Vernacular Success in The Digital Age: DR Amit Rangnekar

Vernacular success in the digital age
www.dramitrangnekar.com
Dr Amit Rangnekar
Case coverage
Successful management of vernacular
newspapers across different states
Marketing strategies used to change reading
habits through a customer centric approach
Growth strategy lessons in India's print media
industry
Importance and application of market research
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Global Newspaper Market

Global newspaper sales @3%, ad revenues @ 1%
Free dailies 41m, 7% global circulation, 23% in EU
Daily circulation 573m, 1.7bn daily readers (3
readers/paper)
74/100 top dailies Asian- 62 from China, Japan & India
Top 5(m)- China107, India99 (@11%), Japan68, US51,
Germany21
Grw (%)- SA7, Asia5, Africa-1, EU-2, NA-2, ANZ-4
Papers/1000 adults- Japan 624, Norway 580, Finland 503
Daily reading- Turks 74 minutes, Belgians 54, Finns &
Chinese 48
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Media ad revenues
Print (Newspapers + magazines), largest ad
revenues 40%
TV largest ad media 38%, Newspapers 28%,
Magazines 12%
Newspaper advertising revenues in India @ -1%
Internet ad revenues- not just newspapers online,
@ 32%
NA internet ad revenue 20x (EU +SA + ) revenue
generated in central and eastern Europe, Latin
America, the Middle East and Africa. combined
Search- largest online advertising market
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Indian entertainment & media industry

2006
Media
2006
2010
CAGR
(Rs Cr)
Entertainm 35,30 83,74

ent &
0
0
Media
Driver / Resistor
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19
Eco growth, affluence,

tech, low penetration,
consumerism, policy
TV
1500 43000
0
24
Subscriptions, DTH, IPTV
Print
7000 20000
12
FDI, boom, content, policy
32
FDI, private players,

penetration
Radio
it
300
1200
900
1,750
14
Fragmented, likely to
evolve
Event Mgt
800
1,800
18
Affluence, westernisation
Music
700
740
OOH
m
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Piracy; mobile music &

licensed digital distribution
Bhaskar Group 2008

Leading regional media & news services group- Rs
2200 crore
Valued @ Rs 2100cr/ $450mn, 7% PE stakeCliffrose
Flagship- Dainik Bhaskar, Divya Bhaskar, DNA
Indias largest read newspaper group- readership
27mn (NRS06)
Dainik Bhaskar and Divya Bhaskar (Gujarati)
collectively largest read daily newspapers
2005- DNA launched in JV with Zee Group (Diligent
Media), Mumbai's 2nd largest English daily
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Conglomerate
Solvent extraction- Rs1,289 crore -- US$265 million

Textiles- Rs228 crore -- US$47 million
Publishing- Rs782 crore -- US$160 million
Entertainment, Printing, FMCG, Oils, Sand Internet
Services
Media business- Print Media, Radio Stations and TV
channels
My FM- 17 cities, 4th largest FM station network
Foray into internet, cable TV, real estate and
outdoor media
DB Corp- oversees group's media interests
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Presence
Total print order- 4 million + copies per day

BD more circulation than ToI
Total readership 32 million readers
MP, Rajasthan, Punjab, Haryana, Mumbai,
Gujarat, Chhatisgarh
40 Editions from 36 cities
29 editions- Dainik Bhaskar
8 editions- Divya Bhaskar Gujarati
3 DNA editions- Mumbai, Ahmedabad, Surat
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Bhaskar group- Progress

1955- Agarwal family start Hindi morning daily
Prakash
1965- Dainik Bhaskar (DB) Bhopal
1978- DB- Gwalior, Ujjain and Jhansi; Relaunched
Bhopal
1st web offset printing in Bhopal, No 1, overtook
Navbharat
1983- DB Indore 30,000 copies, leader Nai Duniya
(1.2L)
Offered new types of content, became No. 1
1990- Raipur and 1992- Bilaspur
2002- Chhatisgarh, with chair-scheme
Rs 1.5cr spent in one go but gained huge circulation,
rapidly
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The Family
Ramesh Agarwal- Chairman,
Non media businesses
Sudhir- MD, Editorial content
Girish- Director, Sales and
marketing
Pawan- Director, Technology,
HR and new initiatives
"In every city we have gone
after that, our approach has
been to be No. 1 from day
one
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Newspapers
Habit-forming products, difficult to change
Readers used to certain format & style with
morning tea
Dainik Bhaskar- India's No. 2 Hindi daily (32 mn)
Dainik Jagran No. 1 (57 mn)
Kolkata- The Telegraph (ABP) fought for years to
pip The Statesman, the city's dominant English
daily
Trade unions did not allow The Statesman to
modernize
Delhi- The Times of India v Hindustan Times (HT)
Chennai- The Hindu has beaten back its
challengers
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Vernacular media
Vernacular readers taken for granted
Publishers assume readers want certain things but
give that through least expensive means
Static approach to market and consumers- their
changing needs, wants, aspirations and desires
"Indian newspapers ignored readers until the advent of
the internet, when they started to serve the computersavvy market slightly better by creating and
maintaining a website. However, they still continued to
neglect the bulk of the market, mainly the rural areas.
This rural market suffered because of lack of content,
and distribution and pricing issues" Sridhar Samu, ISB
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Major regional newspapers

2006
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Malayala Manorama (Kerala) 673,000

Dainik Jagran (UP) 580,000
Anandabazar Patrika (West Bengal) 435,000
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DB v Nai Duniya (ND)- MP

DB
Better marketer, market driven
Local news, small city local
pages
Omnipresent, pricing, reach
Pursue advertisers
aggressively, royal treatment,
prefer for referrals
Events, media partnershipsreader excitement
Innovations- discounts, prizes,
bollywood shows, career fairs
ND
Academic, language
focus
Scholarly, regional focus
Hawkers not treated
well
ND- never treated ad
agencies well during
monopoly
ND learnt fast from DB
If ad appears in ND but not in DB, DB calls up advertiser & asks

why they chose ND over DB,
explains DB reach & response, asks
when DB will get ad, alacrity ensures high recall with advertisers
Failure
1992- National Mail
Bhopal edition, only 18,000 copies
No growth despite surveys and customer
feedback
Key- No editorial and marketing network across
the country
Hindi preferred strongly then
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Rajasthan Launch
1995- Ventured outside MP, Rajasthan entry, total Hindi belt

Rajasthan Patrika- 1,80,000 copies, monopoly, DB target 50,000
Navbharat Times shut shop- Management /product issues
Surveyed all 90k Patrika readers in Jaipur city
Ultimately surveyed all 2 lakh households in Jaipur, 2 rounds
Survey became a brand-building exercise
1st round- ice-breaker, knowing satisfaction level with Patrika
95% were looking for an option, 78% said paper was biased
Key requirements- more city news
Trump card- respondents given handbook- Jaipur Yellow Pages
Handbook and teaser hoarding campaigns- brand uniqueness
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Neutralising the hawker

2nd round- revisited same households, summarised
feedback, outlined paper structure
Advance bookings, customer wanted assurance from
hawker
DB guarantee bond, no money, customer signed, one
foil with self, one handed over to hawker to start DB
delivery
Neutralising hawker- important, as leader influences
the hawker, threatens losing existing business if he
takes competitor's paper
DB never approached hawker
Hawker gives customer counterfoil to DB
Built parallel distribution team if hawker system had
not worked
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Jaipur price war
Patrika price @Rs 2.25

DB price @Rs 2
Pre launch if committed for 6 months, then@ Rs 1.50
Advance bookings nudged 1,50,000 copies
3rd printing machine bought overnight, for a premium
Final launch- 1,72,000 copies, all paid, No 1 from day
one
Within 5 days, Patrika reduced price to Rs 1.50
DB benefited as customer bought 2 newspapers at low
cost but superior DB content and quality, would affect
Patrika sales
Sales crossed 2 lakh in month 1
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Rajasthan
1997- Ajmer & Jodhpur
Patrika retaliated- discounts & supplements in all
editions
Differentiation shifted to quality
1998- Bikaner, Udaipur, 1999- Kota
Price war subsided in 2 years
Patrika & Bhaskar launched free-chair scheme with
subscriptions
We had captured Rajasthan GA
The way we operate, we go all out, or we just
don't
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Punjab, Haryana or Chandigarh
1996- transform group into a customer centric organisation

Punjab- big market, Punjab Kesri huge, no one else
DB Perception- Chandigarh gateway to Punjab & Haryana
Realised all 3 markets were different
Mulled HP with Chandigarh, restricted due to distance
Looked for property in Panchkula, economical & suitable
Potential reader interaction if readers have to perceive our
paper to be as prestigious as the Tribune, we should operate
from an imposing building in the centre of the town and not
the outskirts. This set us thinking.
Invested Rs 3.5cr in city centre (Rs 50L planned in Panchkula)
Acceptance & perception as a Chandigarh paper from day 1
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Dainik Bhaskar, Chandigarh

Difficult to accept a consumers influence on
running the paper
Culture shock for the organisation, processes and
structure
Pre-launch survey- readers preferred Hinglish,
adapted
Communicate- customers decided language of the
edition
New XP for journalists, editors, huge impact
Changes became an organisational norm, across
DB group
2000- Haryana with Panipat and Hisar
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2001
Dainik Bhaskar, Indias largest read daily

Readership 119,43,000 ( 74,55,000 in NRS 2000)
IRS (112,67,000 readers)
19 editions across 5 states and 1 UT
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Divya Bhaskar
2003- launched Gujarati daily Divya Bhaskar
Divya Bhaskar put the reader on center stage thro
research
Gujaratis- business minded, so business should
dominate Page 1
Research- Gujaratis as keen on movies & cricket- which
are religions in India- as readers from other Indian states
Pure Gujarati language is important
Research- Readers prefer English + Gujarati mix than
pure Gujarati
Learnings from Bollywood- language is Hinglish
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Divya Bhaskar
Gujarati papers- Company stock market quotes
listed by Gujarati names not English acronyms,
extremely difficult to find a company
Divya Bhaskar started English listings, everybody
followed
2008- readership 6mn, Sandesh- 7mn, Gujarat
Samachar 9mn
Divya Bhaskar is No. 1 in most markets, it is
available in
By getting your readers involved in the creation
process, you create a sense of ownership GA
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The English Media
Regional press- no national impact

Regional growth higher
No regional player is strong in Delhi or Mumbai
Kolkata- regional press relevant due to ABP
English is first priority in print, enjoys premium
When you put money in Hindi channels like Zee,
Sony and STAR, it's not to do with the language,
but with markets. And it is the 4 big metros that
are always looked at, nothing else.
But language publications- Malayala Manorama,
Eenadu or even Dainik Jagran are commanding a
premium
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Times strategy
Reigning for 150 years in Mumbai
Marketing tactics- invitation price and price bundling
Out-flanked Mid-day by combining Mumbai Mirror
and Bombay Times with Times of India
Initially free, now at minimum invitation price or
bundled
Result- Mumbai Mirror piggybacks TOI, grosses 7.5L
copies daily, Mid Day trails at 5.5L copies
Combination subscription prices for various
publications
Same concept for ad rates across publications /
geographies
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Mumbai
Most competitive market, richest in ad revenue

TOI- dominant daily
Daily News & Analysis (DNA), threat since 2005
IRS2008- TOI 16L, Mumbai Mirror 7.5L, DNA 6L
Mumbai Mirror piggybacks on TOI (bundling)
DNA ahead of old-timer Mid-Day (538,000) and
newcomer HT (381,000), also launched in 2005
DNA strategy- bombard Indias largest market
with innovative launch
1st English venture after vernacular successes
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Customer-centric approach
Meet and understand what the consumers want

Try to learn what the market wants
Look at latent things than what they already know
Primary differentiator in DB approach to content
Look to surprise the reader than just please him
"For us, this is much more than market research;
it is a way of involving the reader" GA
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Market Research
In-house market research than outsource
Massive reader surveys
1996- Dainik Bhaskar, Jaipur launch- surveyed
200,000 potential readers
DNA Mumbai launch- surveyed 600,000 potential
readers in round one
"If 500,000 people were surveyed by an outside
agency, interviews alone would cost Rs 1.25 crore,
number crunching would further inflate the bill"
Bijoor
"I can call upon 500 people and they'll be there"
Ramesh
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Market Research
Core research team- from media arm, and other group
businesses
Trained and committed
Surveys spread a over a couple of months, less strenuous
Questionnaire administered by a well informed and
product aware company official is easily accepted than
from a college student making some pocket money Girish
Create awareness, get readers involved in designing the
newspaper
Potential readers- interviewed twice
Consumers identify with a brand if they feel company is
responsive to their suggestions
Reminding readers that they have done it- equally
important
Brand community- approach- Harley Davidson
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MR insights
"The Dainik survey is an awesome experience. They build
their own teams of part-timers from scratch. In Ahmedabad
[Divya Bhaskar launch], they used 1,050 surveyors, 64
supervisors, 16 zonal managers and 4 divisional managers.
They surveyed 1.2 mn households-- possibly the single
biggest consumer contact program in history. And they met
each household twice. Erehwon Innovation Consulting
"Intense training was conducted on grooming, etiquette,
body language, social skills and methods of engagement....
The surveyors did so well that when they went back for the
second round, they were greeted like long-lost friends and
offered refreshments.... Their morning begins with a
prayer... with over 200 people standing in straight lines and
singing in unison... Then after a short briefing, they hit the
road. GA
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Launch innovations
An invitation price lower than the normal rate
Consumers more likely to buy the product if at a low invitation
price. After a few purchases, they may like it & continue to
purchase it even after the price reverts back to its normal level.
But there is a significant drop-off if regular price is much higher
than invitation price. Samu
Six-month subscription offer at a discounted rate, 1 st newspaper
"Pre-selling is a price bundling or a discounting strategy. This
helps a publications working capital requirement, costs less than
market-borrowed funds, ensures 6-month loyalty period in
individual homes, ensures reader lock-in, helps facilitate an
environment of sameness of publication in that home, repeated
use reduces brand dissonance, creates an entry barrier for other
publications into the home." Bijoor
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CRM or intrusive
"I consider increasing involvement levels of consumers
with any product or brand as part of a relationshipbuilding process which can lead to higher commitment
levels to the product and a continued engagement
with it." Samu, ISB
"This is intrusively marketing the paper and its appeal
from Day 1. It is a way of interactive marketing as well.
The reader gets involved in putting together the
formula for her paper, right in her own home. This
becomes a talking point. The newspaper gets created
amidst large sets of consumers and not dipstick
sample sizes. To that extent it is intrusive, interactive,
involving and lowbrow. Readers and consumers love
this. The first one that does this gets remembered and
gets away with it. If someone else repeats it, the
benefit is less. Bijoor
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Does good marketing sustain

Good marketing cannot sell a bad product
continuously
Success, due to improvements relevant to reader
Better product quality, layout, content
Colour v black-and-white
Supplements v no supplements
I was always amused when senior people kept
saying, it's difficult to change reading habits. Why
can't you change a paper when you can change
everything else? GA
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Advertising insights
We are not fighting TV head-on because
fortunately, our markets are not very TV-heavy,
like, the south. There are no particular regional
channels for these markets only. Otherwise, I
would have had a real problem. In my markets, it
is still Zee, Sony, STAR. TV is eating into the
overall ad pie anyway. When an advertiser has
budgeted for TV and made a Rs 30-lakh film, he
has to run it. Only then you look at what money is
left and come to print.
However threshold level TV costs have gone up
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Targeting Magazines
Why not take money off magazines? Print offers better
reach
After reading Bombay Times, most readers hardly need
to read film magazines. Only some categories of
magazines of special-interest, show growth. Supplements
in vernaculars are read more than even the main
newspapers. We are working on our film magazine
(supplement)-- Navrang- so people don't have to read any
other film magazine. My film magazine is surely read
more than my main paper among a particular segment.
We have 4 magazines supplements now - Navrang (edited
by Mahesh Bhatt), Rasrang (Sunday supplement),
Madhurima (women's magazine) and Bal Bhaskar (for
kids).
Magazines unlike newspapers have repeat reads
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Ad revenues
Mastermind- smart way to support weaker editions
But DB has no weak editions, so charge by markets
Key to rate card design- What a market can take
(what advertiser will pay for that market), our
feasibility & no extra padding
In MP we charged < the No. 2 as we knew market
wont take it
For us the reader is king. Governments deny us
ads for long periods if we speak against them, but
we dont bend. For the Jaipur launch, the
government would have helped us had we asked
for but we got their advertising only 2 years after
launch.
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PR
For our advertising innovations for marketers
(PR), we make sure our readers enjoy it. The ad is
to attract reader's attention but bugging the
reader can only affects us. Helping the marketer
in editorial coverage does not harm the reader as
we are only putting forth information, not
influencing anything. It is like any other press
release. I see no harm in that.
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Ambition
Media group of worldwide recognition in N5-10Y

Writing style, operations, systems- world class
Build circulation- major parameter
Expand beyond 5 states and 1 Union Territory
"The strength of the group has been its [ability to]
connect at the ground level with not only the
channel that distributes its publications, but the
readers in the end-home as well" Bijoor
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Bridging the gap

Gap- entrepreneur's perception of market
requirements & actual market needs
Management- thinks gap maybe minor &
inconsequential
But makes a huge difference in customers product
perception
Bridging this gap essential to win customer trust
We do not design newspapers & then hope to
generate sales, but we involve customers, collect
their requirements & suggestions and then design
the project accordingly. This strategy has made the
difference between success and failure in many
instances.
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Pricing against the market

We believe the market is no one to set prices. As
entrepreneurs, only we know the pros and cons of what
price customers will accept for our product, of how much we
can take and how much we cannot. Pricing is ultimately the
entrepreneur's decision based on the market affordability
and the nature of the product.
Telecom companies received consultant reports 3 years
back which said if they priced below Rs X per minute the
company will be doomed. Today even after selling at half
that price the company is making three times more profit
than what it was earning three years ago.
Newspapers- pricing important, but not a standalone
element
Quality- equally important as customers want value addition
Customers- My rupee should go the extra mile, give best
quality
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Flexibility is key
Systems and plans essential but should be flexible

Anticipate last minute changes, else face bottlenecks
Ahmedabad launch- 5mn readers
2 city editions planned, east and west, more local news
Research- Readers residing in the east may not frequently travel
west, but like to be up-to-date on happenings in the west and
stay connected with their social circle residing there.
Divya Bhaskar combined the editions, bowed to market
demands
Chandigarh launch- planned feature based city supplement to
main paper, to be printed earlier than main paper, to save costs
Research- Customers preferred a news based supplement
Changed process, reschedule activities- printed with main sheet
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Nothing comes cheap

Haryana launch- planned to print edition from Chandigarh
Research- Haryana readers resented paper printed from
Chandigarh due to feelings like "I am Haryana, I am Panipat, I
am Karnal and why should Chandigarh play boss to me".
DB changed plans, fresh capital, 2 presses at Panipat & Hissar
Haryana edition successful
Investment in extra infrastructure does give a competitive edge
Printing- Matter laid out, color separated, printing positives,
metal roller photosynthesis, mounted on printing press
Invested in latest printing tech- editorial material transfers from
PC to the plate, without positives, saves 15 minutes
Essential as competition is dynamic media- TV, Internet
Normal household sleeps by 11pm so news from 11pm to wake
up time will catch the customer's interest. We extend ourselves
to ensure how late we can cover events.
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Ultimately it is your call

Extent of customer needs to be incorporated in the plan- biggest
decision
May short change customer based on convenience, may get
away
Give in only so much to customer demands
Check costing, growth, other needs- try and find a compromise
Some may not profitability be affected, some will take more risk
and see how it works, some will strive to achieve a balance
No fixed formula as dependent on human vagaries
Some markets price cut works, in others, it doesn't
Recently in 2 markets, competition started a price war by
slashing prices. In one market we reduced cover price and
doubled numbers but in the other one we grew the numbers
without the price slash. It is not just luck, it is the environment
and the marketer's perception.
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Expansions
DB investing Rs 125 crore in expanding
operations
Rs 20 crore investment in flagship
Rs 105 crore in the Gujarati editions- Surat,
Baroda and Rajkot
Ahmedabad readership- 11.83 lakh
DB 4.74 lakh circulation in 3 months
Consolidate DB from Mumbai also planned
Independent printing units in Ujjain (MP) & Sikar
(Rajasthan) upgrade printing facility in Jaipur
Not dependent on national advertisers, attract
many local advertisers, hence not affected by
Hindi news channels
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Concerns
Marketing turned DB into a business, lost core
value- journalism
Insignificant in UP and Bihar- key Hindi belt
Metros like Delhi & Mumbai? unknown in RoI
Negligible presence in the lucrative English print
media
Focused only on print- Electronic, virtual?
Vernacular presence- limitations to international
growth
Ad revenues? Margins?
Alliances?
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References
Developing Story: Global Publishing Houses See New Potential in Indian Media
In Brazil, Roberto Civita Applauds New and Old Media, a Free Press and the
Coming Tide of Investors
Wikipedia on the Bhaskar Group
http://in.rediff.com/money/2005/feb/18spec.htm
Girish Agarwal | February 18, 2005
http://www.contentsutra.com/entry/dainik-bhaskar-group-valued-at466-million/
Dainik Bhaskar Group Valued At $466 Million
By Sahad PV - Wed 07 Jun 2006 05:07 AM PST
Business Standard:
www.bhaskar.com
http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4328
Newspapers: Indian Language Readers Are Making Their Voices Heard
Published: October 30, 2008 in India Knowledge@Wharton
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Dainik Bhaskar earmarks Rs 125 cr for expansion New Delhi , Sept. 6

http://www.thehindubusinessline.com/2003/09/07/stories/2003090701
140200.htm

Vernacular Success in The Digital Age: DR Amit Rangnekar

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Vernacular Success in The Digital Age: DR Amit Rangnekar

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Vernacular success in the digital age

Global Newspaper Market

Indian entertainment & media industry

Entertainm 35,30 83,74

Eco growth, affluence,

Subscriptions, DTH, IPTV

FDI, boom, content, policy

FDI, private players,

Piracy; mobile music &

Bhaskar Group 2008

Solvent extraction- Rs1,289 crore -- US$265 million

Total print order- 4 million + copies per day

Bhaskar group- Progress

Major regional newspapers

Malayala Manorama (Kerala) 673,000

DB v Nai Duniya (ND)- MP

If ad appears in ND but not in DB, DB calls up advertiser & asks

1995- Ventured outside MP, Rajasthan entry, total Hindi belt

Neutralising the hawker

Jaipur price war

Patrika price @Rs 2.25

Punjab, Haryana or Chandigarh

1996- transform group into a customer centric organisation

Dainik Bhaskar, Chandigarh

Dainik Bhaskar, Indias largest read daily

The English Media

Regional press- no national impact

Most competitive market, richest in ad revenue

Meet and understand what the consumers want

Does good marketing sustain

Media group of worldwide recognition in N5-10Y

Bridging the gap

Pricing against the market

Systems and plans essential but should be flexible

Nothing comes cheap

Ultimately it is your call

Dainik Bhaskar earmarks Rs 125 cr for expansion New Delhi , Sept. 6

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