1 1.1Rationale of the study: The project report on Business Standard is made keeping in view the changing need of customers and ever increasing awareness. As the number of newspaper being published in Indian market is increasing, the competition is huge. When we talk about business news papers, there are six business dailies being published in India. Among these The Economic Times is clear leader by huge margin. Under such circumstance for Business news paper like Business Standard, with no strong background unlike ET, it is very difficult to compete. Still BS stands at second position as far as circulation is concerned. But there is still a lot of scope of improving its position. Keeping in view the potential of BS the project is aimed at finding some of the facts and findings which may be of some help. The project is a detailed research of market share, growth rate, readership, SWOT analysis, Industry Overview, and potential growth opportunities of Business Standard. So in this project I have done a research analysis where in I have analyzed how company offers great deal of its products and what is the satisfaction level of Customers which ultimately helps finding market potential for Business Standard.
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Transcript
1
1.1Rationale of the study:
The project report on Business Standard is made keeping in view the changing need of
customers and ever increasing awareness. As the number of newspaper being published in
Indian market is increasing, the competition is huge. When we talk about business news
papers, there are six business dailies being published in India. Among these The Economic
Times is clear leader by huge margin. Under such circumstance for Business news paper like
Business Standard, with no strong background unlike ET, it is very difficult to compete. Still
BS stands at second position as far as circulation is concerned. But there is still a lot of scope
of improving its position.
Keeping in view the potential of BS the project is aimed at finding some of the facts and
findings which may be of some help. The project is a detailed research of market share, growth
rate, readership, SWOT analysis, Industry Overview, and potential growth opportunities of
Business Standard.
So in this project I have done a research analysis where in I have analyzed how company
offers great deal of its products and what is the satisfaction level of Customers which
ultimately helps finding market potential for Business Standard.
2
INDUSTRY PROFILE
2.1 Media and Entertainment
Media, the fourth estate, when entwined with the entertainment component represents
an effective facet of consumers in India. Technology has played a key role in influencing the
entertainment industry, by redefining its products, cost structure and distribution.
The Indian Media and Entertainment (M&E) industry stood at US$ 12.9 billion in
2009 registering a 1.4 per cent growth over last year, according to a joint report by KPMG
and an industry chamber. Over the next five years, the industry is projected to grow at a
compound annual growth rate (CAGR) of 13 per cent to reach the size of US$ 24.04 billion
by 2014, the report stated. Additionally, the gaming segment is expected to be the fastest
growing sector in the M&E industry. The sector showed a 22 per cent growth in 2009 and is
expected to grow at a CAGR of 32 per cent to reach US$ 705.2 million by 2014, while the
animation segment is expected to record a CAGR of 18.7 per cent in the next five years as
per the joint report.
2.1.1 Television
According to the figures released by an industry chamber in March 2010, the
Broadcast and Television (TV) sector comprised over 43 per cent of the overall M&E sector
wherein the total size of the television sector accounted for US$ 5.7 billion. The broadcast
sector is on a strong growth path and the outlook for advertisement expenditure is on a rise
for the television sector.
A report by research firm Media Partners Asia (MPA) stated that India is poised to
become the world's largest direct-to-home (DTH) satellite pay TV market with 36.1 million
subscribers by 2012, overtaking the US. Furthermore, in its report titled 'Asia Pacific Pay-TV
and Broadband Markets 2010', MPA said India's DTH subscriber base will increase from 17
million in 2009 to 45 million by 2014 and 58 million by 2020.
Anil Dhirubhai Ambani Group's company, Reliance MediaWorks (RMW) has signed
a memorandum of understanding (MoU) with IMAGICA Corp of Japan for film processing
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services. Under this alliance, RMW, on behalf of IMAGICA, would provide film restoration,
image processing and enhancement and high definition (HD) conversion services to the
Japanese clients. IMAGICA Corp would work with RMW's Los Angeles-based subsidiary
Lowry Digital, which has handled projects for leading studios like Walt Disney, Paramount
Pictures, MGM and 20th Century Fox. RMW would be doing the processing job for
IMAGICA either in India or in California in the US.
2.1.2 Music
The music industry is a vast entity and over the years it has witnessed change
significantly. The potential of the Indian music industry can be better understood from its size
estimated at around US$ 182.9 million in 2010, up from US$ 160.9 million in 2008,
portraying a growth of 14 per cent during the reporting period. It is expected to grow at a
CAGR of 16 per cent over 2010-14 to reach US$ 379.1 million.
2.1.3 Radio
Radio is considered a mass medium. It ideally suits the Indian environment -
leveraging its twin advantages of wide coverage and cost effectiveness. Currently, the sector
generates annual revenues worth US$ 49.5 million and is growing at around 20 percent
annually, according to the joint report by KPMG and an industry chamber.
To exploit the true potential of this sector, frequency modulation (FM) radio needs to
step up its penetration to at least 300 stations in 100 cities, which would further attract an
investment of US$ 899,160 per radio station frequency, the total additional investment
required has been estimated at US$ 247.3 million, according to industry sources.
Radio is expected to grow at a CAGR of 16 per cent over 2010-14 and reach to a size
of US$ 361.4 million by 2014.
Globally, radio is enjoying a revival, based on the support of the youth, with players
like Radio Mirchi emerging out as one of the clear leaders with over 41.2 million listeners, as
per the recently published Indian Readership Survey (IRS) quarter 1 (Q1), 2010.
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VedantiNET, the Broadband and application service provider of Guwahati promoted
by SM Computer Consultants Pvt Ltd, has launched the service of first Internet Radio of
Assam, ‗Radio Assam', in the city.
2.1.4 Advertising:
A report by consultancy firm KPMG stated that the US$ 5.2 billion advertising
industry is set to grow at a compounded annual growth rate (CAGR) of 14 per cent in 2010,
in comparison to the last year. KPMG observed that online advertising will grow about 30 per
cent per annum, establishing itself as the fastest growing advertising medium. While
elaborating further it stated that the growth in regional advertising is partly driven by new
sectors such as education, hospitality, jewellery and real estate which often have local brands
and therefore prefer to advertise through local channels.
Emphasising on the Internet advertising industry, KPMG said the US$ 185 million
industry would encourage both multinational companies and local brands to focus on their
marketing strategies.
2.1.5 Cinema:
Films Division has been motivating the broadest spectrum of the Indian public with a
view to enlisting their active participation in nation building activities.
According to the joint report by KPMG and an industry chamber, the film industry
contracted 14 per cent growth in 2009 wherein the industry is projected to grow at a CAGR
of 9 per cent to touch an estimated amount of US$ 3.02 billion over the next five years.
Growth drivers for the sector would include expansion of factors like an increase in the
number of multiplex screens, digital screens facilitating wider releases, higher cable and
satellite revenues, improving collections from the overseas markets and supplementary
revenue streams like DTH, digital downloads, etc, which are expected to emerge in future.
Reliance MediaWorks Ltd has signed a deal with UFO Moviez to establish a gateway
for digital film releases on Indian screens. The pact will enable the firm to combine UFO
Movies digitisation technology with its programming expertise and digital cinema experience
as stated by Reliance Media works.
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2.1.6 Print/Publishing:
The print media industry is projected to grow at a CAGR of 9 per cent and targets to
reach around US$ 5.93 billion by 2014, according to the joint report by KPMG and an
industry chamber.
Jagran Prakashan of Jagran Group, which publishes one of India's largest read
language dailies, stated that it will acquire all the publications of Mid-Day Multimedia in a
stock deal valued nearly at US$ 40 million.
Foreign investment, including foreign direct investments (FDI) and investment by
non-resident Indians (NRIs)/person of Indian origin (PIO)/foreign institutional investor (FII),
up to 26 per cent, is permitted for publishing of newspapers and periodicals dealing with
news and current affairs under the Government route.
FDI policy for publication of Indian editions of foreign magazines dealing with news
and current affairs is: Foreign investment, including FDI and investment by NRIs/PIOs/FII,
up to 26 per cent, is permitted under the Government route. 'Magazine', for the purpose of
these guidelines, will be defined as a periodical publication, brought out on non-daily basis,
containing public news or comments on public news. Foreign investment would also be
subject to the Guidelines for Publication of Indian editions of foreign magazines dealing with
news and current affairs issued by the Ministry of Information and Broadcasting (I&B) on
Publishing/printing of Scientific and Technical Magazines/specialty journals/ periodicals
100per cent FDI is permitted under the Government route.
2.1.7 Theatre:
Mexico-based multiplex operator Cinepolis plans to set up 40 screens over the next
12months in India, which could entail an investment of US$ 28 million.
Milan Saini, Head and Managing Director, Cinepolis India Country stated that "India
is a huge opportunity for us as the market is under-penetrated. We plan to set up 40 screens
over the next 12 months across seven properties in cities like Mumbai, Bangalore, Chennai
and Hyderabad."
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2.1.8 Digital Media:
The digital technologies and their innovative applications have changed the
entertainment sector considerably, especially the content production and its quality. Internet
has also emerged as the latest revenue stream and has become one of the fastest growing
advertising medium and has made a significant impression on the entertainment industry.
Officials in the Information and Broadcasting Ministry have planned a roadmap for
making broadcasting operations completely digital. The Telecom Regulatory Authority of
India (TRAI) has suggested a three-stage process for digitisation, wherein tier one cities
would be covered by 2013, tier two cities by 2014 and tier three cities by 2017. They further
stated that the digital transmission helps in enhancing the audio and picture quality.
Madison Media bagged the media buying account of US carmaker General Motors
(GM), estimated at more than US$ 22.1 million. GM, the third biggest ad spender among
auto companies in the country after Maruti Suzuki and Hyundai Motor, has given the account
to Madison for a period of three years.
2.2 GOVERNMENT INITIATIVES
The Government has initiated the following measures:
The government has allotted US$ 50.13 million in the current Five-Year Plan (2007-
2012) for various development projects for the film industry. The funds will be utilised to
set up a centre for excellence in animation, gaming and visual effects
To offer better audio quality and sharper picture to millions of its viewers, public
broadcaster Doordarshan plans to go completely digital by 2017.
According to the Consolidated Foreign Direct Investment (FDI) Policy document
released by the Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce and Industry, Government of India, foreign investment, including foreign direct
investments (FDI) and investment by non-resident Indians (NRIs)/person of Indian origin
(PIO)/foreign institutional investor (FII), up to 26 per cent, is permitted for publishing of
newspapers and periodicals dealing with news and current affairs under the Government
route.
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The Consolidated FDI Policy document brings forth the following guidelines for the M&E
industry:
Terrestrial Broadcasting FM (FM Radio): Foreign investment, including FDI, NRI and PIO
investments and portfolio investments are permitted up to 20 per cent equity for FM Radio's
Broadcasting Services with prior approval of the Government subject to such terms and
conditions as specified from time to time by Ministry of Information and Broadcasting for
grant of permission for setting up of FM radio stations.
Cable Network: Foreign investment, including FDI, NRI and PIO investments and portfolio
investments are permitted up to 49 per cent for cable networks under Government route
subject to Cable Television Network Rules, 1994 and other conditions as specified from time
to time by Ministry of Information and Broadcasting (I&B).
Direct–to-Home: Foreign investment, including FDI, NRI and PIO investments and portfolio
investments are permitted up to 49 per cent for Direct to Home under Government route.
Within the limit of 49 per cent, FDI will not exceed 20 per cent. This will be subject to such
guidelines/terms and conditions as specified from time to time by Ministry of Information
and Broadcasting (I&B)
The total direct and indirect foreign investment including portfolio and foreign direct
investment in Headend-In-The-Sky (HITS) Broadcasting Service shall not exceed 74 per
cent. FDI upto 49 per cent would be on automatic route and beyond that under government
route. This will be subject to such guidelines/terms and conditions as specified from time to
time by Ministry of Information and Broadcasting (I&B)
FDI policy in the Up-linking of TV Channels is as under:
Foreign investment of FDI and FII up to 49 per cent would be permitted under the
Government route for setting up Up-linking HUB/ Teleports.
FDI up to 100 per cent would be allowed under the Government route for Up linking a Non-
News & Current Affairs TV Channel; Foreign investment of FDI and FII up to 26 per cent
would be permitted under the Government route for Up-linking a News & Current Affairs TV
Channel subject to the condition that 48 the portfolio investment from FII/ NRI shall not be
"persons acting in concert" with FDI investors, as defined in the SEBI(Substantial
Acquisition of Shares and Takeovers) Regulations, 1997
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2.3 GOING GLOBAL:
Reliance Big Entertainment, owned by Anil Ambani, has bought half of UK's games
and publishing company, Codemasters. The investment is expected to open up the fast-
growing Indian market for Codemasters, in order to assist Reliance tap the potential of games
which is vividly catching the fantasy of the growing local interest. Rod Cousens, CEO of
Codemasters stated that the deal will help the company realise the full potential of their game
coding and online excellence across various platforms, especially in the world's fastest-
growing markets.
2.4 PRINT MEDIA:
2.4.1 Print media in India:
India offers a promising market for the print media industry. The expected CAGR of 12
per cent up to 2010 is a result of the increasing rate of literacy and thus the increase in the
number of people reading newspapers and magazines. Also, the demand for the latest events
in the country and the world is driving the newspaper industry growth. In 2010, the print
media is expected to reach Rs 19,000 crore from its present value of Rs 17,500 crore.
Current size: Rs 17,500 crore
Projected size by 2010: Rs 19,000 crore
CAGR: 8%
The bright future and the immense scope of the Indian print media have also aroused
the interest of foreign investors and recently the government has opened up the sector to
foreign investment. Foreign media has also shown interest in investing in Indian publications.
The revenues for India's newspaper market are generated from advertising and circulation.
India's growth rate in this segment is poised to be higher than the average rate of growth in
the Asia-Pacific region over the next four years.
Digital printing, new ways of promotion and distribution are the latest trends and
content being the focus of the print media industry. A few leaders in India in this segment
are: Times of India Group, Dainik Jagran, Lok satta, The Hindustan Times and The Hindu.
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2.4.2 News paper:
The history of newspapers is a dramatic chapter of the human experience going back
some five centuries. In Renaissance Europe handwritten newsletters circulated privately
among merchants, passing along information about everything from wars and economic
conditions to social customs and "human interest" features. The first printed forerunners of
the newspaper appeared in Germany in the late 1400's in the form of news pamphlets or
broadsides, often highly sensationalized in content. Some of the most famous of these report
the atrocities against Germans in Transylvania perpetrated by a sadistic veovod named Vlad
Tsepes Drakul, who became the Count Dracula of later folklore.
In the English-speaking world, the earliest predecessors of the newspaper were
corantos, small news pamphlets produced only when some event worthy of notice occurred.
The first successively published title was The Weekly News of 1622. It was followed in the
1640's and 1650's by a plethora of different titles in the similar news book format. The first
true newspaper in English was the London Gazette of 1666. For a generation it was the only
officially sanctioned newspaper, though many periodical titles were in print by the century's
end.
2.4.3 Asia’s role in the Newspaper industry:
Worldwide newspaper sales edged up by more than two percent in 2007 while
advertising revenue recorded significant gains, according to the World Association of
Newspapers.
In its report on trends in the newspaper industry, the WAN said nearly 515 million
copies of newspapers were sold daily in 2007 and read by an estimated more than one billion
people worldwide. China, India and Japan were the world's biggest newspaper markets in
2007 and China overtook Japan as the country with the highest number of publications in the
world.
Three-quarters of the world's 100 best selling daily newspapers were now published
in Asia where sales were up 4.1 percent for the year. The figures from WAN's annual survey
of press trends, were released to more than 1,300 publishers, editors and other senior
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newspaper executives from 81 countries attending the World Newspaper Congress and the
World Editors Forum, Asia's biggest ever media gathering.
Worldwide newspaper circulation grew 2.1 percent, the number of daily titles was up
two percent and advertising revenue rose 5.3 percent, its biggest jump in four years, the
WAN report said. "It has been an extraordinarily positive 12 months for the global newspaper
industry," said Timothy Balding, director general of the Paris-based WAN.
"Newspapers are clearly undergoing a renaissance through new products, new
formats, new titles, new editorial approaches, better distribution and better marketing."
Graph: Growth of Print media(in INR billion):
Source: FICCI REPORT
2.5 INDIAN NEWSPAPER INDUSTRY:
India is one of the few countries in the world to have many business newspapers,
which not only reflects the vitality and vibrancy of the media, but also the new vitality of our
economy. The large readership for these business newspapers transcends from the rapidly
growing corporate sector, it also illustrates the growing interest that the general public now
evinces in economic matters which reflect the growing importance of business and economy
in our national discourse.
108128
148 159 162175
0
20
40
60
80
100
120
140
160
180
200
2004 2005 2006 2007 2008 2009
Graph 2.4.3.1: Growth of Print media (in INR billion):
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There was a huge growth in the sales of the business newspapers for the past few
years. According to the recent study by Federation of Indian Chambers of Commerce and
Industry (FICCI), this growth would outperform the general economy each year till 2011.
The Indian print media industry netted $90.80 million in foreign investment in the last
three years; few papers like Business standard have tied up with Financial Times of London.
Business newspapers have the ability to carry the message in greater detail and clarity, more
in-depth information and analysis, which helps companies and their business.
Business newspapers are re-inventing themselves to protect their turf in a fiercely
competitive multi-media environment. They are using different strategies to attract the
customers of different sectors. Business newspapers focused mainly on business news,
insightful views on significant issues and comprehensive coverage of the stock market.
They have managed to hold the attention and fidelity of more than 9, 00,000 readers
(both individual and corporate across the nation). All the business newspapers in India
(Economic Times, Business Standard, Financial Times, Business Line, Mint and Financial
Chronicle) are working strategically to increase their sales.
This Summer Internship Program is also designed with a view to study about the
market regarding the personal sale of the Business Standard products and also looking for
subscriptions and promoting the product and also creating awareness about business
newspapers among different sectors.
The aim is to create an in-depth awareness of the brand Business Standard among the
various segments of readers, in comparison to other business dailies like Economic Times,
Business Line and Financial Times. There is a huge scope of growth for Business
newspapers in coming years as only a paltry 0.1% of the population is reading business
newspapers at present.
Newspapers reach only 35 per cent of our adult population even though the adult
literacy is about 65 per cent. To build this gap between readership and literacy and also to
remain competitive the publications have kept their prices low and depended entirely on
advertisers to subsidize the reader and to increase the sales.
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The Indian Newspaper industry can be primarily segmented across two categories viz
English Newspapers and Regional / Vernacular Newspapers. The English medium dominates
the industry in terms of advertisement revenues, though vernacular newspapers outperform
the English newspapers in circulation.
English newspaper industry in India has been fragmented with the players having a
regional focus such as the Deccan Chronicle in Hyderabad, Hindustan Times in Delhi, Times
of India in Mumbai, Hindu in Chennai, Telegraph and Statesman in Kolkata, Deccan Herald
in Bangalore, Gujarat Samachar in Ahmedabad. However, the industry is witnessing a trend
whereby players are looking beyond their home territories viz. Times of India‘s and Business
Standard‘s entry into certain newer territories and Deccan Chronicle and Hindustan Times
also doing the same.
The competitive landscape has now drastically changed with major publishers trying
to expand to other geographic regions, initiating price wars and marketing campaigns to win
readers. The competitive intensity, which was quite ―mild‖ until few years ago, also reached
a higher level with the launch of DNA and Hindustan Times in the Mumbai market.
A booming economy and the opportunity to raise funds from a well-developed
financial market have also contributed to the growth of the newspaper industry in India.
Indian newspaper industry has turnover of Rs 16,200 crore in 2009. It is expected to touch
Rs 17,500 crore. The size of media industry in India as a portion of the GDP is estimated
at 0.7%, which is lower than most of the developed and developing nations. Thus it offers a
scope of high growth in this industry moving forward. Advertising expenditure to GDP
reveals that advertisement expenditure to GDP ratio in India is 0.4%. With rising income and
education level in India, readership is expected to rise and with favorable demographics,
advertising revenues will increase as advertisers start spending more to attract higher quality
audience with more purchasing power.
Newspaper publication is usually issued on a daily or weekly basis, the main function
of which is to report news. Many newspapers also furnish special information to readers, such
as weather reports, television schedules, and listings of stock prices. They provide
commentary on politics, economics, and arts and culture, and sometimes include
entertainment features, such as comics and crossword puzzles. In nearly all cases and in
varying degrees, newspapers depend on commercial advertising for their income.
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Present scenario is that by the time, they see a newspaper, most people have already
learned about breaking news stories on television or radio. Readers rely on newspapers to
provide detailed background information and analysis, which television and radio newscasts
rarely offer. Newspapers not only inform readers that an event happened but also help readers
understand what led up to the event and how it will affect the world around them.
List of top thirty newspapers (circulation wise):
Sr.
No
Newspaper Language Daily
Circulation
(in
millions)
Owner
1 The Times of India English 3.146 Bennett, Coleman and Co. Ltd.
2 Dainik Bhaskar Hindi 2.547 DB Crop Ltd.
3 Dainik Jagran Hindi 2.168 Jagaran Prakashan Ltd.
4 Malayala
Manorama
Malayalam 1.514 Malayala Manorama Group
5 The Hindu English 1.360 Kasturi & Sons Ltd.
6 Eenadu Telugu 1.350 Ramoji Group
7 Deccan Chronicle English 1.349 Deccan Chronicle Holdings Ltd.
8 Ananda Bazar
Patrika
Bengali 1.277 Ananda Publishers
9 Amar Ujala Hindi 1.230 Amar Ujala Publications Ltd.
10 Hindustan Times English 1.143 HT Media Ltd
11 Hindustan Hindi 1.142 HT Media Ltd
12 Sakshi Telugu 1.256 Jagati Publications Ltd.
13 Mathrubhumi Malayalam 1.077 Mathrubhumi Group
14 Gujarat Samachar Gujarati 1.051 Lok Prakashan Ltd.