Project Report on Marketing Matrics Analysis of Hindustan

7/31/2019 Project Report on Marketing Matrics Analysis of Hindustan

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PROJECT REPORT ONMARKETING MATRICS

ANALYSIS OF HINDUSTAN


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COMPANY PROFILE :

The Company was incorporated on July 9, 1918 under the Indian Companies Act, 1913

as a public limited company under the name 'The Behar Journals Limited' and receivedthe certificate of commencement of business on January 14, 1919. On November 17,1987 the name of the Company was changed to 'Searchlight Publishing House Limited' toreflect to make the name of the Company more in consonance with its publication,'Searchlight'. Subsequently, the name of Company was changed to its present name'Hindustan Media Ventures Ltd.' to reflect the expanded business activities intended to beundertaken by the Company and to be in consonance with the prevailing industry trendsand a fresh certificate of incorporation to this effect was issued on November 11, 2008.

Year Event

1918Incorporation of our Company as The Behar Journals Limited' by individualsincluding Dr. Rajendra Prasad, Mr. Sachidannand Sinha and Mr. Syed HassanImam, who were the founder Directors of our Company.

1919Commencement of business of our Company.Commissioning of printing press at Patna.Commencement of printing and publishing of English newspaper, Searchlight'.

1947 Commencement of printing and publication of Hindi daily Pradeep' at Patna.

1986

Commencement of printing of Hindi daily Hindustan' and the English dailyHindustan Times' on behalf of The Hindustan Times Limited' at Patna.Termination of printing and publication of the Hindi daily Pradeep' and the Englishdaily Searchlight'.

1987Name of the Company changed to Searchlight Publishing House Limited', in orderto capitalize on the name earned by its publication Searchlight'.

2000Commencement of printing of Hindi daily Hindustan' and English daily HindustanTimes' from Ranchi location, in terms of a printing agreement with the holdingcompany and publisher of the said publications The Hindustan Times Limited'

2008 Name of the Company changed to Hindustan Media Ventures Ltd.', so as to reflectthe expanded business activities of our Company.

2009

Acquisition of Hindi business from HT Media comprising of Hindi dailynewspaper, Hindustan' including Ravivasriya Hindustan'; magazines Nandan' andKadambini'; and internet portals of the said publications, including all assets,liabilities and employees pertaining to the said Hindi business.

2010 The Company came out with an Initial Public Offering (IPO) of shares,aggregating Rs. 270 Cr., and got listed on BSE & NSE on 21st July, 2010


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PRODUCT PORTFOLIO :


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STRATEGY:


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FACTS ABOUT THE COMPANY:

Readership Over The Years


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INCREASING READERSHIP IN BIHAR :

INCREASING READERSHIP IN U.P. : (AGAINST COMPETITORS)


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MASSIVE GROWTH READERSHIP IN THE LAST TWO YEARS : (AGAINST COMPETITORS)


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BrandUnitsCirculated

MarketShare

AnnualGrowth

(in millions)Hindustan 4.5 46.30% 29%

Amar Ujala 2.8 28.80% 8%Dianik

Jagran 2.4 24.90% 2%Total 9.7 100.00% 39%

Total Market Share in U.P.Unit Market Share :

Unit Market Share (%) = Unit Sales / Total Market Unit Sales= 4.5/9.7= .4630 = 46.30 %

Relative Market Share: Relative market share indexes a firms or a brands market shareagainst that of itsleading competitor.

Relative Market Share = Brands Market Share /Larges t Competitors Market Share= 2.8/9.7= .2880 = 28.80%

Market Concentration: The degree to which a relatively small number of firms accountsfor a large proportion of the market. This is also known as the concentration ratio. It isusually calculated for the largest three or four firms in a market.

Three (Four) Firm Concentration Ratio: The total (sum) of the market shares held by theleading 2competitors in a market.

Market Concentration: If we add up Hindustan, AU=46.30 + 28.80 = 75.1%

Brand Development Index (I) = Brand Sales to Group /Households in the Group

Total Brand Sales/Total Household

The all over circulation of Hindustan all across India is 34.2% as other competitorsarise in different markets.Hence

46.30/10034.20/100

= 1.35


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It signifies that Hindustan is a better brand in U.P. than the all over market.

Category Development Index (I) The brand and category development indexes are useful for understanding specificcustomer segments relative to the market as a whole. Although defined here with

respect to households, these indexes could also be calculated for customers, accounts,businesses, or other entities.

Category Development Index (I) = Category Sales to Group /Households in Group

Total Category Sales/Total Household

Purpose: To understand the relative performance of a brand or category withinspecified customer groups. The brand and category development indexes help identify strong and weak segments(usually, demographic or geographic) for particular brands or categories of goods andservices.

Penetration: Penetration is a measure of brand or category popularity. It is defined asthe numberof people who buy a specific brand or a category of goods at least once in a givenperiod, divided by the size of the relevant market population.

Two key measures of a products popularity are penetration rate and penetrationshare. The penetration rate (also called penetration, brand penetration, or marketpenetration as appropriate), is the percentage of the relevant population that haspurchased a given brand or category at least once in the time period under study.

Market Penetration (%) = Customers Who Have Purchased a Product in the Category(#)

Total Population

According to IRS the total readership for hindi newspapers was 5.8 crores, of whichonly Hindustan readers were 2.7 crores.Market Penetration (%) = 2.7/5.8 * 100

Market Penetration (%) = 46.55 %


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Share of Requirements:A given brands share of purchases in its category, measured solely among customerswho have already purchased that brand. Also known as share of wallet.

Share of Requirements = Brand Purchases

Total Category Purchases by Brand Buyers

Heavy Usage Index (I) = Average Total Purchases in Category by Brand Customers

Average Total Purchases in Category by All Customers forThat Category

OR

Heavy Usage Index (I) = Market Share(In %)

Penetration Share * Share of Requirement

The heavy usage index, also called the weight index, yields insight into the source of Volume and the nature of a brands customer base.

Awareness, Attitudes, and Usage (AAU):Studies of awareness, attitudes, and usage (AAU) enable marketers to quantify levels

and trends in customer knowledge, perceptions, beliefs, intentions, and behaviors. Insome companies, the results of these studies are called tracking data becaus e they areused to track long-term changes in customer awareness, attitudes, and behaviors.AAUstudies are most useful when their results are set against a clear comparator. Thisbenchmark may comprise the data from prior periods, different markets, orcompetitors.

Purpose: To track trends in customer attitudes and behaviors.

Awareness, attitudes, and usage (AAU) metrics relate closely to what has been calledthe Hierarchy of Effects, an assumption that customers progress through sequentialstages from lack of awareness, through initial purchase of a product, to brand loyalty.AAU metrics are generally designed to track these stages of knowledge, beliefs, andbehaviors. AAU studies also may track who uses a brand or product in which


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customers are defined by category usage (heavy/ light), geography, demographics,psychographics, media usage, and whether they purchase other products.

Awareness: The percentage of potential customers or consumers who recognize orname a given brand. Marketers may research brand recognition on an aided or

prompted level, posing such questions as, Have you heard of Mercedes?Alternatively, they may measure unaided or unprompted awareness, posing suchquestions as, Which makes of automobiles come to mind?

ATTITUDESMeasures of attitude concern consumer response to a brand or product. Attitude is acombination of what consumers believe and how strongly they feel about it. Although adetailed exploration of attitudinal research is beyond the scope of this book, thefollowing summarizes certain key metrics in this field.

USAGEMeasures of usage concern such market dynamics as purchase frequency and units perpurchase. They highlight not only what was purchased, but also when and where it waspurchased. In studying usage, marketers also seek to determine how many people havetried a brand. Of those, they further seek to determine how many have rejected thebrand, and how many have adopted it into their regular portfolio of brands.

Usage: A measure of customers s elf-reported behavior.

Customer Satisfaction:

Within organizations, customer satisfaction ratings can have powerful effects.They focus employees on the importance of fulfilling customers expectations.Furthermore, when these ratings dip, they warn of problems that can affect sales andprofitability.A second important metric related to satisfaction is willingness torecommend. When a customer is satisfied with a product, he or she might recommendit to friends, relatives, and colleagues. This can be a powerful marketing advantage.

Customer Satisfaction: The number of customers, or percentage of total customers,whose reported experience with a firm, its products, or its services (ratings) exceedsspecified satisfaction goals.

Customer satisfaction is measured at the individual level, but it is almost alwaysreported at an aggregate level. It can be, and often is, measured along variousdimensions.

In researching satisfaction, firms generally ask customers whether their product orservice has met or exceeded expectations. Thus, expectations are a key factor behind


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satisfaction. When customers have high expectations and the reality falls short, they willbe disappointed and will likely rate their experience as less than satisfying.

Willingness to Recommend/ Net Promoter Score (NPS):The percentage of surveyed customers who indicate that they would recommend a

brand to friends.

These metrics quantify an important dynamic. When a brand has loyal customers, itgains positive word-of-mouth marketing, which is both free and highly effective.

Willingness to Search: Although many metrics explore brand loyalty, one has been calledthe acid test. That is,

Willingness to Search (%) = Percentage of Customers Willing to Delay Purchases,

Change Stores, or Reduce Purchase Quantities to Avoid Switching Brands

This metric can tell a company much about the attitudes of its customers and whetherits position in the market is likely to be defensible against sustained pressure from acompetitor.

Purpose: To assess the commitment of a firms or a brands Customer base.

Willingness to Search: The likelihood that customers will settle for a second choiceproduct if their first choice is not available. Also called accept no substitutes.

Willingness to search represents the percentage of customers who are willing to leave astore without a product if their favorite brand is unavailable. Those willing to substituteconstitute the balance of the population.

RECOMMENDATIONS AND CONCLUSION:

1. Product competitiveness: - Hindustan should be superior or at least at par with the

competitors regarding content, educating, motivating readers.

2. Customer satisfaction: - Hindustan caters to all segments of readers as it has variouseditions and is coming up with jobs

3. Research and Development: - There is always stress on improvising the content asmuch as possible and developing a better newspaper.


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4. Circulation :- Circulation of the book has been rising ever since and the company has just launched its Aligarh and Moradabad edition and soughts for newer markets.

Documents

Project Report on Marketing Matrics Analysis of Hindustan