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REPORT ON RMD- panel report

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REPORT ON RMD- panel report

  2. 2. 2 A Report ON RMD (RESULTS & MARKET DEVELOPMENT) By HARDIK SONI 12BSP0449 THE TIMES OF INDIA A report submitted in partial fulfillment of the requirements of PGPM program of IBS Mumbai. Submitted to: College Guide: Company Guide: Proff. Gangadhar Hugar. Mr. Ramchandra Naik. June 3, 2013 DATE OF SUBMISSION
  3. 3. 3 AUTHORISATION I hereby declare the project report entitled “RMD – Results & Market Development” submitted to IBS Mumbai, Is a record of original work done by me under the guidance of Mr Ramchandra Naik , RMD Sales officer, Times of India, Mumbai. The Report is submitted as partial fulfilment of the requirement of the PGPM program of IBS MUMBAI. The results in the report have not been submitted to any other institute or University for the award of any degree or certificate. Date: 3-06-2013 Name: HARDIK SONI City: MUMBAI
  4. 4. 4 ACKNOWLEDGMENT I wish to express highest regards for Professor Gangadhar Hugar whose guidance and support on every instance helped me in my Internship. I also hold utmost regards for Mr. Ramchandra Naik (Rmd sales officer Times of India), without whom I would not get this exciting opportunity to work in India’s Best Media Company. My Report”RMD-Results & Market development” is possible because of my two Mentors who make sure I stay on my path & make use of this important opportunity. I would also like to thank every person who guided me in any way & helped me reach this conclusion. My report is an attempt towards entry into Corporate World; I hope this leads me onto new ventures.
  5. 5. 5 Sr. NO. TABLE OF CONTENTS Pg. No 1. EXECUTIVE SUMMARY 7 2. INTRODUCTION Insight about the company..... pg 8 Publishing....... pg 9 RMD........ pg 12 Purpose of Study........ pg 15 Methodology..... pg 17 Scope of Study....... pg 18 Industry wise Sales proposals....pg 18 Limitation of Study...... pg 24 8-24 3. Project Report Report.......... pg 25 Magazine.........pg 26 Magazine vs. Newspapers.... pg 27 Media & Magazine........ pg 28 Indian Magazine Industry...... pg 29 Magazine Overview in India....pg 35 Times Publication Magazines..... pg 39 Sales for Femina Magazine........ pg 43 Proposal Example..... pg 44 Other Times Magazines..... Pg 45 Other Projects in Internship.... pg 47 25-49 4. Marketing Trend Marketing Tools......pg 51 Research on Trend.......pg 50 50-55 5. Questionnaire Analysis ...... pg 56 SPSS Solution..... pg 57 56-62 6. Recommendations 63 7. Reference & Glossary 64-65
  6. 6. 6 LIST OF ILLUSTRATIONS Figures: 1. World Top 10 English Dailies.................. source WAN 10’ 2. Rmd Delivery Chain 3. Population Pie chart 4. Responses of Pharmaceutical Companies 5. Times Group Reach in India 6. Aggregate Relevant Audience 7. Indian Magazine Industry 8. Print Market Share.................... Hansa Research 2012 9. Magazines in India................... “ “ “ 10. English Magazines Readership........ “ “ “ 11. Comparison with Other Women’s Magazines................. Source IRS 06’ 12. Metro Readership of Femina......................... source IRS 06’ 13. Research Population
  7. 7. 7 EXECUTIVE SUMMARY The report is commissioned to find the working of RMD department in TIMES OF INDIA, Mumbai. The RMD – Results & Market development is one of the 700th departments in Times of India building. The analysis done during the internship provides in-depth knowledge about Print Media and understanding of how readership & Sales are generated for TIMES GROUP. The Times of India has a heritage and legacy of 175 years, their Prominence in the field of Print Media and Entertainment is a benchmark for their competitors. Times Group has a venture with BBC in publication of Times Magazines all over India. The Times group has its various publications catering to every segment and demography in the Indian print media sector. The RMD department (Results and Market development) includes generating Sales & Increase readership for Times Group Publications. The internship requires research on B2B marketing trend as well as corporate bulk selling. Generating results signify increase in readership and advertising revenue for the publication. Market development means reaching out to different segments or expanding our horizons onto new ventures where promotional and branding concepts are developed to meet the requirements of our clients who use these publications as a toll of marketing and promotion. The report will give an insight on how the RMD department generates sales and increase readership for these magazines as well as provide promotion benefits to our clients. The Methodology used to make this report has given a corporate experience about B2B selling and efficiency in conducting the field work, research & corporate tie-ups. The Findings and conclusion will explain working of RMD department which is integral for generating Sales for TIMES PUBLICATIONS. The Research findings will clear the picture on B2b Marketing, Times Group market share & Overall marketing trend in Mumbai. Gaining a corporate experience from Times of India, findings on various projects such as B2b sales, Promotional activities on Airports, Marketing for Theatre companies, Promotions for clients helped me understand the working of Corporate Companies. Conclusions bring us to the inference that Times Group market share in Indian Print Media sector is because of the Excellence, Efficient & Eminence Stature Company commands among Corporates.
  8. 8. 8 INTRODUCTION INSIGHT ABOUT THE COMPANY The Times Group is India’s largest media conglomerate with its flagship Bennett, Coleman and Company Limited (BCCL) being the largest publishing company in India and South- Asia. Starting off with The Times of India – which is now the largest English publication in the world, BCCL and its subsidiaries (called The Times of India Group), are present in every existing media platform – Newspapers, Magazines, Books, TV, Radio, Internet, Event Management, Outdoor Display, Music, Movies and more. With a turnover exceeding a billion dollars, the group has the support of over 25,000 advertisers, 11,000 employees and an audience spanning across all continents. The Times of India (TOI) is an Indian English-language daily newspaper. According to Audit Bureau of Circulations, it has the largest circulation among all English-language newspapers in the world, across all formats .The Times of India (TOI) is an Indian English-language daily newspaper. According to Audit Bureau of Circulations, it has the largest circulation among all English- language newspapers in the world, across all formats (broadsheet, tabloid, compact, Berliner and online).In 2008, the newspaper reported that (with a circulation of over 3.14 million) it was certified by the Audit Bureau of Circulations (India) as the world's largest selling English-language daily, ranking it as the 3rd largest selling newspaper in any language in the world by World Association of Newspapers and News Publishers. According to the Indian Readership Survey (IRS) 2012, the Times of India is the most widely read English newspaper in India with a readership of 76.43 lakhs (7.643 million). This ranks the Times of India as the top English daily in India by readership it is owned and published by Bennett, Coleman & Co. Ltd. which is owned by the Sahu Jain family. The Times Group Core Business is Publishing, The report analyse RMD department which is part of Publishing. NEWSPAPER MAGAZINE 1. The Times of India 1. Femina 2. The Economic Times 2. Filmfare 3. Mumbai Mirror 3. Top Gear 4. Navbharat Times 4. Good Food 5. Maharashtra Times 5. Good Homes
  9. 9. 9 PUBLISHING The Time Group publish Newspaper and Magazines which are market leaders in every sense. The Times of India is the flagship brand; Time of India sells more than 3.5 million copies each day across 41 locations in India – making it not only the largest English daily in India, but also the world, voted as the among the world’s six greatest newspapers way back in 1988 by BBC. The figure shows circulation of Times of India. Figure 1. All Times of India newspapers are mirror to the society with penetration in every market with City specific Newspapers called “times” after the city name show excellence and a major influence on how people perceive happenings in the country.
  10. 10. 10 NEWSPAPER BRANDS  TIMES OF INDIA Circulation: 3.5 million Readership: 76.5 lakhs  ECONOMIC TIMES Circulation: 630,000 Readership: 800,000  MAHARASHTRA TIMES Circulation: 2,68,614 Readership: 11,59,000  NAVBHARAT TIMES Circulation: 3045000 Readership: 2269000  MUMBAI MIRROR Circulation: 600000 Readership: 100000  SANDHYA TIMES Circulation: 31250 Readership: 91000 Source: IRS, NRS & Timm marketing website Figures may show changes on the basis of survey done on daily basis or monthly basis. There are various supplements which come inserted with these newspapers such as
  11. 11. 11 MAGAZINE BRANDS  Femina Home trends  Filmfare  Top gear  Grazia  Good homes  Lonely planet  Zig wheels  Hello!  Knowledge  Time& style
  12. 12. 12 RMD DEPARTMENT – Results & Market development RMD department of Times group which generates Sales and expand Market share for Times group Publications. Market Development Department (RMD) is the sales and market development wing of the organization, which requires the critical support of logistics and operations management. RMD's profile also encompasses market expansion and generating brand awareness for its various publications. The RMD department had various functions: 1. Bulk selling of Magazines 2. Market Development of Publications 3. Corporate Tie-ups 4. Increase In readership of Publication The internship required Bulk selling of Magazines which already has a huge market share and promotional benefits to our clients. The RMD department gave special attention to bulk selling of their magazines specially Femina & Filmfare. The work done in these months majorly constitute Corporate Sales of Femina & Filmfare These are India’s most read and influential magazines, which attract attention of Marketers who like to maximise their reach as these magazines have highest readership among their competitors. RMD department constitute of following functions:  Pro-active selling: Reader Relation This was my job title in the internship it required selling of Magazine & other times publications  Ad relevant circulation  Gaining competitive advantage  Brand building – Promotions & Publicity
  13. 13. 13 RMD DEPARMENT VALUE DELIVERING Figure 2 The Times group Publishing wing comprises of 3 components:  EDITORIAL: The editorial department is responsible for pretty much everything that appears in your publication that isn't advertising. Its main goal is to report the news accurately and in a reader-friendly way.  RMD- CIRCULATION: RMD department handles Sales, Circulation & Vendor management.  ADVERTISE-RESPONSE: The prime mover among all other media marketing solution providers in India, the Response department of BCCL has been instrumental in redefining the concept of advertising and marketing
  14. 14. 14 RMD department is an important part in the TIMES GROUP machinery: VALUE CHAIN (flow chart) My internship focuses on the RMD department which is a link between editorial and Response part this department takes care of Sales and circulation of Publications. The Report explains the working of RMD department and its role in Generating Revenue & Readership. Result Generation: It means sales of various publications in Times group, Result Generation takes care of revenue generation and increase in Readership of Times Publication. Internship gave me the experience about how sales are done through corporate tie-ups and Promotions for clients with the help of DIRECT MARKETING. Bulk selling means sales of more than 100 magazines to a single client and doing promotions for that company with the adopting direct marketing as tool for Branding and promotions. REAMS OF PAPER RMD EDITORIAL RESPONSE PRODUCTION
  15. 15. 15 MARKET DEVELOPMENT: Market development means expanding and venturing with corporate tie-up in order to come up with new marketing tactics for our clients. Internship included Selling to new clients or companies who usually never used Times Publications as a mode of Promotion and Advertising. JOB REQUIREMENT & JOB TITLE Reader relation executive was my job title which covers the part of Selling of Magazines and doing corporate tie-up for promotions and advertising for clients. The job required doing field work and setting meetings for presentations, it included gathering information on the marketing trend going around the city. The research done on the response of Corporate companies gives insight of how to make proposals suited to companies industry wise. PURPOSE OF THE STUDY The purpose for the study is to find out how “Times group” generates Sales results and Revenue from its MAGAZINES PUBLICATIONS. The findings will bring out the facts on Bulk selling, Publication Houses, and Marketing Trends. The research is limited by marketing on the basis of BUSINESS TO BUSINESS selling and its scope in Indian print market. Promotions Promoting the magazines and increasing the reader base as well as penetration of our magazines in the sectors like:  Pharmaceutical Companies  Hospitality Sector  Hotels  Clubs  Car Rental Companies  Ayurvedic Medicine Manufacturers and OTCs  Florists  Tours and Travels  Investment Advisory Firms  Showrooms, Boutiques
  16. 16. 16 Conducting Research on Marketing Trends of Companies Research on marketing habits of corporate companies is an important step towards developing Proposal and Propaganda’s. Research was done on Companies to whom after the research was done Proposals were sent accordingly. The companies were from different sectors which required developing different marketing proposals & CRM activities. Figure 3 The Research done was on “Marketing Trend” of Corporate Companies in Mumbai. All respondents were asked question on Marketing & Promotional strategies they use in their organization. The study will attempt to find Results through SPSS, which will help process data to find solution to our questions. Total Pharma Fashion related Auto dealers Others
  18. 18. 18 The internship requires On-field corporate sales and getting appointments with clients to present the proposals. Following Methods are used: 1. Telesales. 2. Presentation at client’s office. 3. Email use for communication with the corporate companies. 4. Meeting the client with Prior appointment made and Presentation. 5. Collecting data on the market trend of Print Promotion. 6. Research on Corporate Promotional Budget. 7. Business Tie-up with Hotels and Airports for Promotional activities. OUTLINE OF WORK/ SCOPE OF STUDY The work done during the internship under the tag of “Reader Relation Executive” constituted with doing Sales, Findings competitors’ market reach, Research on marketing trends & Corporate tie ups. The Selling of magazine in bulk were only effective if the findings done beforehand have been taken into consideration in preparation of report. Industry analysis and company profiling was very important to help making presentations. SALES PROPOSALS FOR MAGAZINES (INDUSTRY WISE ANALYSIS) Following were the Industry analysis:  Pharmaceutical companies  Jewellers  Car Dealers
  19. 19. 19 PHARMACUETICAL COMPANIES These magazines are proposed to be seen as a gifting concept by pharmaceutical companies to medical fraternities. These magazines make an excellent reading material be it for doctors himself or for his patients. Our Proposal Pharmaceutical Companies do give gifts to doctors. Magazines can turn out to be economical and useful gifts and will also be a useful gift for doctors for their patients. As doctors usually have patients in the waiting areas (dispensaries or hospitals). Marketing Tool used is DIRECT MARKETING i.e. Attachment of Promotional material of clients on the cover page so that Doctors as well as patient get aware about the Pharmaceutical in the market by this company. Why we selected pharmaceutical companies? Pharmaceutical companies normally order in bulk quantities as they have a huge database of doctors to whom they send medicines. Their order comprises of ten thousand to twelve thousand copies approximately.
  20. 20. 20 Pharmacy companies have to utilize marketing in a very canny manner because their important influencers are Doctors who prescribe medicines’ to final consumers. So Proposal of magazines with promotional material inserted or attached benefits both Doctors who need not Purchase magazines, secondly it benefits Consumers who get aware about Medicines in the market. FINDINGS There is a huge potential and buying power lying with the pharmaceutical manufacturers as this is a vast and growing sector. They buy in bulk and are the kind of customers that we can look for long term sustainability of sales. They have large budgets for advertising and promoting their products (every year they come up with many new products) which is a good thing for media publishing companies. Some of them were already looking for companies like ours to approach them and were quite receptive when they were exposed to details of the offer. But the basic thing that is always part of the talk is that they want their product to be promoted directly to doctors, they don‟t want magazines to be lying in the waiting rooms and read only by patients/customers/visitors. OUT OF 44 PHARMA COMPANIES FOLLOWING WAS THE RESPONSE: Figure 4
  21. 21. 21 INFERENCE  Business with pharmaceutical companies can give strong results but it requires sincere follow up and new customization concepts.  Pharma companies look for magazines or other related material which is relevant and somewhat connected to their products .  They want offers such as they can give advertisement of their product in our magazine and they buy magazines in bulk from us  Some of them find it unethical to give bollywood stuff (which according to them is irrelevant to their kind of products) to their clients. JEWELLERS The magazines proposed to Jewellers are based on the concept of CRM – customer relationship management, these companies’ gift magazines to customers with promotional offers attached with the magazine. Our Proposal The Proposal we make for Jewellers is attachment of Promotional material on the cover page of the magazine and then quotes a price regarding the no. of copies they order or their target reach. Why we selected Jewellers We targeted jewellers because our Flagship Magazine Femina suits best to their customer profile, doing promotions through Femina magazine will have a substantial impact on the minds of clients customers. Also Utilizing Clients database will help connect with a ready market of Women’s who read Magazines on a daily basis.
  22. 22. 22 Findings India is the biggest consumer of gold and targeting new segments of Customers increase our Readership and Market. Jewellers do have promotional offers on Gold jewellery purchase , they use direct marketing a s a toll to connect with their customers so proposing them our offer helps them do this drive effectively and efficiently. CAR DEALERS Mercedes Benz, BMW, Land Rover – Jaguar, Hyundai, Toyota & Honda dealers target the upper end segment. Car Dealers do give souvenirs to their clients at the time of handling the keys TOP GEAR magazine is the best kind of magazine which has a brief description of all the Automobiles available. OUR PROPOSAL Car dealers have been targeted because they give gifts to their loyal customers who buy cars or take advantage of the after sale services. Why CAR dealers Car dealers are in a lookout for things which could be given as souvenirs. A person buying BMW, Mercedes is definitely our target customer. The advertisers too would benefit from this and this in turn could prove beneficial. Our top gear magazine is considered as the best Automobiles magazine which could be given as gift to direct customers or be kept at the Car dealers office which provide relevant information to people on which car to purchase or not, in other word it aca be considered influencer in the purchase decision of the customers.
  23. 23. 23 FINDINGS Advertising cars is mainly through television or Print but the use of direct marketing may connect directly to customers who already own cars and indulge in the repetitive purchase of new cars and automobiles. New segments are coming up with Younger generation taking interest in automobiles market, the knowledge available in TOP Gear magazine help auto dealers to make understand the relevance of purchase of Automobiles. A list of car dealers is made from the official site of BMW, Mercedes, Toyota, Hyundai and then an appointment is fixed with their marketing head to have an audience. Briefing them about our magazines and proposing them our magazines so that they can be kept in cars. Explaining them their benefits and how customization can be provided in the form of bookmark with one of the model of their cars. Other Companies: During the internship we tried to contact those companies Fmcg or Service who are into Women oriented products or service, solely because It was better suited toward our FEMINA magazine. These Companies were:  SPA’S  HEALTH CENTRES  COSMETIC COMPANIES  SALONS  DIABETES CENTRES  CAB COMPANIES  COLLEGE’S
  24. 24. 24 LIMITATIONS This report also provides detail information on the limitation one might find in the actual Sales process of Bulk selling of Magazines. The Limitations are as following: 1. Overestimation or Underestimation of Proposal Budget 2. Irregularity with the order Placing and actual delivery 3. Not Incorporating the Market Trend in Print Media sector 4. Client’s contact Information from Internet may not be correct and Misguided Information may not be relied on. 5. Promotional Offer provided to the Client may not reach the desired Target Potential Market. 6. We target different companies who are from Different sector working in a competitive market, so if the Marketing tool used through our Publications are not directly reaching Our Target market it may prove Wastage. For e.g.: Pitching proposal to a Pharmacy company on using Top Gear (AUTOMOBILES) Magazine will be wastage on company’s part because both these Entities cater to a different market. 7. Many of the corporate companies are during their closing period, so they have no time for meeting or going through the mails. 8. This is a unique idea of promoting Magazines to companies such as Pharmaceuticals, Ayurvedic Medicine Manufacturers, so at first attempt it is very difficult to make them understand that the magazines could be useful to them. 9. During obtaining view on the book from book shops it may be possible that he/she may not be able to provide suggestions which can be useful to Times Publications. 10. Being an academic exercise, the time given to complete the task is limited. The study on RMD has certain limitation but sticking to the time schedule, proper follow up and clients servicing at regular intervals will decrease the lag period and discrepancies.
  25. 25. 25 PROJECT REPORT The Times of India Group accounts for 30% of the measured ad spend in the country. We include in our stable The Times of India, the second-highest selling English broadsheet worldwide, a daily package of at least 40 exciting colour pages; and The Economic Times, the world’s second largest selling English business daily. The Group also has a range of nine Business2Business publications from The Economic Times catering to diverse industry segments. In addition its 16 Special Interest offerings are targeted at groups of consumer interests ranging from photography to education to annuals on beauty, fashion, etc The RMD – (RESULTS & MARKET DVELOPMENT) The department which takes care of circulation, vendor chain, readership, Sales & corporate tie-ups help generate revenues for Times group. Figure 5 Source Times marketing department 07 The TIMES GROUP reach shown in the Illustration:  Delhi shows most Readership with 3714000  Mumbai is 2nd with 2649000 Times group has its prominence in all metros which generates Advertising revenues for the Company.
  26. 26. 26 Aggregate Relevant audiences: Figure 6 Source: Times marketing department 07’  One out of every 2 English print reader in top 8 metros, read times group publications.  Almost 6 out of 10 AEP readers in Mumbai, Delhi & Banglore read Times publications. My internship covers the part of Bulk selling of Times Magazines. MAGAZINES What are magazines? Magazines are a periodical publication containing a variety of articles, generally financed by advertising, by a purchase price, or by pre-paid magazine subscriptions. Magazines are published weekly, fortnightly, monthly, quarterly or half yearly It is rightly said: “What is important is how the reader reads the magazine, Not how they obtained the copy or the price they paid.”
  27. 27. 27 MAGAZINES VS NEWSPAPERS Magazines are considered to be in more depth and more detailed and exact as compared to the newspapers. Newspapers give us the basic idea about all the articles or the happenings from different genres across the globe. Magazines on the other hand focus on a particular genre and articles related to that genre are expressed, discussed by the experts in detail. Depending on the readers interest they can choose the genre and then go for the magazines available in that category. Readers get in-depth and accurate information and knowledge, gets exposed to different point of views brought out by various experts. Magazines also come in a portable format and hence reader can read it many times which are not the case with newspapers. Magazines fall into two broad categories: GIEM (General Interest English Magazines) Niche Magazines GIEM are aimed at the public at large and are usually available at newsstands or retail outlets. Magazines like Outlook, India Today, Competition Success which appeals to a broad spectrum of readers. The niche magazines on the other hand consist of highly specialist titles covering particular hobbies, leisure pursuits or other interests. Topics covered by niche magazines include celebrity space, lifestyle, computers, exotic places to be travelled, music and automobiles. Most of these magazines are available throughout the country in which they are published. However there are some which are specific to a local area, and quite a few like FEMINA – largest selling Woman magazine, are internationally available. Many business magazines are available only, or predominantly available on subscriptions. In some cases these subscriptions are available to any person prepared to pay; in other case free subscriptions are available to readers who meet a set of criteria established by the publisher. Advertiser’s readership is relevant to their needs. Very often the two models, of paid for subscriptions and controlled subscriptions are mixed.
  28. 28. 28 MEDIA AND MAGAZINES All brands face a collection of similar marketing challenges: 1. Enticing consumers to spend money on products as competitive and economic pressures rise. 2. Capturing consumer’s attention in the face of busier lifestyles and more information clutter. 3. Overcoming consumers‟ hesitancy to purchase given their overall cynicism and desire to wait for “what’s next,” “what’s better,” “what’s cheaper.” Failure to meet these challenges can reduce brand loyalty, resulting in increased customer drain, since attracting new consumers often cannot replace the loss of current customers. To avoid this situation, the best strategy for most brands, including media brands, is to increase consumer commitment by migrating light users to heavier users. In addition to these general challenges, media brands face unique situations as a result of some of the metrics imposed by the advertising and marketing communities. Eyeballs are their prime currency. The situation was described eloquently by Kevin Roberts, CEO Worldwide, Saatchi & Saatchi, in a speech on “The Age of Ideas”: “No matter what kind of business or organization you are your first job in this Narrowcast world is competing for the attention of consumers. That’s the eyeball part.” Then the real job begins – making connections with the hearts, minds, guts and nerve ends of consumers. The ability to create those connections, not the number of eyeballs you can access, is going to decide the media winners.” The implication – to understand consumer connections media must focus on how consumer experiences their products.
  29. 29. 29 INDIAN MAGAZINE INDUSTRY The Indian magazine segment has been on a steady growth path. However, restricted reach and decline in readership can be a hindrance to this trend. Read our recent report to understand the driving forces of today that can help this segment grow tomorrow. The Indian magazine sector has reached INR14.9 billion in 2009. The segment’s revenues increased at 7.2% y-o-y in the year 2009. Over the next three years, it is expected to record an annual growth rate of 6-10%, driven by:  Market entrants  New titles  Alternate revenue stream Figure 7 But, all is not well on the magazine front: Among the magazine companies surveyed by us, 73% of the respondents believed that magazine readership growth will continue to be driven by the metros and India’s 15 largest cities. Of the 20 most-read magazines in India, only 3 magazines are in English, while the remaining are in Hindi and other regional languages. English magazines however, garner the lion’s share of ad revenues. Reach of the magazine sector in India is still largely insufficient — more than 300 million literate in Alternate revenue streams are gaining traction .Alternate revenue streams such as events and digital delivery are gaining ground, and are expected to account for 20%–50% of total revenues within the next three years.
  30. 30. 30 Hike in circulation revenues Circulation revenues are also expected to grow, primarily for B2C titles, driven by:  Increased cover prices  The growth in niche magazine readership  The introduction of new titles  During 2009, about 2,940 magazines and supplements were launched despite the economic slowdown. Changing business models Currently, the magazine segment may not yet have successful strategies and business plans in place to profitably monetize the digital space. But it will soon have to address this concern. Further, the large and growing number of titles available in each genre remains a concern for growth of ad rates. Companies will need to evolve into multimedia organizations, offering advertisers multiple options to reach their reader communities. Inorganic growth opportunities: Immense scope for M&A, joint ventures and licensing of titles With the easing of entry norms for international magazines, foreign publishers have been, and will continue to, enter the Indian magazine market. There is immense scope for mergers and acquisitions, joint ventures and the licensing of titles in the current scenario, as international publishers witness declining readership in their home markets. Rising literacy rates, increasing disposable incomes and an expanding earning population continue to stimulate the growth of the magazine segment in India- more than 300 million literate individuals do not read any publications. The revenue sources for a magazine are subscription, single copy sales and advertisement. Approximately 73 percent of revenue comes from advertising and 27 percent from circulation.
  31. 31. 31 Challenging times The magazine industry is going through a tough phase in India just like in other countries. Newspapers have added supplements to their main issue and infringed on the content covered by magazines earlier. Television channels have launched in different genres that didn't exist a few years back. And with the increased penetration and adoption of the Internet in the country, more people are now consuming news and stories on different topics on the web and mobile. There is still a demand for high quality print content and magazines need to deliver on that need to avoid losing market share to other mediums. In addition, they also need to explore and distribute their content on the web and mobile platforms to give choice to their subscribers to consume content from anywhere and at any time. India has 49,000 publications, but annual revenues total just $1.1 billion. Most lack technology, marketing, and capital to grow which has resulted in a handful of publications dominating the market with the Times of India Group being the market leader. Distribution is critical for a magazine since it has to be readily available and marketed to consumers. Big publications have strong distribution network set up. Retail: magazines are available in retail outlets for sale. The retailer gets a commission on the sale price. Subscription: publisher signs up subscribers directly or through partners and delivers the issues in mail. Selective Distribution: Special sponsored copies are distributed in airplanes and hotels. With the growth coming from Tier-2 and Tier-3 cities, magazines have to expand their distribution channel aggressively in those locations and localize content where needed. The print industry in India is highly fragmented due to the large number of local languages. Regional language publications own 46 percent of the market share, Hindi language publications cover 44 percent and the remaining 10 percent is served by English publications. The primary penetration of English language magazines currently is in metros and urban centres though the growth is widening to smaller cities as the education and income levels increase among the middle class. With the opening up of Foreign Direct Investment (FDI) policy, several international publishers are aggressively entering the market and this trend is expected to continue.
  32. 32. 32 Print media: The “regional” Trend In 2012, Deloitte predicts that the traditional print media in India will still hold strong, and newspapers will continue to be broadly consumed and highly regarded as reliable sources of information, entertainment and other general content. Newspapers rate at par with television in terms of overall advertising influence, and are considered a top influencer of web site traffic (along with search engine results and television advertising). Newspapers – still going strong Unlike in the western countries and in some of the other Asian countries, the newspaper in India is still eagerly awaited every morning and is consumed with the morning cup of tea! People of all ages have preferences as regards newspapers and discussion topics at social gatherings still involve articles or advertisements in newspapers. The sheer size of the small scale businesses in India ensures that the classifieds and other pages of the newspaper are never short of matter. Advertisements will remain the dominant source of revenue for the newspaper and a powerful tool for businesses, as ad copy is almost sure to be seen by the target audiences either in the mass English language newspaper or in one of the numerous regional language ones. The growth rate of newspapers in India (new newspapers being published) during 2010-11 is around 6%, and the trend is expected to continue in the coming years with a regional thrust. A similar trend can be expected in the coming years. This trend will however have more regional focus. There could be more regional newspapers being launched as opposed to National dailies. This has more to do with the cost involved, but regional preferences of readers also result in decisions being taken to go more regional than national. Regional newspapers are planning multiple editions within the region or state to cater to the semi-urban population. The next step is to build the brand and launch further editions in neighbouring regions/states and expand its reach. It is interesting to see how regional newspapers which have small/medium levels of circulation bring out multi-town editions on a daily basis. The share of regional newspapers is around 46% in India. The advent of the broadband and technologies is no doubt helping this happen. There is still time and space for more such newspapers in India, spoiling the reader for choice, until the other digital mediums take their share of the readership pie. Even though digital mediums like the tablet could be the next piece of hardware to replace the feel of paper In one’s hands, its prohibitive cost ensures that it will be several years before this becomes a reality. At present, less than 10% of the population has access to e-paper stand even here the preference is for the print version over the online one.
  33. 33. 33 The Opportunity There's little doubt about India's market potential. According to a national survey, 248 million literate adults still don't read any publication. Readership of newspapers and magazines is up 15% since 1998 to 180 million. It's a reflection of a younger, more educated population, especially in smaller cities. Now that the doors to foreign investors in print media have been thrown open, one can expect activity to pick up in this sector. Companies such as Pearson, Haymarket, Time India, News Corp., and Dow Jones have eyed India's big, English-reading market. ICICI Ventures, which holds stakes in three media companies, is quite bullish about the industry's prospects. Trade books offer the best openings, since a higher FDI has been permitted in them. Britain's Haymarket Publishing Group already has ties to Autocar India, with 80,000 subscribers. Haymarket doesn't own a stake, but helps with research and management. Now, it can invest, provide funds to print more copies, market more strongly and use Autocar as a platform to bring its other brands. Bombay's Tata Infomedia, a $30 million publisher of yellow pages and trade magazines, also has already started to solicit business with foreign companies. The Tata Group sold the Indian edition of Reader's Digest magazine, making it the first publishing property offered for sale since the government had scrapped the ban on foreign investment in the print media. As expected, there have been various anti-FDI lobbies, which are strongly voicing protests against foreign investment in Indian Print Media. Their major contention is that foreign forces might begin dominating the content of Indian publications, which is detrimental to national interests. An extreme view given by a former Indian Prime Minister is that powered by their immense finances and goaded by an ambition to control the emerging Indian market, the foreign monopolies will impose their own agenda of ultimately controlling Indian politics. But there is more than meets the eye. The English-language media, fearing competition from players with deeper pockets, has been resisting this move by the Government. And from a marketing point of view, the English press reaches the most lucrative segment of society - the 300-million-strong middle class. International players are seen as a threat to market share. The opening up of the print media sector to foreign investment is a bold decision by the Government, considering the unwillingness of so many past Governments to do the same. It is a policy decision that could have a very positive impact on the sector, provided the Indian publications generate enough interest and exhibit their true potential to the overseas investors. It could enrich the quality of the magazines and other publications.
  34. 34. 34 Recent Developments  There were several niche titles that were launched in 2008 and 2009. A slew of foreign players launched their India editions.  The most notable magazine launched was Forbes India in May 2009 by Network18 and Forbes Media.  RPG Group's 'Open', a weekly magazine aimed at evolved Indian readers who are well informed, well traveled and identify themselves as global citizens. It is available in 12 cities.  Pathfinder publishing’s maiden title Career 360, a monthly publication focusing on career advice.  Technology Review, a technology magazine launched in India jointly by MIT's Technology Review magazine and Cyber Media India Ltd.  Hearst Corporation's Harper's Bazaar, a fashion and beauty magazine in partnership with India Today.  The re-launch of Delhi Press' The Caravan, a fortnightly magazine that covers politics, culture, arts and literature.  Images Group's FNL and Salon and Living etc., an Indian edition of international homes magazine.  Gill India Communications' What Women Want, a woman's magazine for women aged between 20 and 45 years and 'Lifestyle Living', a lifestyle magazine dedicated to those with a creative lifestyle.  The trend for foreign magazines to launch their India edition is expected to continue in 2010 as well, with BBC's Lonely Planet magazine having launched recently. Foreign Investment in Indian Print Media - Role of Government The process of economic liberalization in India, which began more than a decade ago, has taken another significant step by opening up the print media sector. With the UPA Government scoring an emphatic win in the Lok Sabha elections, the media industry got an open-minded Information & Broadcast Minister in Ambika Soni who has sent positive signals to the industry. Earlier in 2009, the Government gave its nod to an increase in Foreign Direct Investment (FDI) in facsimile editions of foreign newspapers. The Government also announced customs duty exemption on newsprint. In December 2008, the Indian Government unveiled a set of guidelines to allow Indian editions of foreign news and current affairs magazines 26 per cent FDI as long as all key executives and editorial staff are Indian. The Ministry of Information & Broadcasting has for the first time given approval for the publication of the facsimile edition of foreign newspapers by allowing ‘The Wall Street Journal’ and ‘The Wall Street Journal Asia’ in India. Wall
  35. 35. 35 Street Journal India Publishing Pvt Ltd, a wholly owned subsidiary of Dow Jones and Company Inc, would bring out these newspapers. The government has announced customs duty exemption on newsprint for the newspaper and magazine publishing industry. These concessions were announced in February 2009 in view of the economic slowdown and the high newsprint cost which spiralled close to 25%. MAGAZINE OVERVIEW IN INDIA Figure 8 Source: Hansa research 2012 The figure shows annual growth of Press increasing slightly showing a growth of 4.2 % which is not as booming as internet. Reasons behind this slow growth are:  E-paper availability  Smart phone Application which are equally informative  Trend of getting news on-the-go.  Marketers looking for new ways to communicate.
  36. 36. 36 Magazine in India Figure 9 Figure 10 Source: Hansa research 2012 There are no Times publication’s Magazines in the list because of the growing popularity of Regional Magazine capturing local markets. Most of these magazines are competition oriented or examination purpose Publications.
  37. 37. 37 Reasons behind LOSS of Times magazines: 1. Competition with Regional magazines 2. Indian consumer’s perspective towards Lifestyle & Health oriented magazines 3. Internet as Direct Competitor 4. Marketers utilizing other media form to advertise. 5. E-magazines available, so people tend to read digitally The Illustration on next page Provides Facts and figures about Indian Magazines. Average issue readership (AIR) of English magazines, India Today, Outlook and The Week has reported positive growth as compared to last quarter. Meanwhile, Readers Digest, Femina and Business Today have also been able to attract readers as per the IRS 2011 Q1 results, as compared to the previous quarter. With an AIR of 17.24 lakh, India Today continues as the unchallenged leader in the space. However, when compared to the corresponding period last year, India Today has seen decline of 3 per cent in its AIR. Readers Digest has added 38,000 readers over the previous quarter, but when compared to last year, the magazine has seen a 13 per cent decline in its AIR. GK Today with an AIR of 9.77 lakh in IRS 2011 Q2 is not far behind the second position and has seen a growth of 1 per cent in AIR as compared to last year. Competition Success Review, on the other hand, has witnessed notable decline in its readership as its current AIR perched at 6.54 lakh. The readership of Outlook magazine has grown as it has reported an AIR of 4.56 lakh. Growth continued for The Week as well, with the magazine adding 1.21 lakh readers over last year, taking its current AIR to 3.96 lakh. Bollywood news based magazines Filmfare and Stardust have witnessed readers’ apathy as both have seen decline in their AIR. However, when compared to last year, Femina has grown by 5 per cent, taking its current AIR to 3.39 lakh. Meanwhile, Business Today from the India Today Group, has seen growth, adding 24,000 readers, taking its AIR to 3.33 lakh.
  38. 38. 38
  39. 39. 39 TIMES MAGAZINES (TIMES GROUP PUBLICATIONS) The Times group is in the Joint venture with BBC in Publication of Magazines in India, The venture is of equal partnership i.e. 50-50. Times Magazines are considered as the Segment oriented Reads, they have always directed toward Niche segments & Particulars Markets specially Metros. The Audience reception has been overwhelming in India; each magazine caters to need of Consumers as well as Marketers for Advertising & Promotions through Magazines. Worldwide Media offers Indian readers an ensemble of magazines, ranging from Indian favourites like Femina, Femina Hindi and Filmfare, to International bestsellers like BBC TopGear, Hello!, BBC GoodHomes, Home Trends, Grazia, Lonely Planet and BBC Knowledge magazine. Magazines from Times group FEMINA My internship mostly has been directed towards bulk selling of FEMINA magazines because it was hugely demanded by Corporate Companies because of its Brand and Circulations. Overview about Femina The highest selling women's English magazine in India Femina is India’s largest selling women’s magazine. It’s primary audience comprises well- educated, aware and career conscious women from the upper echelons of Indian society. Femina is now a part of Worldwide Media, formed in April 2004, a 50:50 JV between BBC Worldwide and The Times Group. It comprises Femina, Filmfare and a host of new magazines. The Femina woman is poised, confident and self-assured. She is willing to experiment with the untried. A decision-maker in her own right, she is an important influence on household and family purchase decisions. She plays the dual role of homemaker and career woman with competence. Femina takes a quantum leap into the future, projecting the new lifestyles, ambitions and expectations of Indian women, including teenagers, in the coming century.
  40. 40. 40 FACTS & FIGURES  Type of Publication : Women’s Magazine CIRCULATION: 1,35,083 abc-jd 07’  Language : English  Frequency : Fortnightly READERSHIP: 9,72,000 irs 11’  Date of Establishment : 1959 Fact & Figures about FEMINA USERS: o Femina readers love trying new brands. They are 4 times that of any other women’s Magazines. (IRS) o 77% of Femina readers are health conscious. (NRS 2006) o 75% of Femina readers love to shop. (NRS 2006) o 60% of Femina readers are willing to pay more for a high quality brand. (IRS) o 88% of Femina readers believe it is important to spend on grooming products for skin, hair and on make-up. (FRS) o 58% of Femina readers consider cosmetic surgery as a good option. o 88% of Femina readers follow fashion trends. (FRS) Readers Segments:  Femina Hindi spans across age groups, with 76% of its readers in the age group of 18 to 45 years.  With a readership of over 4, 00,000 readers, 75% of its readers reside in the metros with a major chunk coming from the North.  As compared with other Hindi magazines, readers felt Femina Hindi to be glamorous and stylish enough to match other international magazines as compared to other Hindi magazines.  Femina Hindi was seen as an aspirational magazine by the readers as they viewed it as contemporary, trendy and an ideal magazine with an interesting mix of information, entertainment, fun, articles. Although we justifiably call Femina the market leader, for in comparison with other women’s magazines it has a high circulation, referring to it in the context of a small niche market. It must be remembered that in India, literacy offers fragmentation of a market like no other parameter.
  41. 41. 41 The very fact that you can read makes you elitist and privileged. Further, English is the language of the privileged upper class relegating local languages to a lower position in society. Therefore, English readers are at the pinnacle of the Indian consumer market. This Indian woman may be outward looking and internationalist. But she is not western. She is Indian and very, very proud of it. Femina has maintained that delicate balance of Indianness and western aspiration which is just where the top stratum of Indian womanhood is at and which the international magazines in Indian women cannot be judged by western standards. PREMIUM MAGAZINES: VERVE OOMPH ELLE MASS PREMIUM FEMINA COSMO SAVVY MASS NEW WOMAN WOMEN’S ERA MARKET PERCEPTION All these Facts and Figures helped me developing my sales Pitch for Presentations. Clients in corporate world want Marketing Tools which are beneficial as well as cost effective to them. Femina Poses as the best Women & Health conscious oriented Magazine through which Products catering to this segment can easily be marketed.
  42. 42. 42 Comparative study with Other Women’s Magazines Figure 11 Source: 06’ The comparative study shows the Prominence of Femina among its competitors the readership of 829000 in 06 is 1.5 times the challenger in the market i.e. women’s era. METRO READERSHIP COMPARISION Figure 12 Femina’s readership is highest in Metros because of its connect with the audience. 829 520 68 165 116 314 0 100 200 300 400 500 600 700 800 900 591 257 60 60 68 165 96 96 0 33 18 61 0 100 200 300 400 500 600 700 Top 8 metros Other metros
  43. 43. 43 SALES METHODOLOGY FOR FEMINA MAGAZINE My Internship has been focused on Femina magazine’s Bulk selling and Market Development. The Job requirement included: A. Making Proposals for Bulk selling of Femina Magazine to a single client. B. Made Proposals which included Promotions done for the Corporate Client through Femina Magazine. C. Collaborating our Newspaper and Magazine Promotional Offer together to give a Holistic Marketing benefit to the clients I.e. Cross Selling This Concept is use to Provide Better Reach to Clients who are in the process of Launching a product in the market and want maximum awareness and publicity to be generated. This method covers the Advertisement and use direct Marketing tools such as stickering and Samples to create expectations for the Products. This concept uses the advantage of our Newspaper Readership to generate sales for Our Magazine Publications. The research work done included taking survey of Auditoriums and Theatre Companies on how they can use this concept to reach out not only to our Newspaper Reader but as well as connect with our Magazine Audience. SALES FOR FEMINA Reader Relation Executive post in Times Group involves Bulk selling for Times Publications, My Internship was mostly on Bulk selling of Femina Magazine. Purpose:  To increase readership  Revenue from Bulk selling  Promotional tie-ups  Operational activities of Delivering Copies.
  44. 44. 44 PROPOSAL EXAMPLE Femina Magazine The Approach toward Bulk Selling is done by explaining the concept to the client using Email or Presentation. The various Branding and Promotional concepts used are 1. Sample attached to Magazine 2. Fliers, Pamphlets 3. Questionnaires inserted with Magazines. Branding concept This concept involves Stickering and attachment of Clients Promotional Material to the Cover page which has the most Visibility. We explain the Importance of reaching directly to consumers who don’t have time to read Informative Copy inside of the Magazine or Advertisements in our Magazine. This Concept has following Advantages Relatively Cheaper as compared to Advertisements  Brand building.  Loyalty towards customer.  Additional step for visibility.  Cheaper way to communicate your offer through insertion. Brand reminder after particular interval’s in form of a magazine.
  45. 45. 45 OTHER TIMES PUBLICATION MAGAZINES FILMFARE: It’s a film magazine that has evolved as an entertainment medium, itself covering the entire gamut of show biz. Every month the colourful and informative guide features Indian movies, music, serials, soaps, Hollywood films and lots more TOP GEAR: BBC Top Gear is an automotive magazine with a lifestyle flavour. So apart from road tests its USP are its surreal features which normally test the cars and bikes in various environment and talks a lot about driver interactions with the car and not just the technical specifications. The magazine has made a niche for itself with its take on automotive journalism. GRAZIA: GRAZIA India, the 10th edition of this hugely popular title is a monthly fashion magazine with a powerful and unique editorial formula that makes it stand out from other publications in its genre. GRAZIA works on a distinctive 'Easy Chic' philosophy, decoding fashion and the latest trends, keeping style upscale but wearable, chic but real. The spanking new look of the magazine is cut from a dyed-in-the-wool Grazia fabric: Fashion should be uncomplicated and fun. While the designs have evolved over time, what hasn't changed is the GRAZIA belief that fashion is for everyone. GOOD HOMES: Home is where the heart is, and that is exactly where the heart of Good Homes lies. Today it is one of the most preferred & leading dé cor magazines that inspire its readers with innovative ideas that fit every space & budget.
  46. 46. 46 From kitsch to classic, simple to sublime, understated to ostentatious, no matter what the design sensibility or individual style, Good Homes offers its readers an eclectic mix of dé cor suggestions and DIY tips. LONELY PLANET: The world’s most trusted source on travel, Lonely Planet has made its way to India. Through vivid writing and stunning colour spreads from celebrated and seasoned traveller-writers and photographers, Lonely Planet Magazine India Inspires travellers to sample different cultures first-hand, discover new people, And learn fascinating stories about every place. HELLO! : HELLO! Covers the world of celebrity from a completely different angle, making it the world's most loved celebrity magazine. HELLO! is invited into the palaces and homes of some of the most elusive royal families, movie stars and celebrities to get a view from the inside. BBC-KNOWLEDGE: With its unique content and style, BBC Knowledge holds the key to the mysteries of the world. Written by renowned academics and experts in the fields, BBC Knowledge's wide-range of features provide riveting and up-to- date information on subjects ranging from treasure hunting in the 21st century With material that is meant to stimulate the mind, this magazine looks to empower a young generation of readers. These magazines are in Joint venture with BBC, cater to every segment and have attained good position in Indian markets.
  47. 47. 47 OTHER PROJECTS Project 1 My Internship also comprises of Collecting Data on marketing strategies of Theatre companies & Production houses. PURPOSE: RMD department has made proposals for Production companies who organise live musical/singing events all over Mumbai. FINDINGS: The auditoriums I have collected data on are as follows: Auditorium:- 1. Prithvi theatre(juhu) Marketing dept. Mr Lalit Print ads done by the management All events are managed by Prithvi theatre management Booking online Boomyshow.com 2. Rangsharda auditorium Bandra reclemation Mr Bhilani Events’ marketing is handled by Production houses. Rangsharda only provide auditorium on rent.
  48. 48. 48 3. St Andrews auditorium Bandra west Mr Suniel Damian Roger drego theatre comapany Email : rdtheatre09@Gmail.com Events’ marketing is handled by Producers for the play or theatre. 4. Comedy Factory Lower parel Ms Zenia, Marketing Head Event’s marketing is done by the management They have a tie-up with Times of India 5. Bhaidas Hall Vile parle west Mr Chagan , Manager Events’ marketing is done by the producers for the show 6. Iskon Auditorium Juhu Events’ marketing is done by the Trust management. CONCLUSION: We were in the process of making a proposal for event/ production companies who organise Music/singing events. Our Management proposed 50% off on the Advertisement space on our Newspapers and provide complementary magazines for the rest remaining 50%. Reasons: Increase Readership for Our Magazines with the help of CROSS SELLING.
  49. 49. 49 Project 2 This Internship gave me the chance to experience Corporate Tie-ups and handle Business Proposals for Times Group. The Tie-up I was part of was with Multiplexes all across Mumbai Purpose: To strike a Deal for Movie Tickets / Vouchers for Insertion in FILMFARE magazine, we had to provide complimentary tickets to our Filmfare subscribers who can take advantage of watching movie all over Mumbai in Multiplexes we get in Business with. Findings: Our team Contacted many Multiplexes all over Mumbai, We had to negotiate deals with Multiplexes on Ticket Price & Availability Multiplexes Targeted: 1. FAME I LTD 2. CINEMAX PVR LTD. Conclusion: Both of our meetings led to informative Results whose deals are for future purposes. We needed 400 tickets and Cinemax offered us a deal which will be handled by our management.
  50. 50. 50 MARKETING TREND RMD also includes Marketing & promotion for Clients; Bulk selling not only benefits us but also provides platform for corporate companies to Promote through our Publications. The research done on marketing trend prevailing in the corporate world helps us in Formulation of Proposals. To understand the Marketing trend we first need to get a jest of what is marketing and the tools available in the current environment with Companies MARKETING TOOLS Marketing tools are product development and promotional strategies and actions that a company uses to develop and promote its products or services. In my internship following Marketing Tools were extensively used: Direct Marketing: Direct marketing is any unsolicited contact your business makes with existing or potential customers in order to generate sales or raise awareness. For many businesses, it's by far the most cost-effective form of marketing. From direct mail and leaflet drops to telemarketing and email marketing, it allows you to target customers with greater accuracy than any other method. Leafleting is probably the simplest and cheapest form of direct marketing. It may be worth considering unaddressed leaflet drops and street handouts if you want to promote your business in your local area, particularly to consumers. For example, if you: offer services locally - such as food delivery, taxi services, gardening or double-glazing installation want to attract people to your shop's sale or say the opening of your new restaurant However, leafleting brings significantly lower response rates than direct mail. It's less targeted - you don't know the characteristics of the recipients of your leaflet and you can't personalise your message. As a result it's often best to use leaflets for products or services of universal appeal, or when you need a large number of leads. Decide whether you need to get your leaflet into every building in the area - called blanketing - or if it's more appropriate to hand information to people in the street near your business. If you're blanketing, using the postal service is a possible alternative to organising your own door-to door distribution and may make it more likely that recipients will read your leaflet If you want a return on your investment, you need to prepare your materials carefully. Ensure materials look professional and contain clear, useful information.
  51. 51. 51 To find out how effective your campaign has been, it's a good idea to include some kind of incentive for feedback. For instance, you could provide a small discount or special offer for the first 100 customers who bring in your leaflet. As with any such offers, make sure they're priced into your overall budget for the campaign. Sales Promotions: Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily. It is more closely associated with the marketing of products than of services Following are the types: (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange your black and white television with a colour television’ are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount
  52. 52. 52 (vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii)Scratch and win offer: To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market. ADVERTISING: “Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor” Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent. Advertising has acquired great importance in the modern world where tough competition in the market and fast changes in technology, we find fashion and taste in the customers. Print Media Advertising: The print media consists of newspapers, magazines, journals, handbills, etc. No newspaper or, journal, today, can survive without advertising revenue. Print media advertising, even today, is the most popular form; and revenue derived by mass media from advertising has, therefore, been progressively increasing year after year. Print media appeals only to the sense of sight, i.e. eyes
  53. 53. 53 Advantages or Merits of Advertising in Magazines: The following are the advantages of magazines as an advertising media: 1. The life of magazine is considerably longer than that of newspapers. These are kept ready for weeks and months. 2. Better reproduction of advertisement than newspapers is provided. 3. Magazines are highly selective in nature and waste of circulation is avoided. 4. Magazine advertising create prestige, reputation and an image of quality. 5. The number of readers per copy in case of magazine advertising is quite high. There is multiplicity of readership. 6. Magazines are ideals for introduction new ideas. 7. Magazine readership is usually a leisurely home readership for enjoyment relaxation, and with guard’s down‟. 8. The printing, paper, colour combination is more attractive in case of magazine advertising than newspaper advertising. 9. Magazines reach specialised groups conveniently and effectively. 10. The cost of utilising magazines for advertising is quite low. Demerits of Magazine Advertising: 1. The chief demerit of magazine advertising is its low flexibility. 2. Preparation costs for magazine copy are usually rather high and sometimes exceed the cost of the space used in trade magazines. 3. The circulation is limited as compared to newspaper advertising. 4. It takes more time in printing etc. than newspaper advertising. 5. The size of magazines differs widely and hence the advertiser has to prepare the copy of advertisement according to the size of the magazine and journal
  54. 54. 54 RESEARCH ON MARKETING TREND The research done on Marketing Trend prevailing among corporate companies i visited regarding sales purposes. Introduction: Research Conducted on 40 respondents i.e. corporate companies. Questions were asked to Marketing Manager / Product Managers on the basis of following parameters:  How they view Current scenario of Marketing in Mumbai  Different tools they use in Promoting themselves  Competition in the Market  Marketing Strategies Affecting their Sales.  Future Marketing trends in their Company. All Companies were eager for new Strategies coming up as they knew” “They are fighting to reach 1st position in Potential consumers’ mind” During the research process many Respondents explain about the Initial set-up of Marketing plans and Previous Marketing efforts made by their companies. Purpose:  To find the current Marketing Trend among Corporate in Mumbai.  Which marketing Tools they prefer for different products.  What Marketing strategy they adopt in Crisis.  The study done helps which Sales Proposal to pitch according to Clients Advantage.  Effective Use of Media to benefit Clients.  Feedback from Client’s would help formulate Future Proposals.  Total Contribution from Companies as they help formulate the Proposals.  Reference for Potential Client’s.
  55. 55. 55 LIMITATION OF THE STUDY: The study conducted has following limitations:  Responses Given by the Managers may not be authentic to be recorded.  Findings may not provide a clear picture about how companies may react in future.  Marketing Tool used does not cover the whole magnitude of Marketing Strategies available with Companies.  Respondents are not from similar industry so the changes in their approach towards Branding and promotion may alter final conclusions.  The Research is done on limited Companies this may not prove to be authentic in judging the whole marketing trend in India. The research done may have certain limitation because it was conducted during Sales calls so the Respondents may not have been fully cooperative. Research Population: Figure 13 Total: 40 Pharmaceutical Companies: 21 Auto Dealer: 3 Fashion/women related: 10 Others: 6 Total Pharma Fashion related Auto dealers Others
  56. 56. 56 QUESTIONNAIRE: 1. Does Your Company uses any of the marketing tools?  Sales promotion  Direct marketing  Advertising 2. Taken into account the promotional budget which marketing tool is beneficial to your company?  Sales promotion  Direct marketing  Advertising 3. Which marketing tools have previously affected your sales?  Sales promotion  Direct marketing  Advertising 4. Which marketing tool is directed towards reaching specific target market by your company?  Sales promotion  Direct marketing  Advertising 5. Which marketing tool do you prefer to tackle competitor’s tactics?  Sales promotion  Direct marketing  Advertising
  57. 57. 57 6. According to target segment which marketing toll you consider as effective for your flagship product?  Sales promotion  Direct marketing  Advertising 7. CRM is a tactics used by every corporate, with which marketing tactics will you consider it as effective?  Sales promotion  Direct marketing  Advertising 8. In lieu of the industry’s trend which marketing tool is currently prevailing?  Sales promotion  Direct marketing  Advertising The questionnaire attempts to find the Marketing Trend among the Companies that were contacted during the Internship. This data collected was then processed through SPSS to minimize the Calculations and find the output to analyse the Results. FACTOR ANALYSIS was done on the data collected to find the Total variance and effect of every variable on the Study. SOLUTION: The Factor Analysis brings out the Solution on “Marketing Trend” The Tables: Correlation Matrix Communalities KMO-BARLETT’S TEST Total Variance Scree Plot Rotated component matrix
  58. 58. 58 Correlation Matrix The Correlation matrix indicates, Selected 8 variables showing correlation between them, none of the variables show strong coefficients this means Variables cannot form a single composite factor. SALES show the highest correlation with each variable, Highest with Marketing Tools. This shows corporate companies view Marketing Tools used should be directed towards Increments in Companies Sales. KMO-BARTLETT’S TEST This Test measures Sampling Adequacy i.e. .787. It summates all of squared correlation coefficients divided by sum of all squared correlation coefficient. Sales show highest
  59. 59. 59 It suggests that the value should be above than .50 which indicates further study should be done. Bartlett’s Test proves variables are independent of each other, the significance should be less than .05 Communalities table: There are two columns Initial and Extracted, The Initial Communalities of 1.0 suggest all variables are fully involved. The extraction value which is less than 1.0 indicates the proportion of variation in the variables. Any value less than 0.40 does not affect the solution. We get value from Component 1 i.e. 3.430, the highest factor among all variables. 0.787 Test should be continued for study. This means 69.3 % of variation in Sales is affected by factor model.
  60. 60. 60 Total Variance Explained This table shows you the actual factors that were extracted. If you look at the section labelled “Rotation Sums of Squared Loadings,” it shows you only those factors that met your cut-off Criterion (extraction method).In this case SPSS extracted 2 factors who made the cut i.e. whose Eigen value is more than 1. The total variance % is explained by the “Total variability” accounted by each factor. The first factor accounts for 30.695% in all 8 variables.
  61. 61. 61 Scree Plot Here’s the scree plot that we asked for. The slope of this curve levels out after just two factors. 2 components extracted. This Graphical representation Of EIGEN values which determines the No. of factors to be RETAINED in Factor analysis solution. The higher value 3.430 resembles the peak and it drops continuously until the last value resembles a Flat curve horizontal to the axis.
  62. 62. 62 Component matrix The Rotated Component Matrix shows you the factor loadings for each variable. I went across each row, and highlighted the factor that each variable loaded most strongly on. Based on these factor loadings, I think the factors represent:  Marketing Tools , Sales & Competitors Tactics are closely related which I’ll call “Trend Follower”  Specific Target Market , Flagship Product make strong Factor in component 2 which can be named “Defend Marketing Share” CONCLUSION: The research done on marketing trend brings to notice preference of companies in Mumbai. It tries to answer the question “what do Companies want? “ From the solution we can find following points highlighted:  Marketing trend considerably depends on SALES  Defending & Retaining your market share is utmost important for Companies.  Companies find Marketing tools to be used according to the Trend in the Environment. Form a factor: ‘Trend follower’ Form a factor: “Defend Market Share”
  63. 63. 63 RECOMMENDATIONS Recommendations for Femina Magazine:  Expand the Target audiences with inclusion of Men related topics  Quick Delivery of Copies so no problem arises in Client servicing  Continue adding more supplements with Femina i.e. Brand extension  Maintain Valuable Corporate tie-ups, Quick Follow-ups.  Tie-ups at Airports & Hotels should be maintained according to Clients request. Recommendation for Times group RMD department:  Develop Proposals according to Promotional Budget of Clients.  Corporate tie-up with Cosmetic companies should be developed, so that promotions could be done for them in Saloons i.e. Push marketing  Surveys conducted on Marketing trend should be applied according to the Industry analysis  Continuous Follow-ups, Sister concerned selling should be encouraged.  Implementing Proper delivery chain for efficient supply of copies to Clients.  Market competitor’s strategies should be kept in mind before implementing any strategy.  Pre-emptive defence strategy to maintain Market share.
  64. 64. 64 REFERENCE I made use of Search engines to find Companies details and Industry analysis. Following were the references:  Justdail.com  Grotal.com  Mouthshut.com  IRS SURVEY – Indian Readership Survey 2012 ,11 ,10  NRS SURVEY- National Readership Survey 2012,11,10  Exchange4media.com  HANSA RESEARCH REPORT  timm.indiatimes.com  pharmahelpline.com  timesgroup.com  publicitas.com  arcgate.com  Kpmg-Ficci Report, 2012  Company’s Database  Client’s Referrals  Online Directories, Yellow pages, Ask me.com etc  Economic Times online Report  Top10best.in, report 2012 The findings on the report have been extracted with the help of these references.
  65. 65. 65 Glossary: RMD: Results & Market development WWM: Worldwide media BBC: Bennett Coleman & co. Ltd. SPSS: Statistical Package for Social Sciences TIMM: Times international Media Marketing IRS: Indian Readership survey NRS: National Readership survey OTC’S: Over the counter drugs Submitted To: College guide: Proff. Gangadhar Hugar IBS Faculty Company Guide: Mr. Ramchandra Naik RMD, Sales Officer, Times of India Submitted By: Hardik Soni