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Magazine Industry in Australia• Includes magazines and periodicals
• Industry revenue - $2 billion
• Revenue source Advertising – 40% Magazine Sales – 60%
• Declining sales of women’s weeklies and interest magazines
• Declining share of economy
#1: Substitution by Digital Media
New entrant
SuppliersIndustry
competitorsIndustry
competitorsBuyers
Substitutes
Evolution of Reading
MagazineMagazine
Blogs Websites
Distribute
Content
AdGoogle
Ad
iBook, WhisperNet
ADAPT
• About Rise to the digital media challenge
• Approach Publish in alternative media
formats
Die OR
• Outcome 2009 Australian Media Award 6.2% increase in sales
#2: Hitting a moving targetAUSTRALIA’S NUMBER ONE LIFESTYLE MAGAZINE
• Highly Fragmented Industry 730 consumer magazines Greatest per capital readership in
the world
• Old Segmentation Practices Challenged Changes in women’s interests Changes in buying behaviour
• Tools used to gather market consumer insights
Cosmopolitan Bride1. Origins
“Born from the call of fashion conscious reader”
2. Reader’s Profile
3. Segment Attractiveness Company and Segment Strengths
4. Segment Choice “Women who want to look gorgeous on their wedding day”
Frankie
Close to reader
Conversational tone
Matt paper, emerging artists
Clear value to market
20-35 year old women
Relationship
Intense loyalty
32% circulation increase
Magazine Reader
Brand Equity
#4: Inefficient Data
InformationConventional 2-Level Channel
Intermediaries Functions
Information
• Intensive Distribution News Agent Supermarkets / Convenience Stores Service Stations Subscriptions
Improving the Transfer of Information XchangeIT Link
Benefits for Retailers Data accuracy / Time savings
Benefits for Distributors Timely sales information
Benefits for Publishers Quick revamp/closure of non-performing title
Aims Decrease magazine returns from 37% to 10% Reduce Variable costs
#5: Disengaged ConsumersConvenience
Availability
Distribution
SALES ORIENTATION
Make The Product Sell The Product
“Think-Do-Feel”
4000+ Titles
Stay
Market Orientated
Elizabeth StreetMelbourne
MARKET ORIENTATION:
Choose The Value Communicate The Value
Browse
Discover
Enjoy
Discuss
Provide The Value
Customer Orientation Increasing customer involvement
Competitor Orientation Competes for consumer’s leisure
time
Interfunctional Orientation Open online discussion
Best Young Business in Melbourne 2008
Integrated Marketing
Profit Through Customer
Satisfaction
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