Amar Chitra Katha

Under the guidance of:

Professor Ganesh N Prabhu
Indian Institute of Management Bangalore
7th January, 2014




Submitted by: Group E


Priya (1311110)
Sujitha P (1311061)
Sandeep Prakash
Malarkodi Selvam (1311304)













1. Industry analysis
The comic book market in India was dominated by American comics till the late
1960s. Although the first Indian cartoon magazine was published in 1947, Indian
comics did not gain popularity till the late 1960s. However scenario changed with the
advent of Indrajal and Amar Chitra Katha (ACK) series of comics followed by many
others. These indigenous books quickly gained popularity among children. The
genre/nature of the characters in these comic books has strongly targeted children.
Since this was an industry where a few large players shaped the industry from its
roots, comic readership in India has itself been confined to this particular segment.
Potential segments such as teenagers/adolescents and adults who form a large
customer segment in many other countries, have largely been neglected in India.
Indian comic book industry still remains a highly fragmented and unorganized sector.

2. Amar Chitra Katha
Amar Chitra Katha was launched at a time when society was slowly moving away
from the traditional values and the Indian method of storytelling and transfer of
mythological knowledge was on a decline. It started as an attempt to educate
children about the Indian cultural heritage. But with all the technological advances
and the world moving towards digitization, ACK is facing the challenges of innovation
and adaptation and is trying to reinvent the brand and products.

2.1. Current Scenario: Issues faced by ACK

TV Cartoons: The most important issue faced by ACK is due to competition from
TV cartoons through cable television which has been enjoying much higher
loyalty from children than comic books. Since its entrance, the comic book
market has been on the decline and ACK has been at times forced to publish
only reprints of old titles.
Preference for online content: The rise of internet penetration has led to
children preferring online content rather than traditional hard copy of comic
books.
Foreign comic books: ACK also faces a serious threat from foreign comic books.
They are much more popular than Indian comics not just with children but also
with young adults/adolescents and adults. Tinkle the most popular publication
by ACK even among children is seen as a book of the previous generation. It
lacks the contemporary feel of foreign books.
Cost: Foreign comics are available at a cost lower than ACK books. Hence
customers are not willing to purchase ACK books at a higher price. ACK books
being mainly for children deters advertisers from advertising in children
magazines. The pester power of children in India is much lesser than in other
countries. Thus ACK has very low revenues from advertising hence leading to
the higher cost of its books.

3. Recommendations for business level strategies
3.1. Merchandising:
Children love toys and games based on their favourite characters, hence
merchandising for children has a huge potential. The famous characters in ACK like
Suppandi, Chacha Chaudary etc. can be made into small toys, that can be sold
separately or clubbed with famous brands like the McDonalds happy meal or
children energy drinks. Merchandising can also be expanded to
notebooks,stationeries, apparel, accessories, games, wallpapers etc. Successful
examples of such characters would be Dora, Ben-10 etc , that are famous not just as
toys but also in watches, wall papers, mattress etc.
3.2. Comic Con:
Comic Con is a trend that is becoming popular in recent times. These are
comic based conventions that happen in famous cities every year. All comic
enthusiasts, including adults, in addition to children, visit these events to know
about the latest happenings in the comic business. Amar chitra katha, in addition to
putting up stalls for books, should conduct workshops, interactive sessions, games,
contests etc. based on its famous characters in comic cons. This will increase the
reach of such characters amongst children and young adults, making them
interested in reading the books. Also people dressed up as such characters can
conduct fun shows in shopping malls, school events, amusement parks and general
fairs, where children usually frequent.
3.3. Ad-based contests:
Revenue can be increased with increase advertisement. However instead of
direct advertisements, a separate column for ad-based contests that increase the
interest of children on the brands can be introduced. For instance, a quiz on cycles
that feature a bicycle gift for the winner or a drawing contest that gifts a stationery
gift hamper for the winner etc. will attract the interests of children. These contests
can feature as a regular column, with different sponsors for every issue, thereby
increasing the revenue.
3.4. Collaboration with schools:
One more way to reach children would be by reaching out to educational
institutions. Most of the children in this generation stay in nuclear families and do
not get a chance to hear old mythological stories from their grandparents. Story-
telling is an experience that enhances the ability of a child to visualize, imagine and
understand new things. Schools these days understand this and include story-tellig a
part of their curriculum. However, a lot of times, there is not enough material that
would cater to the varying needs of the schools or the parents. ACK can collaborate
with such schools and develop reading material that would be contemporary,
curriculum-fit and still include stories that children would enjoy. The advantage with
this is that once the books are developed, it can be sold to other similar schools or
even reprinted the next year without major changes.




4. Recommendations for new product development strategies

4.1. Animated TV Series and Movies
Giving a new lease to life, Amar Chitra Katha can explore the idea of
launching television series based on the collection of stories from myths, Indian
epics, fables and historical events based on classic Amar Chitra Katha title.
ACKs Tinkle has done very well so far to fulfill its vision to be an edutainment
source for children. But children are moving on other platform, so ACK needs to be
close to its consumers. ACK should start TV series based on its hit propriety tinkle
characters. ACK can even enter into children movies segment. Also, With the Indian
animation industry growing at rapid pace, ACK can make its characters more
appealing to the Indian target market as well as international markets by venturing
into the animated or 3D movies in collaboration with the production houses.
They can approach childrens television channels like Cartoon Network and
Disney to air the series/movies in its animated format. Other possible collaborators
can be Turner, Adlabs, Pixar etc. Considering the huge production costs of making an
animated series, ACK can source the contents from the animation software
companies outside India.

4.2. Presence in App Store
Smartphones penetration in India is increasing day by day. Total smartphone
users in 2009 were 2.5 million, which grew to 6 million in 2010, and 12 million in
2011. Tremendous growth in smartphone segment increased the data traffic
originating from handheld devices. These trends led to inclusion of millions mobile
apps, which once were on World Wide Web.
To keep up with changing customer behavior, ACK needs to bring the mobile
application to make their product available to customer at ease. ACK can have one
common platform as an app from where customers can download the titles, play
games and participate in quizzes related to mythological/ inspirational stories
published so far.

4.3. Contemporary content
ACK can expand its product line by adding new titles involving mystery and
adventure related stories because mystery, adventure and fantasy seem
predominant in these age groups. They should innovate their characters to connect
more with the children today. They can collaborate with channels related to
adventure like Discovery and National Geographic for their marketing and branding.
ACK has been mildly accused for being biased towards Hinduism. This kind of
allegations is very harmful for any corporation in the secular country like India. As
part of content development, stories should be chosen such that they are not
centred on any religion.
Children of this generation use electronic media extensively. ACK needs to
cater to consumers in both urban cities and small towns where electronic reach can
vary from maximum to minimum penetration. The comic book industry being a
volume-based business, ACK should be able to address the changing needs of both
these types of consumers. Printing the titles need investment, which can be sunk
cost if the titles remained unsold. So, ACK can bring the titles first on its electronic
platforms and if it is getting better responses then same title can go for print media.

5. Summary:

ACK has since its inception has had its vision to be as an edutainment source
for the children. This crucial differentiation aspect has so far made it popular among
Indians. Even though Indian comic book readership has declined among customers in
urban cities, there are still many small towns and interiors of the country where ACK
magazines form the only form of edutainment. Thus in pursuing the various new
product development strategies mentioned, ACK should not lose track of its vision
and continue to be the authentic Indian comic book with a contemporary foresight.
So, we suggest equal emphasis on both electronic media and print media. In the
meantime, ACK should focus on popularizing itself as a contemporary kids brand
that has changed and grown with time. It should identify itself as a brand that is
famous not only for books, but also for everything else that can bring Indian
mythology and stories close to children. It should re-invent itself as a brand that
children should grow with, that shares amazing stories of ancient India in a modern
form.


References:

http://classic.kanglaonline.com/index.php?template=kshow&kid=728&Idoc_Session
=da1c52fa5c4cd28b5d02dfd5d6cf8f34

http://business.outlookindia.com/article_v3.aspx?artid=266745

http://articles.timesofindia.indiatimes.com/2007-11-22/india-
business/27950790_1_ack-media-amar-chitra-katha-print-and-digital-products

http://www.marketsimplified.com/images/downloads/insight/india-mobile-
trend.pdf