Marketing Strategies of Businessworld

 
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Case Details:

Case Code : MKTG096
Case Length : 13 Pages
Period : 1999-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : BusinessWorld
Industry : Business Publications
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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It is also the fastest-growing business magazine in SEC A15, with an overall readership growth of 75 per cent, according to the National Readership Survey (NRS) 2003, over NRS 2002."6

The Indian Business Publication Industry

According to the Business Strategies Group's (BSG)7 2004 report on India's business media, the country's publication industry generated revenues of about US$ 100 mn. The industry could be broadly segregated into two sections -business dailies comprising newspapers and periodicals comprising weekly, fortnightly or monthly magazines. The business publication segment held a major share in the Indian publication industry, contributing about 60% of the industry revenues (Refer Exhibit II for revenue share of various magazine segments).

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Advertising formed a major source of revenues for these publications. The advertising expenditure by corporates was heavily skewed towards print media and television (Refer Exhibit III for advertising spend split in Indian business media). The business segment generated the highest advertising revenues in the publication industry (Refer Table I).

Prominent business newspapers in the daily segment included Business Standard (BS), Economic Times (ET) and The Hindu Business Line (HBL). Comparing the circulation figures of the first half of 2003 to the second half of 2002, according to ABC, prominent newspapers like BS and ET recorded a substantial decline.

BS in Chennai showed a decrease of 17.7%, going down from 3,557 to 2,928 copies per day. Similar decline in BS' circulation figures were observed in Mumbai, Hyderabad and Kolkata.

ET also exhibited a general decline in readership in all centres except Delhi where the increase was a mere 0.1%.

The only daily to record a substantial growth was HBL. It grew by 8.1%, bringing the circulation up from 43,269 in 2002 to 46,762 copies in 2003. Commenting on these trends, Manish Porwal (Porwal), General Manager, Starcom8 said, "It is clear that these dailies have shown a definite decline and that HBL is the only daily recording a growth both in readership and circulation...

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5] SEC refers to Socio-Economic Class. It is a consumer segmentation term typically used for consumer-based research. The segments are categorized on the basis of occupation and education of the chief wage earner of the household. There are normally eight SECs, A1 being the uppermost class.

6] "Businessworld's Circulation Goes up by 22 Per Cent," www.agencyfaqs.com, May 26, 2004.

7] BSG is a Hong Kong Based specialist business intelligence and consultancy firm. It assists organizations trying to understand the opportunities and challenges of emerging Asia Pacific economies, World economy and new technologies causing transformations in the businesses world over.

8] Starcom is a leading media service agency with a media network of 110 offices in 76 countries in the world. The agency specializes in media management, digital communications, entertainment marketing, sports sponsorship, event marketing and multicultural media.

 

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