Internship Report (roll-11 Marketing) Draft Copy (prothom Alo)

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INTERNSHIP REPORT (DRAFT COPY) Attention To: Mr. Badiuzzman (Program Co-Ordinator) & Internship Guide.

Internship Report

MARKETING STRATEGY OF NEWSPAPER INDUSTRY IN BANGLADESH: A STUDY ON DAILY PROTHOM ALO

PREPARED BY Md. Atiqur Rahman BBA (Major in Marketing) Registration No-00551 Roll-011 Session-2003-2004 E-mail: [email protected] Patuakhali Science and Technology University

Bangladesh (www.pstu.ac.bd)

Marketing Strategy of Newspaper Industry in Bangladesh: A Study on The Daily Prothom Alo

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A newspaper is one of the most important reading materials in the life of a literate people. In the modern age, without a newspaper a person cannot think of his/her daily

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1.1 Executive Summary routine life. The need for a proper marketing of the newspaper marketing has arisen because of the rapid change in the communication process. An effective marketing strategy is required to retain the current customers as well as to attract potential ones. A newspaper as a product can satisfy the need for getting the information that helps in decision-making process of the social and family life. In Bangladesh, Bengali is widely used in every class of families. People read Bengali newspapers to obtain information about national and international affairs. As people of Bangladesh are getting conscious about the need information, the number of readers of the national dailies is rising. At present, many national and international organizations are operating their offices in Bangladesh. Foreigners working in these interpreters. The number of readers of Bengali newspapers is increasing day by day. Currently, the largest circulated Bengali daily newspaper in the country is "The Daily Prothom-Alo" with having an average circulation of 400,000 copies per day. Marketing information system can help formulation of the marketing strategy of a newspaper. This study aims to overview how "The Daily Prothom Alo" authority can improve their marketing strategy and fulfill the need of the readers when not only print media but also electronic media is contesting very aggressively to attract current as well as potential customers. Market segmentation can provide information about the characteristics shared by the readers of the daily. Long-term vision is required to sustain the upcoming challenging environment with the rapid changes in the world. Competition is a never-ending process. Before the publication of "The Daily Prothom Alo", "The Daily Jugantor" was the highest circulated Bengali daily. However, it could not retain the position of the highest circulated Bengali daily. "The Daily Prothom Alo” authority may use constant marketing intelligence force to remain number one Bengali daily in Bangladesh.

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organizations also read both Bengali and English newspapers by using the help of

The main objective of the study is to make an overview of the marketing strategies of

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1.2 Objectives of the study

"The Daily Prothom Alo". However the specific objectives are as follows: • To conceptualize 'what marketing strategy means' through a literature survey. • To define effective marketing strategy for motivating potential readers of "The Daily Prothom Alo". • To ascertain the fulfillment of the readers' need through reading only one

• To provide recommendations for increasing circulation of the paper. • To suggest how "The Daily Prothom Alo" can remain in a position of competitive advantage among other Bengali newspapers in Bangladesh. • To accomplish the internship program for attaining the Bachelor of Business Administration (BBA) degree. • To get a overview of the marketing strategy of the entire media industry of Bangladesh.

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Bengali Daily.

Methodology of the study

The study is based on primary data. For the purpose of collecting primary data, an unstructured questionnaire is used. Under the preview of the interviewed- the

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1.3

officials of Daily Prothom Alo, students of some private Universities, doctors, lawyers and housewives, are covered to analyze the competitiveness of "The Daily Prothom Alo "and then provide recommendations for designing effective marketing strategy. The study used random sampling in designing the sample. Total number of respondents was 100. Out of them total number of students of one public Universities and two private universities, i.e., East West University (EWU), and Stamford University were 60. Other respondents were - number of Doctors: 10, Number of Lawyers: 10; Number of Housewives: 10, and Number of Bankers were: Alo". The study tried to collect the opinion of the readers as well as target customers regarding their expectation from the daily. The study also interviewed circulation manager of Hawkers Union of Dhaka city to know the present circulation of different Bengali newspapers in Barisal The study also analyzes strength, weakness, opportunity and threat. Time period of the study is April 2009 to July 2009. .

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10, the study determines weighted average of the readers of "The Daily Prothom

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1.4 Limitations of the study Some of the Limitations of the study can be mentioned below: • The study was done only in the Dhaka city. • The study did not include the govt. officials. •

The study did not consider the different groups of people such as politicians, teachers, police, member of armed forces, social workers etc.

•

As competitors of "The Daily Prothom Alo" the survey considered only "The Daily Jugantor" and "The Daily Shamokal". It did not consider other English

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and Bengali dailies like "The Daily Ittefaq", "The Daliy Nayadiganto", "The Daily Amadershomoy", etc.

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Evans and Berman (1982) comment that a strategy outlines the manners in which marketing is used to accomplish a firm's objectives. They argue that often a firm

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1.5 Literature Review

selects a strategy from among two or more possible alternatives. Neill (1986) describes that busy potential clients are often unable to attend seminars, as many financial planners have found it rather hard ways. Teaching them and making the newspaper available and the newspaper firm is reachable through if their publication can ensure, then they are most likely to read-the local newspaper. Dertouzos and Trautman (1990) by specifying and estimating a five-equation model of newspaper operations, provide evidence useful for addressing several issues concerning media concentration. On the cost side, the results indicate that there exist hand, the evidence suggests that chain newspapers cannot produce output more efficiently than independent ones. On the demand side, rival newspapers located in contiguous geographic markets appear to have an important competitive effect on the demand for circulation. Dillon et al. (1993) observe that marketing research helps marketing obtained the data. Schultz (1993) describes a strategic approach which is one of the must pressing issues of our business. He describes a method for making decisions to ensure the long-term health all profitability of newspapers of all sizes. Trivets (1996) observed that the segmenting of business markets is a process of refining the business markets into usable components. He further commented that the marketing personnel should know the sales and profitability of the broad product markets of the target: markets, and of the individual businesses.

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significant scale economies in the production of circulation and space. On the other

updating, maintenance of a database and telemarketing operation, filed sales support system, customer services and credit collection.

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Imam and Ali (2000) comment that database marketing involves the creation of

Freil: Owriz Equal. (2000) observe that the placement of products in many media alternatives available today is becoming an important part of marketing and profanation. Applications of the technique demonstrate the importance of creating m communicating with potential customers. In addition, to ensure delivery of a consistent message through product placement and for all sort of promotional activities, an integrated marketing communication system is necessary. Gross (2000) argues that competition in the organizational marketplace is generally keen, whether the rivalry is across the streets or across the oceans. Judging the nature of competition by looking at structure conduct, and performance is a useful initial step among existing firm’s possible entry into the market by new firms, substitutes and forward or backward integration. Scott (2000) observes that building positive and constructive day-to-day working relationships with the people can impact the last theft. of the marketing process. Too often, customer service managers and employees who are responsible for creating and maintaining customer relationships are isolated from advertisement, sales, circulations. Without knowledge of the day-to-day challenges and opportunities, marketers are handicapped in their ability to create the plans and budgets required to achieve business goals. Walker et al. (2000) argue that the development of marketing information system raises legal and ethical questions because offbeat potential to harm individual.

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However, marketing managers must go further and consider the intensity of rivalry

wit high customer turnover must get a Customer Relationship Management (CRM) project. There is n r doubt that customer information is the lifeblood of any business and hence, CRM initiatives. 1-luwever, CRM needs a better implementation if it is to

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Agarwal (2002) describes that the guiding philosophy that all firms especially those

contribute to the corporate renaissance. Hill (2002) argues that a critical element of a firm's marketing mix is its distribution strategy, the means it chooses for delivering the product to the consumer. The way the product is delivered is determined by the firm's entry strategy. Waldfogel and George (2003) argue that when consumers share similar preferences, additional consumers will bring forth products that confer positive "preference externalities" on others. However, if distinct groups of consumers have substantially different preferences, the groups bring forth products with more appeal to themselves

According to SFN Home Published Reports (2003) the newspaper industry is highly competitive, and threats are changing all the time. They are uniquely dependent on inter-related revenue steams provided by sales and advertising.

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and less appeal to others.

Through effective planning among competitive marketing strategies, the organization

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2.1 Marketing Highlights: The competitors

needs to have knowledge about the products of their competitors. At first, it has to identify its actual and potential competitors. Presently, "The Daily Prothom Alo" is the highest circulated Bengali newspaper of Bangladesh. But in order to maintain its leading position in thee market, it has to focus on the competitors. Competitors of "The Daily Prothom Alo "are "The Daily Jugantor" and "The Daily Shamokal".”The Daily Prothom Alo" is now at the leading position, "The Daily Jugantor "is at the second place, while "The Daily Shamokal" is at the third position.

Regular Pages (Published in The Daily Prothom Alo) Sara Desh, Bishal Bangla, Babsha O Banijo, International, Sports, Share Market, Porasuna, Editorial and SubEditorial, Computer Protidin, and Cultural etc. Regular Pages (Published in The Daily Jugantor): Khobor, Banglar Mukh, Khela. Dosh Diganto, Editorial and Sub-Editorial, IT Bisha and Cultural news etc. Regular Pages (Published in The Daily Shamokal) : National News, Local News, Editorial and Sub-Editorial, Entertainment, Business, and Sports etc.

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2.2 Product Overview of Three Dailies:

Day

Contents of The Daily Prothom Alo Alokito (East, West), Ain O odhikar,

Sunday

Stadium, Bighan Projonmo, Shasto

Contents of The Daily Contents of The Daily Shamokal Jugantor Shikhagon, Business

Grehoner kal,

Special

Bighan o projkti

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Now a comparative study among three dailies is given below:

kushul Monday

Rosh+Alo

Bsichu

Tuesday

Nokhsha

-

Wednesday

Narimonj, Bondhushava, Shasto

Kaler kehya -

Sojon Somabesh

Surid Shomabesh

Thursday

Anando (shonoskriti)

Shonskriti

-

Friday

Chutir Dinae

-

Projokti Protidin

Saturday

Shahitto Shamoykee, Projonmo Dot com

Ajker Computer

-

Source: On the basis of publication of three dailies other special materials are published on different occasions by each daily.

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Kushul

The marketing strategy, price is one of the important factors. We have shown below

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Comparative Pricing the comparative position of price of three newspapers:

Days

Daily Prothom Alo

Daily Jugantor

Daily Shamokal

Saturday-Thursday

Tk. 8

Tk. 8

Tk. 8

Friday

Tk. 10

Tk. 8

Tk. 8

Source: Compiled on the basis of the collected data

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Comparative Sales Current sale of newspaper in Dhaka City among three dailies Table-3: Current sales in Dhaka (July, 2009) Newspaper Daily Prothom Alo Daily Jugantor Daily Shamokal

Sales (daily)

150,000 80000 70000

Source: Compiled on the basis of the collected of data

From the aforesaid table, the study observes that" The Daily Prothom Alo" has the highest circulation among the Bengali newspapers in Dhaka city.

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Readers arc the main focus of the newspaper industry in the today's competitive market. Sound marketing requires careful analysis of the readers. In case of "The

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3.1.1 Analysis of some Readers Psychology

Daily Prothom Alo", we have known from the Hawkers Union that about 60% of the total Bengali newspaper readers in Barisal City read "The Daily Prothom Alo". Before developing appropriate marketing strategies for a newspaper, the management of the paper has to know the percentage of the actual readers as well as prospective readers. To sustain in the competitive advantage position the management of the newspaper has to research and develop strategic marketing on the basis of the both categories of the readers' opinion.

3.1.2 Students of Public and Private Universities Besides public Universities, there are several private Universities in Bangladesh. The University, Independent University of Bangladesh, American International University of Bangladesh, The People's University of Bangladesh, and Asian University of Bangladesh,

Stamford

University,

BRAC

University,

Southeast

University,

Ahsanullah University of Science and Technology. Students of Private Universities are target readers of English newspapers. The study conducted survey among students of three reputed Private Universities. Findings are presented in Table : 4 and Fig -1: Table-4: Survey among the students of Different Private Universities Percentage Number of the Percentage of Reader of S1. Name of the Students of Bengali English The Daily No. University Interviewed Newspaper Newspaper Prothom Reader Reader Alo

Reader Reader of of the Daily Daily Jugantor Shamokal

1

DU

20

70%

24%

55.56%

34.72%

9.72%

2

EWU

20

60%

40%

62%

28%

10%

3

SF.U

20

50%

50%

52%

39%

9%

Source: Compiled on the basis of the collected of data

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well known private Universities are as follows: North South University, East West

them, the majority read of "The Daily Prothom Alo" .Readers of "The Daily Prothom Alo" range from 52 to 62 percent. However, following are the common comments of

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The study has found that most of the students are readers of Bengali dailies. Out of

the students about "The Daily Prothom Alo": • •

Cultural activities of the students should be published. Information about higher education should be provided in this newspaper.

• Information about job vacancies should be published for potential

graduates.

3.1.2 Survey among doctors Bangla newspaper readers = (85/300)/100 = 78.33% Findings are mentioned below in Table: 5 and also shown in Fig: 2: Table-5: Percentage of different Bengali Newspaper readers among Doctors

Newspaper

Percentage of readers

The Daily Prothom-Alo

17.22%

The Daily Jugantor

9.23%

The Daily Shamokal

7.25%

Source: Compiled on the basis of the collected of data

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Percentage of English newspaper readers = (215/300)/100 = 71.67% Percentage of

Survey among the lawyers

Percentage of English newspaper readers = (157/300)/100 = 52.33% Percentage of Bangla newspaper readers = (143/300)/100 = 47.67% Findings are mentioned below in Table: 6 and also described in Fig:3:

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3.1.3

Table-6: Percentage of different English Newspaper readers among Lawyers

Newspaper

Percentage of readers

The Daily Prothom-Alo

26.22%

The Daily Jugantor

19.23%

The Daily Shamokal

13.86%

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Source: Survey report of marketing dept. of Daily Prothom Alo

3.1.4 Survey among the housewives Percentage of English newspaper readers = (18/100)/100=18% Percentage of Bangla newspaper readers (82/100)/100 = 82% Findings are mentioned below in Table: 7 and also shown in Figure-4. Table-7: Percentage of different English-newspaper readers among Housewives

Newspaper

Percentage of

The Daily Prothom-Alo

27.85% readers

The Daily Jugantor

19.25%

The Daily Shamokal

14.86%

Source: Survey report of marketing dept. of Daily Prothom Alo

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Percentage of English newspaper readers = (42/100)/100 = 42% Percentage of Bangla newspaper readers= (58/100)/100 = 58% Findings are shown below in Table: 8 and

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3.1.5 Survey among the Bankers

also given in Fig: 5: Table-8: Percentage of different Bengali Newspaper readers among the Bankers Newspaper

Percentage of readers

The Daily Prothom-Alo

31.85%

The Daily Jugantor

25.25%

The Daily Shamokal

26.86%

4.1. Major Promotional programs of The Daily Prothom Alo All the target customers are not similar in their preferences. Consumers have different types of needs and to satisfy these various types of promotional activities have to be planned and implemented properly. Promotional tools include advertising, sales promotion (such as sampling, discount coupons, contests and others), and public relation activities (such as: organizing programs, news conferences, donating money and others). Some of the promotional activities are discussed below:

4.1.1 Maril Prothom Alo Taroka Proshuskar: Since 2001, "The Daily Prothom Alo" has been sponsoring this program for awarding the best Stars and Models is the showbiz of Bangladesh for their outstanding performance. Meril organizes this program on behalf of "The Daily Prothom Alo". This program is held between March and April.

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Source: Survey report of marketing dept. of Daily Prothom Alo

"The Daily Prothom Alo "has been sponsoring Inter College and University English Debate Competition since 2001. The Debating Committee of Viqarunnisa Noon

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4.1.2 Debate Competition

College organizes this competition on behalf of "The Daily Prothom Alo".

4.1.3 Award Presentation program GPA 5 obtained SSC and HSC students Since 2003, "The Daily Prothom Alo" has been awarding the outstanding students of SSC and HSC level examinations. "The Daily Prothom Alo" Award Presentation Program were held 64 districts in Bangladesh jointly with Grameen Phone, AKTEL and also Banglalink.

"The Daily Prothom Alo" in every year arranges a Language competition for the school and college going students with the Honkong Sanghai Banking Corporation (HSBC).

4.1.5 Round table discussion "The Daily Prothom Alo" organizes different types of round-table discussions. For example, in 2003, it organized round table discussion with Center for Policy Dialogue (CPD).

4.1.6 News in Grameen Phone "The Daily Prothom Alo "provides Grameen Phone with daily news. They can also accommodate other mobile phone companies. Other programs arc also organized on different occasions.

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4.1.4 Prothom Alo-HSBC Language Competition.

As a market leader Prothom Alo also have some weakness and threats. Besides that the strength level is high also having several opportunities. On the SWOT analysis we try to find out the strength, Weakness, Opportunity and threats of Daily Prothom Alo.

Strengths Highly talented Editor

•

A dedicated team of employees

•

Authenticated published news

•

Advertisement is relatively high

•

Cater to the demand of the widest spectrum of readers

•

•

Different sorts of marketing campaigns including provision for awards Absence of real competition

Opportunitie s

Weaknesses • Promotional campaigns are not attractive • Silence to attact poor people who don't have purchasing power • Buying clientele is a particular section of the society • Lack of attraction among housewives and doctors As advertisement is high, space for news and other features arc gradually decreasing • Numbers of readers of Bengali Newspapers of the country are generally very low • Literature page is not attractive • Distribution channel for overseas readers is noteffective very

Threats

Diversification in the other areas • Effective campaigning of other dailies of the media • Absence of strong promotional campaign • Possibility of creating new • Future possibility of competition with the dimension among the current electronic media and prospective readers • Chance of losing competitive advantage and position of number one among the • Still number one among all the •

Bengali dailies of the country

Bengali dailies in the country

Source: On the basis of collected Data.

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•

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5. Strength, Weakness, Opportunity and Threat (SWOT) analysis of "The Daily Prothom Alo"

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6.1. Recommendations 6.1.1 Students of Public and Private Universities "The Daily Prothom Alo" can introduce a new page for students of Universities in Lifestyle tabloid, which is published every Tuesday. This page may include the following. To increase circulation of the newspaper among the students of public and private Universities.

6.1.2 Doctors, Nurses, Patients of Reputed Hospitals/Clinics Strategy The Marketing Executives of "The Daily Prothom Alo" can visit doctors of the following hospitals with complimentary copies of The Daily Prothom Alo " on every Sunday to promote Health-page. Some selected hospitals/clinics are given below: 1. Suhrawardy Hospital, 5. Shishu Hospital, 6. CMH, 7. Bangladesh Medical College & Hospital, 8. Central Hospital, 9. Ibna Sina Clinic, 10. Lab Aid Ltd., 11. Medinova Medical Services Ltd.,12. Modern Diagnostic Center, 13. Popular Diagnostic CenterLtd., 14. Compath Clinic, 15. Holy Family Hospital, 16. Islamic Eye Hospital, 17. AlRazi Hospital, 18. Comfort Nursing Home Ltd., 19. Rashmono Hospital, 20. ICDDRB, 21. Salinnillah Medical College Hospital, 22. Monowara Hospital, 23. Paugu Hospital 4. Utrara Medical Hospital,

6.1.3 Lawyers Strategy "The Daily Prothom Alo" can organize an open discussion about Human Rights on World Human Rights Day in association with Supreme Court Bar Association in the auditorium of Supreme Court in Dhaka. The Editor of "The Daily Prothom Alo "can participate in this open discussion with lawyers.

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IPGMR, 2. Dhaka Medical College Hospital, 3. Gana Shasthya Hospital, 4.

To attract housewives, a quiz competition may be arranged. Moreover, effective campaign among the housewives for reading "The Daily Prothom Alo "can be done.

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6.1.4 Housewives

6.1.5 Bankers To attract bankers, more news on financial system of the country and also global trend of change in financial system may be published. Besides, publishing the news on exchange rate and share market regulates, more importance should be given on providing latest news on global and domestic financial markets so that bankers can gather up-to-date knowledge. As such business page should be redesigned, and made attractive in accordance with the bankers need.

6.1.6 Other Programs Special programs can be launched by "The Daily Prothom Alo " observing various

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International days. Table-12: Proposal for Organizing Programs Date

Special Occasion

Proposal

3rd May

World Press Freedom Day

Organizing round table conference at Press club with the Journalists

26th June

International Day Against Drug Abuse and anti Trafficking

Organizing seminars in association with Center for Rehabilitation of Drug Addiction Distributing Stickers, Organizing rallies

20th November

Universal Children's Day

Organizing Cultural Program in association with Bangladesh Shishu Academy

21st November

World Television Day

Organizing dinner-party for different T.V. performers in association with different TV Channels

25th November

1st December

International Day for the Elimination of Violence Against Women World AIDS Day

Organizing Seminars in association with Bangladesh Mohila Parishad Organizing Round Table Discussion on AIDS/51'D Program

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"The Daily Prothom Alo" can organize Talk Shows in NTV or in any other private TV Channel. The daily can associate its name with a part of news. It can associate its

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6.1.7 Promotional Campaign through TV Channel Strategy

name as "'The Daily Prothom Alo " Antarzatik khobor' through broadcasting as a portion of the news of 11ty or any other private TV channel.

6.1.8 Promotional campaign through Print Media Strategy "The Daily Prothom Alo” can promote its different types of new pages and also special features by giving advertisement in Daily Star, Bangladesh Observer. The

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advertisement can be given from the month of January 2009.

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Quality improvement is a never-ending process. Although "The Daily Ittefaq" is one

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7.0 Concluding Remarks of the reputed newspapers, currently "The Daily Prothom Alo" is enjoying a competitive advantage. However, in case of a newspaper, a good marketing strategy is required. And this is necessary for a Bengali newspaper in Bangladesh to make a good headway business in Bangladesh. In the competitive world of the Journalism, a daily that can only adjust with the changing demand of the newspaper readers and can attain comparative advantage will be able to thrive. For successful marketing strategy is not alone sufficient. It would be in effective unless market plan can be properly implemented. Market research can create benchmarks and helps to ascertain increase of circulation of the daily. This can also help to evaluate the success / failure of the newspaper. It is important on the part of "The Daily Prothom Alo" authority to evaluate the materials for the readers with a view to attract them and to adopt the

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marketing strategy for better circulation.

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8.0 References 1.

AgarwaI,M.L.(2002): "Custumcr Relationship Managentent(CR)VU and Corporate Renaissance", South .-1sian Journal ofMcuucgcnxrnt,VoL9,No.2 2. Berkowitz,Eric N. et al.(2000):Markeling, Irwin-Mcgraw-Hill, NewYork, 5th edition. 3. Dertouzos, James N. and Trautman, William B. (1990):Economic Ef/eels of Media Concentration: Estimates front a Model of the Newspaper Firm. 4. Dillon,William A. et aL(1993):Essenticrls ojMur/ceding Research, Irwin-Mcgraw-I-fill, NewYork. Gross,Andrew 5. C. et aL(2000):Bct,rines•s Marketing, A.I.T.B.S. Publishers & Distributors(Regd.),Delhi, India. Hill, Charles W. (2002) : Globulizallar Business Tndar, Mcgraw-Hill Itwin, Newyork, 2nd edition. Evans, Joel R. and Berman, Barry (1952):fl4ar•keting, Macmillan Publishing Co-Inc., NewYork. 6. Imam, Mahmood Osman and Ali, Muhammad Mahboob (2000): " Database Management System for Retail Bank marketing: A conceptual framework", D. U.Journcrl 01 N/crr/ceting, Vol. No. 3 7. M. Faria, Ali, “Newspaper Marketing Strategy in Bangladesh: The case of Daily Star”, People’s University Journal (PUB), Volume -11, PP- 211-220, July 2005. 8. Waldfogel, Joel and George,Lisa (2003):"Who AJJects Whom in Daily Newspaper Markers. 9. Walker,Orville C. et al.(2000):Markeling Strategies-Planning and Implementation, Tata Mcgraw Hill Publishing Company Ltd., New Delhi, 3rd edition. 10. Schultz, Don (1993): Strategic Newspaper Marketing, INMA 11. Scott, Stines (2000)- The Last 3 Feet, IDEASMagazine, October, SFN Home Published Reports (2003): The Newspaper Marketing Plan. 12. Trivets, Jonathan : One stop Marketing, John Wiley & Sons, Inc., Singapore

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