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8/3/2019 Aaj Tak News Channels Success Story
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Aaj Tak News Channels Success Story
Submitted To : Prepared By :Dr. Vinit Mistri Anamika (1002)
Manoj (1009)
Rinkal (1010)
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INTRODUCTION
Logo
Parent Company India Today Group
Category News Channel Sector Media and Entertainment Tagline/ Slogan Sabse Tez USP Fast News
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CONT
Aaj Tak, a 24 hours Hindi news channel in India, was launchedin December 2000. Since then, the channel has maintained itslead news segment. The case explores the reasons for inviewership in the success of Aaj Tak.
It examines the background of the channel and thecircumstances that led to its launch. The case also draws acomparison between Aaj Tak and its competitors such as Zee
National, NDTV India (Hindi), Star News, and DD NewsSahara Samay
It also takes a look at the news channels market in India and atthe future outlook of Aaj Tak.
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ISSUES
Strategies adopted by a news channel to differentiate itself in acluttered market
Role of programming for success in crowded market Role of branding for success in a cluttered news channel
market.
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Aaj Tak Key Word Defined
"Aaj Tak redefined the whole concept of news which washitherto the prerogative of Star and Zee."
- Satyajit Sen, head, media buying, Grey Worldwide
Aaj Tak in the past few months has achieved unqualified successand has also been able to carve a distinct niche for itself in theworld of news. All brands that have advertised on Aaj Tak havebenefitted. Apart from providing a reach that is significant, thechannel has also been able to deliver quality audiences.
- Rajul Kulshreshtha, VP, Universal McCann
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Critical Success Factors
Aaj Tak remains Number 1 even though the number 2 keepschanging
Tez has complimented Aaj Tak and shows tremendous promisefor the future
Network Strategy helps in increasing the advertising rate
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Growth Factors
Domestic
Exploring more profitable niche segments within the news genre
Explore new formats such as Tez
International
Following success in the US exploring more markets with a sizeable
Indian Diaspora
Both Subscription and advertising revenue
Emergence of addressable distribution platforms
DTH
IPTV
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CONT
Subscription Revenue Subscription Revenue will compliment advertising revenue both
from domestic and international markets
A family spends Rs 600 on a weekend in a multiplex. Why not pay for
quality content for a month on TV ?
Radio
Acquire the groups radio business
Digital Platforms (Web & Wireless)
To transfer TV Todays and LMIs digital assets to a separate company
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SWOT Analysis
Strength: Though started as a programme
called "Aaj Tak" on national TV
soon turned out to start its own
private channel
Broad base of viewership
Nationwide and fast coverage
Distribute prizes to lucky viewers
answering simple questions
Claims to be #1 News channel in
India for so many years
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CONT
Weakness : Factual news and partial analysis Accused of serving news as entertainment many a times Consequences of "NEWS" shown Sometimes biased analysis Sometimes News on 'instant' basis due to competition pressure Not focusing on various governmental schemes for common
man on suo-motu basis
Concept of breaking news is redefined
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CONT
Opportunity : Can prosper by using large base of viewership properly Should focus more on government's new programmes and schemes to
educate viewers Need to come out of vicious cycle of what viewers want to see and what
channel is offering.
Threats : High switching rate of viewer Reduction in rate of intelligent viewers
Presenting news in filmy fashion is unacceptable to many viewers
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Potters Five Forces Analysis
Barrier to entry : High to moderate, legislations and cost of research
and development High sunk cost, high capital requirement, difficult to
access to distribution, steeper learning curve because of mature market.
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CONT
Industry competition: High, advantage gained through technology
and marketing strategies. Highly fragmented industry high fixed cost,
highly perishable products highly diversified rivals
Suppliers: Supplier power is low decreasing power of bargaining ofsuppliers due to increase in number of content providers.
Bargaining Power : Bargaining Power of consumers are high
consumers can switch channels. Inceased in number of variety of channel
due to globalization, availability of variety of alternative sources of
entertainment
Substitutes: High like film industry, sports events cricket live
matches ,print media, internet
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PESTEL Analysis
Political
In the early 1990s, the Government of India (GoI) allowed the entry of
private channels into the entertainment software industry.
Political interest increase because of the recognition of the media industry
economic importance to the overall economic growth of the country.
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CONT
Economic
Economic growth because of the corporate advertising spend in niche
areas also increased as companies could reach specific viewer segments
through these channels.
The growth of the industry is expected to grow by 16% in the current year
( 2-3% market share in television sector)
Social aspect :
The impact of intense media attention has brought about a more revolution
in the social aspect and created a society which is more enlightened and which
appreciates the industry.
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CONT
Technological advances
The technological advancement taking place in industry is high and this
calls for increased spending and research so as to be innovative in the
industry.
Legal environment
Legislations such as anti-piracy laws have been enacted and the
government tries to enforce the fully even though it is difficult. Aaj Tak has
to take legal action against Mumbai based newspaper called Khabrein Aaj
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