Literature Review
Literature Review
Literature Review
2
LITERATURE REVIEW
Ph.D. Thesis of Mr. Rahul Shiledar
2.0 Background
The media and the newspaper industry in India have gone through several
changes since India received independence. The objectives of publishing the
newspapers changed and this led to the change in the type of content printed
in newspapers. Editors who had independence for the country as the only
agenda passed over the responsibility of newspapers to the new league of
editors and these editors had to have a different agenda after the
independence. Later on the newspapers also started changing in terms of
technology used to print, the paper used and the overall look.
Today the industry is again going through several changes. Other mediums
like television and Internet are being consumed more than the newspaper
medium in several western countries. Thus the newspaper media also faces
competition from various media. The newspaper industry in Mumbai too has
gone through tremendous changes during the period of study. Three English
newspapers were launched in the city to compete with the strongest brand,
The Tim es of India and other competitor brands. Literature was studied to
understand the transitions, the global and Indian trends in the newspaper
industry, impact of changes, the current state and issues that the newspaper
industry has been facing.
Various experts have noted their findings and theories on the subjects related
to the research. The research includes the study of literature written by
various experts from the fields of branding, strategy and the newspaper and
other media industry. Books related to Product Management were also
reviewed for the purpose of the research. The literature studied was in the
form of books, magazines, journals and Internet websites. Interviews of
several experts printed in magazines or available on Internet was used for
review. The chapter now follows the reviews on literature.
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Ph.D. Thesis of Mr. Rahul Shiledar
2.1 Newspaper Industry in India: Tara S . Nair in her article, “Growth and
Structural Transformation of Newspaper Industry in India: An Empirical
Investigation” investigates the transition of the Indian newspaper industry
since 1960’s to 1990’s. Nair speaks about change of ownership of
newspapers from ideology oriented owners to business magnates and
introduction of managing editors as two main changes. She points out that
this was the period when the objectives of running newspapers started shifting
towards power from the press and achieving other business objectives
through the media platform. Nair also mentions that too much
commercialization of journalism leads to depoliticisation or popularization of
m essages. Thus commercialized newspapers will tend to just report news and
not write against any issue. (Economic & Political Weekly, 2003).
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Ph.D. Thesis of Mr. Rahul Shiledar
comments in the article tiiat as soon as a person becomes literate they buy a
newspaper. A newspaper in India retains an aura of respect and the
investment to buy a newspaper Is very cheap thus making it possible for
people to buy a newspaper regularly. (The Globe and Mail, 2011).
2001 2003-04
Registered Publications 49145 58469
Total Circulation 126963763 133087588
As shown in table 2.1 at end of 2004, the registered publications had almost
reached 60000. (Kohli-Khandekar, 2006).As per an article by Mr. Arun
Prabhudesai, from 2005 to 2006, nearly 2,100 newspapers debuted in India,
joining 60,000 circulating. The writer cites the growth of middle class and
increasing literacy as the prominent reasons behind the booming newspaper
industry. The writer further says that the surge of advertising is such that out
of these 60000 newspapers only 4 newspapers shut down between 2005 and
2006. (www.trak.in, 2007) The writer has gathered references from Registrar
of Newspapers in India (RNI), the official Indian organization. It must be
noted that the total number of newspapers in India include the daily
newspapers, non-dailies, regional language and English newspapers RNI also
counts editions of all newspapers as a different newspaper. (Economic &
Political W eekly, 1997).
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Ph.D. Thesis of Mr. Rahul Shiledar
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Graph 2.1: IRS Data, 2010 English newspapers In India, all edition data
Source: IRS Data 2005 to 2010, made available from Lokmat Papers Ltd.
Graph 2.1 shows the rising readership among the English newspapers in the
year 2010. The readership numbers, the graph indicates has increased in
every quarter for almost all publications.
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Ph.D. Thesis of Mr. Rahul Shiledar
An article titled, “Print remains effective force”, discusses about the positive
outlook that the newspaper publishers across many countries have towards
the newspaper business in spite of the inflow of digital media. Several
publishers are of the opinion that with the right kind of inputs, innovations and
focus towards new as well as established businesses will give the newspaper
great results.
An article in Advertising & Marketing is on the rise of internet cafes around the
country. It notes that internet surfing is on the rise and using internet at home
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Ph.D. Thesis of Mr. Rahul Shiledar
is a costly affair. Using internet at home for one hour costs a person between
R s. 40 to R s. 50 while using internet at internet parlour costs around R s. 20
for the same time period. (Varshneya, 2001).
It is interesting to note how much the media industry and technology has
evolved in India just in about ten years. Today the usage of internet from
home is becoming quite common whereas in metros one can even observe a
large number of people surfing internet from their mobile phones.
Harish Bijoor, discusses the effective use of point of purchase (PO P) to reach
the customers. The writer says in the article that PO P has become the best
form of passive advertising. The PO P material is the most visible and powerful
form of brand advertising, the author adds. (Bijoor, 2001).
It can be noted that the newspaper brands too use this medium to a large
extent via promotional materials like newspaper stands, small boards and
umbrellas to the newspaper stalls to gain visibility.
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Ph.D. Thesis of Mr. Rahul Shiledar
“Calling the shots”, an article from The Economist in India, discussed the split
in the ideologies in the Indian media over “private treaty” a new revenue
generation method started by The Tim es of India, the leading English daily in
India. Private treaty is a concept which accepts equity in the advertisers
company instead of payments for the advertisements released in the
newspaper. DNA, the multi-edition English daily is against the practice of
private treaties stating that this will compromise the content of newspapers.
On the other hand other leading newspapers in India like, Hindustan Tim es
and Dainik Bhaskar the part owner of DNA have already implemented the
practice. The article says this trend will grow in the future, Sevanti Ninan a
media activist comments in this article. (The Economist, 2008).
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Ph.D. Thesis of Mr. Rahul Shiledar
newspapers are on the decline. The article says that this is the best platform
for foreign investors who have deep pockets but a bleak future in their own
country. However the article also says that the 26% limit on foreign
investments is restricting several newspaper organisations across the world
from entering India as they are looking for a minimum stake of 49% . Further
the article also discusses about the flip side of investing in India. (Time, 2005).
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Ph.D. Thesis of Mr. Rahul Shiledar
A c c e le ra tin g slide
Quarterly newspaper print ad sales
Chidanand Rajghatta, in his article titled, “Print is alive and kicking”, discusses
about a recent survey conducted by a French Internet Company. The survey
concludes that people who read articles or news in newspapers retained the
information much longer than the ones who read it on iPad. The article further
adds that 70% of iPad readers recalled an article compared to 90% who read
it in a newspaper. Rajghatta further says that newspapers which harness
multimedia strengths to remain current and profitable are being successful.
(The Economic Times, 2011).
Since the objective of newspaper brands has shifted towards growth and
revenues through advertising it is observed that they are implementing
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Ph.D. Thesis of Mr. Rahul Shiledar
One major observation is that the newspaper brands are becoming extremely
innovative. According to an article Mid Day Mumbai published Mini Mid Day, a
supplement that struck an innovation in Mumbai to deliver a high impact result
for its client MCHI (Maharashtra Chamber of Housing Industry). The
innovation saw the mini version of the newspaper, reduced to half its size, to
communicate about the MCHI property exhibition 2010. Another innovation
that newspapers in Mumbai have carried out for their advertisers was by The
Tim es of India when it came up with its three jacket strategy for its advertisers
in the Mumbai market. The Times of India had experimented with roadblocks
and cut-out concepts to grab consumer eyeballs, 3D ads in newspapers have
been also increasingly making their way. Mid Day, Rajasthan Patrika, Dainik
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Ph.D. Thesis of Mr. Rahul Shiledar
Bhaskar and Lokmat, all have experimented with a 3D newspaper. While the
feedback for 3D newspaper is mixed, newspapers are trying every possible
way to attract the readers and advertisers attention. Oriya daily Sambad
launched a massive campaign, called ‘30 Days - 30 Changes’, in September
2010. Sambad launched the full-fledged 360 degree campaign, which saw the
paper come up with 30 changes in content innovation for 30 continuous days.
Mid-Day was published in Mumbai and Delhi with a ‘Meetha’ innovation. The
paper featured a unique communication solution for Cadbury Dairy Milk and
came wrapped in a Cadbury package, thereby resembling a mega chocolate.
Even financial newspapers are coming up with creative campaigns for its
readers. Business Standard rolled out its new brand campaign across various
markets and mediums. The new campaign had a tagline: ‘Know More. No
Less’, (www.exchange4media.com)
The Times of India has even crossed borders and joined hands with The Jang
Group newspaper brand from Pakistan. The Times of India and Jang came up
with a very innovative campaign called ‘Aman Ki Asha’ that initiated a peace
project between the two countries. The campaign was a big success.
(International Newsmedia Marketing Association, 2011).
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Ph.D. Thesis of Mr. Rahul Shiledar
The authors state that the differentiation first takes place in the minds of
people. Perception towards differentiation is very important. They have also
stated in the book that points like creativity and price cannot be differentiating
points. Creativity is a very relative term and once pricing is used to
differentiate, each brand will offer price cuts, resulting in no gain. This
situation can be currently observed in case of all the newly launched
newspapers across cities and languages. Each brand is being offered to the
readers at cheaper costs and the prices are further going down with
newspapers being offered at very low subscription rates. The result is that the
burden on the advertising departments in the newspaper organisations is
increasing and due to this pressure newspaper organisations are focusing a
lot on earning revenues through advertising. However due to heavy
competition, the newspapers are forced to offer heavy discounts to
advertisers too. It is also observed that newspaper brands usually differentiate
either on the basis of attribute ownership, leadership, heritage or market
specialty. Trout and Rivkin describe in detail these points of differentiation.
(Trout, Rivkin, 2000).
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Ph.D. Thesis of Mr. Rahul Shiledar
Subroto Sengupta in his book, “Brand Positioning” offers various case studies
of Indian brands and the strategies that these brands have implemented for a
competitive advantage. The author also discusses about a technique called
Multidimensional Scaling (MDS). He says MDS is a set of techniques to
understand and measure the variety of human responses. The author says
that MDS tackles two problems; one is the dimensions involved for consumer
perception of objects and second is the configuration of points in that
dimensionality. He has given an example of the Indian magazines industry to
explain the concept of how the reader’s responses could be concluded.
(Sengupta, 2003).
“ Positioning: The Battle for your Mind” is a book that discusses the concept of
positioning. The authors who have invented the concept of positioning discuss
what positioning is all about. They say that positioning is all about getting into
the minds of the consumer. Further they say that companies should not just
focus on the strengths and weaknesses of their brands but also study their
competitors. The authors further discuss the traps in the process of
positioning and the care that brands need to take. Finally they write about the
six steps to success in positioning. The authors say that companies need to
identify their current position, the position they want to own, identifying the
weak competitor to be outnumbered, analysing the financial strength, being
consistent in the positioning and finally analysing if the company actually
matches the position taken. (Ries, Trout, 2005).
Martin Lindstrom in his book, “ Brand Sense”, writes about building powerful
brands through the five dimensions that are based upon the sensory model;
touch, sight, sound, smell and taste. Lindstrom describes with examples and
cases how these help brands establish themselves and create a unique
position in the market. It can be observed that of the five dimensions
mentioned by Lindstrom; touch, taste, sight and smell are the dominant
dimensions that newspaper brands appeal to while targeting their readers. It
is observed that readers of a particular brand of newspaper are attracted to
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Ph.D. Thesis of Mr. Rahul Shiledar
the font the brand uses, its masthead and cartoons. This relates to the ‘sight
dimension’ mentioned by Lindstrom. (Lindstrom, 2005).
The touch of the newsprint and its smell are other important aspects that
attract the reader to his or her brand. Taste of the brand would refer to the
quality of articles and news and the quality of visual elements. Every brand of
newspaper follows its peculiar style of writing along with exclusive writers who
write columns and articles in newspapers on a regular basis. The quality of
these articles can be referred to as taste of the readers, which the newspaper
brands try to optimally use to their benefit. The author further states that the
higher the number of sensory memories activated, the stronger the bonding
between brand and consumer.
Ramanujan Sridhar in his book, “One Land One Billion Minds”, offers the
readers insights on branding in India. In the chapter, ‘A very Good Paper but a
Very Bad Habit’, the author discusses about the newspaper Hindu as a
product and a brand. He says that one of the indicators of a brand’s strength
is how incomplete the consumer’s life is without the brand. He further says the
strong pillars of The Hindu as a brand are its technology and endurance. The
author further says that especially for a newspaper industry. Change is a
process and not an event. To sustain the leadership position in the market,
the author says that newspapers should adopt to change faster by predicting
the changing tastes and preferences of readers. The author further indicates
that when people speak about a brand they are most of the times referring to
its packaging, logo, the physical appearance, its look and feel and so on.
Hence Sridhar says the essence of the brand is its appearance. Thus he said
The Hindu focused on the packaging and physical appearance to start with,
by introducing a new layout a better navigation system and so on. The
changes in the physical appearance are the first indication that the brand is
changing. (Sridhar, 2007).
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Ph.D. Thesis of Mr. Rahul Shiledar
per the opinion of experts, The Times of India launched Mumbai Mirror to deal
with the competition from DNA and Hindustan Times, hence it would be
interesting to observe whether the same strategy will work in a smaller city for
a regional language newspaper or not.
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Ph.D. Thesis of Mr. Rahul Shiledar
there are a few newspaper and magazine owners who started publishing but
had to close down due to lack of advertiser’s response. The editors of some
local newspapers were happy about the response while one editor mentioned
about the stiff competition from big newspaper brands through their local
supplements.
(www.mumbainews.wordpress.com, 2008).
The year 2010 too has seen prominent newspaper brands in the country not
only innovating their products to woo readers, but also being in an expansion
mode to strengthen reach in their respective territories. Amid the launch of
national and local editions, interestingly, some of the newspapers came up
with hyper-local editions dedicated to particular areas, communities or
sections of the society. (Pandey, 2010). It must be noted that the trend of
publishing hyper local newspapers is increasing among the big brands.
Although small newspapers initiated the hyper local newspaper trend, the big
brands have entered the market with big financial back up thus making it
difficult for local brands to sell in the market.
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Ph.D. Thesis of Mr. Rahul Shiledar
32
Ph.D. Thesis of Mr. Rahul Shiledar
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33
Ph.D. Thesis of Mr. Rahul Shiledar
In the autobiographical book, “Jack Straight from the Gut” the author
describes a strategic vision that changed the way General Electric (GE) did its
business. The author states that he formulated the strategic vision of the
company such that the company would continue only in those businesses that
it had a number one or number two positions. It would buy only those
businesses that fit into its core structure and sell the rest of the businesses.
(Welch and Byrne 2001). This is very relevant as a strategy even in the
newspaper industry as the media organisations need to stay focused. The
researcher is of the opinion that the key word in this is focus. The right focus
delivers the desired results.
Dr. Philip Kotler in the book ‘Marketing Management’ has discussed the
buying decision process. Kotler says marketers have to go beyond the various
influences on buyers and develop an understanding of how consumers
actually make their buying decisions. He adds that marketers must specifically
identify who makes the buying decision, the types of buying decisions and the
steps in the buying process.
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Ph.D. Thesis of Mr. Rahul Shiledar
In regards to the habitual buying behaviour, the author points out that this is
found in cases where there is an absence of significant brand differences in
the same product category, the price is low and the buying is frequent. (Kotler,
2003).
It can be added that even if the brands fail to express their differentiation or if
the buyers perceive the brands without differentiation the brands could suffer.
Marketers in these cases find it effective to use price and promotion to
stimulate product trial, the author adds. Brand familiarity through constant
visibility makes the difference rather than brand conviction. If buyers keep
buying the same brand it is out of habit not loyalty, the author says.
Newspapers it can be observed fall in this category. Newspaper brands focus
mainly on low price subscriptions, frequency of usage is quite high that is
daily, price is very low; buyer involvement is very low and brands focus on
making the readers habituated through all-year subscriptions and not focusing
on brand conviction.
A research paper titled, “What works in Youth Media: Case Studies around
the world”, by International Youth Foundation, discusses various case studies
of youth engaging in the publishing and broadcasting business. The paper
describes how the youth is getting involved in the day to day activities of
35
Ph.D. Thesis of Mr. Rahul Shiledar
publishing and how these activities are generating interest among the
youngsters. The conclusion that can be drawn from these cases is that if the
media involves youth in a deeper level and makes the whole process more
engaging and interesting to them, they will accept the media. The cases are
from Mexico, China, United Kingdom, Zambia, Albania, Viet Nam and the
United States. (What Works Series, International Youth Foundation 2003).
A research paper titled, “The Strengths of Print for Brand and Corporate
Communication”, revealed that the readers of daily newspapers mainly want
to learn about current events and form opinions about social, political and
economic issues. It is also important for newspapers to focus on a particular
region. Older target groups also see daily newspapers as a source of
entertainment and a pleasant way to pass the time. (The Print Media
Academy of Heidelberger Druckmaschinen AG and the Faculty of Advertising
and Marketing Communication of Stuttgart Media University, 2008).
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Ph.D. Thesis of Mr. Rahul Shiledar
researcher is of the opinion that the authors imply two things from this. One,
the complete organisation should be ready to learn and accept new things to
implement change and two the change that the organisations want to
implement should not have short term goals, but goals that are driven with a
long term vision so that it helps the organisation sustain the success.
A case study on the newspaper, The Pioneer by Priya Sahai discusses what
went wrong with the newspaper. The case states that the strongest point of
the newspaper was its heritage, the editor and the content. The case also
states that the top mancigement was very liberal and gave a free hand to the
people working at Pioneer. However the problems started when the priorities
of the General Manager clashed with the editor. The editor then left and then
the content started deteriorating. Simultaneously the top management had
problems in their core business which further instigated the rumours about
whether the paper will survive. The case study reports that The Pioneer was
launched in Mumbai; however the year is not mentioned. The strategy was
low pricing which did not work as vendors did not want to sell a newspaper
with lesser margins and the readers did not want to buy a newspaper which
was priced just at one rupee. The Pioneer had to close down the Mumbai
edition within one year of its launch. (Sahai, 1998). It is interesting to note that
the low price strategy was not accepted by the readers before 1998 but now
the same low pricing strategy works. It should also be noted that just
delivering good content will not help the newspaper survive; the newspaper
has to be supported strongly by the top management to also see that there is
harmony among the people working there.
Jaya Wagle analyses the reasons behind the falling circulation and lack of
readers and advertisers interest towards The Asian Age. After discussions
with several experts from the industry the author comes to the conclusion that
there are three major reasons for the problems that The Asian Age is facing.
The first problem is the lack of focus, especially from the editorial department.
The newspaper aims to target the affluent class and youngsters but does not
deliver the content required by these classes. The second problem is with
37
Ph.D. Thesis of Mr. Rahul Shiledar
shoddy packaging. The author finds that the readers and advertisers find the
quality of printing and newsprint very poor compared to what it promises. The
third problem is the lack of a marketing strategy which should add revenues
and circulation of the newspaper. (Wagle, 1999). This clearly indicates that
consumers are going to reject a brand if the brand does not deliver what it
promises.
Jim Collins in his book, “Good to Great” discusses in great detail what
converts good companies into great companies. The author speaks about a
concept called as ‘Level 5’ leadership. He says the leaders at this level build
enduring greatness through a paradoxical blend of personal humility and
professional will. (Collins, 2001). This is indeed important for leaders that want
their company brands to grow beyond themselves. Leadership plays a
significant role in making or breaking brands. The leaders of today’s
organisations should be such that they should keep the organisational and
brand priorities above their professional priorities.
“Rupert Murdoch” is a biographical book about the untold story of the world’s
greatest media wizard. Neil Chenoweth in his book discusses in great detail
about three incidences that changed the world’s media industry. The author
describes Rupert Murdoch as the leader who has used every possible
strategy in the world to rule the world’s media industry. Murdoch, the author
says is the man who has changed everything. The author calls him a gambler
and that his gambles have shaped the media landscape. (Chenoweth, 2001).
The researcher finds this biography noteworthy due to certain reasons. One,
this biography is about the person who owns the world’s greatest media
conglomerate, second reason is that it discusses strategies of the leader, the
com petition’s actions and reactions and how Murdoch overcame them.
Ken Auletta in his book, “Backstory” discusses what happens inside the
newspaper industry of USA. Auletta in a chapter titled ‘New York’s tabloid
wars’ discusses how the leaders of the newspaper brand ‘Post’ are staying in
competition in spite of the huge losses they have been making over years just
due to the ego issues of the leaders. (Auletta, 2003). One interesting fact that
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Ph.D. Thesis of Mr. Rahul Shiledar
the researcher discovers is that the tabloid which is selling at least one lac
copies less (Post) than the leader (Daily News) is priced lesser than the
leader. The researcher finds this interesting because the competition of the
newspaper brands in India is currently mainly focused on the low pricing.
Al and Laura Ries in their book, “The Origin of Brands” suggest that while
launching a brand organisations should be able to devote ample of time to it
and be patient with success. They discuss about two theories where theory ‘A’
stands for airplane launch in which case the organisations give the brands
some time before they can take off, while the theory 'B’ stands for the rocket-
ship launch where the brands look for instant success. (Al and Laura Ries,
2004). The authors give the example of Microsoft which started in 1975 but its
growth started only from 1987. It is observed that most of the organisations
today are looking for instant success. The recent launch strategies of DNA,
Mumbai Mirror and Hindustan Times in Mumbai clearly indicate that all these
brands were aiming for instant success. The question to the author’s theory
though is what brands should do in this era of competition wherein customers
too want to be associated with successful brands and the competition is
intense.
Robert Greene and Joost Elffers in their book, “The 48 Laws of Power”
discusses 48 different strategies to come in power or stay in power. One of
the strategies discussed is in this book is, ‘keep others in suspended terror:
cultivate an air of unpredictability’. (Greene, Elffers, 2006). The reason the
researcher has chosen this strategy for discussion is because the researcher
finds this strategy being implemented by The Times Group during the launch
of Hindustan Times and DNA in Mumbai. While both the competitors of The
Times were unsure of how The Times of India would react to the new brands,
experts in the interviews admit that no one had expected that The Times
Group would launch a new newspaper brand. Although the strategies in this
book have examples of individuals from the past, the most of these rules can
be applied to the brands in today’s competitive world.
39
Ph.D. Thesis of Mr. Rahul Shiledar
W. Chan Kim and Renee Mauborgne in their book, “Blue Ocean Strategy”,
discuss the strategies of how to create uncontested marl<et space and make
the competition irrelevant. The authors discuss the concept of ‘Red O cean’
and ‘Blue Ocean’ strategies. The red ocean strategy signifies that the
competition within brands in this segment is mostly with the same set of rules
and each brand is competing to achieve the most from a specifically defined
market. The blue ocean strategy states that organisations should focus on
creating a new market where there is no competition at all. The authors
further describe the principles of formulation of the blue ocean strategy along
with the execution principles. (W. Chan Kim and Renee Mauborgne, 2005).
Tom Fenton in his book, “Bad News”, clearly states the problems in the
journalism of the US media industry. The author states that the media
organisations are not giving the people what they need. The quest is just for
higher ratings, the author says. He describes various incidences from the US
politics where the news either went unreported or covered without the
importance it deserved. He says due to this the journalism is losing credibility
and that the quality. (Fenton, 2005). As various experts have mentioned, the
content is the most crucial factor in the media industry. If the content is not
worthy the brand is bound to lose the market share. In this case the whole
media industry seems to be losing the credibility due to loss in quality content.
'1 h i O - T O e
Jayanta Sengupta in his book “Wraparound” offers a set of 12 golden rules in
providing a great brand experience. The summary of these rules is that the
companies should be brand driven and aim for giving a brand experience on
all touch points. The author also suggests that the brand experience shoul^l^^P.^::
be a consistent process. (Sengupta, 2006).
An article that appeared in The Economist titled, “Who killed the Newspaper"^^^^s4[i^^
discusses about the falling circulation figures of newspapers in various
developed countries like America, Western Europe, Latin America, Australia
and New Zealand. The article notes that Philip Meyer in his book “The
Vanishing Newspaper” calculates that the first quarter of 2043 will be the
40
Ph.D. Thesis of Mr. Rahul Shiledar
moment when newsprint dies in America. The article points out that people
are switching over to the online medium very fast and this has been the
reason why circulations of newspapers in these developed countries have
been falling so rapidly. The future is also shifting towards independent
journalism, bloggers and citizen journalists, the article concludes. (The
Economist, 2006). This article also makes a mention of another article, “More
media, less news” , which supports this also mentions that the revenues
towards the internet editions of newspapers are increasing very rapidly
compared to the lack of growth in their print editions. The article notes that for
the first three months of 2006, the Newspaper Association of America
announced that advertising for all the country's newspaper websites grew by
35% from the same period in 2005, to a total of $613m. But to put that in
perspective, print and online ads together grew by only 1.8%, to $11 billion,
because print advertising was flat. (The Economist, 2006).
An article in The New York Times titled, “Shrinking ad revenue realigns U.S.
newspaper industry” states the reasons behind the shrinking ad revenues and
the impact of the same in terms of increasing unemployment. The article also
points that the newspaper executives and analysts say that it could take 5 to
10 years for the industry's finances to stabilize and that many of the papers
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Ph.D. Thesis of Mr. Rahul Shiledar
that survive will be smaller and will practice less ambitious journalism. (The
New York Times, Perez-Pena, 2008).
Greenslade who writes a blog for the UK based newspaper Guardian, in his
article, “Now India’s papers suffer cut backs”, referred to an article from
Business Standard, India stating that various newspapers and publishing
houses in India are opting for cutting on employment along with reducing the
number of pages printed in their newspapers every day. He states that the
main reasons for this were the rising newsprint prices along with reduced
advertising budgets by the advertisers. (Greenslade, 2008). It may be noted
that this was also the time when the Indian economy was going through
recession and unemployment had increased across all sectors.
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Ph.D. Thesis of Mr. Rahul Shiledar
Jack Shafer in an article, “How Newspapers Tried to Invent the W eb” states
that the newspaper organisations in the US have always tried to diversify into
other media like radio, television, fax editions and then videotex. He makes
notes from Pablo J. Boczkowski's 2004 book, ‘Digitizing the News: Innovation
in Online Newspapers’. According to Boczkowski, newspapers didn't rush into
videotex because they were visionaries in a hurry to invent the future but
because they were "reactive, defensive, and pragmatic" about their mature,
lucrative business. After the advent of Internet, publishers adored the
proprietary online services because they locked down the user experience to
the newspaper's benefit, the article said, (www.slate.com, 2009).
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Ph.D. Thesis of Mr. Rahul Shiledar
challenges that the industry faced. The first challenge that Dhariwal identified
was the challenge of readership and stressed on the need to increase
readership. Also, in the metros, youth readership is not growing. To grow
readership, the print industry would have to customize the product according
to the needs of the consumers, he said. The second challenge that Dhariwal
pointed out was managing volatility. He said factors such as the newsprint
prices created volatility and hence the newspaper organizations need to
manage money costs prudently. The third challenge today is to check
advertisers influence on edit. Finally the challenge, probably one of the most
pertinent in the eminent future, is newer media forms.
(www.exchange4medla.com, 2010).
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Ph.D. Thesis of Mr. Rahul Shiledar
“Waking the Giant” discusses the concept of revitalising the mature brands. In
this book the author first says that the companies should take every possible
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Ph.D. Thesis of Mr. Rahul Shiledar
effort to stop the brand from maturing. Then he discusses the revitalisation
strategies. Some of the strategies discussed are delivering delights, involving
the master brand that is the most accepted brand to get the market share
back, the various archetypes and choosing the archetype that most suits the
brand vision, using symbolism and engaging the customer with the brand. (Dr
SteidI, 2011). The author here is offering various strategies for the
revitalisation of a brand and suggests that organisations should use the one
that is most applicable to brands. It can be noted that the mature brands in the
newspaper industry, like Free Press Journal for example, which are already
into the decline stage can think of such strategies for their brands.
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