INNOVATIONS IN MARKETING STRATEGIES OF

NEWS PAPER INDUSTRY IN INDIA - A CASE

STUDY OF TIMES OF INDIA GROUP
Dr M. K. Sridhar t
A. R. Sainath t

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

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

t Dr M. K. Sridhar is a Reader at Canara Bank School

NEWSPAPERS AS PRODUCTS
OfManagement P.G. Department Of Newspaper as a product enjoys unique features,
Management, Bangalore University, Bangalore.
which no other Droduct has. It is Durchased and

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 Innovations in Marketing Strategies of News Paper Industry in India

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

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 Innovations in Marketing Strategies of News Paper lndustly in India

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

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 Innovations in Marketing Strategies of News Paper Industry in India

INNOVATIONS IN MARKETING STRATEGIES since some of the main commodity

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

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 Innovations in Marketing Strategies of News Paper Industry in India

supplements or few pages of business objective of publishing newspapers, journals,

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

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 Innovations in Marketing Strategies of News Paper Industry in India

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

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 Innovations in Marketing Strategies of News Paper Industry in India

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

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 Innovations in Marketing Strategies of News Paper Industry in India

Data Analysis: were having annual household income of less

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

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

NOTE : Figures in brackets are percentages

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

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 Innovations in Marketing Strategies of News Paper Industry in India

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

Extent of change

Nature of change I No change I Minor change I Major change

~
I Mean Score

Size 14 244 624 2.56

layout 40 384 336 2.20
Content 129 344 132 1.76
Supplements 112 348 174 1.84

Mean Score I I 2.09 I

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

Extent of change

Nature of change No change Minor change Major change Mean Score

Size 22 100 246 2.39

layout 28 186 99 2.03

Content 63 150 48 1.69

Supplements 53 156 69 1.81

Mean Score 1.98

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

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 Innovations in Marketing Strategies of News Paper Industry in India

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

Strongly
disagree

33(9.59)
17(4.94)

1O( 2.91)
29(8.43)

22(6.39)
b. Not improved 56( 16.28) 97( 28.20) 71(20.64) 94(27.32) 26(7.56)
4. Change in
supplements is

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

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

The above table reveals that more than 75% of disagree or strongly disagree that it is easy to
the readers agree or strongly agree that the handle and 17Y0disagree or strongly disagree to
change in size is easy to handle whereas 64% the means to cut cost. More percentage of
agree or strongly agree that it is a means to cut readers agree or strongly agree to the change in
cost. It can also be observed that more layout, content and supplement than the
percentage of readers (19.19%)are undecided percentage of readers who disagree or strongly
in case of means to cut cost than 3.78% in case disagree
of easy to handle. Nearly 20% of the readers

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 Innovations in Marketing Strategies of News Paper Industry in India

TABLE 5
DISTRIBUTION OF READERS OF ECONOMIC TIMES
BASEDONRESPONSETOCHANGES
~~

Nature of change Strongly Agree Undecided Disagree Strongly

agree disagree

1. Change in size is

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

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

a. Impressive 33( 21.43) 69(44.81) I 16(10.39) I 25(16.23) I ll(7.14)

b. Difficult to read 16( 10.39) 32(20.78) I 24(15.58) I 54(35.06) I ZE(18.19)
3. Content has

a. Improved

b. Not improved
23( 14.94)
19( 12.34)
78(50.65)
28( 18.1 8)
1 26(16.88)
40(25.97)
1 13(8.44)
51(33.12)
1 14(9.09)
16( 10.39)
4. Change in
supplements is

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

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

NOTE : Figures in brackets ore percentages.

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

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 Innovations in Marketing Strategies of News Paper Industry in India

TABLE 6 With regard to Economic Times also, similar

trend is evident. The mean scores .in case of
MEAN SCORES OF READERS RESPONSE
change of size, easy to handle is 3.60 and
TO CHANGES
means to cut cost is 2.55. The mean scores of
Nature of change impressive change of layout, improved content
and contemporariness of supplements are more
1. Change in sire is

a. Easy to handle
I l l than that of difficult to read, no improvement in
content and irrelevant supplements.

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

statements in case of Times of India are more

I
~

2. Change in layout is than that of all negative statements. Same is

a. impressive 3.65 3.51 the case with the readers of Economic Times
also. On comparison between Times of India and
b. Difficult to read 3.03 3.30
Economic Times, it is evident that the mean
3. Content has scores of Times of India are more than that of
a. Improved 3.49 3.53 Economic Times in case of positive statements.
1
I I
This is not so with negative statements.
b. Not improved 2.02
4. Change in rupplemenfs is DISCUSSION ON FINDINGS
a. Contemporary 3.6 The entire analysis of the primary data furnished
b. irrelevant 3.01 above brings out one important issue to the fore.
That is the perception of the readers to the
Average mean score of 3.63 recent marketing strategy of pruning the size of
positive statements
the newspaper. No doubt, the reader is getting
Average meon score of 2.79 less quantity of newspaper but still they have
negative statements
welcomed the same in a positive way. This
must be due to not only to the innovation but
The above table brings out that the mean score also proper packaging and communication of the
of easy to handle is more than that of means to change. This is evident from the way the
cut cost in case of Times of India. Same is the publishers of Times of India group
case with impressiveness of change of layout, communicated that the pruning is in confirmity
improvement of content and contemporariness of with the international practice. If this is the extent
changes in supplements. In other words, the of welcome in the initial stages, it will improve
readers of Times of India have welcomed the and increase in the days to come and the
changes more positively. readers would be habituated to these changes.

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 Innovations in Marketing Strategies of News Paper Industry in India

CONCLUSION would be more positive. The case study of

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

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 Innovations in Marketing Strategies of News Paper Industry in India

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MANAGEMENT & LABOUR STUDIES 12541 Vol. 28 No. 3,August 2003

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