Marketing Practice of two publishing houses

In

Bangladesh

1

Course: MKT I0I

Submission Date: 2-I2-20II

Prepaired By:

Name of the Student’s ID NumberMD. Arif Khan 2011-1-10-326

Muhammad Fahad 2011-1-10-406

Anup Roy 2011-1-10-204

Rezwan Hasan Alvi 2011-1-10-205

Group Leader: MD. Arif Khan [azAan]

Prepaired For:

Mashruha ZabeenLecturer

Dept. of Business Administration

East West University

LETTER OF TRANSMITTAL

2

April 5, 2012Mashruha ZabeenLecturerDept. Of business AdministrationEast West University

Subject: Submission of Assignment

Dear Mam,

We are very pleased to submit this Assignment to you. The assignment is on “Marketing

Practice of two publishing houses In Bangladesh” as you have authorized us in this

semester.

We are honored to prepare this assignment under your guidence since it gave us the

opportunity to how to solve a case as well as different topics of Marketing.

We tried our best to accumulate the information for you as comprehensive as possible.

Sincerely Yours,

MD. Arif Khan # 2011-1-10-326 _ _ _ _ _ _ _ _ _ _ _

Muhammad Fahad # 2011-1-10-406 _ _ _ _ _ _ _ _ _ _ _

Anup Roy # 2011-1-10-204 _ _ _ _ _ _ _ _ _ _ _

Rezwan Hasan Alvi # 2011-1-10-227 _ _ _ _ _ _ _ _ _ _ _

Acknowledgement

3

We would like to express our gratitude and indebtedness to our honorable faculty ,

Mashruha Zabeen mam , Lecturer, Department of Business Administration, East West

University. With her inexhaustible guidence, valuable advice, continuous inspiration

constructive critisism and generosity she helped us to carry out this assignment

successfully.

We would also like to express our gratitude to the publishers, employees, writers, buyers

and readers of the Anannya and Asia publications for helping us to gather all the necessary

information.

Finally, we would like to thank all group members that directly or indirectly helped us to

provide and accumulate all the necessary information for the accomplishment of this

assignment.

Executive Summery

4

This study aims to examine and review efforts taken by two Bangladeshi publishing houses towards the marketing of books in the country. In addition, a comprehensive appraisal of the historical background that shaped the later developments in the trade is also presented because the early years set the contexts of the development of the book trade in Bangladesh. Next, the environmental appraisal of factors in the current situation and how these factors each pose threats or opportunities are studied in terms of their impact on the trade. To achieve the objective of studying the marketing strategies of Bangladeshi publishing houses, a comprehensive questionnaire survey by our group members was conducted as an instrument to gather the necessary data on two publishers and distributors of books in Bangladesh which are Anannya and Asia publication. The findings indicate that production of educational books is the mainstay of Bangladeshi book publishing and these books are the main source of income for most houses. Government policies especially in the educational system have become the major instrument in encouraging the growth of indigenous book publishing during the post-Independency ears. The government is thus found to be rather influential on trends developing in the trade. Its actions lay emphasis on locally written and published books and have minimized dependence on imported publications. The other results of this study also show that in terms of usage of marketing research, these two houses generally have a high awareness of marketing and marketing communications. This awareness is generally applied advantageously by other houses as well. With regard to the study of marketing practices, the approach includes the analysis of the 4Ps of the marketing-mix. When these practices are examined, it is concluded that the houses regard sales promotion, advertising, personal selling as important tools and they are utilized continuously. This two publishing houses, especially among the larger and well organized establishments, have a high level of awareness and knowledge of marketing communications and have applied this capability to their advantage.

1.0 Introduction

5

Book is considered as the best friend of human being and unsurpassed source of knowledge.

Reading book is a hobby for most of the people across the world and best media for enhancing

knowledge and passing leisure time. At present, there are about 160 publishers are available in

our country and doing their business quite comfortably. Among them 50 publishing houses are

much renowned across the country. In comparison to the big population it is becoming a huge

market for the publishing houses.

Publishing is the process of production and dissemination of literature or information — the

activity of making information available to the general public. In some cases, authors may be

their own publishers which means, originators and developers of content also provide media to

deliver and display the content for the same. Traditionally, the term refers to the distribution of

printed works such as books (the "book trade") and newspapers. With the advent of digital

information systems and the Internet, the scope of publishing has expanded to include electronic

resources, such as the electronic versions of books and periodicals. Publishing includes the

stages of the development, acquisition, copyediting, graphic design, production – printing (and

its electronic), and marketing and distribution of newspapers, magazines, books, literary works

and other works dealing with information, including the electronic media.

Every publishing house is trying to provide as much facilities as possible to do marketing

campaign in many ways they have available in their hand. Anannya and Asia publications have

formed a huge demand in this sector. And these two publishers has more than 80 thousand

readers across the country.

1.1 Introduction of the report

6

Each professional degree needs practical knowledge of the respective field of discipline to be

fruitful. Our BBA program also is similar, relating to the exchange of theoretical knowledge into

the real life practical situation. The report entitled “Marketing Practices Of publishing houses

in Bangladesh: A case study on “Anannya and Asia publication”. The main purpose of the

preparation of the report understands the practical knowledge about Marketing mix, STP, Macro

environment analysis and the SWOT analysis.

During the course, we were under the supervision and guidance of Ms Mashruha Zabeen Mam, Lecturer, Dept. Of business Administration, East West University.

1.2 Objectives of the report

Main Objective:

The main objective of this study is to prepare a paper on the specified topic implementing the

knowledge that has been gathered over the semester at the East West University-Bangladesh.

Specific Objective:

The Objectives of this report are:-

To give a clear idea about these two publishing houses [Annanya and Asia publications]

To understand the SWOT & 4P processes involved with the these two publication houses

To Analyze the Macro Environment of these two publication houses

And to provide sweat able recommendations to these publishing houses

1.3 Methodology

7

Project Design:

At first we got the report design and structure from our academic supervisor and moved for the

next steps.

Data Collection:

To prepare this report we had to collect data from both primary and secondary sources-

Primary Data:

Discussion with officials of Anannya and Asia publications

Discussion with the buyers and readers of the of these two publishing houses

Discussion with the distributors of these publishing houses

Secondary Data:

Different Daily Newspaper

Through web searching

Different Adds by these publishers

1.4 Limitations

The Study was limited by a number of factors. Some Constraints are given below:

Limited Source of Data Lack of Co-Operation from the official from confidential Point of view. Time was also limited to prepare the report.

Publishing As A business

8

Derided in the 1911 Encyclopedia Britannica as "a purely commercial affair" that cared more

about profits than about literary quality, publishing is fundamentally a business, with a need for

the expenses of creating, producing, and distributing a book or other publication not to exceed

the income derived from its sale.

The publisher usually controls the advertising and other marketing tasks, but

may subcontract various aspects of the process to specialist publisher marketing agencies. In

many companies, editing, proofreading, layout, design and other aspects of the production

process are done by freelancers.

Dedicated in-house salespeople are sometimes replaced by companies who specialize in sales to

bookshops, wholesalers and chain stores for a fee. This trend is accelerating as retail book chains

and supermarkets have centralized their buying.

If the entire process up to the stage of printing is handled by an outside company or individuals,

and then sold to the publishing company, it is known as book packaging. This is a common

strategy between smaller publishers in different territorial markets where the company that first

buys the intellectual property rights then sells a package to other publishers and gains an

immediate return on capital invested. Indeed, the first publisher will often print sufficient copies

for all markets and thereby get the maximum quantity efficiency on the print run for all.

Some businesses maximize their profit margins through vertical integration; book publishing is

not one of them. Although newspaper and magazine companies still often own printing presses

and binderies, book publishers rarely do. Similarly, the trade usually sells the finished products

through a distributor who stores and distributes the publisher's wares for a percentage fee or sells

on a sale or return basis.

9

The advent of the Internet has therefore posed an interesting question that challenges publishers,

distributors and retailers. In 2005, Amazon.com announced its purchase of Books urge and self

sane publishing, a major print on demand operation. This is probably intended as a preliminary

move towards establishing an Amazon imprint. One of the largest bookseller chains, Barnes &

Noble, already runs its own successful imprint with both new titles and classics — hardback

editions of out-of-print former best sellers. Similarly, Ingram Industries, parent company of

Ingram Book Group (a leading US book wholesaler), now includes its own print-on-demand

division called Lightning Source. Among publishers, Schuster recently announced that it will

start selling its backlist titles directly to consumers through its website.

Book clubs are almost entirely direct-to-retail, and niche publishers pursue a mixed strategy to

sell through all available outlets — their output is insignificant to the major booksellers, so lost

revenue poses no threat to the traditional symbiotic relationships between the four activities of

printing, publishing, distribution and retail.

History of Book Publishing

10

   

Puritans to Pirating

Once America was colonized, printing press technology moved from Europe to "the new world."

One of the earliest and most notable books was The Bay Psalm Book, printed 1640 by the Puritans. The Puritans were a religious group that settled in Cambridge, Massachusetts. They used their printed literature to promote and support their austere religious perspective. (Puritanical, a term derived from Puritans, now connotes people who are ultraconservative, super-religious, and prudish — which would seem to summarize this group's writings.)

The next book of historic note is Poor Richard's Almanac, written and published by Benjamin Franklin. Franklin published books, newspapers, and pamphlets, some of which got him into trouble with people who weren't used to being criticized in print. You may recall that Franklin also achieved fame in early America as an inventor and an influential political figure.

The Penny Press Era

By the mid-1800s there were many book publishers in America, and as a result the cost of books quickly dropped.

This period also saw the beginning of many newspapers, some of which still exist. Competition quickly drove the price of newspapers down to the point that some sold for one-cent each. (We'll discuss newspapers in an upcoming module.)

Lower publishing costs also meant that books were no longer reserved for the rich. By this time public education had also become commonplace, which meant that a growing percentage of people could read. Soon, the reading of books began to catch on with the general population.

By 1880, about one-third of all books published were paperbacks. These sold for between five and fifteen cents each. Most of the content of these paperbacks was pirated (illegally copied without compensation to the original author and publisher) from best-selling books being published in Europe.

During this time, American book publishers shunned American authors (who they would have to pay) in favor of the free content (they could steal) from the European writers and publishers.

11

Not unexpectedly, complaints ensued — complaints that in 1891 brought about the enactment of new copyright law. The law not only protected European writers and publishers, but forced U.S. book publishers to come up with their own original work. This helped launch the careers of many American authors.

Webster's Dictionary of the English Language, first published in 1836, provided a needed standard for English, and the Encyclopedia Americana became the standard source of information on just about everything.

It was about this time that Uncle Tom's Cabin, which we mentioned in the last module, was published and established the power that a book could have over popular thinking. Many feel that this book was a catalyst for the Civil War.

By the 1900s, book publishing had become highly commercialized. Companies such as McGraw-Hill, Pocket Books, and Bantam Books arrived on the scene, and book clubs such as the Book-of-the-Month Club were founded during this era.

Books had caught on with the masses.

But, some of the masses were not entirely happy with what they were reading. Books introduced

new ideas and values into the cultural milieu. There were some people who felt that these ideas

would debase society as well as their personal beliefs, and so they organized efforts to ban books

they personally found objectionable.

12

Book Publishing In Bangladesh: The Prospects

Bangladesh emerged as an independent nation in 1971 with the supreme sacrifice of millions,

with the tears of hundreds of thousands of mothers and sisters, with the honour of thousands. A

war for liberation soaked with bloods of millions of peasants, workers, students and the toiling

persons gave birth to Bangladesh. About two decades before the war for liberation, in 1952, the

Bangalees made supreme sacrifice for Bangla, our language, in the Great Language Movement.

It is a rare example in the annals of humanity. On this auspicious occasion, I pay homage to all

the martyrs, the brave daughters and sons of my country. Their sacrifices have made today's

journey of their posterity lighted with the dreams for democracy and liberty, equity and

fraternity, tolerance and mutual respect.

In this globalized world, countries connected with exchanges, all cultures and languages are the

proud property of all humanity. Bangla, our language, carries a rich heritage and history, a

history of more than a thousand year. The language went through dark and enlightened ages

along with the evolution and development of society and economy. There were period of

decadence and period of rejuvenation. Charjapada, is the only book available from the early

period of the Bangla literature. The middle age, comparatively longer, produced a lot, lots of

stories told through poems depicting human and gods. The gods dominated the stories though

these were created by the humans. There were love and devotion for the deities and gods. The

modern period made human its central character and the gods went beyond the limelight. Human

dreams and demands, pains and passions, conflicts and currents started dominating the world of

Bangla authors. The Bangla language received the loving touch of Madhusadan, the rebel epic

maker who broke into pieces a myth and brought forth the pains of modern man, Tagore and

Nazrul, the rebel poet and many others. The songs from the lives of the toiling masses started to

reverberate the world of the Bangla literature. The common masses found authors who talked the

commoners' stories. There were Tarashankar, Manik Bandopaddhay, Sukanta Bhattacharya and

others. Prose became bold. Books, magazines and journals started to spread. But the dominating

system acted as a block to its spread among the masses and the publishing endeavour failed to

13

turn into industry. These were in the colonial days. The exit of colonial masters in 1947 could

not change the scenario.

The Great Language Movement ushered in new possibilities. But the same story of inequity

hampered the development of the publishing industry. The development of the industry depends

on many factors including level of literacy, living condition and the dominating pattern of

economy. Despite the reality it was the determined efforts of a number of individuals that kept

the publication business alive in the pre-independence days.

The independent Bangladesh opened newer opportunities. The February Book Fair in Dhaka, the

biggest book-event in Bangladesh in memory of the Great Language Movement, helps run the

publishing endeavour. Chitta Ranjan Saha initiated this book fair in 1972. The computer and

digital technology that came in the 1980s in the job of printing in Bangladesh opened up

opportunities for producing books with better quality.

But there is uneven competition created by the uni-polar globalization. There are hurdles put by

the present one track flow. The books produced with bigger capital, the marketing of these books

carried with bigger money across the frontier make the enterprise of Bangladeshi publishers

difficult. I, one of the office bearers of the publishers' association in Bangladesh, know the

hardship publishers, especially the younger and smaller publishers have to face for producing a

nice book. There are the rising prices of raw materials mostly dependent on the global market. I,

as one of the publishers, know the hardship that has to face to make a web site for marketing of

books. Only a colourful, well-bound book does not attract a reader. It is its substance that makes

it attractive and the substance is produced by, in broader sense, the society, and in particular, the

author. Readership and authors are integral parts of publication enterprise and both of them

depend on society and economy. Persons living with less than one euro cannot dream of

purchasing a book. Persons toiling for 12 hours cannot dream of spending a few hours for

reading a book. Persons unemployed cannot plan purchase a book. And, thus they find it difficult

to help sustain a publishing house and an author. Can an author depend on this readership and

concentrate efforts for producing a better book? Moreover, there is the ever present threat of

stagnation in the global economy and the threat of the structural restructurings prescribed by the

Bretton Woods institutions that de-industrializes and ultimately cuts down readership. Piracy in

many countries is an old story told by many that I do not like to repeat. A pirated copy of Harry

14

Potter in a book store or with a vendor standing at a road crossing in a Third World country is

not a rare scene. This cuts down the competitive edge of publishing houses and harms the

national exchequer. As a modest publisher I always feel threatened by these factors of

uncertainty. Each day, it is my permanent concern that shall I have to shut down the doors of my

shop? It is not only my concern. All the younger, modest publishers have the same feeling of

fear that grows from the global environment of neoliberalism and piracy.

Despite this fact of life the publishing industry in Bangladesh is carrying on its efforts that is

amazing and that reflects the deep laying seeds of prospects. Hundreds of books are being

produced by the Bangladesh publishers every year. The readership is increasing gradually.

The nourishment and patronization needs to be widened. "It is to books", Gorky told about 80

years ago, "that I owe everything that is good in me". Books help spread ideas, help widen

mental horizon and create environment of tolerance. Books help spread enlightenment in the

dark caves of irrationality and literacy and library movements help spread books and build up

readership. These in turn assist author and publishing industry. An education system based on the

values of democracy also helps sustain publishing industry by spreading the ideas of free

expression and tolerance.

15

Organization Profile

Anannya Publication:

With the slogan, “Best Book of best Writers”, Anannya Publication has published around 736 books of 151 authors so far. The publishing house aims to combine education with enjoyment. Anannya also wants to generate global interest in Bangla literature through translations.

Anannya is one of the leading publishing houses in Bangladesh. It publishes educational, academic and scholarly books -- both in English and Bangla. The publishing house was set up in 1978, and has its main office in Dhaka, with a branch office in Chittagong. Anannya has been instrumental in encouraging reading habit in the country.

Md. Abdul Malek, publisher and chief executive officer of Anannya Publication, elaborates on the publishing house's achievements:

“We have published (in English and Bangla) essays, poetry, novels and research works on political history, economics, environment, agriculture, gender issues, the Liberation War etc. I have always tried to use my skills in publishing to popularise books on our culture, traditions and history.”Anannya Publication has brought out several works by veteran writers and academics -- Abu Rushd; Dr. Anisuzzaman; Professor Kabir Chowdhury; Anisur Rahman; Mahfuzur Rahman; Hasnat Abdul Hai; Justice Golam Rabbani; Rashed Khan Menon; Anu Muhammad; Shamsur Rahman; Syed Shamsul Haq; Dr. Abdul Matin; Biprodas Barua; Abul Kasem Fazlul Haq; Dewan Shamsul Arefin and Urmi Rahman, among others.

“We have a series of publications on the Language Movement (in Bangla and English). Moyurakkhi is one of the oldest bbok published by our publication house and it was publishe in 1990.Noted poet Abdul Mannan Syed edited the series. Recently we published about six books of literary works, titled“Gonomaddhome Bangladesher Muktijuddho” by Muntasir Mamun.highlighting fiction by iconic writers Mir Mosharraf Hossain, Sharat Chandra Chattopadhyay, Bibhuti Bhushan Bandapadhya, Kazi Nazrul Islam, Buddho Dev Bose, Satinath Bhaduri and others. Dr. Anisuzzaman has edited the works,” says Malek.Some voluminous publications also enhance Anannya's reputation, such as Justice Muhammad Habibur Rahman's “Tagore, Ibsen and Other Essays”; Zillur Rahman Siddiqui's “Bangla Literature and Other Essays”; Syed Shamsul Haq's “Neel Dangshon” (“The Blue Sting”, translated by Kabir Chowdhury); Selina Hossain's “Life is Beautiful”; Anu Muhammad's “Orokkhito Desh, Orokhito Manush”; Haroonuzzaman's “Bengali Bauls Series” and Murtaja Baseer's collection of selected poems, titled “Fresh Blood, Faint Line”.

16

Anannya has also published works by promising writers including Saymon Zakaria, Shahnaz Munni, Kabir Chan and Ahmed Mustafa Kamal.

The house regards editing to be crucial. “We have a skilled editorial board, which comprises noted academics, scholars and writers. Before publishing a book, we send the documents or manuscripts to the editorial board for close reviews.

“My main concerns are the quality of the books, their images and illustrations. Badly edited works are likely to mar the reputation of the publishing house. I also feel that we need better translators. We need to establish an institution that can provide efficient editors and publishers,” says Malek.

Asia publication

Asia publication started their journey from 1990. As an old publishing house while starting their

business they didn’t have needed any market research for starting the business. Their main

objective is to provide best books with best writing and creating more readers of their publication

house.

Md. Saiful Islam Publisher and chief executive officer of Asia Publication said as Mr. Malek

publisher of Anannya publication that “We have published (in English and Bangla) essays,

poetry, novels and research works on political history, economics, environment, agriculture,

gender issues, the Liberation War etc. I have always tried to use my skills in publishing to

popularize books on our culture, traditions and history.”

Every year, especially during the occasion Ekushey Boi Mela they publish different books of

different categories by veteran writers and academies.

Some published books by Asia publications are Antorer Manush, Hajj Omrah O Swastho Kotha,

A Juger Rupchorcha,Kobitasomogro 1, Loadsheading Namiache, Manush Boro Crondon Jane

Na,Casha Bhuoshar Kabbo,Kishur Goenda O Bhoyongkor Rohosso,Sera Science Fiction,Pachti

Kishor Adventure UponnashRoconasomogro 1,2,3 ,Muslim Monishider Jibon

Kotha,Bangladesher Orthonitir Obvontorin Citro,Bangladesher Rajniti : Ekattor Theke

17

Atannobboi By some famous writers Sa'dot Ali,Jibananondo Das,Emdadul Haque ,Abul

Khair,Muslehuddin,Ali Imam,Bulbul Choudhury,Hasan Hafiz,Nirmolendu Gun,Rejauddin

Stalin,Anu Mahmud,Fazle Ahmed,Mahadeb Shaha,Mostafa Kamal,Ekhlasuddin Ahmad,M.

Tajul Islam,Showkat Ali,Sajjad Kadir,Bhobesh Ray,Ataur Rahman.

With the words of Malek, Saiful said that they follow the same process during publication. They

regards editing as the crucial part of publication process. He also said that they have also a

skilled editorial board, which comprises noted academics, scholars and writers. Before

publishing a book, we send the documents or manuscripts to the editorial board for close

reviews.

Mr. Saiful said that quality of the books, their images and illustrations are their main concern.

Badly edited works are likely to mar the reputation of the publishing house.

18

SWOT Analysis of ANANNYA and ASIA Publication

Beneficial Harmful

Internal Strength Good Reputation Low Possibility of losses Strong Channel Quality Of management Loyal customer Base An educated team

management Good quality books,

written by good writers

Weakness Lack of brand appeal in

rural areas Lack of promotional

activities Lack of communication

with authors Low capital Doesn’t get benefited

by attractive advertisement

Lower number of human resource

External Opportunities New technology Rising of new readers Increasing literacy rate Mass education Cultural Influence Increasing number of book

fair

Threats Price Conscious

customers Lower production cost

of competitors Lack of raw materials Political instability Dissatisfaction of

customers

19

Marketing Mix [4Ps] Of Anannya and Asia Publication

It’s Consist4P’s.They are-

20

Product

Variety Quality Design FeaturesBrand Name

Packaging

Price

List Price Discount AllowanceCredit Terms

Promotion

Advertising Sales Proportion Public Relation Personal Selling

Macro environment

Demographic Environment:

Both publication, Annannya and Asia Describe their strategies and effects of demographic environment on their business to us. They think that the age, gender, ethnicity, income and occupation of the consumer and customer effect on their business. On the basis age they divide their books in three categories kids, young and aged people. On the basis of income they publish two different types of books which have different cost that effect on price. One is Paperback and another one is Hardback. Consumer buyer behavior has a strong effect on their business.

Economic Environment:

Economic environment is the factors that effect on the consumer purchasing power and spending patterns.

Effect of economic environment on anannya publication:

In terms of changes in income and income distribution anannya publication divided the economic environment into two classes

1. Upper class2. Working Class

And Asia publication has devided the market into-

1. Middle Class2. Working Class

21

Place

Channels

Coverage

Assortments

Locations

Inventory

Transportation

22