National Publishing Company (Repaired)
This evaluation in the publishing industry and the targeting of audiences explains to us the basic but wholesome understanding of STP used in marketing using Social focus groups. This is based on class discussions at IMT Ghaziabad.
Published on: Mar 3, 2016
Transcripts - National Publishing Company (Repaired)
National Publishing Company Marketing of Children’s Fortnightly MagazineCompany: ADVANTAGE OF HISTORICAL PEDIGREE: A leading company with several years of experience in printing and publishing industry. The fact that some of the publications were leaders in market category points to the fact that they must have captive audiences. Also in newspapers and magazines customer retention is built up gradually.Distribution Channel:The distribution of National Publishing Company’s publications is effected through a chain of agents and sub-agents located in all important places. High volume of sales through door-to-door delivery. i. ADVANTAGES: High market penetration and distributors will cater only to the desired product. Has upto 3000 agents and sub-agents. ii. DISADVANTAGES: Loose out on occasional readers which are catered by PAAN – BEEDI types of shops. Also results in high commissions. Distribution to shops which also sell other magazines. o ADVANTAGES: results in targeting of occasional readers, expanding the market reach. o DISADVANTAGES: Results in dilution of agent – subagent loyalty because of selling of assorted products. Absence of subscription schemes and discounts for direct delivery of magazinesTitli : The Product under considerationFortnightly, Vernacular, priced attractively at Rs. 10/-, has a market share of 45% in households withexposure to English as well as Vernacular magazinesTargeted age group: 5-12 years. But even prepubescent teens and teens up to 14 years enjoyed it.Contents: 2/3 short stories – with a moral dimension to cater to age groups of 12-14 years and generally illustrated. They enjoyed moderate approval ratings averaging about 28% (Exhibit 7) 3/4 long stories – serialized in continuous as well as stand alone formats. 1/2 serials - 2/3 short poems – generally contributed by readers (Annexure 1) 7/8 regular cartoons including 2-3 serialized cartoons - These had highest approval ratings amongst all segments. The one such as “Friendly Ghost” had 80% average preference shares amongst all age
groups (Exhibit 7) . Generally illustrated and serialized. Stand alone as well as continuous in flow. Had wide range – from informational to moral. The diversification in contents catered suitably to all of the age groups. Tit bits – included informational items catering to higher age segments like strange facts, assorted info. Nuggets etc. Fun games – activity based features. No colors – This could have possibly leaded to low interest in the targeted segment (between 5-7 years). 1 story for beginners and young readers – With bigger type font, illustrated and color. Targeted for 5-7 years. Read aloud short story for the benefit of those who could not yet read – written in rhyming language This segment was least approved by all readers averaging about 2% amongst all age groups (Exhibit 7). It possibly made “Titli’ as reported in Focus group findings as “ Light, not-thought-provoking’ reading. Picture Story Letters to editors and answers to various quizzes, games and competitions SALIENT FEATURES OF MARKET AND COMPETITION OFFERRED:The competition and the percentage of market share of Titli is depicted in the following timeline diagram. --------------------------------------------------------------------------------------------The no. of family members in a family with children ranged mostly between 3-5 members. The percentage ofthese household is 68% in the state where Titli is published. The same is depicted in the following graph. 80 60 Urban Primary School 40 Rural Middle School 20 Total High School 0 1-2 3-5 6-8 >8
SALIENT FEATURES OF MARKET RESEARCH STUDY: The first phase of study consisted of a survey to understand the profile and reading habits of the readers while the second stage consisted of focus group discussions to understand the attitudes, needs and expectations od children as well as those pf parents. High Awareness of the magazines amogst parents :- Compared to 31% recall rate for nearest competitors, this was around 76% for Titli. Purchase Pattern was skewed towards vernacular magazines:- Most of the targeted audiences were engaging in buying vernacular magazines as shown by the exhibhit 3. There was a high recall rate amongst first time buyers :- This is evidenced by the fact that almost 70% of buyers were considered as regulars whilst amongst those who brought other magazines also, around 80% considered TITLI in their repertoire. The purchase pattern of Titli was more or less divorced from the household income as all the households considered this as a must include:- This is more evidenced from the fact that the buying pattern for English magazine ranged sharply from 4% for those earning below Rs. 20,000 to around 29% in the households earning more than Rs. 80,000 monthly. Very High Lapse Rate amongst the target audience but this was not accompanied by migration to other brands in the competitor segments:- Around 45% of the respondents were found to have discontinued the magazine but they did not migrate to other brands. The main reasons for these were:- Reasons for lapse of Titli Affect studies Can borrow from library or neighbours Expensive Not interested Outgrown Availability problems Other magazinesSALIENT FEATURES OF FOCUS GROUP STUDY:The study indicated that there were three stages in the life cycle of magazine reading with variations inattitudes, interests and expectations as shown:-
Stage of Active Promotion ( for age group 7-9 years) As reading was a secondary activity to playing with a peer Parents actively encourage the children to read and group. they actually looked for pictures, games, coloring purchase of magazine initiated by parents and offers of gifts, prizes and posters. Stage of Passive Approval (for age group 10 -12 years) High interest in chidren themselves towards reading Here the choice of children themselves was paramount.. accompanied by approval not yet discouraging, by parents. The main features interesting to students were moral but High level of interest in reading meant popular exchange. increasingly general knowledge, sports information etc. Stage of active control (for age group 13-15 years) the students relished reading most, but had less time on Parents regularly imposed restrictions on reading and other disposal. Preffered thought provoking and realistic stories leisure activities as readindg was to have a high impact on character buildingIn Mature stage of its Life cycle with a stable maturity s