Report on

HINDUSTAN TIMES

Submitted By: Rajna Rajan 35 Sanjay Kumar- 36 MMM- B

CONTENTS: 1. NAMEOF COMPANY. 2. CONCEPT. 3. SECTOR SYNOPSIS. 4. COMPANY PROFILE. 5. PRESENCE & POSITION. 6. MARKETING STRATEGY. 7. PROMOTIONAL STRATEGY. 8. PRICING STRATEGY. 9. PRESENT STATUS. 10. HT NEXT. 11. LUXURY CONFERENCE. 10. LEADERSHIP SUMMIT.

Name of Company: HINDUSTAN TIMES.

Concept:
Inaugurated by Mahatma Gandhi in 1924, HT MEDIA LIMITED has grown to become one of India's largest media companies today. It was found by Master Sunder Singh Lyallpuri, founder-father of the Akali Movement and the Shiromani Akali Dal in Punjab. It has its roots in the independence movement of the first half of the twentieth century.

Pt Madan Mohan Malayia was a very good friend of Master Lyallpuri. He had suggested to Master Lyalpuri that Akali should start one of their own English newspaper so that the Akal agenda and voice could reach every nook and corner of India.

It was edited at times by many important people in India, including Devdas Gandhi (the son of Mahatma Gandhi) and Khushwant Singh. The current editor of the newspaper is Vir Sanghvi.

Sector Synopsis: Media:

'Media' is the medium of carrying information, education and entertainment to the masses. It is an easier and efficient means of communication which plays a key role in the overall development of an economy. In an era where knowledge and facts are the tools for economic, political and cultural exchange, presence of the strong and constructive media in a country is important for catering to the diverse needs of individuals, society as a whole, small and large business and production houses, various research

organizations, private sectors as well as the public sectors. Media is a conscience-keeper of the nation and has many tasks to perform in our dayto-day lives. It helps the Government to achieve various socioeconomic and political goals; educate urban and rural masses; instill a sense of responsibility among the people; as well as provide justice to the needy. It largely consists of print media like newspapers, magazines, journals and other publications, etc. as well as electronic media like radio, television, internet, etc. With the changing scenario of the world, it has acquired the status of an industry. In India, the media and entertainment industry is undergoing remarkable change and is one of the fastest growing sectors. The main factors responsible for this are rising per capita/ national income, high economic growth and strong macro-economic fundamentals, democratic set up; good governance as well as law and order position in the country. Specifically, spectacular growth of the television industry, new formats for film production and distribution, privatization and growth of radio, gradually liberalizing attitude of Government towards the sector, easier access to and for international companies as well as advent of digital communication and its technological innovations are the other attributes of the growth of the sector. The media industry plays an important role in creating people's awareness about national policies and programmes by providing information and education, besides creating healthy business environment in the country. Thus, it helps people to be active partners in the nation-building endeavor.

Overview of newspaper scenario:

In India newspaper publication began in Calcutta in the 1780's and by 1800 there were several dozen publications in English, with the numbers increasing periodically. Now, the progress has been so much that every major newspaper from India has an internet edition. In India the print and the electronic media are both very active. It was reported that in 1993, there were approximately 4000 newspapers being

published in the country. Now the figure has increased to approximately 5,525 newspapers. Each week, National Readership Survey (NRS) says, the print news media reaches 242 million readers. These enormous numbers, the survey suggests, represent a chain of growth, driven both by expanding literacy and improved living standards. The publications in the country are in Hindi, English and all vernacular languages. There is also a good range of weekly, fortnightly and monthly magazines in the country which cover a whole range of national as well as international issues in depth.

Top players:
Newspapers: The Times of India Hindustan Times The Hindu Indian Express Malayalam Manorama. Dainik Bhaskar. Telegraph. Mid Day Mumbai. Deccan Herald. The Economic Times.

PRINT MEDIA:

It is true that the age of electronic media has started; however printed information is and remains omnipresent. The market for print products offers more variety than ever. Usually, printed products are categorized into commercial printing and periodicals. This classification differentiates printed matter with regard to its frequency of publication. Commercial printing refers to print products that are produced occasionally (brochures, catalogs, leaflets, business cards). Periodicals are printed matters that appear periodically (newspapers, journals, magazines). Another way of categorizing printed products is by splitting them into special groups. These individual groups are: 1. BOOKS: Gutenbergs work and his invention, printing with movabe lead types, in the middle of the fifteenth century triggered a revolution in the book production. A much greater proportion of the population got the chance to acquire education, culture and information than had been possible with hand written books. 2. MAGAZINES: The range of magazines consists mainly of periodicals, including trade magazines, journals and illustrated magazines. Magazines usually have a shorter life span. This is due to the content and it is the major characteristic of the periodicals. 3. NEWSPAPERS:

A newspaper is a written publication containing news, information and advertising, usually printed on low-cost paper called newsprint. Generalinterest newspapers often feature articles on political events, crime, business, art/entertainment, society and sports. Most traditional papers also feature an editorial page containing columns which express the personal opinions of writers. Supplementary sections may contain advertising, comics, coupons, and other printed media. Newspapers usually focus on one particular geographic area where most of their readers live. The newspaper is still one of the most significant mass media today. Most newspapers are produced daily and have a high circulation. The two most important categories of newspapers are daily papers and weekly papers. 4. BROCHURES: Apart from the advertising insert that comes in the newspapers and magazines, there is a large market for leaflets and product descriptions. Such printed matter is referred to as brochures. Brochures are commercial print work. The print volume of brochures is low. They are mainly used to describe something particular (e.g. company, product). 5. OTHER PRINTED MEDIA: Packaging represents another important group of printed products. In the first place, packaging is used to protect the actual goods inside but it also makes for an attractive presentation. At the same time packaging is also printed on to provide information about the package content.

SWOT Analysis: Strength:

The flagship publication of the Group has editions from Delhi, Lucknow, Patna and Kolkata, thus, dominating the Northern, Eastern and Central regions of the country. Its New Delhi edition continues to be the single largest English daily edition in the country with a circulation of over 9.2 lakhs. Hindustan Times has set many a standard for its competitors. It is the first smart-age newspaper in India to evolve into a new international size, sleeker and smarter, which ensures enhanced ease of reading and convenient handling. In its endeavor to provide its readers with greater value, it has revamped its existing supplements and added new ones to its portfolio, offering a daily supplement catering to specific target audiences. In a major incentive for the advertisers as well as the readers, Hindustan Times has entered into strategic alliances with The Indian Express, Business Standard, Mid-Day and Deccan Chronicle. These alliances, along with its strong presence in North India, make it one of the most formidable media players.

Weakness:
Mumbai edition of Hindustan Times will suck most of the companys investments and profitability for the next two years will be adversely affected. The Mumbai edition is expected to incur losses for a couple of years. In Mumbai, HTM faces immense competition from the established The Times of India and Indian Express, which also have greater financial resources. In addition, other competitors entering the Mumbai market (DNA) will further extend HTMs timeframe to make money.

Opportunity:

Newspapers only reach 35% of the adult population, of which 65% is literate, there is significant room for growth.

The sheer number of publications has created fierce competition which has kept prices low which in turn has caused publishers to depend more on advertising revenues.

Advertising revenues in 2006 are predicted to see a 15 to 20% spike. In 2005, 48% of India's total advertising market went to newspapers, 7% more than went to television.

Circulation could rise by a whopping 14% riding the back of the advertising boom.

Threats:

In Mumbai, HTM faces immense competition from the established The Times of India and Indian Express. In addition, other competitors have entered the Mumbai market like DNA.

Company Profile:
This Delhi-based English newspaper is part of the KK Birla group and is managed by Shobhana Bhartia, granddaughter of GD Birla. It is owned by HT Media Ltd. The KK Birla group at present owns 69 per cent stake in HT Media, currently valued at Rs 834 crore. HT Media reported annual revenue of $186 million for the year 2006. The Company reported a 31% increase in revenues for the FY'07 from Rs 385 crores to Rs 505 crores. Non-annualized EPS was Rs 12.28.

Mergers & Acquisitions:

The first signs of co-operation between Delhis arch rivals Hindustan Times and The Times of India were seen in Mumbai. When The Hindustan Times was launched in Mumbai, The Times of India group lent its distribution infrastructure to the newspaper. The Birla-owned newspaper, in turn, printed Mumbai Mirror for The Times of India at its own printing facilities. Hindustan Times tied up with Amar Ujala for cross-selling space in the two papers. Hindustan Times Media group has bought social networking site Desimartini.com, through its online subsidiary Firefly eVentures.

Chairman -

Dr K K Birla

Director

Mr. Y C Deweshwar

Vice Chairperson and Editorial Director

Ms Shobhana Bhartia

Chief Executive Officer - Mr. Rajiv Verma

Head Office:
Hindustan Times House 18-20, Kasturba Gandhi Marg

New Delhi Delhi 110001 Tel: 011-66561234 Fax: 011-23704600 Email: [email protected] Internet: http://www.hindustantimes.com

Board of Directors:
1. 2. 3. 4. 5. 6. 7. 8. 9. Dr. K.K.Birla. Ms. Shobhana Bhartia. Mr. Y.C.Deveshwar. Mr. K.N. Memani. Mr. Roger Greville. Mr. Ajay Relan. Mr. N.K. Singh. Mr. Priyavrat Bhartia. Mr. Shamit Bhartia.

Other Publications of HTM:

1. 2. 3. 4. Mint - English business Daily. Hindustan - Hindi Daily. Nandan - Monthly children's magazine. Kadambani Monthly literary magazine.

The media group also owns a radio channel known as FEVER

Marketing Strategy:
HT adopted a two-stage process. They first focused on building the brand in a new market by targeting the discerning English reader. Then they focused

on building the circulation. They concentrated specifically on households that subscribe to English newspapers. They built quality circulation instead of just increasing sales numbers.

Promotional Strategy:
HT used Let there be light ad campaign to spread the message of its superior content. The positioning is that HT as a brand is a thoughtstimulating product. The TV commercial was made such that it showed HT readers were being distinguished from a crowd of blindfolded people.

Pricing Strategy:

The sales and delivery model that lasted for so many decades are undergoing a radical change. Newspapers traditionally had `newsstand' sales from where a fairly large proportion of their readers picked up their daily fix. The remaining sales were made through `hawkers' who delivered the newspaper home and collected the money at the end of the month. Subscription sales for daily newspapers were always a very small proportion of the total sales. The Hindustan Times has been touting a scheme where a newspaper has a cover price of Rs 2.50 but actually costs just Re1 per day. A reader who goes in for the cash back scheme on an advance payment of an annual subscription gets a glossy booklet with twelve coupons affixed with a fancy hologram. A coupon is given at the end of every month to the `hawker' who delivers the newspaper home. This gives a feeling of security to the reader who is skeptical about a one-time advance payment.

Present Status:
The flagship publication of the Group has editions from Delhi, Lucknow, Patna and Kolkata, thus, dominating the Northern, Eastern and Central regions of the country. It is printed out of eleven centers including Bhopal, Chandigarh, Delhi, Jaipur, Nagpur, Kolkata, Lucknow, Bhagalpur, Patna, Ranchi and Raipur, reaching closer to the consumers. Its New Delhi edition continues to be the single largest English daily edition in the country with a circulation of over 9.2 lakhs, while maintaining its leadership status in Delhi as the largest circulated English daily at 5.5 lakhs. In its endeavor to provide its readers with greater value, it has revamped its existing supplements and added new ones to its portfolio, offering a daily supplement catering to specific target audiences. Supplements like HT Estates (on real estate and interiors) are the first of their kind in their respective categories.

HT NEXT:

Hindustan Times rolled out its youth edition - HT NEXT. It is the first ever Newspaper launched especially for the youth. Loaded with new, views and interesting trivia from around the world, the all-color edition of Hindustan Times will is available at a price of Rs. 1.50 at stands across Delhi and NCR. Targeted purely at young readers, HT Next promises to be a reader friendly, comprehensive and holistic daily with substance and style.

The first Hindustan Times Luxury Conference, co-sponsored by the Ministry of Commerce & Industry, Government of India, was held on 2006 in Mumbai. Hindustan Times, one of Indias leading and most respected English dailies, has always prided itself in spotting emerging trends and the Hindustan Times Luxury Conference had been initiated to aid the development of the luxury industry in India. The Federation of Indian Chambers of Commerce and Industry (FICCI), Indias premier trade body, was a partner in this endeavour.

Overview:
In November 2003, Hindustan Times launched the Leadership Summit - an annual conference that seeks to enhance the level of discussion on pressing issues, encourage interaction among leaders in various areas and present international quality thought platforms, as part of its mission to contribute to thought leadership and evolve action plans for a secure and better future.

Relevance:
The Hindustan Times Leadership Summit is a platform for eminent leaders to interact, share their opinions and views on important issues of concern and arrive at solutions. The conference aims to understand the world's views on social, economic and political issues. It tries to gain insights on India's role in the world and its importance in the global growth scenario. The Hindustan Leadership Summit invites international business leaders, strategists along with renowned personalities from India and abroad .