Presented By: Samer Gamal A.Hamid
Grannett Response to Market Opportunities
In the newspaper industry where traditions were perceived static and controlling the way the newspaper source the information to the readers Grannett has seized the advantage of two growing trends in the reading public, the pace of the TV raised generation demanding short to the point attention, and the growing demand for more information. At that time the information available is much more than the readers time to absorb and digest this information, this would raise a demand for a newspaper that would provide more news and stories about more subjects and topics in less time.
On other hand researches showed Grannett that current segments captured …show more content…
by Wall Street targeting business leaders and New York Today targeting thinker and policy makers, which open an opportunity in front of USA Today to target achievement – oriented men in professionals and managerial positions who were heavy newspaper reader and travel frequently, as this segment was not targeted by any other newspaper.
After deep analysis to the market involve target segment and foreseen opportunity, Grannett had filled the gap in the market by a media source considered a unique newspaper written in short sentences with compressed stories to the point, using casual writing style, and on other hand prints color photos, graphs and charts, this was totally new to the newspaper market, USA Today differentiated itself from any other newspaper exists in the USA.
Grannett has seized a gap in the newspaper market, as no media source was considered a national newspaper written in short sentences with compressed stories to the point, using casual writing style, and on other hand prints color photos, graphs and charts.
USA Today was totally different starting from the paper that was laid out for ease accessibility, and extensive use of brief to comprehend reader in compressed time, USA Today had all what the TV generation is looking for sports news, movie reviews, colorful graphics, and short stories without jumping to another page.
USAToday.com follows the older sister
After a decade USA Today was the most widely read newspaper in USA, although most of another newspapers were facing decline in their circulations USA Today continued to grow, how ever the increase in the print and distribution cost started seriously impact the profitability.
USA Today had issued some weekly and quarterly issues which help to sustain the newspaper position, but it had to keep the innovation gap between competition wide by introducing the USAToday.com following the older sister trend and look.
Online version had a live up to the moment news in the same appealing, colorful, and briefed manner.
With 24/7 availability Grannett had to invest in the USAToday.com in order to maintain its image and focus on what “America is talking about”, it purchased shares in company to categories the aggregated news in to topics to make the reader access them quickly and efficiently, capitalizing on the success of USA Today, the online version issued an archiving feature that help in maintain the profitability on healthy levels
USAToday.com even played the social media interconnect role by connecting like-minded individuals, post readers writes associate with the newspaper professional writers. USAToday.com was one of the first to noticed the emerging trend of the electronic devices by having an online application for free through apple’s App store .
Being the sole source of information’s for its reader and visitors was the big target of USAToday.com, it had up to date travel database access for thousands of airports, hundreds of air carriers and hundred thousand of …show more content…
flights.
Marketing Innovation
Innovation was the main marketing strategy of USA Today since inception and Gannett knew how to apply innovation into the marketing mix pillars. Starting with the product USA Today had to shift to more serious contents, stories and coverage to not be perceived as junk newspaper, on other hand maintain its unique services and look by providing hot lines for expert’s advices, and publish the reader’s opinions to political and social subjects. R&D gathered feedback from focus groups and worked on the physical redesign of the newspaper by reducing width to make it more handy and flexible to carry in transportation and fits in to briefcases. USA Today.com was not away from the product innovation, as in early 2000 with the huge expand of internet it evoloved from news source to an on demand information community with commitment to bring news to reader faster than ever before, using blogs, RSS and online expanded advertising spaces directing consumers to the nearest retails.
Form the promotional side, newspaper were using above the line promotions through outdoors and TV advertising, Grannett Chairman conducts new approach to the newspaper industry using below the line promotional techniques like bus tour to 50 states called “BusCapade” and jet tour called “JetCapade” to 30 countries which led to the USA Today International publication .
Sales promotions also was vital marketing tool for USA Today, Grannett encouraged advertisers by buy 6 moths advertising space and get another free 6 months and price discounts for bulk qualities targeting restaurants, hotels and airliners. USA Today was the first newspaper to provide advertises on the front page and contract this advertising space to multiple agents for full
year.
Distribution was not far from other marketing mix, USA Today provided late deadline for pressing allowing timely news for later sports scores, another innovative readership program initiated by USA Today made it available in more than 160 university campuses.
This innovative marketing mix helped USA Today drive its top line towards growth and well position itself in the market as innovative newspaper that always listen to their readers needs and adapt to them, USA Today and its online version are positively perceived by their readers as dynamic adaptive media sources that will continue serve their demands changes in future.
SWOT Analysis Towards Future
Strengths: - The most widely read newspaper in USA - Casual writing style with short focused stories - Well positioned to the TV generation segment - Differentiation strategy through continuous innovation - High share of customers, going beyond news - Early online presence
Weakness: - Declining advertising revenues - Declining circulations
Opportunities: - Online information huge growth - Wireless handheld devices increasing demand - Online advertising trend increase - Social online network era
Threats: - Newsprint cost increase - Online competition - Competition from several fields - Readership declining in younger readers
Looking forward to match strengths with the opportunities in market, USA Today can leverage on their strong early presence on line supported with their innovative online services to capture big share of the strong demand over the online business including advertising and social communities networks. USA Today has online application for many wireless devices like iPhone and partnership with Blackberry allowing users to benefit from the live news updates, recent sports news, and life style searches.
USA Today online version has today blogs addressing youth needs for celebrity’s news, fashions, and entertainments. USA Today has been always perceived as young and informal newspaper that speaks the same language as the Americans public do, this will allow it to reposition itself towards the younger generations that are thirsty to information streams in casual style.
Newspapers Future
Looking back to the newspaper market development in the last 30 years and USA Today’s experience I strongly believe that the newspaper future doesn’t look bright and it will continue to decline, recent industry figures show that many newspapers have vanished in the last few years other had adapted cost reduction and lay offs to manage their lost, on other hand new researches show that printed news is among the top dieing industries worldwide due to the massive online and digital competition. Newspaper has no other choice than expand their online business in case they already have or rush to create online presence before it’s too late.