A case study on Porthom Alo on media industry:

MEDIA INDUSTRY (NEWSPAPER) DAILY

PROTHOM ALO:

The Daily Prothom Alo carries on with the long-term responsibility is to strengthen public

opinion on how the democratic system should work and how to sustain and nurture democratic

norms effectively.

It was a privilege for The Daily Prothom Alo to be part of a changing scene after the fall of

millennium renaissance of democracy. With that privilege came an enormous responsibility of

upholding the duties of a free press. The newspaper is proud to pursue that policy without

relenting for the past 10 years.

1.1:History

Prothom Alo was founded on 4 November 1998. The circulation of Prothom Alo grew from an

initial circulation of 42,000 to a circulation of a half million copies. The newspaper distinguished

itself by its investigations of acid attacks and violence against women and pushing for tougher

laws against the sale of acid. From press facilities located in Dhaka, Chittagong and Bogra,

around 5,00,000 copies (as of March ‘2014) are circulated each day. According to National

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Media Survey 2012, everyday 5.1 million people read the print edition of Prothom Alo. The

claimed readership of the print edition of this newspaper is 9.6 million. According to a brand

equity study conducted by Quantum Consumer Solutions Limited, Prothom Alo is considered to

be the most influential newspaper brand in Bangladesh.

1.2:Mission:

The online portal of Prothom Alo (www.prothom-alo.com) is the number 1 Bangladeshi website

in the world. This portal is accessed by 1.6 million visitors from 200 different countries and

territories across the globe with 60 million pageview per month. The e-paper site of Prothom

Alo (www.eprothomalo.com) is also the Number 1 e-paper Web site of Bangladesh. From 160

countries, 465 thousand visitors access this website with more than 26 million pageview per

month. On an average, each of the visitors stays for 20 minutes in this Web site. Based on

Facebook fan following, Prothom Alo is one of the leading corporate houses of Bangladesh. Till

November 2015, 6.75 Million people are following this newspaper through Facebook. This is the

biggest FB Fan page for any organization in Bangladesh. Prothom Alo's blog (www.prothom-

aloblog.com) provides a well-moderated platform where thousands of bloggers share their

constructive thoughts on various contemporary issues. Moreover, nearly 700 thousand of

the Prothom Alo app for various digital and mobile platforms have been downloaded as of

October 2013. Altogether, printed and digital versions of Prothom Alo are being read by 12

million people from Bangladesh and 200 other countries and territories in a month.

1.3:Vission:

Each day’s newspaper comes up with 20 to 24 pages in 6 editions. Besides, its attractive and

wide-ranging supplements have a spread of 4-24 pages daily.

Its top news story deals either with the most important news of the day or highlights a special

or investigative report. Sometimes social incongruities are vividly displayed in cartoons

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featured by the country’s leading cartoonists. Additionally, the first and the last pages

encompass a variety of other news items.

Desh (Country) and Bishal Bangla (The Vast Bangladesh) sections focus on the cities and

countryside of Bangladesh in search of news of the joys and sorrows, the crises and exciting

events that shape up the lives of the urban and rural people. Several versions of Bishal

Bangla allow the readers to have more news of their respective regions.

Important news, features, pictures and happenings of the capital Dhaka are placed in the

Rajdhani (Capital) pages.

Every day Bidesh (Outside of Country) page presents a selection of the most recent

developments around the globe.

It's editorial section informs readers about Prothom Alo’s stance on different issues.

Prominent columnists, contributors, specialists and journalists from home and abroad explain

and analyze varieties of issues in Motamot (Opinion) pages. Important personalities are also

regularly interviewed in these pages. In letters to the editor, citizens express their opinions on

issues that affect their lives. Besides, it also publish translated commentaries from Project

Syndicate that offers cutting edge analysis and insights from global perspectives.

Additionally, these pages offer a virtual feast of features, strip cartoons, crosswords, sayings

of the wise, amazing facts and jokes to its readers.

Everyday Porashona (Studies) page guides students of schools and colleges in their different

curricular disciplines.

Bigyan-Projukti (Science-Technology) tenders contents form the digital and scientific world.

Banijjyo (Business) section charts the highs and lows of the world of trade and commerce

every day.

Binodon (Entertainment) page is full of color and vivid images that bring the world of

showbiz alive. The section also features interviews of stars and provides information on what

is happening in the entertainment world.

Khela (Sports) section scans the national and international sport scenes for stories and news

and thus attracts innumerable sports aficionados for its well-rounded coverage.

Prothom Alo culls stories of dedicated, enlightened and compassionate individuals scattered

throughout the country and honors these unsung heroes by presenting their inspirational

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stories of achievement to the readers through Saturday's Special Report and also on other

days.

Prothom Alo regularly organizes roundtable discussions on important national and social

issues. Many of these discussions are jointly organized with UNICEF, UNFPA, BRAC,

Action Aid and other organizations. A complete transcript of these discussions is published

with the main newspaper

1.4:Values

The uniqueness of The Daily Prothom Alo lies in its non-partisan position, in the freedom it

enjoys from any influence of political parties or vested groups. Its strength is in taking position

of neutrality in conflicts between good and evil, justice and injustice, right and wrong, regardless

of positions held by any group or alliance.

1.5:sisters concerns

Prothom Alo, which belongs to Mediastar Ltd., has the following sister concerns:

ABC Radio FM 89.2: Commercial operation of ABC Radio FM 89.2 commenced from 7

January 2009. It is one of the most popular FM radio channels of Dhaka city. Besides Dhaka,

it is also being aired from Chittagong and Cox’s Bazar stations.

Prothoma Prokashon : Prothoma Prokashon is a publication house that started its journey

from 2008. This publication house has been highly praised by different quarters for its

quality publication works. Prothoma Prokashon received awards from Bangla Academy in

2011, 2012 and 2013.

Prothoma Boier Dunia: Prothoma Boier Dunia or Prothoma World of Books is a book

selling outlet with five stores in Dhaka, Chittagong and Rajshahi.

Protichinta: Protichinta is a quarterly journal on social, economical, and political issues.

Kishor Alo : Kishor Alo, a monthly magazine for the youngsters, started its journey from

October 2013. Stories, novels, poems, quizzes, magic, adventures, traveling, science,

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drawing, and many other interesting features are published in this colorful monthly

magazine.

Prothom Alo Jobs: Prothom Alo Jobs offers regular recruitment circular and solutions,

corporate training services, and career counseling.

1.6:Organizational Structure of Prothom Alo

The Prothom Alo follows a very flexible organization structure in which various departments

enjoy sufficient freedom and they cooperate with each other.

1.7:Board of Directors (BOD) and the Editor

As the agent of the Board of Directors the editor of Prothom Alo is directly controlling the

overall activities of the daily. All the news and advertisings are published according to his

decision. As the Chief Executive Officer (CEO), he plays the coordinating role between the

Board of Directors and the management of the newspaper. He is leading the team from the front

in developing and executing different policies and strategies in light of the expectation of Board

to achieve the ultimate objective of the organization.

1.8:Departments and Divisions

Two departments – office department and press department perform all the activities of Prothom

Alo. The office department is also divided into two sections- news section and general section.

Within the news section there are three divisions- editorial division, news division and feature

division. These three divisions are directed by three deputy editors who perform their job under

the direct supervision of the editor of the daily. It is mentionable that in Bangladesh Prothom Alo

has introduced the position of Deputy Editor. Within the general section under the supervision of

the administrative manager there are four divisions- administration, advertising, accounts and

circulation. And finally, the general manager with the cooperation of a press manager and a press

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supervisor controls the press department. Besides the head office there is a branch office in

Chittagong, which is managed, in the same fashion of that of the head office.

1.9:Work Force

Prothom Alo has three hundred and thirty five (335) full time employees including female

employees. For compensating employees, Prothom Alo offers the salary structure of the fifth

Wage Board of Bangladesh government. It also provides various benefits such as provident fund,

gratuity, individual employee insurance coverage, group insurance coverage to its employees.

Prothom Alo is offering its employees a very cordial working environment with a high

opportunity to build up their career.

1.10:Target Market Decisions

One of the major differences of newspaper marketing is that the marketer has to satisfy two

major groups of customers:

a. Readers (who buy the product for their personal consumption i. e, final consumers)

b. Advertisers (who buy the advertising space for their business use i. e. business buyers)

In developing the target market decision, a newspaper marketer has to consider both of these two

types of customers as well as other factors such as the different variables of market

segmentation, the competitive situation of the market, the SWOT (Strengths, Weaknesses,

Opportunities and Threats) analysis of the business venture etc. which influences the overall

performance of newspaper business. Like other newspapers of our country, Prothom Alo is

developing their target market decision by considering all of these factors.

1.11:Competitive Position of Prothom Alo

Companies can be classified into four categories in terms of their competitive position in the

industry:

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a. Market leader– the firm with the largest market share in an industry

b. Market challenger– a runner-up firm that is fighting hard to increase its market share in an

industry

c. Market follower– a runner-up firm that wants to hold its share in an industry without rocking

the boat

d. Market gainer-a firm that serves small segments that the other firms in its industry overlook or

ignore.

From circulation point of view, The Prothom Alo is the unparalleled market leader of present

newspaper market of Bangladesh. Prothom Alo supplies everyday on an average 2, 37,715

copies to the agents for sale. In terms of circulation (actual sale), Prothom Alo is ahead of the

market challenger, The Daily Jugantor (the difference is 88,927 copies). Out of 64 districts

Prothom Alo is the market leader in 43 districts. Out of the rest 21 districts, Prothom Alo is the

market challenger in 11 districts and market follower in 9 districts and market niche in only one

district. Except Barishal, Prothom Alo is the market leader in all the Divisional Headquarters of

the country i.e. Dhaka, Chittagong, Khulna, Rajshahi and Sylhet with a big difference of 57,656

copies than the market challenger in selling point of view.

1.12:Marketing Mix of Prothom Alo

Marketing mix is the set of controllable variables of marketing. In general it is expressed in 4 Ps:

product, price, place and promotion of a particular company. The marketing mix of Prothom Alo

is described below:

1.13:Product

In a narrow sense, a product is a set of attributes assembled in an identifiable form. In marketing,

we need a broader definition of product to indicate that consumers are not really buying a set of

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attributes, but rather benefits that satisfy their needs. Product is an umbrella term that covers

goods, services, places, persons, and ideas.

1.14:Price

Price is the exchange value of product. Price is the amount of money and/or other items with

utility needed to acquire a product. Price as the amount of money charged for a product or

services, or the sum of the values that consumers exchange for the benefits of having or using the

product or service. Pricing is a critical factor in the successful operation of for-profit and not-for-

profit organizations.

1.15:Place

A critical task for marketers in the new millennium is the efficient movement of goods and

services from the point of production to the points of consumption. There are hundreds of ways

in which goods and services can be distributed to consumers. There is no standard distribution

system that can satisfy the needs of every firm.

1.16:Promotion

Promotion is an attempt to influence the consumers to react in favor of the company. In other

words, promotion is the element of an organization’s marketing mix that serves to inform,

persuade, and remind the market of a product. The organization is selling it, in hopes of

influencing the recipients’ feelings, beliefs, or behavior.

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2.1:Environmental change and complexity of Porthom

Alo:

1.Degreeof homogeneity simple & Degree of change stable means the firms serve the small

number of customers & the products doesn't change and faces least uncertainty.

2.Degree of homogeneity simple and Degree of change dynamic means the firms serve the small

number of customers and the products of the firms changes quickly & faces moderate uncertanty.

3.The degree of homogeneity complex and the degree of change simple means the firms serve

the large numbers of customers and the products of the firms doesn't change and faces moderate

uncertainty.

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4.Degree of homogeneity complex and the degree of change dynamic means the firms serve the

large number of customers and the product of the firms changes quickly and faces most

uncertainty.

Above discussion we can be decided that PORTHOM ALO NEWSPAPER focuses the degree of

homogeneity complex and the degree of change dynamic because they serve the large number of

customers and the news changes every day.

2.02:The competetive forces of PORTHOM ALO

NEWSPAPER:

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Understanding the Five Forces

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Porter regarded understanding both the competitive forces and the overall industry structure as

crucial for effective strategic decision-making. In Porter's model, the five forces that shape

industry competition are:

2.3:Competitive rivalry. This force examines how intense the competition currently is

in the marketplace, which is determined by the number of existing competitors and what each is

capable of doing. Rivalry competition is high when there are just a few businesses equally selling

a product or service, when the industry is growing and when consumers can easily switch to a

competitors offering for little cost. When rivalry competition is high, advertising and price wars

can ensue, which can hurt a business's bottom line. Rivalry is quantitatively measured by the

Concentration Ratio (CR), which is the percentage of market share owned by the four largest

firms in an industry.

2.04:Bargaining power of suppliers. This force analyzes how much power a

business's supplier has and how much control it has over the potential to raise its prices, which,

in turn, would lower a business's profitability. In addition, it looks at the number of suppliers

available: The fewer there are, the more power they have. Businesses are in a better position

when there are a multitude of suppliers. Sources of supplier power also include the switching

costs of firms in the industry, the presence of available substitutes, and the supply purchase cost

relative to substitutes.

2.05:Bargaining power of customers. This force looks at the power of the

consumer to affect pricing and quality. Consumers have power when there aren't many of them,

but lots of sellers, as well as when it is easy to switch from one business's products or services to

another. Buying power is low when consumers purchase products in small amounts and the

seller's product is very different from any of its competitors.

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2.06:Threat of new entrants. This force examines how easy or difficult it is for

competitors to join the marketplace in the industry being examined. The easier it is for a

competitor to join the marketplace, the greater the risk of a business's market share being

depleted. Barriers to entry include absolute cost advantages, access to inputs, economies of scale

and well-recognized brands.

2.07:Threat of substitute products or services. This force studies how easy it

is for consumers to switch from a business's product or service to that of a competitor. It looks at

how many competitors there are, how their prices and quality compare to the business being

examined and how much of a profit those competitors are earning, which would determine if

they have the ability to lower their costs even more. The threat of substitutes are informed by

switching costs, both immediate and long-term, as well as a buyer's inclination to change

Above discussion we can say that PORTHOM ALO NEWSPAPER faces competitive rivalry

because they compete with Kaler Kantho, Jugantor, Bangladesh Protidin, ManabZamin,

Shamokal, Amader Shomoy and it also faces the piower of buyer because a false information can

highly impact on it's customer mind.

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3.00:Dimensions of PORTHOM ALO NEWSPAPER

Dimensions of general environment of PORTHOM ALO NEWSPAPER

(1) Economic dimensions

(2) Socialcultural dimensions

(3) Technological dimensions

(4) Political and legal, and

(5) International dimension

We explain below all these factors determining

external macro-environment:

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3.1. Economic Environment:Economic environment includes the type of economic system that exists in the economy, the

nature and structure of the economy, the phase of the business cycle (for example, the conditions

of boom or recession), the fiscal, monetary and financial policies of the Government, foreign

trade and foreign investment policies of the government. These economic policies of the

government present both the opportunities as well as the threats (i.e. restrictions) for the business

firms.

3.2. Social and Cultural Environment:Members of a society wield important influence over business firms. People these days do not

accept the activities of business firms without question. Activities of business firms may harm

the physical environment and impose heavy social costs. Besides, business practices may violate

cultural ethos of a society. For example, advertisement by business firms may be nasty and hurt

the ethical sentiments of the people.

3.3. Political and Legal Environment:Businesses are closely related to the government. The political philosophy of the government

wields a great influence over business policies. For example, after independence under the

leadership of Jawahar Lal Nehru India adopted ‘democratic socialism as its goal.

In the economic sphere it implied that public sector was to play a vital role in India’s economic

development. Besides, it required that working of the private sector were to be controlled by a

suitable industrial policy of the government. In this political framework provide business firms

worked under various types of regulatory policies which sought to influence the directions in

which private business enterprises had to function.

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Thus, Industrial Regulation Act 1951, Industrial Policy Resolution 1956, Foreign Exchange

Regulation Act (FERA), Monopolistic and Restrictive Practices (MRTP) Act were passed to

control the business activities of the

3.4. Technological Environment:The nature of technology used for production of goods and services is an important factor

responsible for the success of a business firm. Technology consists of the type of machines and

processes available for use by a firm and the way of doing things. The improvement in technol-

ogy raises total factor productivity of a firm and reduces unit cost of output.

The use of a superior technology by a firm gives it a competitive advantage over its rival firms.

The use of a particular technology by a firm for its transformation process determines its

competitive strength. In this age of globalisation the firms have to compete in the international

markets for sales of their products. The firms which use outdated technologies cannot compete

globally. Therefore, technological development plays a vital role in enhancing the competitive

strength of business firms.

It has been generally observed that the competition between firms in the domestic economy and

in international markets ensures that the firms will try to improve the technology they use

because failure to do so would pose a threat to their survival. In the protected markets,

technological improvements are slow and firms are able to survive for a long period without

making technological changes.

This is quite evident from the experience of automobile industry in India. Manufacturers of

Ambassadors and

3.5. International dimensions:PORTHOM ALO NEWSPAPER faces various international factors eg. they collect the information

worldwide and they overcome various barriers.

4.00:Natural Environment:

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Natural environment is the ultimate source of many inputs such as raw materials, energy which business firms use in their productive activity. In fact, availability of natural resources in a region or country is a basic factor in determining business activity in it. Natural environment which includes geographical and ecological factors such as minerals and oil reserves, water and forest resources, weather and climatic conditions, port facilities are all highly significant for various business activities.

5:SWOT ANALYSIS OF PROTHOM ALO

5.1.STRENGTHSStrong Unity: They have a strong relationship for their company.

Financial Strength: The Prothom Alo is a financially sound company backed by the enormous

resource base of Transcom Group. As result customers feel comfortable in dealing with the

company.

Efficient Management: All the levels of the management of The Prothom alo are solely directed

to maintain a culture of the betterment of the quality of the service and development of a

corporate brand image in the market through organization wide term approach and open

communication system.

Experts: The key-contributing factor behind the success of the NCCBL is its employee, who is

highly trained and most competent in their own field.

5.2:WEAKNESSESLimited Workforce: The human-resource department of Prothom Alo is extremely understaffed

compared to its financial activities. There are not many people to perform most of the tasks. As a

result many of the employees are burdened with extra workloads and work late hours without

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any overtime facilities. This might cause high employee turnover that will prove to be too costly

to avoid.

Poor Telecommunication Infrastructure: As previously mentioned, the world is advancing e-

technology very rapidly. Though Prothom Alo has taken effort to join the stream of information

technology, it is not possible to complete the mission due to poor technology and infrastructure

of our country.

Salary Range low: The employee of front desk salary is so low so they are so much dissatisfied.

Staff’s dissatisfaction: The employees of front desk staff, call management operator are very

much pressure in their working place.

5.3:OPPORTUNITIES

Follow highly modern strategy to improve the position. Create good positioning strategy for

potential customers. A develop market such as Internet facilities can make them different from

the other Newspaper.

5.5:THREATS

Customer satisfaction level is not good.

Competitors have adopted attractive services.

Political unrest

6:Conclusion

Prothom Alo is one of the leading dailies in Bangladesh. It’s popular among the mass and is well

received. But the only problem that the newspaper industry poses is the reluctance of introducing

changes by implementing the concepts of modern day marketing activities. Customer needs and

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demands change over time and in this era of competition it’s important to convey the right values

to the customers in order to attain their level of acceptance. Rather hanging onto traditional

methods of Marketing Prothom Alo should embrace the modern day distribution tactics,

promotional methods like SMS and web marketing, tagging with various radio stations and

forming an effective distribution network.

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