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

Competition & Product Segmentation

#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”

#3: Being heard above the noise

=

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