Pest Analysis of Advertising Industry India

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
INTRODUCTION
S. V. Institute of Management
Advertising
What is Advertising?
Advertising is a non-personal form of promotion that is delivered through selected
media outlets that, under most circumstances, require the marketer to pay for
message placement.
Advertising is, in fact, the most prominent and powerful medium in the present
commercial world. It creates an entire world view, shaping our attitude and
beliefs. Advertisements permeate every aspect of life and most of us are hardly
aware of it. it largely depend on how an individual bring works and so utmost care
is taken to exploit the emotions that play an important role in establishing a firm
memory of an advertisement and predisposing the consumers to buy the brand
that is being advertised. Over a period of time, advertising has been undergoing
morphing changes slowly and steadily with multi-facet approach.
Advertising has long been viewed as a method of mass promotion in that a single
message can reach a large number of people. But, this mass promotion approach
presents problems since many exposed to an advertising message may not be
within the marketers target market, and thus, may be an inefficient use of
promotional funds. However, this is changing as new advertising technologies
and the emergence of new media outlets offer more options for targeted
advertising.
Advertising also has a history of being considered a one-way form of marketing
communication where the message receiver (i.e., target market) is not in position
to immediately respond to the message (e.g., seek more information). This too is
changing. For example, in the next few years technologies will be readily
available to enable a television viewer to click a button to request more details on
a product seen on their favorite TV program. In fact, it is expected that over the
next 10-20 years advertising will move away from a one-way communication
model and become one that is highly interactive.
Another characteristic that may change as advertising evolves is the view that
advertising does not stimulate immediate demand for the product advertised. That
is, customers cannot quickly purchase a product they see advertised. But as more
media outlets allow customers to interact with the messages being delivered the
ability of advertising to quickly stimulate demand will improve.
Advertising Features
By looking into the meaning and definition of advertising we can sum up the
following features of advertising.
Non- personal presentation of message: In advertising there is no face-to-face
or direct contact with the customers; it is directed to the prospective buyers in
general.
Paid form of communication: In advertising the manufacturer communicates
with prospective customers through different media like, newspapers, hoardings,
magazines, radio, television etc. He has to pay certain amount for using some
space or time in those media.
Promotion of product, service or idea: Advertisement contains any message
regarding any particular product, service or ever an idea. It makes people aware
about the product and induces them to buy it.
Sponsor is always identified The identity of the manufacturer, the trader or the
service provider who issues advertisement is always disclosed.
Communicated through some media- Advertisements are always
communicated through use of certain media. It is not necessary that there will be
just one medium. All the media may also be used.
Types of Advertising
If you ask most people what is meant by type of advertising, invariably they
will respond by defining it in terms of how it is delivered (e.g., television ad,
radio ad, etc.). But in marketing, type of advertising refers to the primary focus
of the message being sent and falls into one of the following four categories:
Product-Oriented Advertising
Most advertising spending is directed toward the promotion of a specific good,
service or idea, what we have collectively labeled as an organizations product. In
most cases the goal of product advertising is to clearly promote a specific product
to a targeted audience. Marketers can accomplish this in several ways from a
low-key approach that simply provides basic information about a product
(informative advertising) to blatant appeals that try to convince customers to
purchase a product (persuasive advertising) that may include direct comparisons
between the marketers product and its competitors offerings (comparative
advertising).
However, sometimes marketers intentionally produce product advertising where
the target audience cannot readily see a connection to a specific product.
Marketers of new products may follow this teaser approach in advance of a new
product introduction to prepare the market for the product. For instance, one
week before the launch of a new product a marketer may air a television
advertisement proclaiming After next week the world will never be the same
but do so without any mention of a product or even the company behind the ad.
The goal is to create curiosity in the market and interest when the product is
launched.
Image Advertising
Image advertising is undertaken primarily to enhance an organizations perceived
importance to a target market. Image advertising does not focus on specific
products as much as it presents what an organization has to offer. In these types
of ads, if products are mentioned it is within the context of what we do rather
than a message touting the benefits of a specific product. Image advertising is
often used in situations where an organization needs to educate the targeted
audience on some issue. For instance, image advertising may be used in
situations where a merger has occurred between two companies and the newly
formed company has taken on a new name, or if a company has received recent
negative publicity and the company wants to let the market know that they are
about much more than this one issue.
Advocacy Advertising
Organizations also use advertising to send a message intended to influence a
targeted audience. In most cases there is an underlying benefit sought by an
organization when they engage in advocacy advertising. For instance, an
organization may take a stand on a political issue which they feel could negatively
impact the organization and will target advertisements to voice their position on
the issue.
Public Service Advertising
In some countries, not-for-profit organizations are permitted to run advertisements
through certain media outlets free-of-charge if the message contained in the ad
concerns an issue viewed as for the greater good of society. For instance, ads
directed at social causes, such as teen-age smoking, illegal drug use and mental
illness, may run on television, radio and other media without cost to organizations
sponsoring the advertisement.
Objectives of Advertising
You have learnt that the main purpose of advertising is to communicate massage
or information to the customers. But while communicating such message or
information it also serves purposes beneficial for the sponsor or advertiser. Let us
look into the various objectives of advertising.
i. To educate customers
Can you remember the advertisement of Dandi Namak on television? In this
advertisement it is said that Dandi Namak is good for health as it contains Iodine.
This message educates you that iodine is good for health and Dandi Namak
contains iodine.
ii. To create demand for new product
You read in newspaper that a new type of pen called Gel pen is introduced in the
market, which is very economical and convenient in writing. This motivates you
to buy the said pen. Similarly, many students like you shall also buy gel pen after
coming to know about it through advertisement. This will create a demand for the
new product launched in the market.
iii. To retain existing customers
You might remember that Nirma washing powder was a very popular detergent.
But, after Wheel powder came to the market the sale of Nirma suddenly
decreased. Then the manufacturers of Nirma improved the product and advertised
about the same in different media. After knowing this the persons who were
earlier using Nirma did not switch over to Wheel and continued using Nirma. In
this manner Nirma sustained its existing demand. Thus, advertising helps the
manufacturers not only to create a demand for a new product but also to retain the
existing customers.
iv. To increase sales
We have learnt that advertising creates demands for new products and sustains the
demand of old one. Thus, with increase in demand, the sale of the product also
increases.
v. To assist salesman
In most advertisements the salient features of a product, its qualities and its uses
are expressed in detail. This assists a salesman to sell the product quickly without
spending time in explaining and conniving the customer.
Institutions involved in field of Advertising Management
The concept of markets and consumer will be use interchangeably to refer to any
classification of individuals, organization, or groups the advertiser is attempting to
reach or get a message to
Figure 1.1 Markets and consumer behavior
Facilitating
Institution
Control
Institutions
Advertising
Agency
Government
Advertiser
Media
Competition
Research
Supplier
Markets and consumer behaviour
Figure 1.2 Media of Advertising
Print Media
Print media is a very commonly used medium of advertising by businessman. It
includes advertising through newspaper, magazines, journals, etc. and is also
called press advertising.
Newspapers
You must have read Newspapers. In our country newspapers are published in
English, Hindi and in other regional languages. These are the sources of news,
opinions and current events. In addition, Newspapers are also a very common
medium of advertising. The advertiser communicates his message through
newspaper which reaches to crores of people.
Advantages
i. Newspapers normally have wide circulation and a single advertisement in
the newspaper can quickly reach to a large number of people.
ii. The cost of advertising is relatively low because of wide publication.
iii. Generally newspapers are published daily. Thus, the same advertisement
can be repeated frequently and remind reader everyday.
iv. The matter of advertisement can be given to newspapers at a very short
notice. Even last minute changes in the content is also possible. This makes
advertising quite flexible.
v. Newspapers are published from different regions and in different languages.
Hence, they provide greater choice to advertisers to approach the desired
market, region and readers through local or regional language
Limitations
i. Newspapers are read soon after they are received and then are kept generally
in some corner of the houses. After 24 hours we get a fresh newspaper and this
makes the life of the newspaper short.
ii. People read newspapers mainly for news and pay casual attention to
advertisement.
iii. Illiterate persons can not read and thus, newspapers advertising does not
benefit them.
Periodicals
Periodicals are publications which come out regularly but not on a daily basis.
These may be published on a weekly, fortnightly, monthly, bimonthly,
quarterly or even yearly basis. For example you must have come across
magazines and journals like Onlooker, India Today, Frontline, Yojana, Swagat,
Femina, etc. published regularly in English, Grihasobha, Nandan and
Champak in Hindi. Similarly there are also periodicals in Hindi and other
regional languages. All these periodicals have a large number of readers and
thus, advertisements published in them reach a number of people.
Advantages
i. Periodicals have a much longer life than newspapers. These are preserved
for a long period to be referred in future or read at leisure or read again,
whenever required.
ii. Periodicals have a selected readership and so advertisers can know about
their target customers and accordingly selective advertisements are given. For
example, in a periodical like Femina, which is a magazine for women,
advertisements related to products to be used only by males are rarely
published. However, manufacturers of products and services to be used by
females prefer to give advertisement in this magazine.
Limitations
i. Advertising in periodicals are costlier.
ii. The number of people to whom the advertisements reach are small in
comparison to newspapers.
iii. The advertisement materials are given much in advance, hence last minute
change is not possible. This reduces flexibility.
Electronic Media
This is a very popular form of advertising in the modern day marketing. This
includes Radio, Television and Internet. Let us look into detail about these.
Radio Advertising
All of us are aware about a radio and must have heard advertisements for various
products in it. In radio there are short breaks during transmission of any
programme which is filled by advertisements of products and services. There are

also popular programmes sponsored by advertisers. (One of the longest run
programme in Radio was a sponsored programme started as Binaca Geetmala
and later renamed as Cibaca Geetmala. It was sponsored by Hindustan
Ciba-Geigy Limited for its products like toothpastes, toothpowders and tooth
brushes and it continued for a period of 30 years on a weekly basis).
Advantages
(i) It is more effective as people hear it on a regular basis.
(ii) It is also useful to illiterates, who can not read and write.
(iii) There are places where newspapers reading may not possible, but you can
hear radio. For example, you can hear radio while traveling on road or working at
home; but you can not read newspaper. Similarly, while driving you can hear a
radio but cannot read a newspaper.
Limitations
(i) A regular listener may remember what he has heard. But, occasional listeners
tend to forget what they have heard in Radio.
(ii) The message that any advertisement wants to communicate may not be proper
as there is no chance to hear it again immediately. There may be some other
disturbances that distort communication.
(iii) In comparison to Television, Radio is less effective as it lacks visual impact.
Television Advertising
With rapid growth of information technology and electronic media, television has
topped the list among the media of advertising. TV has the most effective impact
as it appeals to both eye and the ear. Products can be shown, their uses can be
demonstrated and their utilities can be told over television. Just like radio,
advertisements are shown in TV during short breaks and there are also sponsored
programmes by advertisers.
Advantages
(i) It is most effective as it has an audio-visual impact.
(ii) With catchy slogans, song and dance sequences, famous personalities
exhibiting products, TV advertising has a lasting impact. For example, who can
forget Aamir Khan saying Thanda Matlab Cocacola or Sachin Tendulkar in
Pepsi advertisement.
(iii) With varieties of channels and programmes advertisers have a lot of choice to
select the channel and time to advertise.
(iv) With regional channels coming up any person even illiterates can watch the
advertisements and understood it by seeing and hearing.
Limitations
(i) TV advertisements are usually expensive to prepare as well as to telecast.
Advertising
10
(ii) With almost every manufacturer trying to communicate their message through
TV advertising the impact among the viewers is also reducing. Now-a-days
people are switching on channels whenever there is a commercial break.
Internet
Are you aware about internet? Infact it is the latest method of communication and
gathering information. If you have a computer and with an access to internet you
can have information from all over the world within a fraction of second. Through
internet you can go to the website of any manufacturer or service provider and
gather information. Sometimes when you do not have website addresses you take
help of search engines or portals. In almost all the search engines or portals
different manufactures or service providers advertise their products.
Advantages
(i) Information from all over the world is made available at the doorsteps.
(ii) User can see the advertisement at their own time and as per their requirement.
Limitations
(i) It is not accessible without a computer.
(ii) It is not very suitable for general public.
(iii) It is not suitable for illeterate and those having no knowledge about the
operation of Internet.
Other Media
All the media of advertising discussed above are mostly used by consumers while
they are at home or inside any room, except radio and newspapers or magazines
to some extent. Moreover in all these media, the consumer has also to spend some
money to access the advertisement. However, there are other media available,
where the consumer has to spend nothing and he can see such advertisements
while moving outside. Some of such advertising are hoardings, posters, vehicular
displays, gift items, etc.
Hoardings
While moving on roads you must have seen large hoardings placed on iron frames
or roof tops or walls. These are normally boards on which advertisements are
painted or electronically designed so that they are visible during day or night. The
advertisers have to pay an amount to the owners of the space, where the hoardings
are placed.
Posters
Poster are printed and posted on walls, buildings, bridges etc to attract the
attention of customers. Posters of films which are screened on cinema halls are a
common sight in our country.
11
Vehicular displays
You must have seen advertisements on the public transport like buses, trains, etc.
Unlike hoardings these vehicles give mobility to advertisements and cover a large
number of people.
Gift Items from manufacturers

When you buy a cycle, the shopkeeper sometimes gives you a key ring to hold the
cycle key. Some jewelers give small purse or boxes when you buy a jewellery.
Sometimes manufacturers gives diaries, calenders, purse, etc. to buyers and
prospective customers. In all these items the name, address and telephone number
of the manufacturer, or trader or service provider as well as descriptions of the
products in which they deal in are printed. These items are normally items
of daily use given freely to the customers. While using, the user remembers the
products as well as the producer.
12
Global Scenario
Impact on Supply and raw material side
Newsprint prices in CY2008 have already risen 10-12%
Indian companies, over the last several years, have been able to purchase
imported newsprint (largely from North America) at competitive prices owing to a
positive supply scenario (vast capacities created by international newsprint
manufacturers), declining demand in UK and parts of Europe and strong push by
Chinese newsprint companies into the Indian market. But, the scenario has now
changed. At the beginning of CY2007, global demand for newsprint was 38.3mn
tons while the global supply was at 40.5mn tons - a surplus of 2.2mn tons.
However, by the end of 2007, several mills closed down resulting in a shortage of
2mn tons taking the prices up. Newsprint prices in CY2008 have already risen 1012% to US $640MT levels with more hikes anticipated in the near future. We
attribute the sharp rise in global newsprint prices to the following factors:
Capacity rationalisation in North America
In CY2007, the North American newsprint market was suffering from a large
demand-supply gap keeping the prices under check. However, owing to the
merger of Abitibi and Bowater to create AbitibiBowater, the largest North
American newsprint producer accounting for almost 50% marketshare, this gap
has vanished. The merged entity announced closure of the 600,000 ton/year of
capacity as a part of its rationalisation plan and effected a price hike of US
$60/ton for 1QCY2008. Further, Catalyst Paper acquired AbitibiBowater's
375,000 ton/year Snowflake mill capacity resulting in an equation where the Topfive newsprint producers now account for over 80% of the newsprint capacity in
the North American market.
The Chinese equation
The Chinese suppliers, who were aggressively selling to the local buyers, have
pulled out as recycled newspapers, the primary raw material for recycled
newsprint, is in short supply. Old News Print (ONP), one of the main raw
materials for recycled Chinese newsprint has seen an increase in price ranging
from $130 to $270 per ton, in the last 5-6 months. Domestic consumption in
China has also gone up owing to the run-up to the Beijing Olympics.
Rising crude prices
High crude prices at US$100-105 per barrel are pushing up freight rates as well as
the cost of production of newsprint, a highly energy-intensive process.
13
After bottoming out in July 2002 at US $430MT, newsprint prices were on a

steady rise for almost four years and peaked at US $640MT levels in July 2006.
The rise in newsprint prices during the period was attributed to steady demand
and cost push inflation. In FY2008 however, most Print Media companies reaped
the benefits of lower newsprint costs on account of the dual benefit of declining
newsprint prices and rising Rupee.
Newsprint prices to stabilize post 2HCY2008
We expect newsprint prices to remain firm and rise to higher levels in the near
term. However, we note that newsprint demand in the US, the largest consumer,
has declined by 10.8% yoy in CY2007 and is expected to remain subdued.
Besides, the strong domestic demand in China is more of a transitory
phenomenon and is likely to witness moderation in 2HCY2008 leading to better
supply situation.
We have modeled in a 24% cumulative hike in newsprint prices over the next two
years
For our Print Media universe, we have modeled in an 18% rise in newsprint prices
in FY2009E from $600/ton as a base case followed by a 6% jump in FY2010E.
Our Sensitivity Analysis indicates the impact of an additional 100bp rise on
EBITDA and PAT on our base case assumptions for the different companies. We
believe HT Media is the most sensitive to newsprint price hikes owing to its large
circulation base, higher use of imported newsprint and higher pagination
compared to its peers.
Rising cost pressures likely to lead to industry consolidation
If newsprint price hikes sustain at this rapid pace for another few quarters, we
believe the smaller publishers, which largely depend on circulation revenues, will
likely witness sharp erosion in profitability rendering their business model
unviable. The large newsprint publishers are in a better position to absorb the
hikes owing to their strong Margin profile, high Operating leverage and ability to
garner high amount of advertising revenues. Moreover, most large publishing
companies have strong cash flows and balance sheet, which gives them the
additional advantage to explore acquisition opportunities, which arise due to
changing business dynamics. We believe the Newspaper publishing companies are
likely to use a combination of counter-strategies to mitigate the impact of rising
newsprint prices to protect their Margins and remain competitive.
14
Indian Advertising
India is an immerging market and Indian advertising has remained robust despite
the signs of sluggishness. The field of advertising has progressed in leaps and
bonds; today, it is much more than a few printed lines or more pictures with some
printed text. It is like a kaleidoscope exhibiting different perspectives enthralling,
sundry and real. Advertising provides a free rein to the art of persuasion, adapting
itself to changes with passing time.
Indian advertising is a vast field where new trends are continuously emerging
everyday. The language used in the advertisement is influenced by many
sociological factors like market, politics, sports, and games, rural market,
religious and education. The use of English words in between Hindi words or
Multilanguage to create a special effect is becoming a fashionable trend it is
more accessible to all. The Amul ads were one of the first to use Hinglidsh to
great effect Amul Big boss of Makkans. Practice of Multilanguage an d
translated syntax like Fruit salad ehk minute main or Ek dum fit appeals to people
of all regions across the country, as it simplifies the language. Thus, the trend of
using Hinglish is gaining prominence and emerging as a language most suited for
Indian advertising and the fact that brand ambassador like Amirkhan speaks this
language in the ad reflects the confidence of the advertiser.
Indian consumer has developed a treatment for the swift transformation that has
taken place in the strategy and presentation of ads. With the development of print
media, radio and television, advertising also score high and various media
strategies are now employed to meet different advertising needs.
Proper research is carried out to significantly reduce the risk involved in
advertising task, and improved the potential of the creative vehicle and the actual
performance in the market. All these have the potential to influence our rational
consideration for making purchase
Brand ambassador are used by companies to attain some definite objectivity.
Seeing his favorite celebrity in an advertisement motivates the consumer to use
the product. In the current scenario, companies are experimenting with novel
techniques to attract consumers. They are constantly looking at new apertures to
market. Today, online marketing and mobile marketing growing at rapid speed
targeting the ever increasing number of Indian web users in all possible promising
ways.
15
History
Advertising is attracting the interest of the public towards the goods and services
by endorsements which are performed with the help of a range of media. It is an
important part of an overall marketing strategy. Advertising is frequently
considered as the compensated, public endorsement of a cause, proposal, product,
or service by a branded supporter endeavoring to inform or influence a particular
target audience. Advertising has adopted many dissimilar forms since the initial
period of time. Examples of this were discovered by archeologists ancient wall
paintings announcing fights of gladiators. They also discovered paintings on rocks
that were used to advertise commodities. At the commencement of advertising, it
was simply a proclamation or an announcement; an example of which is, the
businessmen in early Egypt made use of caries to proclaim or announce the
arrivals of ships along with the arrivals of cargo. Evidence has been discovered by
archaeologists of the fact that advertising, outdoor display was the first to be
recognized. This outdoor advertising was normally in the form of an attractive
sign which was painted on a building wall. The archaeologists have discovered
quite a few signs, particularly at sites like ancient ruins and caves. Some of these
messages were signs relating to certain real estate for purchase or rent and
somewhere signs trying to bring to the notice of travelers the availability of guest
house located at another location.
It was discovered that in the era relating to the middle ages, the use of word-ofmouth to express approval and administration for products, led to generation of an
elementary but powerful form of advertising. The people who performed word-ofmouth services were called caries and they were citizens who were responsible for
reading out public notification. This people were also haired by traders to shout
out and express approval and admiration of their articles which were being
offered for sale. Latter on this people become a regular feature on the streets of
various colonial settlements. These ordinary town criers were the people who
gave rise to the concept of the current day announcer who presents radio and
television commercials.
Before the development of print media, carving on the rocks and pillar, and
hawking were the means of advertisement. Rajas and maharajas royal orders were
displayed as fresco or work embedded in the wooden planks. The religious
messages inscribed on the Stupas in Sanchi are examples of such advertising.
The origin of Hindi advertisement is not known or cannot be stated as clearly.
Nearly, some two thousand years back during the reign of Kumar Gupta, Indian
Merchants Slik clothes weavers cooperative association had in described an
advertisement in the form of a poem on a wall of a sun temple in Dasapur (now
called as Madsour in MP) which is consider as one of the oldest advertisement in
the world.
16
The practice of using trade mark is seen ancient civilization also. With the
development of civilization , robust changes are seen in advertising also.hordings
and signage seen near bus stop and at the back of the vehicle are the developrd
version of information or messages with the trade mark on the wooden planks,
frescos, metallic plates or stones use in the olden days. Researchers revgeal that
earlier hawking was also one of the popular medium of advertising. Hawkers use
to cry out the quality of their products In a musical way to attract people in the
states and lanes. Who can forget this popular jingle, which touch the heart and
leave an evergreen print in the minds of the mass ? babu mein laya majedar
chananchor garam, mera chana bana hai aala yes, hawkers had a very
unique musical style of magnetizing people an popularizing their products.
The prospective of advertising escalated when manual press was invited in the
15th century. After that the demand has been increasing. Indias first newspaper
Bengal Gazette most published on June 29, 1780, where four pages were set aside
exclusively for including ads, mostly of East India companies. During the period
success of the newspaper depend largely on the financial help received from the
advertisement published on it. Neither during the time of East India company not
during the British reign advertising was given much significance. Government
advertisement contained only vacancies and tender notices. If they were any other
advertisement then they published in the government gazette whose circulation
was very limited and so was far above the reach of the common people.
Earlier, agencies were working a single sided basis and were not much interested
in criticism or views and response from others. The spread of jingoistic feeling
and xenophobic attitude was echoing in the advertisement published after 1902.
for example the ad Poorn Bharatya parentu aayuthith bootom thatha jootham ke
samaan ( totally Indian but equal to imported boots and shoes) was published by
Sttewart factory , Agra. To popularized product identity, various properties of the
products were elaborate using idioms and phrases that helped to showcase them in
a better way. The use of idioms and phrase was an added advantage to create a
strong identity for the product. Superior visual and portraits were used in
advertisement published after 1954 which targeted the larger consumers over a
larger geographical\al area. During the mid 1980s advertisement having a poetic
style became very popular. Advertisers were using language enriched with
theoretical devices, which differed from the ordinary course of idea and
subsequently generated larger upshots. With the availability of products
increasing manifold, modern Indian consumers are moving towards
experimenting conspicuous consumption
The consumer buys a produce most probably because the consumer identifies a
requirement or want for it. The consumer makes decision with respect to the
brand to be purchased and whom it is to be purchased from. The knowledge of
their options and an assessment of the alternative have an effect on the
consumers decisions. Up to the 20th century, the main intension behind the
advertising was only to transmit the information. But, on the one brand, the effort
17
behind contemporary advertising is to generate a demand by manipulating the

apparent wants or need or wish of the buyer. In primeval times, the most
widespread type of advertising was done by word-of-mouth. On the other hand
the message of the commercial nature and displays of the political campaigns
have been found in the ancient ruins of the countries like Egypt. Along with this
other messages, sales messages and wall posters had also been found in the ruins
of Egypt. Similarly, messages and pertaining to lost and found contain were a
common from of advertising in the primeval times in countries like Rom and
Greece. Painting on the walls and rocks for the purpose of the commercial
advertising is another demonstration of an early from of media advertising, which
still can be found to exit in quit few parts of Asia and Africa.
Even though pictorial type of advertising becomes visible early on history, printed
advertising made slight progress until the innovation of the printing press. With
the development of the printing press, printing also expended and developed,
particularly during the period of the 15th as well as 16th centuries During this
period, advertising developed and went on to incorporate handbills. Latter on the
period of the 17th century advertisement began to appear in the tabloids and
newspapers. This initials advertisement in the print media was made use of
primarily to endorse books and newspapers. These advertisements were
economically priced, thanks to the advent of the printing press, and hence, such
advertisements were very much affordable.
During the period of the 19th century when the economy was growing at the
frantic pace, the necessity for advertising was also expanded at an even pace.
During this period, classify advertising started becoming accepted and gaining
popularity. The newspapers were full of different types of products. The
effectiveness of this type of advertising paved the way for mail order advertising
in the form of catalogs.
During the period of the 160s advertising started to advanced towards futuristic
and a much more scientific process in which the artistic imagination was given to
full scope to sparkle, creating totally new and creative messages, which in turn
made advertising more attractive viewing for the consumers.
18
Growth
While making and appraisal about the effects of a new communication medium,
almost every time there is ascertain amount of ambiguity as to the way it will
advance and flourish. I is not at all possible to anticipated the definitive traits that
will make it gel with popular culture. When something is new and one of the
kinds, there is nothing else which can be use as the basis for our expectations and
hence, comparison is made with the different types of media. For this reason, it
becomes very hard to forecast and hypothesize, not only about the future
operation of the technology, but also about the impression and impact it will have
on culture lifestyle and also on society.
Some channels of media are dependent on the revenue generated through
advertising right from the inception, while others become the outcome of
commercialization. it is the growth of each specific medium and the traits that
describe than and that in turn impacts the way in which he advertising industry
has developed. Each specific medium has an intrinsic quality of marketing and the
part that the viewer plays inside the range of the text of an advertisement is
connected with the provisions and the limitations of the medium.
To understand the growth of advertising industry, it is necessary to understand the
manner in which social development and political happenings have moulded the
commercial media and, in turn influenced the progress and expansion of the
advertising industry the time when the first commercial appeared on television. It
is also necessary to distinguish the way in which the identification of the medium
influences the message and also evaluate the sociological influence of current
fashionable advertising.
This industry boost because of big MNC in India. As we have seen that the
retailing sector is booming this will again also support the advertising industry as
the FMCG segment is the largest advertiser in Indian Advertising Industry, closely
followed by the consumer durable segment and automobile industry.
This industry has a 0.65% part of GDP growth.
19
Indian Advertising Industry size
As consumer wallets swell and companies slug it out to capture a larger share of
these wallets, the advertising industry continues to make its importance felt
registering a robust growth of 21.5%yoy in CY2007 to Rs195bn. Print Media
continues to account for the largest share of the advertising pie at 48.1%
registering a strong 20.5% yoy growth during the year. In terms of contribution to
the total pie, both the traditional platforms viz., Print and Television are expected
to converge in CY2011. Low ad spends relative to GDP, buoyant economic
growth and high growth in new media platforms are expected to drive a steady
19.3% CAGR in revenues for the advertising industry during CY2007-11.
It is sure that in near future the mode of advertising and the present method of
advertising will be changed by different mode and modern technology. Up till
now we see advertisement on television, print and radio. But now the scenario has
changed. There are about 70-million cable & satellite homes, about 200 million
newspaper readers and about 38-million users of internet in India. This breadth of
mass media will give huge market for advertisement. India has about 350 million
mobile phone users, this is also become a huge medium for this advertising
industry.
The Indian advertising today handles both national and international projects, the
reason that the industry offers a host of functions to its clients that include
everything form start to finish that include client servicing, media planning
conceptualization, pre and post campaign analysis market research, marketing
branding and public relation services keeping in mind the current pace at which
the Indian advertising industry is moving the industry is expected to witness
The launch of TV service, which was commercial in nature and sales reliant, was
seen as a major boost for the advertising industry. During the period following the
Second World War there was a very fast and strong growth in the economy of the
20
countries. This resulted in an increase in the levels of income and there was also
an increase in production, which, in turn, led to the necessity of creating new
markets. The commencement of TV advertising was considered to be one of the
means by which it was possible to develop economy, the basis of which was
competition.
After the Second World War, TV advertising was considered to be a novelty and
revolution and the people reacted very positively to advertising after the initial
doubts and resistance. The conception of the advertisement, which were multisensory in nature brought a fresh lease of life to the advertising industry. But this
did not mean that the basic modus operandi used was largely diverse from the
fundamental techniques used for advertising in the print media. The important and
unique fact was that even though the modus operandi was same TV advertising
effectively communicated the marketing campaigns in a way that was stimulating
both to the eyes as well as the ear and this was very new. Analysts argued that
there was a basic connection in way prints as well as TV- based advertising
campaign was created. They stressed that both the types of advertisement stressed
the endorsement of concern, fright or want and the perception of product
awareness. Analyst, however, also claim that in spit of being extremely effective;
commercials in the print media are successful because they are very simple. But
in being so, these commercials also are no table to convey the sequence of events
and since they do not have the quality of narration, which is made available by the
images with movement, print advertisements are less open in their ability to
provoke emotions. Along with the fact that TV advertising had the multisensory
feature the fact that truly separated it from advertising in cinemas was the fact that
the nature of TV advertising was very domestic. Just like the newspaper, TV
advertising had the capability of entering the pirate zone and aim for the people
inside their homes.
The idea of endorsing a brand name was thought to e the most vital in advertising
during 1960s. During this period, the largest consumer groups were women and
the priority of the advertisers was to attain loyalty towards their brand. The
intention behind this was that with brand loyalty, they would not only be ale to
create market for their brand but they would also retain the market from their
competitors. Brands were considered to be a means of developing links that
would help the consumer in associating the product with its packaging, the name
of the product and the commercial technique of the product. Branding was
successful in creating an intrinsic association connecting the product and the
campaign. This association is allowed identification both on the screen and the off
screen. On the other hand, in retrospection, some advertisements seem to be bit
immature and prehistoric when they are compared to current examples, as
advertisers placed enamors importance on the necessity of generating an exclusive
brand but ignored the necessity to create a center of attention for the product. In
contemporary society, we are inundated with media communication and
continuously exposed to household disturbance. Therefore, it is imperative that
21
the advertisement itself compelling enough to stop us from switching channels or

making use of the time brew a cup of tea.
In the initial campaign of TV advertising, it was apparent that conveying the
characteristics and advantage of product was essential and imperative. The result
of this was a multitude of advertisement that gave accurate information. But for
the consumer, the feel was like watching a documentary. Advertiser felt that a
sense of truthfulness was vital in connecting the trust factor with a particular
brand. For e.g., the advertisement campaign for products of domestic use like
cleaning products would time and again shows professionals or experts and
endorsing the qualities of the product so as to induce a sense of unbiased
credibility for the product. Advertisement campaign for indulgences like
chocolates and alcohol were associated with fancy desire and pleasurable feelings.
The initial period was one of the setting up advertising standards, as and for that
reason, bringing complication in to the area of play by bringing in components
like comedy, was considered to be a risk. Retailers were seriously investing to
promote their products on a commercial media outlet, which was still in the
process of straying to prove its potential in area of marketing and also in the area
of making profit. Hence, advertisers were at a distance and prefer to refrain them
selves from being to experimental. Alternatively they prefer to ensure that the
contain of advertisement was presented lucidly and accurately.
During 1980sadvertising began to mirror more powerfully the economic
principles of a spirited, liberated market. There was awareness that businesses
would have to vie for customers, and advertisements of the time mirrored this.
Advertisement developed and become more stylish, signifying to the observed the
way in which the product be used. Advertisements started to endorsed lifestyle
advertisement. Products became linked with particular kinds of populace or
movement and would time and again be revealed only at the conclusion of an
advertisement. Lifestyle advertisement depends on the desire of the viewer to
acquire the qualities of the individual in the advertisement and for that reason they
resorted to a resourceful method of aiming at specific collection of people. The
latter period off the 1980s and the initial period of the 1990s witnessed the launch
of cable television and what stood out in particular was MTV. Being the
groundbreaker in the idea of the music video, MTV brought in an innovative style
of advertising: the customer watches the channel with the intension of specifically
watching the advertisement.
22
Trends
If we talk about present trend in this industry we could like simply say mind
blowing. Today ads have made unique image in consumers mind. Earlier the ad
was meant for general know for consumer but now it is all about MIND &
HEART share. Todays ads are made so creative and unique that it gave new birth
to new concept BRAND LOYAL
Like most areas of marketing, advertising is changing rapidly. Some argue that
change has affected advertising more than any other marketing function. The
more important trends in advertising include:
Digital Convergence
While many different media outlets are available for communicating with
customers, the ability to distinguish between outlets is becoming more difficult
due to the convergence of different media types. In advertising convergence, and
more appropriately digital convergence, refers to a growing trend for using
computer technology to deliver media programming and information.
Convergence allows one media outlet to take advantage of features and benefits
offered through other media outlets. For instance, in many areas around the world
television programming is now delivered digitally via cable, telephone or satellite
hookup. This delivery method uses the same principles of information delivery
that is used to allow someone to connect the Internet.
The convergence of television and Internet opens many potential opportunities for
marketers to target customers in ways not available with traditional television
advertising. For example, technology may allow ads delivered to one household
to be different than ads delivered to a neighbors television even though both
households are watching the same program. But convergence is not limited to
just television. Many media outlets are experiencing convergence as can be seen
with print publications that now have a strong web presence. The future holds
even more convergence opportunities. These include outdoor billboards that alter
displays as cars containing geographic positioning systems (GPS) and other
recognizable factors (e.g., GPS tied to satellite radio) pass by or direct mail
postcards that carry a different message based on data that matches a households
address with television viewing habits
Focus on Audience Tracking
The movement to digital convergence provides marketers with the basic resources
needed to monitor users activity, namely, digital data. Any media outlet that
relies on computer technology to manage the flow of information does so using
electronic signals that eventually form computer data. In simple form, electronic
data is represented by either an on or off electronic signal. In computer
language this is further represented by two numbers 0 and 1 and,
23
consequently, is known as digital information. All digital information can be

stored and later evaluated. For media outlets delivering information in digital
form, the potential exists for greater tracking and matching this with information
about the person receiving the digital data. And tracking does not stop with what
is delivered; it also works with information being sent from the customer. For
instance, as we noted earlier, by clicking on their television screen viewers will
soon be able to instantly receive information about products they saw while
watching a television show. This activity can be tracked then used in future
marketing efforts.
Audience Concern with Tracking
While media convergence offers marketers more options for tracking response to
advertisements, such activity also raises ethical and legal concerns. Many
consumers are not pleased to learn their activities are being monitored when they
engage a media outlet. Yet consider the following examples of how marketers are
tracking users:
Television Viewing As we noted, the advent of digitally delivered television
allows cable, telephone and satellite providers to track user activity through the
set-top boxes connected to a subscribers television. Future innovation will make
the user television experience even more interactive and, consequently, open to
even more tracking.
Television recording The days of television videotape recording are quickly

coming to an end, replaced by recording using computer technology. A digital
video recorder (DVR), such as TiVo, can track users recording habits and, based
on a viewers past activity, make suggestions for programs they may want to
record. Additionally, advertising services can program the DVR to insert special
advertisements within a program targeted to a particular viewer.
Internet Spyware Downloading entertainment from the Internet, such as

games, video and software, may contain a hidden surprise spyware. Spyware is
a special program that runs in the background of a users computer and regularly
forwards information over the Internet to the spywares company. In some cases
spyware keeps track of websites the user has visited. The information is then used
to gain an understanding of the users interests, which then results in delivery of
special ads when a user visits a certain site.
Ad Skipping and Blocking

As noted above, television recording devices offer marketers tremendous insight
into viewers habits and behavior. Yet from the consumer side, the DVR is
changing how people view television programs by allowing them to watch
programming at a time that is most convenient for them.
24
Viewer convenience is not the only advantage of the DVR. The other main reason
consumers are attracted to the DVR is their ability to quickly skip over
commercials. Of course this presents major issues for advertisers who are paying
for advertisements. As more DVR devices with ad skipping or even ad blocking
features are adopted by mainstream consumers the advertisers concern with
whether they are getting the best value for the advertising money becomes a
bigger issue. Advertisers who feel frustrated with television ad-skipping may opt
to invest their promotional funds in other media outlets where consumers are
more likely to be exposed to an advertisement.
Changing Media Choices
There is a major cultural shift occurring in how people use media for
entertainment, news and information. Many traditional media outlets, such as
newspapers and major commercial television networks, are seeing their customer
base eroded by the emergence of new media outlets. The Internet has become the
major driver of this change. In particular, a number of important applications tied
to the Internet are creating new media outlets and drawing the attention of many,
mostly younger, consumers. Examples include:
Podcasting Audio This involves delivering programming via
downloadable online audio that can be listened to on music players, such as
Apples iPod. Many news websites and even other information site, such as
blogs, offer free downloadable audio programming.
Podcasting Video While audio downloading has been available for some
time, the downloading of video to small, handheld devices, including
cellphones, is in its infancy. Many television networks are now
experimenting with making their programming available for download,
albeit, for a fee.
RSS Feeds This is an Internet information distribution technology that
allows for news and content to be delivered instantly to anyone who has
signed up for delivery. Clearly those registering for RSS feeds represent a
highly targeted market since they requested the content.
Networked Gaming While gaming systems have been around for some
time, gaming systems attached to the Internet for group play is relatively new
and becoming more practical as more people move to faster Internet
connections. This type of setup will soon allow marketers to insert special
content, such as advertising, within game play.
For marketers these new technologies should be monitored closely as they

become accepted alternatives to traditional media outlets. While these
technologies are currently not major outlets for advertising, they may soon offer
such opportunity. As these technologies gain momentum and move into
mainstream acceptance marketers may need to consider shifting advertising
spending.
25
Marketers should also be aware that new media outlets will continue to emerge as
new applications are developed. The bottom line for marketers is they must stay
informed of new developments and understand how their customers are using
these in ways that may offer advertising opportunities
26
Future
The path that lies ahead for advertising being unpredictable, it is difficult to
forecast and it depends very strongly on the trends in the media usage. The
discovery of new technologies and the provision of these technologies as a
podium on which to advertise, help to affect the way in which potential
consumers associate with advertising. the to find out more about specific products
on television by just pressing a button on the remote or using a mouse to click on
an advertisement banner on the internet is the ultimate desire of a marketer. The
announcement of mobile majors about the offer o put up the market airtime for
advertising on its network was done with a plan to offer advertisers an express
channel, which is significantly on a come back trail.
Marketing activities with the help of internet created new boundaries for the
advertisers and this opened the gates for the dotcom era to grow by leaps and
bounds. Major corporations functioned singularly on the revenue generated from
advertising, making a vast variety of offers ranging from internet recharge
coupons to non chargeable access to thee internet. When the customer uses a
mobile phone, watches digital television or advertisements on the on internet, he
or she gets an opportunity to get directly associated with the product. This was not
possible with the earlier print-based media and the media campaigns in the
broadcasting media, which was one-way transmission only. On the other hand, the
internet offers options like a website for the promotion of products, which, in
turn,, develops additional interest in the product, a registration from that offers a
free trial or sample or even the option to make an immediate purchase transaction
on the internet. By this, we can see that the electronic media enable direct,
immediate a collaborative communication between the customer and the
seller/producer.
With the emergence of the internet, a number of new advertising opportunities
which are able to instantly attract the attention of the consumer and encourage
interaction have been generated. With each passing year, bigger amounts are
being paid so as to acquire a commercial spot durig world-famous spectacular
event. An example of this is Football World Cup event, which by any measure, is
considered to be the most major and the most significant football event of the
relevant or particular year.
Also, with the demand for advertising, there will also be an increase in the
demand for advertising that is entertaining. in the case of this type of advertising,
some consumers may be fond of a particular advertisement to such an extent that
they would want to watch the advertisement late or they may want to show the
commercial to a friend, particularly since the rise of entertaining advertising.
On the whole, the advertising population has not yet been able to make this very
simple even though some of them have started using the internet to spread
extensively their advertisement to any person who is willing and wishing to see or
hear the commercials.
27
Another noteworthy and important trend for the future of advertising is the
increasing significance of niche advertisement or in other words, targeted
advertisement. This concept has generated mainly because of the emergence and
the popularity of the internet. Advertiser will have an ever-increasing capacity to
get in touch with constricted viewers. In the past, probably the most resourceful
technique to convey a message was to cover the biggest mass market audience
that was actually possible.
28
Advertising Agencies
Ad agencies in India today are scared of their clients. Its time they make
clients understand the two are partners who have only one Client: the
Consumer
- Piyush Pandey , Creative Director, O & M
A unique aspect of advertising is advertising agency, which in most cases, makes
the creative and media decision.
The first advertising agent Volney B. Palmer, establish an office in Philadelphia in
1841.for 25 per cent of cost he sold space to advertisers in the various 1400
newspaper through out the country.
By the turn of the century, agencies started to focus their attention on the creation
of advertising for clients. Probably the first agency with a reputation for a creative
work was Lord and Thomas with two remarkable copywriters, John E. Kennedy
and Claude Hopkins. Kennedy believed that advertising was salesmanship in
print and always tries to provide the reason why people should buy the advertiser
goods.
Organization handles advertising in different ways. In small companies,
advertising is handled by someone who is in the sales or marketing department. A
large company will often set up its own department, whose manager reports to the
wise president of marketing.
To perform all the advertising activities there are different advertising agencies.
Different agencies have different policy and criteria for its client and they create
competitive edge on that basis only.
Function of Advertising Agencies

Professionals at advertising agencies and other advertising organizations offer a
number of functions including:
Account Management Within an advertising agency the account
manager or account executive is tasked with handling all major decisions
related to a specific client. These responsibilities include locating and
negotiating to acquire clients. Once the client has agreed to work with the
agency, the account manager works closely with the client to develop an
advertising strategy. For very large clients, such as large consumer products
companies, an advertising agency may assign an account manager to work
full-time with only one client and, possibly, with only one of the clients
29
product lines. For smaller accounts an account manager may simultaneously

manage several different, though non-competing, accounts.
Creative Team The principle role of account managers is to manage the
overall advertising campaign for a client, which often includes delegating
selective tasks to specialists. For large accounts one task account managers
routinely delegate involves generating ideas, designing concepts and creating
the final advertisement, which generally becomes the responsibility of the
agencys creative team. An agencys creative team consists of specialists in
graphic design, film and audio production, copywriting, computer
programming, and much more.
Researchers Full-service advertising agencies employ market
researchers who assess a clients market situation, including understanding
customers and competitors, and also are used to test creative ideas. For
instance, in the early stages of an advertising campaign researchers may run
focus group sessions with selected members of the clients target market in
order to get their reaction to several advertising concepts. Researchers are
also used following the completion of an advertising campaign to measure
whether the campaign reached its objectives.
Media Planners Once an advertisement is created, it must be placed
through an appropriate advertising media. Each advertising media, of which
there are thousands, has its own unique methods for accepting
advertisements, such as different advertising cost structures (i.e., what it costs
marketers to place an ad), different requirements for accepting ad designs
(e.g., size of ad), different ways placements can be purchased (e.g., direct
contact with media or through third-party seller), and different time schedules
(i.e., when ad will be run). Understanding the nuances of different media is
the role of a media planner, who looks for the best media match for a client
and also negotiates the best de
Types of Advertising Agencies

Full service Agencies
A full service agency is one that includes the four major staff function-account
management, creative service, media planning and buying and accounting
planning, which is also known as research. A full service advertising agency will
also have its own accounting department, a traffic department to handle internal
tracking on completions of project, a department for broadcast and print
production (usually organized between creative departments) and a human
resource department.
Specialized Agencies
Many agencies do not follow the traditional full service approach. They either
specialize in certain function (writing copy, producing art, or media buying)
audiences (minority, youth) or industries (health care, computers, agriculture and
30
business to business communication. In addition there are specialized agencies in

all marketing communications areas, such as direct marketing, sales promotion,
public relations, events and sports marketing and packaging and point of sale.
Industry Focused Agencies
Numerous agencies concentrated on certain fields or industries such as
agriculture, medicine and pharmaceuticals, health care and computers. These
agencies handle a variety of client from within that field, so they are able to apply
their particular expertise in those areas, making them essential full service.
Minority Agencies
Agency that focuses on ethic group or minority agencies is minority agency. This
agencies are organized in much the same way as full service agency ,but they as
specialize in reaching and communicating with their particular market.
Creative Boutiques
Creative boutiques are advertising agency, usually small (2 or 3 people to a dozen
or more) that concentrate entirely on preparing the creative execution of client
marking communications. The focus on the organization is entirely on idea, the
creative product. A creative boutique will have one or more writer for artist in
staff. There is no staff for media, research, or strategy planning. typically this
agencies can prepare advertising to run in print media out doors and on radio and
T.V. creative boutique usually serves companies, but it sometimes retain by
advertising agencies when they are overloaded with work.
Media-buying Service
Media-buying Service specializes in the purchase of media for clients. They are in
high demand for any reasons but three reasons stand out. First, media has become
more complex. As the no. of choices grows-think of the proliferation of new cable
channels, magazines and radio stations. Second, the cost of the maintaining of
competitions media department has escalated. Third, media buying services offer
by media at a low cost because they can group several client purchases to gather
to develop substantial buying power.
Virtual Agencies
Virtual agency is agency that operates as group of freelancers and is paid
accordingly. This type of agency does not use conventional office space.
The advertising agency is a representative between media and advertiser. A major
roll of the advertising agency is the purchase of media time and space.
Advertiser
Agency
Research
Suppliers
S. V. Institute
of Management
Media
Advertiser
Agency
31
Media
Research Suppliers
Large companies, at each levels of advertiser, media and agencies will have their
own internal research department, and each will also be purchasing data
externally from some outside research supplier.
An advertising agency is a firm that specializes in the creation, design, and
placement of advertisements, and in the planning and execution of promotional
campaigns for products and services of their client
The basic techniques that is adopted by different advertising agency are
Basic appeals
Attention getting headline
Slogans
Testimonials
Product characteristic.
Comparison of product
Repetition
Some of the famous advertising agencies in India are as bellow.
1. Ogilvy & Marther Pvt. Ltd. ( O&M)
2. J.Walter Thompson Association Ltd. (JWT)
3. Mudra Communications
4. FCB-Ulka Advertising Ltd.
5. Rediffusion DY&R
6. Mccann Erickson (India) Ltd.
7. R K Swamy/BBDO Advertising Pvt. Ltd.
8. Grey World Wide
9. Leo Burnett India Pvt.Ltd.
10. Contract Advertising (India)Ltd.
Thats why for effective agency follows the below procedure and pays complete
concentration on it.
Research
Media selection
Creative work
32
Production
Indian Media and Entertainment Industry

The Indian Entertainment and Media Industry have out-performed the Indian
economy and is one of the fastest growing sectors in India. It is rising on the back
of economic growth and rising income levels that India has been experiencing in
the past years. This is significantly benefiting the entertainment and media
industry in India as this is a cyclically sensitive industry and it grows faster when
the economy is expanding. An add ed boost to the entertainment and media
industry in India is from the demographic point of view where the consumer
spending is rising due to increasing disposable incomes on account of sustained
growth in income levels and reduction of personal income tax over the last
decade.
The Indian Media market has been on an upswing in the last 5 years and 2007 has
been no exception. What is even more heartening is that the estimates in the
TYNY 2007 report, which looked very ebullient at the time, have been met. 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.
33
The current size of the industry as a whole is estimated at US$ 7 billion in

2004 and is expected to grow at a CAGR of 14 per cent to US$ 13billion by 2009.
The Filmed Entertainment and Television segment dominate the industry followed
by the Print, Radio and the Music segments.
Inner circle represents shares in 2004 and outer circle represents projected
shares in 20
Indian Media and Entertainment Industry Size
Over the last several years, Indian Media & Entertainment (M&E) Industry has
consistently out performed most other sectors in terms of growth. Standing tall at
an estimated size of Rs. 513bn in CY2007, it is expected to continue to grow at a
34
steady pace of 18.3% CAGR during CY2007-11.While traditional segments like

Television and Print continue to account for the largest shares of the overall pie, it
is emerging segments like Internet advertising, Radio and Animation and Gaming,
which are expected to register higher growth. In terms of size, we believe that the
Indian M&E industry has just touched the tip of the iceberg. In CY2007, the
Indian M&E Industry accounted for a mere 0.9% of the Global M&E Industry,
which stood at US $1,432bn and is expected to grow at a CAGR of 6.6% over
CY2007-2011.
A buoyant economy and extremely favorable demographics are the two key
macro-economic constituents on which the Indian Media industry stands today.
Media Industry generally tends to exhibit cyclical nature wherein it grows faster
when the economy is buoyant and we believe the time is right for the Media
industry to bask in the glory of India Shining story. In perspective, according to a
McKinsey report (MGI India Consumer Report), if India continues on its steady
growth path over the next two decades, a major transformation will take place in
the Indian consumer market.
Income levels will triple and result in India taking over as the fifth largest
consumer market (currently twelfth). Such strong growth and higher incomes will
move over 291mnpeople out of desperate poverty and India's middle class will
swell by almost ten times from its current size of 50mn to 583mn people (41% of
population/ 128mn households) by 2025.
Income growth will be the fastest in the urban areas where average real household
incomes will increase by 5.8% whereas rural incomes will accelerate by 3.6%
over the next two decades. Moreover, as higher disposable incomes propel
consumer spending, more money will flow into leisure activities giving a steady
impetus to M&E Industry. Besides the macro-economic factors, we believe steady
advertising growth, liberal government regulations and convergence of diverse
platforms will be the key growth drivers for the Media industry.
35
Indian Print Media

Indian print media has evolved through a series of revolutionary events.This has
rendered the market highly fragmented with approx. 1900 news publications for a
circulation figure of just 200 million. The segment hence provides for several
opportunities as listed below:
Tapping the reading population
As per the latest readership survey NRS 2005, the reach of the print media (dailies
and magazines combined), as a proportion of the reading population (i.e. 15 years
and above) is only 27 per cent. The global average readership is estimated to be
over 50 per cent. This highlights the significant potential of the print media
market in India. Further, as literacy (as measured in the NRS) grows by nearly
eight points and even higher in the rural areas, the potential of the print media
assumes a significant proportion. This can be illustrated from the fact that one of
the reasons that Dainik Jagran, Indias leading daily hasbeen able to retain its
leadership position for the last three years isbecause the number of literates in
Uttar Pradesh, Bihar and Jharkhand(strong Dainik Jagran markets) has grown
explosively. Time spent on reading has also gone up quite significantly from an
average of about 30 minutes daily to around 39 minutes daily over the last three
years, further contributing to this growth potential.
Build a pan-India presence
Due to low levels of literacy and Indias marked regional diversity, the print
media segment is characterized by a large number of players dominating specific
geographies (See Table below). Vernacular news dailies thus dominate the market
with a 49 per cent share. Regional dominance is not just typical of only vernacular
papers- even English news dailies have managed to gain dominance only in
specific pockets. As a result, there are hardly any players with a pan-India
presence.
36
Leveraging a fragmented market

The print media market today is highly fragmented with most publishers being
family owned. These publishers hence had low access to capital and information
and thus concentrated only in the geographical location in which they were the
leaders. However, this trend is now changing and publishers are looking to
expand their market though both organic and inorganic routes. With an added
push of foreign investment being allowed in the print media segment, this
segment thus offers significant investment opportunities
More than 220 million readers of English and vernacular language newspapers
and magazines & It is close to 10% of the total base Newspapers account for 90%
of the market, Magazines account for 10%market share. Revenues expected to
grow from USD 2.38 bn in 2005 to USD 4.37 bn in 2010. Subscriptions
contribute 57% of the total revenues, rest by Advertisement Print media.
Print media players continue to add new properties and territories.
Deccan Chronicle launched its much awaited flagship daily Deccan Chronicle in
the Bangalore market. DCHL also entered the financial daily segment with the
launch of Financial Chronicle in Hyderabad,Chennai, Bangalore and Mumbai.
HT Media expanded the presence of Hindustan in UP.
However, the print segment is reeling under 30% increase in newsprint prices
since the past six months on account of
Closure of two mills in North America (end-CY07) resulting in consolidation
of capacity,
Shortage of waste newsprint for Chinese newsprint plants resulting in global
price increase of US$35per ton,
High prices of crude oil and wood and increase in newsprint demand in USA
due to presidential elections.
Sharp depreciation in rupee in the past three months as against the earlier
trend of appreciating rupee.
37
Notwithstanding the threat from Television and emerging media like Internet and
Radio, the Print Media in India continues to dominate the M&E space attracting
the highest revenues in terms of advertising. In CY2007, the Print Media segment
in India stood at Rs149bnregistering a yoy growth of 16.5%. Newspaper
publishing, which accounts for 87% of the segment, registered a 16.6% yoy
growth whereas Magazine publishing, which contributes the balance, grew at a
marginally lower rate of 15%. Going ahead, Print Media is expected to deliver a
14% CAGR in overall revenues during CY2007-11 driven largely by advertising
revenues as circulation growth is expected to witness a slowdown.
Print Media Industry Size
Print Media in India - Expanding Geographies
38
We attribute this unique feature to the following:

Family owned businesses - Most Newspaper businesses in India are family
owned and have a strong regional focus. Moreover, due to lack of funds and
localized nature of the newspaper business, most of them have remained content
in their own boundaries.
Strong Entry barriers - Newspaper business has extremely strong entry barriers
owing to strong brand equity, readership loyalty and requirement for a wide
distribution network. Moreover, as advertising revenue in a region is generally
absorbed by the top-two players, in most cases it makes competition unviable.
Niche focus - In general, Regional newspapers (Hindi + Vernacular) offer local
and regional focus to their readers, often issuing several different regional
editions. The content and circulation of English-language newspapers, on the
other hand, is largely focused on the primary urban centers. Hence, both enjoy
their own set of readers and advertisers, which have left enough room to expand
within.
Nonetheless, the scenario is fast changing. Post opening up of FDI in the sector,
several players have attracted large investments and also tapped the IPO market to
raise funds. Equipped with a large war-chest of money, these players have broken
from their regional strongholds expanding into newer geographies, launching new
editions and even venturing beyond Print. We believe this
trend will pick up further momentum in the future as Print companies taste the
benefits of ad-bundling (arising out of the ability to offer advertising in multiple
editions) and derive synergies from common infrastructure and brand equity.
Key Concerns
Rising Newsprint Prices
The cost of production of a newspaper is directly linked to the cost of newsprint,
which varies with the market price of newsprint, availability and location of
printing facilities and the number of pages used. Newsprint costs generally
account for almost 50-70% of total expenses for a publishing business. Below we
have enumerated newsprint costs for our Print Media universe vis--vis their total
expenditure and revenue.
Newsprint costs vis-a vis Expenditure & Revenue
39
Newsprint prices vary according to quality. Newsprint is a freely traded

commodity on the international markets and exhibits price volatility. India
imports almost 70% of its newsprint requirement. The English newspapers
generally use higher quality and mostly imported newsprint compared to the
regional players which use a mix of imported and domestic newsprint. In our Print
Universe, the ratio of Imported: Domestic newsprint stands at 90:10 for Deccan
Chronicle, 70:30 for HT Media and 35:65 for Jagran Prakashan.
After bottoming out in July 2002 at US $430MT, newsprint prices were on a
steady rise for almost four years and peaked at US $640MT levels in July 2006.
The rise in newsprint prices during the period was attributed to steady demand
and cost push inflation. In FY2008 however, most Print Media companies reaped
the benefits of lower newsprint costs on account of the dual benefit of declining
newsprint prices and rising Rupee.
Print scores over Television due to inherent advantages.
Print, as a medium, has certain inherent advantages over other mediums
particularly TV, which helps the segment retain higher portion of advertising
revenues:
Newspaper advertisements have a better shelf life and visibility unlike TV
where viewers flick through channels during commercials. Ability to
communicate lengthy, detailed and complex information, forms and
descriptions is also unique to print.
Several advertisements are best conveyed only though the print medium
including tenders, cinema listings, corporate communications. Moreover, ads
relating to sectors like education, real estate, financial products, etc. are also
better suited for print.
Certain categories like classifieds related to jobs, matrimonial and services
offered are reserved for Print (Internet is now posing a threat).
Newspaper easily wins over TV in case of ease of targeting audience by
demographic and/or region. Print also again scores over TV in case of reach of
the local ads.
Print ad costs are drastically low in India compared to the TV ad spots making
print the affordable medium for a larger number of advertisers.
40
Structural factors to Drive Print Media growth in India

While advertising revenue growth is largely related to strong economic growth in
the country, we believe Newspaper publishing in India is set to grow owing to the
following inter-related structural growth drivers:
Low Penetration
One of the key factors influencing allocation of ad spends towards different
media platforms is reach. The reach of Print Media in India is significantly low at
38% constrained by poor literacy and income levels. However, its reach in the
urban areas at 58% is substantially higher compared to the rural areas at 30%
(FICCI-PwC Report on Media, 2008). Even though, reach of Print media is lower
than television, it is witnessing faster growth in terms of reach compared to
television. Moreover, the print media penetration is higher among people in the
upper socio-economic classes, in % terms, compared with those in the lower
brackets. However, due to the sheer number of people falling in the lower
brackets, the number of print readers in the lower strata outnumbers the readers in
the upper strata on an absolute basis, indicating strong headroom to grow
readership numbers.
Improving literacy levels
According to NRS 2006, literacy levels in India have risen from69.9% to 71.1%.
Literacy levels in urban areas at 85.3% witnessed a 90bp rise whereas rural areas
at 64.8% witnessed a higher rise of 120bp during 2006. Moreover, readership
(dailies and magazines combined) increased to 222mn from 216mn. This has led
to significant scope for growth for newspaper publications in terms of untapped
potential readers. The fact that out of the
359mn people in India who can read but do not currently read any publication,
68% can read Hindi indicates strong potential for readership growth. Also, 20mn
of these literate non-readers belong to the upscale SEC A and B segments (higher
socio-economic brackets), which can help publishers attract strong advertising
revenues.
Improving affordability
Rising income levels coupled with aggressive marketing by print media
companies is also driving growth of Print Media in India. It should be noted that,
each regional daily is read by almost 7-9 readers compared to 2-3 readers for
English dailies, which indicates the potential for higher circulation as affordability
improves. Moreover, growing efforts by Print Media companies to push up
circulation in terms of discounted cover prices and incentives(subscription
schemes) have not only accelerated penetration of dailies, but have also helped
push multiple dailies into homes.
Convergence - Playing its part in Print Media
Sitting on huge cash piles and with the ability to generate strong cash flows, Print
Media companies have started to realize the importance of convergence of media
platforms and moving beyond their core business. Rising competition, the need to
41
capture a larger advertising pie and ability to derive cross-synergies are some of
the key reasons necessitating this transformation. We believe the Print Media
companies in India have just embarked on a global trend, which has
We expect the Indian print media industry, estimated at Rs144bn, to grow at a
CAGR of 14.8% to Rs282bn over FY06-11E. Advertising revenue should clearly
lead the growth with a CAGR of 16.8%, whereas we anticipate circulation
revenue growth of 8.8%. A booming economy, increasing literacy, rising incomes
and low media penetration are some of the factors driving the growth in India
print media.
India is one of the fastest growing print media markets in the world. In 2001-06,
the Indian print industry grew at an 8.8% CAGR, against 13.5% growth for most
other markets globally over 200106. Going forward, we expect strong economic
growth, rising incomes and rising literacy levels to accelerate Indias print media
industry growth. We estimate the print media segment will grow at 14.8% CAGR
over 2006-011E, based on a 16.8% CAGR in advertising revenue and 8.8%
CAGR in circulation revenue. India is one of the few markets in the world where
newspaper readership is growing, driven by rising income levels and increasing
literacy. In addition, there is a literate population of about 300m who do not read
newspapers, which provides for opportunity of growth in readership.
Print has 47% share of advertising pie
Over the last decade, increasing penetration of cable and satellite TV has shifted
market share from newspaper advertising towards broadcasting. This trend,
however, seems to have stabilized over the last few years. Strong growth in
sectors such as retail, real estate, telecoms, and financial services has led
companies to target penetration in Tier II Tier III cities. In these markets, local
print advertising is an effective means of communication, with positive
implications for print sector growth.
42
While newspapers in India are not gaining ad spend at the same rate as other
media, especially TV and Internet, newspapers still capture a significant share of
overall advertising. In 2006, print advertisings share stood at 47%, which still
makes it largest revenue generating advertising medium and higher than the
global average of 42-45%. We expect newspapers to be a key beneficiary of
43
Newspaper and Magazine Advertising in India.

The Indian press is, for the most part, independent and privately owned. A few
newspapers are linked, officially or ideologically, to political parties. Owners can
and do dictate editorial policy. Both the English and the language press (nonEnglish) tend to support the Indian government on foreign policy issues.
Newspaper readership is steady, despite the rapid growth of electronic media.
Newspapers remain relatively in expensive, and the print media, especially the
English language press, are feistier and more apt to criticize the government on
domestic issues than their electronic counter parts. n India boasts more than
43,000 newspapers and magazines published in English and dozens of other
languages. Hindi publications have a 36% share of the total circulation of
newspapers and magazines; English publications have a 17% share. The Urdu
press is the third largest. Other major language newspapers with a circulation of at
least 100,000 are in Tamil, Malayalam, Bengali, Gujarati, Marathi, Telegu,
Kannadaand Punjabi.n Indias language press is booming.
The past20 years have seen a remarkable growth, with circulation trends pointing
up. In 1997, the Prasar Bharati Act was en acted, giving BBC-style autonomy to
the formerly state-controlled TV and radio networks, Doordarshan and All India
Radio. By early 1999, a draft broadcasting bill, which would provide a regulatory
framework for the industry, was awaiting action. Private cable and satellite
television reach the entire country; two dozen satellites beam signals to India, and
some subscribers have access to as many as 50channels.
Television is assuming tremendous importance in the country, especially among
the growing middle class. Viewer ship is estimated at nearly 300 million. Radio is
the most popular means of information and entertainment, particularly for the
rural and illiterate population. All India Radio has a countrywide network of
regional broadcasting and programming center as well as a national channel that
broadcasts in Hindi, Urdu and English.
44
45
The Market:
The Display advertising component of the Newspaper market in India for
calendar year 2007 was valued atRs.9,290 cr. This is a growth of 18% over
calendar 2006 (Rs.7,856 cr.) as against the 17% predicted by us in last years
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 Matrimonials, 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.
46
The Product:
Death of the Front Page as we know it: Product innovation is the name of the
game today. TOI has made the half front-page gate fold a regular feature and most
other publications have followed suit. It has become a very attractive option for
advertisers as well.
Rise of the Tabloid: Even though broadsheet still remains the popular format,
there is an increasing accent towards smaller formats. The newly launched Mail
Today (JV between Associated Newspapers Ltd with Living Media India Ltd) and
Metro Now (JV between HT Media and BCCL) have indicated that there might be
a subtle shift towards Tabloidisation of the Indian market. Factors such as
increasing cost of newsprint and shift in reader preference (young readers who
find newspapers dull have shown interest in this format), might only accelerate
this trend.
Move to other Languages: 2007 witnessed the transition in areas such as

Business papers which have always been considered the domain of the English
press. Economic Times broke the trend by launching a Gujarati edition in
Ahmedabad and a Hindi edition in Delhi. Business Standard was not far behind
with its launch of Hindi editions for Delhi and Mumbai.
The launch of supplements designed for special interest areas such as lifestyle,
technology, entertainment, education and careers.
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.
47
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.
48
Newspaper publishing - Standing tall in India

Contrary to popular belief and in defiance to global trends, Newspaper publishing
still stands tall in India accounting for similar share of advertising pie as the
popular idiot box (television).Newspaper publishing, a thriving business in India,
generated Rs130bn in revenues during CY2007out of which 61% came from
advertising and the balance from circulation. In terms of advertising revenue
growth, it once again outpaced television registering a robust 21.2%
yoygrowthduringCY2007 as against 20.8% growth in advertising on television.
Going ahead, the industry is expected to register a 13.9% CAGR in overall
revenues during CY2007-11 largely driven by advertising revenue growth.
Newspaper Publishing Industry size
Revenue Model skewed towards advertising.
The Print Media model involves dual stream of revenues - advertising and
circulation. While advertising revenues are generated from sale of advertising
space in a publication, circulation revenues are a function of the number of copies
sold and pricing of the publication. This nature of dual stream of revenues
requires newspaper publishing companies to create a balance between both
streams to achieve maximum potential and sustainability. A typical newspaper
publishing model has the following structure.
Newspaper Publisher Business Model
49
Print Media in India Readership
Even in terms of overall readership, the Regional dailies (Hindi and vernacular
dailies) dominate the pie with The Times of India being the only English daily to
feature in the Top-10 list. Moreover, the Regional dailies have a readership:
circulation multiple of 7-9 times compared with English newspapers of 2-3 times.
This is primarily due to higher cover prices of Regional newspapers compared
with English newspapers and the readers of Regional newspapers are generally
from the lower socio-economic segment
50
Top Ten Newspapers by Readership
However, despite having higher number of registered newspapers, higher

readership and a better proportionately distributed readership (urban + rural), the
Regional dailies commands a lower share of the print advertising pie. English
dailies (including Business dailies) attract the highest advertising revenues with
approximately 50% of ad-spend followed by Hindi and other Indian language
newspapers with approximately 25% of ad-spend each.
51
Industry life cycle

The life cycle of the print media is shown below it shows that the industry in the
growth stage its earnings are increasing year by year from the year 1995 its
earnings were 24500 mn and in year 2007 it has increased to 118064 it shows the
constant growth in the industry and the reasons behind the growth of industry are
that the literacy level increase, due to that more people are reading the newspaper,
even the government support the industry, in 2005 budget the government the
service tax over the space for advertisement
in television but it was untouched for print media and due to that there was a
sudden boost in the income for print media from year 2005 to 2007.
52
And as the industry is in growing stage and chance of earning are high more
players are attracted towards the investment in the industry compounded annual
growth rate of the industry is 14% and it shows the profitability of the business
that is there are more chance of earning good profit in the industry which can be
seen from the figure shown below.
PEST ANALYSIS
53
54
Political Factor:
1. Service tax on development and supply of content for use in
advertising purpose (advertising cost increases).
Scope of certain existing services expanded [Section 65]
All the changes in respective services specified below have come into effect from
01.06.2007
(i) Sale of space or time for advertisement, other than in print media
Sale of space or time for advertisement, other than in print media is chargeable to
service tax under sub-clause (zzzm) of clause (105) of section 65. The scope of
this service has been expanded by substituting the explanation 2 to the clause
(zzzm) which defines print media. The new explanation states that print media
does not include business directories, yellow pages and trade catalogues which are
primarily meant for commercial purposes. Consequently, sale of space for
advertisement in such publications will also be livable to service tax under this
service. (Source: Amendments by the finance act 2007)
2. Sales of space for advertisement in print media left out of the

ambit of service tax.
Service tax increased from 10% to 12%. Sale of space or time for advertisement
service, excluding that in print media and that by broadcasting agency, brought
under the service tax net.
3. The pre-conditions of FDI in print.

At least three-fourth of the board of a print media company with FDI must be a
a Indians.
All key editorial posts must also lie with resident Indians.
Any print media company wishing to change its share-holding pattern must get a
a prior government approval. (Source: Equity master union budget 2006-07)
4. Foreign Investment in Print Media

Only 26% FDI is allowed: the government allow 26% F.D.I limit for the
investment in print media in that 100% F.D.I is allowed in non news segment
which includes magazines like scientific magazines but in news segment only
26% F.D.I is allowed due that foreign players are restricted. And in the company
of the board member should be Indian only and should be having control in
their hands. Budget 2002-2003
55
The process of economic liberalization in India, which began more than a decade
ago, has taken another significant step, namely opening up a very sensitive sector.
The print media Government of India in June 2002 had decided to allow 26%
foreign direct investment (FDI) in news and current affairs print media. Technical
and medical publications have been allowed a higher FDI of 74%. The decision,
taken by the Union Cabinet, reverses the 1955 Cabinet resolution prohibiting any
foreign investment in print media. A detailed policy statement on FDI in print
would be issued shortly. Foreign investments in news agencies, however, remain
barred. The government has attempted to address the concerns of political parties
that fear FDI in print might lead to foreigners controlling the Indian media.
The Opportunity
The desire for foreign help is palpable. India has 49,000 publications, but annual
revenues total just $1.1 billion. While they can be vibrant and gutsy, most are
starved for technology, marketing, and capital to expand. (Source: ibef july-sep
2008)
5. IPC (Indian Penal Code):

The Indian Penal Code makes criminal defamation a noncognisable offence.
Thus, criminal proceedings can be initiated against a newspaper, TV or radio
channel if the complainant is able to satisfy a magistrate that a statement made
about him/her was on the face of it defamatory. Civil suits for defamation are also
possible under Indian law. Two significant aspects of the defamation law impact
on the press. First, once a case of defamation is taken to trial, the matter is
deemed to sub-judicial and cannot be commented upon. Second, where the person
claiming to be defamed is the Prime Minister or the chief minister of a state, the
prosecution can be launched by the public prosecutor; in other words, at the
states expense and without the person claiming to be defamed having to appear in
court. This enactment has been used by the chief ministers of some states to
launch vexatious litigation against the press, with a view to causing harassment
and cowing newspapers and other members of the media deemed to be
unfriendly. While there are no apparent restrictions on the free coverage of
groups or issues, there are some restrictive enactments in place to deal with
contempt of the judiciary, and breach of legislatures and Parliaments privileges.
Criminal contempt, the offence chiefly concerning the press, is defined as any
publication that interferes with or undermines the administration of justice or has
a tendency to do so. In 1997, A.K. Singh filed a criminal case under Sections 500
and 501 of the Indian Penal Code against Raman Kirpal; A.K. Bhattacharya, the
then editor of The Pioneer, Lucknow and Delhi; Ghanshyam Pankaj, editor of the
56
Hindi daily Swatantra Bharat; and Sanjiv Kanwar and Dipak Mukherjee,
printer\publisher of The Pioneer and Swatantra Bharat, respectively.
After a 10-year-long trial, Chief Judicial Magistrate Suresh Chandra pronounced
his judgment on September 3, 2007, holding the reporter and the other accused
guilty. The Judge said in his order that it had been established that the interview
published by the accused was concocted and defamatory. He also said that the
accused persons had failed to prove that the reporter had actually taken the
interview. (Source: vakilno1.com/bareact/Indian penal code.asp)
6. MRTP act on news:

While general legislation exists to regulate monopolies and cartels the
Monopolies and Restrictive Trade Practices Act this has been ineffectual in
curbing the formation of monopolies and cartels of private media companies. In
the absence of restrictions on cross-media ownership, such monopolies in fact
straddle various units of the media. Thus, private monopolies and cartels of the
media do exist. Such monopolies and cartels are found largely in the press, but
some media barons have overlapping interests in television and FM radio. Media
monopolists are generally proestablishment and support the governments of the
day to ensure that their monopoly positions are not threatened. These monopolies
exist mainly to enrich the owner of the media company. State authorities have in
the recent past not taken any action against private media monopolies. This is
largely because such monopolists support ruling dispensations, are adept at
gauging the popular mood about political parties and see no difficulty in swearing
or switching allegiance to those in power.
(Source: legalserviceindia.com/article/print.asp)
7. Act for surrogate advertisement, 2004

This Act may be called the Prohibition of Publication or Telecast of Vulgar,
obscene and Surrogate Advertisements and Re-mix Songs by Print and Electronic
Media Act, 2004. (Source: Adverting and promotion management by Beltch &
Beltch, Page no.)
8. Custom duty on import of newsprint.

The total requirement of newsprint in the country today is around 10 lakh tonnes.
The domestic production of newsprint by the existing manufacturers can fully
meet the country's demand, as the installed capacity is around 12 lakh tonnes.
Currently, approximately five lakh tonnes of newsprint are being imported at the
cost of around Rs 1,000 crore to the country's exchequer.
57
Currently on import of newsprint, there is five per cent. "Due to negligible duty
on import of newsprint, large quantities of the same are being dumped from
South-East Asian countries, Russia and America and the indigenous industry is
suffering badly. The above duty is even less than the duty on raw material i.e.,
waste paper whereon the duty incidence is 9.2 per cent (basic duty five per cent
plus SAD four per cent). WTO bound rate for newsprint is 25 per cent," FICCI
said.
But duty was bound to be reduced because of the increase in the price of news
print globally and due to that government reduce the duty from 5 percent to 3
percent and due to that import can be done at easy rate
But import on newsprint for newspaper is exempted from the import duty.
The present newsprint policy of the Government of India is as
follows:
a) Not less than one-third of the annual production of
indigenous newsprint will be reserved for small and medium
newspapers.
b)
Import of newsprint is allowed to actual users.
(Source: www.bangladeshnews.com.bd/2007/07/01/budget-hasmeasures-to-contain-price-hike-scopes-for-job-creation/ 40k.htm)
9. Coping with Regulations:

Marketers can cope with advertising regulation in various ways:
Monitor regulations and pending legislation: Monitoring legislation and

gathering intelligence on possible changes in advertising regulations is crucial
since advertising regulations change from time to time. In many countries, the
prevailing mood is in favor of liberalization with the important exception of
tobacco and alcohol advertising.
Lobbying: Local governments or international legislative bodies can be lobbied

usually jointly by advertisers, advertising agencies and the media. But too much
lobbying carries the risk of generating bad publicity, especially when the issues at
hand are highly controversial.
58
Legal remedies: Advertisers may also consider fighting advertising legislation in

court. In Chile, outdoor board companies, advertisers and sign painters filed suits
in civil court when the government asked advertisers to place outdoor boards
several blocks from the road. In the European Union, advertisers appealed to
European commission or the European court of justice to overturn local laws.
Modify marketing-mix: Tobacco marketers have been extremely creative in

handling advertising regulations. A widely popular mechanism to cope with
tobacco ad bans is brand extension or surrogate advertising. For instance, the
Swedish Tobacco Co. whose brands have captured more than 80% of the Swedish
cigarette market started promoting sunglasses and cigarette lighters under the
blend name, its best-selling cigarette brand, to cope with a complete tobacco ad
ban in Sweden. In the United Kingdom, Hamlet, the leading cigar brand, shifted
to other media vehicles following the ban on all TV tobacco advertising in the
United Kingdom in octomber1992. Hamlet started using outdoor boards for the
first time, installing them at 2,258 sites. It ran a sales promotion campaign at a
horse race where losing bettors got a free Hamlet cigar. it also started selling a
video cassette with about 20 of its celebrated commercials. In South Korea,
Virginia slims pitched itself as a mans cigarette because the Korean law banned
advertising that targeted women and young adults.
(Source: Anil Varma, Advertising Industry facts and regulation, chapter no. 3,
page no. 67)
59
Economical:
Attracting foreign investment
Most Indian print players continued to dominate the local regions and did not
enter new territories, mainly due to lack of funds. However, foreign investment
regulations were relaxed in 2002. Currently, up to 26% foreign direct investment
(FDI) is permitted in newspapers and periodicals dealing with news and current
affairs. In non-news publications, 100% foreign investment is permitted. Since the
changes in the regulation many foreign investors have taken strategic stakes in the
domestic print media companies.
Domestic
Company
Jagran Prakashan
HT Media
Jagran Prakashan
Deccan Chronicle
HT Media
Henderson
Dainik Bhaskar
Amar Ujala
Ushodaya
Enterprises
Investor
Independent
News& Media
Public (IPO)
Public (IPO)
Public (IPO)
Amount Invested
(Rs. bn)
1.7
3.7
3.3
1.5
Henderson
Warburg Pincus
DE Shaw
1
1.5
1.2
Blackstone
12
Source: Ficci PWC, companies
Global crises:
Due to global crises in the whole world the corporate has control their
expenditures and due that they had restricted the their advertising expenses which
directly affect the earning of different medias and this also affect the print media
earnings because advertising income contributes 75% of their total earnings and
due to these reduction their earnings are negatively affected. (Source: Economic
times (gujarati) page no. 2 date: 4th nov, 08)
60
GDP v/s Growth of Print Media:

GDP has no relation with Print medias growth, as the given graph reveals that in
2004 GDP was 8.5% and growth rate of print media was 15.29%. In 2005 GDP
decreased by 1% and growth of print media also decreased by 0.39%.
Effect of GDP growth:
(Source: cii presentation july 2008)
In 2006 GDP increased by 1.9% and growth of print media also increased by
7.3% and in year 2007 GDP increased by 0.2% and growth rate of print media
also decreased by 1.6%. As the entire picture reveals the situation that whatever
change in GDP incur same happened to the growth of print media.
As per 11th five year plan the GDP growth was forecasted round about 8.40 to
8.90 which shows the decline rate, so as per Angel broking survey 2008 the
estimated growth of print media will also be decreased.
Contribution in GDP:
Another favorable thing is that the contribution in GDP of print media is
increasing at increasing rate, in year 2006 the contribution as 0.29%, in year 2007
it increased by 0.04% to 0.33% and the estimated contribution in year 2008 is
0.38% which is 0.05% increased compare to year 2007. (as per NRS)
Effect of inflation:
Inflation rate has positive relation with the growth of print media advertising
because when inflation rate increases the purchase of an individual also get
61
increases and that lead corporate to advertise more. Thus, this increased
advertisement of corporate lead the print media to grow more. On the other hand
when inflation rate decreases purchase of an individual also get decreases and at
that time generally corporate do not prefer to increase the frequency of the
advertisement.
(Source: cii presentation july 2008)
As in given chart when inflation rate decreases to 4.5% in year 2005 from 7.4% of
year 2004, the growth of print media advertising also decreased to 14.9% in year
2005 from 15.29% of year 2004. While in year 2006, inflation rate increased to
5.8% from 4.5% of year 2005 and the growth rate also show the same picture, it
increased to 22.81% from 14.9% of year 2005. Story remains same in year 2007
also.
Slowdown in the economy:

Historically, the advertising industry has had a strong correlation with the growth
in the economy. Between 1996 and 2006, the advertising industry grew at a
CAGR of 11%, while the economy grew at an average 6%. While, circulation
revenues for newspaper companies are recession-resistant, 61% of their revenues
come from advertising, which is very sensitive to the overall trends in the
62
economy. Any slowdown in the Indian economy and the consequent impact on
disposable income could adversely affect advertising income. Further, ad spend is
influenced by a number of factors including the Indian economy, the performance
of particular industry sectors, shifts in consumer spending patterns and changes in
consumer sentiments and tastes. For e.g. in 2QFY08, the print companies faced
pressure on the ad revenues as a slowdown was witnessed in the retail and real
estate sectors.
(Source: equity master November 30, 2007)
Increasing disposable income:

In India, the disposable income of people is increasing year by year, purchase
power also get increased. People are spending more money day by day that lead
advertiser to increase their frequency of advertisement. Even the 6 th pay
commission also increases the purchasing power of individual. (source: equity
master march 26, 2008)
Increase in price of newsprint:

The cost of production of a newspaper is directly linked to the cost of newsprint,
which varies with the market price of newsprint, availability and location of
printing facilities and the number of pages used. Newsprint costs generally
account for almost 50-70% of total expenses for a publishing business. Below we
have enumerated newsprint costs for our Print Media universe vis--vis their total
expenditure and revenue. Newsprint prices vary according to quality. Newsprint is
a freely traded commodity on the international markets and exhibits price
volatility. (Source: angel survey april-2008)
Geographical expansion:
The national players are penetrating regionally because the regional and
especially rural market is also showing more potential. The numbers of readers
are increasing in rural area, reasons for that are,
1. Increasing literacy level
63
2. Increasing awareness level of stock market

3. Regional newspaper are also providing news of Business, Classified etc.
Low cost of production (small players can easily survive):

Less technological changes in every business make small players to grow faster or
help to survive up to some extend. Same is the situation in print media industry
where the technological changes are very nominal and that give a chance to small
player to survive. The changes in industry are only in Production capacity and the
cost related to production like increase in paper cost which is nominal in nature.
Higher literacy levels:

In 2006, the literacy levels increased to 71.1% as compared to 69.9% in 2005.
While rural literacy is at 64.8%, urban literacy touched 85.3%. Currently Indian
print media is estimated to reach over 220 m people, and has immense growth
potential since close to 370 m literate Indians are believed to not be served by any
publication. Also, the reach of newspapers is only 27%, as compared to the global
average of 50%.
Lower cover prices:

Earlier, due to strong hold over a region, the newspaper had higher cover charges.
However, with increasing competition and venture into newer regions the
companies have reduced the cover prices to augment more sales. Many English
dailies are sold for as low as Re 1 or Rs 2. The initial subscription offers of DNA
and Hindustan Times (HT) in Mumbai, during their launch period, further
reduced the cost of the newspaper to around 50 paise for an average issue.
Higher ad spends:
Print media accounts for 48% of the total Rs 137.5 bn advertising spend in the
country. However, the ad spend in India is just 0.4% of GDP as against 0.5% in
China, 1.3% in the US and a world average of nearly 1.0%. With rising
consumerism and growing interest from domestic and global brands in Indian
market, the growth in ad segment is expected to be strong.
As per the registrar of newspapers, there were approximately 6,529 daily
newspapers as of March 2005. No single newspaper had a national circulation. In
2006, India had the second largest circulation of newspapers with 88.9 m copies
per day; second only to China with 98.7 m copies a day.
Base
Population
Any
Publication
Any Daily
Any Hindi
Daily
Any English
Daily
Any
Magazine
Urban
& Rural Urban
(m) % (m) %
184
170
24 100
22 94
Rural
(m) %
42
40
84
77
16
14
63 8.1
36
15
27 5.1
17 2.2
16 6.7
1.6 0.3
59 7.6
34
25 4.6
14
(Source: NRS 2006)
64
65
Sociological factors:
ASCI NORMS:
WHY SELF-REGULATION IN ADVERTISING
In recent years the quantity of false, misleading and offensive advertising has resulted in
consumers having an increasing disbelief in advertising, and a growing resentment of it.
Misleading, false advertising also constitutes unfair competition. It could lead to marketplace disaster or even litigation. If this kind of advertising continues, it wont be long
before statutory regulations and procedures are imposed which make even fair, truthful,
decent advertising cumbersome if not impossible. This certainly will affect your ability to
compete and grow.
The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for SelfRegulation in Advertising. It is a commitment to honest advertising and to fair
competition in the market-place. It stands for the protection of the legitimate interests of
consumers and all concerned with advertising - advertisers, media, advertising agencies
and others who help in the creation or placement of advertisements. As the Code becomes
increasingly accepted and observed pro-actively, three things will begin to happen.
1. Fewer false, misleading claims
2. Fewer unfair advertisements
3. Increasing respectability
Which, only means more freedom for you to practise your craft or carry on your business
effectively. As a member of ASCI, you can mould the course of Self-Regulation and
participate in the protection of healthy, effective advertising. You can have a say, through
the Board of Governors, in the further development of the Code and future appointments
to the Consumer Complaints Council (CCC). Membership of the ASCI (open only to
Firms) entitles you to appoint your nominee to discharge your function as a member,
including standing for election to the Board of Governors and voting at general meetings.
Why not have a say in matters affecting your own destiny?
Why not make Self-Regulation truly work for you?
In India, as in several advanced economies, there is only ONE BODY for Self-Regulation
in Advertising the ASCI, which is concerned with safeguarding the interests of
consumers whilst monitoring/guiding the commercial communications of Practitioners in
Advertising on behalf of advertisers, for advertisements carried by the Media, in their
endeavours to influence buying decisions of the Consuming Public.
66
Bad effect on children:

Parents have a different opinion according to them the excessive information and
products thrown at them via the media, print and visual, spoiled the children.
Most marketers were targeting kids even for products that had nothing to do with
children. Since most middle class families have both parents working the
marketer tries to work through the children on the guilt of the parents and thus
encourage children to make very unreasonable demands.
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 71
Language barriers:
Language is one of the most alarming barriers in international advertising.
Numerous promotional efforts have misfired because of language-related issues.
Given the bewildering variety of language, advertising copy translation mistakes
are easily made. In general, there are three different types of translation errors:
simple carelessness, words with multiple meanings and idioms.
Religious barriers:
Many of the trickiest promotional issues occur in the area of religion. In Saudi
Arabia, for example, only veiled women can be shown in TV commercials. Such
restrictions create problems for hair care advertisers. P&G overcame that
constraint by creating a spot for pert plus shampoo that showed the face of a
veiled woman and the hair of another woman from the back. In Brazil, Pirelli, the
Italian tire maker, ran into problems when it used an ad with a Christ-like
depiction of Ronaldo, the Brazilian soccer star. The ad showed Ronaldo with his
arms spread and a tire tread on the sole of his foot, standing in place of the Christ
the Redeemer statue. The ad drew heavy criticism from the Brazilian church
authorities and the Vatican. In France, after protests from local bishops,
Volkswagen withdrew a billboard campaign involving an ad the relaunch of Golf
with a modern version of the Last supper.
Culture barriers:
Advertisers must escape cultural traps by getting inputs from local staff,
distributors or ad agency people. The Hofstede cultural grid is useful in
understanding the influence of culture on global advertising. The grid classifies
national cultures on various dimensions: power distance, uncertainty avoidance,
individualism, masculinity, and long termism.
Power distance refers to the degree of inequality that is seen as acceptable within
the country. Ads that position products or services as status symbols may be
67
effective in countries with large power distance (e.g, the Arab countries,
Indonesia, Mexico).
Source: Global CEO, july 2005. the icfai university press. All right reserved.
Deceptive Advertising:
Sometimes, advertisers give untrue and misleading information. It can take quite a
number of forms like making a claim which it cannot fulfill, publicizing false
benefits, use of ambiguous phrases, etc.; for example, the advertisement of
fairness cream for men. Advertisers often take the help of puffery (praising the
item to be sold with vague claims, without specific facts) to achieve their goals.
One of the major areas of concern for the regulatory authorities is whether
advertisers can substantiate the claims which they are making.
Comparative Advertising:
In the mad rush to outweigh the competitor, advertisers are using comparative
advertising, which has always been there in the advertising world; it appears when
owner of brand X claims that his product is better than brand Y of the
competitors; for example, the advertisements of Mountain Dew of PepsiCo and
Sprite of Coca-Cola. This has been extensively criticized by various researchers,
because of the wrong perceptions in the minds of the consumers. More and more
companies are resorting to masked comparative advertising. By this, the name
of the competitor is not directly mentioned. But the question remains whether it is
advisable or not? Another question that comes to mind is how effective
comparative advertising is?
Ads to Kids:
As per a study conducted by Business Today, ever year, kids between the age
group of 8 and 12 in India spend a whopping sum of around Rs.20, 000 cr,
starting from the clothes to food and recreation. This figure is enticing the
marketers to target the children with specific advertising, and is also another cause
for concern to the advertisers. They are targeted through TV and print media.
According to experts, the problem is not in using children in advertising, but with
the context in which they are used. Let us take the example of baby shampoo
(name of the company withheld). The problem here is that there is no adult who is
shown supervising the child near the swimming pool. The Childrens Advertising
Review Unit (CARU) of the batter business bureau (BBB) keeps a close eye on
68
kids advertisings and advocates that adults be shown supervising children if the
product and service are supposed to be risky.
Tobacco and Alcohol Commercials:

Advertising related to tobacco (in any from) is under the scanner of the
government of many nations including India. It has an adverse effect on the,
population, especially the young. Tobacco companies have a tough challenge
ahead of them in using advertising to target potential customers. Similarly, the
advertisements of alcohol brand are restricted in many from media, but the
advertisers are smart enough to use the name of their brands for other products.
For example, McDowells No.1 is advertised through the product mineral water
this known as surrogate advertising.
Condom Ads:
There is a heated argument going on about the use of advertising to promote
condoms. Certain sections of the society feel prickly when these advertisements
are shown in front of their children. Some people might call this hypocrisy, but
one has to keep in mind the Indian values and ethics when advertising any product
related to this category. Most of the time, an advertisement for condoms shows a
couple in their wedding attire, i.e., the focus is mostly on the nuptial bed, but the
biggest market for condoms lies outside this context. This is another aspect to be
looked into.
The X Factor:
A debate had been initiated a few years ago regarding the portrayal of women in
advertising. On close examination of the ads featuring women, it is observed that,
mostly, mo0dels having perfect bodies are preferred. For example, the cover page
of a fashion magazine features photographs which are not conducive to Indian
culture. According to Scott A Lukas (teacher at Lake Tahoe Community College),
Womens bodies are objectified in common ways. In the case of many popular
ads, the objection comes through stereotyping. Women are used extensively by
different advertisers to promote their products.
RTI Act:
The landmark Right to Information Act of 2005 with several implications to news
media and good governance would have remained dormant had newspapers not
given the coverage in 2006 and 2007. The coverage of contentious issues and the
ones which would not have got into public domain started making head lines in
2007. Newspapers started taking RTI route as a source for news and for
investigative journalism. In the process the news media got a new opportunity
69
to reinstate their credibility and unleash an era of transparency in public affairs of

the country.
Volume I, No. 7 September, 2008
Transparency Review
Technological factors:
30000 color copy in an hour is available with new machines:

Scanners :
Colors: Yellow, Meganta, Cyan, Black Which are major color.

Ink: Pilofranic nature
Paper: Green shade paper
Machines
There are Three types of machine which used in producing or printing
newspaper or magazine. They are as below:
City line machine: German machine which has capacity to print 20 copy in
one print
Way Mack machine: Swiss machine which has capacity to print 24 copy in
one print
45 GSM machine: An Indian machine which is capable to print 24 copy in
one print
Indian and swits machine can print 35000 copy per hour.
70
Five Force Analysis

71
72
Substitute
Products
Bargaining
power of buyer
Rivalry among
competing
sellers
Threats from
new entrants
Rivalary:
Bargaining
power of
supplier
73
Major Newspaper daily in industry ranked on readership:

English Newspaper Daily
No
ALL publication
1
Times of India
2
Hindustan Times
3
The Hindu
4
Deccan Chronicle
5
The Telegraph
6
Mumbai Mirror
7
The Economic Times
8
DNA
9
Mid Day
10
The Tribune
(Source: Impact November 2008)
08 R 1
6789
3277
2243
1225
1008
775
743
676
571
429
08 R 2
6712
3523
2121
1151
1019
895
752
710
535
466
change
-77
246
-122
-74
11
120
9
34
-36
37
% change
-1
8
-5
-6
1
15
1
5
-6
9
English Magazines
No
ALL publication
1
india today
2
reader digest
3
general knowledge today
4
competitio success review
5
Outlook
6
Wisdom
7
Stardust
8
diomand cricket today
9
the week
10
business today
(Source: Impact November 2008)
08 R 1
2402
1594
1350
899
665
598
553
469
446
416
08 R 2
2141
1355
1225
794
573
477
438
400
336
326
change
-261
-239
-125
-105
-92
-121
-115
-69
-110
-90
% change
-11
-15
-9
-12
-14
-20
-21
-15
-25
-22
Competition is very high

The regionalism aspect is clearly visible in the newspaper sector. The print media
is further divided on the basis of the languages. Of the daily newspapers, about
46% are vernacular, 44% are in Hindi and 10% are English. Hindi and vernacular
language newspapers offer a local and regional flavour to their readers. The
content and circulation of English-language newspapers, on the other hand, are
largely focused on the primary urban centers. Approximately 7% of the
population in urban areas read English-language newspapers, compared to a
readership of only 0.3% of the population in the rural areas. (Source: IRS 2005) In
contrast to this, Hindi-language newspapers have a proportionately larger
readership in rural areas, in addition to their strong presence in urban areas, with a
readership of approximately 15% and 5% of persons in urban and rural areas,
respectively. The newspaper industry is regionally divided, with existing players
74
enjoying strong brand loyalty. For e.g. Times of India follows strong brand loyalty
in Mumbai and it was difficult for Hindustan Times to enter Mumbai.
The newspaper industry has relatively high entry barriers due to the strong brand
equity of existing players. Also, existing players have strong control over the
distribution network, making it difficult for new players to enter.
Newspaper
Jagran
Prakashan
Times of India
HT Media
Deccan
Chronicle
The Hindu
The Telegraph
Deccan Herald
Punjab kesari
Place of strong hold

Uttar Pradesh and
Uttaranchal
Mumbai
Delhi, Bihar, Jharkhand
Andhra Pradesh
Chennai
Kolkatta
Bangalore
Punjab
Source: Companies, Equitymaster
Political lobbing:
Times of India made the political lobbing with ministers in the government for
making the fdi restriction with other players and put pressure on the government
to restrict the entry of FDI in India. If FDI is allowed in India allowed then its
obvious that the domestic players competition will increase and their market share
will be reduced but they restricted the entry for certain period only but in 2002
government open the sector for FDI.
Tie up with foreign players:

To fight with domestic players and to increase the market share these local
companies made a tie up with the foreign players due to which the flow of capital
will increase as well as they will bring new technology and by this they will be far
ahead of their domestic counterpart and due to this their market share will
increase with not giving more stake to the foreign players and having the control
over the business by having 3/4 of the member in the board of the company.
Higher income for advertising in national players (regional players are

earning less):
Because the national players are having their foot hold in the whole country so if
any individual or a company wants to give advertising in news paper they will go
for national players only because of their presents every where the reach of
75
advertisement is also increased and due to that it becomes beneficial for the
company who is giving advertising in news paper but this kind of benefit is not
available for regional players because they are present in particular region only
and not in whole country so if a company gives any advertsient it will be
restricted to that particular region only.
Income of circulation:
Income of circulation is higher than income from advertisement for vernacular
paper and vice versa for national news papers that is the national players are
having their majority because of their presence in whole country the companies
are attracted to give ad in national level news paper due to this their reachness
will be high because of higher number of reader and due to that they national
players are having most of their income that is around 75% to 80% of their
income is from advertisement only but they are having only 15% to 20% of their
income from subscription because of their presence at national level and not
having that much presence at the regional level but for the regional level the main
source of income is from the subscription that is around 20% to 75% because they
are having presence in particular region only and due to that they are not having
much of their revenue from advertisement, their earnings are around 25% to 80%
earning only. And it also depends on the presence of that regional player in the
particular region.
Marketing Strategy:
New schemes in subscriptions by different news paper: now due to higher
level of competition in the newspaper business the companies are implementing
aggressive marketing strategies and coming with different marketing schemes due
to which they are able to increase their earnings and can increase their market
share for eg Divya Bhaskar had come in Gujarat with the schemes of coupons and
gift after collceting that coupon for one month and due that it sales was increased
tremendously but than after certain period of time its competitors like Gujarat
samachar and sandesh also came with the same scheme and at that time the sales
of divya bhaskar was affected.
Low switching costs increase rivalry: When a customer can freely switch from
one product to another there is a greater struggle to capture customers.
Low levels of product differentiation: It is associated with higher levels of
rivalry. Brand identification, on the other hand, tends to constrain rivalry.
Industry shakeout:
A growing market and the potential for high profits induces new firms to enter a
market and incumbent firms to increase firms to increase production. A point is
reached here the industry becomes crowded with competitors, and demand cannot
76
support the new entrants and the resulting increased supply. The industry may
become crowded if its growth rate slows and the market becomes saturated,
creating a situation of excess capacity with too many goods chasing too few
buyers. A shakeout ensues, with intense competition, price wars, and company
failures.
Family owned businesses:
Most Newspaper businesses in India are family owned and have a strong regional
focus. Moreover, due to lack of funds and localized nature of the newspaper
business, most of them have remained content in their own boundaries. For
example Jagaran Prakashan is Market leader in terms of market share only
because they have strongly grabbed the market of North to east region. Like wise
every company have their own competent area.
Newspaper
Jagran
Prakashan
Times of India
HT Media
Deccan
Chronicle
The Hindu
The Telegraph
Deccan Herald
Punjab kesari

Uttar Pradesh and
Uttaranchal
Mumbai
Andhra Pradesh
Chennai
Kolkatta
Bangalore
Punjab
77
New entrants:
Fragmented industry
The regionalism aspect is clearly visible in the newspaper sector. The print media
is further divided on the basis of the languages. Of the daily newspapers, about
46% are vernacular, 44% are in Hindi and 10% are English. Hindi and vernacular
language newspapers offer a local and regional flavour to their readers. The
content and circulation of English-language newspapers, on the other hand, are
largely focused on the primary urban centers. Approximately 7% of the
population in urban areas read English-language newspapers, compared to a
readership of only 0.3% of the population in the rural areas. (Source: IRS 2005) In
contrast to this, Hindi-language newspapers have a proportionately larger
readership in rural areas, in addition to their strong presence in urban areas, with a
readership of approximately 15% and 5% of persons in urban and rural areas,
respectively. The newspaper industry is regionally divided, with existing players
enjoying strong brand loyalty. For e.g. Times of India follows strong brand loyalty
in Mumbai and it was difficult for Hindustan Times to enter Mumbai.
The newspaper industry has relatively high entry barriers due to the strong brand
equity of existing players. Also, existing players have strong control over the
distribution network, making it difficult for new players to enter.
Newspaper
Jagran
Prakashan
Times of India
HT Media
Deccan
Chronicle
The Hindu
The Telegraph
Deccan Herald
Punjab kesari

Uttar Pradesh and
Uttaranchal
Mumbai
Andhra Pradesh
Chennai
Kolkatta
Bangalore
Punjab
78
Strong Entry barriers

Newspaper business has extremely strong entry barriers owing to strong brand
equity, readership loyalty and requirement for a wide distribution network.
Moreover, as advertising revenue in a region is generally absorbed by the top-two
players, in most cases it makes competition unviable.
Cost of production is low anyone can easily enter in the industry:

For any industry the major problem is cost of production. Here in this industry the
cost of production is comparative less and that thing is positive for new entrants.
New player can easily have their business
Common Technology:
In this industry role of technology is not that much visible. Only
different types of machine for printing. Scanning & packaging.
Low switching cost:
Cost of newspaper is very negligible thats why for an individual
switching cost to newspaper is low.
Intense Competition:
Due to low cost production and low switching cost for buyer, there N
number of newspaper and magazines are available which makes
industry more competitive. In such industry where competition is very
high, entry is not easy at all.
79
Threat from Substitute:

A. Television to newspaper:
1. News channels
In television constant update of the news is available so changes taken are speedy
and get that information at that particular time only whereas in newspaper no at
time update is available as well as you cannot able to get fresh news in newspaper.
Top 20 news channels and their share in over all TV channel
(source: TAM people meter system)
2. Marketers influence towards children to target:

In current era of advertising world, advertisers are focusing on children for
everything. Companies s have seen that television advertising can make an effect
on children which print advertising can not in 20 times
80
(Source: equity master Aug 29, 2007)
49% stake of FDI in television (print only 26%)

Television is the most competitive substitute of print media. The major plus point
of television is that government has allowed FDI in television up to 49% while in
print media it is only 26% allowed. This factor has the threat that television can
grow faster with the help of foreign players. Regional channels through television
players are penetrating in semi urban / rural area.
Advantages
(i)
It is most effective as it has an audio-visual impact:

The biggest advantage of television as a medium of advertising is it has both
the effect, audio and visual. An advertiser can use all the creative tools that
one can use in advertisement. Another good thing with television
advertisement is that it the only medium that uses two organ of human body
which are highly effective, eyes and ears. While the print media advertisement
only provide the visual effect but can not provide motion in it.
(ii)
With catchy slogans, song and dance sequences, famous personalities

exhibiting products, TV advertising has a lasting impact. For example, who
can forget Aamir Khan saying Thanda Matlab Cocacola or Sachin
Tendulkar in Pepsi advertisement.
(iii)
With varieties of channels and programmes advertisers have a lot of choice to

select the channel and time to advertise. Now channel have also stands for
specific area like News, Sports, Entertainment, Music channel. If we go more
specific then we have Business News and Cricket as sports channel.
(iv)
With regional channels coming up any person even illiterates can watch the
advertisements and understood it by seeing and hearing is another good
advantage of television.
81
Limitations
(i)
TV advertisements are usually expensive to prepare as well as to telecast

advertisement. The most expense in television advertisement is of production
of advertisement. An advertiser need to have director, models, music director
and also need to book a production house which is very expensive in nature.
Then after advertiser will have the expenditure of telecast of that
advertisement.
(ii)
With almost every manufacturer trying to communicate their message through

TV advertising the impact among the viewers is also reducing. Now-a-days
people are switching on channels whenever there is a commercial break which
is called Zapping in advertising terms.
82
B. Internet blogging to Magazine

1. Increasing internet user
Year over year the penetration level in internet is increasing up to 2005 it is
increasing like anything but in year 2006 shows the decreased figure than year
2005 and then again year 2007 reveals increasing trend in internet penetration.
The decrement in year 2006 can be because of change in its source.
YEAR
Users
Population % Pen.
Usage Source
1998
1,400,000
1,094,870,677
0.1 %
ITU
1999
2,800,000
1,094,870,677
0.3 %
ITU
2000
5,500,000
1,094,870,677
0.5 %
ITU
2001
7,000,000
1,094,870,677
0.7 %
ITU
2002
16,500,000
1,094,870,677
1.6 %
ITU
2003
22,500,000
1,094,870,677
2.1 %
ITU
2004
39,200,000
1,094,870,677
3.6 %
C.I. Almanac
2005
50,600,000
1,112,225,812
4.5 %
C.I. Almanac
2006
40,000,000
1,112,225,812
3.6 %
IAMAI
2007
42,000,000
1,129,667,528
3.7 %
IWS
Source: JuxtConsult, 2007

As many numbers of people penetrate to use internet, it can be harmful for print
media because as many number of people increase using internet big advertiser
will be attracted towards it. If advertisers start to be attracted by internet than they
will give advertisement on internet, share of print advertisement will decrease
because the budget of advertiser is fixed always.
83
Also the number of people who are regular user increased by 15% in 2007
compare to 2006. Those who are occasional internet user are increased by 212%
in year 2007.
Urban India Internet Users by Type, 2007
2007 (M)
2006 (M)
Total urban Internet users
30.32
23.6
Regular Internet users (at least once a month)
25.17
21.95
Occasional Internet users (less than once a
5.15
1.65
month)
Growth (%)
28
15
212

The some of the best things that newspaper providing is provided by internet also
and people use internet for that also. As given in below table that number of
people who are using internet for Job search, checking news and checking sports
which are also given by newspaper. The interest and habits of individual is getting
changed day by day.
Urban India Online Activities by Regular
Internet Users, 2007 (%)
Rank
Online Activity
2007
2006
Change
E-mailing
95
94
Job search
73
53
20
Instant
messaging
62
37
25
Check news
61
53
Online music
60
48
12
Chatting
59
49
10
E-greetings
58
57
Check sports
57
35
22
Online games
54
35
20
10
Dating/friendship
51
27
25
Classification of internet user based on users characteristics

URBAN POPULATION
URBAN POPULATION
LITRACY POPULATION
ENGLISH KNOWING
PC LITERATE
CLAIMED USER
ACTIVE USER
IN (MN)
250
205
77
65
46
32
Icube report 2007(source: PITCH FEB-2008)
84
Demographic break up of internet user

working woman
College student
school going kids
older man
young man
Non-working wonen
(source: PITCH FEB-2008)
85
Percentage
11
21
14
15
33
6
Demographic break up of internet user is showing the types of internet user and
other details of them. It is also a noticeable point for magazine because the
internet user includes woman (working and non working), college students, young
man and old man. Almost majority is covered here.
Advantages
(i) Information from all over the world is made available at the doorsteps.
(ii) User can see the advertisement at their own time and as per their requirement.
Limitations
(i) It is not accessible without a computer.

(ii) It is not very suitable for general public.
(iii) It is not suitable for illeterate and those having no knowledge about the
operation of Internet.
Online shopping:
Internet facilitates an individual to purchase any product while he/she is watching
an advertisement online. This facility is very useful when the target audience is
based on high on ID personality as per Freudian theory of personality for the
product like Dominos Pizza. While in news paper the reader has to visit that shop
and has to give the order.
86
2. Internet Blogging
Another big threat of internet is Blogging a specific blog for specific group
like:
1.
2.
3.
4.
5.
News
Cricket
Movies
Automobile lover
Music
and lots of other blogs are available online which are giving direct competition to
magazine. Magazines were the only medium to reach to specific target segment
one can reach to women segment to IT professional but after introduction of
internet blogging.
There is a positive thing for magazine is that still the internet blogging is not
considered as a creditable source.
The Top Ten sites internet users browse in India are the following:
1. Yahoo
2. Google India
3. Google
4. Orkut
5. Rediff
6. Youtube
7. Blogger.com
8. Windows Live
9. Rapid Share
10. Wikipedia
(Source: http://www.sybrant.com/blog/?p=59)
87
C. Radio:
Radio with Newspapers
Characteristics of Newspapers
Newspaper brings 'immediacy' to a communication. Newspapers also have the
authority of the written word, and are good at presenting detail. As a print
medium, the national press suffers from clutter and from the fact that the reader
can and does edit ruthlessly to avoid advertising.
What radio adds:

In planning
radio adds frequency with little zapping, and this is real frequency in that
exposures take place in real time; radio also reaches non-readers so it can
significantly increase coverage; in most sectors, adding radio also means
increased share of voice thus overcoming clutter
In communication
Radio brings intrusiveness to a press campaign, and there is less ad avoidance;
radio can bring to life ideas which might seem flat on the page; radio can more
strongly convey the brand's tone of voice (important for service brands); radio
88
brings brand messages closer to the individual, speaking in a more personal way
than press; radio allows brands to emphasize specific key times of day (press
reading is spread across the day)
Geographic variation
flexibility means radio allows geographical variation on top of a national press
campaign
Radio with Magazine:

Magazines are useful to advertisers because of the relationship they have with the
readers, who consume them in a personal way. They allow targeting by lifestyle
and interest group. In many magazines the ads are seen as part of the magazine
experience. Weaknesses of magazines include the fact that lead times can be very
long depending on the title's frequency of publication, the high levels of clutter,
and the reader's inclination to simply turn the page.
What radio add:
In planning
Radio adds frequency and there is little zapping; radio also extends coverage well
beyond the magazine readership; radio allows tighter timing - time of day, day of
week and even week of month; radio also offers a greater share of voice for most
categories, which means overcoming clutter.
In communication
Radio brings intrusiveness to a magazine campaign, and there is less ad
avoidance; radio can bring to life ideas which might seem flat on the page; radio
can more strongly convey the advertising tone of voice (important for service
brands); radio allows brands to speak to consumers close to certain activities driving, cooking, housework etc
89
In detail
Radio offers fast turnaround within the long copy deadlines of magazines, and the
opportunity for geographical variations
Advantages
(i) It is more effective as people hear it on a regular basis.

(ii) It is also useful to illiterates, who can not read and write.
(iii) There are places where newspapers reading may not possible, but you can
hear radio. For example, you can hear radio while traveling on road or
working at home; but you can not read newspaper. Similarly, while driving
you can hear a radio but cannot read a newspaper.
Limitations
(i) A regular listener may remember what he has heard. But, occasional listeners
tend to forget what they have heard in Radio.
(ii) The message that any advertisement wants to communicate may not be proper
as there is no chance to hear it again immediately. There may be some other
disturbances that distort communication.
(iii) In comparison to Television, Radio is less effective as it lacks visual impact.
D. Outdoor media:
Hoardings
While moving on roads you must have seen large hoardings placed on iron frames
or roof tops or walls. These are normally boards on which advertisements are
painted or electronically designed so that they are visible during day or night. The
advertisers have to pay an amount to the owners of the space, where the hoardings
are placed.
Posters
90
Poster are printed and posted on walls, buildings, bridges etc to attract the
attention of customers. Posters of films which are screened on cinema halls are a
common sight in our country.
Vehicular displays
You must have seen advertisements on the public transport like buses, trains, etc.
Unlike hoardings these vehicles give mobility to advertisements and cover a large
number of people.
Gift Items from manufacturers
When you buy a cycle, the shopkeeper sometimes gives you a key ring to hold the
cycle key. Some jewelers give small purse or boxes when you buy a jewellery.
Sometimes manufacturers give diaries, calendars, purse, etc. to buyers and
prospective customers. In all these items the name, address and telephone number
of the manufacturer, or trader or service provider as well as descriptions of the
products in which they deal in are printed. These items are normally items of daily
use given freely to the customers. While using, the user remembers the products
as well as the producer.
E. SMS advertising the new medium

The latest trend in advertising world is SMS advertising, which is growing at very
high rate only because of its own attribute. The attribute is that an individual will
always check the SMS before deleting it. Even it will not have chance for zapping
or zipping like in television commercials. Even by creating a database, the SMS
advertising can reach to the target audience.
Medium
Reach
Cost
Strike Rate
Television
Radio
Internet (Banner)
Email
PRINT MEDIA
Billboards
Moving Media
Telephone
Fax
Standard Mailers
One of the Highest

Medium
High
High
HIGH
Medium
Medium
Medium
Low
High
Very High
Medium
Medium
Extremely Low
HIGH
Medium
High
High
Medium
High
Good
Poor
Dropping
Extremely Low
HIGH
Medium
Medium
Medium
Low
Medium
Personal
Interaction
SMS
Low
High
EXTREMELY
HIGH
EXTREMELY LOW EXTREMELY

HIGH
91
High
The above table reveals the comparison of SMS advertising with other mode of
advertising. It is the only medium which has higher reach and strike rate with
lowest cost while in Print media reach, strike rate and cost are high. For small
advertiser the SMS advertising is more affordable and preferable, if advertiser
wants to advertise his product in print medium there are vernacular newspaper
and magazines available that have comparative less cost.
Bargaining power of Supplier:

Few major players
Though there are over 500 paper and newsprint production units in India, not even
10 per cent of theses are big or dynamic enough to turn out quality paper products
at a competitive price. There are three major players in supplying the raw material
of newsprint, which is used in printing the newspaper.
Hindustan newsprint Ltd. (HNL) - Calcutta

Tamil Nadu Newsprint and Papers Ltd. - Chennai
MP Rama Newsprint Ltd.- Mumbai
Mysore Paper mills Bangalore
NEPA papermills - Nepanagar
Over 60 per cent of the newsprint production in India is concentrated with a few
state-owned units by Hindustan Newsprint Ltd (HNL) and Tamil Nadu Newsprint
and Papers Ltd (TNPL).
Switching cost is low
92
Switching cost of newsprint is very nominal and there are options that easily
provide raw material with lower cost.
Short supply
The wood pulp which is used as a raw material of newsprint is in short supply.
The biggest stumbling block for production units keen on attaining self
sufficiency in wood pulp is the prevailing environmental laws, which prevent the
industrial plantations of private sector on degraded land stretches. The Indian
paper and newsprint industry has already urged the Government to amend the
laws with a view to permit them to make use of the degraded land for raising
plantations of fast-growing trees. But, the Government is yet to respond.
So many of the leading paper mills in the country have taken to social forestry
schemes under which small and marginal farmers are provided saplings and
know-how for raising plantations of fast growing trees with an assurance of a buy
back at a remunerative price. Many of the paper production units are now using
bagasse, rice and wheat straw instead. Though an estimated 55-million tonnes of
bagasse is available, only eight per cent is currently put to use for paper
production.
Many paper and newsprint production units are working towards becoming selfsufficient in wood pulp and other feedstocks, used in paper manufacturing. Like
Ballarpur Industries Ltd (BILT) has now drawn up a 20-million Euro plan for the
modernization and augmentation of the facilities at Sabha Forest Industries (SFI)
of Malaysia, acquired earlier.
South India-based Seshasayee Paper and Board Ltd, is now close to
commissioning its new pulp production mill designed for boosting the pulp
production. Once the expanded pulp mill capacity is in place, the company will
initiate work on boosting its paper manufacturing capacity with an additional
investment of Rs 3,000-million. The modernization programme will see its inhouse pulp production going up to 440-tonnes a day from 240-tonnes a day.
Differentiated input (quality, cost value added )

Differentiation input is the only point which shows the bargaining power of
supplier over here. There is at some part differentiation in quality of newsprint is
higher in Hindustan newsprint Ltd. (HNL) Calcutta and TamilNadu Newsprint
and Papers Ltd. Chennai thats why they are having the nearly 60% share of
newsprint business. Another thing they are in business from many years so they
do have the learning curve and experience benefit.
93
Major customers of suppliers.

1.
2.
3.
4.
5.
Jagaran Prakashan
BCCL
Hindustan Times
Deccan Chronicle
Malaya Manorama
Threat of forward integration:

There is not any kind of chance of threat of forward integration of supplier in this
industry because of:
1. Lack of Financial resources
2. Not having big Brand name
3. Not having experience in this business
Expansion in capacity
Tamil Nadu government-owned enterprise TNPL has unveiled an
ambitious action plan to invest Rs.10,000-million for expanding its
production capacity to 4,00,000-tonnes a year from the present 2,45,000tonnes. TNPL known for its range of products including printing and
writing paper and copiers and newsprint, is also mulling to put up a
cement production unit that would make use of waste lime sludge
generated from its paper-making operations and fly ash generated in its
power boilers.
Other Big players entry.
On the other hand, Paper Boards and Specialty Papers Division (PSPD) of
the FMCG (Fast Moving Consumer Goods) giant ITC has gone in for an
innovative range of products with an eye on emerging as the largest outfit
in the paper production sector. Our specialization in producing valueadded paper boards has made us realise the huge potential for creating
gifts and toys for 200 million children, from the new borns to 15 years of
age, is ITCs aim. Its Bhadrachalam facility is now producing 4,00,00
tonnes of paper boards and fine paper a year.
The PSPD has a unique business and revenue generation model. It started
operations in 1979 in Bhadrachalam primarily because it was a forest area
and provided access to raw materials. However, by early 80s strict
94
regulation on the use of forest resources was introduced and this forced
PSPD to look for alternative sources of raw materials. Thus it forayed into
the farm forestry programme by tying up with small and marginal farmers
to raise plantations of fast growing trees.
Export of paper and other things are ban so suppliers power will increases due to
domestic purchase:
Bargaining power of Buyer:

There can be three types of buyer in the print media industry and they
are as below:
1. Advertising Agencies
2. Small and medium companies
1. Advertising agency:
The advertising agencies are the first layer buyer of this industry. Basically they
play the role of mediatory, they contact different corporate or corporate contact
them to make corporate promotion strategy and promotional activity also. Agency
make advertisement and they also contact appropriate media to publish or telecast
the advertisement.
The advertising agencies do have little influence on print media players because
they are the mediatory one and because of them industry player gets advertiser.
Even the switching cost for agencies is not much higher but again the preference
of advertiser also plays a vital role over here, if the newspaper or magazine does
95
have strong brand name like TIMES OF INDIA then agency can not suggest
advertiser not to advertise on that particular newspaper.
2. Small and medium companies:

The small and medium companies can not afford the expense of agencies. So,
they craft the advertisement in house and then contact newspaper or magazine to
publish their advertisement. In such situation they do not have any influence on
newspaper or magazine.
3. Consumer
Consumers are the common people who purchase newspaper or magazine. They
purchase it for news purpose or reading habit. They purchase it in very nominal
prices so they do not have any influence to print media. They are the real
consumer and only because of them industry is having existence but they do not
have influence more than content of any news which is the most key success
factor of any newspaper or magazine.
Overview of Five Force Analysis

Threat from new
entrants/entry
barriers
Low
Low to
moderate
Moderate
Moderate
to high
High
Rivalry
against
competitors
Threat from
substitute
Bargaining
power of
buyers
Bargaining
power of
suppliers
96
B C G Matrix
The Boston consulting groups (BCG) Growth-Share Matrix.
One of the first and best known of the portfolio model is the growth share matrix
developed by the Boston consulting group. It analyzes the impact of investing
resources in different businesses on the corporations future earnings and cash
flows. Here the vertical axis indicates the industries growth rate and the horizontal
axis shows the business relative market share.
The Boston consulting groups model of print industry
Jagran
Prakashan
1.5
BCC
L
1
1.14
Publication group
Jagran prakashan
Bennett Coleman & co
The Hindustan times
Deccan chronicle group
Malayalam Manorama
group
ABP group
others
H
T
0.9
0.87
0.5
0.3
0.35
D
C
97
A
B
P
M
M
o
t
s
0.1 0
0.19 0.18 0.15 0.12
market share
35%
30.71%
12.18%
6.60%
5.18%
6.28%
4.05%
The growth share matrix assumes that a firm must generate cash from businesses
with the strong competitive position in the mature market. Then it can fund
investment and expenditures in industries their represents attractive future
opportunities. Thus, the market growth rate on the vertical axis is a proxy measure
98
for the maturity and attractiveness of an industry. The model represents business
rapidly growing industry as more attractive investment opportunity for future
growth and profitability.
Similarly, the relative market share is a proxy fir its competitive strength within
its industry. It is computed by dividing the businesss absolute market share in
dollars or units by that of the leading competitor in the industry.
Resource Allocation and Strategy Implications of print industry

Each of four cells in the growth-share matrix represents a different type of
business with different strategy and resource requirements.
In the B C G matrix of print industry the overall growth of print media is shown is
21% Here we had taken 6 top companies having the maximum market share .the
companies are 1.jagran prakashan 2.bennett Coleman & co ltd. 3.hindustan times
4.malayam manorama 5.ABP group ltd. & others. Here from the matrix sheet it
has been seen that most of the companies are in the growth stage. And after
calculating the relative market share it has seen that most of the companies fall in
the star group or the build (question mark) group.
1. Strategy recommendation for star (high growth, high market

share):
Stars generate large amounts of cash because of their strong relative market share,
but also consume large amounts of cash because of their high growth rate;
therefore the cash in each direction approximately nets out. If a star can maintain
its large market share, it will become a cash cow when the market growth rate
declines. The portfolio of a diversified company always should have stars that will
become the next cash cows and ensure future cash generation.
Here in print industry jagran prakashan is the market leader with the growth &
share of 18% and 35% respectively. Its have newspaper dainik jagran in Hindi
language which is highest sold daily in India with a strong base of 16.5mn readers
(IRS R2 2007) and a daily circulation of 2.5mn (ABC JJ 2007) First published in
1942 as Jagran, the paper is now published in in 37 editions (five launched in the
last couple of months) across 11 states. Dainik Jagran enjoys the distinction of
maintaining its lead over the other Hindi newspapers, and its readership base is
substantially higher than the Top-five English dailies combined. JPL has
selectively entered the English Print Media with the launch of two new offerings
viz., City Plus (English weekly infotainment) and I-Next (bilingual compact
tabloid) in its existing as well as new markets. It also has Hindi magazine sakhi
which have high market. And also it joined with the TV 18 for Hindi/regional
business dailies .its highly active in northern part of India.
99
Strategy for leader (jagran prakashan):

Expand (cover) the market:
As per readership survey done by IRS, It clearly shows that Rajasthan and
chattishgarh are the open market for the jagran prakashan. Here it interviewed
13654 readers in Rajasthan. It clearly shows that dainik bhaskar is the market
leader and it covers 5744 reader in survey. And in chattishgarh it interviewed
2606 reader dainik bhaskar is the market leader it covered 1095 readers. So its
shows positive market foe the jagran prakashan. Because jagran prakashan cover
entire Hindi belt and it already cover 40% of the population there is one survey by
angel research shows that 68% of the population of the India read Hindi language
also low newsprint cost help the jagran prakashan because it purchase 65%
newsprint from the domestic market. So its shows positive market for the jagran
prakashan.
New edition and alternative media:
100
For maintain the market share jagran prakashan should have produced new
edition and try to add more supplement to attract the costumer. Because print
media companies enjoy extremely high operating leverages once their edition
launches stabilized and start generating strong advertising revenue. Due to it
generates free cash flow and thus they invest certain alternatives which generate
good income for them. Radio is the growing industry right now. Growth of radio
industry in 2007 is 325 as compared 2006 are 28% it shows 4% increased in one
year, also its competitor H T MEDIA & BCCL have there own radio station which
shows positive growth. So radio should be a profitable venture for the jagran
prakashan.
2. Strategy recommendation for build(question mark):

Question marks are growing rapidly and thus consume large amounts of cash, but
because they have low market shares they do not generate much cash. The result
is large net cash consumption. A question mark (also known as a "problem child")
has the potential to gain market share and become a star, and eventually a cash
cow when the market growth slows. If the question mark does not succeed in
becoming the market leader, then after perhaps years of cash consumption it will
degenerate into a dog when the market growth declines. Question marks must be
analyzed carefully in order to determine whether they are worth the investment
required to grow market share. In this group relative market share of the company
is lower and market growth rate is high. This group shows market opportunity in
the market. All players who are come under this group are trying to increase their
market share.
Here companies like BCCL, HT EDIA, D C, ABP LTD, MM & others are come
Strategies for Bennett Coleman & co:
As per growth wise Bennett Coleman & co is the highest in India with the growth
rate of 22% which is higher than market leader jagran prakashan.market share of
BCCl is 30.71 which is lower than market5 leader.
The Times Group is one of the largest media services conglomerates in India. It is
headed by brothers Samir and Vineet Jain of the Sahu Jain family. It reaches out
from:
11 publishing centers, 15 printing centers, 55 sales offices, Over 7000 employees,
5 dailies including two of the largest in the country with approx 4.3 million copies
circulated daily , 2 lead magazines , 29 niche magazines ,Reaching 2468 cities
and towns , Turnover in excess of USD 700 million .readership of times of India
is less then dainik jagran because of language problem.
101
Strategies:
Come with flanker product in northern region:
Northern region is the very big region. In the northern region HT MEDIA and
Jagran Prakashan have very good market share. Here BCCL still doesnt find a
space at northern region. So if it have ti grab the market share it should have to
come with the newspaper with specific hindi language. Because in the northern
part most of the people prefer hindi language newspaper.
AD rates:
Compare to the other BCCL charged higher rates. So its shows negative impact in
the revenue growth .there is one survey done by Angel research shows that times
of India loose it advertising revenue up to 5% in the year 2006 because of high ad
rates,
Strategy for (followers) HT Media, Deccan Chronicles, Malayala

Manorama and A B P Ltd.:
LESS sensitive towards newsprint prices :
HT MEDIA and Deccan chronicles are high sensitive toward newsprint price.
News print cost of Deccan chronicles is 432cr and cost of H T MEDIA is 204.
which is higher than market leader. So news print cost of the both company
account almost half of the companys expenditure. Because Deccan chronicles
purchases 90% of its newsprint from the international market. And HT MEDIA
purchase 75 % of its newsprint from the international market. This shows the
impact on its revenue. Because newsprint price in international market is rise up
to 10 to 12% its shows 2% increase in the newsprint price. Because of the hike in
price company have to pay more money to the newsprint provider. So from our
point of view follower should have to purchase newsprint from the domestic
market, newsprint quality of the domestic newsprint is very good . even B C CL
and Jagran prakashan also purchase newsprint from the domestic market.
102
Established relationship with the local advertiser and the advertising

agency:
Most of the revenue come from the advertising. So it is important to maintain
relationship with the advertiser and advertising agency.
Editorial content:
Content should be specific and attractive. Content of the HT MEDIA and Deccan
chronicles magazines and newspaper is not very good. So for improving the
content it should have hire intelligent and creative editors and journalist.
G.E 9 CELL Matrix of Print Media

Business strength
weightage
BCCL
Score
HT
Score
Jagran
Score
Market share
0.2
1.6
1.6
10
Cost of production
Bargaining power of
buyer
Bargaining power of
supplier
0.1
0.8
0.8
0.1
0.8
0.7
0.1
0.7
0.15
10
1.5
0.2
0.15
8.5
Profitability
Growth
Brand image
Score
M.M
Score
1.2
0.8
0.8
0.7
0.5
10
0.6
0.6
0.7
0.9
0.6
0.5
0.9
1.2
1.05
0.9
1.8
1.4
1.6
1.2
1.275
1.2
1.35
0.75
0.9
8.475
7.3
8.85
D.C
6.1
Competitive Strength/Market Position

Industry Attractiveness
Weightage
Rating
Score
5.2
103
Growth
0.25
1.75
Competition
0.20
1.20
Opportunity/Threat
0.25
1.75
Political factor
0.15
0.60
Uncertainty & Risk
0.15
0.75
Total
6.05
For the GE nine cell matrix on the Y axis we have define Industry Attractiveness
that is measured on the parameter like Market Growth, Market Size, Industry
Profitability, Intensity of Competition, Government Rules and Regulation and
Domestic Economic Condition.
Market Growth is important because by this parameter we can find that that
industry is growing at which rate if is higher then GDP growth rate then industry
Growth is Good define Kotlar and it is lesser then GDP growth rate then it is
considered as a attractive market. Indias GDP of last three year is about 8% while
market is growing at a rate of 18-19% last eight Years.
Source: http://www.assocham.org/prels/shownews.php?id=1281
GE 9 Cell matrix
JP
HT
BC
CL
jp
D
C
104
M.
M
Competitive Strength Point
GE9 cell matrix it is about the study of the industry attractiveness that is about if
the investment in the industry is made than will it be profitable to stay in that
industry for a long period of time and will be able to earn a good profit. Generally
9 cells are studied for position of that industry and its future conditions. This
includes study of all the factors affecting the industry like political factors which
is one of the main factors taken in to consideration while studying the
attractiveness of that industry for print media the factors taken in to consideration
FDI limit that is 26% for news segment and 100% for non news segment. This
may be prove to restrict or may be proved to be beneficial for the company. Even
the government may put restriction by putting control over the functioning of the
companies through several norms and regulations putting ban on certain kinds of
advertising. And due to that the political factor has been given the weightage of
15% out of 100%.
.
105
Growth rate:
Then after growth rate of that particular industry is taken in to consideration
because on the basis of the growth rate only the position of the company in the
product life cycle can be known. In print media industry the growth is taken to
study before investing last 4 years growth is shown in the below figure.
(Source: Pitch February 2008)

It shows that there are ups and down in the industry but the industry is in the
increasing stage which is seen from the year 2004 to 2007. And the weightage
given to growth of the industry 25%.
level of competition
It is very high in the industry and the players are always fighting for making the
highest share and covering the larger market and try to earn maximum from
advertisement and circulation and due to that more weightage is given that is of
20%.
Opportunity and threat:

It related to that particular industry are taken in to consideration before entering
in to that particular industry, it just like pros and cons of that industry if the
opportunities in that industry are more than the industry is in the growth stage. In
the print media also there are many opportunities available as compare to threat.
Like as India is a developed country industries are growing and due to that to
make buyer aware about their product and due to that income for print media is
going to increase.
106
Even the literate population is also increasing in India. Due to that readership of
newspaper will increase. But as the literacy level increases the people are more
attracted towards the internet usage which is one of the biggest for the print media
advertising.
.
One of the biggest opportunities for the print media advertising is that still 359
mn literate adults dont read any publication.
Now number of 24*7 readership has been increased which is giving constant
update of news and it is the major threat for print media. The weightage given to
opportunity and threat are 25% because they are playing important role for print
media advertising.
Uncertainty:
If in any industries if uncertainty is more, than development of that industry is
quite difficult, but there is no factor as of uncertainty in the print media
advertisement, though external factors are affecting to the industry but they are
common for all the industries. Here uncertainty is less so it is given less
weightage of 15%.
107
Business strength
And on the basis of the information the ranks are given to the factors taken in to
consideration which are necessary to study the attractiveness of the industry, the
highest rank is given to those factors which are very important for the industry
and which affect the development of the industry. the highest rank is given to
those factor which are very important for the development of that industry. In this
industry the highest ranks are given to the factors like growth rate and level of
competition which plays an important role for the development of the industry.
Now after considering industrial strength and its attractiveness, the study of
different players and their position in the industry is necessary to be studied on the
basis this study position of different players is studied by taking certain factors
taken in to consideration and different weight are assigned to different factors.
Now the first point taken in to consideration is the relative market share of all the
major players on the basis of that the position new entrants can be known. And
due to that highest weightage is given of 20%.
And on that basis different ranks are given to different players in the industry on
the basis of their market share in the industry.
Company name
Jagran Prakashan
BCCL
HT
D.C
M.M
Market share
35%
30.71%
12.18
6.6%
5.18
Rank
10
8
8
6
4
Cost of production is an important point to study the earnings of that company, if

the cost of production is high than it will directly affect the earning of the
company. But it was seen that in the cost of production it includes cost of print
includes paper, ink and plates. Generally if price of any production material
increase it will affect to all the players of the industry, eg increase in overall price
of paper affect the profit of all the players.And the company who is facing this
kind of problem less are given the highest rank and the weightage given to this
factor is 10%.
Bargaining power of buyer and supplier:
108
Bargaining power of the buyer is low for the industry and due to that less
weightage is given of 10% only. And even the bargaining power of the the
supplier is also less in India because in the industry most of the newsprint is
imported and it is 70%, so less weightage is given of 10%.
Profitability:
It is the major point to be taken in to consideration if the current players are
earning good profit then other players will be attracted to invest in the business,
but if the current players are facing difficulty in earning good profit then it will
not motivate others to invest in the print business and on that weightage is given
of 15%. And the ranks are given on the basis of their profit where BCCL got the
highest rank of 10 and Malaya manorama got the lowest rank of 6.
Growth:
The growth factor is taken in to consideration that in future is there any further
growth in the business and on that basis it is decided whether to invent in the
business or not, here the growth of BCCL is higher that is of 22% so BCCL is
given the highest rank, then after Jagran prakashan got the share of 20% and rank
given is 8, the lowest rank given to MM of having growth of 12% and the rank
given is 5th. Weightage given to the growth is 20%.
Brand image:
The weightage given to the point is 15% because in many areas sales are depend
on the brand image of that particular company. Here jagran prakashan is given
good brand image in whole northern region and having 40% of Indias readership
and it is given the highest rank and than after the highest rank is given to Times of
India of 8.5, and the lowest rank is given to Deccan Chronicle because of its late
try in many southern region and the rank is 5th.
And after the given weightage the score is calculated on the basis of which the
allotment is done in different cell of the matrix and on that basis the position of
that particular player can be known and from the 9 cell matrix of the print media
the position of the top 5 players can be known and on the basis of their score the
allotment is made in the different cell, Jagran prakashan, Bennett and columan
company Ltd and Hindustan Times lies in the same cell of high priority cell and in
that the company are in growth and build stage. They are in this cell because they
are having the highest market share and properly using their resource properly.
But the Deccan Chronicles and Malaya Manorama lies in the cell of medium
priority where the hold is required because they are facing high competition, not
using proper resources, and newsprint cost of the daccan chronicles is higher
because it imporet 90% of the newsprint from the international market. Here the
109
benefit for the daccn chronicles is that it can easily import from outside at low
cost. So if these companies properly use the resources then only they can move to
upper cell and eve they have to study properly the region in which the leader are
not present in that area these player can cover the market share.
Driving Force
The force due to which the industry is driven and due to which its earning is
directly affected, forces may be directly or indirectly affecting working of the
110
industry. The driving force for the print media are government policies, literacy
level, increase in industrialization, increase in the young population.
Government policies:
Government policies directly affect the working of the industry that is if the
government make the smaller change in the policy related to media it will directly
affect the print media. When in budget the service tax on the on the space for
advertising was increased from 10% to 12% for the television but it was not
increased for the space for advertising in print media and due to that cost for
advertising in television media and due to that there was increase in the demand
for print advertising and it is having the maximum reach to different region of the
country which is beneficial for the corporate.
Growth of Small Scale industries:

From the above table it is seen that the growth of small scale enterprise increases
due which number of advertising in the news paper will increase because
generally small
SMALL SCALE ENTERPRIZE
No. of units ( lakhs)
130
125
128.44
120
123.42
115
118.59
110
105
113.95
109.49
100
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
Source: www.rbi.org.in, Economic Survey 2007-08, chapter 8
Scale Company would like to target the customers in the regional area only and
the print media is the best source for reaching the regional areas of that particular
state, with the help of advertisement they would like to increase their sale and the
regional level of newspaper are the best platform to reach their target customers.
Increase in level of literacy:
Now the level of literacy also increases in India and due to that it is directly
related to increase in revenue of the print media, because people are more
111
interested to know about things going around them, and now the newspaper are
also providing more information about stock exchange and people are also
attracted to know about the stock market which also plays an important role in the
increase of print media and so print media is directly affected by the increase in
level of literacy.
Revenue Drivers
112
Generally most of the company depends on the revenue to grow further and to
increase their business, if the company is not able to earn notable revenue at that
time its future is under scanner.
In print media advertising the revenue drivers are the major sectors that spend in
print advertising. Here we have mentioned all the top 10 sectors that spend more
in print advertising. They are as given below:
Top Sectors
% Share
Education
17%
Services
12%
Banking/Finance/Investment
10%
Auto
7%
Retail
5%
Corporate/Brand Image
4%
Durables
3%
Personal Accessories
3%
Telecom/Internet Service
Providers
2%
Personal Healthcare
2%
(Source: Adex India (A Division of TAM Media Research))
Education Sector
14% rise in Print advertising of Education sector during Jan - May '08 compared
to same period in 2007. Educational Institutions' garnered a high share of 67% in
Print during Jan - May '08. Tamil Nadu leads in advertising of Education sector in
Print during Jan - May '08. Planman Consultant India Pvt Ltd' was the number
one advertiser of Education sector in Print during Jan - May '08. Educational
Institutions' had max. share ( i.e. 67%) of overall Education sector ad pie in Print
followed by 'Coaching Centre/Competitive Exam' and 'Computer Education' with
15% and 10% share respectively.
113
(Source: Adex India (A division of TAM Media Research)

Among the Sub Categories of Education sector, max. Advertising growth of 46%
was registered under 'Computer Education' in Print followed by 'BPO/Call
Centers' and 'Vocational Training Institute' with 40% and 32% share respectively
during Jan - May '08 compared to Jan - May '07. Planman Consultant India Pvt
Ltd', 'Vellore Institute of Technology' and 'SRM University' were the top 3 key
advertisers of Education sector in Print during Jan - May'08. During Jan - May
'08, Tamil Nadu, Andhra Pradesh and Uttar Pradesh were the Top 3 states in
advertising of Education sector in Print. Top 5 states accounted for 57% of overall
Education sector advertising in Print during Jan - May '08.
During Jan - May '08, Non Metro Newspapers had the highest share of Print
advertising of Education sector i.e. 63% followed by 'Metro' and 'Mini Metro'
Newspapers with 24% and 13% share respectively. Since 2004, there is steady
increase in number of advertisers of Education sector in Print.
Service Sector:
Services sector includes categories like Properties/Real Estate, Internet /SMS
service, DTH Service Providers, Hospitals/Clinics, etc. Top 5 segments accounted
for more than 75% share of overall Services sector Print advertising during 2007.
Hospital/Clinics' and 'Travel & Tourism' had close competition for the 2nd
position with 15% and 14% share respectively during 2007.
114

Tata Sky, 'New Era Entertainment Network' and 'Air India' were the top 3
advertisers in Services sector in Print during 2007. During 2007, 4 of the top 10
advertisers in Services sector belonged to 'Travel & Tourism' segment and 3 from
'Airlines' segment. The top-10 list of new entrants in Services sector advertised in
Print comprised 6 brands of 'Properties/Real Estate' and 3 from 'Internet/SMS
service' segment.
Banking/Finance/Investment:
Print advertising of 'Financial Industry' up by 10% during FY 2007-08 compared
to FY 2006-07. Banking & Financial services' segment had the largest share of
63% of 'Financial Industry' in Print during FY 2007-08. SBI' was the number one
advertisers in 'Financial Industry' advertising in Print during FY 2007-08. Metro
and Non Metro Newspaper together accounted for 90% of overall Financial
brands advertising during FY 2007-08.
115

Top 10 Financial brands share aggregates to 14% of overall 'Financial Industry'
advertising share in Print during FY 2007-08. Public Issues of 'DLF ','Emaar
MGF', 'Reliance Power' and 'Omaxe Ltd' made it to the Top 10 brand list of
'Financial Industry' during FY 2007-08.
116
Opportunities
Increasing readership
The readership in print media in the newspaper and magazines sows favorable
data for the advertising in newspaper and magazine. 45 % of any publications
readership is in the urban area.
The above graph shows that, even globally the majority people are interested in
reading hardcopy rather than the digital content in the all age groups.
There is appositive impact in the newspaper and magazine advertising industry, is
that it boost up the advertising publishing in the print media.
117
According to the survey majority respondents including male and female denies
that they will not read their favorite magazines or newspaper if it will be available
in digital form. This will have the good opportunity for the newspaper and
magazine advertising even globally
Literacy levels
According to NRS 2006, literacy levels in India have risen from 69.9% to 71.1%.
Literacy levels in urban areas at 85.3% witnessed a 90bprisewhereas rural areas at
64.8% witnessed a higher rise of 120bp during2006.
Moreover, readership (dailies and magazines combined) increased to222mn from
216mn. This has led to significant scope for growth for newspaper publications in
terms of untapped potential readers.
The fact that out of the359mn people in India who can read but do not currently
read any publication, 68% can read Hindi indicates strong potential for
readership growth. Also, 20mn of these literate non-readers belong to the upscale
SEC A and B segments (higher socio-economic brackets), which can help
publishers attract strong advertising revenues.
Geographical Expansion
The leading players are expanding their geographic area in the country as seen in
the following table
Publishing House
HT Media & BCCL (JV)
New Edition
MetroNow
Segment
City-centric Daily
Tabloid
Region
Delhi
Ht Media (JV with WSJ)
Mint
Times of India
Economic Times
(Gujarati)
Bangalore Mirror
City Plus
Times of India
Jagran Prakashan
118
Financial Daily
Delhi, Mumbai,
Bangalore
Regional Financial Daily Gujarat
Daily Tabloid
Free English
Infotainment Weekly
Jagran Prakashan
I-Next
Bilingual Daily
Business Standard
Business Standard Regional Financial Daily
(Hindi)
Deccan Chronicle
Financial
Financial Daily
Chronicle
Source: PWC Waterhouse report
Bangalore
Delhi/NCR,
Bangalore
UP, Uttaranchal
Delhi, Mumbai
Hyderabad,
Chennai
Because of the geographical expansion done by the major players the reach of
newspaper will also increase and the local as well as national advertiser will get
the benefit of this expansion.
The expansion is also done world wide of Indian newspaper in which they are
publishing the advertisement. The players of newspaper and magazines are also
targeting the NRI population and publish the newspaper and magazine. For e.g.
List of overseas editions for many dailies
1.
2.
3.
4.
5.
Sandesh weekly in Chicago

ABP Fortnghtly in US
Malyalam and Madhyaman Manorama daily in Dubai, Buhrain
Gujarat Samchar weekly in New York
Divya Bhaskar Fortnightly in Newyork
Demographic expansion
Age % of population
Under 15 years
Between 15-59 years
Above 60 years
Population Demographic Shift

1997
2002
37.20%
33.50%
56.10%
59.30%
06.60%
06.90%
2007
30.00%
62.30%
07.50%
119
There is an increase in the demographic population shift because of this the

consumption of newspaper and magazine is also increased and the advertiser will
have the opportunity to giving the advertisement in particular segment.
The advertisement related to younger children could be shown in their
supplements like Bal Bhaskar issued by Divya Bhaskar.
The advertising targeting to the group of above 60 years age group like
advertisement of financial services, insurance, etc.
Demographic Transformation Of India

(In USD)
POPULATION (MILLION)
2001-02 2005-06 2009-10(E)
Rich (Above 115,000)
2
9
20
High Income (57,000 115,000
9
17
33
Consuming class (23,000 57,000) 48
74
120
Working class (10,200 23,000)
221
285
404
Needy (Below 10,200)
726
710
613
(Source: FICCI PWC Research)
120
As there is a continuous increase in working class and needy class, the reach ness
of newspaper and magazines will increase in the offices, at homes, during the
traveling, etc.
Service Tax
There is not any service tax is applied on the print ad space, as a result any big
player can have the opportunity to give the advertisement in full page and it can
also increase the frequency of the advertisement.
121
Threat
Online Advertising
Online advertising is a one type of digital form of print advertising, the
advertising spend on internet is also increasing at 32 % in 2007.Many companies
in India started online advertising to reach the public faster- it is in fact, a
supplement to traditional advertising. For example, to promote admission to
professional courses or for various competitive exams, the young and educated
segment has to be tapped. The changeover has started and experts see a promising
future for online advertising which is growing rapidly in India as the internet
users increases,
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
No. of Internet Users in India

14,00,000
28,00,000
55,00,000
70,00,000
1,65,00,000
2,25,00,000
3,92,00,000
5,06,00,000
7,20,00,000
12,00,00,000
Source: Advertising Express, August 2008, E-Advertising, pp. 17
Even the various sectors are also interested to do the advertisement online, as the
following table shown. The online banner ad spend per Internet user is only about
$ 1.20 (Rs 52.50), which could be $ 1.60 (Rs 70) by the end of the year,
Sectors
Telecom
Financial Services
Technology
Travel
Automobile
Consumer Durables
FMCG
Online Services
Entertainment
% Spends
6
24
11
12
11
9
5
11
7
Source: Advertising Express, August 2008, E-Advertising, pp. 17
122
Almost all the leading dailies have their internet editions. It is used by the
advertisers to reach the NRI. Many dailies provide e-paper version with search
options like
Monetized by dailies like Hindu
Free access in the case if TOI and HT
Declining reach in Urban
For any newspaper or magazine the most powerful factor is its reach that how
many people read it in particular area or region. The reach of print media in urban
area is declining in was 46% in 2007 compare to 48% in 2006. This figure shows
the negative trend to newspaper and magazine players
24*7 news channels on TV.
As the numbers of news channels are increasing, it will create a threat for the
newspaper, because the frequency of the advertisement is high as compared to the
newspaper. In the magazine the lead time is very high, so it might be not
preferable for the industry players for giving the advertisement.
Blogging on Internet
As the different types of magazine target to the different audience, the blogging
on the internet is also target to groups with equal interest. So it will create the
competition for the circulation of magazine and it will have an impact on the
advertiser also. The advertiser will go for the online advertising.
123
Key Success Factors

Reach ness:
As compared to the other media vehicle, the reach of newspaper and magazines
are high. According to the RNI there are 18, 07, 38,611 different newspaper
copies are circulated daily, including urban as well as rural area. 8,668 no of
magazines are available in different language in different region in India. The
circulation of
Business Today - 4,16,000
Business India - 2,91,000
Out Look Business- 2,26,000
Business World 2, 24,000.
Advertisers have the different target segment according to their product need and
they can have the benefit of these high reach in of the magazines
Preferred Segmentation
The newspaper and magazines have their own different segments. The advertisers
have a great benefit for this, because they get the proper media vehicle for giving
their advertisement to their targeted audience. For example the ads related the
beauty products will target the womens magazines. Corporate advertisers will
prefer the Business magazines.
The Times of India has launched the Education Times as additional supplement,
in which it has advertisement of all Educational Institution, job Portals, etc.
124
BIBLIOGRAPHY
BOOKS :
1. Jaishri Jethwaney and Shruti Jain, Advertising Management, Oxford higher
educatio, 2006, pg 467 486.
2. Kruti Shah and Alan Dsouza, Advertising & Promotion an IMC perspective,
Mcgraw Hill companies, 2008, pg 670 674.
3. Anil Varma, Advertising Industry Trends and Regulations, Prentice Hall of
India Pvt Ltd, 2004, pg 12 88.
MAGAZINE :
1. Kruti Shah, An overview of Indian media, IMPACT, November 2008, pg 17
20.
2. A Sengupta and Noopur Agrawal, E Advertising , Advertising Express,
August 2008, pg 12 18.
3. Deepti Aggarwal, Print continuing the growth streak, Pitch, February 2008, pg
46 52.
4. Pitch bureau, Television Holding the ground, Pitch, February 2008, pg 56 60.
5. Jayshree Maji, Outdoor Gaining from clutter, Pitch, February 2008, pg 64 66.
6. Deepti Aggarwal, Internet weaving a wider net, Pitch, February 2008, pg 70
74.
7. Purva Panchal, Radio More music to ears, Pitch, February 2008, pg 78 82.
8. Chandrashekhar and N Shridhar, Online advertising, Advertising Express,
September 2008, pg 33.
REPORT :
1. Economic survey 2007-08, Chepter-8
WEBSITE :
1. www.ciiionline.org
2. www.indiamart.com
3. www.economictimes.indiatimes.com
4. www.Thompsonrouters.com
5. www.adindia.com
6. www.adex.com
7. www.afaqs.com
8. www.equitymaster.com
9. www.pib.com
10. www.nic.com
11. www.angelbroking.com
12. www.tamindia.com
13. www.exchange4media.com
125

Pest Analysis of Advertising Industry India

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pest Analysis of Advertising Industry India

Uploaded by

Copyright:

Available Formats

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Figure 1.1 Markets and consumer behavior

Markets and consumer behaviour

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Figure 1.2 Media of Advertising

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

programme which is filled by advertisements of products and services. There are

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Gift Items from manufacturers

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

After bottoming out in July 2002 at US $430MT, newsprint prices were on a

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

behind contemporary advertising is to generate a demand by manipulating the

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Indian Advertising Industry size

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

the advertisement itself compelling enough to stop us from switching channels or

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

consequently, is known as digital information. All digital information can be

Television recording The days of television videotape recording are quickly

Internet Spyware Downloading entertainment from the Internet, such as

Ad Skipping and Blocking

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

For marketers these new technologies should be monitored closely as they

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Function of Advertising Agencies

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

product lines. For smaller accounts an account manager may simultaneously

Types of Advertising Agencies

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

business to business communication. In addition there are specialized agencies in

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Indian Media and Entertainment Industry

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

The current size of the industry as a whole is estimated at US$ 7 billion in

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

steady pace of 18.3% CAGR during CY2007-11.While traditional segments like

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Indian Print Media

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Leveraging a fragmented market

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

Print Media in India - Expanding Geographies

In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry

We attribute this unique feature to the following: