the price war in

Upload: jiten-shah

Post on 07-Apr-2018

222 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/3/2019 The Price War In

    1/46

    Presented by:

    Jayda Bhagwati

    Kamlesh Goplani

    Jugal Thakkar

    Jiten ShahKrishna Paudel

    Kamlesh Bharwad

  • 8/3/2019 The Price War In

    2/46

    Introduction

    Dainik Bhaskar Group

    Marketing Strategies Adopted by Divya Bhaskar

    Competitors Punch Challenges, Benefits & Strengths of D.B

    Conclusion

  • 8/3/2019 The Price War In

    3/46

    The caselet focuses on the successful launch ofGujarati Daily Newspaper- DIVYA BHASKAR, by theDainik Bhaskar group in Gujarat.

    The caselet illustrates the innovative market researchstudy undertook by the DB prior to the launch ofnewspaper that involved surveying the potential

    customers on a large scale.

  • 8/3/2019 The Price War In

    4/46

    It also describes the design of the newspaper whichwas based on the inputs obtained from the survey andits promotion to the customers.

    Finally the case talks about the success of DBs launchstrategy which resulted in Divya Bhaskar becomingthe market leader and over taking the existing market

    leader Gujarat Samachar.

  • 8/3/2019 The Price War In

    5/46

    Dainik Bhaskar commands a staggering 1.5 crorereadership in India as per National Readership Survey(NRS) published in December 2003.

    Divya Bhaskar, launched from Ahmedabad in June2003, began with 4,52,000 paid copies. As of February29 2004, the paper sold 5 lakh plus copies, making it

    clear leader in Gujarati Newspaper Segment.

  • 8/3/2019 The Price War In

    6/46

    Dainik Bhaskar- the fastest growing print media groupin the country today, began its journey with a four-page newspaper form Bhopal (MP) in 1958 as one ofthe business by the family by Late Dwarka PrasadAgarwal, the father of the chairman, Shri RameshChandra Agarwal.

  • 8/3/2019 The Price War In

    7/46

  • 8/3/2019 The Price War In

    8/46

    1958

    Dainik Bhaskar launches its first edition in Bhopal onAugust 13

    1977 Indias one of first web offset machine got installed at

    Dainik Bhaskar for Bhopal edition, against uniformprevalent practice of rotary machine

    1981

    Dainik BhaskarsBhopal edition became the largestnews paper of Bhopal City

  • 8/3/2019 The Price War In

    9/46

    1983 Launch of Dainik BhaskarsIndore edition - the first and

    biggest move outside home town of Bhopal on March 05

    1988

    Launch of Dainik BhaskarsRaipur edition1993 Launch of Dainik BhaskarsBilaspur edition on September

    20

    1995 Dainik Bhaskar emerged as the number one newspaper inMadhya Pradesh and was declared the fastest growing dailyin India, by the Readership Survey

  • 8/3/2019 The Price War In

    10/46

    1996 Launch of Dainik BhaskarsJaipur edition in Rajasthan on

    Dec 19. This development marked a critical point for thecompany, which significantly altered the strategic

    direction and growth plans of the company1997 Launch of Dainik Bhaskars fourth edition of Rajasthan

    from Bikaner on Oct 16

    Launch of the third edition in Rajasthan fromJodhpur onAug 03

    Launch of the second edition in Rajasthan fromAjmer onApril 06

  • 8/3/2019 The Price War In

    11/46

    1998

    Launch of Dainik Bhaskars fifth edition of Rajasthan fromUdaipur on May 31

    1999 Launch of Dainik Bhaskars sixth edition of Rajasthan from

    Kota city, the educational hub of the country.

    2000

    Dainik Bhaskar group expands presence to Haryana stateon June 04, by launching Panipat and Hisar editions

    Launch of Dainik BhaskarsChandigarh edition on May 07

  • 8/3/2019 The Price War In

    12/46

    2001

    Dainik Bhaskar Group further consolidated itsposition by launching Faridabad edition, in Haryana

    state, after two editions from Panipat and Hisar2003

    Launch of Divya Bhaskar fromAhmedabad on June 22.This was the biggest launch of any new edition, across

    languages, across territories in India where the dailywas launched with 4,52,000 copies on day first andbecame the leading publication in Ahmadabad city

  • 8/3/2019 The Price War In

    13/46

    2004 Launch of new Hindi magazine, AHA! Zindagi, the

    first of its kind on lifestyle and positive thinking

    In their first merger and acquisition, the DainikBhaskar group acquired Saurashtra Samachar thesixty years old, largest circulated daily newspaper ofSaurashtra

    Launch of Divya BhaskarsBaroda edition on Sept 12

    Initiated presence in Maharashtra with the launch ofDivya BhaskarsMumbai edition in July

    Launch of Divya BhaskarsSurat edition on March 28

  • 8/3/2019 The Price War In

    14/46

    2005

    AHA! Zindagi magazine launched in Gujarati language

    IMCL, a new web media company was formed as a

    subsidiary of DB Corp2006

    Entry in Punjab with launch ofAmritsar andJalandharedition on Oct 8

  • 8/3/2019 The Price War In

    15/46

    2007 Launch of DB Gold the first compact newspaper in

    Gujarati from Surat

    Launch of DNA inAhmedabad and Surat as a franchise by

    DB Corp Ltd Launch of Young Bhaskar Magazine for children and

    Lakshya, a career magazine

    Launch of Dainik BhaskarsLudhiana edition on Dec 15

    Launch of Divya BhaskarsBhuj edition on July 30, makingit the only Gujarati newspaper with seven editions inGujarat

    Launch of Divya BhaskarsRajkot edition on Nov 01

  • 8/3/2019 The Price War In

    16/46

    2008 Dainik Bhaskar completes fifty glorious years as a leading

    Hindi publication Business Bhaskar, a Hindi financial newspaper, was

    launched in Bhopal, Indore, Raipur, New Delhi, Panipath,Jalandhar and Ludhiana with separate editions for each ofthese cities

    Launch of Dainik Bhaskar editions in Pali, Nagaur, Bhilai,Ratlam and Shimla

    Launch of DNA inJaipur as a franchise by DB Corp Ltd Launch of editions of DB Star in Bhopal and Indore

    2009 Launch of DB StarJodhpur editions on Aug15, 2009

  • 8/3/2019 The Price War In

    17/46

  • 8/3/2019 The Price War In

    18/46

    Textile Oil Extraction and Refining FMCG Cable TV

    Family Entertainment Art and Culture Event promotion and Retail marketing Education FM Radio Multi Media Desk Real Estate Shopping Mall

  • 8/3/2019 The Price War In

    19/46

    Dainik Bhaskar

    http://c/Users/B11/Desktop/Dainik_Bhaskar.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar.mp4
  • 8/3/2019 The Price War In

    20/46

    Their actions and thoughts are based on the following principles: Entrepreneurship Ambition Innovation Professionalism

    They are totally professional and committed to a goal. Theremight be different ideas among them, but they respect thesediverse ideas.

    Their every effort will be focused on progress andentrepreneurship.

    They give utmost importance to creativity and innovation. Theyshould always endeavor to do anything better than before, itshould be special, should be effective and should be done withtotal commitment.

  • 8/3/2019 The Price War In

    21/46

    They believe in winning and teamwork. They believein delivering and always respect those who are capableof implementing every idea.

    They as an organization are totally committed toemployees.

    They should provide their consumers, what they needor which they require.

    They would play a positive role in the society, nomatter in what medium they would be in.

  • 8/3/2019 The Price War In

    22/46

    Gujarat-2000 newspapers

    Prevalent kings of Gujarati newspaper industry-

    GUJARAT SAMACHAR & SANDESH

    Gujarat samachar- started in 1932- 1.47 million readersduring July to December 2002

    Sandesh- started in 1943- 0.75 million during July toDecember 2002

  • 8/3/2019 The Price War In

    23/46

    Beginning of 2002- Dainik group, leading businesshouse in the country with a strong presence in printmedia industry, decided to launch a Gujaratinewspaper- Divya Bhaskar in Ahmedabad- A leading

    city in Gujarat.

    Conducted survey for 6-8 months in terms of both,

    product & advertisements.

  • 8/3/2019 The Price War In

    24/46

    Demographic/Socioeconomic:-Age, Sex, Income, Marital Status, Occupation

    Psychological/Lifestyle:-

    Activities, Interests, Personality Traits

    Attitudes/Opinions:-

    Preferences, Views, Feelings, Inclinations

  • 8/3/2019 The Price War In

    25/46

    Awareness/Knowledge:-Facts about product, features, price, uses

    Motivations:-Why People Buy (Needs, Wants, Wishes, Ideal-Self)

    Behavior:-Purchase, Use, Timing, Traffic Flow

  • 8/3/2019 The Price War In

    26/46

  • 8/3/2019 The Price War In

    27/46

    Phase 1: Consumer contact program through a door to door survey

    Survey of 1.15 million house holds in abad, mehsana &anand

    Analysis Dainik decided to launch newspaper according to

    consumers expecttions

    Simultaniously, mass media campaign was organised togive publicity to the launch.

  • 8/3/2019 The Price War In

    28/46

    Phase 2: Chali tamari marji

    Objective- informing the audience that the newspaper wasbeing launched according to their expectations

    0.75 million households in & around ahmedabad werecovered

    Bookings in the form of guarantee bonds

    Bonds- subscriptions of 1 yr w/o advance money from thesubscribers provided the price of the newspaper will

    remain unchanged

  • 8/3/2019 The Price War In

    29/46

    June 22 03, Divya Bhaskar was launched inAhmedabad

    Launched at the price of 1.5 Rs at the time whenprevelant rate of major newspapers in Gujarat marketwas Rs 2. Thus it seeded to break the existing cartle

  • 8/3/2019 The Price War In

    30/46

    Launched with a confirmed circulation of 4,52,150copies, the highest in country for any newspaperon its opening day.

    16 page newspaper with additional featuressupplement.

  • 8/3/2019 The Price War In

    31/46

  • 8/3/2019 The Price War In

    32/46

    Divya Bhaskar

    Product: All colour pages Printing Media Daily Newspaper Demand by Customers More Pages More supplements

    Place: 1st launched in

    Ahmedabad & then inBaroda & Surat & than

    whole Gujarat

    Product: Partially Colourfull

    Printing Media Daily Newspaper

    Provide what theywished

    Less Pages

    Less supplements

    Place: Every where in Gujarat

    Gujarat Samachar

  • 8/3/2019 The Price War In

    33/46

    Divya Bhaskar

    Price: @low price of 1.5 Rs

    Promotion: 1 yr subscription w/o

    advance

    Guaranteed bonds

    Fixed price for 1 yr

    Gifts for subscription

    Price: @high price of 2.5 Rs

    Promotion: Advance for

    subscription

    No guaranteed bonds

    No fix price

    No gifts for subscription

    Gujarat Samachar

  • 8/3/2019 The Price War In

    34/46

    How did competitors respond??? Many far reaching changes

    Professional business

    Investment increased in promotional activities

    Price war began

  • 8/3/2019 The Price War In

    35/46

    Success story of Divya Bhaskar

  • 8/3/2019 The Price War In

    36/46

    Success story of Divya Bhaskar

    http://c/Users/B11/Desktop/Dainik_Bhaskar_Success_Story.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar_Success_Story.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar_Success_Story.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar_Success_Story.mp4http://c/Users/B11/Desktop/Dainik_Bhaskar_Success_Story.mp4
  • 8/3/2019 The Price War In

    37/46

    Sandesh: Reduced price to 1.50 Rs

    Increased number of supplements

    Incresed number of color pages

    On the spot gifts

  • 8/3/2019 The Price War In

    38/46

    Gujarat Samachar: Strengthened their marketing team at national & local

    level

    New design & layout

    Pay nothing for the newspaper Mala maal dhamaka coupon scheme

    Conducted beauty events in association with AyurHerbals & Hindustan Lever Ltd

  • 8/3/2019 The Price War In

    39/46

    Difficulty in getting government advertisement

    ABC ( Audit Bureau of Circulation) refused toconduct survey

    Promotional strategies were against its term &conditions

    Competitors were established

    Existed loyal customer

  • 8/3/2019 The Price War In

    40/46

    Newspaper design based on the input obtained fromsurvey

    Group found 70% of reader were not happy with thereality coverage of current newspaper

    Such dedicated effort helped them to dethrone theking of the market

    Untapped need of readers finding revealed the need

    for a more people friendly newspaper

  • 8/3/2019 The Price War In

    41/46

    Whole paper was colorful Set up printing press in local district

    More supplements

    More space for advertisement world Generate loyal readership with relevant content

    Paid great deal of attention on localization of news

  • 8/3/2019 The Price War In

    42/46

  • 8/3/2019 The Price War In

    43/46

  • 8/3/2019 The Price War In

    44/46

    Recent survey had showed that Divya Bhaskar isholding a strong position in Ahmedabad withreadership figures of 5.132 mollion.

    Divya Bhaskar have been able to grow the market sincetheir first venture in 2003 & they have higher numberof female readers.

    The Bhaskar group is planning to come up with moreeditions & more printing centers to help DivyaBhaskar strengthen its position in entire Gujarat State.

  • 8/3/2019 The Price War In

    45/46

  • 8/3/2019 The Price War In

    46/46