This case study is intended at bringing out the reality of the market that there is nothing called saturation in the market and any monopolistic market can be subjugated. The most appropriate thing that requires is, a good understanding of the market, reader’s attitude and beliefs and the value that would be delivered. It also needs a complete blueprint of the implementation plan. The Sakshi case bring out that even when competitors have the meticulous blueprint, but the success lies in effective implementation of the blueprint well.
This case study also brings about the challenges that a newspaper faces once it has made a good entry as well as challenges faced after entering into market. The most significant among them are getting the favour of the advertisers and ensuring that the readers do not switch back to their earlier newspaper.
A good system shortens the path to the goal. And that’s exactly what happened to Sakshi Newspaper management when they decided to enter the newspaper industry of Andhra Pradesh in the year of 2008.
To win over the readers and that too to dislodge the 45-year-old organization and become number one paper from the day of launch needed a good system and meticulous planning. Sakshi not only concentrates on content management but also in all aspects of business such as high printing quality, adding colours to all the pages, Advertising, promotion and circulation channels and distribution network besides logistics management.
The success of Sakshi Newspaper is presently discussed as a case study in MICA, Ahmedabad and some other premier management Institutes in the Country.
The success of Sakshi Telugu Daily has proved that if there is proper planning and implementation, then there is nothing like saturation in the market place.
The new-age Telugu reader is mostly on the move. They are now recognized world over for skill, confidence and scientific temper. Not just the people, but even the two Telugu states, Andhra Pradesh and Telangana are more on the ascendancy now.
Right from its launch, Sakshi had decided to reflect what the aspirant states needed and also tried to project a typical stimulating day in the life of the people in both the Telugu states. The Sakshi group mainly focused on younger ones because they are experiencing the success of the IT sector and having been around the globe and they are looking for a brand which reflects their aspirations. At that time Sakshi entered in the market and that was sync with their kind world.
The 10-year-old Telugu daily, Sakshi, was launched by Y.S. Jagan Mohan Reddy, Son of Late Y.S. Rajasekhar Reddy on March 23, 2008. This renowned newspaper embarked into the market with a big bang i.e. it had its production units setup in 19 locations across Andhra Pradesh (Before Bifurcation of the state). This type of grand launch is for the first time in whole history of Andhra Pradesh Telugu Newspaper Industry. From the beginning, the Sakshi newspaper rewrites the story and the success of newspaper can be attributed to the Sakshi group of management, because the group entering the market with aggressive plans and pre-determined strategies from the day one.
Sakshi Newspaper, under Jagati Publications, started publishing 23 editions simultaneously from 19 cities not only in Andhra Pradesh also along with the four metropolitan cities such as Mumbai, Delhi, Chennai and Bangalore. This record was acknowledged by the Limca Book of Records. Sakshi was the second Newspaper in India and First Newspaper in Andhra Pradesh, which publishes all of its pages in colour. This kind of appearance, quality and marketing strategies make a Sakshi as market leader and within the short span i.e. in two years period only it has become the No.2 Telugu daily in Andhra Pradesh according to the Audit Bureau of Circulation Report, 2009 and it poses a big competition to a 45-year-old established and prominent Telugu newspaper in Andhra Pradesh.
According to the Audit Bureau of Circulation Report, 2009, All editions of the Sakshi newspaper recorded the certified average circulation figure of 12, 56,809 copies for the six-monthly audit period from January-June 2009. Eenadu recorded a circulation figure of 13, 16,883 copies for all editions. In Andhra Pradesh (AP), Sakshi had a circulation figure of 12, 29,253 copies, whereas Eenadu had a circulation figure of 12, 61,801 copies, making a difference of 32,548 copies between the two.
To hold the No.2 sturdy position Telugu daily in Andhra Pradesh and Telangana, Sakshi Newspaper tried much harder to retain its customers i.e. both the readers and advertisers by providing immensely content and appearance. Gradually, the newspaper also established itself well in ad volume, both in the national as well as local circuit. It is now integral part to the media plan for all categories of business organisation who wants to promote their business through print media. Sakshi newspaper also entered into the digital and its digital editions both the e-paper as well as the news portal are the one of its major sources of regular revenue stream and also delivering services to huge unique audience.
The first announcement of launching the newspaper was made in two leading Telugu dailies, Eenadu and Andhra Jyothi on July 10, 2007. The logo of the newspaper also revealed on the same.
Before launching the newspaper, the Sakshi group implemented effective marketing strategies to study the market. Later the Newspaper entered into the market aggressively with pre-determined strategies and plan of action to cope up the challenges that are being posed by the current market. While studying the market the Sakshi group identified key points which are most prominent to overcome the challenges like setting up of a printing press in easily accessible location, for easy transportation and also the printing press are equipped with advanced machinery with a total capacity to print 16 lakh copies per day. This was the Sakshi group very high ambition and the crew implied the same from the beginning day of its operations. The Sakshi group of management is not only focused on technology, machinery, content, logistics and other operational activities, also mainly concentrates on appearance and outlook of Newspaper, which helps to grab the attention of the customers. For this the company roped world-famous newspaper designer Maria Garcia who provides a contemporary look the paper.
The company also set up 7500 exclusive newspaper distribution agencies for distribution of copies. The company worked with the network of hawkers in both Hyderabad and Secundrabad.
The group was very aggressive with its marketing strategies right from day one. Ground-level marketing, including sales schemes, exclusive hawkers and other marketing push activities done in the initial days, helped Sakshi make an impact way beyond other publications in the region.”
“Now they are closer to Eenadu in terms of ABC figures, what is left to be seen is sustenance of this trajectory, which will be the key factor in determining the real growth of the paper and that will only be proven with time.
This three-month survey conducted by the newspaper saw 5,000 agents going door to door reaching out to an average of 1,200 readers every day to understand the need gap. Later, for three months (January-March), the group promoted the newspaper to prospective readers. The group had spent close Rs 8 crore during the pre-launch phase and the creatives of ‘You are the Witness’ were done by O&M.
When Sakshi launched with an initial print run of more than 11 lakh copies, Eenadu had an all India circulation of 11, 16,275 copies (as per ABC figures for January-June 2007).
We launched an extensive market survey six months prior to the launch and realised that readers were not content with the sports, education and business news being provided by other dailies in the region. Therefore, we decided to have a special focus on the three beats, apart from others. Also, teenagers, youth and women were alienated from the papers available in the market.”
The newspaper undertook an extensive campaign spread across TV, radio and OOH.
The publication also identified 10,000 ‘exclusive’ distribution agents to distribute the copies of the newspaper across the region, except in Hyderabad. “It was after we got a written consent of 11 lakh people that we launched newspaper,” adds Reddy.
The newspaper started with an invitation price of Rs 2 and later moved on to the cover price of Rs 2.50.
To be a brand aspiration, Sakshi has placed over 1900 correspondents, maintained its own news bureau offices in all major cities of Mumbai, Delhi, Chennai & Bangalore and also at major one million plus cities in India. The daily also subscribes to a number of news agencies and news feeds from the national and international circuits.
From over tens of thousands of news feeds, the editorial team hand picks the most relevant ones that the new age readers need. These are delivered in three distinct product mix packages. A mother brand of 16 pages that is dedicated to state, national, international and other main genres. Then there is a 16 page tabloid for extensive coverage of districts. And finally, another two pages for constituencies, tailor made for a reader from that geographical segment. So, in effect, Sakshi, which is printed from 23 printing centres in Andhra Pradesh and Telangana, publishes 19 main brands, 46 district tabloids and 293 constituency supplements. Such a careful planning gives the product a huge hedge over all its rivals.
This is how the Sakshi daily has managed to become the market leader among dailies published in the Telugu language, dealing massive blows to its competitors.
|№||Edition||January-June 2010||July-December 2009||January-June 2009|
Source: ABC Report
Average circulation of Sakshi newspaper during the period January-December, 2009 and January-June, 2010.
Area wise analysis for the period January-June 2017
|1||Anantapur edition Anantapur||50786||5084||45702|
|2||Tirupati edition Chittoor||48469||4506||43963|
|3||Rajahmundry East Godavari||48620||1795||46825|
|4||Guntur edition Guntur||79210||14482||64728|
|5||Vijayawada edition Guntur||1029||0||1029|
|6||Kadapa edition Kadapa||39442||2588||36854|
|7||Vijayawada edition Krishna||78120||14296||63824|
|8||Kurnool edition Kurnool||52826||6025||46801|
|9||Nellore edition Nellore||41482||3303||38179|
|10||Ongole edition Prakasam||35346||2647||32699|
|11||Srikakulam edition Srikakulam||21892||837||21055|
|13||Srikakulam edition Vizianagaram||18235||1914||16321|
|14||Tadepalligudem West Godavari||42068||4850||37218|
Source: ABC Report
Area wise average circulation analysis of Sakshi Newspaper during the period January-June, 2017.
These impressive circulation numbers were achieved through a vast and strong marketing campaign, which included door-to-door promotion in the most remote villages around Hyderabad. Billboards, television and radio spots plus print ads covered the area. In those places where billboards were not available, as in rural villages, artists were commissioned to paint murals on the walls, carrying the page structure and color palette of the new Sakshi. It worked. From the start, Sakshi Newspaper had secured over one million paid subscribers.
Sakshi touch the lives of every person in its circulation area and beyond. The group still continues to look at what we do, and how we do it. This is a never-ending process and they find the right formula for the success of newspaper.
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