Jaypee Business School A constituent of Jaypee Institute of Information Technology University A-10, Sector 62, Noida (UP) India 201 307 www.jbs.ac.in Marketing Research of Other Commercial Jobs (Point Of Purchase) products Corporate Internship Report Internship Report submitted as a partial requirement for the award of the two year Master of Business Administration Program MBA 2009-11 by Pooja Bagga 091-8800577823 [email protected]Work carried at Thomson Press (I) Ltd., New Delhi Start Date for Internship: 1 st May, End Date for Internship: 12 th June, 2010 Report Date: 12 th June, 2010 Under the supervision of Corporate Internship Supervisor JBS faculty supervisor Mr. Amit Mayer, Area Sales Manager Dr Naseem Abidi 1
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Jaypee Business SchoolA constituent of Jaypee Institute of Information Technology University
A-10, Sector 62, Noida (UP) India 201 307www.jbs.ac.in
Marketing Research of Other Commercial Jobs (Point Of Purchase) products
Corporate Internship Report
Internship Report submitted as a partial requirement for the award of the two year
I hereby certify that I, Pooja bagga have successfully completed my internship with “Thomson press (I) ltd” in the month of May 1st, 2010 to June 12th, 2010. This is also to certify that this report is an original product and no unfair means like copying etc have been used for its completion.
Pooja Bagga
JBS (NOIDA)
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Acknowledgement
Though no words can express my heartiest regards to the enthusiastic and ever supporting sources that gave me assistance and support as and when required .This project report named ‘Marketing Research of Other Commercial Jobs (Point Of Purchase) products to know the potential in the segment’ could not have been prepared, if not for the help and encouragement from various people.
Hence, for the same reason firstly I would like to express my deep sense of gratitude to my Industrial Guide Mr. Abhijit Bose, Sales Manager, Thomson Press and Mr. Amit Mayer, Sales Manager, Thomson Press for their able guidance and useful suggestions, which helped me in completing the project work, in time. They not only inspired me to work on this project but also gave their valuable time inspite of busy routine . It was for their support that I got proper guidelines for preparing this project.
Secondly, I would like to thanks my faculty guide Dr Naseem Abidi for giving an affectionate, co operation and enormous support, words are inadequate to express my gratitude to him.
Words are inadequate in offering my thanks to Thomson press for their encouragement and cooperation in carrying out the project work. They helped me with the questions asked and the answers given by them were up to the mark, they were confident with their answers.
Thanks are also due to my young friends who were always ready to help.
Pooja Bagga
JBS (NOIDA)
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List of symbols and abbreviations
TP - Thomson Press
CAGR - Compound annual growth rate
PwC - Price Water Coopers
OCJ - Other Commercial Jobs
POP - Point of Purchase
JDF - Job Data Form
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Table of content
Chapter no. Page no.
I. Certificate
II. Acknowledgement
III. Executive summary
IV. List of symbols and abbreviations
1. Company profile 8
1.1 Welcome to Thomson Press1.1.2 Vision and mission1.1.3 Basic information1.1.4 Presence of Thomson Press1.1.5 Thomson Press at glance 1.1.6 Thomson digital1.1.7 Quality at Thomson Press1.1.1. Organizational structure1.1.9 Working a) organization
b) Departmental1.1.10 Clients1.1.11 Recognition and awards
Company SWOT analysis
2. Industry analysis 22
2.1.1 Overview of print industry
2.1.2 Market size
2.1.3 Companies in the industry
2.1.4 Technological advancements
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2.1.5 Industry standards
2.1.6 Environmental issues
2.1.7 Recent developments
Industry SWOT analysis
3 Competition analysis 39
3.1.1 Michel potter’s five force model
4 Project undertaken
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4.1.1 Background
4.1.2 Objective of the project
4.1.3 Methodology
4.1.4 Theoretical framework
4.1.5 Areas covered during the project
4.1.6 Data analysis
4.1.7 Finding and Observations
4.1.8 Annexure : Copy of questionnaire
: Visiting cards of visited companies
4.1.9 References
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Executive summary
Dissertation title: Marketing Research on Point of Purchase advertisings to know the potential in the segment.
Company : Thomson Press India Limited, New Delhi
Supervisor : Mr. Amit Mayer, Area Sales Manager
Name of the student: Pooja bagga
Duration of the internship: Six weeks
This project delivers an insight about the market of point of purchase advertisings in Delhi and NCR region. It is also to bring about the acceptance level for the products by the corporate and strategies to increase the market share of OCJ products (other commercial jobs) with respect to Thomson Press.
OCJ products include brochure, catalogue, pamphlets, posters and other advertisement tools which are used heavily for many purposes by the business houses in near future.
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Point of purchase (POP) displays can take various forms, including shelf-mounted signs, hanging posters, and more. Since an estimated 70% of purchase decisions are made within the retail store itself, effective POP displays can have a dramatic impact on sales for a particular product category or brand. It enables a vendor to selectively broadcast advertising and promotional content at a point of purchase display in a retail store.
Thomson Press in previous years is dealing in point of purchase marketing but this line of business is not organized and therefore no previous research is done in this respect.
The need for conducting research was felt when the company adopted a campaign named 2X. In brief ,2X means doubling the productivity and reducing the errors by 50%. In order to double the productivity the areas which were not targeted earlier were taken up and POP is one among them.
The thesis also contain the detailed methodology, which are survey results, trend analysis, and their interpretations, which bring out the acceptance level of corporate for taking up the POP tools as necessary items. Thesis also has the pointing out the other areas where Thomson Press can improve.
The thesis describe the above work in detail.
Signature of the student Signature of the supervisor.
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Company profile
Welcome
To
Thomson Press
Vision
Mission
To recognize the customer's right to Quality, Services, Timely Delivery and Cost
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To ensure maximum satisfaction to the clients
To continue to maintain ethical practices, legal, social, personal conscience framework
To encourage individual growth to fullest potential
To maintain high degree of efficiency and attain international standards
Quality through people and technology
Basic Information
Company Name: THOMSON PRESS INDIA Ltd
Business Type: Service industry
Product/Service:
Printing, Publishing, Designing, Pre Media, Sheet Fed And Offset Printing,
Automated Binding And Finishing, World Wide Distribution Management,
Children Books, Bible, Quran, Coffee Table Books, Dictionaries, Science
Technical Medical Books, Calendars Diaries Note Books, Security Printing
Address: 9K-Block, Connaught Circus
Number of Employees: Above 1000 People
Company Website URL: http://www.thomsonpress.com
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Ownership and capitalYear Established: 1967
Registered Capital: US$1 Million - US$2.5 Million
Ownership Type: Corporation/Limited Liability Company
Legal Representative/Business Owner: Mr. Aroon Purie
Main Markets:
Trade & Market North America
Southeast Asia
Africa
Mid East
Eastern Asia
Western Europe
Total Annual Sales Volume: US$50 Million - US$100 Million
Export Percentage: 1% - 10%
THOMSON PRESS AT GLANCE
Thomson Press has been in operation for over 40 years and is part of the India Today Group a major multimedia company having interests in printing, publishing, internet, television and radio.
Presence of Thomson press
International business
Thomson Press has been in international business for over two decades and in a focused manner for last 15 years. In line with becoming global player, Thomson has made substantial investments. Essential facilities and equipment in the plant will make it a cost efficient solution provider that will match the best in the world and will be acknowledged by customers abroad.
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Mumbai which is 50 kms or 31miles from Sea port and 25 kms or 16 miles from airport, offers the advantage of shorter time for imported material as well as export of finished cargo.Areas Thomson has exported so far:
Countries in which Thomson press has sales office: USA NEW YORK UK HARROW AUSTRALIA SYDNEY
Domestic officesMain plants:
Faridabad, Noida, Navi Mumbai, Tamil Nadu Export Headquarter Noida
Domestic sales officeNorth New DelhiSouth BangaloreEast KolkataWest Mumbai
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Thomson digitalThomson digital provides end to end conversion of raw, unformatted information of multiple types into a consistent, defined, and directly publishable document format using customer-defined rules.
A team of about 1500 people makes us one of the largest specialist teams in the industry with our offices all over the globe, which provides local coordination.
It is information technology enabled services division of Thomson press [i] ltd. As a part of diversified group, whch has interest in media, entertainment ,art and education, printing and digital data processing Thomson press has over the last three decades earned a reputation of delivering high quality service and customer satisfaction.
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for more than 15 years thomson digital have been in the field of prepress activity and produce about one million pages in journal each year and the number is continuosly growing.
The customer are spread all over the world and the unit has earned the reputation of being the preffered service provider of illustrious names in the STM publishing industry.
The company has made a concerted effort to ensure that all our production is automated to handle volumes and reduce errors
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Quality at Thomson
Quality is one thing that is not compromised in Thomson Press and this makes it a leader in commercial press, it’s a prestige for companies to get their work done by Thomson press as they are assured that they will get a good quality in return even if they are paying little high than what is offered by other press.
Quality policy:
“We pledge to achieve Customer satisfaction by continual improvement in our processes and excellence in quality”.
This is achieved by:
Defect Prevention
By Setting Standard: Standard has been set as per the ISO 9001-2000 international Quality System and has been certified from BSI India Pvt. Ltd. The standard is being revised from time to time whenever there is some improvement or modification in the system.
Ensuring adherence of the Standard: Periodical audit of the system standard is being conducted to check the compliance of the standard.
Corrective and Preventive Action:Every customer complaint is being thoroughly investigated by QA for its origin and reason. Necessary corrective & preventive action is being taken in consultation with the concerned departments.
Defect Detection
By gathering data constantly on occurrence of defect: Every job undergoes thorough inspection by QA before dispatch as per the inspection plan & defect checklist.
By sending information about defects to relevant departments: Daily, Weekly & Monthly reports are being sent to the relevant departments and the same are being reviewed periodically with the concerned departments.
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Organizational chart
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ManagementRepresentative
Head-manufacturing
Sales & marketing
InternalAudit
Accounts
Costing
Taxation
Export sales
Repro house okhla
Human resource
2x team (manufacturing excellence)
Industrial engg.
Stores
Material
Security & admin.
Training
Personnel & IR Prepress
Sheeted printing
Folding
Web printing
Finishing operation
Despatch
Hard case
Customer support
Quality assurance
Laboratory
Engineering & Maintenanc
Utility services
SSD Cell
WORKING
A) Organization
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PRE PRESS PRESS POST PRESS
High-resolution scanning drum, copy dot and flat bed scanner.
Automated page planning, image retouching and manipulation
Outputting in conventional and FM screens.
Fully equipped for PDF PS files for outputting and digital impositions.
CTP along with conventional plate making
Remote proofing with render view.
High volume multi colored magazines, saddle stitched or perfect bound.
Thomson Press is a member of two prestigious world bodies GATF and PIRA.
It is an ISO 9001: 2008, ISO 14001:2004, OHSAS 18001:2007 and FSC –COC certified company.
It is a service industry and not a manufacturing industry as it provides end to end solution to its clients right from designing to delivery of the material. In one way we can say that, it’s the one stop shop for the printing solution. The only press in India which have its own Design studio and testing lab. In short design studio has a team of well qualified designer and they design the content as per user’s requirement, which is later sent for printing. Testing lab takes care for testing material that is received from the supplier and they can reject the whole material if it is not as per the ordered one.
Absolute commitments to quality, meticulous attention to detail and unparalleled level of service have made Thomson Press a leading specialist in Design, Prepress, Printing and distribution services.
RECOGNITIONS AND AWARDS
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AWARD NAME
Sappi Trading Printer of the years-Gold
YEAR 2007
TOPIC Printer's own Promotion, Calendars
AWARD NAME
Sappi Trading Printer of the years-bronze
YEAR 2007
TOPIC Catalogues
AWARD NAME
Xerox
YEAR 2007
TOPIC ---
AWARD NAME
Xerox
YEAR 2007
TOPIC ----
AWARD NAME
Sappi Trading Printer of the year
YEAR 2007
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TOPIC ----
AWARD NAME
National Award for Excellence in Printing by all India Federation of Master Printers
YEAR 2002TOPIC Group - 'Offset Big'
Category - Folders Group - Offset Category - Book - Technical/ Medical (2nd position)Group - Offset Category - Book (Others) (1st position)
Industry analysis
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AWARD NAME
Special Export Award by CAPEXIL
YEAR 2000 – 2001, 1996-97, 1997-98, 1994-95
TOPIC Books, Typesetting
The Indian Print Industry
Printing is a significant medium of Advertisement, Entertainment, Education, and Information and it spreads over almost all parts of the economy, such as Government, either local or central, Retailing & Manufacturing, Tour & Travels, Financial and Retailing, Distribution and Financial industries, and so on. The influence of printing industry is so robust that it is considered a spearhead for the economy of any country
Printing Industry Segments:
The Printing Industries model was developed using the following definition of the printing industry.
Form, Label, & Tag Printing (Business Forms, Label/Wrapper, and Tag/Ticket/Tape Printing) Greeting Card Printing Specialty Printing Packaging Printing Trade Services (Prepress Services, Trade Binding, and Other Finishing Services.)
It encompasses numerous fields of every economy. Printing Industry generates a wide range of products which require in every step of our everyday life. Starting from Newspapers, Magazines, Books, Post Cards to Memo Pads and Business Order Forms each are the products of Printing Industry.Other than the direct contributions, there are many indirect influences of Printing Industry up on the economy. This is because, all the activities like Binding, Embossing which generate considerable amount of income and employment are related closely with the Printing Industry. Packaging industry and Advertising Industry in many ways depend on the Printing Industry.In the Printing Industry, the main Printing Techniques that are used are:
Lithography-This technique emphasizes on economical use of color. Flexography- This technique produces vibrant colors and is used for printing newspapers and books. Gravure-This technique is famous for Print Quality and Print Formats and is mainly used for product to be
used in packaging industry.
Letterpress-This technique is used when printing is done on raised surfaces. Screen Printing-This technique is mainly used to Print designs on fabrics.
India is the fastest growing printing industry riding on the growth rate of 12 per cent annually. Indian printing industry has gone through a revolutionary transformation in the last 15 years because of liberalization of economy and privatization of the industry. Inflow of investment in buying latest technology and sophisticated machinery has led the industry to modernization.
The Indian Printing Industry today comprises more than 250,000 big, small and medium printers with a total turnover of more than US $ 12 billion. Almost 75% printing presses are family owned and hence closely held.
Highly Capital intensive with 120,000 or so, printing presses and 200 daily newspapers and thousands of periodicals, journals and language publications, the printing industry has thrown up demands for nextgen technologies. India needs to establish standards in digitization and introduce the new technologies which have been developed worldwide to meet the immense potential of this industry.
Facts about Indian Printing Industry :
More than 1,30,000 all types of printing presses in India More than 10 Million family involved in the Industry 20 Billion + Turnover Per capita consumption of Paper & boards - 4.5 KGs Machinery New and Second Hand, used is predominately from China, England, France. Germany, Italy,
Japan, The Netherland, Switzerland,Spain,Taiwan,USA.
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Companies in the industry
NPES – The Association was founded as the National Printing Equipment Association in 1933. The 26 charter members included manufacturers of printing presses, bindery equipment, typesetting machinery and specialty equipment.
Today NPES represents manufacturers, importers and distributors of equipment, supplies, systems and software used in every printing, publishing and converting process from design to distribution.
There are about 470 Indian printers companies listed in NPES, few of them are mentioned below:
1) ABI Print
2) ACE Printers
3) Ajanta Print Arts
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4) Amigo Offset Pvt Ltd
5) Anand Printers
6) Bamboat Press Pvt Ltd
7) Bell Graphics
8) Bharat Folding Box Manufactoring Company
9) Bina Packaging & Printers Pvt Ltd
10) Bombay Binding Works & Printers
11) Bright Offset Printers
12) Color Print
13) Comart Lithographics Ltd
14) Delta Printing
15) Dhote Offset Technokrafts Pvt Ltd
16) Esquire Press Pvt Ltd Esquire Press Pvt Ltd
17) Four Square Graphics
18) Dynamic Impressions
19) M. B. Graphics
20) Mahadev Paper Corporation
Few of the major players are:
1. Pragati press
Location: Hyderabad
Established in 1962, Pragati offer high-quality print services to clients in India and the world over. Having established credentials in the commercial offset field, they have expanded their product offerings to the fields of Packaging and Labels too. From coffee-table books to brochures and calendars, from high-quality paperboard cartons to luxury rigid boxes, and from flexographic labels to shrink-sleeves -- Pragati covers the full gamut of printing needs.
2. Ipp printing press
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Location: Noida
Founded as a repro house in 1982, IPP has emerged as a partner of choice for its valued customers -- delivering packaging, commercial printed products and stationery to the most discerning of international buyers. They derive 35% of our annual revenues from exports to North America and Europe.
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Market size
With all industries moving towards specialization to carve a niche, the new strategy is to offer customized solutions and applications that cater to vertical segments like telecom, banking, retail, pharma etc.
Currently India is the12th largest print market in the world expected to rise to the 8th position by 2011. The country’s printing market currently valued at US$12.1 billion and is projected to reach US$20.9 billion
A booming Indian economy, growing need for content and government initiatives that have opened up the sector
to foreign investment are driving growth in the print media. With the literate population on the rise, more people in
rural and urban areas are reading newspapers and magazines today. Also, there is more interest in India amongst
the global investor community. This leads to demand for more content from India. Foreign media too is evincing
interest in investing in Indian publications. And the internet today offers a new avenue to generate more
advertising revenue.
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Printing Industry Growth Trends
Printing Industry Trends has been very significant over the years. This trend is actually the force that is determining the future of Printing Industry.
India is the fastest growing printing industry after China ,currently India is the12th largest print market in the world.
The print industry is projected to grow at a CAGR of 9 per cent in the next five years and will reach Rs 269 billion by 2011
Indian printing industry has gone through a revolutionary transformation in the last 15 years because of liberalization of economy and privatization of the industry. Inflow of investment in buying latest technology and sophisticated machinery has led the industry to modernization.
Printing Industry Growth is an outcome of different actions and reactions which took place in past few decades all over the world. The Growth has taken place due to rising demands for printed products. Now if we want to find the reason behind this increase in demand we will find several factors. Among these, the main factors are Overall Economic Growth, Population Growth, Increasing Advertising Expenditures and the Advent of internet.
To understand the Printing Industry Growth we need to discuss these changes in details.
The main changes which contributed significantly to printing Industry Growth are the following:
Desktop publishing -This introduced Typographic Print put in place of traditional Typewritten Print out.
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Personalization of Data-This introduced use of specific data to generate printed items. This was possible due to increasing use of personal computers and personal printers.
Digital Printing-This introduced Toner based and Inkjet based technology. Digital Printing also holds Variable Data Printing Capacity.
E-Commerce-E-Commerce has given the relationship between buyers and sellers a new dimension. E-Commerce or E-Business has strengthened the business communications and has contributed significantly to Printing Industry Sales.
Use of Color-In the past decades most of the printing work was done in Black and White. But, in the present era use of color has risen tremendously in the print medium. Newspapers, Magazines, Catalogs Printers have shifted to color reproduction.
Distributed Production- The production process has changed immensely. From the Press Centric Production the Printing Industry is slowly moving to Printer Centric Production.
The increasing use of internet in the publishing world has brought a revolution in the Printing Industry. Remote Distribution of Data and Variable Data Printing has been possible by the use of Internet.
The special ability of Internet of distributing large quantities of data to diverse locations bridged the gaps of Printing Industry. Earlier, almost all printing work was used to be done through press. But, in today's world of technological advancement, many printing work is done from customer's home printer.
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Technology advancement
Press technology has changed dramatically over the past several years. Fortunately, press manufacturers have put the demands of printers at the forefront of their designs, recognizing the need for increased productivity and efficiency.
In order to accommodate faster make-readies, press speeds and higher quality, commercial printers are acquiring these state-of-the-art presses. Although this equipment helps differentiate them in the marketplace, it comes with a
hefty
1. Of considerable weight; heavy.
2. Rugged and powerful.
3. Price tag.
This allows press operators to make ready-color and register then go right into production without any delays -- even on the heaviest ink coverage The amount of ink used by a laser-class or inkjet printer depends on the type of document printed. The sheets float on air and nothing touches during production, ensuring consistent high quality through every run. This press can cut pre-production time by as much as 50 percent, which allows for faster service at more competitive rates.
Automated
1. To convert to automatic operation: automate a factory.
2. Shop Way of the Future
The industry as a whole is moving towards a more automated shop with a wide system of controls, checks and balances. This system would be able to handle everything from remote estimates and order entry requests, through the estimating, planning, production and finally the shipping of the product. A completely automated system is not only beneficial to the printer, in terms of greater efficiency, but also to the client. Customized efficiency reports can also be generated. This leap in technology insures high quality and is cost-effective.
Due to tougher competition, customer needs and increased productivity demands, what was once a three- to four-day production cycle has now turned into a one- to two-day production cycle.
Computer-to-plate, also known as CTP (cytidine triphosphate)o (Computer-To-Plate) The production of printing plates directly from the computer without
requiring film as an intermediate step has allowed for reduction in production time. Because of this, nowhere has technology in printing changed more rapidly than in the area of the pre-press.
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The elimination of film allows for much faster proof generation.
Due to numerous technological advances, operators no longer perform their task without regard to what was done prior in the steps of production.
Those responsible for each step of the printing process work together as a cohesive and the capability to cohere or stick together to form a mass team, thereby reducing production time and assuring quality standards. Technology will continue to drive the future of the printing industry, as clients demand better and faster service. Today's printer must stay informed of the changing technology and be prepared to make the capital investments needed to remain competitive. As in any business, a printer is only as good as his or her last print job. So, it better be done right, and done fast. And technology can make all the difference.
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Standards
It has become the standard on which most printing specifications are based. It has targets for ink color, trapping, grey balance and dot gain values, defined in 7 parts:
Part 1: Parameters and measurement methods;Part 2: Offset lithographic processes; Part 3: Cold set offset lithography and letterpress on newsprint; Part 4: Publication gravure process; Part 5: Screen printing;Part 6: Flexographic printing;Part 7: Digital proofing
ISO 12647-2 being the comprehensive and worldwide accepted quality standard for 4-colour offset printing, it basically consists of a list of reference parameters providing definitions for the transfer of files from prepress to press, quality requirements for predictable and reproducible print quality, and specifications for printing conditions determined by paper type, solid tone color coordinates, dot gain characteristics for each color, and tolerances in coloration, dot gain and trapping.
The standard itself comprises not more than 18 pages, but refers to 4 other ISO standards and is complemented in prepress by proofing standard ISO 12647-7.
1)
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ISO 12647
ISO 3664
For process linksISO 2846
Defining standard lighting and viewing conditions
ISO 12218 For plate making
ISO 12643 For safety requirements
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ISO 12646 For color proofing displays
ISO 13655-56 For color and density measurements and numerous standards for digital data exchange.
Environmental Issues
Green Printing in India
Environment protection is catching up in India. Be it machines, or paper or inks they all have to sooner rather than later change to eco friendly systems and solutions. Local, federal, corporate and society at large are waking up to the fact that all need to contribute at every level to protect the environment for our future generations. Following avenues need to become more environmentally responsible:
Production of paper (from renewable sources but regeneration stressed) (FSC) Several printing companies implementing ISO 14001 or equivalent certifications Use of inks and solvents (without adverse environmental impact)
India’s printers use about ten million tones of paper and board each year including domestic manufacture and imports. In addition 3.6 to 4 million tones of plastics is used for rigid, semi-rigid and flexible packaging. Flexible packaging constitutes 70 per cent or some 2.5 million tones of packaging film of all varieties.
Certification ISO 14001 and FSC
Of the top 15 paper mills at least 10 are already ISO 14001 compliant. Currently the biggest mill is implementing ISO 14001 and increasing its certified inputs from sustainably managed forests. Increased recycling and sustainable practices and certifications by local paper mills will help in making more Indian printers FSC compliant.
Only 7 printing and packaging companies in India that are currently ISO 14001 compliant, Of the 7 that are already compliant two commercial printers — Thomson and Gopsons are also FSC certified, with several other print exporters seeking FSC certification. The remaining ISO 14001 compliant companies are in packaging with multiple locations.
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ISO 14001
ISO 14001 was first published in 1996 and specifies the actual requirements for an environmental management system. It applies to those environmental aspects which the organization has control and over which it can be expected to have an influence
Intention of ISO 14001:2004 is to provide a framework for a holistic, strategic approach to the organization's environmental policy, plans and actions. This has the effect of establishing a common reference for communicating about environmental management issues between organizations and their customers, regulators, the public and other stakeholders.
Forest Stewardship Council (FSC)
The FSC is an international nonprofit organization formed in 1993 to encourage better forestry practices.
Why is this necessary?
Over 40 per cent of trees that are logged globally are used to make paper Recycled paper accounts for about 10 per cent of the paper market worldwide Affluent countries such as the United States and Australia are among the leading consumers of paper.
Paper consumption is growing. About 95 per cent of business information is still stored on paper, while the greater availability of copying machines, printers and fax machines, as well as personal computers and desktop printers, has produced an increase rather than a decrease in demand for paper.
Use of inks and solvents
For many years, solvent-based inks have been used because they provide durability, penetration, and a wide variety of pigment options. However, environmental regulations have had a large impact on how and what solvents are used in many applications. Most of these regulations that affect hydrocarbons are based on the ability of hydrocarbons to degrade in the troposphere, generating ozone.
Ozone in the troposphere is a human health risk at concentrations exceeding about 0.12 p.p.m. The ability of a substance to generate ozone is directly tied to its atmospheric lifetime as well as to what it reacts with in the atmosphere. The ability to dissolve ink is only one part of evaluating the efficacy of a solvent for the printing industry. A solvent that negatively affects printer heads and blanket material can cause downtime and lost production.
Several printers have eliminated the use of films and chemicals and have converted to computer to plate. Printers are increasingly using vegetable based inks instead of oil-based inks and looking at alcohol free dampening solutions. Chemicals that are harmful to the environment are disposed as per environment disposal norms.
Indian manufacturer TechNova, a world leader in inkjet polyester and aluminium plates is already ISO14001: 2004 compliant for the manufacture of litho plates and chemicals. It plans to introduce low chemistry plates in 2010.
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The Indian printing industry is experiencing rapid growth. However the environmental protection is not applied widely or stringently enough, although printers and processors are strong on light weighting and recycling, and interested in the sustainability issue. With high growth a yawning gap exists between old technology and practices and new needs and systems. (Source: Indian Printer & Publisher)
Recent developmentsThe printing industry, like many other industries, continues to undergo technological changes, as computers and technology alter the manner in which work is performed. The most notable changes have occurred in the prepress stage. Instead of cutting and pasting articles by hand, workers now produce entire publications on a computer, complete with artwork and graphics. Nearly all prepress work is computerized, and prepress workers need considerable training in computer software and graphic communications.
Technology has also affected the printing process itself. Printing machine operators, also known as press operators, increasingly use computers to make adjustments to printing presses in order to complete a job. The same is also true of bindery and other finishing workers.
Digital printing has become the fastest growing industry segment as printers embrace this technology. Most commercial printers now do some form of digital printing. Printing processes today use scanners and digital cameras to input images and computers to format the graphic images prior to printing. Digital printing is transforming prepress operations as well as the printing process. It eliminates much of the lengthy process in manually transferring materials to the printing press by directly transferring digital files to an electronically driven output device.
The printing industry is also taking on new tasks that provide further value for customers. This means customers can now have their finished products labeled, packaged, and shipped directly by printing companies. Other ancillary services that printers may offer to attract new customers include database management, mailing, warehousing, and Web-based order and design work for clients who want to fill out design templates on the Internet rather than creating original design work. Printers feel that these services are increasingly important to their customers and may provide a competitive edge in attracting new business.
The printing industry has thrown up demands for latest technologies, having undergone transfiguration from sheet fed printing, to web printing, from low speed to high speed, B&W to color. The publishing sector has already established itself in the export market through “type setting”. However, new technologies are emerging worldwide, especially digitization. Standards are being developed for digitizing newspapers, forms and books. The potential for expansion is immense.
Increasing number of printers are adopting newer and modern technologies. The growth of such organisations indicate that recession is nothing but a changing trend towards adoption of new style of working.
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Industry S W O T analysis
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STRENGTHS
Print is tangible and has a longer shelf life compared to electronic communication.
The paper used for print is ultimate renewable and recycle resource so it’s a environmentally friendly and responsible
Print does not get lost in spam filters or sent to junk e mail folders.
Printing is often used to complement or supplement electronic marketing to increase response rates and ROI.
Direct Mail print is flexible, easy to measure, selective, targeted, personal, and it’s easy to measure its ROI.
WEAKNESS
Print is costly, so it is important to talk about print in terms of ROI rather than cost.
Print requires more lead time, production time, and distribution time compared to electronic communications.
There is a lack of an organized and effective effort to promote print and educate the public about the value of print by organizations
The print industry is highly fragmented which creates challenges in working together for the benefit of all members of the industry
Opportunities
The internet is not killing the print industry, but it is changing how it is used.
The print industry needs to learn to effectively harness the power of the internet and learn how the 2 mediums can effectively be combined to create better ROIs.
Increasing marketing budgets
Web ordering opens up new sales opportunity
Threats
Green movements can slow down the production by creating environmental issues in later stage
More marketing moving online.
Rise in postage and material cost.
Shrinking printing industry.
Competition analysis
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Michel Potter’s Five Force Model
Michel E. Potter has identified five forces that determine the Industry Environment. These five forces shape the competition within the industry. A stronger competitive force is regarded as a threat because it depresses profits while a weaker competitive force is viewed as an opportunity because it allows the company to earn greater profit.
1. Risk of entry by potential competitor:
Factors that make it costly for the companies that are not currently competing in an industry but have the capability to do so if they choose.
2. Rivalry among established components:
The competitive struggle between the companies in an industry to gain market share from each other.
3. The bargaining power of the buyers:
The ability of buyers to bargain down price charged by the companies in the industry or to raise the cost of companies in the industry by demanding better product quality and service.
4. The bargaining power of suppliers:
The ability of suppliers to raise input prices, or to raise the cost of the industry.
5. Substitute product:
The product of different businesses or industries that can satisfy similar customer needs.
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Potter’s Five – Force Model for OCJ Products
1) Barriers to Entry.
Low barriers to entry, not much infrastructure required to set up a printing press and machines can be used to print not only OCJ Products but also other products.
Low switching cost, so some small presses are doing a seasonal business in case of OCJ Products when the demand is high.
2) Segment Rivalry:
Large number of firms small and big in size that are printing OCJ Products.
Low level of Product Differentiation, the range is very less. Pamphlets, Posters and Catalogs only come under this producr line.
Low switching cost.
o Customers can freely switch to other items and therefore it’s hard to capture new customers and retain old ones.
3) Buyer Power:
Buyer’s are powerful:
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o For standardized products, where the purchase order is very significant they can bargain a lot.
Buyer’s are weak:
o When the quantity ordered is less.
4) Supplier Power:
Suppliers providing paper and ink and other raw material are weak in case of printing industry, as there is large number of supplier providing same quality of product and therefore they cannot be a monopoly and influence prices.
Thomson Press also has a testing lab, any material received will be tested and if the order is not as per the specification it is returned.
5) Threats from Substitute:
Threat from the substitute product is high, OCJ Products are mainly used for Advertisement purposes. There is a wide range of innovative advertisement item available in the market other than OCJ Products and are cheap also.
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PRODUCT DIFFERENTIATION
It is defined as establishing clear distinction between products serving the same market segment. This is typically accomplished through effective positioning, packaging, and pricing strategies.
In printing industry, there are many small and unorganized players providing services with few and more variations.
This concept is explained with few examples of competitors in the same field
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Detail explanation of the concept is given below:
Name of the company
Name of the competitor Product name (perfect substitute) Product differentiation
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Thomson Press
- Coffee table and art books, children books, religious literature, dictionaries, directories, diaries, journals, agendas, calendars, magazine , periodicals, annual reports, brochures, catalogues, posters advertisements.
-
Pragati press Corporate brochures, product and service catalogue, art and coffee table books, annual reports, table top and wall calendars
Pressure-sensitive labels on paper and filmic substrates, wet-glue labels, shrink-sleeves, in-mould labels, flexible packagingFolding Cartons, Blister Packs, Luxury Rigid Boxes, Display-cum-Dispensers, Gift/Fancy Boxes, Paper/Board Carry Bags,
AJANTA OFFSET Books, (Coffee Table Books, Text Books, Art Books etc.)
When we talk about marketing mix,we first need to define a target market as our mix that is product Product,Place,Price,Promotion are focussed on needs of the users in that market. Here in case the 4P’s of the respective company are:
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Background
The project is about point of purchase (in store) marketing which includes danglers, counter tables, floor/ceiling decals, paper bags, posters, tent cards, table flags. Thomson press has less production level in this line and therefore to re - energies it and to get more business a proper approach is required. This project delivers a proper approach right from identifying a target market, creating value for target customers, communicating them the value and finally to approaching the customers and checking their agreeableness with this product line.
This research is also a part of 2X campaigns, as 2X aims to double the production level, therefore several product lines are identified, some new and some in which the business is showing low production levels.OCJ (other commercial jobs) product line is one of those lines as the percentage share in share in production is very low. so there is quite lot potential in the market, which is yet to be exploited. this report is therefore aimed, as how to increase market share.
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Secondary data
Graph- comparison between various product lines for three years.
The table above shows the production in crores under different product lines, these are not sales figures but production figures. Thomson press works on production figures, by production figures we mean cost to company in a particular job done. According to Finance department sales figure are approximately double the production figure with _+ 5%. This table not only shows the production figures but also it shows the comparison between different products, trend of production over a period of three years of each product.
Lastly this table shows the figures of North India region, as the research project is restricted to the North Indian market.
It can be clearly seen that the major production is of periodicals followed by books. Here the most exciting thing is the drastic increase in the production level of Digital work, which has just started three years back and is still showing a high increasing trend .this tell us that more customers are going for personalization of their products. rest all products are fine, and mostly showing a growing or stable trend, but OCJ Products, like catalogue, brochures, are showing slow growth or have less contribution in the product line.
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Pie chart- chart showing the contribution of OCJ Product in year 2006-07 (in %).
The pie chart shows the share of the OCJ products in year 2008-09. In this year the share of OCJ products was about 23%, among the other major items printed at Thomson press (books, periodicals, digital printing items). This shows that there could be great potential in the market which is not yet explored. In the same year the contribution of periodicals and books were highest with 32% and 27% respectively.
Objectives of the project
The main objectives of the study are:
o To know the potential of the OCJ products in corporate sector.o Reasons for low market share in OCJ products.o Promoting/creating awareness of Thomson Press in context of point of purchase.o Strategies to promote OCJ products.
Methodology
This project is entirely based on conducting survey to promote Thomson Press by influencing and getting feedback of the corporate w.r.t their inclination towards point of purchase marketing, therefore sectors are identified and some companies under each sector are targeted for survey.
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Data collection:
The main methods used for collecting information are:
1. Structured questionnaire2. Face to face interview with the employees (Thomson Press)3. Telephone surveys4. E mail surveys5. Direct observations
The survey method involves a structured questionnaire given to the respondents and designated to elicit specific information. In this project interview mode is used for collecting information. For this, appointment is taken from the respondent as the respondent is of high designation therefore approaching him any time is not professional. So appointment is taken and then while meeting and after educating him about the company profile and OCJ products and what value they create in the market, Questionnaire is given to him. In some cases the survey is done over phone and e-mail and in that case a proper follow up was necessary therefore a letter with the promotional brochure is sent by post to the respondent.
(For reference purpose the questionnaire is attached in annexure)
Face to face interview was also conducted with the employees of the company to know about the strategies followed by them. It helps in understanding the key functional areas and if the need to modify them as per the changing market situations.
Theoretical Framework
Following is the model, which lists down the flow of my approach in this research project to bring out the potential in the market for Point of purchase advertisings
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Areas covered under the project
o The project is confined to Northern India Region but as there is a time constraint the research work is more focused over the Delhi and NCR region. There are many regional head offices of companies in and around Delhi, so it also give a big market to target. Also there is diversity in the sectors as there are so many sectors using in-store marketing and have their own preferences, like some want less quality and
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more quantity and some do not compromise on quality. This makes important to identify some sectors and then channelize the research work.
Data Analysis
Following are the methods which were exercised at Thomson Press, by their sales team to get more business and increase market share.
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It was a package having annual reports of Thomson press along with the samples of different papers with different types of printing and in variable sizes. This gives an perfect idea to the reader what all is offered at Thomson press
Annual report mailer
Cold callingIn this portable customers are just contacted by phone and if they seem interested then an appointment is fixed and the products and services are promoted in the meeting.
Leads from existing customers
This is a very rish source to get business from the customers and this also requires a healthy relationship with the existing customers.
Hotels Private inurance and finance companies
Apparels & Accessories
Banks
Public sector undertakings
FMCG Beauty & Personal Care
Other corporate houses
Detailed analysis of the questionnaire:
1. Set of database creating questions
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Making databaseEvery job done is recorded and stored in the database and every year that database is referred and old customers are contacted in order to get more business out of that.
Set one in the questionnaire is for the personal information of the respondent (name of the company employee, designation). This is done for the database building for Thomson Press, as this information will help company to get business not only in OCJ products but also in other product lines.
Company visited for survey:
Dharampal Satyapal ltd VLCC health care ltd Jaypee hotels Indian oil corporation ltd
Essilor India ltd MMTC Zuari insurance Eicher motors
Ansal housing and construction ltd
Ravi Bajaj design pvt ltd Hdfc standard life insurance company ltd
Surya roshni ltd
Tribhovandas Bhimji Zaveri The great India place Mother Khazani convent school
The ashok hotel
Swati aluminum ltd Vegit (merino industries)
2. Set of POP marketing awareness questions
This contains two questions, and is mainly to guide the discussion ahead in order to build a background for further questions and it also gives an idea to the respondent that what all this survey about.
These questions are simple close ended questions and mainly intended to know that whether the respondent’s organization use POP marketing, or is this concept new to them. Following tables and graphs shows the preference of respondents and also their awareness for this specific marketing tool.
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The
above pie chart shows that out of the total corporate survey, 86 % of companies are aware of POP marketing and hence the graph shows that 24 out of 28 total organizations are currently using this tool.
3. Set of questions to check the worthiness of this marketing tool.
This set contains 2 questions, which brings about the inclination of the companies towards POP marketing and its worthiness in terms of their own product.
The
above column graph 5.2, depicts that 12 companies found in-store marketing useful for current market situations and 25% found it worth using it for their own company’s product.
4. Set of questions to analyze the target audience the effective tool to reach them.
This part also has three questions which bring the information about the company’s target audience and the most effective marketing tool for it for e.g. danglers, pamphlets, counter tables, brochures, floor decals, etc.
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The above pie chart shows that the most effective POP tool preferred by the respondent companies are brochures (20%) followed with posters (16%) and (14%) to danglers and pamphlets.
5. Questions to check the presence of Thomson Press and competitors in current market place.
This set has 3 questions and it is to check the presence of Thomson press and its competitors in the current market, this will help the company to find out the reason for loosing out the business to its competitors.
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The above pie chart shows the clear picture of only 43% companies that have availed the service of Thomson Press, i.e total 12 companies out of 28 and 7 companies out of whichhave rated the services of Thomson Press as satisfactory.
The major reason behind not availing the services is being not aware of Thomson Press working in this product line. So it can be inferred that it is due to lack of good promotional strategies opted by the company to target the market.
The following competitors are identified for same product line by the respondent companies, although many of them they did not to disclose this information:
6. Feedback questions to maintain future relation ships with the companies:
This is the last part and it will be mainly served as feedback for Thomson Press, it brings about the qualitative as well as the quantitative aspects of the respondent companies in terms of their printing budgets(rs) ,their requirement (units) and their valuable suggestions to improve the service
Company name Volume(units) Value (rupees)
Swati aluminum ltd 10,000 3 kBajaj capital ltd Varies from month to
month2 crores
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Ansal housing and construction ltd - -
Zuari insuarance 5 k 50 kThe great india place - -Harvest gold industries pvt ltd - 25000 way one 1.5 crore 20Mother Khazani convent school - 8 – 10lcsTribhovandas Bhimji zaveriW women’s wearMutual fundswala.com Variable depends upon
the month40 000 p.a
Tata Aig life insurance company ltd Depends upon the month
In lacs
The Ashok hotel 500 units 50 lcs approx
Surya Roshini pvt ltd Not in large scale 5 to 10 lcs
Vegit (merino industries) - -Vlcc health care ltd 5000 p.m (divisional)
Indian oil corporation ltd - -The Shahnaz Husain group of companies Min 300 max 20000 -
Jaypee Hotels - -
MMTC 5 -15 lc -Godfrey Philips India ltd - 25 croreEssilor India ltd - -Nirula’s Hotel 7 lc p.mRavi Bajaj design pvt ltd -Hdfc standard life insurance company ltd Bulk CroresDharampal Satyapal ltd -NTPC Ltd
Company Name future requirements Suggestions
Swati aluminum ltd may be req. -
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Bajaj Capital ltd May consider -
Ansal Housing and construction ltd
Surely, as soon as possible Cost factor to be considered
Zuari insuarance - Cost is the crucial factor, should be on lower side.
The great India place Yes Cost and pricingHarvest Gold industries pvt ltd
Yes -
Way one Quality and service -Mother Khazani convent school
Yes -
Tribhovandas Bhimji zaveri Will contact as per the requirement.
-
W women’s wear Yes Delivery on time and cost factor to be considered as per the quality.
Mutual fundswala.com Yes Try and get in touch.
Tata aig life insurance company ltd
Yes -
The Ashok hotel Yes -
Surya roshini pvt ltd Definitely yes. Quality is good but should also be price competitive.
Vegit (merino industries) Sure -Vlcc health care ltd Yes -
Indian oil corporation ltd Yes Balace between supply and demand
The Shahnaz Husain group of companies
Surely yes -
Jaypee hotels Yes with cost effectiveness. -
MMTC Yes Send good creative ads at the time of tender
Godfrey Philips india ltd No Need to improve schedules ,specially for commetcial jobs
Essilor india ltd Will look upto it -
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Nirula’s Yes, with best rates,printing quality and delivery on time.
-
Ravi bajaj design pvt ltd Will wait for the follow up. -Hdfc standard life insurance company ltd
- -
Dharampal Satyapal ltd Yes -NTPC Ltd Yes Be more customer
oriented and customer focused
FINDINGS AND OBSERVATIONS
In this report an effort was made to bring out the market potential for the OCJ products for Thomson Press and accordingly a corporate survey program was conducted. The results drawn after the analysis are very favorable and according to the sample taken for the survey it depicts that there is a great potential for OCJ products in the market. OCJ products are in demand, but it came out during the survey that innovation and creativity is being demanded in Corporate with price effectiveness.
Not only design, but also if some new style if added to the OCJ product then it will create a great impact. Thomson Press is at advantage as it has its own design studio, where all such
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innovations are possible and therefore with an appropriate promotion campaign, market share in this product line can increase.
There are also some shortcomings in the working process of sales force, coordination between various departments and other small works related issues. These issues can affect the company to a great deal, therefore they should be taken very seriously and drastic steps should be taken in this respect. This can also affect in losing big clients because of client’s dissatisfaction.
Lastly, the market for OCJ products is quite big and Thomson Press with its competitive advantage has a good opportunity to grab share from the market, the only thing needed is channelized promotion campaign with affective support and follow up from the sales team.
Earlier we observed that Thomson Press is loosing great amount of business to its competitors. How can this opportunity loss be minimized? This part of the report tries to bring out some strategies to grab in more market share and also to cut down the new competitor entrants in the market.
i. Shortcomings in the previous strategies:
Strategies that are being already followed are very much necessary but as per the changing market conditions, new and product specific approach is needed to market the product . for example ,this year, annual report mailers which are product specific are sent to all the big companies that print their in-store advertisements. Further the companies were tracked regularly, so the administration activities were in alignment with the promotional activities and therefore it was a great success.
This kind of approach is required in every vertical that is for every product and more important is that target market should be identified first and what values are needed to be delivered should be very specifically known and promotional activities should be aligned to highlight these values and a proper follow up is done, which is missing in the marketing strategies of the company.
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ii. Reasons for low share in production
Time:
Corporate are mainly concerned to get their orders on right time since the shelf life of these advertisements is of few weeks to months. Also there are different departmental information like cost estimation are required before finalizing the order also the quality check procedures followed in the company take lot of time, so right inter departmental coordination is required.
Competitors:
It can be inferred from the analysis, company is loosing the market to the competitors, it is mainly because they are providing the services at cheap prices compromising on quality. Moreover the corporate prefer nearby locations to avoid delay in time of service.
The sector is highly unorganized, there are large number of small presses that are doing printing work. They take printing work and do it in cheap rates, certainly, the quality is not high, but they are considerably successful in persuading the customers to compromise on quality.
Promotion:
One main reason for low share of these products was that ,it was not promoted properly. No specific clients were identified and targeted. Companies have different image of Thomson Press altogether in their minds, and they don’t think to afford small orders to place in such big group.
So right promotional skills are required to gain the unexplored markets.
Reasons for Low Market Share:
The reason for having a low share in market for OCJ products can be divided into two categories first one being internal reasons and other is external reasons:
Internal Issues:
Product wise approach is missing to market the products.
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Less value creation; less marketing activities and more concentration on selling activities.
Low coordination between departments within the organization.
External Issue:
Small and seasonal players in the market making OCJ products. Price is high at Thomson Press as compared to market price.
Recommendations
1.Steps to target potential customers
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2) Methods to cut down the new entrants
2.1)Equalize the production loadIt is seen that there are some months that have great production loads in comparison to other months (May to October). So if approximate demand is determined OCJ products at the start of the year only, then in the months that do not have great production loads and downtime on machines is more, can be utilized in printing OCJ products.
These printed products can be stored and it have two advantages:
This will equalize the annual production load and also help in speedy delivery of products to the customer.
It will be cost effective for the company and therefore can compete with the rates offered by small and local competitors.
3) Sales force:
3.1) Incentive scheme should be implemented specially for sales force to move them.
ERP module should be adopted and followed, this will improve co-ordination not only with the company but also it will integrate customer on line through web site with the company. This will also lead to better customer satisfaction and issue of timely delivery will be solved.
Employee satisfaction survey or some human resource consulting companies should be hired to have a better knowledge and needs and wants of employees and accordingly employees can be motivated. This will also lead to two things; firstly, less iteration and secondly it will align employees goals with the essential goals.
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Annexure
Copy of questionnaire
THOMSON PRESS (INDIA) Ltd
Questionnaire
We hereby declare that the information provided by you will not be disclosed and will be used for legitimate purpose only.
EMAIL ID/MOBILE NO __________________________________
ANY OTHER INFORMATION __________________________________
The objective of this questionnaire is to know how much your company is inclined towards point of purchase (in-store) marketing.
1. Are you currently using POP advertising for any of your product?
o Yes o No
If yes, (name/type) of your product _______________________
2. If yes, is this the first time you’re using this marketing tool?
o Yes
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NAME OF THE COMPANY __________________________________
NAME OF THE PRODUCT __________________________________
LOCATION __________________________________
NAME OF THE EMPLOYEE __________________________________
DESIGNATION __________________________________
o No
3. Can POP marketing help in grasping more consumer segment?
o Yeso Noo To some extent.
4. Can your product be adequately explained using POP marketing?
o Yeso No
5. Who is your target audience?
A. Male 18-34/and above…..B. Female 18-34/and above….C. Children…..D. Both (A) and (B)E. All of the above
6. According to you, which POP tool can be most effective for marketing your product?
a) Danglersb) Pamphlets c) Counter Tables d) Brochurese) Posters f) Floor /Ceiling Decalsg) Paper bagsh) Tent Cardsi) Table Flags
7. Mention(if any) your requirements (in volume) for printing any one/more of these products ________________________________________________________________________________________________________________________________________________________________________
8. Mention the names of your printing service provider.
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