Magazine industry in australia
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Magazine Industry in Australia.
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Magazine industry in australia
- 1. 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
- 2. Competition & Product Segmentation
- 3. #1: Substitution by Digital Media New entrant Suppliers Industry competitors Industry competitors Buyers Substitutes Evolution of Reading MagazineMagazine Blogs Websites Distribute Content Ad Google Ad iBook, WhisperNet
- 4. 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
- 5. #2: Hitting a moving target AUSTRALIA’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
- 6. Cosmopolitan Bride 1. 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”
- 7. #3: Being heard above the noise =
- 8. 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
- 9. #4: Inefficient Data Information Conventional 2-Level Channel Intermediaries Functions Information • Intensive Distribution News Agent Supermarkets / Convenience Stores Service Stations Subscriptions
- 10. 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
- 11. #5: Disengaged Consumers Convenience Availability Distribution SALES ORIENTATION Make The Product Sell The Product “Think-Do-Feel”
- 12. 4000+ Titles Stay Market Orientated Elizabeth Street Melbourne 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
Editor's Notes
- Introduction [Captivating the audience] The Print Magazine Publishing is declining because of substitution. This has been a very big challenge for us. Marketing Framework Substitution is classified as one of the 4 elements of Porter’s five forces. (More description of Porter’s five forces) Evolution of Reading The following diagram describe the evolution of reading, where initially, content is carved on a stone then it evolved when paper is invented. In the 90s and the new millennium, website and internet revolutionized reading of content. Now just recently two very competitive products, the Amazon Kindle and the Apple’s Ipad is introduced in Australia this year. This will affect the magazine industry. Competitor Map The following is the competitor map of the magazine industry. On the orange ellipse are the services that Magazine industry provides: Publishes Content Advertise Distribute the print magazine On the red ellipse, these are the technological substitute of each of these areas of the print publishing: Blogs and websites available freely with rich content including videos. Google ad and other ad models that give more interactivity. Apple’s Ibook and Amazon’s WhisperNet that enables you to distribute the magazine really quickly and accessible everywhere. Adapt or Die The rapid change of technological advancement have affected the magazine publishing companies greatly. Many print magazine publishing companies cannot adapt quickly enough to escape the inevitable future of diminishing return. The following are some of the examples of International and local magazine that almost faced bankruptcy or have disappeared altogether: Playboy magazine: didn’t evolved to internet era. Almost faced bankruptcy the share price has dropped from $11.23 to $2.81 The bulletin: Australia’s oldest and best-known weekly news magazine has been discontinued in January 2008 because inability to adapt to the internet. BusinessWeek: Have ran profits as high as $100 million a year during the internet boom but have lost more than $45 million last year and may lose up to $75 million in 2009. Sold for $1 in 2009.
- Solution: Adapt to the current technological advances. Technology act as a complement to the media. Fact and numbers are from PriceWaterHouseCoopers Report. About Time Inc., a Time Warner company, is one of the largest content companies in the world. With a portfolio of 22 U.S. magazines and more than 25 U.S. Web sites, including some of the world's most popular, powerful and trusted brands, it is the largest magazine publisher in the U.S., and a leading publisher in the U.K. and Mexico. Time Inc.'s popular brands and successful franchises extend to online, television, cable VOD, satellite radio, mobile devices, events and branded products. Each month, one out of every two American adults reads a Time Inc. magazine, and one out of every seven who are online visits a company Web site. Approach Website initiative: More than 48 million visitors each month: more than any other magazine publisher. 2 Billion page views each month. On the day of TIME’s person of the year announcement: Ben Bernanke, about 1.8 million visitors came to Time.com. Utilizing viral marketing through Facebook and Twitter. Mobile space initiative: Launched the iPad application for Sport illustrated and Time magazine. PEOPLE.com dedicated iPhone app. Reached #4 on Apple’s list of the top paid entertainment apps. Outcome Worldwide, Time Inc. titles are read 249mm times each month by 145.5mm adults. Honours: #1 spot in AdWeek’s Magazine Hot List 2010. Entertainment Weekly, InStyle and People have each been named winners in min's Most Engaged Media Brands competition for 2010. Seven honors in the 2009 Magazine Publishers of America Digital Awards. Australian Honors Winner of 2009 Australian Media Award in the Business and Current Affairs division. Despite the GFC, Audit Bureau of circulations figures showed a solid year on year increase of 6.2% to 76,697 for the same period. Source: http://yaffa.realviewtechnologies.com/#
- Quadrant 1 - Top publishing houses ACP Magazines 51.3% Pacific Magazines 27.6% News Magazines 6.5% Mags with circulation of 100K plus make up 58.4% sales and 6.4% titles. So a lot of competition amongst major titles, but also room for growth. Consumer profile Magazine readers are now busier than before thus there is less time to read a magazine. Positive correlation between magazine readership and leisure time. Women’s interests are shifting away from household problems to health and personal growth issues. With more and more cashed up young couples comes a market with consumers who want to be more informed over their purchases. Image amongst friends is a significant influencer in the decision making process. Quadrant 2 Challenge Quadrant 3 – Case study Quadrant 4 – Information collection methods
- Market Demand Identified when the special bridal edition of Cosmopolitan, published in August annually, kept selling out and readers were asking for more Weddings were a growing industry Behavioural segmentation Cosmo magazine targets females between 18-34 with its monthly edition (demographic). Cosmo bride targets “ women who want to look gorgeous on their wedding day” (benefits sought) Market in Gap? Measurable – This market can be measured by measuring the HH income and profiles of segments Accessible – Market could be accessed through existing distribution channels of Cosmo magazine Substantial – A circulation of 45K is large enough to serve given the whole circulation of 160K for cosmopolitan Differentiable – This segment will respond differently to market mix elements - The reason for the purchase is to obtain information for a enjoyable wedding planning experience, thus segment is not sensitive to immediate price change if product fits selection criteria. - Given the above the customer is also willing to make an effort to find the magazine. Actionable – Currently Cosmo has its own websites where it keeps users informed with up-to-date information and gives a preview on what to expect in the next issue. Their web page has user blogs where readers share their real life wedding experiences. Cosmopolitan can also be followed on Twitter, FB and myspace. Target Market selection To apply this model need to look at company analysis which involves - Existing brand (Cosmo) which is position as number one lifestyle magazine in Australia. Quote from editor of Cosmo “ Australian women aged 18-35 have grown up with cosmo and they want their favourite magazine with them on their big day” - Existing distribution channels through - Existing market research with valuable consumer insights Industry Analysis - Competition – Very competitive. Tomorrow I’m making a trip to magnation to have a look at all bridal magazines, but from what I’ve seen in the net Cosmo bride is quite informative and interactive compared to the other ones. - Industry – According to Magazine publishers of australia magazines are one of the most important tools in the purchasing funnel and the tool where the reader was most receptive to advertisments. - The customer in this case buys to enhance their most important experience in their life.
- The women’s interest category is a mature, saturated market. Crowded with glossies offering sealed sections, tip-ons, air-brushed celebrity glam and beauty specials trading on self doubt, women’s magazines struggle to create a distinctive place in the minds of their readers. Growth of alternate life-styles makes mass marketing substantially less effective (ref AMA – change wording). Audience fragmentation means value fragmentation. Publications geared to value in mass market terms lose share to niche publications, then bleed equity trying to claw it back. *comment about Womens Day and Womens Weekly, also Dolly? (check IBIS for correctness). In a complex marketing environment, the effect of their similarity is palpable. Shouting over each other for audience attention, they’ve descended into an equity cannibalising rabble. Walking along the newsagent isle, the consumer feels like a bit like a chip thrown between seagulls. To remain competitive, grow readership and protect brand equity, magazines need to communicate distinctive value above the noise of competition.
- Enter Frankie. Addressing its audience of 20-35 year old women as equals, Frankie has become fastest growing magazine in Australia, with circulation increasing by 32% in the year to December 09. Its design is simple and crafty, using matt not glossy paper. Emerging artists are interviewed about life experiences shared with readers, who reciprocate by talking about the magazine in relationship terms: “I met Frankie at a friend’s house”. Rather than shout over the noise of competition, Frankie talks under it and stands out from the pack. Consequently its readers share a sense of having happened on a secret, and feel they own the brand. In a market with declining loyalty (PWC), Frankie has built a resonant, aspirational brand by delivering unique value. The key to its success in positioning is authenticity, consistency of tone and zero conflict between signals. . *******************************CUT OUT DUE TO TIME******************************** If they did have a positioning statement it would probably be knitted around a casiotone keyboard. Its readers speak almost in unison: it doesn’t talk down to us, it doesn’t tell us how to live, how to fuck (they do say this but I’ll take it out), or what to buy. But they know what they will and won’t do. No advertorials, no accepting freebies to review. Recognising authenticity as the key to their credibiltiy, it’s editors insist on paying for all products and music they review. Magazines create value for advertisers through value for readers. As one advertiser has written. Frankie’“frankie’s position not only helps with credible placement of our creative, but also helps us to engage with a community of like-minded, lifestyle driven people”. Frankie has built impressive brand equity, earning its editors a spot on the list of "30 Most Influential Australians Under 30 " by FHM in 2006. Its level of engagement has made readers vocal brand guardians and mobilised them as a guerrilla sales force