The Imprint Of Survival

thrives despite price wars, cut-throat competition and a few non-starters. The first of a three-part report by Deepak Arya

Narayan Singhji was awake to the morning sun. Everything was as it had been for the last seven years.. Only Bhairon, the newspaper vendor, was dreadfully late. As if on cue, Bhairons frail figure atop his Atlas bicycle appeared. But somehow he didnt seem to be as awake and appreciative of the new morning as Singhji. The ageless Atlas came wobbling in and crashed into the gate, even as Bhairon landed smack amidst the hapless chrysanthemums. Singhji stood frozen as he took in Bhairons bleary-eyed countenance. Saab...that late night Dainik Bhasker hawkers party..., Bhairon muttered by way of explanation. Dainik Bhasker has crossed the two lakh circulation mark in our Jaipur city within two months of its launch.

 

Over the past few weeks he had seen frenzied activity in the hitherto quiet Pink City. Dainik Bhasker had shocked market watchers by wrecking the monopoly of the indomitable Rajasthan Patrika with its pre-order bookings of 1.60 lakh! Singhji realised the savvy marketing thrust behind the exercise the largest ever survey of over two lakh people; a drastic price cut (which was immediately followed by Rajasthan Patrika too); full-blown teaser campaigns; religious festival sponsorships; prospective readers invited to make their own newspaper. And now, to top it all, a bash for 1,500 hawkers!

Wasnt the print medium supposed to be a dead constituency, he thought as he helped Bhairon to his feet. The doomsayers had long ago credited the television explosion with sounding the death knell of the print media. But, quite to the contrary, leading dailies like The Times of India (TOI) and The Hindustan Times (HT) were witnessing unprecedented growth rates and mindboggling circulation figures. Even the upstarts with an aggressive marketing posture The Asian Age, Calcutta and Outlook were breaking new ground. Significantly, Bhairons daily load had quadrupled over the years.

There was more to it. The recent past was replete with surrogate advertisement battles and price wars fought between magazines and dailies all over the country. There was more than one claimant to the top position in each segment. Relevant numbers and meaningful statistics were being flaunted to woo the advertiser. In spite of the laggards in each category making heavy weather and closing editions (The Pioneer, Navbharat Times, Jansatta), the print media was alive and kicking. This was hardly the storyline that the television soap had promised when it painted the demise of print media in expansive brushstrokes.

Deciphering the fineprint

What appears to be a mere passing query for Narayan Singhji weighs like an incubus with most media watchers these days. What exactly is happening in the print media industry? Is there a discernable trend, a method in the madness? Does the trend reflect expansion, reorganisation, consolidation or a shake-out? Or is it simply a cumulative total of all such characteristics that mark an industry operating in a typically Schumpetarian capitalist environment, subsumed under the phrase the perennial gale of creative destruction?

Growth can be measured in terms of either circulation, readership, or advertisement revenue. According to the latest Audit Bureau of Circulation (ABC) figures, leading dailies like HT and TOI have seen a phenomenal spurt in circulation of around 30 per cent in the last year. In fact, HT has crossed the five lakh mark for the very first time. And TOI (Delhi) is snapping at the market leaders heels with a circulation of around four lakh.

Delhi has become the hottest ticket if you want to make it to the ABC chartbusters, says a print media baron. Everyone from The Hindu onwards wants a piece of this cake. But, if you leave aside HT and TOI, all other English dailies have a combined circulation of a mere 80,000 in the capital! The fact that the growth witnessed by HT and TOI could be, in part, at the cost of The Pioneer and The Indian Express could, however, throw cold water over the plans of prospective entrants.

Another station that has emerged as a serious alternative for the print predators is Calcutta. The Telegraph, the first challenger, took around 13 years to break the monopoly of The Statesman and become the market leader. The Asian Age (Calcutta), the latest entrant with a cover price of Re 1, does not want to wait that long. Market sources claim a circulation of over one lakh copies (non-ABC figures) within a year and a half of its launch. In a move that is purported to shake the market,TOI too plans to bring out a Calcutta edition.

Surprisingly, The Asian Ages progression does not appear to have made any dent in the market share of The Telegraph and The Statesman. In Delhi too, the magnitude of growth cannot be explained solely on the basis of the loss in circulation of other dailies. There has definitely been some market expansion and duplication as a result of price cuts in recent times, says Pradeep Guha, director, Bennett Coleman. Thus, a household that bought only one paper for Rs 3 earlier can buy two for Rs 1.50 each now. Adds Anita Nayyar, media director at advertising agency Lintas, While his dad still reads HT, the son now wants to read TOI.

This growth trend, however, does not sustain itself across the spectrum. While market leaders in each segment are growing stronger, some also-ran contenders appear to be in the doldrums. Although most players have been able to just about match their previous circulation figures, or have seen a minor decline, the deathblow has come from falling advertisement revenues. Others have simply wound up.The Pioneer closed its Mumbai edition. Navbharat Times wrapped up operations in two regional centres. And Jansatta is considering closing a few unviable editions.

It is not as if the advertisement cake is shrinking. The total ad-spend was growing at the rate of 40 per cent during 1994-95 and 1995-96, but it slowed down to 27 per cent last year, says Satish Mehta, a media consultant and ex-marketing director of Bennett Coleman. Industry watchers ascribe the slowdown to recessionary conditions in corporate India rather than television. Advertising is the easiest cost cut avenue open to corporates during hard times. Others like wage cuts have a certain stickiness to them, says an owner of a large media concern.

Although television has squeezed ad-budgets and made life tough for second-rung publications, the top players seem to be going from strength to strength. Theres currently a bitter battle for ads. And its advertisers and agencies that determine, by and large, which publications will survive, says Guha. With the media houses on a shaky wicket, the media buying agencies have been busy hammering down ad rates. The fixed rate card is a thing of the past, discounting is the name of the game, says Nayyar.

Changing tack

This has led to a new way of looking at the business. Advertisers have more options, but it is harder to evaluate them. Their negotiating power has increased, but overall advertising costs have risen. Therefore, theres a distinct trend towards narrowcasting as opposed to broadcasting as corporates demand focused audiences. And it is here that the print media has been able to deliver, and television has failed. If ABC was the Bible for media planners earlier on, National Readership Survey is the new testament today. We are interested in readership profiles and income classifications more than bare circulation numbers, says Gopi Menon, media director, Chaitra Leo Burnett.

That probably explains why The Asian Age still doesnt have advertising support even after notching a one lakh plus circulation in Calcutta. Media planners are buying perceptions, and looking at loyal readers, says a marketing manager of a leading business daily. This trend has made publications (especially magazines) change tack and become more focused. With both television and newspapers encroaching on the traditional territory of magazines, they have come under tremendous pressure, says Nayyar. But those Outlook, Femina, Business Today with a distinct positioning have seen major growth.

Also, the emphasis on readership and focused audiences has boosted the bottomlines of vernacular publications. Until now they were getting a little more than half the ad-spend attracted by English publications despite higher circulation, readership and reach. According to the National Readership Survey 1995, of the top ten publications in terms of readership and growth, two are vernacular publications. Thus, media planners are slowly taking a serious look at the advertising potential that they hold. This renewed interest has spurred a flurry of activity in this segment (encroaching territories, using professional marketing tools and superior presentation).

On the whole, the press seems to have overcome the apocalypse complex that it acquired in the wake of the rapidly changing media environment. Theres a resurgent mood as publications are now taking a proactive stance towards the exigencies of competition. And it reflects in the energetic activity that characterises the market today.

(To be continued)

Everyone from

The Hindu onwards wants a piece of this cake. But, if you leave aside HT and TOI, all other English dailies have a combined

circulation of a mere 80,000 in the capital!