Corporate: Print's Punjab Push

MEDIA
Print's Punjab Push

Triggered by a booming readership, the state is witnessing a mega newspaper battle.

By Shamni Pande

Until just two years ago, there were only two major newspapers in the whole of Punjab. That was strange. The region, after all, boasted the numbers to attract more: the highest per capita income among all the states in the country (2000 figure: Rs 14,188), and a literacy-level of 58 per cent. Today, though, the state and its immediate environs (Haryana and Chandigarh) probably account for the largest blip on the radar of media companies.

In the last two years, two vernacular newspapers, Amar Ujala and Dainik Jagran, and one English-language daily, The Hindustan Times (The Times of India is also in the process of launching a Chandigarh edition), have been launched in the region, and more may be on their way. Clearly, the end of a decade-and-a-half of turmoil in the state has seen the renaissance of commerce.

After the Meerut-headquartered Amar Ujala, with a circulation of six lakh, launched its Chandigarh edition (targeting primarily Haryana and the Union Territory of Chandigarh) in July, 1999, the Kanpur-based Dainik Jagran (Circulation: 9.62 lakh) entered the market with a Jalandhar edition.

Close on the heels of these two newspapers came The Hindustan Times with a Chandigarh edition that forced the market leader, The Tribune, to start a pull-out section for its Chandigarh edition and a new edition for Ludhiana. Predictably, a bitter price war is being fought in the region. In response to Dainik Jagran's pricing strategy of Rs 2 for its week-day editions, and Rs 3 for its week-end one, local heavyweight Punjab Kesri slashed the prices of its corresponding editions to Rs 1.50 and Rs 2.50 respectively. In Chandigarh, Dainik Bhaskar is priced even lower at Re 1 for subscribers, and Rs 1.50 for casual buyers. The Tribune, however, is holding on to its price-point of Rs 2 in all its markets. Observes Samarkant Kukreja, 33, Media Controller, fcb-Ulka: ''Price cuts are a deadly weapon in the battle for readership.''

That's precisely what Dainik Bhaskar found out when it debuted in Rajasthan in December, 1996, with its own Jaipur edition. Going by the feedback it got from a pre-launch survey, the newspaper decided to price itself under Rs 2.50, which was also the price of local market leader Rajasthan Patrika. The leader slashed its price in response.

At the heart of readership battles, however, is the question of advertising revenue. In the case of newspapers, balancing revenue with readership can be tricky. For one, the advertising space available is more or less limited. The cover price, in itself, is not profitable, since the average cost of printing and processing a newspaper comes to Rs 8. And unless advertising tariffs are raised, a higher circulation actually means lower profits. Yet, a higher circulation is important to attract advertisers and justify premium ad rates. Explains R. Sundar, 44, Director, Bennett, Coleman & Co.: ''A higher circulation means extended readership, which in turn, means more ads.''

Multiple editions have other benefits too. At a marginally additional cost, advertisers get space in several regional editions. For the publishers, the package deal fetches money that otherwise would have gone to some competitor.

Eventually, the number of print players in Punjab will drop to two or three. The survivors will be those who leverage their size to the benefit of readers and advertisers.

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