Analysis of Dainik Jagran

Written Analysis and Communication II

Group Report

On

“Analysis of Dainik Jagran

(Jagran Prakashan Limited)”

Submitted To

Prof. Gita Chaudhuri

By

Group A8

Abhinandan Misra (166002)

Nale Sunny Bharat (166085)

Sajal Gupta (166143)

Sakshi Babar (166145)

Subrata Mallick (166175)

On

4-12-2016

[pic 1]

“Approaches to Increase the Circulation of Dainik Jagran across India”

Presented to

Jagran Prakashan Limited

On

4-12-2016

By

Group A8

Preface

This project report has been prepared by a team of five first-year students from Indian Institute of Management, Udaipur – Abhinandan Misra, Nale Sunny Bharat, Sajal Gupta, Sakshi Babar and Subrata Mallick. The report is intended to serve two purposes – business and academic. The primary purpose of the report is to briefly assess the newspaper industry within the Media and Entertainment Industry in India, and consequently, study and evaluate a particular newspaper, viz. Dainik Jagran in this case from financial, economic, social, political aspects amongst others. After the analysis, the objective is to identify issues or opportunities within the concerned newspaper and provide recommendations to solve the issues or methods to realize the opportunities identified and present them to the top management.  

The second purpose is the partial fulfillment of the requirements for the subject – Written Analysis and Communication of the Post Graduate Program in Management at Indian Institute of Management, Udaipur in the second trimester of the academic year 2016-17. The study based on secondary data is aimed at developing and enhancing the scanning, selection, evaluation and information utilization skills of the participants involved in the preparation of this report.

Executive Summary

 Owned by Jagran Prakashan Limited, Dainik Jagran has an annual Average Issue Readership (AIR) of 16.37 million. Looking at the financial and physical indicators, it can be inferred that Dainik Jagran is a fast growing company and is one of the leaders in the Indian newspaper industry with high credibility amongst its readers.

Dainik Jagran, even though the most read newspaper in the country, is second in terms of circulation, lagging behind Dainik Bhaskar by almost 0.2 million. As per the SWOT analysis of Dainik Jagran, the newspaper has still not expanded into Central and Western states, areas where Dainik Bhaskar has constantly been growing its outreach. A comparison of the financial performance of the parent companies of Dainik Jagran – Jagran Prakashan Limited and Dainik Bhaskar – DB Corp Limited reveals that even though Jagran Prakashan is performing exceptionally well on the financial front, DB Corp is doing marginally better than its rival on some of the parameters which can make a difference in the rankings of the companies, and in effect the newspapers in the future. Hence, it is imperative for Dainik Jagran to expand into these states to sustain its position as the number one newspaper in terms of readership. This is an opportunity for the newspaper that has been unexplored.

The chief medium used for collection of data is the internet – websites, databases, e-sources, reports amongst others. These include Indian Readership Survey 2014, Capitaline, Annual Reports of Jagran Prakashan, DB Corp; BBC Reuters, etc. and social media platforms such as Facebook and Twitter.

It is recommended that Dainik Jagran should expand out to the central and western parts of the country to increase its circulation and retain its position as the most-read newspaper in the country. There is a large readership base in Central and West India especially which could be leveraged by Dainik Jagran based on its repute across the country. This way the newspaper can rope in existing readers of the Hindi newspapers. SEZs like Sanand, Gujarat and Hinjewadi Region, Pune can be explored to reach out to the untapped markets and consumers.

1. Table of Contents

Chapter 1: Introduction        3

1.1 Industry Profile        3

1.1.1 Media and Entertainment Industry        3

1.1.2 Newspaper Industry        3

1.2 Company Profile        4

1.2.1 Performance of the Company        4

1.2.2 Mergers and Acquisitions        5

1.2.3 SWOT Analysis        6

1.3 Opportunity Identified        6

Chapter 2: Approach and Methodology        7

Chapter 3: Observations and Findings        9

Chapter 4: Recommendations        10

Exhibits        11

Exhibit 1: Segments of Media and Entertainment Industry (2016)        11

    Exhibit 2: Sources of Revenues – Newspaper Industry        11

Exhibit 3: Share of newspapers by language (2014)        12

Exhibit 4: Key Financial Figures – Jagran Prakashan        12

Exhibit 5: Financial Comparison of Jagran Prakashan Limited and DB Corp Limited        12

References……………………………………………….……………………………………….13

Annotated Bibliography……………………...…………….…………………………………….19 

Introduction

1. 1.1 Industry Profile

1. 1.1.1 Media and Entertainment Industry

The Media and Entertainment (M&E) Industry in India is one of the fastest growing sectors of the economy. The industry is roughly split into nine segments – television, gaming, animation and VFX, out of home (OOH), music, digital advertising, radio, films and print (Exhibit 1). The sector is expected to grow at a CAGR of 14.3 per cent by 2020 with revenues reaching INR2.26 trillion (Media and Entertainment Industry, 2016). The largest share of this industry is occupied by the television sector with a share of 46.92 per cent (Entertainment, 2016) and growing at an expected CAGR of 15 per cent. The second largest share is of the print media at 23.21 per cent, which is expected to grow at a CAGR of 8.6 per cent. Though digital advertising is currently the fourth largest segment behind films, it is expected to grow the fastest, at a CAGR of 33.5 per cent and become third largest by 2020 with a 16 per cent share (Media and Entertainment Industry, 2016).  The Government of India has provided constant support to the sharply growing M&E industry by undertaking several measures such as increasing FDI limit from 74 per cent to 100 per cent in digital cable networks and up to 49 per cent in news channels and FM radio (Bansal & Choudhary, 2016). The government also enabled the digitization of the cable distribution sector and imparted industry status to the film industry to improve institutional funding to the sector.