Jo Van Croonenborch

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The Newspapermarket
a strategic view

• Presented by
• Jo Van Croonenborch
• CEO VUM n.v.

29th May 2002
2

• 1. VUM-Media
• 2. Triangular crossfire
• 3. Product life-cycle
• Interlude Ubiquity versus scarcity
• 4. Unique Value another triangular
  crossfire
• 5. Conclusion

3
1. VUM Media
4
VUM media
OTHER MEDIA
COMMERCIAL PRINTING
NEWSPAPERS
De Standaard Het Nieuwsblad Het Volk Vers lAvenir
Radio T.V. Internet Magazines

Heatset Coldset Sheet-fed
5
VUM media
NEWSPAPERS

• DUTCH readership 1,34 mio
• speaking part
  39,2
• FRENCH readership 0,37 mio
• speaking part
  19,2

6
CONSOLIDATED TURNOVER
000 EUR
300.000
250.000
200.000
150.000
100.000
50.000
0
1993
1994
1995
1996
1997
1998
1999
2000
2001
7
2. Triangular Crossfire

• Declining advertising revenues
• Increasing paper-price
• High fixed costs

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3. Product Life-cycle
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THE PRODUCT LIFE CYCLE
Sales volume

Introduction Growth Maturity
Decline
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THE PRODUCT LIFE CYCLE (cont.)
Introduction
Growth Maturity Decline

Product/service Product/service Market needs
Market needs
first introduced gains market
start to be largely met
to market
acceptance fulfilled
Volume Slow growth
Rapid growth Sales slow Sales
decline
in sales in sales volume down
and

level off
Variety of product/ Possible high
Increasingly Emerging
Commodity service designs
customizing standardised dominant
standardisation
of frequent
types
design changes

Dominant operations Flexibility
Speed Cost
Cost performance Qualtiy
Dependability Dependability
objectives
Quality
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3. Product Life-cycle

• Readership

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READERSHIP IN FLANDERS
readers
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3. Product Life-cycle

• Advertising Market

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EVOLUTION ADVERTISING NEWSPAPERS
190
180
170
I N D E X
160
150
140
130
120
110
100
1990
1992
1994
1996
1998
2000
YEAR
15
EVOLUTION ADVERTISING NEWSPAPERS
190
180
170
I N D E X
160
150
140
130
120
110
100
1990
1992
1994
1996
1998
2000
2002
YEAR
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ADVERTISING IN MAJOR MEDIA
BELGIUM
Market share ()
Bron Media Explorer
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ADVERTISING EXPENDITURE IN MAJOR MEDIA
SWEDEN
Market share ()
Dailies

TV
National
Local
Other
media
Evening
Bo-Christopher Lundquist - TidningsUtgivarna
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INTERLUDE
Ubiquity
scarcity
versus
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4. Unique Value
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UNIQUE VALUE another triangular
crossfire
Loss of young readers
Record Every day
Age 1972 1982 1993
2000
20 - 29 46 37
23 19 30 - 39
73 48 35
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Source John Bartolomeo
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UNIQUE VALUE another triangular
crossfire
USA
Loss of young readers
50
40
30
Read Every Day
20
9
10
0
1970
1980
1990
2000
2010
Year
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UNIQUE VALUE another triangular
crossfire
BELGIUM
Loss of young readers
Record Every day
Age 1988-90 1991-93
1995-98 1999-01
15 - 17 55,7 53,3
47,3 45,5 18 - 20
61,3 55,5 53,3
51,8 21 - 24 59,4 55,4 54,0
56,9
Source CIM-Media Study
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UNIQUE VALUE another triangular
crossfire

Loss of young readers

Loss of credibility

Marketing
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UNIQUE VALUE another triangular
crossfire

How to manage the unique value ?

• 1. Make it clear what the newspaper stands for.
• 2. Dont frustate the casual reader.
• 3. Put some pace in the newspaper, make it clear
  what isessential and what is incidental.
• 4. The newspaper must stimulate the reader to
  interact with his or her environment it is not
  simply a one-to-one relationship.

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UNIQUE VALUE another triangular
crossfire

How to manage the unique value ?

• 5. The newspaper must keep a balance between
  giving thereader what he wants and also taking
  him by surprise.
• 6. The newspaper must stimulate the relationship
  betweenthe reader and the paper by giving space
  to the readersopinion.

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5. Conclusion
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The old 4P-Model

• Product- unique value- the reason why we can
  ask money for our product
• Place- dependable delivery through the existing
  channels- the channels through which we get the
  money for our product
• Promotion- brand franchising strategies brand
  and franchising- the emotional factor for
  getting our money
• Price- stop devaluing the newspaper in
  perception and in economical terms- the money
  we get for our product

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If change is impossible, we don't need
managers. In that case we only need bookkeepers,
who are much cheaper by the way.
By Th. Levitt
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Thanks
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