish in their
editions.
The main drivers of supply chain are inventory, transportation, facilities and
information.
Inventory exists in the supply chain because of a mismatch between supply and
demand. Applying this to the newspaper industry, inventory of the raw material i.e.
newsprint is maintained based on the safety inventory model. This model states that
inventory is held just in case demand exceeds expectation, i.e. it is held to counter
uncertainty. Moreover, even some of the news items can also be considered as
inventory. These may include special columns, weekly columns etc. Since these are to
be published periodically, they need to be worked upon well before in time. Also,
some articles should always be ready with the newspaper, just to cover up some free
space that might creep in any edition.
Normally newspapers use private carriers to transport the product from publication
facility to various agencies in the region. In case it is required to transport the product
across states, public transport such as rail and air are used.
Deciding where a newspaper should locate its facility constitutes a large part of
design of a supply chain. The tradeoff here is whether to centralize to gain economies
of scale or decentralize to become more responsive by being closer to the customer. In
case of newspaper industry, the second option is desirable. Warehousing in newspaper
industry follows cross-docking model to a good extent. The product from printing
facility is carried to the agents from where it is further transported to salesmen and
hawkers.
The design process of a newspaper supply chain is based on push mechanism, where
everyone is vying for the same pie. The competitive environment pushes players to
increase their market share, which is rule of the game. Moreover, due to very nature
of the product, use of information technology can cater to the need of high
responsiveness.
Increasing varieties of the product with respect to demand for regional, linguistic,
special articles in newspaper is an obstacle towards optimizing entire supply chain.
Newspapers have resorted to mass customization in terms of regional editions of
national dailies to overcome this obstacle.
In case of newspapers, demand is forecasted on the basis of past data. Projection for
the forthcoming week is also based on estimates given by the hawkers. In addition to
this the circulation manager has to formulate his own projections. The company alone
has to the loss arising out of any demand irregularity or failure in demand estimation.
There is also a seasonality factor attached to the newspaper demand forecasting.
Normally the demand falls during vacations as families move out.
51
There are also two sequencing problems. Since the printing facility produces several
different products, there is an ideal sequence in which the production would take
place in order to minimize total (including time spent on set up) time spent on
production. On the other hand, some distribution centers may be farther from the
printing facility than others. The geographic locations of the distribution centers
suggest a preferred sequence in which the distribution system receives papers. For
example, Distribution would prefer that Production produce papers for the most
distant distribution center first. However, this production plan may not be consistent
with Production's preferred sequencing. Consequently, the production and distribution
operations are tightly coupled and must be modeled as such. This makes the problem
substantially more difficult than if the production and distribution operations could be
treated separately.
This shows the critical role information technology plays in modern day newspaper
printing. It is evident that without this usage it will be extremely difficult to print
multiple editions of a newspaper from various locations. Moreover, Information
technology also plays an important role in designing of a newspaper, including its
layout. It also saves on critical changeover time during printing.
Information technology helps gather news and advertisements from all sources across
the country and put to one newspaper edition. If said in one simple sentence, use of
information technology has made the life of newspaper industry much easier and
simpler.
Optimization model
52
The overall distribution problem can be viewed similar to the traveling salesman
problem. The entire distribution network can be segregated into various hawker points
and an optimized route proposed for each of them, based on the vehicle capacity
constraints.
Starting at the first hawker, newspaper requirements are accumulated until the vehicle
limit is reached. At this hawker, another vehicle route is begun. The procedure is
continued until all the hawkers are included in some route.
After the routes that include all the hawkers and that satisfy the vehicle capacity
constraints have been constructed, the time constraints must be checked. The routes
describe the distance the vehicle must travel on each route and the sequence in which
hawkers on that route are visited. For each route, the distance along the route, from
the production facility to the last hawker point visited can be calculated. The time the
vehicles stop at each hawker also needs to be considered.
The production schedule can be deduced by arranging the routes in a sequence that
will ensure delivery of all the newspapers by the prescribed time. This sequence can
be developed by arranging the routes in descending order of the total route length
distance from the production facility to the last hawker. Usually, newspapers for the
farthest hawkers are produced and shipped first since the total delivery time is greater.
Costs can be divided into two major categories: costs associated with the actual
production and distribution activities, and costs directly attributable to the
perishability of either an input or an output. The latter costs will be accrued only if the
schedule is not feasible. In the newspaper problem, an infeasible solution would be
one in which not all newspapers are delivered by the deadline. The costs associated
with this infeasibility may include the cost of the newspaper, a lost opportunity and
the cost of processing the complaint.
play an important role, and production and distribution are necessarily intimately
related. In addition, the total time devoted to both production and distribution may be
severely limited thereby further tying together the design and operation of the
production and distribution functions. These distinguishing features increase the
complexity of the production/distribution problem for perishable goods. It is also a
problem that has not been adequately addressed in the operations research or supply
chain literature.
Consumer decision making would vary with the type of buying decision. You would
agree that decision to buy toothpaste, a tennis racket; personal computer and a car are
all different. There are 4 types of buying behavior based on the degree of buyer
involvement and the degree of difference between buyers: -
Complex buying behavior: - This type of buying behavior is involved when the
product is expensive, bought infrequently. E.g.: Automobile The consumer will spend
lot of time in discussing and planning about the purchase of such a product.
Dissonance reducing buying behavior: - This type of buying behavior is involved
when purchase is expensive, infrequent and risky but there is not much difference
between the various brands. E.g.: you are planning to buy a DDA flat in a particular
locality. You would agree that all the flats are similar in size and construction. Once
you decide to buy a particular flat you will be more concerned that you should not
have any problem after buying it. Let us assume you wanted to buy a flat and you
have not noticed a dustbin close to it. Now when you come to know about dustbin you
would not have buys that flat.
Habitual buying behavior: - This type of buying behavior is for the product, which
have low involvement and the absence of significant difference between the brands.
These products are frequently purchased. E.g.: When you want to buy product like
salt you don’t even think when you go to store whatever brand is available you would
have pick it up. Variety seeking buying behavior: - This type of buying behavior is
involved when low involvement is there but there are significant differences between
the brand. E.g.: Think about cookies, you may want to change the cookies that you
had last time not because they were bad but you want to change the taste.
55
NEED IDENTIFICATION: the buying process starts when the buyer recognizes a
problem or need, this need could be because of internal or external stimulation.
EXTERNAL STIMULATION: say when we are passing through a bakery shop you
smell the freshly baked biscuits based on this you may want to buy, to consume
biscuits
INFORMATION SEARCH: Once the need has been identified the consumer would
look for more information about the product. This information he may get from
personal sources {family friends, neighbors, etc.} or commercial sources
{advertising, sales person, dealers, displays}
POST PURCHASE BEHAVIOUR: Once the consumers have purchased the product,
he would either satisfied or dissatisfied. If the consumer is satisfied, he will tell his
friends about the same and as such a better word of mouth is spread of the product.
But in case the consumer is dissatisfied he will tell to all his friends and associates
about the dissatisfaction that he had after using or consuming the given product.
Methodology:
56
This study aims to identify the impact of brand preference on newspaper among the
consumers for its purpose data were collected by survey methods through
questionnaire. This questionnaire contained the questions regarding various attributes
of newspaper.
Sampling:
Totally 50 respondents have been interviewed and the data have been collected. The
area of study has been restricted to 50 respondents were selected at random for the
purpose of the study.
The study of brand preference for newspaper has been made through questionnaire
method. 50 respondents are selected randomly and were asked to answer the question
based upon their answer the classification of respondents are done and are analyzed
and interpreted. Graphical representation & Chi-square test is used while analyzing
and interpreting the data.
Source of data:
The study is based on primary data only. The required information was collected
through the questionnaire from the consumers directly by interviewing them and
information regarding the physical distribution, marketing and handling of
newspaper are collected through unscheduled interviews with the various expert.
57
Age of respondent :
Below Above
Preferred Brand 25 25 - 30 30 Total
The Hindu Business Line 0 3 0 3
Business Standard 1 2 1 4
Hindustan Times 2 2 0 4
The Economic Times 3 1 2 6
The Times of India 7 5 2 14
The Indian Express 1 0 2 3
Mint 3 4 0 7
The Hindu 2 0 0 2
Other 4 0 3 7
23 17 10 50
2) P – value : 0.12196425
As per the age of respondent, 14 out of the 50 respondent are loyal to the
58
Times Of India brand & P-value is 0.12196425 > 0.05 therefore result is
2) P – value : 0.93717707
59
Reasons
Price raises 0 1 1 2
lack of availability 11 7 8 26
Other specify 12 9 1 22
23 17 10 50
60
2) P – value : 0.07995265
27 out of the 50 respondents will not change their newspaper brand due to the lack of
availability or any other reason. P-value is 0.07995265 < 0.05 i.e. result is not
significant therefore there is a relationship between changing of preferred brand &
age of respondent
Advertisement 3 4 1 8
Relative 5 4 2 11
Shopkeepers 0 1 3 4
Teacher 5 2 0 7
Other 3 1 2 6
23 17 10 50
2) P – value : 0.23541868
7 out of the 14 respondents have an age below 25 years well known about
their newspaper through friends. P-value is 0.23541868 > 0.05 i.e. result
2) P – value : 0.05281289
44 out of the 50 respondents will not change their newspaper due to the
Gender :
Femal
Preferred Brand Male e Total
The Hindu Business Line 1 2 3
Business Standard 3 1 4
Hindustan Times 2 2 4
The Economic Times 3 3 6
The Times of India 12 2 14
The Indian Express 1 2 3
Mint 1 6 7
The Hindu 0 2 2
Other 5 2 7
28 22 50
2) P – value : 0.04601544
respondents are male & 2 are female. P-value is 0.04601544 > 0.05 i.e.
2) P – value : 0.40284253
65
8 out of the 15 respondents are male & 7 are female who are interested to know the In
depth intelligent articles. P-value is 0.40284253 > 0.05 i.e. result is not significant;
therefore there is no relationship between factors influence to purchase preferred
brand & gender of respondent.
Femal
Have you ever changed your brand? Male e Total
Yes 13 10 23
No 15 12 27
Total 28 22 50
Reasons
Price raises 0 2 2
66
lack of availability 15 11 26
Other specify 13 9 22
28 22
2) P – value : 0.99750312
Almost equally male & female have changed their preferred brand due to lack of
availability of preferred brand. P-value is 0.99750312 > 0.05 i.e. result is not
significant; therefore there is a relationship between changing of brand & gender
of respondent.
67
2) P – value : 0.66303942
8 out of the 14 respondents are male well known about their preferred
brand through friends. P-value is 0.66303942 > 0.05 i.e. result is non-
68
2) P – value : 0.23307449
69
26 out of 44 respondents are male and remaining 18 are female will not change their
brand will not change the newspaper even though the family income is increased. P-
value is 0.23307449 > 0.05 so the result is not significant. So there is no relation
between income & gender in newspaper consumption.
Family Income :
Which newspaper is
preferred by you?
70
2) P – value : 0.51754588
As per the monthly income of the family, again Times of India is a most preferred
brand. 14 out of 50 respondents of different income level preferred same newspaper.
P-value is 0.51754588 > 0.05 result is not significant; there is no relation between
income of the consumer and newspaper
1000 Rs.
0 20000 0
Price 1 0 0 1
In depth Intelligent articles 3 7 5 15
More no. of inside or spicy bits 2 4 3 9
prediction of economic trends / business
houses 2 4 2 8
widest game out of new coverage 0 3 1 4
professional approach of news distribution 6 1 6 13
14 19 17 50
2) P – Value: 0.3867342
7 out of 15 respondents are having income of Rs. 10001 to 20000 are not interested in
depth intelligent articles. P- Value is 0.3867342 > 0.05 so the result is not significant.
So there is no relation between income level and factor which influence the
newspaper.
72
Reasons
Price raises 2 0 0 2
lack of availability 7 11 8 26
Other specify 5 8 9 22
14 19 17 50
2) P – Value: 0.76552318
11 out of 26 respondents that income level is 10001 to 20000 are not change the
newspaper even though the newspaper is not available in the market P- value is
0.76552318> 0.05 so the result is not significant. So there is no relation between
income level and change in brand
73
Rs.
Less 10001
then to More
How do you know your preferred Rs. Rs. then
brand? 10000 20000 20000 Total
friends 3 6 5 14
Advertisement 1 3 4 8
Relative 3 5 3 11
Shopkeepers 0 2 2 4
Teacher 3 2 2 7
Other 4 1 1 6
14 19 17 50
2) P – value : 0.55934784
6 out of the 14 respondents have a monthly income Rs. 10001 to > 20000,
of family.
Less
then Rs. 10001 More
Will you change the brand if your Rs. to then
family income level is increases? 10000 Rs. 20000 20000 Total
yes 4 2 0 6
no 10 17 17 44
14 19 17 50
2) P – value : 0.04983688
Findings:
15 out of the 27 respondents are male preferred Times of India a best for
their regular brand. And they will not change it due to the non
availability.
8 out of the 15 respondents are male well known about their preferred
brand through friends.
26 out of 44 respondents are male will not change their brand even
though the family level is increased.
76
Conclusion
• From the above findings, majority of the population preferred Times
Of India brand mainly below the age of 25
• Most of the consumers preferred Times Of India
• Mouth publicity i.e. through the friends and relative are the most
important factors for the awareness of preferred brand.
Questionnaire
Personal Profile
1. Age :
Brand Preference
Other
newspaper?
79
Price
Friends
Advertisement
Relative
Shop keepers
Teacher
Others (specify)
Yes No
5. State the degree of satisfaction in the following (for your preferred brand)
1) Price
2) Information
4) News coverage
5) Advertisement
80
Yes No
Price raise
8. Name the substitute newspaper par brand for your regular newspaper
Brand Reason
1)
2)
3)
9. Do you feel that your preferred brand of the newspaper enhances your knowledge
rich?
Yes No
10. Will you change the brand if your family income level is increases?
Yes No
Same Price
Same Information
No other alternative
81
12. Have you ever suggested your preferred newspaper brand to your friends
or relatives?
Yes No
Bibliography