Internship Report (Roll-11 Marketing) Draft Copy (Prothom Alo)

Marketing Strategy of Newspaper Industry in Bangladesh: A Study on The Daily Prothom Alo Page 1

INTERNSHIP REPORT (DRAFT COPY)

Attention To:Mr. Badiuzzman (Program Co-Ordinator)& Internship Guide.

MARKETING STRATEGY OF NEWSPAPER INDUSTRY IN

BANGLADESH: A STUDY ON DAILY PROTHOM ALO

PREPARED BYMd. Atiqur Rahman BBA (Major in Marketing)Registration No-00551Roll-011Session-2003-2004E-mail: [email protected] Science and Technology University

Bangladesh (www.pstu.ac.bd)

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mailto:[email protected]


1.1 Executive SummaryA newspaper is one of the most important reading materials in the life of a literate

people. In the modern age, without a newspaper a person cannot think of his/her daily

routine life. The need for a proper marketing of the newspaper marketing has arisen

because of the rapid change in the communication process. An effective marketing

strategy is required to retain the current customers as well as to attract potential ones.

A newspaper as a product can satisfy the need for getting the information that helps in

decision-making process of the social and family life.

In Bangladesh, Bengali is widely used in every class of families. People read Bengali

newspapers to obtain information about national and international affairs. As people

of Bangladesh are getting conscious about the need information, the number of

readers of the national dailies is rising. At present, many national and international

organizations are operating their offices in Bangladesh. Foreigners working in these

organizations also read both Bengali and English newspapers by using the help of

interpreters. The number of readers of Bengali newspapers is increasing day by day.

Currently, the largest circulated Bengali daily newspaper in the country is "The Daily

Prothom-Alo" with having an average circulation of 400,000 copies per day.

Marketing information system can help formulation of the marketing strategy of a

newspaper. This study aims to overview how "The Daily Prothom Alo" authority can

improve their marketing strategy and fulfill the need of the readers when not only

print media but also electronic media is contesting very aggressively to attract current

as well as potential customers. Market segmentation can provide information about

the characteristics shared by the readers of the daily. Long-term vision is required to

sustain the upcoming challenging environment with the rapid changes in the world.

Competition is a never-ending process. Before the publication of "The Daily Prothom

Alo", "The Daily Jugantor" was the highest circulated Bengali daily. However, it

could not retain the position of the highest circulated Bengali daily. "The Daily

Prothom Alo” authority may use constant marketing intelligence force to remain

number one Bengali daily in Bangladesh.

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1.2 Objectives of the study

The main objective of the study is to make an overview of the marketing strategies of

"The Daily Prothom Alo". However the specific objectives are as follows:

To conceptualize 'what marketing strategy means' through a literature survey.

To define effective marketing strategy for motivating potential readers of "The

Daily Prothom Alo".

To ascertain the fulfillment of the readers' need through reading only one

Bengali Daily.

To provide recommendations for increasing circulation of the paper.

To suggest how "The Daily Prothom Alo" can remain in a position of

competitive advantage among other Bengali newspapers in Bangladesh.

To accomplish the internship program for attaining the Bachelor of Business

Administration (BBA) degree.

To get a overview of the marketing strategy of the entire media industry of

Bangladesh.

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1.3 Methodology of the study

The study is based on primary data. For the purpose of collecting primary data, an

unstructured questionnaire is used. Under the preview of the interviewed- the

officials of Daily Prothom Alo, students of some private Universities, doctors,

lawyers and housewives, are covered to analyze the competitiveness of "The Daily

Prothom Alo "and then provide recommendations for designing effective marketing

strategy. The study used random sampling in designing the sample.

Total number of respondents was 100. Out of them total number of students of one

public Universities and two private universities, i.e., East West University (EWU),

and Stamford University were 60. Other respondents were - number of Doctors: 10,

Number of Lawyers: 10; Number of Housewives: 10, and Number of Bankers were:

10, the study determines weighted average of the readers of "The Daily Prothom

Alo". The study tried to collect the opinion of the readers as well as target customers

regarding their expectation from the daily.

The study also interviewed circulation manager of Hawkers Union of Dhaka city to

know the present circulation of different Bengali newspapers in Barisal The study

also analyzes strength, weakness, opportunity and threat. Time period of the study is

April 2009 to July 2009. .

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1.4 Limitations of the study

Some of the Limitations of the study can be mentioned below:

The study was done only in the Dhaka city.

The study did not include the govt. officials.

The study did not consider the different groups of people such as politicians,

teachers, police, member of armed forces, social workers etc.

As competitors of "The Daily Prothom Alo" the survey considered only "The

Daily Jugantor" and "The Daily Shamokal". It did not consider other English

and Bengali dailies like "The Daily Ittefaq", "The Daliy Nayadiganto", "The

Daily Amadershomoy", etc.

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1.5 Literature Review

Evans and Berman (1982) comment that a strategy outlines the manners in which

marketing is used to accomplish a firm's objectives. They argue that often a firm

selects a strategy from among two or more possible alternatives.

Neill (1986) describes that busy potential clients are often unable to attend seminars,

as many financial planners have found it rather hard ways. Teaching them and

making the newspaper available and the newspaper firm is reachable through if their

publication can ensure, then they are most likely to read-the local newspaper.

Dertouzos and Trautman (1990) by specifying and estimating a five-equation model

of newspaper operations, provide evidence useful for addressing several issues

concerning media concentration. On the cost side, the results indicate that there exist

significant scale economies in the production of circulation and space. On the other

hand, the evidence suggests that chain newspapers cannot produce output more

efficiently than independent ones. On the demand side, rival newspapers located in

contiguous geographic markets appear to have an important competitive effect on the

demand for circulation. Dillon et al. (1993) observe that marketing research helps

marketing obtained the data.

Schultz (1993) describes a strategic approach which is one of the must pressing issues

of our business. He describes a method for making decisions to ensure the long-term

health all profitability of newspapers of all sizes.

Trivets (1996) observed that the segmenting of business markets is a process of

refining the business markets into usable components. He further commented that the

marketing personnel should know the sales and profitability of the broad product

markets of the target: markets, and of the individual businesses.

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Imam and Ali (2000) comment that database marketing involves the creation of

updating, maintenance of a database and telemarketing operation, filed sales support

system, customer services and credit collection.

Freil: Owriz Equal. (2000) observe that the placement of products in many media

alternatives available today is becoming an important part of marketing and

profanation. Applications of the technique demonstrate the importance of creating m

communicating with potential customers. In addition, to ensure delivery of a

consistent message through product placement and for all sort of promotional

activities, an integrated marketing communication system is necessary.

Gross (2000) argues that competition in the organizational marketplace is generally

keen, whether the rivalry is across the streets or across the oceans. Judging the nature

of competition by looking at structure conduct, and performance is a useful initial step

However, marketing managers must go further and consider the intensity of rivalry

among existing firm’s possible entry into the market by new firms, substitutes and

forward or backward integration.

Scott (2000) observes that building positive and constructive day-to-day working

relationships with the people can impact the last theft. of the marketing process. Too

often, customer service managers and employees who are responsible for creating and

maintaining customer relationships are isolated from advertisement, sales,

circulations. Without knowledge of the day-to-day challenges and opportunities,

marketers are handicapped in their ability to create the plans and budgets required to

achieve business goals.

Walker et al. (2000) argue that the development of marketing information system

raises legal and ethical questions because offbeat potential to harm individual.

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Agarwal (2002) describes that the guiding philosophy that all firms especially those

wit high customer turnover must get a Customer Relationship Management (CRM)

project. There is n r doubt that customer information is the lifeblood of any business

and hence, CRM initiatives. 1-luwever, CRM needs a better implementation if it is to

contribute to the corporate renaissance.

Hill (2002) argues that a critical element of a firm's marketing mix is its distribution

strategy, the means it chooses for delivering the product to the consumer. The way the

product is delivered is determined by the firm's entry strategy.

Waldfogel and George (2003) argue that when consumers share similar preferences,

additional consumers will bring forth products that confer positive "preference

externalities" on others. However, if distinct groups of consumers have substantially

different preferences, the groups bring forth products with more appeal to themselves

and less appeal to others.

According to SFN Home Published Reports (2003) the newspaper industry is highly

competitive, and threats are changing all the time. They are uniquely dependent on

inter-related revenue steams provided by sales and advertising.

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2.1 Marketing Highlights: The competitors

Through effective planning among competitive marketing strategies, the organization

needs to have knowledge about the products of their competitors. At first, it has to

identify its actual and potential competitors. Presently, "The Daily Prothom Alo" is

the highest circulated Bengali newspaper of Bangladesh. But in order to maintain its

leading position in thee market, it has to focus on the competitors. Competitors of

"The Daily Prothom Alo "are "The Daily Jugantor" and "The Daily Shamokal".”The

Daily Prothom Alo" is now at the leading position, "The Daily Jugantor "is at the

second place, while "The Daily Shamokal" is at the third position.

2.2 Product Overview of Three Dailies:

Regular Pages (Published in The Daily Prothom Alo) Sara Desh, Bishal Bangla,

Babsha O Banijo, International, Sports, Share Market, Porasuna, Editorial and Sub-

Editorial, Computer Protidin, and Cultural etc.

Regular Pages (Published in The Daily Jugantor): Khobor, Banglar Mukh, Khela.

Dosh Diganto, Editorial and Sub-Editorial, IT Bisha and Cultural news etc.

Regular Pages (Published in The Daily Shamokal) : National News, Local News,

Editorial and Sub-Editorial, Entertainment, Business, and Sports etc.

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Now a comparative study among three dailies is given below:

Day Contents of The Daily Prothom

Alo

Contents of The Daily

Jugantor

Contents of The

Daily Shamokal

Sunday

Alokito (East, West), Ain O odhikar,

Stadium, Bighan Projonmo, Shasto

kushul

Shikhagon, Business

Special

Grehoner kal,

Bighan o projkti

Monday Rosh+Alo Bsichu Kaler kehya

Tuesday Nokhsha - -

Wednesday Narimonj, Bondhushava, Shasto

Kushul

Sojon Somabesh Surid Shomabesh

Thursday Anando (shonoskriti) Shonskriti -

Friday Chutir Dinae - Projokti Protidin

SaturdayShahitto Shamoykee, Projonmo Dot

comAjker Computer

-

Source: On the basis of publication of three dailies other special materials are published on

different occasions by each daily.

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Comparative Pricing The marketing strategy, price is one of the important factors. We have shown below

the comparative position of price of three newspapers:

Days Daily Prothom Alo Daily Jugantor Daily Shamokal

Saturday-Thursday Tk. 8 Tk. 8 Tk. 8

Friday Tk. 10 Tk. 8 Tk. 8

Source: Compiled on the basis of the collected data

Comparative SalesCurrent sale of newspaper in Dhaka City among three dailies

Table-3: Current sales in Dhaka (July, 2009)

Newspaper Sales (daily)

Daily Prothom Alo 150,000Daily Jugantor 80000Daily Shamokal 70000

Source: Compiled on the basis of the collected of data

From the aforesaid table, the study observes that" The Daily Prothom Alo" has the

highest circulation among the Bengali newspapers in Dhaka city.

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3.1.1 Analysis of some Readers Psychology

Readers arc the main focus of the newspaper industry in the today's competitive

market. Sound marketing requires careful analysis of the readers. In case of "The

Daily Prothom Alo", we have known from the Hawkers Union that about 60% of the

total Bengali newspaper readers in Barisal City read "The Daily Prothom Alo". Before

developing appropriate marketing strategies for a newspaper, the management of the

paper has to know the percentage of the actual readers as well as prospective readers.

To sustain in the competitive advantage position the management of the newspaper

has to research and develop strategic marketing on the basis of the both categories of

the readers' opinion.

3.1.2 Students of Public and Private Universities

Besides public Universities, there are several private Universities in Bangladesh. The

well known private Universities are as follows: North South University, East West

University, Independent University of Bangladesh, American International University

of Bangladesh, The People's University of Bangladesh, and Asian University of

Bangladesh, Stamford University, BRAC University, Southeast University,

Ahsanullah University of Science and Technology. Students of Private Universities

are target readers of English newspapers. The study conducted survey among students

of three reputed Private Universities. Findings are presented in Table : 4 and Fig -1:

Table-4: Survey among the students of Different Private Universities

S1.No.

Name of theUniversity

Number of theStudents

Interviewed

Percentageof BengaliNewspaper

Reader

Percentageof

EnglishNewspaper

Reader

Reader ofThe Daily Prothom

Alo

Readerof

Daily Jugantor

Readerof theDaily

Shamokal

1 DU 20 70% 24% 55.56% 34.72% 9.72%

2 EWU 20 60% 40% 62% 28% 10%

3 SF.U 20 50% 50% 52% 39% 9%


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The study has found that most of the students are readers of Bengali dailies. Out of

them, the majority read of "The Daily Prothom Alo" .Readers of "The Daily Prothom

Alo" range from 52 to 62 percent. However, following are the common comments of

the students about "The Daily Prothom Alo":

Cultural activities of the students should be published.

Information about higher education should be provided in this

newspaper.

Information about job vacancies should be published for potential

graduates.

3.1.2 Survey among doctors

Percentage of English newspaper readers = (215/300)/100 = 71.67% Percentage of

Bangla newspaper readers = (85/300)/100 = 78.33% Findings are mentioned below in

Table: 5 and also shown in Fig: 2:

Table-5: Percentage of different Bengali Newspaper readers among Doctors

Newspaper Percentage of readers

The Daily Prothom-Alo 17.22%

The Daily Jugantor 9.23%

The Daily Shamokal 7.25%


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3.1.3 Survey among the lawyersPercentage of English newspaper readers = (157/300)/100 = 52.33% Percentage of

Bangla newspaper readers = (143/300)/100 = 47.67% Findings are mentioned below

in Table: 6 and also described in Fig:3:

Table-6: Percentage of different English Newspaper readers among Lawyers





Source: Survey report of marketing dept. of Daily Prothom Alo

3.1.4 Survey among the housewives

Percentage of English newspaper readers = (18/100)/100=18% Percentage of Bangla

newspaper readers (82/100)/100 = 82% Findings are mentioned below in Table: 7 and

also shown in Figure-4.

Table-7: Percentage of different English-newspaper readers among

Housewives

Newspaper Percentage of

readersThe Daily Prothom-Alo 27.85%




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3.1.5 Survey among the Bankers

Percentage of English newspaper readers = (42/100)/100 = 42% Percentage of Bangla

newspaper readers= (58/100)/100 = 58% Findings are shown below in Table: 8 and

also given in Fig: 5:

Table-8: Percentage of different Bengali Newspaper readers among the Bankers






4.1. Major Promotional programs of The Daily Prothom Alo

All the target customers are not similar in their preferences. Consumers have different

types of needs and to satisfy these various types of promotional activities have to be

planned and implemented properly. Promotional tools include advertising, sales

promotion (such as sampling, discount coupons, contests and others), and public

relation activities (such as: organizing programs, news conferences, donating money

and others). Some of the promotional activities are discussed below:

4.1.1 Maril Prothom Alo Taroka Proshuskar:

Since 2001, "The Daily Prothom Alo" has been sponsoring this program for awarding

the best Stars and Models is the showbiz of Bangladesh for their outstanding

performance. Meril organizes this program on behalf of "The Daily Prothom Alo".

This program is held between March and April.

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4.1.2 Debate Competition

"The Daily Prothom Alo "has been sponsoring Inter College and University English

Debate Competition since 2001. The Debating Committee of Viqarunnisa Noon

College organizes this competition on behalf of "The Daily Prothom Alo".

4.1.3 Award Presentation program GPA 5 obtained SSC and HSC

students

Since 2003, "The Daily Prothom Alo" has been awarding the outstanding students of

SSC and HSC level examinations. "The Daily Prothom Alo" Award Presentation

Program were held 64 districts in Bangladesh jointly with Grameen Phone, AKTEL

and also Banglalink.

4.1.4 Prothom Alo-HSBC Language Competition.

"The Daily Prothom Alo" in every year arranges a Language competition for the

school and college going students with the Honkong Sanghai Banking Corporation

(HSBC).

4.1.5 Round table discussion

"The Daily Prothom Alo" organizes different types of round-table discussions. For

example, in 2003, it organized round table discussion with Center for Policy Dialogue

(CPD).

4.1.6 News in Grameen Phone

"The Daily Prothom Alo "provides Grameen Phone with daily news. They can also

accommodate other mobile phone companies. Other programs arc also organized on

different occasions.

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5. Strength, Weakness, Opportunity and Threat (SWOT) analysis of "The Daily Prothom Alo"

As a market leader Prothom Alo also have some weakness and threats. Besides that the strength level is high also having several opportunities. On the SWOT analysis we try to find out the strength, Weakness, Opportunity and threats of Daily Prothom Alo.

Strengths Weaknesses

• Highly talented Editor • Promotional campaigns are not

• A dedicated team of employees attractive

•Authenticated published news • Silence to attact poor people who don't

have• Advertisement is relatively high

•purchasing powerBuying clientele is a particular section of the society• Cater to the demand of the

widest• Lack of attraction among housewives and

doctors

•

spectrum of readersDifferent sorts of marketing campaigns

As advertisement is high, space for news and otherfeatures arc gradually decreasing

including provision for awards • Numbers of readers of Bengali Newspapers of the

•Absence of real competition country are generally very low

• Literature page is not attractive• Distribution channel for overseas readers

is notvery effective

Opportunities

Threats

• Diversification in the other areas of

• Effective campaigning of other dailies

the media • Absence of strong promotional campaign

• Possibility of creating new • Future possibility of competition with the

dimension among the current and

electronic media

prospective readers • Chance of losing competitive advantage

• Still number one among all the and position of number one among the

Bengali dailies of the country Bengali dailies in the country

Source: On the basis of collected Data.

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6.1. Recommendations

6.1.1 Students of Public and Private Universities

"The Daily Prothom Alo" can introduce a new page for students of Universities in

Lifestyle tabloid, which is published every Tuesday. This page may include the

following. To increase circulation of the newspaper among the students of public and

private Universities.

6.1.2 Doctors, Nurses, Patients of Reputed Hospitals/Clinics Strategy

The Marketing Executives of "The Daily Prothom Alo" can visit doctors of the

following hospitals with complimentary copies of The Daily Prothom Alo " on every

Sunday to promote Health-page. Some selected hospitals/clinics are given below: 1.

IPGMR, 2. Dhaka Medical College Hospital, 3. Gana Shasthya Hospital, 4.

Suhrawardy Hospital, 5. Shishu Hospital, 6. CMH, 7. Bangladesh Medical College &

Hospital, 8. Central Hospital, 9. Ibna Sina Clinic, 10. Lab Aid Ltd., 11. Medinova

Medical Services Ltd.,12. Modern Diagnostic Center, 13. Popular Diagnostic Center-

Ltd., 14. Compath Clinic, 15. Holy Family Hospital, 16. Islamic Eye Hospital, 17. Al-

Razi Hospital, 18. Comfort Nursing Home Ltd., 19. Rashmono Hospital, 20.

ICDDRB, 21. Salinnillah Medical College Hospital, 22. Monowara Hospital, 23.

Paugu Hospital 4. Utrara Medical Hospital,

6.1.3 Lawyers Strategy

"The Daily Prothom Alo" can organize an open discussion about Human Rights on

World Human Rights Day in association with Supreme Court Bar Association in the

auditorium of Supreme Court in Dhaka. The Editor of "The Daily Prothom Alo "can

participate in this open discussion with lawyers.

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6.1.4 Housewives

To attract housewives, a quiz competition may be arranged. Moreover, effective

campaign among the housewives for reading "The Daily Prothom Alo "can be done.

6.1.5 Bankers

To attract bankers, more news on financial system of the country and also global trend

of change in financial system may be published. Besides, publishing the news on

exchange rate and share market regulates, more importance should be given on

providing latest news on global and domestic financial markets so that bankers can

gather up-to-date knowledge. As such business page should be redesigned, and made

attractive in accordance with the bankers need.

6.1.6 Other Programs

Special programs can be launched by "The Daily Prothom Alo " observing various

International days.

Table-12: Proposal for Organizing Programs

Date Special Occasion Proposal

3rd May World Press Freedom Day Organizing round table conference at Pressclub with the Journalists

26th June International Day AgainstDrug Abuse and antiTrafficking

Organizing seminars in association withCenter for Rehabilitation of Drug AddictionDistributing Stickers, Organizing rallies

20th November Universal Children's Day Organizing Cultural Program in associationwith Bangladesh Shishu Academy

21st November World Television Day Organizing dinner-party for different T.V.performers in association with different TVChannels

25th November International Day for theElimination of ViolenceAgainst Women

Organizing Seminars in association withBangladesh Mohila Parishad

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1st December World AIDS Day Organizing Round Table Discussion onAIDS/51'D Program

6.1.7 Promotional Campaign through TV Channel Strategy

"The Daily Prothom Alo" can organize Talk Shows in NTV or in any other private

TV Channel. The daily can associate its name with a part of news. It can associate its

name as "'The Daily Prothom Alo " Antarzatik khobor' through broadcasting as a

portion of the news of 11ty or any other private TV channel.

6.1.8 Promotional campaign through Print Media Strategy

"The Daily Prothom Alo” can promote its different types of new pages and also

special features by giving advertisement in Daily Star, Bangladesh Observer. The

advertisement can be given from the month of January 2009.

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7.0 Concluding Remarks

Quality improvement is a never-ending process. Although "The Daily Ittefaq" is one

of the reputed newspapers, currently "The Daily Prothom Alo" is enjoying a

competitive advantage. However, in case of a newspaper, a good marketing strategy is

required. And this is necessary for a Bengali newspaper in Bangladesh to make a

good headway business in Bangladesh. In the competitive world of the Journalism, a

daily that can only adjust with the changing demand of the newspaper readers and can

attain comparative advantage will be able to thrive. For successful marketing strategy

is not alone sufficient. It would be in effective unless market plan can be properly

implemented. Market research can create benchmarks and helps to ascertain increase

of circulation of the daily. This can also help to evaluate the success / failure of the

newspaper. It is important on the part of "The Daily Prothom Alo" authority to

evaluate the materials for the readers with a view to attract them and to adopt the

marketing strategy for better circulation.

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8.0 References1. AgarwaI,M.L.(2002): "Custumcr Relationship Managentent(CR)VU and Corporate Renaissance", South .-1sian Journal ofMcuucgcnxrnt,VoL9,No.2

2. Berkowitz,Eric N. et al.(2000):Markeling, Irwin-Mcgraw-Hill, NewYork, 5th edition.

3. Dertouzos, James N. and Trautman, William B. (1990):Economic Ef/eels of Media Concentration: Estimates front a Model of the Newspaper Firm.

4. Dillon,William A. et aL(1993):Essenticrls ojMur/ceding Research, Irwin-Mcgraw-I-fill, NewYork. Gross,Andrew

5. C. et aL(2000):Bct,rines•s Marketing, A.I.T.B.S. Publishers & Distributors(Regd.),Delhi, India. Hill, Charles W. (2002) : Globulizallar Business Tndar, Mcgraw-Hill Itwin, Newyork, 2nd edition. Evans, Joel R. and Berman, Barry (1952):fl4ar•keting, Macmillan Publishing Co-Inc., NewYork.

6. Imam, Mahmood Osman and Ali, Muhammad Mahboob (2000): " Database Management System for Retail Bank marketing: A conceptual framework", D. U.Journcrl 01 N/crr/ceting, Vol. No. 3

7. M. Faria, Ali, “Newspaper Marketing Strategy in Bangladesh: The case of Daily Star”, People’s University Journal (PUB), Volume -11, PP- 211-220, July 2005.

8. Waldfogel, Joel and George,Lisa (2003):"Who AJJects Whom in Daily Newspaper Markers.

9. Walker,Orville C. et al.(2000):Markeling Strategies-Planning and Implementation, Tata Mcgraw Hill Publishing Company Ltd., New Delhi, 3rd edition.

10. Schultz, Don (1993): Strategic Newspaper Marketing, INMA

11. Scott, Stines (2000)- The Last 3 Feet, IDEASMagazine, October, SFN Home Published Reports (2003): The Newspaper Marketing Plan.

12. Trivets, Jonathan : One stop Marketing, John Wiley & Sons, Inc., Singapore

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Internship Report (Roll-11 Marketing) Draft Copy (Prothom Alo)

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