MBA Organizational study

Organization Study on Kerala Kaumudi (P) Ltd

INTRODUCTION
1.1 GENERAL INTRODUCTION
The press, as a technological invention or as a political medium, plays a major role in
the definition of the reality for the individual as well as for a nation; The newspaper
press rises to a powerful institution in the development of civilization; it is the
medium for exchange of ideas and it facilitates the time-and space-binding activities
of the society. The first printing press was imported into Bombay as early as 1670 by
the Parsi business man, Bhimjee Parikh, it has more than a 100 years before the first
newspaper was printed.

India has emerged as the second largest market for newspapers in the world
with a daily circulation of 88.9 million copies.

Kerala has a rate of newspaper readership that is among the highest in the
world and plenty of never-ending political arguments. In Kerala, there are
approximately 1576 newspapers in circulation! Among these, only a few newspapers
are widely circulated with a good number of readers. The major newspapers in Kerala
include Malayala Manorama, Mathrubhumi, Kerala Kaumudi and Deshabhimani.

This organization study has been conducted in Kerala Kaumudi (P) Ltd.
Kerala Kaumudi, the greatest growing Malayalam daily, owes its genesis in 1911, to
the visionary, Shri C V Kunjuraman. Kerala Kaumudi became a daily news paper on
1st November 1940. From its humble beginning as a single edition news paper of
Thiruvananthapuram, Kerala Kaumudi has spread out to cover other parts of the state
and the country with editions from Kollam, Alappuzha, Kottayam, Cochin, Thrissur,
Kozhikodu, Kannur, Bangalore and Gulf.

1.2 STATEMENT OF THE PROBLEM
Kerala Kaumui is a Malayalam daily which provides truthful news. Kerala Kaumudi
(P) Ltd consists of all functional departments and thereby gets an idea about all
departments. So an organization study was conducted at Kerala Kaumudi (P) Ltd
with an aim of getting awareness of their functioning and final procedures of that
organization.

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1.3 SCOPE OF THE STUDY

The ‘Organization Study on at Kerala Kaumudi (P) Ltd’ offers great scope to Kerala
Kaumudi (P) Ltd in some areas where they are considered weak. The scope of the
study also extends to other media companies and future researchers. The study helps
in bridging gap between the theory and practice of management.

1.4 OBJECTIVES OF THE STUDY

1. To identify the functions, duties, responsibilities and maintenance of each
departments.

2. To verify how far the organization structure is successful in accomplishing
the objectives of Kerala Kaumudi (P) Ltd

3. To determine the factors that influence readers.

4. To suggest measurers to improve the circulation of Kerala Kaumudi daily.

5. To know news preference.

6. To know the opinion of readers about various reports.

7. To analyze the buyer’s opinion about the price and quality of the particulars
product.

1.5 METHODOLOGY OF THE STUDY

The organization study at Kerala Kaumudi (P) Ltd is descriptive in nature. For
the purpose of this study data were collected from primary and secondary sources.

The primary sources include observation and structured or semi structured
interviews with the department heads. Secondary sources include internal records
which comprise company records, newspaper articles, cyber space information and all
reference material available during the period of study.

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1.6 LIMITATIONS OF THE STUDY

1. An in-depth study was not possible because the time limit was the main
constraint.

2. Since Kerala Kaumudi (P) Ltd, is a private sector company, access to some
important information was restricted. This made some difficulties during the
time of analysis.

3. Financial constrains were one of the limitations.

4. Some of the respondents are not ready to give opinion.

1.7 CHAPTERISATION

Chapter I gives an introduction to the study. This chapter includes statement
of the problem, scope and objectives of the study, research methodology and
limitations of the study.
Chapter II deals with the profile of News paper industry.
Chapter III presents the history and profile of Kerala Kaumudi (P) Ltd-
where this work has been carried out and the product line of the company.
Chapter IV outlines the organization structure and overall administration of
the company. The purpose of this chapter is to give a good picture of the company
bureaucracy.
Chapter V deals with the departmental details of Kerala Kaumudi (P) Ltd.
This chapter discusses the structure, Duties and responsibilities of each department of
Kerala Kaumudi (P) Ltd.
Chapter VI presents SWOT (Strength-Weaknesses-Opportunities-Threat)
analysis of the company.
Chapter VII deals with the Findings, Conclusion and suggestions of the
study.

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2.1 INDUSTRY PROFILE

When newspapers and magazines are combined, print is the world's largest
advertising medium. An increase in the newspaper sale has been witnessed in almost
all continents including Asia, Europe, Africa and South America except North
America, which registered a decline in the sales. Global newspaper sales rose 2.3%
in 2006, India grew 13 %. Advertising revenues in paid dailies had been found up
3.77 per cent. China, Japan and India account for 60 of the world’s 100 best-selling
dailies while the five largest markets for newspapers are China, India, Japan, the US
and Germany.

2.1.1 INDIAN NEWSPAPER BUSINESS

In India, over 150 million individuals read a newspaper each day. One factor that has
resulted in making the print media ever-more popular is the fact that India is a country
of many diverse languages and more than a thousand different dialects. In a country
of 1.1 billion, there is more room for the newspaper industry to grow, as the rural
areas are largely untapped.

To propel the newspaper growth in India, 26 per cent foreign direct investment
allowed in print media in 2002. Due to a hike in FDI limits in the newspaper
publishing sector a lot more action is likely to be seen from the global players wanting
to invest in this sector.

2.1.2 INDIAN NEWSPAPER SOCIETY

The Indian and Eastern Newspaper Society, now renamed as The Indian Newspaper
Society, enjoys a unique position as the accredited spokesman of the newspaper
industry. From newsprint to advertising, from licenses for machinery to freedom of
the Press, INS today is involved in many spheres of activities.

2.1.3 REGISTRAR OF NEWSPAPERS FOR INDIA

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The Office of the Registrar of Newspapers for India, more popularly known as RNI
came into being on 1st July, 1956, on the recommendation of the First Press
Commission in 1953 and by amending the Press and Registration of Books Act 1867.
The Office of the Registrar of Newspapers for India is headquartered in New Delhi,
and has three regional offices at Calcutta, Mumbai and Chennai to cater to the needs
of publishers in all corners of the country.

RNI compiles and maintains a Register of Newspapers containing particulars about
all the newspapers published. It informs the District Magistrates about availability of
titles to intending publishers for filing declaration and issues Certificate of
Registration to the newspaper. It ensures that newspapers are published in accordance
with the provisions of the Press and Registration of Books Act 1867.

Printing and publishing of newspapers and periodicals within India are governed
by the Press and Registration of Books Act, 1867 and the Registration of Newspapers
(Central) Rules, 1956. According to the Act, no newspaper or periodical should bear
a title which is the same or similar to any other newspaper or periodical already being
published, either in the same language or in the same State, unless the latter is also
owned by the same person. In order to ensure compliance of this condition, the
Government of India has appointed the Registrar of Newspapers, also called the Press
Registrar, who maintains a register of newspapers and periodicals published in India.
After verification Press Registrar allots a RNI Number. After allotment of this
number only the Publishers get the authority to publish the paper. [This RNI Number
must be shown in every newspaper].

Table 2.1 The Press In India In 2005-06: at a glance

Periodicity Number Circulation
Dailies 2,130 8,88,63,048

Tri/Bi-Weeklies 39 5,66,198

Weeklies 3,428 5,05,80,648

Fortnightlies 955 1,23,09,948

Monthlies 1,471 2,11,36,710

Quarterlies 219 15,52,138

Annuals 49 29,86,256

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Others 221 27,43,665

TOTAL 8,512 18,07,38,611

‘Miscellaneous’ 126 71,69,952
Publications

2.1.4 AUDIT BUREAU OF CIRCULATION
The ABC founded in 1948 is a not for profit, voluntary organization consisting of
Publishers, Advertisers and Advertising Agencies. It has done pioneering work in
developing audit procedures to verify the circulation data published by those
newspapers and periodicals which have earned the right to display its emblem. The
Bureau issues ABC certificates every six months to those publishers whose
circulation figures confirm to the rules and regulations as set out by the Bureau.

2.1.5 NATIONAL READERSHIP STUDIES COUNCIL
It is constituted by Advertising Agencies Association of India, Audit Bureau of
Circulations & Indian Newspaper Society. The National Readership Study 2006
(NRS 2006) in India is the largest survey of its kind in the world, with a sample size
of 2,84,373 house-to-house interviews to measure the media exposure and consumer
product penetration in both urban and rural India – and of course the estimated
readership of publications. The study covers 535 publications of which 230 are dailies
and 305 are magazines.

2.1.6 NEWS PAPER BUSINESS IN KERALA

Kerala has a rate of newspaper readership that is among the highest in the world. In
Kerala, there are approximately 1576 newspapers in circulation! Among these, only a
few newspapers are widely circulated with a good number of readers.

2.1.7 LIST OF LEADING MALAYALAM LANGUAGE
NEWSPAPERS

Malayala Manorama first appeared on 14th March 1890, as a weekly, currently has
a readership of over 15 million, with a circulation base of over 7.4 million
copies.Manorama is Kerala's largest selling and most widely read newspaper.

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Mathrubhumi: The first copy of Mathrubhumi went to press on 18th of March 1923.
Mathrubhumi today is the second most circulated newspaper in Kerala. It is published
from Calicut, Thiruvananthapuram, Kottayam, Ernakulam, Thrissur, Kannur,
Palakkad, Malappuram and Kollam besides from Chennnai, Bangalore, Mumbai and
New Delhi It has a circulation of over 13 lakhs and its readership is around 75 lakhs.

Desabhimani is a Malayalam newspaper run by Communist Party of India (Marxist).
Started as a weekly in 1942 and converted to a daily in 1946. Deshabhimani now has
six different editions: Kozhikode, Kochi, Thiruvananthapuram, Kannur, Kottayam
and Trichur.

Kerala Kaumudi is a popular Malayalam newspaper, founded in 1911. Published
from Thiruvananthapuram, Kollam, Alappuzha, Kochi, Kozhikode, Kannur in Kerala
and Bangalore, Kerala Kaumudi is the fourth most circulated Malayalam daily. The
paper has online editions in Malayalam and English that are updated twice daily.

Deepika is one of the oldest newspapers published in India.. The first issue came out
on 1887 April 15. Deepika publishes editions from Kottayam, Kochi, Kannur,
Thrissur, Thiruvananthapuram and Kozhikode

Other dailies in circulation include Madhyamam, Mangalam, Janayugam,
Varthamanam,.

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3.1 COMPANY PROFILE
Kerala Kaumudi, the fastest growing Malayalam daily, owes its genesis in 1911, to
the visionary, Shri C V Kunjuraman, a man of letters and a teacher. He was also a
reversed intellectual, social reformist and a true revolutionary in both letter and sprit.
Under his inspiring leadership, Kerala Kaumudi has set high standards in journalism.

3.1.1 INSPIRING LEADERSHIP
Kerala Kaumudi shot into limelight following the Quit India Movement. The term
“Kaumudi” implies ‘moonlight’ that blossoms the water lily. In other words, “Kerala
Kaumudi” enlightens the entire keralites. Truly speaking, Kerala Kaumudi
spearheaded with a missionary zeal to enlighten the underprivileged and
downtrodden masses in the society. Shri K Sukumaran became the embodiment of
Kaumudi-the full moon in enlightening the masses in the moon balanced green of
Kerala. This is an apt interpretation of Kerala Kaumudi.

Because of its fearless unbiased editorials and relentless dedication, the term
“Kerala Kaumudi” becomes immortal and permanently etched in the minds of
common man. And it is precisely these qualities that prompted the nation to confer on
the founder Editor P Sukumaran, one of its highest civilian honours, the prestigious
Padmabhushan. The Kerala Kaumudi legacy has been its constant pursuit for truth
and unparalleled excellence in Journalism.

Kerala Kaumudi became a daily news paper on 1 st November 1940. From its
humble beginning as a single edition news paper of Thiruvananthapuram, Kerala
Kaumudi has spread out to cover other parts of the state and the country with editions
from Kollam, Alappuzha, Kottayam, Cochin, Thrissur, Kozhikodu, Kannur,
Bangalore and Gulf. Now Kerala Kaumudi is celebrating its 96 years of publication

3.1.2 PIONEER
Kerala Kaumudi is the first newspaper to introduce ‘Investigative Journalism’ under
the dynamic leadership of its Founder-editor, Padmabhushan K Sukumaran. It was the
first among the newspapers in Kerala to introduce new technologies like photo type

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setting, cable transmission and computerized accounting. It was also one among the
first few news papers to launch an internet edition.
3..1.3 REGISTERED OFFICE

The registered office of the company named “Kaumudi Buildings” is located
at “Pettah”, a developed part in Thiruvananthapuram city. It is the place where the
administration of the company is being carried out.

3.1.4 VISION AND MISSION
Shri C V Kunjuraman started Kerala Kaumudi as a weekly in 1911 with a
vision to spread over the principles of Sreenarayana Guru. Kerala Kaumudi
spearheaded with a missionary zeal to enlighten the underprivileged and downtrodden
masses in the society. Kerala Kaumudi has always worked for the development of
society with its Forth right news and fearless views. “Stress on credibility and
unbiased reporting” which is the motto of the Kerala Kaumudi since 1911.

3..1.5 OBJECTIVES OF THE COMPANY
1. To carry on business of proprietors and publishers of news paper, journals,
magazines, periodicals, books and pamphlets and other literary works and
undertakings.

2. To understand and execute any trusts or to act as trustees or to do any other
such act as may seen desirable or beneficial whether with or without
consideration.

3. To establish, maintain and promote any agency or branch offices of the
company in India or elsewhere and to regulate the same or discontinue the
same.

4. To promote any other company or companies for the purpose of acquiring any
privilege, concession, property or assets of any person, firm or undertakings or
other rights and liabilities of such other company or companies or concerns or
business as the case may be as conductive to or beneficial for the purpose of
the company.

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3.1.6 CIRCULATION OF THE READERSHIP
Total circulation of Kerala Kaumudi daily comes around 1.5 lakhs and flash
around 2.5 lakhs. Today Kerala Kaumudi has 2.5 million strong readerships.
3.1.7 SHARE CAPITAL
The authorized capital of the Company is Rs 30,00,000 (Thirty Lakhs) divided
into 3000 Equity shares of Rs.1000 each. Shares shall be under the control of the
Directors who may issue, allot or dispose of same to such persons and for such
consideration and upon such terms and conditions as they may think fit.
The company may form time to time by ordinary resolution increase its share
capital by such amount as it thinks expedient by issuing new shares of such amounts
as it thinks fit.

3.1.8 GROWTH AND PROFITABILITY
The Kerala Kaumudi has been working in profit ever since in its establishment.
Profits are essential for the survival of the business. Thy cover the risks and cost of
staying in business. Profits maintain the revenue generating capacity of the business.

3.1.9 NEWSPAPER REVENUE
Newspaper revenue is the income from the customer’s payment for the newspapers.
Trend of newspaper revenue for a period of five years (2001-05) is depicted in the
following chart.

Chart No.3.1: Trend of newspaper sales for the period from 2001-05

1200
1177
1180
sales (in lakhs)

1160
1140
1122.6 1124.2 1122.5 1114.1 sales
1120
1100
1080
2000-'01 2001-'02 2002-'03 2003-'04 2004-'05

year

Source: Annual Financial Statements of Kerala Kaumudi (P) Ltd.

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3.1.10 ADVERTISEMENT REVENUE
Most newspapers make nearly all their money from advertising; the income from the
customer’s payment is small in comparison. For that reason, newspapers are
inexpensive to buy.
Advertisement revenue of Kerala Kaumudi (P) Ltd for a period of five years
(2001-05) is shown in the following chart.
Chart No.3.2: Trend of advertisement income for a period from 2001-05

1000 939
854 848 893
745
advertsement (in

800
600
lakhs)

400 advetisement income

200
0
2000-'01 2001-'02 2002-'03 2003-'04 2004-'05
year

Source: Annual Financial Statements of Kerala Kaumudi (P) Ltd

3.1.11 PROFIT
Profit is the difference between total revenues and total expenses over a period of
time. In the following chart-trend of profit chart in the year 2002-2003, irrespective
of the comparatively low sales and advertisement income, the company made a high
profit. This was mainly due to a considerable decrease in the expenditure like a
sudden decrease in the cost of News print.

Chart No.3.3: Trend of profits for the period from 2001-05

120
106.3
profots (in lakhs)

100
80
60
44.6 Profits
40 27.7
17.8 13.7
20
0
2000-'01 2001-'02 2002-'03 2003-'04 2004-'05
year

Source: Annual Financial Statements of Kerala Kaumudi (P) Ltd

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Table 3.1 Net profit Ratio for the 5 years from 2001-2005

Sl.No Year Net Profit (%)
1 2000-2001 3.37
2 2001-2002 2.74
3 2002-2003 3.90
4 2003-2004 4.53
5 2004-2005 4.62

Net profit ratio is used to measure the overall profitability and hence it is very
useful to the proprietors of the company. It is an index of efficiency and profitability
of the business. Higher the ratio better is the operational efficiency of the concern.

3.1.12 HUMAN RESOURCE
The manpower details of Kerala Kaumudi (P) Ltd

Table 3.2: Manpower position of Kerala Kaumudi (P) Ltd
Editorial 162
Office 245
Press 84
trainees 11
Total 502

3.1.13 RAW MATERIALS
Materials constitute a significant part of cost of products. The important raw
materials needed for the company are
1. News print
2. Ink
3. Plate
News print is allocated based on requirements of newspaper by Registrar of
News papers of India, New Delhi and supplied mainly by STC of India. The STC
supplies the imported news print Canadian, Russian etc.

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3.1.14 SISTER CONCERNS
1. Kalakaumudi Printers and Publications
2. Ravi Printers and Publications Pvt Ltd
3. Kaumudi Investment Pvt Ltd

3.1.15 COMPETITORS
1. Malayala Manorama
2. Mathrubhumi
3. Deshabhimani
4. Mangalam
5. Deepika

3.1.16 SOCIAL RESPONSIBILITY
As far as print media are concerned, the objective of profit maximization comes after
the Social objective. The specialty of Kerala Kaumudi Products is that they are
offered at fair prices, which is affordable to the common man. Their contribution
towards the development of local community life is a notable one and it is working in
public interest. Kerala Kaumudi (P) Ltd has brought many sensitive news like
Palmoil case, SSLC question paper leak out etc. Kerala Kaumudi has been obsessed
with truth over 96 years. Kerala Kaumudi has always worked for the development of
society with Forth right news and fearless views. “Stresses on credibility and
unbiased reporting”, which is the motto of the Kerala Kaumudi since 1911.

Kerala Kaumudi‘s crusading journalism has made a class of its own in the lives
of Malayalees. The newspaper’s constant effort to safeguard the policy of communal
reservation in Kerala is a shinning example Kerala Kaumudi’s strong commitment to
the welfare of the state. Kerala Kaumudi is the mastermind behind innumerable scoop
stories, which demolished the ivory towers of many unparallel “icons” of Kerala
politics.

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3.1.17 FUTURE PLANS OF THE COMPANY
The company has many plans for its future. More editions are to be launched in near
future as part of Kerala Kaumudi’s ambitious plan to expand its coverage to more
areas.
The company wants to impart some new equipments and machineries for
speedy and smooth production. The company needs more efficient technicians and to
compete with others. The company wants to conduct training programmes for
employees. The company wishes to provide more effective and efficient labour
welfare facilities to its employees. It provides many employment opportunities.

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3.2 PRODUCT PROFILE

To keep pace with the evolving needs and tastes of Keralites, Kerala Kaumudi
too has grown through its different publications.

3.2.1 PRODUCT LINE
I Kerala Kaumudi publications
1. Kerala Kaumudi daily
2. Kerala Kaumudi Flash
3. Kerala Kaumudi weekly
4. Kerala Kaumudi Panchangam (Big Almanac)
5. Kerala Kaumudi Calendar
6. Kerala Kaumudi Onam special
7. Kerala Kaumudi Sabarimala Special
The latest additions are:
8. Sree Narayana Guru Directory
9. Career Directory (yet to publish)

II Kerala Kaumudi Communications
Kerala Kaumudi Communications focuses on audio entertainment creations. The
Kerala Kaumudi “GEETH” series compiles melodious mixes of old and new
numbers sung by all-time favorite Malayalam singers. A group of musical experts
carefully select the combinations to ensure that each release is sensatised to suit
the tastes of a unique segment.

III Kerala Kaumudi Events wing
A team of eminent professional organizes, conducts, and concludes all kinds of
promotional events with a touch of class. This wing also organizes variety of
shows, shoots, arrange sponsors and broadcasts stage events on leading
Malayalam channels worldwide.

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IV Online publications
Kerala Kaumudi leaped into internet 1997 in their business in online publications are
a natural growth into cyber age of Kerala Kaumudi. Kerala Kaumudi internet division
or cyber studio has emerged as one of the leading web publishers of Kerala. 24 hour
data updation is doing here. It is the chief source of information for NRIs from
Kerala.

Kaumudi sites growth and success spring from their conscious awareness of the huge
expatriate malayalee population and their abiding interest in their home land.

1. www.keralakaumudi.com {Malayalam Daily)
2. www.kaumudi.com (English Daily)
3. www.kaumudijalakam.com (bilingual news magazine)
4. www.sundaykaumudi.com (web tabloid).
5. www.kaumudiclassifieds.net
6. www.kaumudiusa.com (the newest addition to Kerala Kaumudi galaxy of
websites)-bilingual multicultural site

Kaumudiusa.com is an exclusive bilingual North American Malayali targeted site,
kaumudi jalakam, an innovative Malayalam net weekly and Kaumudi online, a net-
only English daily, have proved to be big draws with expatriate keralites.

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CHART NO.4.1

Organization Chart of Kerala Kaumudi (P) Ltd

Chairman/ Editor in Chief

Board of Directors

Managing Director or Joint Managing Director

Chief General Manager Company secretary Managing Editor

General Manager
Editorial
Department

Corporate Business Units
Administration Administration

Associate Editor
Unit Chief

Corporate Heads Chief News Editor
Unit Manager

General Editor

Human Resource Management

Production Head

AGM (Marketing)

Chief Manager (Finance & Accounts)

Chief Manager (Special Projects)

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The above organization chart provides a bird’s eye-view of relationships between
different departments or divisions of Kerala Kaumudi (P) Ltd. As far as Kerala
Kaumudi (P) Ltd is concerned Chairman/ Managing Director is at the top of the
Organization structure. Mr M S Mani, is the Chairman of the company. He also holds
the position of the Chief Editor of the company.

Kerala Kaumudi (P) Ltd is a private sector company which is registered under
Indian Companies Act, 1913.

The functional departments are Human Resource Management, Production
department, Marketing Department, Finance and Accounts Department and Special
Projects. Assistant General Manager (Marketing) controls Space Marketing
Department, New Product Marketing department and Debtors Collection
Management Department.

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4.2 COMPANY ADMINISTRATION

Kerala Kaumudi (P) Ltd carries out its functions and manages its affairs through the
following managerial personnel.

1. Board of Directors and Managing Director
2. Chief General Manager
3. General Manager
4. Company Secretary and
5. Unit Chief

4.2.1 POWERS AND DUTIES OF DIRECTORS

The business of the company shall be managed by the directors who may pay
all expenses incurred in getting up and registering the company and may exercise all
such powers of the company as are not by the Indian Companies Act 1913. The
directors shall duly complied with the provisions of the Indian Companies Act, 1913
and to keeping a Register of Directors and to sending to the Registrar an annual list of
members, notice of any consolidation or increase of share capital or conversion of
shares into stock and copies of special resolutions.

4.2.2 THE BOARD HAS THE FOLLOWING POWERS
1. To purchase or otherwise acquire for the company any property, rights or
privileges which the company is authorized to acquire
2. To secure the fulfillment of any contract or engagements entered into by the
company
3. To appoint and at their discretion remove or suspend such managers,
secretaries, officers, clerks, agents and servants for permanents, temporary or
special services as they may from time to time think fit.
4. To appoint any person(s) to accept and hold in trust for the company any
property belonging to the company

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5. To draw, accept, endorse and negotiate all such cheques, bills of exchange,
hundies, drafts, promissory notes and government and other securities in
connection with the business.
6. From time to time to make, vary and repeal bye-laws for the regulation of the
business of the company, its offices and servants.
7. To commence and carry on or defend, abandon or compromise any legal
proceedings whatsoever including proceedings in insolvency on behalf of the
company or to refer any claims or demands by or against the company to
arbitration and to observe and perform the awards and to accept compositions
from or give time to any debtor or contributory owing money or alleged to owe
money to the company
8. To give receipts, releases and discharges on behalf of the company
9. To invest and deal with any moneys of the company not immediately required
for the purpose of its business in such manner as they think fit.

The vacancy occurring in the Board of Directors shall be filled up by the Board of
Director who may fix the period for which such Director shall hold office.

4.2.3 FUNCTIONS OF GENERAL MANAGER

1. Heads the administration, marketing and circulation department.
2. He is directly accountable to managing Director
3. Create better inter department and inter unit coordination to facilitate smooth
and efficient functioning
4. Streamline and monitor the activities of the circulation and marketing
department.
5. Formulate a financial budget and planning in tune with the growth and
stability of the organization.
6. Taking into consideration the strengths and weakness of the organization,
conceive innovative and creative strategies to cope with the highly competitive
market condition prevailing now.
7. Advise the top management on appropriate steps to be taken to make this a
better organization so that each and every employee feels he is a valuable

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member in the organization and develop better a team concept for enabling
him to contribute his best.

4.2.4 COMPANY SECRETARY

Company secretary is an officer of the company, who has certain responsibilities
under the law and under any duties passed to him by the directors. The role of
company secretary is administrative rather than managerial. The secretary is an
officer of the company and as such has the duty of ensuring that the affairs of the
company are conducted in accordance with:

1. The Companies Act
2. The Companies Articles and

3. Generally in accordance with the law

4.2.4.1 FUNCTIONS OF COMPANY SECRETARY
1. The company Secretary performs all duties that he is required to perform
under the Companies Act.
2. He supplies required data to the company’s advocates in connection with legal
matters.
3. He is directly accountable to Managing Director.

4.2.4.2 POWERS OF THE COMPANY SECRETARY

The company secretary could be described as the Chief Administrative Officer of the
Company and as such has the authority to enter into contracts on behalf of the
Company concerning administrative matters.

4.2.4.3 DUTIES OF THE COMPANY SECRETARY

The primary duties of a Secretary are:

1. To attend all meetings and write up minutes of such meetings
2. To ensure proper filing of documents with the Registrar or the Court.

3. Issue notices to the shareholders and others.

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4. Deal with the shareholders’ queries regarding transfers and other matters
relating the register of members

5. Be responsible for the books of the company such as register for members and
directors and for all necessary returns to the company house

4.2.5 UNIT CHIEF
From its beginning as a single edition news paper of Thiruvananthapuram, Kerala
Kaumudi has spread out to cover other parts of the state and the country with editions
from Kollam, Alappuzha, Kottayam, Cochin, Thrissur, Kozhikodu, Kannur,
Bangalore and Gulf. Unit chief is responsible for the administration of all these units.

4.2.5.1 FUNCTIONS OF UNIT CHIEF
1. Head of unit task force
2. Formulates the task force decisions
3. Coordinates the activities of each unit

ACTIVITIES OF TASK FORCE
► It is a body that comprises heads of all departments in each unit.

► It is for analyzing individual unit performance.

► Task force is for monitoring the activities of each department.

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5.1 EDITORIAL DEPARTMENT
The editorial department is responsible for pretty much everything that appears in a
publication that isn't advertising. Its main goal is to report the news accurately and in
a reader-friendly way. The editorial department develops, writes, edits and oversees
all the editorial content published in Kerala Kaumudi daily, flash and magazine. The
person responsible for content is usually referred to as the ‘editor’. All articles
submitted for publication are reviewed by the editors to ensure they meet their
professional standards. They ensure that the articles and information published are
original and newsworthy.
Newspapers often refine distribution of ads and news through zoning and
editioning. Zoning occurs when advertising and editorial content change to reflect the
location to which the product is delivered. The editorial content often may change
merely to reflect changes in advertising — the quantity and layout of which affects
the space available for editorial — or may contain region-specific news. As the
content can vary widely, zoned editions are often produced in parallel. Editioning
occurs in the main sections as news is updated throughout the night. The advertising
is usually the same in each edition (with the exception section of local news that
undergoes advertising changes). In the case of news paper 60% of space in it is meant
for news and 40% of space is meant for advertisement. The editorial department then
writes (or cuts) more copy to fit within that ratio.

5.1.1 EDITORIAL POLICY OF KERALA KAUMUDI

“Stress on credibility and unbiased reporting” is the motto of the Kerala
Kaumudi since 1911.

5.1.2 ORGANIZATION STRUCTURE OF EDITORIAL
DEPARTMENT

Company has an efficient news team. And its wide network is spread through
out the country. It has 9 editions spreads over Kerala, Bangalore. The newspaper
stresses on credibility and that is the only reason why Kaumudi is still a major player
in the market.

23


The Editorial Department is headed by the Chief Editor. Under him come
Managing Editor, Executive Editor, Associate Editor, Deputy Editor and Chief News
Editor. Under them come the News Editors, Deputy News Editor, Chief Sub Editor,
and Senior Sub Editors and Sub Editors.

Chart No.5.1

Structure of Editorial Department-daily

Chief Editor

Managing Editor

Executive Editor

Associate Editor

Chief News Editor

Special
Bureau Chief Editorial Section
correspondent

Chief Sub Editor

Chief Reporter Chief Photographer
Senior Sub Editor

Senior Reporter Senior Photographer
Sub Editor

Reporter Photographer

24


Chart No.5.2
Structure of Editorial Wing - Flash

Managing Editor

General Editor

Editor in-charge

Chief Sub Editor

Special
Bureau Chief Senior Sub Editor
correspondent

Sub Editor

Chief Reporter Chief Photographer

Senior Reporter Senior Photographer

Reporter Photographer

Chart No.5.3
Structure of Editorial wing - Magazine

Managing Editor

Sub editors

Trainees

25


5.1.3 DUTIES AND RESPONSIBILITIES

Chief Editor
Editorial Policies of News paper are formulated by the Chief Editor. He controls the
functions of the editing and reporting sections.

Executive Editor
Executive editor is responsible for the execution of the policies formulated by the
Chief Editor. He undertakes planning, administration and implementation of the
policies in consultation with the Chief Editor.

Associate Editor monitors both national and international news

Chief News Editor
► Working according to the policy of the management

► Giving orientation

► Giving suggestions for improvement to the Department

► Giving overall guidance

News Editors edits general news / monitors television channels and internet.

Sub editors engage in news translation and editing activities

5.1.4 RECENT IMPROVEMENTS

 Eight page color printing

 Redesigned the daily

Kerala Kaumudi daily has redesigned on 1st June 2007. Mainly three things have
changed. These are given below:

1. Change in promos

A. Front Page Promo
B. National and International page's top design
C. Business page's top design

26


5.2 PRODUCTION DEPARTMENT
The hierarchy of production department starts from editorial department. It works in
connection with DTP section and Circulation Department. Edited news from the
editorial department reaches the DTP section through news editors. From DTP
section it is send to proof reading section then again to the DTP section then to the
News Editor. He decides the intensity of the matter and he sets news in different
pages. The news editor also decides upon the different size of caption used for
different news. After the page transfer is done.

Chart No.5.4

STRUCTURE OF PRODUCTION DEPARTMENT

Editorial Production Head
department

Mechanical section Electrical section Print production

Mechanical engineer Electrician in charge Production manager

Asst. mechanical Production superintendent
Asst. electrician
engineer
Supervisors
Fitters
Foremen

27



Mechanical Section
Mechanical wing deals with the repair maintenance, preventive maintenance and shut
down maintenance for machines. For this minimum numbers of persons employed.
They will try to solve any problem relating to the machines.

Mechanical Engineer
► Always maintain the press in good condition.

► Always make ready the press for printing.

Assistant Engineer assists the Mechanical Engineer for maintenance works.

Fitters help the Assistant Engineer for doing maintenance work. They check and
maintain the press in good condition.

Electrical Section
Electrical section deals with repairing all electrical equipments, maintenance
of motors in order to avoid any break down during production. It is the duty of
electrical engineers and electricians to make sure the uninterrupted power supply in
the department.

Print Production
The basic function of production department in Kerala Kaumudi is printing
newspapers. The printing of Kerala Kaumudi newspaper is undertaken by M/s. Ravi
Printers and Publishers Private Limited. Printing is done in accordance with the print
order given to the foreman by the Circulation Department. Raw materials for printing
are issued by the Materials Department. Printing of news paper is after 12.00a.m.
Printing of Flash begins at 11.45 and Magazine printing is on every Monday 3.00 p.m.

Production Manager

► Accountable to GM.

► A member in Task force

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► To cross check the quality of printing.

► To attend all the problems related to production.

► To conduct the meeting prior to the start of work on daily basis.

Foreman
► In charge of printing.

► To make sure that printing is on time.

► To check the plates available from the plate making section.

► To check the production activities and number of pages.

► To check the proportion of ink-water.

Dispatch foreman
► To work in connection to Circulation Department.

► To check the collection/bundles of copies printed.

► To check whether the dispatch is on time.

► To check the vehicles are on right route at right time

ACTIVITIES OF PRINT PRODUCTION

Chart No.5.5 Activities of Print Production

Print Production

Proof
Production Manager Editorial
Editorial Desk
Foreman DTP
Manager DTP
Advertisement
scheduling
Plate Making
Proof
Advertisement
Printing

Circulation Dispatch Foreman
Department

Collecting Bundles

29


The Print Production section mainly handles the following functions.

 Pasting
 Plate making
 Printing and
 Dispatching
5.2.2 AN OVERVIEW OF NEWS PRODUCTION PROCESS

NEWS PRODUCTION PROCESS

Newspapers are usually printed on an off-white paper known as newsprint. Making of
newspapers is called journalism. Much emphasis has been placed upon the accuracy
and fairness of the journalist.

Since the 1980s, the newspaper industry has largely moved away from lower-
quality letterpress printing to higher-quality, four-color process, offset printing. In
addition, desktop computers, word processing software, graphics software, digital
cameras and digital prepress and typesetting technologies have revolutionized the
newspaper production process. These technologies have enabled newspapers to
publish color photographs and graphics, as well as innovative layouts and better
design.

The actual content of publications comes from two separate departments. The
ads, whether they be what many refer to as "display" ads (the ones with the borders
around them) or "line" ads (the categorized listings of text ads usually found in the
classified section) are sold and often produced by the Space Marketing Department.
Everything else--the news, features, columns, photos, and stock quotes--all of that
comes from the editorial department and is referred to as "editorial content" or simply
"editorial".

30


Chart No.5.6 News Production Process

31


SOURCE NEWS Reporting Bureau

Special Correspondent Bureau Chief

Chief Reporter
Senior Photographer
NEWS STORY
Senior Reporter
Photographers

Reporters

AGENCY Trainees
NEWS

Editing Desk CE EXE.E CNE
E

Local Main NE AE Feature Sports International
EE E
Desk chief R.Editor N.Editor

News Editor
Inpu Editor
t
Chief SE Chief SE Chief SE

Senior S.E Senior S.E Senior SE

Sub Editors Sub Editors Sub Editors Sub Sub

Trainees Trainees Trainees Trainees Trainees

DTP Section Lay out Print out Production
Department
Processing

Proof Section Printing

Out put

I. SOURCES
 Agencies like PTI (Press Trust of India), UNI (United News India).

32


 Public Relations Department
 Political leaders
 Television/Internet
 Police Stations

II. REPORTING

Reporting comprises a wide network and an efficient team of reporters. They report
the news in an unbiased manner. The reporting section is headed by Bureau Chief.
Under him comes the Special Correspondents, Senior Photographers, Photographers,
Chief Reporters, Senior Reporters, Reporters and the Trainees. The Bureau is
connected to the desk of editing section. The company has 42 local Bureaus.

III. NEWS STORY

Usually, the stories will run down columns two-and-a-sixteenth inches wide, with an
eighth-inch blank space between the columns. And since ads often appear on the same
pages as the editorial content, although it would make sense that the column width
that editorial uses always matches up with what advertising defines as a column,
occasionally there are exceptions.

IV. EDITING
This section comprises of various desks: Local desk, Main desk, Feature desk, Sports
desk and International desk. Here the selection, editing of news, selection of
photographers, page layout, and coordination is carried out.

Functions of Various Desks

LOCAL DESK: Local desk edits all local news. The desk is headed by Chief Sub

Editor, and under him comes the Senior Subeditor, Subeditors and Trainees.

MAIN DESK: Main desk edits all general news, political news, science news, national

news etc. It is headed by the Chief main desk and under him comes the News Editor,
Chief Editor, Senior Sub Editor, Sub Editors and Trainees.

FEATURE DESK: Feature desk edits the editorial page. It is headed by Resident Editor

and under him comes Senior Sub Editor, Sub Editors, and trainees.
SPORTS DESK: Edits all sports news .It comprises of News Editor and Trainees.

33


INTERNATIONAL DESK: Edits all international news. Headed by Chief Sub Editor,

under him comes Sub editor and Trainees.

Table 5.1 Page Details of Kerala Kaumudi Morning Daily

Page Contents Page setup by

1 General News Main Desk

2 &3 Local News Local Desk

4 Business News Business Desk, Kochi

5 Local Local/General Desk

6 Editorial page Feature Desk

7 General news Main Desk

8 Obituary Local/General Desk

9 Classifieds Space Marketing

10 Classifieds and News Space Marketing/Main desk

11 National/International/Science News Main Desk

12 Special News Feature Desk

13 Sports News Sports Desk

14 General News Main desk

V DTP Section
DTP is a part of the Editorial Department (See the next chapter). DTP manager is the
head of the DTP section. Pre press activities are under taken in this section. In the
case of dailies and magazines, the editing and pagination is done in the DTP section.
In the case of Flash, this is done in press section of Flash. Adobe Page Maker 7.0 is
the software used for pagination.

The functions performed in the DTP section can be listed as follows:
► Firstly, the advertisement layout is setup with the requirements of
advertisement coordinator by the operator.

34


► The remaining space on the newspaper is devoted for news.

► The data supplied from the desk is scanned and entered into the computers by

the operators.
► Advertisement in the PDF format from the agencies and the photographers are

entered into computers through scanners.
Activities of DTP section
The main activities carried out in the DTP section are shown in the following
diagram.
Chart No.5.7. Activities of DTP Section

Editorial

Proof Page Laser Film
Composin Plate making
g

Composing
In DTP section, data entry of the matter handed over by the editorial section is
undertaken. All the input materials such as photographic reflections, originals, non-
photographic pictures are converted into digital files and resized as per requirement.
Transmission Section transfers General pages to all editions through ISDN broadband
lines. Almost eighteen staffs are working in this section in 4 rotating shifts.

Proof Section
A miniature printout of A4 size will be send to editorial proof and advertisement
proof section. Corrections are carried out after proof reading by the operators.

Layout
Then each page is made by the concerned desk chiefs with the support of operators.
Matter is sorted again and page order is checked. Layout sheets are marked with
vertical lines that correspond to the column widths of your publication, as well as
horizontal markers that correspond to the units your newspaper uses to measure the
height of the ad, usually inches or centimeters.

Laser Print Output
Black and white pages are printing in laser printer.

35


Image Setting
The matter pages containing four colours (primary colors-cyan, magenta, yellow –
and black) composed in ‘PageMaker’ are converted to Post script files or pdf
(portable document format) using Torrent v6.0 SP3 software. These files are
transferred to Graphic Art films using an imported Image setter machine, ‘Scantext
Othello’. These graphic art films are processed in the machine ‘Image Line’. This
machine has three racks, each containing developer, fixers and water. Developer and
water is used in the ratio 1:3.

The following parameters have to be checked before exposing.

Table No. 5.2 Parameters checked before exposing

S.NO Parameters
1 Mast Head
2 Date Line
3 Price and Edition
4 Page size
5 Page Number
6 Screen Angle
7 Screen Frequency
8 Resolution
9 Color Code
10 Registration Marks
11 Non –Emulsion
12 Perfect matching of fonts
13 Non –Creasing
14 Alignment of columns

After taking final full sized printout of each page on LP/ film, these will be
handed over to the Production department.

Stripping
Color negatives are "stripped" together for each page. A blue-line print is made
from "stripped-up" negatives and is used to check image position before printing.

Pasting
The prints are pasted on the astronel sheet.

36


Plate making
The plate is produced by a photo chemical procedure. The astronel sheet is placed on
an Aluminum sheet with a chemical coating and vacuum is applied on it. After this
process it is exposed to a u.v.light of 3000 W for 85 seconds. When the plates are
exposed to light, a chemical reaction occurs that allows an ink-receptive coating to be
activated. This results in the transfer of the image from the negative to the plate. Each
of the primary colors -- black, cyan (blue), magenta (red), and yellow -- has a separate
plate. The light passes through the non-image area and it is developed by using a
developer. Then gum is applied on the plate to avoid oxidation. The next step after
plate making is the printing.

Printing
Offset lithography is the workhorse of printing. Almost every commercial printer does
it. The paper is fed through the press as one continuous stream pulled from rolls of
paper. Each roll can weigh as much as 2,000 pounds (1 ton) Web presses print at very
high speeds and use very large sheets of paper. Even when a 1-ton roll of paper runs
out, the presses do not stop rolling. The press has to maintain a constant balance
between the force required to move the paper forward and the amount of backpressure
(resistance) that allows the paper to remain tight and flat while traveling through the
equipment.

The machine used in Kerala Kaumudi is WEBKING (manufactured by
M/s.Perfect Rotary Offset (p) Ltd, one of the leading manufacturers and exporters of
high quality web offset printing press). The speed of the machine is
35,000copies/hour.And the average number of copies that can be printed from 1 reel
is 23,000 copies.

Offset process

Ink and water do not mix -- this is the underlying principle of offset
lithography. The ink is distributed to the plates through a series of rollers. On the
press, the plates are dampened, first by water rollers, then by ink rollers. The rollers
distribute the ink from the ink fountain onto the plates. The image area of the plate
picks up ink from the ink rollers. The water rollers keep the ink off of the non-image

37


areas of the plate. Each plate then transfers its image to a rubber blanket that in turn
transfers the image to the paper. This process is shown in the following figure. The
plate itself does not actually touch the paper -- thus the term "offset" lithography. All
of this occurs at an extremely high speed.

Bindery
The bindery is where the printed product is completed. The huge rolls of now-printed
paper are cut and put together so that the pages fall in the correct order. These printed
news papers are manually collected, counted and packed into bundles as per the
requirement of the agents and attaches a slip containing number, number of news
papers enclosed etc.

Dispatching
These bundles are sent through different routes to various destinations or dropping
points. Just before reaching the ultimate consumers or readers, the newspaper bundles
are collected by the concerned agents at the dropping points. They in turn take the
newspaper to the readers.

38


5.3 MARKETING DEPARTMENT
5.3.1 SPACE MARKETING DEPARTMENT
Advertisements, for long, have been a major source of revenue for the newspapers
and periodicals. Most newspapers make nearly all their money from advertising. The
portion of the newspaper that is not advertising is called editorial content. Every ad
the Company sell will need to conform to the column widths of the newspaper. The
width of every newspaper page can be broken down into columns of equal size. How
wide a column can be seen by looking at how the editorial copy flows on a page.
Usually in the case of news paper 60% of space in it is meant for news and 40% of
space is meant for advertisement.

5.3.1.1 FUNCTIONS OF SPACE MARKETING

► Planning, analyzing and implementation of advertising activities.

► Monitoring advertisement collection activities.

► Coordinating the activities relate with publication of regular and periodical

supplements.
► Coordinating the activities of the field executives both inside and outside

Kerala.
► Research and development activities to update with changes in the industry.

► Arranging periodical get together of advertisement agencies and regular

clients.
► Conducting periodical training programs for Marketing Executives.

5.3.1.2 ORGANIZATION STRUCTURE OF SPACE MARKETING
DEPARTMENT

39


Assistant General Manager (Marketing) is the head of Space Marketing. Manger
corporate operation, Manager Flash Corporate and Manager Debtors Management are
reporting to him.

Chart no.5.8
STRUCTURE OF SPACE MARKETING DEPARTMENT- Flash & Morning Daily

Assistant General Manager

Manager Corporate Operations Manager Debtors Mgmt Manager Flash Corporate

AM Weekly Asst Manager – Debtors Mgmt

RM – South
Receivables
A/c’s Executive Bill wise A/c’s Officer team
Posting
RM –Central
Billing
Unit Advertisement
RM – North
Managers Marketing Executives

Asst Manager Customer care executives
Corporate Commn.

Office Asst.- Office Asst.- Dispatch
AAM – DTP Cross Checking Voucher Billing

Proof Reader 1 Proof Reader 2 Proof Reader 3 DTP Staff 1 DTP Staff 2

5.3.1.3 DUTIES AND RESPONSIBILITIES
► Directly accountable to GM.

► Head of Space Marketing Department & Product Marketing Department

► Plans, analyses and implement the entire activities in these departments.

40

Hari


► Member of corporate task force.

► Coordinates the entire department.

Manager – Corporate Operations
► Coordinating the Billing Activities of all units.

► Weekly and monthly evaluation of all units advt head.

► Settlement of requirements of all unit advt departments

► Involved in the work of corporate advt materials like rate cards proposals etc.

► Unit wise communications

► Dealing with corporate clients and agencies

Asst. Manager – daily
► Looks after all the activities connecting to advt. dept

► Controls the space marketing activities of Trivandrum unit (billing, collection

and office administration)
► Planning meetings,

► Follow-up units of customer along with executives,

► Monitoring the executives ,

► Collection monitoring,

► Bureau monitoring,

► Conducting evaluation meeting on daily basis

Manager – Flash Corporate
► Coordinating the Billing Activities of all units.

► Weekly and monthly evaluation all units advt head.

► Settlement of requirements of all unit advt departments

► Unit wise communications

► Dealing with corporate clients and agencies

Asst. Advertisement Manager – DTP

The composing and scanning of advertisement are carried out in the DTP section.
They set the layout and print outs are sent to proof section. Proof readers make

41


necessary corrections before printing. The duties and responsibilities of Asst.
Advertisement Manager-DTP are:

► Act as liaison between DTP and Advt

► Ensuring of scheduled ads to be carried in daily basis

► Ensuring timely settlement of ad matters to be present in Daily

► Coordinating the entire activity for ad placing in Daily

Customer care executives handle the clients and explain the schemes and services to
them.

Office Asst.-Cross Checking carries out the cross verification of advertisements
before dispatch.

Office Asst.-Voucher Billing bills the advertisements as per the prescribed rates (see
appendix) and sends these to the clients.

Sources of Advertisements

1. Marketing Executives:
Marketing Executives are persons recruited for convincing advertisers and
collecting advertisement from them by telling them about the features, schemes,
discounts and tariffs available to them from Kerala Kaumudi. The so collected
amount will be brought to the advertising department.

2. Government Organization: Government advertisements are usually in the form
of notice of tenders, Social programmes, etc. Government advertisements are
through Director of Public Relations.

3. Stringers: Stringers are sources of advertisements to the newspaper.

4. Advertising Agencies: There are two types of agencies viz.
a) Accredited agencies: Accredited agencies are the advertising agencies, which
are accredited by the Indian Newspaper Society. Society monitors payments
to publications from the advertising agencies. Society constantly endeavors to
enforce the Accreditation Rules, so that payments are made within the credit
period allowed. They are given a commission of 15%.

42


b) Non-accredited agencies. They are given a commission of 10%.
Different types of advertisements in Kerala Kaumudi

A. Classified Advertisements: Classified advertisements will be shown in one line
or three like accommodation wanted or available, change of name, thanks giving
etc.

B. Matrimonial Advertisements: It is a kind of classified advertisement. Ads like
like bride, groom wanted etc are matrimonial advertisements.

C. Ear panel Advertisement: The advertisement is shown on the top position in
the front page on the left or both sides. This is an important source of income
for the newspaper.

D. Display Advertisement: Display advertisement will be shown with in a box on
any page of the news paper. The advertisement is usually given in two or more
lines or quarter page or half page or full page .This is also a high income source
for the daily.

There are special position advertisements on the newspaper. They are

E. Solus advertisement: In the case of solus advertisement only particular
advertisement is shown on the front page and all other advertisements are
avoided. For this advertisement, the customer has to pay a high charge for
covering opportunity cost.

F. Strip advertisement: In the lower half of the front page there is only one
advertisement is allowed. Here also the advertiser compensates the opportunity
cost.

43


5.3.2 PRODUCT MARKETING DEPARTMENT
The number of copies distributed, either on an average day or on particular days
(typically Sunday), is called the newspaper’s circulation and is one of the principal
factors used to set advertising rates. Circulation is not necessarily the same as copies
sold, since some copies or newspapers are distributed without cost. Readership figures
may be higher than circulation figures because many copies are read by more than one
person, although this is offset by the number of copies distributed but not read
(especially for those distributed free). The Product Marketing Department takes
care of everything after the newspaper is printed. This department is responsible for
encouraging people to start or keep reading the publication

Kerala Kaumudi is having fourth position in circulation. The first, second and
third positions are held by Malayala Manorama, Mathrubhumi and Deshabhimani.
Total circulation of Kerala Kaumudi daily comes around 1.5 lakhs and flash around
2.5 lakhs. Today Kerala Kaumudi has 2.5 million strong readerships.

Product Marketing Department is concerned with promoting the news
paper there by increasing its circulation. It is a source of revenue for the newspaper. It
is mainly concerned with distribution and collection of amounts from the agents.

5.3.2.1 FUNCTIONS OF THE PRODUCT MARKETING

DEPARTMENT

► Boost up circulation

► Strengthening agency network

► Creating awareness

► Increase in demand

► Supply

► Market research

► Product Improvement

44


Chart no.5.9
STRUCTURE OF PRODUCT MARKETING DEPARTMENT- Flash & Morning
Daily

Asst General Manager

Chief Circulation Manager

Daily FLAS
H
Manager – Corporate Operations Manager – Corporate Operations

Regional Managers Regional Managers

Circulation Managers Circulation Managers

Asst: Circulation Managers Asst: Circulation Managers

Circulation Executives Circulation Executives

Circulation Inspectors Circulation Inspectors

Sales Promoters Sales Promoters

Chief Circulation Manger is the head of Circulation department both for
Morning daily and Flash. He is directly accountable to AGM. He plans and
implements the circulation strategies for daily and flash. He identifies the weak areas
of circulation and formulates competitive promotional techniques.

Managers–Corporate Operations of daily and flash coordinates directs and
controls the circulation activities of all the three zones viz: North, mid and south.

45


Zonal Marketing Operations
Circulation Manager checks the circulation figures. He should coordinate
Assistant circulation managers of all units. Morning daily and Flash Circulation
Manager is assisted by Assistant Circulation Manager of all units. Under them come
the Sales officer, Field Inspector, Promoters and Agents. The Assistant Manager is
directly accountable to the circulation manager. His main duties are Collection of cash
from agents using field promoters. Circulation inspector inspects the promoters and
enhances the circulation activity. Promoters canvas the potential buyers. They
resolve agents issue; collect from agents and resolves issue between agents and
subscribers.

Motivation factors for competitive spirit
- Reward and recognition given to promoters for those who achieves collection
targets and copy targets.

- 27.75% is given as commission to agents which are a higher percentage than
competitors.
- Provides scholarship for agent’s children.
- Giving back page color photos of agents or their daughter/son on their marriage.

Credit Period
The credit period allowed to the agents is 30 days.
Discount allowed:
- 2% discount for payment on or before 10th of next month
- 1.5% discount for payment on or before 20th of next month
- 1% discount for payment on or before 25th of next month

Price of Kerala Kaumudi Dailies
Morning daily: Price is Rs.5 and on Sundays the price is Rs5.50
Flash: Price is Rs.4

46


Schemes for subscription
5 year plan:
- As per this plan the actual subscription amount is Rs. 9060, Amount to pay is
Rs.8250, Saving is Rs. 810
- In addition to these Kerala Kaumudi (P) Ltd offers first one year free
insurance protection (for 2 lakh) or for Business firms 5x2/10x1 size Black &
white free advertisement

3 year plan:
- As per this plan the actual subscription amount is Rs. 5436. Customer has to
pay Rs.4935 only and he can save Rs. 501.
- In addition to this first one year free insurance protection for Rs.1 lakh or for
business firms 5x2/10x1 size Black & white free advertisement

Publishers of commercial newspapers strive for higher circulation, so that
advertising in their newspaper becomes more effective, allowing the newspaper to
attract more advertisers and to charge more for the service.

47


5.3.3 DEBTORS MANAGEMENT DEPARTMENT
Debtors Management Department is a part of Marketing Department. The main
purpose of this department is to Streamline and make the debt collection activities
efficient. This department works in connection with the Space Marketing Department
and Product Marketing Department.

Chart no.5.10 Organization structure of Debtors Management Dept.


Debtor manager

Asst. Manager

Space Marketing Dept Product Marketing Dept

Sr Executive Sr Executive

Collection Jr Executive Jr Executive Collection
executives executives

Account Asst. Account Asst.

5.3.3.1 FUNCTIONS OF DEBTORS MANAGEMENT
DEPARTMENT

1. Know the customer (before and during relationship)

► Credit check and monitor

► Request additional financial information from customer

► Gain intelligence from others in the sector about the customer’s payment

record.

48


2. Define credit limit setting process

► Use criteria to determine whether to grant credit to a customer formalize a

procedure to establish customer credit limits. Also put in place a periodic
review procedure.
► Once a credit limit is established only increase limit for a customer by

following the same formal procedure as when the limit was established in the
first place.

3. Synchronize the actions and attitudes of the sales and credit control teams.
Maintain a common policy within the company when dealing with debtors

4. Consider other forms of security or credit insurance
Using financial instruments to get paid, Inland Letters of Credit/Bills of
Exchange.

5. Ensure the production of timely and accurate management information.
► Understand what is happening in our Business Environment

► Monthly management of figures to include aged debtor listings and weekly,

monthly review of overdue debtors

6. Assertive debt collection policy
Formalize a graduated sequence of letters/telephone calls

49


5.4 FINANCE DEPARTMENT
Kerala Kaumudi has 11 editions spread over Kerala, Bangalore, Mumbai and Gulf.
Kerala Kaumudi has a centralized accounting system. All these units have to generate
their own funds through circulation, advertisement and other sources. The generated
funds are deposited to their respective bank account (Federal Bank) because the units
have no authority to utilize these funds. Cheque sanctioning process is carried out at
corporate office at Thiruvananthapuram with the approval and signature of MD &
Director

Chart no.5.11
STRUCTURE OF FINANCE/ACCOUNTS DEPARTMENT

Finance Manager

Accounts Manager/Officer

Corporate Accounts Head

Flash Morning daily

Advt. A/c Circulation A/c A/c Advt. A/c Circulation
Supervisor Supervisor Supervisor Supervisor A/c
(Corporate) (Corporate) General A/c (Corporate Supervisor
(Corporate) (Corporate)

Head of Finance/Account

Flash Morning daily

Advt.A/c Circulation A/c A/c Supervisor
General A/c Advt.A/c Circulation A/c
Supervisor Supervisor All Supervisor Supervisor All
All units units All units
All units units

Accounts Accounts Accounts Asst.
Accounts Asst. Accounts Asst.
Assistant

Clerks
Clerks Clerks Clerks Clerks

50


5.4.1 FINANCE FUNCTION OF KERALA KAUMUDI
In every month, the corporate office will sanction Rs. 10,000 to Rs. 20,000 in advance
as an imprest to all units for meeting their day-to-day expenses.. At the end of the
month each unit will be sending their petty vouchers to corporate office for availing
credit to their imprest account.

Cost Control
Kerala Kaumudi is following different cost control measures. Cost control aims
at reducing inefficiencies and wastage and setting up pre determined cost and in
achieving them. Cost control is comparing of actual performance with the standards
or targets and taking corrective action if any deviation is occurred.

Budgets
Kerala Kaumudi is following flexible budget. Flexible budget is one which is
designed to change in accordance with the level of activity actually attained. It
provides budgeted cost at different levels of activities. It is prepared after making an
intelligent classification of all expense between fixed, semi variable and variable
because the usefulness of such a budget depends upon the accuracy with which the
expenses can be classified.

Now a days in Kerala Kaumudi most of the accounting and technical matters are
such as inventory control, production planning and control through linear
programming, pay roll accounting, sales accounting, budgetary control and standard
costing are computerized.

5.4.2 DUTIES & RESPONSIBILITIES

Finance Manager

► Member of corporate task force.

► Accountable to GM.

► To give overall guidance to the functioning of the department.

► To maintain the finance information system like Financial Analysis, Profit and

loss account analysis, Cash flow analysis, Inventory management, Budget
preparation and Project evaluation.

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Accounts Manager
► To coordinate all functions of Accounts department.

► To supervise maintenance of cash books, ledger, journal etc.

► To fulfill statutory requirements like TDS return filing, Advance tax

payments, Sales tax return filing, Fringe benefits tax, RNI return filing

Head of the Finance /Accounts

 Administrative function

► To perform the functions and duties of unit chief in the absence of unit chief.

► To exercise the role of chief executive officer of a unit, next to unit chief.

 Executive function

► To advice the unit chief unit manager and task force in financial matters.

► To forecast and estimate the financial requirements of units and to formulate

short term and long term plans, budgets, targets, standards etc.
► To meet the financial requirements in time, raise funds from appropriate

outside sources and schedule the repayment.
► To prepare monthly profit & loss A/c and to compare the actual with the

financial plans/target and to take control measures.
► To monitor the collection of debts to ensure 100% collection.

► To ensure optimum use of resources to reduce cost of production.

► To perform such other functions as may be prescribed by the corporate finance

head/top management.

 Incidental finance function

► Supervision of cash receipts and disbursement.

► Proper custody and safeguarding important and valuable papers.

► Record keeping and reporting.

► Cash management and credit management.

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► Assist internal auditors/inspectors assigned by CTF members/corporate

finance head.
► Verify documentary evidence in support of a transaction.

► Exercise reasonable care and skill performing duties.

► Disclose full and fair information to the UTF and CTF.

► Awareness of financial position as on date.

► To ensure proper sequence of work to detect errors and frauds.

► Attend training and learning programmes and keep up to date in the area of

accountancy, finance and general business conditions.

Accounts Assistant
► Undertake various reconciliation works.

► Ledger scrutiny on monthly basis.

► Preparation of monthly Profit & loss A/cs

Circulation Accounts Supervisor
► Monitoring billing and collection activities.

► Sanctioning of credit adjustments.

► Monthly closing of ledgers.

► Preparation of agents control accounts.

Advertisement Accounts Supervisor
► Book adjustments entry

► Monitoring billing and payment activities.

► Prepare MRV (Monthly Return Verification) statement.

Clerks
► Voucher entry preparation

► Filing vouchers and its cross verification

► Preparation of receipts

► Prepare all working papers and notes made.

► Dispatch of bills

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5.5 HUMAN RESOURCE DEPARTMENT
The management of Man is a very important and challenging job; important because it is
job, not of managing ‘men’, but of administering a social system. Human Resource
Management involves procedures and practices through which human resources are
organized and directed towards the attainment of the individual, social and organizational
goals.

Department Policy
The policy of HR Department is to render effective administrative support to the
organization both at corporate level and unit level in a systematic and scientific manner
with special emphasis on human resource development and training with the laid down
quality policy of the organization.

Chart no.5.12
Structure of HR Department

General Manager

Human Resource Manager

Executive (HR)

Clerk/Typist

Front Office Office Drivers Telephone Security
Executive Assistants Operators Officer

House Keeping Canteen Dispatch Supervisor

5.5.1 FUNCTIONS OF HR DEPARTMENT
HR manger is responsible for the management of the employees of both Kerala Kaumudi
and Ravi Printers and publishers. The main functions of HR department include:

54


I. Employment and placement
Recruitment, selection and placement as per the manpower requirements of the
company are the most important functions of HR Dept. The following recruitment
process chart gives an overview of the overall recruitment process of Kerala Kaumudi.
Chart No. 5.13 Recruitment Process Flow chart
Kerala Kaumudi-HR Dept.
candidate

No

Letter of
Rejection Accept
the
Called for Offer
interview
procedures
Human Resources Management & selection

No
Yes
No
Manageme
nt decision
and Interviews
approval (Preliminary
/HR/
Technical/
panel

Final with
Make
Directors offer
Short-
Resume
Manpower Search listing of
Planning & Resume
Initiate Candida
Budgeting te
Search Joining
Selected Yes
Formalitie
s
Yes Yes
Referen
No
Checks
Employee Internal External
referrals Postings sources
headsDepartment

Manpower
requirements

Vacancy
Director’s
Approval

55


II. Training
It is the responsibility of HR Department to impart Training and development to
employees both at corporate and Units whenever required. The training programmes
for employees include induction, on the job training for non managerial staffs, off the
job training for managerial staffs.

Training procedure
1. Identifying the training requirements of corporate as well all units
2. Planning and scheduling training programmes for the required units
For planning and scheduling the training and development programmes,
Kerala Kaumudi HR department is using a Training Calendar (see Appendix).
Every month in advance this training calendar is sent to all units. The units
require training programmes mark the convenient dates by specifying the
objectives and topics on which training is needed and return to the HR
department. HR Dept. makes necessary arrangements for the programmes. As a
part of streamlining the training programme, efforts are continuing to make it
function on line.
3. Evaluation of the effectiveness of the training programmes.

III. Wage and salary administration
Compensation to employees is fixed as per the Wage rates fixed by the wage
boards.

IV. Proper allocation of work
V. Developing and maintaining motivation for work
VI. Performance appraisal
Employee performance at work is evaluated in terms of pre-determined standards
with a view to develop a sense of belonging to the organization and also to retain
them.

VII. Employee health, safety and welfare services
Kerala Kaumudi has a hazard free working environment. No accident has been
reported in the past years.

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The welfare schemes include both Statutory and Non statutory schemes.

Statutory welfare schemes consists ESI, PF, EDLI, Profession tax and labor welfare
fund. Non Statutory schemes includes Canteen facility (subsidised rate), Vehicle
allowance, LTA (leave travel allowance), Kerala Kaumudi recreation club, Kerala
Kaumudi employee’s cooperative society, Kerala Kaumudi employee’s welfare
forum, Mobile allowance, Conveyance allowance, Medical allowance and City
compensatory allowance.
For maintaining the morale and team spirit among employees every year HR
Department is conducting a WELFARE FORUM. Apart from granting award to the high
achievers, this programme involves lots of cultural activities too.

VIII. Administering employee turnover and conducting exit interviews
Employee turn over rate in the previous year was 7%. In some cases exit interviews
are conducted.

IX. Industry relations
Maintenance of healthy and peaceful labor-management relations is the
responsibility of the HR Dept. This includes grievance handling, maintenance of
discipline etc.

X. Trade Union
The existing trade union in the company is AITUC. Trade union is given
management participation mainly in the areas of recruitment, termination, employee
linked insurance etc.

HR Manager is responsible for the overall administration of front office, House Keeping,
Drivers, Dispatch, Telephone operators and security officers

► Front Office Executive attends visitors and informs the concerned person. She

keeps attendance register of head office staff.
► House Keeping staffs are responsible for the good maintenance of office.

57

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