1. Dainik Bhaskar - Jaipur
(‘MG1203: Marketing Management: Case Analysis’)
Group: 07
Ajay Patel (2013IPG-005)
Akshay Sharma (2013IPG-008)
Ankit Kumar (2013IPG-021)
Anni Gupta (2013IPG-022)
Deepak Kumar (2013IPG-037)
Keshav Singhal (2013IPG-059)
IME Department, IIT Kanpur
06 March 2017
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Table of Contents
S.No. Contents Page No.
Executive Summary ii
Acknowledgement iii
1. Case Introduction
1.1 Background
1.2 Company Philosophy
1
2. Challenges faced by Dainik Bhaskar in Jaipur
2.1 Entry into new market Jaipur
2.2 Presence of an undisputed market leader
2.3 Strong hold on the distribution channel
2.4 Habit-Based Purchasing
2
3. PEST Analysis of Dainik Bhaskar and Rajasthan Patrika 3
4. Consumer Segments 5
5. Actions to the Main Problem 6
6. Alternatives to the Main Problem 8
7. 4Ps for the Recommended Strategy 9
8. Conclusion 10
3. 3
Executive summary
This case study is about a journey of a newspaper firm which marked its beginning with a four-
page newspaper in Bhopal and became India’s fastest growing newspaper. Dainik Bhaskar, a
newspaper company started under the shed of Bhaskar Group has created glorified history that
one will always remember in terms of marketing management. Starting with Bhopal, it slowly
grew its roots throughout the Madhya Pradesh by conquering many challenging markets such
as Indore. The market was totally under the leadership of some other newspaper firm but how
they managed to conquer and became the leader in the entire Madhya Pradesh with around
65% of the market share. While they emerged as a leader in MP, they were unaware of the
challenges, they are going to face if they expand their business out of their habitat i.e. MP.
They started with Rajasthan while expanding and found Jaipur to be an appropriate market to
start with. But it wasn’t easy to crack the market nutshell of Jaipur. There was monopoly of an
undisputed and undefeated learder, Rajasthan Patrika over years and getting through them was
challenging. But Dainik Bhaskar was always willing to take it to next level, they used their
experiences which they learnt during conquering MP and becomes the No.1 newspaper over
there. They started with a survey which made them aware of people views and opinions about
the existing newspaper in Jaipur. Interest of people were kept in mind and strategies were made
and implemented. They started with an introductory price of Rs 1.50 which was 33% less than
Rajasthan Patrika followed by a Guarantee Bond which guarantees that price won’t change for
six months. What was the response to these strategies they pulled out very significantly?
Immense. Within 4 months of publishing, they defeated the market leader prevailing for years,
Rajasthan Patrika. The success was huge and glorifying. It is now read by students as a case
study to appreciate the beauty of marketing management.
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Acknowledgement
It is our brilliant supposition to put on record our best respects, most profound feeling of
appreciation to Prof. Narendra K Sharma for his valuable direction which were to a great degree
supportive for our study both hypothetically and for all intents and purposes. The supporting
and blooming of the present work is for the most part because of his important direction,
recommendations, sharp judgment, useful feedback and an eye for flawlessness. Our tutor
constantly addressed heap of our questions with grinning generosity and colossal persistence,
never giving us a chance to feel that we are fledglings by continually listening carefully to our
perspectives, giving so as to acknowledge and enhancing them and us a free submit our task.
We might likewise want to take this chance to thank our associates and review group members,
whose opportune direction and backing helped us to keep up advancement in the right track.
We couldn't have done this without him. The matter displayed in this proposition has not been
submitted somewhere else for the grant of some other level of confirmation from any
institution.
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1. Case Introduction
Dainik Bhaskar- the fastest growing print media group in the country today, began its journey
with a four- page newspaper form Bhopal (MP) in 1958 as one of the business by the family
by Late Dwarka Prasad Agarwal, the father of the chairman, Shri Ramesh Chandra Agarwal.
Ever since, Dainik Bhaskar launched its edition one after the other in MP. Gwalior in 1967,
Indore in 1983, Jabalpur in 1987. 90‘s witnessed value addition to its editions after Mr. Ramesh
eldest son; Sudhir Agarwal started his involvement in day-to-day operations. Further, launched
its edition from Raipur in 1992 followed by Bilaspur in 1993. This was the time when Mr.
Ramesh officially inducted Shri Sudhir Agarwal & his younger brother Mr. Girish Agarwal
into business. Mr. Sudhir Agarwal had a passion for editorial & Mr. Girish Agarwal preferred
to take part into core marketing. After achieved no. 1 status & strong leadership in 1995 in MP,
the group identified Rajasthan as a potential market in December 1996, launched its Jaipur
edition with net paid sale of 1,72,933 copies on day one. Jaipur launch of Dainik Bhaskar
created a history in the Newspaper Industry. On the very first day of its launch Dainik Bhaskar
had achieved a confirmed paid up circulation of 172,933 and the readership had reached
459,000 within 4 months in Jaipur city alone.
1.1 Background
3358 crore media house with 10,000- manpower strength & 160 offices all over India has daily
newspapers 2 stand-alone weeklies & 1 magazine in 10 states of the country. Dainik Bhaskar
is the largest read newspaper group in India with 2.97 crore readers. 28% potential of India
with Bhaskar markets. The company board consists of Mr. Ramesh Chandra Agarwal,
Chairman, Mr.Sudhir Agarwal, Managing Director, and Mr. Girish Agarwal & Mr. Pawan
Agarwal, Directors.
1.2 Company Philosophy
The strength of the company lay in its unbiased reporting and meeting the local news needs.
To achieve this Dainik Bhaskar had set up editorial teams wherever their newspaper was
printed. Dainik Bhaskar did not owe allegiance to any political party. Their only commitment
was to the readers of the country. According to Sudhir Agarwal, understanding the customer
needs was the most important aspect of Bhaskar's operations. The company believed in creating
a brand that minimised the role of the middlemen.
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2. Challenges faced by Dainik Bhaskar in Jaipur
While expanding their market out of Madhya Pradesh, Dainik Bhaskar had to face a numerous
of challenges and they tackled those challenges through whatever they have learnt while
nurturing themselves in Madhya Pradesh and becoming a dominant player over there.
2.1 Entry into new market Jaipur
There was an already existing marketing leader in Jaipur, Rajasthan Patrika, was a 42-year old
newspaper.
2.2 Presence of an undisputed market leader
Rajasthan Patrika had its monopoly over the market. It dominated the market with more than
65% share of total newspaper per circulation. It acquired about 80% of market share in Jaipur.
Growing at around 35,000 copies per annum.
2.3 Strong hold on the distribution channel
Rajasthan Patrika had a firm hold on the distribution channel. It contributed nearly 85% of the
channel’s business. It took pains in building its relationship with hawkers, distributors and
advertising agencies. Setting up a distribution channel was another challenge for Dainik
Bhaskar.
2.4 Habit-Based Purchasing
Since people in Jaipur were so accustomed of reading Rajasthan Patrika, it was a challenge for
Dainik Bhaskar to switch people’s habit from Patrika to their very own newspaper.
Among these, we consider presence of an undefeated market leader i.e. Rajasthan Patrika
as the toughest challenged which was tackled by Dainik Bhaskar.
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3. PEST Analysis of Dainik Bhaskar and Rajasthan Patrika
DAINIK BHASKAR RAJASTHAN PATRIKA
Political:
They had a strong leadership in MP.
Didn’t had any political support in
Jaipur.
Economical:
After becoming the newspaper leader
in Madhya Pradesh, Dainik Bhaskar
wanted to expand their market share
in Jaipur.
They hold strong leadership in
Madhya Pradesh by acquiring market
share in MP.
The Bhaskar Group was about Rs.
400 million conglomerate with
diversi-fied interests in cement, oil
extraction, hospitality, travel agency
and textiles.
Social:
It was totally new in the market of
Jaipur.
People were totally unaware of their
achievements in Madhya Pradesh.
It is unaware of the local market, how
it works.
Political:
It was the undisputed and undefeated
newspaper in Jaipur.
They had strong hold over
advertisements, hence, had a political
edge over other competitors.
Economical:
Being the undefeated leading
newspaper in Jaipur, the Rajasthan
Patrika was holding around 80% of
the market share in Jaipur.
Since, it didn’t have any strong
contender to compete with, they had
a monopoly rule over the market.
Social:
People were habituated of reading
Rajasthan Patrika as it has been in
Jaipur for long years.
Rajasthan Patrika is a familiar
newspaper in Jaipur.
It has a strong hold over the local
hawkers, distributors and advertisers.
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They had an earlier experience on
how to approach an entire new
market (Indore).
Technical:
Highly equipped with technologies.
Dainik Bhaskar had also used
technology to enhance the image of
the paper.
It was the first Hindi newspaper to
offer high quality colour supplements
to the readers.
It employed the “Harris Heat Set”, a
process for high quality colour
printing.
Being the leading newspaper in
Jaipur, it has a good connection with
the people of Jaipur.
Technical:
They were not that advanced with
technologies.
Used conventional techniques for
newspaper printing.
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4. Consumer Segments
Dainik Bhaskar carried articles of interest to all age groups and constantly sought to define new
niches to be reached. In its pursuit of increased readership, it had continually identified the
needs of readers and brought about required changes in its offerings. It aimed to offer a good
mix of national, international, regional and local news. It had always made an effort to present
international news in a way that local readers could relate to, rather than the usual direct
translation into Hindi.
4.1 Adults:
Dainik Bhaskar was very much clear about any happenings going around the globe and
provided unbiased news to the people. No matter how much cost they had to bear, they were
vested in seeking and providing the reality to the people. Especially, adults were acknowledged
under this.
4.2 Kids:
Dainik Bhaskar knew that the prevailing market leaders and opponent firms are providing news
and content which are focusing on a particular section of the society. They made an effort to
include some sections which can be read by kids. Puzzles, Short Stories and many more.
4.3 Illiterate:
All the pages of Dainik Bhaskar’s newspaper was coloured and it kept appealing people who
were not literate enough to read and understand difficult terms. It was the first Hindi newspaper
to offer high quality colour supplements to the readers.
4.4 Literate:
It believed that although the electronic medium whetted people’s appetite for information, only
a newspaper could satisfy the eagerness for detail. It aimed to offer a good mix of national,
international, regional and local news.
4.5 Locals:
It had always made an effort to present international news in a way that local readers could
relate to, rather than the usual direct translation into Hindi. Dainik Bhaskar had always reflected
the regional aspirations and the popular mood.
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5. Actions to the Main Problem
5.1 Extensive Research of the market Jaipur
Dainik Bhaskar’s objective had always been to build a strong and loyal base of readers. The
focus of the organisation was from mere circulation to individual readers. “Knowing who your
readers are and what they want is the key to building loyalty. A survey was conducted to create
a newspaper ‘for the people, of the people and by the people’. The research would also help in
creating awareness, establish a brand image and develop better understanding of the readers.
PROS:
Survey helped Dainik Bhaskar to design the requisite newspaper for the people.
It helped them devise the pricing strategy.
It was also decided that the newspaper would be printed in colour on weekdays too to
attract people.
Encouraged by the findings of the survey, Dainik Bhaskar had set a target of
subscribers.
CONS:
Conducting survey was expensive, over a sample size of about 175,000 representing
nearly 50% of households.
Designing a whole new Jaipur edition was a tedious task to accomplish.
Coloured printing for weekdays too was a burden on the company.
5.2 Pre-Marketing Strategy
Before actually publishing their newspaper, Dainik Bhaskar knew that a new approach has to
be adopted to defeat the leading newspaper, Rajasthan Patrika. “The traditional way has always
been to produce a good paper and wait for the readers to come to you. But in order to be
successful, we had to pre-market the paper and get con-firmed paid-up circulation. For the first
time, in the history of newspaper marketing, the readers would know that a new newspaper
was being published and they would tell the hawkers to deliver the paper to their door-steps on
a given date.
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PROS:
The marketing gained a higher share of mind of people towards the upcoming
newspaper.
It created awareness as well as curiosity in the minds of people simultaneously.
Efforts succeeded in winning the support of both advertisers and media planners.
CONS:
Hoardings, free-standing inserts, TV, participation in various festivals costed huge
amount of money.
Whether pre-marketing would be able to achieve the expected target or not was not
known.
5.3 Guarantee Bond Strategy
Dainik Bhaskar’s inaugural issue was priced 33% lower than Rajasthan Patrika. The readers
were offered an invitation price of Rs. 1.50 against the regular cover price of Rs. 2.00. Readers
were approached for subscriptions and were assured that the price would be held for at least
six months through the ‘Bachat (Guarantee) Bond’.
PROS:
Around 80,000 subscriptions were made within 15 days of the order booking.
Guarantee Bond garnered many subscriptions.
Jaipur gave huge and positive response over Dainik Bhaskar’s devised schemes.
CONS:
Prices were made drastically low.
Company has to bear these prices over 6 months as stated under ‘Guarantee Bond’.
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6. Alternatives to the Main Problem
6.1 Freemium Policy
Under this policy, Dainik Bhaskar would provide free newspapers for a whole week whoever
subscribes to their newspaper for six months or more. This freemium policy will guarantee
huge subscribers for the first week of the publishing. Marking an entry with such a scheme
would totally be a game changer.
PROS:
It would create an opportunity for Dainik Bhaskar to turn these subscribers into
potential and loyal customers.
It would give Dainik a different position in the market of Jaipur.
CONS:
Free newspapers for a whole week would be costly.
People might lose interest within one free week.
6.2 Offers to people strategy
Entering into a new market which already has a newspaper leader is not an easy task. Gifts,
offers and vouchers have always been eye catching for the people. In the city like Jaipur, people
could have been addressed with gifts and vouchers whoever takes the newspaper subscription.
PROS:
Offers would attract more subscribers for Dainik Bhaskar’s newspaper.
It would create awareness of Dainik Bhaskar in the market of Jaipur.
CONS:
Offers would cost money.
It’s not sure whether the gifts/offers provided to the people would be appropriate or not
and would be appreciated or not.
Among the strategies and courses of action which we discussed above, we consider Extensive
Research of the market Jaipur as the best strategy for capturing a new market.
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7. 4Ps for the Recommended Strategy
PRICE PLACE
Due to an exhaustive survey, Dainik
Bhaskar was aware of pricing
strategy.
Dainik Bhaskar’s inaugural issue was
priced 33% lower than Rajasthan
Patrika.
They even devised a Guarantee Bond
which states that the price would
remain the same for six months.
Hawkers will provide subscriptions
at people’s doorstep.
Shops
PROMOTION PRODUCT
Guarantee Bond
Coloured Printing for the whole
week.
Lower Priced newspaper.
Unbiased newspaper
Coloured one
Cheap with quality
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8. Conclusion
Dainik Bhaskar has created a great impact over the newspaper industry. It started in Bhopal
with just 4-page newspaper and grew like anything. The journey of being the fastest growing
newspaper in the country was a result of series of tremendous effort and experiences they put
in. They cracked Indore expanding their boundary even being totally new to the markets of
Indore. They pulled out strategies and offers step-by-step which led them to success over
Indore. But still they were conquering markets of Madhya Pradesh where they were already
known. As they grew and conquered Madhya Pradesh, becoming the leader over there, they
aspired to conquer other markets which weren’t easy nutshells to crack. Jaipur in Rajasthan
was the market they targeted and created a success story over there within just four months of
publishing their newspapers, they defeated the newspaper leader in Jaipur, Rajasthan Patrika.
It happened with whatever experiences they cultivated while conquering various markets.