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A look at Jagran Prakashan- Part II
Dec 7, 2007

In the last article, we gave an overview of Jagran Prakashan (JPL) in terms of readership, circulation and reach. In this article we highlight the important regions where it is present and its competitive standing. The sector being highly fragmented, Dainik Jagran faces severe competition from its peers Hindustan, Amar Ujala, Prabhat Kabhar and Dainik Bhaskar. With the launch of its new editions, JPL has managed to establish strong foothold in the respective markets.

JPL’s footprint:
JPL is present in Jammu Kashmir (1 edition), Punjab (3 editions), Himachal Pradesh (1 edition), Chandigarh (2 editions), Uttanranchal (2 editions), Rajasthan, Haryana, Madhya Pradesh (3 editions), Uttar Pradesh (11 editions), Bihar (3 editions), Jharkhand (3 editions), West Bengal, Chatisgarh, Assam (1 edition) and Delhi (1 edition).

The vast footprint of Dainik Jagran’s makes it a strong player in the Hindi belt. It is able to reach a large audience and hence be enticing for the advertisers.

Punjab
The company has three editions in Punjab. The Jalandhar edition of Dainik Jagran was launched in 1999. The Jalandhar edition has nine sub editions. It launched Ludhiana (has nine sub editions) in 2004 and Amritsar in 2006, which was the 31st edition. JPL has achieved leadership in all three editions making it the leader in Punjab. The company faces competition form Punjab Kesari and Amar Ujala. Recently even Dainik Bhaskar entered Punjab with 3 editions intensifying the market share war. This lead to price wars and reduction in subscription prices.

Uttar Pradesh and Uttranchal
The key markets for JPL are Uttar Pradesh (UP) and Uttaranchal from where it gets 60% to 70% of its ad revenues. Dainik Jagran is the No1 player in Uttar Pradesh, which is the largest market for Hindi advertising. Dainik Jagran commands a readership of 10.7m, which is 60% of the state readership. However, it commands only 40% to 45% of the Rs 4.2 bn ad market (2006) owing to the fragmented nature of the market. Though Amar Ujala had enjoyed a head start in terms of new launches, JPL with its a two-pronged strategy - with a view to revamp the paper editorially on one hand, and design a new communication plan to get people to check out Dainik Jagran with renewed interest - made it a leader. The nearest competitor is Amar Ujala with a readership of 7.1m.

Bihar
JPL has three editions in Bihar, Patna (established in 2000), Bhagalpur (established in Year 2003) and Muzaffarpur edition (in 2005). Patna edition with 13 sub-editions caters to the entire central and west Bihar. The Bhagalpur edition with 10 sub-editions reaches out to north-east districts of the state also caters the neighbouring districts of north Bengal such as Darjeeling, Jalpaiguri, Coochbihar, North Dinajpur, Murshidabad and Sikkim. Infact Dainik Jagran is the only Hindi newspaper available in Sikkim. All together Dainik Jagran publishes 30 sub-editions from Bihar and is the second best player in the Bihar market after Hindustan (HT Media’s Hindi paper). The newspaper garners interest due to its content on social issues touching the lives of common people in a different way.

Jharkhand
After capturing the number two position in Bihar, the launch of the Jharkhand edition was a strategic step towards tapping what was once the southern region of Bihar. Jharkhand is an affluent belt. In fact, in terms of consumer spending, Jharkhand is bigger (than Bihar). Plus, the media market is large, indicating huge potential. JPL entered Jharkhand in 2003 with the launch of three editions – Ranchi, Jamshedpur and Dhanbad. Further, to support the printing of the three editions, it set up a full-fledged printing facility, a complete editorial office and an advertising and space-marketing outfit with an infrastructure investment to the tune of Rs 70 m. Though the company (positioned at number 3) faces tough competition from Hindustan and Prabhat Kabhar, the gap between the company and the other leading players over the past four years has been reducing.

Delhi
The Delhi edition of Dainik Jagran was launched in 1990. The Delhi edition has 16 sub editions and is printed in Delhi and distributed mainly in Delhi and its surrounding areas. Dainik Jagran is the number five newspaper in Delhi in all languages in terms of readership.

Going forward
Majority of the states in which JPL operates have lower literacy rates than rest of the country. Hence there is a potential for higher growth in subscription numbers as literacy levels improve. The dominance of Dainik Jagran in Hindi speaking states would drive its business going forward. Being a Hindi newspaper player, the company in order to de-risk its revenues is slowly moving towards the English segment. This will lead to diversification of its revenue model in the longer term. We shall look on this aspect in the next article

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