Dar Al Watan_subscription_roadmap_2014

STRICTLY PRIVATE AND CONFIDENTIAL - Prepared by Mazen Arab
Al Watan Daily Newspaper
The Subscriptions Future Roadmap
Kuwait-2013

 General Overview
 Kuwait Demographics
 Al Watan Newspaper (Readership Profile)
 Al Watan Subscribers- General Overview and Trends
 The Business Perspective / by Subscriber
 Al Watan Subscribers – Facts
 Direct Correlation (Subscribers - Revenue- Price- Space- Sales)
 The Break Even Point- 1 Year & 2 Years
 The Forecast – (Objectives for Year 2014 – 2015)
 Marketing Budget Allocation 2014 - 2015
 General Marketing Activities
- Agenda -
2

Kuwait Demographics
Source: National Census 2013 – PACI 3
Kuwaiti Non Kuwaiti
1240000 2703000
31% 69%
Total Population Kuwaiti Watan Subscriptions % of Total Kuwaiti
Capital 522,669 231,056 7,194 3%
Hawally 853,514 210,684 7,948 4%
Ahmadi 763,925 258,077 7,241 3%
Jahra 484,874 258,077 3214 1%
Farwaniya 1,030,647 223,031 12086 5%
Mubarak El-Kabir 231,370 140,889 6114 4%
Age # of Kuwaiti
0-25 Yrs 587,303
26-39 Yrs 372,473
40–59 Yrs 200,921
> 60 Yrs 66,324

Al Watan Readership Profile
Source: Ipsos Stat NRS_2012 4

Al Watan Subscribers – Overview & Trends
Source: Al Khaleej for distribution 5
# of Subscribers
Variance Comp
to prev. month
% Variance to
Prev. Month
# of Subscribers
Variance Comp
to prev. month
% Variance to
Prev. Month
End of January
55,567 -233 -0.4 % 47,902 -211 -0.44%
End of February
52,094 -3473 -6.25% 47,153 -749 -1.56%
End of March
51,210 -884 -1.70% 46,346 -807 -1.71%
End of April
50,295 -915 -1.79% 45,614 -732 -1.58%
End of May
49,615 -680 -1.35% 44,917 -697 -1.53%
End of June
49,099 -516 -1.04% 44,211 -706 -1.57%
End of July
48,577 -522 -1.06% 43,577 -634 -1.43%
End of August
47,904 -673 -1.39% 43,262 -315 -0.72%
End of
September
47,282 -622 -1.30% 42,888 -374 -0.86%
End of October
47,888 606 1.28% 43,785 897 2.09%
End of
November
48,256 368 0.77%
End of
December
48,113 -143 -0.30%
Year 2012 Year 2013

Expiring Subscriptions in 2013
Month Expired Subscribers % of Total
June 2013 2304 6%
July 2013 2282 6%
August 2013 2105 5%
September 2013 2467 6%
October 2013 5744 15%
November 2013 5326 14%
December 2013 4273 11%
Expiring Subscriptions in 2014
Month Expired Subscribers % of Total
January 2014 3182 8%
February 2014 1880 5%
March 2014 2658 7%
April 2014 2157 6%
May 2014 2548 7%
June 2014 1996 5%
Source: Al Khaleej for Distribution 6
The % of Expiring Subscriptions should be directly related to the Marketing Budget /
Allocation of Gifts etc…
Al Watan Subscribers – Overview & Trends-Cont.

The Business Perspective / by Subscriber
Source: Accounting Department/
Advertising Department
7
Year Beg Bal.
Subscribers
Change vs.
Last Year%
Net Cm/Clm-
Revenue
Advertising Net
Revenue
Advertising Cost –
Promotion
Promo Budget vs.
Net Revenue %
2011 55790 7.4 KD 15,395,982 KD 484,000 KD 3.14 %
2012 55,567 0% 8.2 KD 16,832,800 KD 636,850 KD 3.83 %
2013 47,902 -14% 8.2 KD 16,953,000 KD 470,000 KD 2.77%
2014 43785- to
50,000
-8.6% 8.2 KD 16,800,000 KD 840,000 KD 5 %
Year Revenue per
(Subscriber)
Print Cost/Each
Subscriber
Advertising Cost/
Subscriber
Approx.
distribution
cost/Subscriber
Dist. Cost per
Subscriber
2011 276 KD 29 KD 8.7 KD 580,000 KD 10.4 KD
2012 303 KD 29 KD 11.5 KD 580,000 KD 10.4KD
2013 354 KD 29 KD 9.8 KD 580,000 KD 12.1 KD
2014 379 KD 29 KD 17 KD 580,000 KD 13.25 KD

Al Watan Subscribers – Facts
8
• Year 2012- Al Watan DNP Lost 7,454 Subscribers – 13.4 % of the starting Subscribers Balance
• Year 2013 Till October, Al Watan DNP lost 4,117 Subscribers - 8.6% of the Starting Subscribers
Balance
• In a different Perspective –
– 2011 Main Promotion Total budget in 2011 = 484,000 KD –
– Al Watan spent 23 KD per Subscriber to retain 86.6 % of beginning balance of subscribers
– 2012 Main Promotion Total Budget in 2013 = 636,850 KD
– Al Watan Spent 25.9 KD per subscriber to retain 91.4 % of beginning balance of subscribers
– 2013 Main Promotion Total Budget in 2013 = 470,000 KD
– Al Watan Spent 25.9 KD per subscriber to retain 91% of beginning balance of subscribers
– 2014 Sum of Promotions total budget to be spent = 840,000 KD
– Al Watan will spend 34.5 KD per subscriber to increase the subscriptions from 44,000 to
50,000

Al Watan Subscribers – Facts(Cont.)
9
• Total Variable Cost/subscriber 2012 = (29 KD+11.5 KD +10.4 KD) = 51 KD
• 2012 Cost of Subscription= 25 KD
• 2012 Subsidy by newspaper = 26 KD
• 2012 Total Subsidy KD by the Newspaper = 1,430,000 KD Yearly (based on 55,000
Subscribers) – (8.5% of Total Revenue)
• 2012 Total Approx. Yearly Cost for Subscriptions = 2,855,000 KD (16.63% of Revenue)
2012 Total Cost to Retain
Subscribers = 2,855,000 KD
(16.6% of revenue)
Printing
Cost
1,595,00
0 KD
Promotion
Cost/
680,000 KD
Distribution
Cost/
580,000 KD
2012 Total Cost to Retain
Subscribers = 50.9KD
(subsidy of 26 KD)
Printing
Cost 29
KD
Promotion
Cost/ 11.5
KD
Distributi
on Cost/
10.4 KD

Direct Correlation (Subscribers - Revenue- Price- Space- Sales)
10
25 KD 1 year Subscription 2 Yrs Subscription 3 Yrs Subscription
Subscribers Revenue KD Revenue or Loss /year Revenue or Loss /year Revenue or Loss /year
45000 KWD 16,000,000 KWD (35) KWD (25.78) KWD (22.81)
47500 KWD 16,000,000 KWD (33) KWD (24.63) KWD (21.82)
50000 KWD 16,800,000 KWD (32) KWD (24.00) KWD (21.20)
52500 KWD 16,800,000 KWD (31) KWD (23.05) KWD (20.38)
55000 KWD 16,800,000 KWD (30) KWD (22.18) KWD (19.64)
57500 KWD 16,800,000 KWD (29) KWD (21.39) KWD (18.96)
60000 KWD 17,500,000 KWD (28) KWD (20.96) KWD (18.53)
62500 KWD 17,500,000 KWD (27) KWD (20.28) KWD (17.95)
The Cost per subscription will decrease if we plan and execute our subscription
campaigns for 2 or 3 years – for Example:
@55,000 Subscribers – if they are subscribed for
1 year - we will lose 30 KD per subscriber
2 Years – we will lose 22 KD per Subscriber
3 Years – we will lose 19.6 KD per Subscriber
The Less Subscriber we have the less prices of Cm/clm we can sell and this means less on the
Total Revenue KD -

Direct Correlation (Subscribers - Revenue- Price- Space- Sales) Cont.
11
30 KD 2 Yrs Subscription 3 Yrs Subscription
Subscribers Revenue KD Revenue / Loss Revenue or Loss /year Revenue or Loss /year
47500 KWD 16,000,000 KWD (28) KWD (19.63) KWD (16.82)
50000 KWD 16,800,000 KWD (27) KWD (19.00) KWD (16.20)
52500 KWD 16,800,000 KWD (26) KWD (18.05) KWD (15.38)
55000 KWD 16,800,000 KWD (25) KWD (17.18) KWD (14.64)
If We Increase the subscription to 30 KD per Year – the below table shows the loss in Subsidy
per subscriber
Comparison 30 KD/ Subscription 25 KD Subscription 30 KD/ Subscription 25 KD Subscription
1 Yr. Subscription 1 Yr. Subscription 2 Yrs. Subscription 2 Yrs. Subscription
Subscribers Revenue / Loss Revenue / Loss Revenue or Loss /year Revenue or Loss /year
47500 KWD (28) KWD (33) KWD (19.63) KWD (24.63)
50000 KWD (27) KWD (32) KWD (19.00) KWD (24.00)
52500 KWD (26) KWD (31) KWD (18.05) KWD (23.05)
55000 KWD (25) KWD (30) KWD (17.18) KWD (22.18)
For a 5 KD Increase in Subscription Fee – it will be reflected directly as a saving in the loss
due to subsidy of the subscribers price –

Direct Correlation (Subscribers - Revenue- Price- Space- Sales) Cont.
12
25 KD Subsidy KD Subsidy KD Convert to yearly loss Subsidy KD Convert to yearly loss
Subscribers
for 1 Year
Subscription
for 2 Yrs.
Subscriptions
1 year for 3 Yrs. Subscriptions 1 year
50000 KWD (1,620,000) KWD (2,400,000) KWD (1,200,000) KWD (3,180,000) KWD (1,060,000)
When we plan and execute our subscribers promotions based on 2 years and 3 years –
the loss per year paid as subsidy will be reduced –
for Example: if we have 55,000 Subscribers over 3 years we will save 560,000 KD per year

The Break Even Point- 1 Year & 2 Years
13
1 Year Subscription –
Break Even Point
KD / Subscription
40000 KWD 62.5
42500 KWD 60.5
45000 KWD 59.5
47500 KWD 58.0
50000 KWD 57.5
52500 KWD 56.0
55000 KWD 55.0
57500 KWD 54.0
60000 KWD 53.3
62500 KWD 52.3
65000 KWD 51.3
67500 KWD 51.0
70000 KWD 50.5
2 Year Subscription –
Break Even Point
KD /Year Subscription
40000 KWD 53.0
42500 KWD 51.5
45000 KWD 50.8
47500 KWD 49.5
50000 KWD 49.0
52500 KWD 48.0
55000 KWD 47.3
57500 KWD 46.3
60000 KWD 46.0
62500 KWD 45.3
65000 KWD 44.8
67500 KWD 44.3
70000 KWD 43.8

Year 2014 2015
Subscribers End of Year 50,000 60,000
Forecasted Revenue Net KD 16,800,000 KD 17,500,000 KD
Cost of Subscription 30 KD / 1 Year
50 KD / 2 Years
60 KD / 2 Years
75 KD / 3 Years
Marketing Budget 840,000 KD 875,000 KD
Loss in Subsidy 1,285,000 KD 1,034,583 KD
Current Subsidy 1,430,000 KD 1,430,000 KD
Savings on Subsidy 145,000 KD 395,000 KD
14
The Forecast / Objectives for Year 2014- 2015

Month Budget Allocation 2014 Budget Allocation 2015
January 68,750 KD 71,500 KD
February 40,500 KD 42,250 KD
March 57,500 KD 59,750 KD
April 46,500 KD 48,500 KD
May 55,000 KD 57,300 KD
June 43,000 KD 44,850 KD
July 49,250 KD 51,300 KD
August 45,500 KD 47,350 KD
September 53,250 KD 55,500 KD
October 123,950 KD 129,150 KD
November 114,950 KD 119,750 KD
December 92,250 KD 96,000 KD
15
Marketing Budget Allocation 2014/2015
30% of the Above allocated budget should be allocated to long term objectives and blanket promotions –
2% of The Budget should be Allocated to Acquiring research and conducting tailor made research. (16,800 KD)

Promotions that will be Done for a long period – yearly or more
Long Term Promotions
• Al Watan Elite Loyalty Program
• 1 Major Sport Event
• 1 Major Free Event for Current Subscribers
• Subscriptions renewed online and paid online will have a special Prize
• Permanent Satellite Subscription Stations in Busy Areas
• Participation and Sponsoring Fairs – Free Copies – Subscription Booth
• Branding of Areas of Interest such as football courts – Coop Walkways – etc
Tactical Promotions that has a start and end periodShort Term Promotions
• Special Promotion Packages for Company employees with Kuwaiti and upper end Expats
• Cross Promotions (Mainly on Monthly basis for Renewal of Subscriptions)
• Special Promotion for all Subscribers – get a relative to subscribe and get a valuable Gift
• Special Promotion for all Subscribers – get a neighbor to subscribe and get a valuable Gift
• Seasonal Promotions for Travel – Back to School – Eid al Adha and Feter – Camping Season –
Hala February -
• Special Promotion for AL Watan Birthday month
16
General Marketing Activities

Direct BTL Contact- Call Center- Subscription Team
Retain Subscribers
• Call and offer the Monthly promotion to renew subscriptions -
• Direct Letters/emails to the resident – to inform them of the promotions
• Instant Gifts
• Discount Offers
• Free Coupons Value KD – from a Variety of Stores –retail etc…. (at least 50% of the subscription
fee)
• Giveaways / Gifts for Kids and Family – (Fantasy World – etc… )
• Back to School Discount / Value Vouchers to the Subscribers
Need More convincing & more personal touchNew Subscribers
•New Subscribers are the responsibility of the whole company
•Offer 3 Month Subscription to a neighbor- for each 5 new Subscriptions Get a 50 KD (Employee incentive)
•Company Employee offers – 100 Subscriptions or more we will give them 10,000 KD free Ads Gross in the
Newspaper (Example)
•Subscription Booth present in all the events sponsored by Al Watan
•Special Promotions for Women Only – linked major retailers like Al-Ostoura – Al Taraf Al Aghar etc…
•Cross Promotions with other business entities (Kuwait Cinema – Free Car Service AL Ghanim etc… )
17
General Marketing Activities(Cont.)

Dar Al Watan_subscription_roadmap_2014

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