Market study on newspapers

Abstract

Need for the study: In the Month of October, competition for Bangalore newspaper readers market became fierce through price cutting strategy. This study was instituted to understand the effects of the strategy. Objective of the study: To acquire insights into price elasticity of newspapers=> To comprehend customers' needs and wants. Scope of the study: Study was solely for English newspapers and only four major players in Bangalore were considered. It covered important areas of Bangalore. Methodology: The type of research used was Exploratory. Data required were split into primary and secondary data. Primary data were collected from Newspaper readers and Newspaper agents with the help of structured questionnaire. Information from advertising agencies were obtained through interviews. Sample sizes for Newspaper readers, Hawkers, agencies were 74, 36 and 8respectively. These were chosen using judgmental sampling. Major findings: From Readers' survey 8 Tamilians, Kannadigas and North Indians appear to have preference for The Hindu, Deccan Herald and Times of India respectively. (Refer Table 7, page no. 11)8 Deccan Herald seems to be the choice when one needs local news and advertisements(Refer Table 8, page no. 12)8 The need for science , educational youth related features and articles for inspiring children appears to be increasing (Refer Table 13, page no. 23)8 The Hindu seems to be on top in terms of coverage for readers above 40 years (ReferTable 12, page no. 21). Readers seem to be switching newspapers, if expectations are not fulfilled (Refer Exhibit 4 and Table 15, page no.24)8 Times of India seems to be favorite for trying out as another newspaper among readers(Refer Table 17, page no. 26)Newspaper agents:8 Overall increase in circulation is evident for all newspaper after price reduction (Refer Table 25). Out of total increase in order quantity, 51% has gone to Times of India,27% to Deccan Herald, 11% to Hindu and. 11% to Indian Express.8 Delivery time and price has correlation with order quantity of newspapers. If price comes down by Rs.0.50, 66% of respondents will be buying another newspaper and ifdelivery schedule by newspaper is further improved, 79% of hawkers/agents said that orders will increase. (Refer Table 30, 25 and 17) (Page no. 34, 31,26)Advertising agencies:8 Times of India seems to have emerged as second largest daily in Bangalore. It seems to have increased its circulation from 30000 copies to 70000 copies thus pushing Indian Express to Third or Fourth position. ( Refer Exhibit 16 and advt agencies -summary report, Page no.36).8 Times of India's promotional efforts seem to have borne desired results as it has shown an 49% increase in display advertisements in comparision with other newspapers. (Refer Exhibit 16 and advt agencies - summary repor, Page no.36)Suggestions8 Sports news coverage, In-depth analysis and articles for youth, children and different professions have to be increased8 Promotional activities and marketing efforts have to be stepped up to increase readership base and gain more advertisements8 Delivers' response to agents and hawkers has to be improved to keep present customers happy and to get new readers.